Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Entity Information [Line Items] | |
Entity Registrant Name | AETNA INC /PA/ |
Entity Central Index Key | 1122304 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 367.5 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenue: | ||||||||
Health care premiums | $11,025.20 | $7,246.80 | $28,512.30 | $21,602.10 | ||||
Other premiums | 525.9 | 482.1 | 1,561.50 | 1,427.20 | ||||
Group annuity contract conversion premium | 54.1 | 0 | 54.1 | 0 | ||||
Fees and other revenue | 1,233.10 | [1] | 954.9 | [1] | 3,326.10 | [1] | 2,881.70 | [1] |
Net investment income | 210 | 216.2 | 670.1 | 681.6 | ||||
Net realized capital (losses) gains | -12.7 | 17.3 | -12.2 | 77.6 | ||||
Total revenue | 13,035.60 | 8,917.30 | 34,111.90 | 26,670.20 | ||||
Benefits and expenses: | ||||||||
Health care costs | 9,161.90 | [2] | 5,847.70 | [2] | 23,548.30 | [2] | 17,613.50 | [2] |
Current and future benefits | 557 | 517.3 | 1,655.40 | 1,512.50 | ||||
Benefit expense on group annuity contract conversion | 54.1 | 0 | 54.1 | 0 | ||||
Operating expenses: | ||||||||
Selling expenses | 353.9 | 272.8 | 983.3 | 820.5 | ||||
General and administrative expenses | 1,950.60 | 1,366.80 | 5,154.80 | 4,131.50 | ||||
Total operating expenses | 2,304.50 | 1,639.60 | 6,138.10 | 4,952 | ||||
Interest expense | 86.1 | 68.5 | 247.4 | 192.2 | ||||
Amortization of other acquired intangible assets | 65.3 | 34.1 | 149.5 | 108.9 | ||||
Reduction of reserve for anticipated future losses on discontinued products | 0 | 0 | -86 | 0 | ||||
Loss on early extinguishment of long-term debt | 0 | 35.4 | 0 | 35.4 | ||||
Total benefits and expenses | 12,228.90 | 8,142.60 | 31,706.80 | 24,414.50 | ||||
Income before income taxes | 806.7 | 774.7 | 2,405.10 | 2,255.70 | ||||
Income taxes: | ||||||||
Current | 283.5 | 239.6 | 826 | 696.1 | ||||
Deferred | 4.2 | 35.5 | 36 | 90.4 | ||||
Total income taxes | 287.7 | 275.1 | 862 | 786.5 | ||||
Net Income including non-controlling interests | 519 | 499.6 | 1,543.10 | 1,469.20 | ||||
Net (Loss) Income Attributable to Non-controlling Interest | 0.4 | 0.4 | -1.6 | 1.4 | ||||
Net income | 518.6 | 499.2 | 1,544.70 | 1,467.80 | ||||
Earnings per common share: | ||||||||
Basic | $1.40 | $1.49 | $4.39 | $4.29 | ||||
Diluted | $1.38 | $1.47 | $4.35 | $4.23 | ||||
Administrative Services Contract Member Co Payments And Plan Sponsor Reimbursements | 21.7 | 18.8 | 62.3 | 58.3 | ||||
Pharmaceutical And Processing Costs | 286.3 | 295.9 | 834 | 875.7 | ||||
Insured Member Co Payments | $25.90 | $29.50 | $85 | $97.50 | ||||
[1] | Fees and other revenue include administrative services contract member co-payments and plan sponsor reimbursements related to our mail order and specialty pharmacy operations of $21.7 million and $62.3 million (net of pharmaceutical and processing costs of $286.3 million and $834.0 million) for the three and nine months ended September 30, 2013, respectively, and $18.8 million and $58.3 million (net of pharmaceutical and processing costs of $295.9 million and $875.7 million) for the three and nine months ended September 30, 2012, respectively. | |||||||
[2] | Health care costs have been reduced by Insured member co-payments related to our mail order and specialty pharmacy operations of $25.9 million and $85.0 million for the three and nine months ended September 30, 2013, respectively, and $29.5 million and $97.5 million for the three and nine months ended September 30, 2012, respectively. |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net Income including non-controlling interests | $519 | $499.60 | $1,543.10 | $1,469.20 | ||||
Other comprehensive (loss) income | 18.9 | 166 | -422.7 | 300.3 | ||||
Comprehensive Income including non-controlling interests | 537.9 | 665.6 | 1,120.40 | 1,769.50 | ||||
Comprehensive (loss) income attributable to non-controlling interests | 0.4 | 0.4 | -1.6 | 1.4 | ||||
Comprehensive Income attributable to Aetna | 537.5 | 665.2 | 1,122 | 1,768.10 | ||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ||||||||
Net unrealized gains (losses) | -6.3 | [1] | 3.5 | [1] | -40.8 | [1] | 6.1 | [1] |
Less: Net unrealized gains (losses) on securities, reclassification of gains to earnings | -2 | [1] | 0.4 | [1] | -20.6 | [1] | 3.7 | [1] |
Other comprehensive (loss) income | -4.3 | [1] | 3.1 | [1] | -20.2 | [1] | 2.4 | [1] |
Other Securities [Member] | ||||||||
Net unrealized gains (losses) | -7.8 | 160.9 | -481.1 | 316.6 | ||||
Less: Net unrealized gains (losses) on securities, reclassification of gains to earnings | -14.1 | 13.3 | -17.2 | 58.1 | ||||
Other comprehensive (loss) income | 6.3 | 147.6 | -463.9 | 258.5 | ||||
Foreign Currency Gain (Loss) [Member] | ||||||||
Net unrealized gains (losses) | 4 | 3 | 22.9 | 2.6 | ||||
Less: Foreign currency and derivatives reclassification of losses to earnings | -0.9 | -0.9 | -2.6 | -2.4 | ||||
Other comprehensive (loss) income | 4.9 | 3.9 | 25.5 | 5 | ||||
Pension and OPEB Plan [Member] | ||||||||
Amortization of net actuarial losses | 12.7 | 12.1 | 37.9 | 36.4 | ||||
Amortization of prior service cost | -0.7 | -0.7 | -2 | -2 | ||||
Other comprehensive (loss) income | $12 | $11.40 | $35.90 | $34.40 | ||||
[1] | Represents unrealized losses on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Paranthetical) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | ($9.70) | [1] | $5.40 | [1] | ($62.80) | [1] | $9.40 | [1] |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | -3.1 | [1] | 0.6 | [1] | -31.7 | [1] | 5.7 | [1] |
Other Securities [Member] | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | -12 | 247.6 | -740.1 | 487.1 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | -21.6 | 19.9 | -26.4 | 88.8 | ||||
Foreign Currency Gain (Loss) [Member] | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 6.1 | 4.6 | 35.2 | 4 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, before Tax | -1.4 | -1.4 | -4 | -3.7 | ||||
Pension and OPEB Plan [Member] | ||||||||
Amortization of net actuarial loss, before tax | -19.6 | -18.6 | -58.3 | -56 | ||||
Amortization of prior service cost, before tax | $1.10 | $1 | $3 | $3 | ||||
[1] | Represents unrealized (losses) gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $2,082.40 | $2,579.20 | ||
Investments | 2,036.40 | 2,221.90 | ||
Premiums receivable, net | 1,233.20 | 804.7 | ||
Other receivables, net | 2,001.70 | 808 | ||
Accrued investment income | 204.3 | 194.3 | ||
Collateral received under securities loan agreements | 550.2 | 47.1 | ||
Income taxes receivable | 19.8 | 139.9 | ||
Deferred income taxes | 546.1 | 426.5 | ||
Other current assets | 1,357.80 | 1,022.80 | ||
Total current assets | 10,031.90 | 8,244.40 | ||
Long-term investments | 20,498.60 | 19,698.20 | ||
Reinsurance recoverables | 766.3 | 876.8 | ||
Goodwill | 10,205.70 | [1] | 6,214.40 | |
Other acquired intangible assets, net | 2,159.20 | 818.7 | ||
Property and equipment, net | 715.6 | 540 | ||
Other long-term assets | 942 | 854.9 | ||
Separate Account Assets | 3,933.60 | 4,247.10 | ||
Total assets | 49,252.90 | 41,494.50 | ||
Current liabilities: | ||||
Health care costs payable | 4,531.10 | 2,992.50 | ||
Future policy benefits | 725.8 | 739.9 | ||
Unpaid claims | 669.2 | 620.7 | ||
Unearned premiums | 479.2 | 403.5 | ||
Policyholders' funds | 1,660.70 | 1,276.90 | ||
Collateral payable under securities loan agreements | 550.2 | 47.1 | ||
Current portion of long-term debt | 392.2 | [2] | 0 | [2] |
Accrued expenses and other current liabilities | 3,237.50 | 2,383.60 | ||
Total current liabilities | 12,245.90 | 8,464.20 | ||
Future policy benefits | 6,701.60 | 6,853.70 | ||
Unpaid claims | 1,593.60 | 1,546.90 | ||
Policyholders' funds | 1,231.20 | 1,364 | ||
Long-term debt, less current portion | 7,874.10 | 6,481.30 | ||
Deferred income taxes | 550.4 | 473.5 | ||
Other long-term liabilities | 1,453 | 1,634.60 | ||
Separate Accounts liabilities | 3,933.60 | 4,247.10 | ||
Total liabilities | 35,583.40 | 31,065.30 | ||
Commitments and contingencies (Note 14) | ||||
Shareholders' equity: | ||||
Common stock ($.01 par value; 2.6 billion shares authorized and 367.5 million shares issued and outstanding in 2013; 2.6 billion shares authorized and 327.6 million shares issued and outstanding in 2012) and additional paid-in capital | 4,356.40 | 1,095.30 | ||
Retained earnings | 10,717.90 | 10,343.90 | ||
Accumulated other comprehensive loss | -1,456.10 | -1,033.40 | ||
Total Aetna shareholders' equity | 13,618.20 | 10,405.80 | ||
Total equity | 13,669.50 | 10,429.20 | ||
Total liabilities and shareholders' equity | 49,252.90 | 41,494.50 | ||
Securities Loaned or Sold under Agreements to Repurchase [Member] | ||||
Current assets: | ||||
Collateral received under securities loan agreements | 550.2 | [3] | 47.1 | [3] |
Noncontrolling Interest [Member] | ||||
Shareholders' equity: | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | $51.30 | $23.40 | ||
[1] | At September 30, 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | |||
[2] | At September 30, 2013, our 6.3% senior notes due August 2014 are classified as current in the accompanying consolidated balance sheet. | |||
[3] | There were no amounts offset in our balance sheets at September 30, 2013 or December 31, 2012. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Paranthetical) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 2,600,000,000 | 2,600,000,000 |
Common Stock, Shares, Issued | 367,500,000 | 327,600,000 |
Common Stock, Shares, Outstanding | 367,500,000 | 327,600,000 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Parent [Member] | Noncontrolling Interest [Member] | Equity Issued in Business Combination [Member] | Equity Issued in Business Combination [Member] | Equity Issued in Business Combination [Member] | Equity Issued in Business Combination [Member] | Equity Issued in Business Combination [Member] | Equity Issued in Business Combination [Member] |
In Millions, except Share data, unless otherwise specified | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Parent [Member] | Noncontrolling Interest [Member] | ||||||||
Balance at beginning of period at Dec. 31, 2011 | $962.80 | $10,346.60 | ($1,189.20) | $10,120.20 | |||||||||
Total equity at beginning of period at Dec. 31, 2011 | 10,144.60 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest at beginning of period at Dec. 31, 2011 | 24.4 | ||||||||||||
Balance at beginning of period (in shares) at Dec. 31, 2011 | 349,700,000 | ||||||||||||
Comprehensive income: | |||||||||||||
Net income | 1,467.80 | 0 | 0 | 1,467.80 | 0 | 1,467.80 | |||||||
Net (Loss) Income Attributable to Non-controlling Interest | 1.4 | 1.4 | |||||||||||
Net Income including non-controlling interests | 1,469.20 | ||||||||||||
Other increases (decreases) in noncontrolling interests | -2.7 | 0 | 0 | 0 | 0 | 0 | -2.7 | ||||||
Other comprehensive (loss) income | 300.3 | 0 | 0 | 0 | 300.3 | 300.3 | 0 | ||||||
Common shares issued for benefit plans, including tax benefits | 110.9 | 110.9 | 0 | 0 | 110.9 | 0 | |||||||
Common shares issued for benefit plans, including tax benefits (in shares) | 6,000,000 | ||||||||||||
Repurchases of common shares | -924.5 | -0.2 | -924.3 | 0 | -924.5 | 0 | |||||||
Repurchases of common shares (in shares) | -21,200,000 | ||||||||||||
Dividends declared | -177.9 | 0 | 0 | -177.9 | 0 | -177.9 | 0 | ||||||
Total equity at end of period at Sep. 30, 2012 | 10,919.90 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest at end of period at Sep. 30, 2012 | 23.1 | ||||||||||||
Balance at end of period at Sep. 30, 2012 | 1,073.50 | 10,712.20 | -888.9 | 10,896.80 | |||||||||
Balance at end of period (in shares) at Sep. 30, 2012 | 334,500,000 | ||||||||||||
Balance at beginning of period at Dec. 31, 2012 | 10,405.80 | 1,095.30 | 10,343.90 | -1,033.40 | 10,405.80 | ||||||||
Total equity at beginning of period at Dec. 31, 2012 | 10,429.20 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest at beginning of period at Dec. 31, 2012 | 23.4 | ||||||||||||
Balance at beginning of period (in shares) at Dec. 31, 2012 | 327,600,000 | 327,600,000 | |||||||||||
Comprehensive income: | |||||||||||||
Net income | 1,544.70 | 0 | 0 | 1,544.70 | 0 | 1,544.70 | |||||||
Net (Loss) Income Attributable to Non-controlling Interest | -1.6 | -1.6 | |||||||||||
Net Income including non-controlling interests | 1,543.10 | ||||||||||||
Other increases (decreases) in noncontrolling interests | 29.5 | 0 | 0 | 0 | 0 | 0 | 29.5 | ||||||
Other comprehensive (loss) income | -422.7 | 0 | 0 | 0 | -422.7 | -422.7 | 0 | ||||||
Total number of shares issued in a business acquisition | 52,200,000 | 52,200,000 | |||||||||||
Common shares issued for benefit plans, including tax benefits | 196.7 | 196.7 | 0 | 0 | 196.7 | 0 | 3,064.60 | 3,064.60 | 0 | 0 | 3,064.60 | 0 | |
Common shares issued for benefit plans, including tax benefits (in shares) | 3,900,000 | ||||||||||||
Repurchases of common shares | -957.7 | -0.2 | -957.5 | 0 | -957.7 | 0 | |||||||
Repurchases of common shares (in shares) | -16,000,000 | -16,200,000 | |||||||||||
Dividends declared | -213.2 | 0 | 0 | -213.2 | 0 | -213.2 | 0 | ||||||
Total equity at end of period at Sep. 30, 2013 | 13,669.50 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest at end of period at Sep. 30, 2013 | 51.3 | ||||||||||||
Balance at end of period at Sep. 30, 2013 | $13,618.20 | $4,356.40 | $10,717.90 | ($1,456.10) | $13,618.20 | ||||||||
Balance at end of period (in shares) at Sep. 30, 2013 | 367,500,000 | 367,500,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net Income including non-controlling interests | $1,543.10 | $1,469.20 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized capital gains | 12.2 | -77.6 |
Depreciation and amortization | 406.5 | 338 |
Amortization of debt fair value adjustment | -24.2 | 0 |
Equity in earnings of affiliates, net | -18.2 | -18.1 |
Stock-based compensation expense | 90.6 | 96.2 |
Reduction of reserve for anticipated future losses on discontinued products | -86 | 0 |
Reversal of allowance and gain on sale of reinsurance recoverable | -49.4 | 0 |
Amortization of net investment premium | 38.1 | 15.6 |
Loss on early extinguishment of long-term debt | 0 | 35.4 |
Changes in assets and liabilities: | ||
Accrued investment income | 9.4 | 7.6 |
Premiums due and other receivables | -308.5 | -253.7 |
Income taxes | 99.4 | 232.7 |
Other assets and other liabilities | -38.1 | -589.9 |
Health care and insurance liabilities | -16.9 | 20.4 |
Other, net | -3.4 | 4.1 |
Net cash provided by operating activities | 1,654.60 | 1,279.90 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of investments | 11,117.30 | 8,236.70 |
Cost of investments | -10,298.50 | -8,444.20 |
Additions to property, equipment and software | -331.6 | -252.5 |
Cash used for acquisition, net of cash acquired | -1,635.90 | -8.6 |
Other, net | 2.5 | 0 |
Net cash used for investing activities | -1,146.20 | -468.6 |
Cash flows from financing activities: | ||
Net repayment of long-term debt | 0 | 123.6 |
Net proceeds from issuance of long-term debt | 0 | 712.9 |
Net repayment of short-term debt | 0 | -355.9 |
Deposits and interest credited for investment contracts | 3.4 | 3.9 |
Withdrawals of investment contracts | -9.7 | -16 |
Common shares under benefit plans, net | 39 | -13.9 |
Stock-based compensation tax benefits | 62.9 | 30 |
Common shares repurchased | -957.7 | -924.5 |
Dividends paid to shareholders | -205.2 | -180.6 |
Collateral on interest rate swaps | 32.6 | 17.6 |
Contributions (distributions) from noncontrolling interests | 29.5 | -2.7 |
Net cash used for financing activities | -1,005.20 | -852.8 |
Net decrease in cash and cash equivalents | -496.8 | -41.5 |
Cash and cash equivalents, beginning of period | 2,579.20 | 679.7 |
Cash and cash equivalents, end of period | 2,082.40 | 638.2 |
Supplemental cash flow information: | ||
Interest paid | 229.6 | 153.1 |
Income taxes paid | $699.50 | $523.80 |
Organization
Organization | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization | ||
1 | Organization | |
We conduct our operations in three business segments: | ||
• | Health Care consists of medical, pharmacy benefit management services, dental, behavioral health and vision plans offered on both an Insured basis (where we assume all or a majority of the risk for medical and dental care costs) and an employer-funded basis (where the plan sponsor under an administrative services contract (“ASC”) assumes all or a majority of this risk) and emerging businesses products and services, such as Accountable Care Solutions (“ACS”), that complement and enhance our medical products. Medical products include point-of-service (“POS”), preferred provider organization (“PPO”), health maintenance organization (“HMO”) and indemnity benefit plans. Medical products also include health savings accounts (“HSAs”) and Aetna HealthFund®, consumer-directed health plans that combine traditional POS or PPO and/or dental coverage, subject to a deductible, with an accumulating benefit account (which may be funded by the plan sponsor and/or the member in the case of HSAs). We also offer Medicare and Medicaid products and services and other medical products, such as medical management and data analytics services, medical stop loss insurance, workers' compensation administrative services and products that provide access to our provider network in select markets. | |
• | Group Insurance primarily includes group life insurance and group disability products. Group life products are offered on an Insured basis and include basic and supplemental group term life, group universal life, supplemental or voluntary programs and accidental death and dismemberment coverage. Group disability products consist primarily of short-term and long-term disability insurance (and products which combine both), which are offered to employers on both an Insured and an ASC basis, and absence management services offered to employers, which include short-term and long-term disability administration and leave management. Group Insurance also includes long-term care products that were offered primarily on an Insured basis, which provide benefits covering the cost of care in private home settings, adult day care, assisted living or nursing facilities. We no longer solicit or accept new long-term care customers. | |
• | Large Case Pensions manages a variety of retirement products (including pension and annuity products) primarily for tax-qualified pension plans. These products provide a variety of funding and benefit payment distribution options and other services. Large Case Pensions also includes certain discontinued products (refer to Note 17 beginning on page 36 for additional information). We do not actively market Large Case Pensions products, but continue to accept deposits from existing customers and manage the run-off of our existing business. | |
On May 7, 2013 we completed the acquisition of Coventry Health Care, Inc. (“Coventry”) in a transaction valued at approximately $8.7 billion, including the fair value of Coventry's outstanding debt (refer to Note 3 beginning on page 7 for additional information). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | ||
2 | Summary of Significant Accounting Policies | |
Interim Financial Statements | ||
These interim financial statements necessarily rely on estimates, including assumptions as to annualized tax rates. In the opinion of management, all adjustments necessary for a fair statement of results for the interim periods have been made. All such adjustments are of a normal, recurring nature. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes presented in our 2012 Annual Report on Form 10-K (our “2012 Annual Report”). Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), but that is not required for interim reporting purposes, has been condensed or omitted. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our 2012 Annual Report, unless the information contained in those disclosures materially changed and is required by GAAP. We evaluated subsequent events that occurred after September 30, 2013 through the date the financials were issued and determined there were no other items to disclose. | ||
Principles of Consolidation | ||
These unaudited consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Aetna and the subsidiaries we control. All significant intercompany balances have been eliminated in consolidation. | ||
Reclassifications | ||
Certain reclassifications were made to 2012 financial information to conform with 2013 presentation. | ||
New Accounting Standards | ||
Testing Intangibles for Impairment | ||
Effective January 1, 2013, we adopted new accounting guidance for testing indefinite-lived intangible assets for impairment. Under this guidance, an entity has the option first to assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. If management determines that an indefinite-lived intangible asset's fair value is likely greater than its carrying value, then no additional analysis is necessary, as the indefinite-lived intangible asset is not impaired. The adoption of this new guidance did not have an impact on our financial position or operating results. | ||
Future Application of Accounting Standards | ||
Fees Paid to the Federal Government by Health Insurers | ||
Effective January 1, 2014, we will adopt new accounting guidance relating to the recognition and income statement reporting of any mandated fees to be paid to the federal government by health insurers. This guidance will apply primarily to new fees enacted in the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, “Health Care Reform”). The mandated fees are expected to be material, and this new accounting guidance will result in the recognition of this expense on a straight-line basis beginning in 2014. | ||
Amendments to the Scope, Measurement and Disclosure Requirements of Investment Companies | ||
Effective January 1, 2014, we will adopt new accounting guidance relating to the approach for determining whether an entity is considered an investment company. This guidance clarifies the characteristics and sets measurement and disclosure requirements for an investment company. The adoption of this new guidance is not expected to have an impact on our financial position or operating results. |
Completed_Acquisitions_Complet
Completed Acquisitions, Completed Dispositions | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business Combinations [Abstract] | |||||||||||
Completed Acquisition | |||||||||||
3 | Completed Acquisition; Completed Disposition | ||||||||||
Completed Acquisition | |||||||||||
On August 19, 2012, we entered into a definitive agreement (as amended, the “Merger Agreement”) to acquire Coventry. On May 7, 2013 (the “Effective Date”), we completed our acquisition of Coventry in a transaction valued at approximately $8.7 billion, including $1.8 billion fair value of Coventry's outstanding debt. Coventry is a diversified managed health care company that offers a full portfolio of risk and fee-based products, including Medicare Advantage and Medicare Part D programs, Medicaid managed care plans, group and individual health insurance, coverage for specialty services such as workers' compensation administrative services, and network rental services. | |||||||||||
Pursuant to the terms of the Merger Agreement, by and among Aetna, Jaguar Merger Subsidiary, Inc., a wholly-owned subsidiary of Aetna (“Merger Sub”), and Coventry, Merger Sub merged with and into Coventry (the “Merger”), with Coventry continuing as the surviving corporation and a wholly-owned subsidiary of Aetna. | |||||||||||
Under the terms of the Merger Agreement, Coventry stockholders received $27.30 in cash and 0.3885 of an Aetna common share for each share of Coventry common stock (including restricted shares but excluding shares held by Coventry as treasury stock) outstanding at the effective time of the Merger. As a result, on the Effective Date, we issued approximately 52.2 million common shares, with a fair value of approximately $3.1 billion and paid approximately $3.8 billion in cash in exchange for all of the outstanding shares of Coventry common stock and outstanding awards. Substantially all of Coventry's outstanding equity awards vested and were paid out in cash and canceled in connection with the Merger. An insignificant amount of outstanding Coventry equity awards that pursuant to their terms did not become vested at the effective time of the Merger (the “Rollover Units”) were converted into cash-settled Aetna restricted stock units in connection with the Merger. We funded the cash portion of the purchase price through a combination of available cash on hand and proceeds from the issuance of long-term debt and commercial paper. | |||||||||||
The components of consideration transferred for the acquisition of Coventry were as follows: | |||||||||||
(Certain amounts may reflect rounding adjustments) | |||||||||||
Conversion | Form of | ||||||||||
(Millions, except per common share data) | Calculation | Fair Value | Consideration | ||||||||
Consideration Transferred: | |||||||||||
Number of shares of Coventry common stock outstanding at May 7, 2013: | 133.7 | ||||||||||
Multiplied by Aetna's share price at May 7, 2013, multiplied by the | Aetna | ||||||||||
exchange ratio ($58.69*0.3885) | $ | 22.8 | $ | 3,047.40 | Common Shares | ||||||
Multiplied by the per common share cash consideration | $ | 27.3 | $ | 3,648.70 | Cash | ||||||
Number of shares underlying in-the-money Coventry stock options vested and unvested | |||||||||||
outstanding as of May 7, 2013, canceled and exchanged for cash | 4.9 | ||||||||||
Multiplied by the excess, if any, of (1) the sum of (x) the per | |||||||||||
common share cash consideration plus (y) the Aetna closing share price (1) | |||||||||||
multiplied by the exchange ratio ($57.93*0.3885) over | |||||||||||
(2) the weighted-average exercise price of such | |||||||||||
in-the-money stock options | $ | 15.94 | $ | 78.1 | Cash | ||||||
Number of Coventry performance share units and restricted stock | |||||||||||
units outstanding at May 7, 2013, canceled and paid in cash | 1.6 | ||||||||||
Multiplied by the equity award cash consideration | $ | 49.8 | $ | 58.5 | Cash (2) | ||||||
Number of Coventry restricted shares outstanding at May 7, 2013: | 1.1 | ||||||||||
Less: employee tax withholdings | (.4 | ) | $ | 18.8 | Cash | ||||||
Net restricted shares outstanding at May 7, 2013 | 0.7 | ||||||||||
Multiplied by Aetna's share price at May 7, 2013, multiplied by | Aetna | ||||||||||
the exchange ratio ($58.69*0.3885) | $ | 22.8 | $ | 17.2 | Common Shares | ||||||
Multiplied by the per common share cash consideration | $ | 27.3 | $ | 20.5 | Cash | ||||||
Other consideration transferred (3) | 6.9 | ||||||||||
Total consideration transferred | $ | 6,896.10 | |||||||||
(1) | Based on the average of the volume weighted averages of the trading prices of Aetna common shares on the New York Stock Exchange for each of the five consecutive trading days ending on the trading day that was two trading days prior to the Effective Date. | ||||||||||
(2) | Pursuant to the terms of certain employment agreements, an aggregate of approximately .5 million performance share units and restricted stock units did not automatically vest upon the change of control of Coventry. In the absence of such automatic vesting upon a change in control, pursuant to GAAP, Aetna estimated the fair value of these awards at the Effective Date and attributed that fair value to pre-Merger and post-Merger services. Accordingly, $6.9 million of the fair value of these awards was attributed to pre-Merger services and is included in the estimated consideration transferred, and approximately $19.0 million will be accounted for in Aetna's post-Merger financial statements as transaction-related costs and reflected as a selling, general and administrative expense in Aetna's statements of income. | ||||||||||
(3) | Certain of Coventry's named executive officers received payments pursuant to employment agreements entered into prior to the Coventry acquisition. The total compensation paid in cash pursuant to such agreements in connection with the Merger was $6.5 million. Other consideration transferred also includes the portion of the fair value of the Rollover Units that was attributed to pre-Merger services. The fair value attributable to post-Merger services will be recorded as selling, general and administrative expense in Aetna's post-Merger financial statements. | ||||||||||
The transaction has been accounted for using the acquisition method of accounting which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values at the Effective Date. The following table summarizes the estimated fair values of major classes of assets acquired and liabilities assumed as part of the Merger, reconciled to the total consideration transferred: | |||||||||||
At May 7, | |||||||||||
(Millions) | 2013 | ||||||||||
Cash and cash equivalents | $ | 2,195.60 | |||||||||
Investments | 2,156.40 | ||||||||||
Premiums and other receivables, net | 1,141.10 | ||||||||||
Intangible assets acquired | 1,490.00 | ||||||||||
Property and equipment | 174.8 | ||||||||||
Other assets | 97.5 | ||||||||||
Total assets acquired | 7,255.40 | ||||||||||
Health care costs payable | 1,440.10 | ||||||||||
Long-term debt | 1,803.80 | ||||||||||
Net deferred tax liabilities (1) | 257 | ||||||||||
Other liabilities | 854.9 | ||||||||||
Total liabilities assumed | 4,355.80 | ||||||||||
Total identifiable net assets | 2,899.60 | ||||||||||
Goodwill acquired | 3,996.50 | ||||||||||
Total consideration transferred | $ | 6,896.10 | |||||||||
(1) | Includes $521.5 million of deferred tax liabilities on identifiable intangible assets acquired and $75.8 million of deferred tax assets on the fair value adjustment to Coventry's outstanding debt. | ||||||||||
The estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as intangible asset lives, can materially impact our operating results. We will finalize the Coventry purchase accounting for the various open items as soon as reasonably possible during the measurement period. The finalization of our purchase accounting assessment could result in changes in the valuation of assets and liabilities acquired which could be material. | |||||||||||
As of the Effective Date, the expected fair value of premiums receivable and other receivables approximated their historical cost. The gross contractual receivable for premiums receivable was $485.5 million, of which $12.5 million is not expected to be collectible. The gross contractual receivable for other receivables was $682.2 million, of which $14.1 million is not expected to be collectible. | |||||||||||
In connection with the acquisition of Coventry, all of Coventry's outstanding debt remained outstanding. Debt is required to be measured at fair value under the acquisition method of accounting. As a result of this fair value adjustment, the carrying value of Coventry's debt increased by approximately $217 million; this increase will be amortized as a reduction to interest expense over the remaining life of the debt. | |||||||||||
The fair value and weighted-average useful lives for all intangible assets acquired are as follows: | |||||||||||
Fair Value (Millions) | Useful Life (Years) | ||||||||||
Customer lists | $ | 810 | 10 | ||||||||
Provider networks | 550 | 17 | |||||||||
Trademarks/tradenames | 100 | 10 | |||||||||
Technology | 30 | 4 | |||||||||
Total | $ | 1,490.00 | |||||||||
Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other intangible assets acquired that do not qualify for separate recognition. Specifically, the goodwill recognized with the acquisition of Coventry includes expected synergies and other benefits that we believe will result from combining the operations of Coventry with the operations of Aetna, as well as any intangible assets that do not qualify for separate recognition. | |||||||||||
We preliminarily recorded goodwill related to this acquisition of approximately $4.0 billion, of which $267 million will be tax deductible. All of the goodwill related to this acquisition has been assigned to our Health Care segment. | |||||||||||
The amounts recognized for certain assets acquired and liabilities assumed are preliminary until the initial accounting for the acquisition is complete. The following items, among others, are considered preliminary until we gather sufficient information for the initial accounting to be complete: | |||||||||||
• | the nature and amounts recognized for current and deferred income tax assets and liabilities; | ||||||||||
• | the nature, amounts recognized and measurement basis of certain liabilities, including liabilities arising from contingencies recognized at acquisition (refer to Note 14 beginning on page 30 for additional information); and | ||||||||||
• | quantitative information related to goodwill recorded at acquisition. | ||||||||||
Actual and Pro Forma Impact of Acquisition | |||||||||||
The results of Coventry have been included in our results from the Effective Date through September 30, 2013. The following table presents revenue and net income of Coventry included in our results for the three and nine months ended September 30, 2013: | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
(Millions) | 30-Sep-13 | 30-Sep-13 | |||||||||
Revenue | $ | 3,531.30 | $ | 5,599.80 | |||||||
Net Income | 112.8 | 169 | |||||||||
The following table presents supplemental pro forma information as if the Merger had occurred on January 1, 2012 for the nine months ended September 30, 2013 and for the three and nine months ended September 30, 2012. The pro forma consolidated results are not necessarily indicative of what our consolidated results would have been had the Merger been completed on January 1, 2012. In addition, the pro forma consolidated results do not purport to project the future results of the combined company nor do they reflect the expected realization of any cost savings associated with the Merger. | |||||||||||
Three Months Ended | Nine Months Ended September 30, | ||||||||||
(Millions, except per common share data) | 30-Sep-12 | 2013 | 2012 | ||||||||
Total revenue | $ | 12,253.30 | $ | 38,906.60 | $ | 37,031.80 | |||||
Net income | 600 | 1,775.30 | 1,810.10 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.55 | $ | 4.73 | $ | 4.59 | |||||
Diluted | 1.54 | 4.68 | 4.53 | ||||||||
We incurred transaction and integration-related costs related to the acquisition of Coventry of $34.6 million ($51.2 million pretax) and $140.6 million ($189.6 million pretax) during the three and nine months ended September 30, 2013, respectively, and $12.5 million ($13.8 million pretax) during the three and nine months ended September 30, 2012. Transaction costs include advisory, legal and other professional fees and transaction-related payments that are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the acquisition of Coventry. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. Integration-related costs are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses. | |||||||||||
The unaudited pro forma consolidated results for the three months ended September 30, 2012 and the nine months ended September 30, 2013 and 2012 reflect the following pro forma adjustments: | |||||||||||
• | Elimination of intercompany transactions between Aetna and Coventry, primarily related to network rental fees. | ||||||||||
• | Foregone interest income associated with cash and cash equivalents and investments assumed to have been used to partially fund the Merger. | ||||||||||
• | Foregone interest income associated with adjusting the amortized cost of Coventry's investment portfolio to fair value as of the completion of the Merger. | ||||||||||
• | Elimination of historical Coventry intangible asset amortization expense and capitalized internal-use software amortization expense and addition of intangible asset amortization expense relating to intangibles valued as part of the acquisition. | ||||||||||
• | Additional interest expense from the long-term debt Aetna issued in November 2012 as well as the interest expense on short-term debt Aetna issued in March and April 2013. Interest expense was also reduced for the amortization of the fair value adjustment to long-term debt. | ||||||||||
• | Elimination of transaction-related costs incurred by Aetna and/or Coventry during 2013 and 2012. | ||||||||||
• | Adjustment of the modifications above for the applicable tax impact. | ||||||||||
• | Conforming adjustments to align Coventry's presentation to Aetna's accounting policies. At this time, we are not aware of any accounting policy differences that would have a material impact on the combined company's financial statements, however, as we complete our review of Coventry's accounting policies, it is possible that other policy differences may be identified that, when conformed, could have a material impact on the combined company financial statements. | ||||||||||
• | Elimination of revenue and directly identifiable costs related to the sale of Aetna's Missouri Medicaid business, Missouri Care, Incorporated (“Missouri Care”), to WellCare Health Plans, Inc. on March 31, 2013. | ||||||||||
Completed Disposition | |||||||||||
In connection with the acquisition of Coventry, on March 31, 2013, we completed the sale of Missouri Care to WellCare Health Plans, Inc. The sale price was not material and did not have a material impact on our financial position or operating results. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Common Share | ||||||||||||||||
4 | Earnings Per Common Share | |||||||||||||||
Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is computed in a similar manner, except that the weighted average number of common shares outstanding is adjusted for the dilutive effects of our outstanding stock-based compensation awards, but only if the effect is dilutive. | ||||||||||||||||
The computations of basic and diluted EPS for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions, except per common share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income attributable to Aetna | $ | 518.6 | $ | 499.2 | $ | 1,544.70 | $ | 1,467.80 | ||||||||
Weighted average shares used to compute basic EPS | 371.1 | 334.8 | 351.8 | 342.2 | ||||||||||||
Dilutive effect of outstanding stock-based compensation awards (1) | 4.1 | 3.8 | 3.7 | 5 | ||||||||||||
Weighted average shares used to compute diluted EPS | 375.2 | 338.6 | 355.5 | 347.2 | ||||||||||||
Basic EPS | $ | 1.4 | $ | 1.49 | $ | 4.39 | $ | 4.29 | ||||||||
Diluted EPS | $ | 1.38 | $ | 1.47 | $ | 4.35 | $ | 4.23 | ||||||||
(1) | Stock-based compensation awards are not included in the calculation of diluted EPS if the exercise price is greater than the average market price of Aetna common shares during the period (i.e., the awards are anti-dilutive). Approximately 2.2 million stock appreciation rights were not included in the calculation of diluted EPS for the nine months ended September 30, 2013 and 11.0 million and 8.6 million stock appreciation rights were not included in the calculation of diluted EPS for the three and nine months ended September 30, 2012, respectively, because they were anti-dilutive. All stock options were included in the calculation of diluted EPS for the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||
In connection with the May 7, 2013 acquisition of Coventry, we issued approximately 52.2 million Aetna common shares in exchange for all the outstanding shares of Coventry common stock. Those Aetna common shares were outstanding and included in the calculation of weighted average shares used to compute basic EPS for the period from the Effective Date through September 30, 2013. In future periods, those Aetna common shares will be outstanding for the full reporting period and will be weighted accordingly. |
Operating_Expenses
Operating Expenses | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Operating Expenses [Abstract] | ||||||||||||||||
Operating Expenses | 5. Operating Expenses | |||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, selling expenses (which include broker commissions, the variable component of our internal sales force compensation and premium taxes) and general and administrative expenses were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Selling expenses | $ | 353.9 | $ | 272.8 | $ | 983.3 | $ | 820.5 | ||||||||
General and administrative expenses: | ||||||||||||||||
Salaries and related benefits | 1,119.40 | 780.4 | 2,914.50 | 2,336.70 | ||||||||||||
Other general and administrative expenses (1) (2) | 831.2 | 586.4 | 2,240.30 | 1,794.80 | ||||||||||||
Total general and administrative expenses | 1,950.60 | 1,366.80 | 5,154.80 | 4,131.50 | ||||||||||||
Total operating expenses | $ | 2,304.50 | $ | 1,639.60 | $ | 6,138.10 | $ | 4,952.00 | ||||||||
(1) | Includes $51.2 million and $171.4 million of transaction and integration-related costs related to the acquisition of Coventry, including advisory, legal and other professional services fees and transaction-related payments as well as integration costs incurred in the three and nine months ended September 30, 2013, respectively and $10.0 million during the three and nine months ended September 30, 2012. | |||||||||||||||
(2) | In 2008, as a result of the liquidation proceedings of Lehman Re Ltd. (“Lehman Re”), a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re. This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $42.2 million pretax. | |||||||||||||||
Refer to the reconciliation of operating earnings to net income attributable to Aetna in Note 15 beginning on page 34 for additional information. |
Goodwill_and_Other_Acquired_In
Goodwill and Other Acquired Intangible Assets (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Goodwill and Other Acquired Intangible Assets [Abstract] | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | |||||||||||||||||
6 | Goodwill and Other Acquired Intangible Assets | ||||||||||||||||
The change in goodwill for the nine months ended September 30, 2013 was as follows: | |||||||||||||||||
(Millions) | 2013 | ||||||||||||||||
Balance, beginning of the period | $ | 6,214.40 | |||||||||||||||
Goodwill acquired: | |||||||||||||||||
Coventry (1) | 3,996.50 | ||||||||||||||||
Other | (5.2 | ) | |||||||||||||||
Balance, end of the period (2) | $ | 10,205.70 | |||||||||||||||
(1) | Goodwill related to the acquisition of Coventry is considered preliminary, pending the final allocation of the applicable purchase price. | ||||||||||||||||
(2) | At September 30, 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | ||||||||||||||||
Other acquired intangible assets at September 30, 2013 and December 31, 2012 were comprised of the following: | |||||||||||||||||
(Millions) | Cost | Accumulated | Net Balance | Amortization | |||||||||||||
Amortization | Period (Years) | ||||||||||||||||
30-Sep-13 | |||||||||||||||||
Provider networks | $ | 1,253.20 | $ | 493.4 | $ | 759.8 | 25-Dec | (1) | |||||||||
Customer lists | 1,347.00 | 326.7 | 1,020.30 | 14-May | (1) | ||||||||||||
Value of business acquired (“VOBA”) | 149.2 | 43.7 | 105.5 | 20 | (2) | ||||||||||||
Technology | 146.6 | 43.4 | 103.2 | 10-Apr | |||||||||||||
Other | 6.7 | 1.8 | 4.9 | 15-Feb | |||||||||||||
Definite-lived trademarks | 165 | 21.8 | 143.2 | 20-Sep | |||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 3,090.00 | $ | 930.8 | $ | 2,159.20 | |||||||||||
31-Dec-12 | |||||||||||||||||
Provider networks | $ | 703.2 | $ | 458.2 | $ | 245 | 25-Dec | (1) | |||||||||
Customer lists | 657.4 | 370.2 | 287.2 | 14-May | (1) | ||||||||||||
Value of business acquired | 149.2 | 29.2 | 120 | 20 | (2) | ||||||||||||
Technology | 116.6 | 28 | 88.6 | 10-May | |||||||||||||
Other | 6.7 | 1.5 | 5.2 | 15-Feb | |||||||||||||
Definite-lived trademarks | 65 | 14.6 | 50.4 | 20-Sep | |||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 1,720.40 | $ | 901.7 | $ | 818.7 | |||||||||||
(1) | The amortization period for our provider networks and customer lists includes an assumption of renewal or extension of these arrangements. At September 30, 2013 and December 31, 2012, the periods prior to the next renewal or extension for our provider networks primarily ranged from 1 to 3 years and the period prior to the next renewal or extension for our customer lists was less than one year and two years, respectively. Any costs related to the renewal or extension of these contracts are expensed as incurred. | ||||||||||||||||
(2) | VOBA is being amortized over the expected life of the acquired contracts in proportion to estimated premium. | ||||||||||||||||
Refer to Note 3 on page 7 for additional information about other acquired intangible assets in connection with the acquisition of Coventry on the Effective Date. | |||||||||||||||||
We estimate annual pretax amortization for other acquired intangible assets for 2013 and in each of the next five years to be as follows: | |||||||||||||||||
(Millions) | |||||||||||||||||
2013 | $ | 214.6 | |||||||||||||||
2014 | 238.4 | ||||||||||||||||
2015 | 222.5 | ||||||||||||||||
2016 | 215.5 | ||||||||||||||||
2017 | 201.1 | ||||||||||||||||
2018 | 192.9 | ||||||||||||||||
Investments
Investments | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Investments | 7. Investments | |||||||||||||||||||||||
Total investments at September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Millions) | Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||
Debt and equity securities available for sale | $ | 1,897.80 | $ | 17,361.10 | $ | 19,258.90 | $ | 2,006.80 | $ | 16,821.00 | $ | 18,827.80 | ||||||||||||
Mortgage loans | 136.3 | 1,419.90 | 1,556.20 | 214.4 | 1,429.20 | 1,643.60 | ||||||||||||||||||
Other investments | 2.3 | 1,717.60 | 1,719.90 | 0.7 | 1,448.00 | 1,448.70 | ||||||||||||||||||
Total investments | $ | 2,036.40 | $ | 20,498.60 | $ | 22,535.00 | $ | 2,221.90 | $ | 19,698.20 | $ | 21,920.10 | ||||||||||||
On the Effective Date, we completed the acquisition of Coventry. As a result, on that date we acquired approximately $2.2 billion of current and long-term investments, primarily consisting of state and municipal bonds and U.S. corporate securities. | ||||||||||||||||||||||||
Debt and Equity Securities | ||||||||||||||||||||||||
Debt and equity securities available for sale at September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||
(Millions) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,424.00 | $ | 83.8 | $ | (1.0 | ) | $ | 1,506.80 | |||||||||||||||
States, municipalities and political subdivisions | 3,852.60 | 138.1 | (76.5 | ) | 3,914.20 | |||||||||||||||||||
U.S. corporate securities | 7,272.20 | 505.6 | (122.9 | ) | 7,654.90 | |||||||||||||||||||
Foreign securities | 3,114.30 | 207.4 | (54.2 | ) | 3,267.50 | |||||||||||||||||||
Residential mortgage-backed securities | 951.5 | 22.6 | (11.7 | ) | 962.4 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,321.20 | 95.6 | (4.7 | ) | (1) | 1,412.10 | ||||||||||||||||||
Other asset-backed securities | 379.8 | 17.9 | (2.2 | ) | (1) | 395.5 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 8.7 | (.4 | ) | 65.1 | |||||||||||||||||||
Total debt securities | 18,372.40 | 1,079.70 | (273.6 | ) | 19,178.50 | |||||||||||||||||||
Equity securities | 46.3 | 38.3 | (4.2 | ) | 80.4 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 18,418.70 | $ | 1,118.00 | $ | (277.8 | ) | $ | 19,258.90 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,413.40 | $ | 147.9 | $ | (1.8 | ) | $ | 1,559.50 | |||||||||||||||
States, municipalities and political subdivisions | 2,770.90 | 267.9 | (4.3 | ) | 3,034.50 | |||||||||||||||||||
U.S. corporate securities | 6,926.20 | 871.7 | (7.3 | ) | 7,790.60 | |||||||||||||||||||
Foreign securities | 2,988.10 | 391.3 | (8.8 | ) | 3,370.60 | |||||||||||||||||||
Residential mortgage-backed securities | 929.5 | 49.9 | (.4 | ) | 979 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,268.70 | 149.7 | (1.8 | ) | (1) | 1,416.60 | ||||||||||||||||||
Other asset-backed securities | 517.4 | 28.3 | (3.6 | ) | (1) | 542.1 | ||||||||||||||||||
Redeemable preferred securities | 89.6 | 12.3 | (7.3 | ) | 94.6 | |||||||||||||||||||
Total debt securities | 16,903.80 | 1,919.00 | (35.3 | ) | 18,787.50 | |||||||||||||||||||
Equity securities | 38.3 | 5.1 | (3.1 | ) | 40.3 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 16,942.10 | $ | 1,924.10 | $ | (38.4 | ) | $ | 18,827.80 | |||||||||||||||
(1) | At September 30, 2013 and December 31, 2012, we held securities for which we previously recognized $22.9 million and $25.2 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at September 30, 2013 and December 31, 2012 of $8.5 million and $9.6 million, respectively. | |||||||||||||||||||||||
(2) | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At September 30, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $320.2 million and gross unrealized capital losses of $63.3 million and, at December 31, 2012, debt and equity securities with a fair value of approximately $4.0 billion, gross unrealized capital gains of $559.4 million and gross unrealized capital losses of $19.4 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. | |||||||||||||||||||||||
The fair value of debt securities at September 30, 2013 is shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid. | ||||||||||||||||||||||||
(Millions) | Fair | |||||||||||||||||||||||
Value | ||||||||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | 731.9 | ||||||||||||||||||||||
One year through five years | 5,054.20 | |||||||||||||||||||||||
After five years through ten years | 5,643.60 | |||||||||||||||||||||||
Greater than ten years | 4,978.80 | |||||||||||||||||||||||
Residential mortgage-backed securities | 962.4 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,412.10 | |||||||||||||||||||||||
Other asset-backed securities | 395.5 | |||||||||||||||||||||||
Total | $ | 19,178.50 | ||||||||||||||||||||||
Mortgage-Backed and Other Asset-Backed Securities | ||||||||||||||||||||||||
All of our residential mortgage-backed securities at September 30, 2013 were issued by the Government National Mortgage Association, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and carry agency guarantees and explicit or implicit guarantees by the U.S. Government. At September 30, 2013, our residential mortgage-backed securities had an average credit quality rating of AAA and a weighted average duration of 4.5 years. | ||||||||||||||||||||||||
Our commercial mortgage-backed securities have underlying loans that are dispersed throughout the United States. Significant market observable inputs used to value these securities include probability of default and loss severity. At September 30, 2013, these securities had an average credit quality rating of AA+ and a weighted average duration of 2.7 years. | ||||||||||||||||||||||||
Our other asset-backed securities have a variety of underlying collateral (e.g., automobile loans, credit card receivables and home equity loans). Significant market observable inputs used to value these securities include the unemployment rate, loss severity and probability of default. At September 30, 2013, these securities had an average credit quality rating of AA and a weighted average duration of 2.8 years. | ||||||||||||||||||||||||
Unrealized Capital Losses and Net Realized Capital Gains (Losses) | ||||||||||||||||||||||||
When a debt or equity security is in an unrealized capital loss position, we monitor the duration and severity of the loss to determine if sufficient market recovery can occur within a reasonable period of time. We recognize an other-than-temporary impairment (“OTTI”) when we intend to sell a debt security that is in an unrealized capital loss position or if we determine a credit-related loss on a debt or equity security has occurred. | ||||||||||||||||||||||||
Summarized below are the debt and equity securities we held at September 30, 2013 and December 31, 2012 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position: | ||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total (1) | ||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 82.1 | $ | 0.6 | $ | 13.7 | $ | 0.4 | $ | 95.8 | $ | 1 | ||||||||||||
States, municipalities and political subdivisions | 1,598.90 | 74.1 | 31 | 2.4 | 1,629.90 | 76.5 | ||||||||||||||||||
U.S. corporate securities | 2,183.70 | 120.2 | 15.8 | 2.7 | 2,199.50 | 122.9 | ||||||||||||||||||
Foreign securities | 923.9 | 53 | 22.6 | 1.2 | 946.5 | 54.2 | ||||||||||||||||||
Residential mortgage-backed securities | 333.6 | 9.5 | 27.9 | 2.2 | 361.5 | 11.7 | ||||||||||||||||||
Commercial mortgage-backed securities | 153.6 | 4.4 | 19.3 | 0.3 | 172.9 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 92.5 | 2.2 | 5.5 | — | 98 | 2.2 | ||||||||||||||||||
Redeemable preferred securities | 10.1 | 0.4 | — | — | 10.1 | 0.4 | ||||||||||||||||||
Total debt securities | 5,378.40 | 264.4 | 135.8 | 9.2 | 5,514.20 | 273.6 | ||||||||||||||||||
Equity securities | 10.8 | 1.3 | 5.2 | 2.9 | 16 | 4.2 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 5,389.20 | $ | 265.7 | $ | 141 | $ | 12.1 | $ | 5,530.20 | $ | 277.8 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 138.3 | $ | 1.4 | $ | 15.1 | $ | 0.4 | $ | 153.4 | $ | 1.8 | ||||||||||||
States, municipalities and political subdivisions | 264.6 | 3 | 28.5 | 1.3 | 293.1 | 4.3 | ||||||||||||||||||
U.S. corporate securities | 598.4 | 6.1 | 10.8 | 1.2 | 609.2 | 7.3 | ||||||||||||||||||
Foreign securities | 270.4 | 1.4 | 35.6 | 7.4 | 306 | 8.8 | ||||||||||||||||||
Residential mortgage-backed securities | 51.7 | 0.3 | 2.1 | 0.1 | 53.8 | 0.4 | ||||||||||||||||||
Commercial mortgage-backed securities | 6.3 | 0.1 | 46.1 | 1.7 | 52.4 | 1.8 | ||||||||||||||||||
Other asset-backed securities | 44.8 | 0.1 | 1.5 | 3.5 | 46.3 | 3.6 | ||||||||||||||||||
Redeemable preferred securities | 12.2 | 0.2 | 10 | 7.1 | 22.2 | 7.3 | ||||||||||||||||||
Total debt securities | 1,386.70 | 12.6 | 149.7 | 22.7 | 1,536.40 | 35.3 | ||||||||||||||||||
Equity securities | 16.4 | 2.1 | 13 | 1 | 29.4 | 3.1 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 1,403.10 | $ | 14.7 | $ | 162.7 | $ | 23.7 | $ | 1,565.80 | $ | 38.4 | ||||||||||||
(1) | At September 30, 2013 and December 31, 2012, debt and equity securities in an unrealized capital loss position of $63.3 million and $19.4 million, respectively, and with related fair value of $922.4 million and $225.2 million, respectively, related to experience-rated and discontinued products. | |||||||||||||||||||||||
We reviewed the securities in the tables above and concluded that these are performing assets generating investment income to support the needs of our business. In performing this review, we considered factors such as the quality of the investment security based on research performed by our internal credit analysts and external rating agencies and the prospects of realizing the carrying value of the security based on the investment’s current prospects for recovery. At September 30, 2013, we did not have the intention to sell the debt securities that were in an unrealized capital loss position. | ||||||||||||||||||||||||
The maturity dates for debt securities in an unrealized capital loss position at September 30, 2013 were as follows: | ||||||||||||||||||||||||
Supporting experience-rated | Supporting remaining | Total | ||||||||||||||||||||||
and discontinued products | products | |||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | $ | 23.9 | $ | 0.2 | $ | 23.9 | $ | 0.2 | ||||||||||||
One year through five years | 72.4 | 1.5 | 898.4 | 13.8 | 970.8 | 15.3 | ||||||||||||||||||
After five years through ten years | 383 | 18.8 | 1,843.20 | 85.5 | 2,226.20 | 104.3 | ||||||||||||||||||
Greater than ten years | 421.6 | 38.2 | 1,239.30 | 97 | 1,660.90 | 135.2 | ||||||||||||||||||
Residential mortgage-backed securities | 6.6 | 0.1 | 354.9 | 11.6 | 361.5 | 11.7 | ||||||||||||||||||
Commercial mortgage-backed securities | 8.7 | 0.4 | 164.2 | 4.3 | 172.9 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 14.1 | 0.3 | 83.9 | 1.9 | 98 | 2.2 | ||||||||||||||||||
Total | $ | 906.4 | $ | 59.3 | $ | 4,607.80 | $ | 214.3 | $ | 5,514.20 | $ | 273.6 | ||||||||||||
Net realized capital (losses) gains for the three and nine months ended September 30, 2013 and 2012, excluding amounts related to experience-rated contract holders and discontinued products, were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
OTTI losses on debt securities | $ | (2.4 | ) | $ | (1.8 | ) | $ | (29.6 | ) | $ | (10.4 | ) | ||||||||||||
Portion of OTTI losses on debt securities recognized | — | — | — | 0.1 | ||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||
Net OTTI losses on debt securities recognized in earnings | (2.4 | ) | (1.8 | ) | (29.6 | ) | (10.3 | ) | ||||||||||||||||
Net realized capital (losses) gains, excluding OTTI losses on debt securities | (10.3 | ) | 19.1 | 17.4 | 87.9 | |||||||||||||||||||
Net realized capital (losses) gains | $ | (12.7 | ) | $ | 17.3 | $ | (12.2 | ) | $ | 77.6 | ||||||||||||||
Net realized capital losses for the three months ended September 30, 2013 were primarily attributable to losses from the sales of debt securities and yield-related OTTI on debt securities. Net realized capital losses for the nine months ended September 30, 2013 were primarily attributable to yield-related OTTI on debt securities, primarily on U.S. Treasury securities, which was partially offset by gains from the sale of other debt securities. Net realized capital gains for the three and nine months ended September 30, 2012 were primarily attributable to the sale of debt securities, partially offset by losses from derivative transactions. | ||||||||||||||||||||||||
Excluding amounts related to experience-rated and discontinued products, proceeds from the sale of debt securities and the related gross realized capital gains and losses for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Proceeds on sales | $ | 1,434.00 | $ | 1,323.30 | $ | 5,216.50 | $ | 4,138.60 | ||||||||||||||||
Gross realized capital gains | 25 | 30.8 | 83.9 | 135.7 | ||||||||||||||||||||
Gross realized capital losses | 34.9 | 1.9 | 78.3 | 13.2 | ||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||
Our mortgage loans are collateralized by commercial real estate. During the three and nine months ended September 30, 2013 and 2012 we had the following activity in our mortgage loan portfolio: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
New mortgage loans | $ | 62.8 | $ | 71.8 | $ | 126.4 | $ | 132.3 | ||||||||||||||||
Mortgage loans fully repaid | 49.1 | 4.5 | 168.7 | 41.8 | ||||||||||||||||||||
Mortgage loans foreclosed | — | — | — | 16.7 | ||||||||||||||||||||
At September 30, 2013 and December 31, 2012, we had no material problem, restructured or potential problem mortgage loans. We also had no material impairment reserves on these loans at September 30, 2013 or December 31, 2012. | ||||||||||||||||||||||||
We assess our mortgage loans on a regular basis for credit impairments, and annually assign a credit quality indicator to each loan. Our credit quality indicator is internally developed and categorizes our portfolio on a scale from 1 to 7. Category 1 represents loans of superior quality, and Categories 6 and 7 represent loans where collections are at risk. The vast majority of our mortgage loans fall into the Level 2 to 4 ratings. These ratings represent loans where credit risk is minimal to acceptable; however, these loans may display some susceptibility to economic changes. Category 5 represents loans where credit risk is not substantial but these loans warrant management’s close attention. These indicators are based upon several factors, including current loan to value ratios, property condition, market trends, credit worthiness of the borrower and deal structure. Based upon our most recent assessments at September 30, 2013 and December 31, 2012, our mortgage loans were given the following credit quality indicators: | ||||||||||||||||||||||||
(In Millions, except credit ratings indicator) | September 30, | December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
1 | $ | 118.2 | $ | 94 | ||||||||||||||||||||
2 to 4 | 1,346.50 | 1,451.10 | ||||||||||||||||||||||
5 | 32.5 | 60.2 | ||||||||||||||||||||||
6 and 7 | 59 | 38.3 | ||||||||||||||||||||||
Total | $ | 1,556.20 | $ | 1,643.60 | ||||||||||||||||||||
Variable Interest Entities | ||||||||||||||||||||||||
In determining whether to consolidate a variable interest entity (“VIE”), we consider several factors including whether we have the power to direct activities, the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIE. We have relationships with certain real estate partnerships and one hedge fund partnership that are considered VIEs, but are not consolidated. We record the amount of our investment in these partnerships as long-term investments on our balance sheets and recognize our share of partnership income or losses in earnings. Our maximum exposure to loss as a result of our investment in these partnerships is our investment balance at September 30, 2013 and December 31, 2012 of approximately $212 million and $215 million, respectively, and the risk of recapture of tax credits related to the real estate partnerships previously recognized, which we do not consider significant. We do not have a future obligation to fund losses or debts on behalf of these investments; however, we may voluntarily contribute funds. The real estate partnerships construct, own and manage low-income housing developments and had total assets of approximately $5.9 billion and $5.4 billion at September 30, 2013 and December 31, 2012, respectively. The hedge fund partnership had total assets of approximately $7.2 billion and $7.0 billion at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
Non-controlling (Minority) Interests | ||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, continuing business non-controlling interests were approximately $51 million and $23 million, respectively, primarily related to third party interests in our investment holdings as well as third party interests in certain of our operating entities. The non-controlling entities’ share was included in total equity. Net income attributable to non-controlling interests was $.4 million for the three months ended September 30, 2013 and net loss attributable to non-controlling interests was $1.6 million for the nine months ended September 30, 2013, and net income attributable to non-controlling interests was $.4 million and $1.4 million for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
Sources of net investment income for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Debt securities | $ | 193.9 | $ | 186 | $ | 573.9 | $ | 574.7 | ||||||||||||||||
Mortgage loans | 27.2 | 25.3 | 76.1 | 90.8 | ||||||||||||||||||||
Other investments | (2.2 | ) | 13.1 | 46.8 | 39.2 | |||||||||||||||||||
Gross investment income | 218.9 | 224.4 | 696.8 | 704.7 | ||||||||||||||||||||
Less: investment expenses | (8.9 | ) | (8.2 | ) | (26.7 | ) | (23.1 | ) | ||||||||||||||||
Net investment income (1) | $ | 210 | $ | 216.2 | $ | 670.1 | $ | 681.6 | ||||||||||||||||
(1) | Net investment income includes $61.5 million and $210.3 million for the three and nine months ended September 30, 2013, respectively, and $79.8 million and $238.6 million for the three and nine months ended September 30, 2012, respectively, related to investments supporting our experience-rated and discontinued products. |
Other_Comprehensive_Loss_Incom
Other Comprehensive (Loss) Income | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income | 8. Other Comprehensive (Loss) Income | ||||||||||||||||||||||||||||
Shareholders’ equity included the following activity in accumulated other comprehensive loss for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||
Net Unrealized Gains (Losses) | Pension and OPEB Plans | Total | |||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Securities | Foreign | Comprehensive | |||||||||||||||||||||||||||
Currency | (Loss) Income | ||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
(Millions) | Previously | All Other | Derivatives | Unrecognized | Unrecognized | ||||||||||||||||||||||||
Impaired (1) | Net Actuarial | Prior Service | |||||||||||||||||||||||||||
Losses | Cost | ||||||||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 57.3 | $ | 825.2 | $ | (29.5 | ) | $ | (1,909.4 | ) | $ | 23 | $ | (1,033.4 | ) | ||||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||||||||||
before reclassifications | (40.8 | ) | (481.1 | ) | 22.9 | — | — | (499.0 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||||||||||
other comprehensive income | 20.6 | (2 | ) | 17.2 | (2 | ) | 2.6 | (3 | ) | 37.9 | (4 | ) | (2.0 | ) | (4 | ) | 76.3 | ||||||||||||
Other comprehensive (loss) income | (20.2 | ) | (463.9 | ) | 25.5 | 37.9 | (2.0 | ) | (422.7 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 37.1 | $ | 361.3 | $ | (4.0 | ) | $ | (1,871.5 | ) | $ | 21 | $ | (1,456.1 | ) | ||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 58.2 | $ | 595.2 | $ | (33.7 | ) | $ | (1,834.6 | ) | $ | 25.7 | $ | (1,189.2 | ) | ||||||||||||||
Other comprehensive (loss) income | 2.4 | 258.5 | 5 | 36.4 | (2.0 | ) | 300.3 | ||||||||||||||||||||||
Balance at September 30, 2012 | $ | 60.6 | $ | 853.7 | $ | (28.7 | ) | $ | (1,798.2 | ) | $ | 23.7 | $ | (888.9 | ) | ||||||||||||||
(1) | Represents unrealized losses on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. | ||||||||||||||||||||||||||||
(2) | Reclassifications out of accumulated other comprehensive income for previously impaired debt securities and all other securities are reflected in net realized capital gains (losses) within the Consolidated Statement of Income. | ||||||||||||||||||||||||||||
(3) | Reclassifications out of accumulated other comprehensive income for foreign currency gains (losses) and derivatives are reflected in net realized capital gains (losses) within the Consolidated Statement of Income, except for derivatives related to interest rate swaps which are reflected in interest expense and were not material during the nine months ended September 30, 2013. | ||||||||||||||||||||||||||||
(4) | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statement of Income (Refer to Note 10 of Condensed Notes to Consolidated Financial Statements beginning on page 27 for additional information). | ||||||||||||||||||||||||||||
Refer to the Consolidated Statements of Comprehensive Income on page 2 for additional information regarding reclassifications out of accumulated other comprehensive income on a pretax basis. |
Financial_Instruments
Financial Instruments | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Financial Instruments | 9. Financial Instruments | |||||||||||||||||||||||||||||||
The preparation of our consolidated financial statements in accordance with GAAP requires certain of our assets and liabilities to be reflected at their fair value, and others on another basis, such as an adjusted historical cost basis. In this note, we provide details on the fair value of financial assets and liabilities and how we determine those fair values. We present this information for those financial instruments that are measured at fair value for which the change in fair value impacts net income or other comprehensive income separately from other financial assets and liabilities. | ||||||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value in our Balance Sheets | ||||||||||||||||||||||||||||||||
Certain of our financial instruments are measured at fair value in our balance sheets. The fair values of these instruments are based on valuations that include inputs that can be classified within one of three levels of a hierarchy established by GAAP. The following are the levels of the hierarchy and a brief description of the type of valuation information (“inputs”) that qualifies a financial asset or liability for each level: | ||||||||||||||||||||||||||||||||
◦ | Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||||
◦ | Level 2 – Inputs other than Level 1 that are based on observable market data. These include: quoted prices for similar assets in active markets, quoted prices for identical assets in inactive markets, inputs that are observable that are not prices (such as interest rates and credit risks) and inputs that are derived from or corroborated by observable markets. | |||||||||||||||||||||||||||||||
◦ | Level 3 – Developed from unobservable data, reflecting our own assumptions. | |||||||||||||||||||||||||||||||
Financial assets and liabilities are classified based upon the lowest level of input that is significant to the valuation. When quoted prices in active markets for identical assets and liabilities are available, we use these quoted market prices to determine the fair value of financial assets and liabilities and classify these assets and liabilities as Level 1. In other cases where a quoted market price for identical assets and liabilities in an active market is either not available or not observable, we estimate fair value using valuation methodologies based on available and observable market information or by using a matrix pricing model. These financial assets and liabilities would then be classified as Level 2. If quoted market prices are not available, we determine fair value using broker quotes or an internal analysis of each investment’s financial performance and cash flow projections. Thus, financial assets and liabilities may be classified in Level 3 even though there may be some significant inputs that may be observable. | ||||||||||||||||||||||||||||||||
The following is a description of the valuation methodologies used for our financial assets and liabilities that are measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. | ||||||||||||||||||||||||||||||||
Debt Securities – Where quoted prices are available in an active market, our debt securities are classified in Level 1 of the fair value hierarchy. Our Level 1 debt securities are comprised primarily of U.S. Treasury securities. If Level 1 valuations are not available, the fair value is determined using models such as matrix pricing, which use quoted market prices of debt securities with similar characteristics, or discounted cash flows to estimate fair value. We obtained one price for each of our Level 2 debt securities and did not adjust any of these prices at September 30, 2013 or December 31, 2012. | ||||||||||||||||||||||||||||||||
We also value certain debt securities using Level 3 inputs. For Level 3 debt securities, fair values are determined by outside brokers or, in the case of certain private placement securities, are priced internally. Outside brokers determine the value of these debt securities through a combination of their knowledge of the current pricing environment and market flows. We obtained one non-binding broker quote for each of these Level 3 debt securities and did not adjust any of these quotes at September 30, 2013 or December 31, 2012. The total fair value of our broker quoted securities was approximately $99 million at September 30, 2013 and $117 million at December 31, 2012. Examples of these broker quoted Level 3 debt securities include certain U.S. and foreign corporate securities and certain of our commercial mortgage-backed securities as well as other asset-backed securities. For some of our private placement securities, our internal staff determines the value of these debt securities by analyzing spreads of corporate and sector indices as well as interest spreads of comparable public bonds. Examples of these private placement Level 3 debt securities include certain U.S. and foreign securities and certain tax-exempt municipal securities. | ||||||||||||||||||||||||||||||||
Equity Securities – We currently have two classifications of equity securities: those that are publicly-traded and those that are privately-held. Our publicly-traded securities are classified as Level 1 because quoted prices are available for these securities in an active market. For privately-held equity securities, there is no active market; therefore, we classify these securities as Level 3 because we price these securities through an internal analysis of each investment’s financial statements and cash flow projections. Significant unobservable inputs consist of earnings and revenue multiples, discount for lack of marketability and comparability adjustments. An increase or decrease in any of these unobservable inputs would result in a change in the fair value measurement, which may be significant. | ||||||||||||||||||||||||||||||||
Derivatives – Where quoted prices are available in an active market, our derivatives are classified in Level 1 of the fair value hierarchy. Certain of our derivative instruments are valued using models that primarily use market observable inputs and therefore are classified as Level 2 because they are traded in markets where quoted market prices are not readily available. | ||||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis in our balance sheets at September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,272.90 | $ | 233.9 | $ | — | $ | 1,506.80 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 3,912.90 | 1.3 | 3,914.20 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,618.40 | 36.5 | 7,654.90 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,226.00 | 41.5 | 3,267.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 962.4 | — | 962.4 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,404.70 | 7.4 | 1,412.10 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 362.7 | 32.8 | 395.5 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 61 | 4.1 | 65.1 | ||||||||||||||||||||||||||||
Total debt securities | 1,272.90 | 17,782.00 | 123.6 | 19,178.50 | ||||||||||||||||||||||||||||
Equity securities | 17.8 | 0.3 | 62.3 | 80.4 | ||||||||||||||||||||||||||||
Derivatives | — | 41.8 | — | 41.8 | ||||||||||||||||||||||||||||
Total | $ | 1,290.70 | $ | 17,824.10 | $ | 185.9 | $ | 19,300.70 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 2.2 | $ | — | $ | 2.2 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,311.40 | $ | 248.1 | $ | — | $ | 1,559.50 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 3,031.80 | 2.7 | 3,034.50 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,736.00 | 54.6 | 7,790.60 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,317.90 | 52.7 | 3,370.60 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 979 | — | 979 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,396.50 | 20.1 | 1,416.60 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 512.6 | 29.5 | 542.1 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 80.5 | 14.1 | 94.6 | ||||||||||||||||||||||||||||
Total debt securities | 1,311.40 | 17,302.40 | 173.7 | 18,787.50 | ||||||||||||||||||||||||||||
Equity securities | 18.2 | — | 22.1 | 40.3 | ||||||||||||||||||||||||||||
Derivatives | — | 8.9 | — | 8.9 | ||||||||||||||||||||||||||||
Total | $ | 1,329.60 | $ | 17,311.30 | $ | 195.8 | $ | 18,836.70 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||||||||||||||||||
There were no transfers between Levels 1 and 2 during the three or nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||
The gross transfers into (out of) Level 3 during the three and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Gross transfers into Level 3 | $ | 3.8 | $ | — | $ | 3.8 | $ | 1.8 | ||||||||||||||||||||||||
Gross transfers out of Level 3 | (21.7 | ) | (7.4 | ) | (48.9 | ) | (30.1 | ) | ||||||||||||||||||||||||
Net transfers (out of) Level 3 | $ | (17.9 | ) | $ | (7.4 | ) | $ | (45.1 | ) | $ | (28.3 | ) | ||||||||||||||||||||
Gross transfers out of Level 3 during the three and nine months ended September 30, 2013 primarily related to securities of States, municipalities and political subdivisions; U.S. corporate securities; and Foreign securities. The fair value of securities transferred out of Level 3 had been based on broker quotes and effective in the third quarter of 2013 is based primarily on a matrix pricing model, which uses quoted market prices of debt securities with similar characteristics. Gross transfers into Level 3 during the three and nine months ended September 30, 2013 primarily were due to quoted prices for certain securities no longer being available in active markets. | ||||||||||||||||||||||||||||||||
Financial Instruments Not Measured at Fair Value in our Balance Sheets | ||||||||||||||||||||||||||||||||
The following is a description of the valuation methodologies used for estimating the fair value of our financial assets and liabilities that are carried on our balance sheets at adjusted cost or contract value. | ||||||||||||||||||||||||||||||||
Mortgage loans: Fair values are estimated by discounting expected mortgage loan cash flows at market rates that reflect the rates at which similar loans would be made to similar borrowers. These rates reflect our assessment of the credit worthiness of the borrower and the remaining duration of the loans. The fair value estimates of mortgage loans of lower credit quality, including problem and restructured loans, are based on the estimated fair value of the underlying collateral. | ||||||||||||||||||||||||||||||||
Bank loans: Where fair value is determined by quoted market prices of bank loans with similar characteristics, our bank loans are classified as Level 2 because they are traded in markets where quoted market prices of identical bank loans are not readily available. For bank loans classified as Level 3, fair value is determined by outside brokers using an internal analysis through a combination of their knowledge of the current pricing environment and market flows. | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
•With a fixed maturity: Fair value is estimated by discounting cash flows at interest rates currently | ||||||||||||||||||||||||||||||||
being offered by, or available to, us for similar contracts. | ||||||||||||||||||||||||||||||||
•Without a fixed maturity: Fair value is estimated as the amount payable to the contract holder upon | ||||||||||||||||||||||||||||||||
demand. However, we have the right under such contracts to delay payment of withdrawals that | ||||||||||||||||||||||||||||||||
may ultimately result in paying an amount different than that determined to be payable on demand. | ||||||||||||||||||||||||||||||||
Long-term debt: Fair values are based on quoted market prices for the same or similar issued debt or, if no quoted market prices are available, on the current rates estimated to be available to us for debt of similar terms and remaining maturities. | ||||||||||||||||||||||||||||||||
The carrying value and estimated fair value classified by level of fair value hierarchy for certain of our financial instruments at September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,556.20 | $ | — | $ | — | $ | 1,598.60 | $ | 1,598.60 | ||||||||||||||||||||||
Bank loans | 142.2 | — | 130.1 | 10.5 | 140.6 | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 9.2 | — | — | 9.2 | 9.2 | |||||||||||||||||||||||||||
Without a fixed maturity | 578.5 | — | — | 547.4 | 547.4 | |||||||||||||||||||||||||||
Long-term debt | 8,266.30 | — | 8,716.00 | — | 8,716.00 | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,643.60 | $ | — | $ | — | $ | 1,698.60 | $ | 1,698.60 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 18.5 | — | — | 18.5 | 18.5 | |||||||||||||||||||||||||||
Without a fixed maturity | 590.2 | — | — | 611.1 | 611.1 | |||||||||||||||||||||||||||
Long-term debt | 6,481.30 | — | 7,408.70 | — | 7,408.70 | |||||||||||||||||||||||||||
Separate Accounts Measured at Fair Value in our Balance Sheets | ||||||||||||||||||||||||||||||||
Separate Accounts assets in our Large Case Pensions business represent funds maintained to meet specific objectives of contract holders. Since contract holders bear the investment risk of these assets, a corresponding Separate Accounts liability has been established equal to the assets. These assets and liabilities are carried at fair value. Net investment income and capital gains and losses accrue directly to such contract holders. The assets of each account are legally segregated and are not subject to claims arising from our other businesses. Deposits, withdrawals, net investment income and realized and unrealized capital gains and losses on Separate Accounts assets are not reflected in our statements of income, shareholders’ equity or cash flows. | ||||||||||||||||||||||||||||||||
Separate Accounts assets include debt and equity securities and derivative instruments. The valuation methodologies used for these assets are similar to the methodologies described beginning on page 21. Separate Accounts assets also include investments in common/collective trusts that are carried at fair value. Common/collective trusts invest in other investment funds otherwise known as the underlying funds. The Separate Accounts’ interests in the common/collective trust funds are based on the fair values of the investments of the underlying funds and therefore are classified as Level 2. The assets in the underlying funds primarily consist of equity securities. Investments in common/collective trust funds are valued at their respective net asset value per share/unit on the valuation date. | ||||||||||||||||||||||||||||||||
Separate Accounts financial assets at September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Debt securities | $ | 685.7 | $ | 2,163.90 | $ | 0.6 | $ | 2,850.20 | $ | 721.7 | $ | 2,343.90 | $ | 0.4 | $ | 3,066.00 | ||||||||||||||||
Equity securities | 209.4 | 1.6 | — | 211 | 194.9 | 1 | — | 195.9 | ||||||||||||||||||||||||
Derivatives | — | 0.2 | — | 0.2 | — | (1.8 | ) | — | (1.8 | ) | ||||||||||||||||||||||
Common/collective trusts | — | 692.7 | — | 692.7 | — | 749 | — | 749 | ||||||||||||||||||||||||
Total (1) | $ | 895.1 | $ | 2,858.40 | $ | 0.6 | $ | 3,754.10 | $ | 916.6 | $ | 3,092.10 | $ | 0.4 | $ | 4,009.10 | ||||||||||||||||
(1) | Excludes $179.5 million and $238.0 million of cash and cash equivalents and other receivables at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||||
Gross transfers of Separate Accounts financial assets out of Level 3 during the nine months ended September 30, 2013 and 2012 were $4.6 million and $.6 million, respectively. For the three and nine months ended September 30, 2013 and 2012, there were no transfers of Separate Accounts financial assets between Levels 1 and 2 and no transfers of Separate Accounts financial assets into or out of Level 3 except as previously stated. | ||||||||||||||||||||||||||||||||
Offsetting Financial Assets and Liabilities | ||||||||||||||||||||||||||||||||
Certain financial assets and liabilities are offset in our balance sheets or are subject to master netting arrangements or similar agreements with the applicable counterparty. Financial assets, including derivative assets, subject to offsetting and enforceable master netting arrangements as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 41.8 | $ | — | $ | (40.4 | ) | $ | 1.4 | |||||||||||||||||||||||
Total | $ | 41.8 | $ | — | $ | (40.4 | ) | $ | 1.4 | |||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 9.4 | $ | 12.5 | $ | (7.5 | ) | $ | 14.4 | |||||||||||||||||||||||
Total | $ | 9.4 | $ | 12.5 | $ | (7.5 | ) | $ | 14.4 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2013 or December 31, 2012. | ||||||||||||||||||||||||||||||||
Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Paid | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 6.1 | $ | (10.7 | ) | $ | (.9 | ) | $ | (5.5 | ) | |||||||||||||||||||||
Securities lending | 550.2 | (550.2 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 556.3 | $ | (560.9 | ) | $ | (.9 | ) | $ | (5.5 | ) | |||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||||||||||||||||||
Securities lending | 47.1 | (47.1 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 47.4 | $ | (47.1 | ) | $ | — | $ | 0.3 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2013 or December 31, 2012. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Plans | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Pension and Other Postretirement Plans | 10. Pension and Other Postretirement Plans | |||||||||||||||||||||||||||||||
Defined Benefit Retirement Plans | ||||||||||||||||||||||||||||||||
Components of the net periodic benefit (income) cost of our defined benefit pension plans and other postretirement benefit (“OPEB”) plans for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.1 | ||||||||||||||||
Amortization of prior service cost | (.1 | ) | (.1 | ) | (.3 | ) | (.3 | ) | (1.0 | ) | (.9 | ) | (2.7 | ) | (2.7 | ) | ||||||||||||||||
Interest cost | 67.9 | 74.6 | 203.6 | 223.8 | 2.8 | 3.6 | 8.3 | 10.8 | ||||||||||||||||||||||||
Expected return on plan assets | (99.1 | ) | (96.8 | ) | (297.3 | ) | (290.5 | ) | (.6 | ) | (.6 | ) | (1.8 | ) | (2.0 | ) | ||||||||||||||||
Recognized net actuarial losses | 19 | 17.5 | 56.6 | 52.7 | 0.6 | 1.1 | 1.7 | 3.3 | ||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | (12.3 | ) | $ | (4.8 | ) | $ | (37.4 | ) | $ | (14.3 | ) | $ | 1.8 | $ | 3.2 | $ | 5.5 | $ | 9.5 | ||||||||||||
During each of the third quarters of 2013 and 2012, we made $60 million in voluntary cash contributions to our tax-qualified noncontributory defined benefit pension plan. |
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure | 11. Debt | |||||||
The carrying value of our long-term debt at September 30, 2013 and December 31, 2012 was as follows: | ||||||||
(Millions) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Senior notes, 6.3%, due 2014 | $ | 392.2 | $ | — | ||||
Senior notes, 6.125%, due 2015 | 243.4 | — | ||||||
Senior notes, 6.0%, due 2016 | 748.8 | 748.5 | ||||||
Senior notes, 5.95%, due 2017 | 438.2 | — | ||||||
Senior notes, 1.75%, due 2017 | 248.8 | 248.6 | ||||||
Senior notes, 1.5%, due 2017 | 498 | 497.7 | ||||||
Senior notes, 6.5%, due 2018 | 494.9 | 494.8 | ||||||
Senior notes, 3.95%, due 2020 | 744.1 | 743.4 | ||||||
Senior notes, 5.45%, due 2021 | 705.8 | — | ||||||
Senior notes, 4.125%, due 2021 | 494.7 | 494.1 | ||||||
Senior notes, 2.75%, due 2022 | 984.6 | 983.4 | ||||||
Senior notes, 6.625%, due 2036 | 769.8 | 769.7 | ||||||
Senior notes, 6.75%, due 2037 | 530.6 | 529.5 | ||||||
Senior notes, 4.5%, due 2042 | 479.9 | 479.3 | ||||||
Senior notes, 4.125%, due 2042 | 492.5 | 492.3 | ||||||
Total long-term debt | 8,266.30 | 6,481.30 | ||||||
Less current portion of long-term debt (1) | 392.2 | — | ||||||
Total long-term debt, less current portion | $ | 7,874.10 | $ | 6,481.30 | ||||
(1) At September 30, 2013, our 6.3% senior notes due August 2014 are classified as current in the accompanying consolidated balance sheet. | ||||||||
As discussed in Note 3 beginning on page 7, our total long-term debt outstanding increased by $1.8 billion as a result of the acquisition of Coventry, which includes $216.6 million to adjust the Coventry long-term debt to its estimated fair value at the Effective Date. The principal amounts of the outstanding Coventry notes are $375 million of 6.3% senior notes due 2014, $229 million of 6.125% senior notes due 2015, $383 million of 5.95% senior notes due 2017 and $600 million of 5.45% senior notes due 2021. | ||||||||
We issued approximately $700 million of commercial paper in 2013 to finance a portion of the cash purchase price for the acquisition of Coventry. At both September 30, 2013 and December 31, 2012, we did not have any commercial paper outstanding. | ||||||||
Interest Rate Swaps | ||||||||
During June and July of 2012, we entered into two interest rate swaps with an aggregate notional value of $375 million. We designated these swaps as cash flow hedges against interest rate exposure related to the forecasted future issuance of fixed-rate debt to refinance long-term debt maturing in June 2016. At September 30, 2013, these interest rate swaps had a pretax fair value gain of $39.9 million, which was reflected net of tax in accumulated other comprehensive loss within shareholders' equity. | ||||||||
Revolving Credit Facility | ||||||||
On March 27, 2012, we entered into an unsecured $1.5 billion five-year revolving credit agreement (the “Credit Agreement”) with several financial institutions. On September 24, 2012, and in connection with the acquisition of Coventry, we entered into a First Amendment (the “First Amendment”) to the Credit Agreement and also entered into an Incremental Commitment Agreement (the “Incremental Commitment”, and together with the First Amendment and the Credit Agreement, resulting in the “Facility”). The Facility is an unsecured $2.0 billion revolving credit agreement. Upon our agreement with one or more financial institutions, we may expand the aggregate commitments under the Facility to a maximum of $2.5 billion. The Facility also provides for the issuance of up to $200 million of letters of credit at our request, which count as usage of the available commitments under the Facility. On March 27, 2013, the maturity date of the Facility was extended by one year to March 27, 2018. | ||||||||
Various interest rate options are available under the Facility. Any revolving borrowings mature on the termination date of the Facility. We pay facility fees on the Facility ranging from .070% to .150% per annum, depending upon our long-term senior unsecured debt rating. The facility fee was .100% at September 30, 2013. The Facility contains a financial covenant that requires us to maintain a ratio of total debt to consolidated capitalization as of the end of each fiscal quarter at or below 50%. For this purpose, consolidated capitalization equals the sum of total shareholders’ equity, excluding any overfunded or underfunded status of our pension and OPEB plans and any net unrealized capital gains and losses, and total debt (as defined in the Facility). We met this requirement at September 30, 2013. There were no amounts outstanding under the Facility at any time during the nine months ended September 30, 2013. |
Capital_Stock
Capital Stock | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Class of Stock Disclosures [Abstract] | |||||||||||
Capital Stock | 12. Capital Stock | ||||||||||
On September 27, 2013, February 19, 2013 and July 27, 2012, our Board of Directors (our “Board”) authorized three separate share repurchase programs. Each repurchase program authorized us to repurchase up to $750 million of our common stock. During the nine months ended September 30, 2013, we repurchased approximately 16 million shares of common stock at a cost of approximately $958 million. At September 30, 2013, we had remaining authorization to repurchase an aggregate of up to approximately $1 billion of common stock under the September 27, 2013 and February 19, 2013 programs. | |||||||||||
During the nine months ended September 30, 2013 our Board declared the following cash dividends: | |||||||||||
Date Declared | Dividend Amount | Stockholders of | Date Paid/ | Total Dividends | |||||||
Per Share | Record Date | To be Paid | (Millions) | ||||||||
February 19, 2013 | $ | 0.2 | April 11, 2013 | April 26, 2013 | $ | 65.2 | |||||
May 17, 2013 | 0.2 | July 11, 2013 | July 26, 2013 | 74.4 | |||||||
September 27, 2013 | 0.2 | October 10, 2013 | October 25, 2013 | 73.6 | |||||||
Declaration and payment of future dividends is at the discretion of our Board and may be adjusted as business needs or market conditions change. | |||||||||||
On the Effective Date, we issued approximately 52.2 million Aetna common shares, with a fair value of approximately $3.1 billion and paid approximately $3.8 billion in cash in exchange for all the outstanding shares of Coventry common stock and outstanding awards. | |||||||||||
On May 24, 2013, approximately .5 million restricted stock units (“RSUs”) were granted to certain employees. | |||||||||||
On February 1, 2013, approximately .5 million performance stock units (“PSUs”), 1.1 million market stock units (“MSUs”) and 1.1 million RSUs were granted to certain employees. The number of vested PSUs (which could range from zero to 200% of the original number of units granted) is dependent upon the degree to which we achieve performance goals during the performance periods as determined by our Board’s Committee on Compensation and Organization. The PSUs have two separate performance periods which relate to the Company's operating performance during the years ending December 31, 2013 and December 31, 2014. The vesting period for the PSUs ends on February 1, 2015. The number of vested MSUs (which could range from zero to 150% of the original number of units granted) is based on the percentage change between the closing price of our common stock on the grant date and the weighted average closing price of our common stock for the thirty trading days prior to and including the vesting dates. Certain MSUs contain a performance condition that relates to the Company's cumulative performance during the years ending December 31, 2013 and December 31, 2014. The vesting period for the MSUs ends February 1, 2016. Each vested PSU, MSU and RSU represents one share of common stock and will be paid in shares of common stock, net of taxes, at the end of the applicable vesting period. The RSUs will become 100% vested approximately three years from the grant date, with one-third vesting each December. |
Dividend_Restrictions_and_Stat
Dividend Restrictions and Statutory Surplus | 9 Months Ended |
Sep. 30, 2013 | |
Dividend Restrictions and Statutory Surplus [Abstract] | |
Dividend Restrictions and Statutory Surplus | 13. Dividend Restrictions and Statutory Surplus |
Under regulatory requirements at September 30, 2013, the amount of dividends that may be paid through the end of 2013 by our insurance and HMO subsidiaries without prior approval by regulatory authorities is approximately $900 million in the aggregate. There are no such regulatory restrictions on distributions from Aetna to its shareholders. In the third quarter of 2013, our insurance and HMO subsidiaries paid approximately $637 million of dividends to the Company. | |
The combined statutory capital and surplus of our insurance and HMO subsidiaries was $8.8 billion and $6.4 billion at September 30, 2013 and December 31, 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies |
Guaranty Fund Assessments, Market Stabilization and Other Non-Voluntary Risk Sharing Pools | |
Under guaranty fund laws existing in all states, insurers doing business in those states can be assessed (up to prescribed limits) for certain obligations of insolvent insurance companies to policyholders and claimants. The health insurance guaranty associations in which we participate that operate under these laws respond to insolvencies of long-term care insurers as well as health insurers. Our assessments generally are based on a formula relating to our premiums in the state compared to the premiums of other insurers. Certain states allow assessments to be recovered as offsets to premium taxes. Some states have similar laws relating to HMOs. The Pennsylvania Insurance Commissioner (the “Commissioner”) has placed long-term care insurer Penn Treaty Network America Insurance Company and one of its subsidiaries (collectively, “Penn Treaty”) in rehabilitation, an intermediate action before insolvency, and subsequently petitioned a state court to convert the rehabilitation into a liquidation. In May 2012, the state court denied the request and ordered the Commissioner to propose a rehabilitation plan. In September 2012, the state court finalized its opinion that Penn Treaty is not insolvent and remains in rehabilitation. The Commissioner has appealed the state court's decision and has filed a proposed rehabilitation plan with the state court. If the rehabilitation is not successful and Penn Treaty ultimately is placed in liquidation, we and other insurers likely would be assessed over a period of years by guaranty associations for the payments the guaranty associations are required to make to Penn Treaty policyholders. We are currently unable to predict the ultimate outcome of, or reasonably estimate the loss or range of losses resulting from, this potential insolvency because we cannot predict whether rehabilitation efforts will succeed, the amount of the insolvency, if any, the amount and timing of associated guaranty association assessments or the amount or availability of potential offsets, such as premium tax offsets. It is reasonably possible that in future reporting periods we may record a liability and expense relating to Penn Treaty or other insolvencies which could have a material adverse effect on our operating results, financial position and cash flows. While we have historically recovered more than half of guaranty fund assessments through statutorily permitted premium tax offsets, significant increases in assessments could lead to legislative and/or regulatory actions that may limit future offsets. | |
HMOs in certain states in which we do business are subject to assessments, including market stabilization and other risk-sharing pools, for which we are assessed charges based on incurred claims, demographic membership mix and other factors. We establish liabilities for these assessments based on applicable laws and regulations. In certain states, the ultimate assessments we pay are dependent upon our experience relative to other entities subject to the assessment and the ultimate liability is not known at the balance sheet date. While the ultimate amount of the assessment is dependent upon the experience of all pool participants, we believe we have adequate reserves to cover such assessments. | |
Litigation and Regulatory Proceedings | |
Out-of-Network Benefit Proceedings | |
We are named as a defendant in several purported class actions and individual lawsuits arising out of our practices related to the payment of claims for services rendered to our members by health care providers with whom we do not have a contract (“out-of-network providers”). Among other things, these lawsuits allege that we paid too little to our health plan members and/or providers for these services, among other reasons, because of our use of data provided by Ingenix, Inc., a subsidiary of one of our competitors (“Ingenix”). Other major health insurers are the subject of similar litigation or have settled similar litigation. | |
Various plaintiffs who are health care providers or medical associations seek to represent nationwide classes of out-of-network providers who provided services to our members during the period from 2001 to the present. Various plaintiffs who are members in our health plans seek to represent nationwide classes of our members who received services from out-of-network providers during the period from 2001 to the present. Taken together, these lawsuits allege that we violated state law, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Racketeer Influenced and Corrupt Organizations Act and federal antitrust laws, either acting alone or in concert with our competitors. The purported classes seek reimbursement of all unpaid benefits, recalculation and repayment of deductible and coinsurance amounts, unspecified damages and treble damages, statutory penalties, injunctive and declaratory relief, plus interest, costs and attorneys’ fees, and seek to disqualify us from acting as a fiduciary of any benefit plan that is subject to ERISA. Individual lawsuits that generally contain similar allegations and seek similar relief have been brought by health plan members and out-of-network providers. | |
The first class action case was commenced on July 30, 2007. The federal Judicial Panel on Multi-District Litigation (the “MDL Panel”) has consolidated these class action cases in the U.S. District Court for the District of New Jersey (the “New Jersey District Court”) under the caption In re: Aetna UCR Litigation, MDL No. 2020 (“MDL 2020”). In addition, the MDL Panel has transferred the individual lawsuits to MDL 2020. On May 9, 2011, the New Jersey District Court dismissed the physician plaintiffs from MDL 2020 without prejudice. The New Jersey District Court’s action followed a ruling by the United States District Court for the Southern District of Florida (the “Florida District Court”) that the physician plaintiffs were enjoined from participating in MDL 2020 due to a prior settlement and release. The United States Court of Appeals for the Eleventh Circuit has dismissed the physician plaintiffs' appeal of the Florida District Court’s ruling. | |
On December 6, 2012, we entered into an agreement to settle MDL No. 2020. Under the terms of the proposed nationwide settlement, we will be released from claims relating to our out-of-network reimbursement practices from the beginning of the applicable settlement class period through August 30, 2013. The settlement class period for health plan members begins on March 1, 2001, and the settlement class period for health care providers begins on June 3, 2003. The agreement contains no admission of wrongdoing. The medical associations are not parties to the settlement agreement. | |
Under the settlement agreement, we will pay $60 million, the substantial majority of which will be payable upon final court approval of the settlement, and pay up to an additional $60 million at the end of a claim submission and validation period that commences upon final court approval of the settlement. These payments will fund claims submitted by health plan members who are members of the plaintiff class and health care providers who are members of the plaintiff class. These payments also will fund the legal fees of plaintiffs' counsel and the costs of administering the settlement, in each case in amounts to be determined by the New Jersey District Court. | |
The New Jersey District Court preliminarily approved the settlement on August 30, 2013. The proposed settlement remains subject to final court approval, and a final approval hearing is scheduled for March 2014. Final court approval of the settlement could be delayed by appeals or other proceedings. In addition, the Company has the right to terminate the settlement agreement if more than certain percentages of class members, or class members collectively holding specified dollar amounts of claims, elect to opt-out of the settlement. In connection with the proposed settlement, the Company recorded an after-tax charge to net income of approximately $78 million in the fourth quarter of 2012. The Company will pay for the settlement with available resources and expects the settlement payments to occur over the next twelve to twenty-four months. We intend to continue to vigorously defend ourselves against the claims brought in these cases by non-settling plaintiffs. | |
We also have received subpoenas and/or requests for documents and other information from, and been investigated by, attorneys general and other state and/or federal regulators, legislators and agencies relating to our out-of-network benefit payment practices. It is reasonably possible that others could initiate additional litigation or additional regulatory action against us with respect to our out-of-network benefit payment practices. | |
CMS Actions | |
In June 2011, the Centers for Medicare & Medicaid Services (“CMS”) lifted the intermediate sanctions it had previously imposed on us in April 2010 that required us to suspend the enrollment of and marketing to new members of all Aetna Medicare Advantage and Standalone Prescription Drug Plan (“PDP”) contracts. The sanctions related to our compliance with certain Medicare Part D requirements. On September 27, 2012, CMS notified us that we were again eligible to receive assignments of low-income subsidy PDP members from CMS. | |
CMS regularly audits our performance to determine our compliance with CMS’s regulations and our contracts with CMS and to assess the quality of services we provide to Medicare beneficiaries. CMS uses various payment mechanisms to allocate and adjust premium payments to our and other companies’ Medicare plans by considering the applicable health status of Medicare members as supported by information maintained and provided by health care providers. We collect claim and encounter data from providers and generally rely on providers to appropriately code their submissions and document their medical records. CMS pays increased premiums to Medicare Advantage plans and PDPs for members who have certain medical conditions identified with specific diagnosis codes. Federal regulators review and audit the providers’ medical records and related diagnosis codes that determine the members’ health status and the resulting risk-adjusted premium payments to us. In that regard, CMS has instituted risk adjustment data validation (“RADV”) audits of various Medicare Advantage plans, including certain of the Company's plans. The Office of Inspector General (the “OIG”) also is auditing risk adjustment data of other companies, and we expect CMS and the OIG to continue auditing risk adjustment data. | |
In February 2012, CMS published a Notice of Final Payment Error Calculation Methodology for Part C Medicare Advantage Risk Adjustment Data Validation Contract-Level Audits (the “Notice”). The Notice outlines the methodology that CMS will use to determine RADV audit premium refunds payable by Medicare Advantage plans for contract years 2011 and forward. Under that methodology, the RADV audit premium refund calculation will include an adjustment for the differences in documentation standards between the RADV audits and the risk adjustment model; however, the Notice provides limited information about that adjustment. In addition, CMS will project the error rate identified in the audit sample to all risk adjusted premium payments made under the contract being audited. Historically, CMS did not make an adjustment for differences in documentation standards or project sample error rates to the entire contract. During 2013, CMS is expected to select Medicare Advantage contracts for contract year 2011 for audit. We are currently unable to predict which of our Medicare Advantage contracts will be selected for future audit, the financial impact of the documentation standard adjustment, the amounts of any retroactive refunds of, or prospective adjustments to, Medicare Advantage premium payments made to us, the effect of any such refunds or adjustments on the actuarial soundness of our Medicare Advantage bids, or whether any RADV audit findings would cause a change to our method of estimating future premium revenue in bid submissions to CMS for the current or future contract years or compromise premium assumptions made in our bids for prior contract years or the current contract year. Any premium refunds or adjustments resulting from regulatory audits, whether as a result of RADV or other audits by CMS, the OIG or otherwise, could be material and could adversely affect our operating results, financial position and cash flows. | |
Other Litigation and Regulatory Proceedings | |
We are involved in numerous other lawsuits arising, for the most part, in the ordinary course of our business operations, including employment litigation and claims of bad faith, medical malpractice, non-compliance with state and federal regulatory regimes, marketing misconduct, failure to timely or appropriately pay medical and/or group insurance claims (including post-payment audit and collection practices), rescission of insurance coverage, improper disclosure of personal information, patent infringement and other intellectual property litigation and other litigation in our Health Care and Group Insurance businesses. Some of these other lawsuits are or are purported to be class actions. We intend to vigorously defend ourselves against the claims brought in these matters. | |
In addition, our operations, current and past business practices, current and past contracts, and accounts and other books and records are subject to routine, regular and special investigations, audits, examinations and reviews by, and from time to time we receive subpoenas and other requests for information from, CMS, the U.S. Department of Health and Human Services, various state insurance and health care regulatory authorities, state attorneys general and offices of inspector general, the Center for Consumer Information and Insurance Oversight, OIG, the Office of Personnel Management, the U.S. Department of Labor, committees, subcommittees and members of the U.S. Congress, the U.S. Department of Justice, the Federal Trade Commission, U.S. attorneys and other state, federal and international governmental authorities. These government actions include inquiries by, and testimony before, certain members, committees and subcommittees of the U.S. Congress regarding certain of our current and past business practices, including our overall claims processing and payment practices, our business practices with respect to our small group products, student health products or individual customers (such as market withdrawals, rating information, premium increases and medical benefit ratios), executive compensation matters and travel and entertainment expenses, as well as the investigations by, and subpoenas and requests from, attorneys general and others described above under “Out-of-Network Benefit Proceedings.” | |
Over 35 states are investigating life insurers' claims payment and related escheat practices, and these investigations have resulted in significant charges to earnings by other life insurers in connection with related settlements. We have received requests for information from a number of states, and certain of our subsidiaries are being audited, with respect to our life insurance claim payment and related escheat practices. We may incur a liability as a result of these investigations and/or audits, whether as a result of changes in our business practices, litigation, government actions or otherwise, which could adversely affect our operating results and cash flows. | |
There also continues to be heightened review by regulatory authorities of and increased litigation regarding the health care and related benefits industry’s business and reporting practices, including premium rate increases, utilization management, development and application of medical policies, complaint, grievance and appeal processing, information privacy, provider network structure (including the use of performance-based networks and termination of provider contracts), delegated arrangements, rescission of insurance coverage, limited benefit health products, student health products, pharmacy benefit management practices, sales practices, and claim payment practices (including payments to out-of-network providers and payments on life insurance policies). | |
As a leading national health and related benefits company, we regularly are the subject of government actions of the types described above. These government actions may prevent or delay us from implementing planned premium rate increases and may result, and have resulted, in restrictions on our business, changes to or clarifications of our business practices, retroactive adjustments to premiums, refunds or other payments to members, beneficiaries, states or the federal government, assessments of damages, civil or criminal fines or penalties, or other sanctions, including the possible loss of licensure or suspension or exclusion from participation in government programs, such as the intermediate sanctions previously imposed on us by CMS that are described above under “CMS Actions.” | |
Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve fines, penalties or punitive damages that are discretionary in amount, involve a large number of claimants or regulatory authorities, represent a change in regulatory policy, present novel legal theories, are in the early stages of the proceedings, are subject to appeal or could result in a change in business practices. In addition, because most legal proceedings are resolved over long periods of time, potential losses are subject to change due to, among other things, new developments, changes in litigation strategy, the outcome of intermediate procedural and substantive rulings and other parties’ settlement posture and their evaluation of the strength or weakness of their case against us. Except as specifically noted above under “Out-of-Network Benefit Proceedings,” we are currently unable to predict the ultimate outcome of, or reasonably estimate the losses or a range of losses resulting from, the matters described above, and it is reasonably possible that their outcome could be material to us. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Information | 15. Segment Information | |||||||||||||||||||
Our operations are conducted in three business segments: Health Care, Group Insurance and Large Case Pensions. The acquired Coventry operations are reflected in our Health Care segment for the three and nine months ended September 30, 2013. Our Corporate Financing segment is not a business segment; it is added to our business segments to reconcile to our consolidated results. The Corporate Financing segment includes interest expense on our outstanding debt and the financing components of our pension and OPEB plan expense (the service cost and prior service cost components of this expense are allocated to our business segments). | ||||||||||||||||||||
Summarized financial information of our segments for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||||||||
(Millions) | Health | Group | Large Case | Corporate | Total Company | |||||||||||||||
Care | Insurance | Pensions (2) | Financing | |||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers | $ | 12,228.70 | $ | 510.7 | $ | 98.9 | $ | — | $ | 12,838.30 | ||||||||||
Operating earnings (loss) (1) | 585.8 | 19.7 | 6.2 | (49.9 | ) | 561.8 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Revenue from external customers | $ | 8,172.70 | $ | 465.8 | $ | 45.3 | $ | — | $ | 8,683.80 | ||||||||||
Operating earnings (loss) (1) | 531.8 | 29.3 | 3.7 | (41.6 | ) | 523.2 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers | $ | 31,743.00 | $ | 1,536.80 | $ | 174.2 | $ | — | $ | 33,454.00 | ||||||||||
Operating earnings (loss) (1) | 1,637.80 | 80.8 | 16.2 | (128.6 | ) | 1,606.20 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Revenue from external customers | $ | 24,398.40 | $ | 1,378.10 | $ | 134.5 | $ | — | $ | 25,911.00 | ||||||||||
Operating earnings (loss) (1) | 1,444.20 | 116.2 | 13.4 | (121.2 | ) | 1,452.60 | ||||||||||||||
(1) | Operating earnings (loss) excludes net realized capital gains or losses and the other items described in the reconciliation below. | |||||||||||||||||||
(2) | In the third quarter of 2013, an existing group annuity contract converted from a participating to a non-participating contract. Upon conversion, we recorded $54.1 million of non-cash group annuity conversion premium for this contract and a corresponding $54.1 million non-cash benefit expense on group annuity conversion for this contract. | |||||||||||||||||||
A reconciliation of operating earnings (1) to net income attributable to Aetna for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Operating earnings (1) | $ | 561.8 | $ | 523.2 | $ | 1,606.20 | $ | 1,452.60 | ||||||||||||
Transaction and integration-related costs, net of tax | (34.6 | ) | (12.5 | ) | (140.6 | ) | (12.5 | ) | ||||||||||||
Reduction of reserve for anticipated future losses on discontinued products, net of tax | — | — | 55.9 | — | ||||||||||||||||
Reversal of allowance and gain on sale of reinsurance recoverable, net of tax | — | — | 32.1 | — | ||||||||||||||||
Loss on early extinguishment of long-term debt, net of tax | — | (23.0 | ) | — | (23.0 | ) | ||||||||||||||
Net realized capital (losses) gains, net of tax | (8.6 | ) | 11.5 | (8.9 | ) | 50.7 | ||||||||||||||
Net income attributable to Aetna | $ | 518.6 | $ | 499.2 | $ | 1,544.70 | $ | 1,467.80 | ||||||||||||
(1) | In addition to net realized capital gains (losses), the following items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance: | |||||||||||||||||||
• | We incurred transaction and integration-related costs related to the acquisition of Coventry of $34.6 million ($51.2 million pretax) and $140.6 million ($189.6 million pretax) during the three and nine months ended September 30, 2013, respectively, and $12.5 million ($13.8 million pretax) during the three and nine months ended September 30, 2012. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Effective Date, the negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Effective Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings. | |||||||||||||||||||
• | We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 17 beginning on page 36 for additional information on the reduction of the reserve for anticipated future losses on discontinued products. | |||||||||||||||||||
• | In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue. | |||||||||||||||||||
• | In the third quarter of 2012, we incurred a loss on the early extinguishment of long-term debt of $23.0 million ($35.4 million pretax) related to repurchases of certain of our outstanding senior notes. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2013 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 16. Reinsurance |
In January 2013, we entered into four-year reinsurance agreements with Vitality Re IV Limited, an unrelated insurer. The agreements allow us to reduce our required capital and provide $150 million of collateralized excess of loss reinsurance coverage on a portion of Aetna's group Commercial Insured Health Care business. | |
In May 2013, we entered into two agreements with unrelated reinsurers to reinsure a portion of our Medicare Advantage business and a portion of our group Commercial Insured Health Care business, respectively. These contracts did not qualify for reinsurance accounting under GAAP, and consequently are accounted for using deposit accounting. | |
In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In September 2008, we took possession of assets supporting the reinsurance recoverable, which previously were held as collateral in a trust. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue. |
Discontinued_Products
Discontinued Products | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Discontinued Products [Abstract] | ||||||||
Discontinued Products | ||||||||
17 | Discontinued Products | |||||||
Prior to 1993, we sold single-premium annuities (“SPAs”) and guaranteed investment contracts (“GICs”), primarily to employer sponsored pension plans. In 1993, we discontinued selling these products to Large Case Pensions customers, and now we refer to these products as discontinued products. | ||||||||
We discontinued selling these products because they were generating losses for us, and we projected that they would continue to generate losses over their life (which is currently greater than 30 years for SPAs); so we established a reserve for anticipated future losses at the time of discontinuance. This reserve represents the present value (at the risk-free rate of return at the time of discontinuance, consistent with the duration of the liabilities) of the difference between the expected cash flows from the assets supporting these products and the cash flows expected to be required to meet the obligations of the outstanding contracts. As of September 30, 2013, our remaining GIC liability was not material. | ||||||||
Key assumptions in setting the reserve for anticipated losses include future investment results, payments to retirees, mortality and retirement rates and the cost of asset management and customer service. In 2012, we modified the mortality tables used in order to reflect a more up-to-date 2000 Retired Pensioner’s Mortality table. The mortality tables were previously modified in 1995, in order to reflect a more up-to-date 1994 Uninsured Pensioner's Mortality table. In 1997, we began the use of a bond default assumption to reflect historical default experience. Other than these changes, since 1993 there have been no significant changes to the assumptions underlying the reserve. | ||||||||
We review the adequacy of this reserve quarterly based on actual experience. As long as our expected future losses remain consistent with prior projections, the results of the discontinued products are applied against the reserve and do not impact net income. If actual or expected future losses are greater than we currently estimate, we may increase the reserve, which could adversely impact net income. If actual or expected future losses are less than we currently estimate, we may decrease the reserve, which could favorably impact net income. As a result of this review, $55.9 million ($86.0 million pretax) of the reserve was released in the nine months ended September 30, 2013. This reserve release was primarily due to favorable investment performance as well as favorable retirement experience compared to assumptions we previously made in estimating the reserve. The reserve at each of September 30, 2013 and December 31, 2012 reflects management's best estimate of anticipated future losses, and is included in future policy benefits on our balance sheet. | ||||||||
The activity in the reserve for anticipated future losses on discontinued products for the nine months ended September 30, 2013 and 2012 (pretax) was as follows: | ||||||||
(Millions) | 2013 | 2012 | ||||||
Reserve, beginning of period | $ | 978.5 | $ | 896.3 | ||||
Operating loss | (8.5 | ) | (5.1 | ) | ||||
Net realized capital gains | 73.7 | 55.2 | ||||||
Reserve reduction | (86.0 | ) | — | |||||
Reserve, end of period | $ | 957.7 | $ | 946.4 | ||||
During the nine months ended September 30, 2013, our discontinued products reflected net realized capital gains, primarily attributable to gains from other invested assets and from the sale of debt securities. We evaluated these results against expectations of future cash flows assumed in estimating the reserve and do not believe that an adjustment to the reserve was required at September 30, 2013. | ||||||||
Assets and liabilities supporting discontinued products at September 30, 2013 and December 31, 2012 were as | ||||||||
follows: (1) | ||||||||
(Millions) | 2013 | 2012 | ||||||
Assets: | ||||||||
Debt and equity securities available for sale | $ | 2,326.90 | $ | 2,515.30 | ||||
Mortgage loans | 407.2 | 448.6 | ||||||
Other investments | 690.9 | 711.6 | ||||||
Total investments | 3,425.00 | 3,675.50 | ||||||
Other assets | 101 | 79.2 | ||||||
Collateral received under securities loan agreements | 151 | 3.8 | ||||||
Current and deferred income taxes | 25.2 | 19.3 | ||||||
Receivable from continuing products (2) | 525.1 | 556 | ||||||
Total assets | $ | 4,227.30 | $ | 4,333.80 | ||||
Liabilities: | ||||||||
Future policy benefits | $ | 2,795.30 | $ | 2,857.60 | ||||
Policyholders' funds | — | 6.6 | ||||||
Reserve for anticipated future losses on discontinued products | 957.7 | 978.5 | ||||||
Collateral payable under securities loan agreements | 151.1 | 3.8 | ||||||
Other liabilities (3) | 323.2 | 487.3 | ||||||
Total liabilities | $ | 4,227.30 | $ | 4,333.80 | ||||
(1) | Assets supporting the discontinued products are distinguished from assets supporting continuing products. | |||||||
(2) | At the time of discontinuance, a receivable from Large Case Pensions' continuing products was established on the discontinued products balance sheet. This receivable represented the net present value of anticipated cash shortfalls in the discontinued products, which will be funded from continuing products. Interest on the receivable is accrued at the discount rate that was used to calculate the reserve. The offsetting payable, on which interest is similarly accrued, is reflected in continuing products. Interest on the payable generally offsets investment income on the assets available to fund the shortfall. These amounts are eliminated in consolidation. | |||||||
(3) | Net unrealized capital gains on the available-for-sale debt securities are included in other liabilities and are not reflected in consolidated shareholders’ equity. | |||||||
The distributions on our discontinued products consisted of scheduled contract maturities, settlements and benefit payments of $98 million and $296 million for the three and nine months ended September 30, 2013, respectively, and $99 million and $300 million for the three and nine months ended September 30, 2012, respectively. Participant-directed withdrawals from our discontinued products were not significant during the three or nine months ended September 30, 2013 or 2012. Cash required to fund these distributions was provided by earnings and scheduled payments on, and sales of, invested assets. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements |
These interim financial statements necessarily rely on estimates, including assumptions as to annualized tax rates. In the opinion of management, all adjustments necessary for a fair statement of results for the interim periods have been made. All such adjustments are of a normal, recurring nature. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes presented in our 2012 Annual Report on Form 10-K (our “2012 Annual Report”). Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), but that is not required for interim reporting purposes, has been condensed or omitted. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our 2012 Annual Report, unless the information contained in those disclosures materially changed and is required by GAAP. We evaluated subsequent events that occurred after September 30, 2013 through the date the financials were issued and determined there were no other items to disclose. | |
Principles of Consolidation | Principles of Consolidation |
These unaudited consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Aetna and the subsidiaries we control. All significant intercompany balances have been eliminated in consolidation. | |
Reclassifications | Reclassifications |
Certain reclassifications were made to 2012 financial information to conform with 2013 presentation. |
Completed_Acquisition_Complete
Completed Acquisition; Completed Disposition Completed Acquisition, Completed Disposition (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Schedule of Purchase Price Allocation | The components of consideration transferred for the acquisition of Coventry were as follows: | ||||||||||
(Certain amounts may reflect rounding adjustments) | |||||||||||
Conversion | Form of | ||||||||||
(Millions, except per common share data) | Calculation | Fair Value | Consideration | ||||||||
Consideration Transferred: | |||||||||||
Number of shares of Coventry common stock outstanding at May 7, 2013: | 133.7 | ||||||||||
Multiplied by Aetna's share price at May 7, 2013, multiplied by the | Aetna | ||||||||||
exchange ratio ($58.69*0.3885) | $ | 22.8 | $ | 3,047.40 | Common Shares | ||||||
Multiplied by the per common share cash consideration | $ | 27.3 | $ | 3,648.70 | Cash | ||||||
Number of shares underlying in-the-money Coventry stock options vested and unvested | |||||||||||
outstanding as of May 7, 2013, canceled and exchanged for cash | 4.9 | ||||||||||
Multiplied by the excess, if any, of (1) the sum of (x) the per | |||||||||||
common share cash consideration plus (y) the Aetna closing share price (1) | |||||||||||
multiplied by the exchange ratio ($57.93*0.3885) over | |||||||||||
(2) the weighted-average exercise price of such | |||||||||||
in-the-money stock options | $ | 15.94 | $ | 78.1 | Cash | ||||||
Number of Coventry performance share units and restricted stock | |||||||||||
units outstanding at May 7, 2013, canceled and paid in cash | 1.6 | ||||||||||
Multiplied by the equity award cash consideration | $ | 49.8 | $ | 58.5 | Cash (2) | ||||||
Number of Coventry restricted shares outstanding at May 7, 2013: | 1.1 | ||||||||||
Less: employee tax withholdings | (.4 | ) | $ | 18.8 | Cash | ||||||
Net restricted shares outstanding at May 7, 2013 | 0.7 | ||||||||||
Multiplied by Aetna's share price at May 7, 2013, multiplied by | Aetna | ||||||||||
the exchange ratio ($58.69*0.3885) | $ | 22.8 | $ | 17.2 | Common Shares | ||||||
Multiplied by the per common share cash consideration | $ | 27.3 | $ | 20.5 | Cash | ||||||
Other consideration transferred (3) | 6.9 | ||||||||||
Total consideration transferred | $ | 6,896.10 | |||||||||
(1) | Based on the average of the volume weighted averages of the trading prices of Aetna common shares on the New York Stock Exchange for each of the five consecutive trading days ending on the trading day that was two trading days prior to the Effective Date. | ||||||||||
(2) | Pursuant to the terms of certain employment agreements, an aggregate of approximately .5 million performance share units and restricted stock units did not automatically vest upon the change of control of Coventry. In the absence of such automatic vesting upon a change in control, pursuant to GAAP, Aetna estimated the fair value of these awards at the Effective Date and attributed that fair value to pre-Merger and post-Merger services. Accordingly, $6.9 million of the fair value of these awards was attributed to pre-Merger services and is included in the estimated consideration transferred, and approximately $19.0 million will be accounted for in Aetna's post-Merger financial statements as transaction-related costs and reflected as a selling, general and administrative expense in Aetna's statements of income. | ||||||||||
(3) | Certain of Coventry's named executive officers received payments pursuant to employment agreements entered into prior to the Coventry acquisition. The total compensation paid in cash pursuant to such agreements in connection with the Merger was $6.5 million. Other consideration transferred also includes the portion of the fair value of the Rollover Units that was attributed to pre-Merger services. The fair value attributable to post-Merger services will be recorded as selling, general and administrative expense in Aetna's post-Merger financial statements. | ||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of major classes of assets acquired and liabilities assumed as part of the Merger, reconciled to the total consideration transferred: | ||||||||||
At May 7, | |||||||||||
(Millions) | 2013 | ||||||||||
Cash and cash equivalents | $ | 2,195.60 | |||||||||
Investments | 2,156.40 | ||||||||||
Premiums and other receivables, net | 1,141.10 | ||||||||||
Intangible assets acquired | 1,490.00 | ||||||||||
Property and equipment | 174.8 | ||||||||||
Other assets | 97.5 | ||||||||||
Total assets acquired | 7,255.40 | ||||||||||
Health care costs payable | 1,440.10 | ||||||||||
Long-term debt | 1,803.80 | ||||||||||
Net deferred tax liabilities (1) | 257 | ||||||||||
Other liabilities | 854.9 | ||||||||||
Total liabilities assumed | 4,355.80 | ||||||||||
Total identifiable net assets | 2,899.60 | ||||||||||
Goodwill acquired | 3,996.50 | ||||||||||
Total consideration transferred | $ | 6,896.10 | |||||||||
(1) | Includes $521.5 million of deferred tax liabilities on identifiable intangible assets acquired and $75.8 million of deferred tax assets on the fair value adjustment to Coventry's outstanding debt. | ||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The fair value and weighted-average useful lives for all intangible assets acquired are as follows: | ||||||||||
Fair Value (Millions) | Useful Life (Years) | ||||||||||
Customer lists | $ | 810 | 10 | ||||||||
Provider networks | 550 | 17 | |||||||||
Trademarks/tradenames | 100 | 10 | |||||||||
Technology | 30 | 4 | |||||||||
Total | $ | 1,490.00 | |||||||||
Actual Impacts of Acquisition | Actual and Pro Forma Impact of Acquisition | ||||||||||
The results of Coventry have been included in our results from the Effective Date through September 30, 2013. The following table presents revenue and net income of Coventry included in our results for the three and nine months ended September 30, 2013: | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
(Millions) | 30-Sep-13 | 30-Sep-13 | |||||||||
Revenue | $ | 3,531.30 | $ | 5,599.80 | |||||||
Net Income | 112.8 | 169 | |||||||||
Business Acquisition, Pro Forma Information | The following table presents supplemental pro forma information as if the Merger had occurred on January 1, 2012 for the nine months ended September 30, 2013 and for the three and nine months ended September 30, 2012. The pro forma consolidated results are not necessarily indicative of what our consolidated results would have been had the Merger been completed on January 1, 2012. In addition, the pro forma consolidated results do not purport to project the future results of the combined company nor do they reflect the expected realization of any cost savings associated with the Merger. | ||||||||||
Three Months Ended | Nine Months Ended September 30, | ||||||||||
(Millions, except per common share data) | 30-Sep-12 | 2013 | 2012 | ||||||||
Total revenue | $ | 12,253.30 | $ | 38,906.60 | $ | 37,031.80 | |||||
Net income | 600 | 1,775.30 | 1,810.10 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.55 | $ | 4.73 | $ | 4.59 | |||||
Diluted | 1.54 | 4.68 | 4.53 | ||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Share | The computations of basic and diluted EPS for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions, except per common share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income attributable to Aetna | $ | 518.6 | $ | 499.2 | $ | 1,544.70 | $ | 1,467.80 | ||||||||
Weighted average shares used to compute basic EPS | 371.1 | 334.8 | 351.8 | 342.2 | ||||||||||||
Dilutive effect of outstanding stock-based compensation awards (1) | 4.1 | 3.8 | 3.7 | 5 | ||||||||||||
Weighted average shares used to compute diluted EPS | 375.2 | 338.6 | 355.5 | 347.2 | ||||||||||||
Basic EPS | $ | 1.4 | $ | 1.49 | $ | 4.39 | $ | 4.29 | ||||||||
Diluted EPS | $ | 1.38 | $ | 1.47 | $ | 4.35 | $ | 4.23 | ||||||||
(1) | Stock-based compensation awards are not included in the calculation of diluted EPS if the exercise price is greater than the average market price of Aetna common shares during the period (i.e., the awards are anti-dilutive). Approximately 2.2 million stock appreciation rights were not included in the calculation of diluted EPS for the nine months ended September 30, 2013 and 11.0 million and 8.6 million stock appreciation rights were not included in the calculation of diluted EPS for the three and nine months ended September 30, 2012, respectively, because they were anti-dilutive. All stock options were included in the calculation of diluted EPS for the three and nine months ended September 30, 2013 and 2012. |
Operating_Expenses_Tables
Operating Expenses (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Operating Expenses [Abstract] | ||||||||||||||||
Operating Expenses | For the three and nine months ended September 30, 2013 and 2012, selling expenses (which include broker commissions, the variable component of our internal sales force compensation and premium taxes) and general and administrative expenses were as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Selling expenses | $ | 353.9 | $ | 272.8 | $ | 983.3 | $ | 820.5 | ||||||||
General and administrative expenses: | ||||||||||||||||
Salaries and related benefits | 1,119.40 | 780.4 | 2,914.50 | 2,336.70 | ||||||||||||
Other general and administrative expenses (1) (2) | 831.2 | 586.4 | 2,240.30 | 1,794.80 | ||||||||||||
Total general and administrative expenses | 1,950.60 | 1,366.80 | 5,154.80 | 4,131.50 | ||||||||||||
Total operating expenses | $ | 2,304.50 | $ | 1,639.60 | $ | 6,138.10 | $ | 4,952.00 | ||||||||
(1) | Includes $51.2 million and $171.4 million of transaction and integration-related costs related to the acquisition of Coventry, including advisory, legal and other professional services fees and transaction-related payments as well as integration costs incurred in the three and nine months ended September 30, 2013, respectively and $10.0 million during the three and nine months ended September 30, 2012. | |||||||||||||||
(2) | In 2008, as a result of the liquidation proceedings of Lehman Re Ltd. (“Lehman Re”), a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re. This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $42.2 million pretax |
Goodwill_and_Other_Acquired_In1
Goodwill and Other Acquired Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Goodwill | The change in goodwill for the nine months ended September 30, 2013 was as follows: | ||||||||||||||||
(Millions) | 2013 | ||||||||||||||||
Balance, beginning of the period | $ | 6,214.40 | |||||||||||||||
Goodwill acquired: | |||||||||||||||||
Coventry (1) | 3,996.50 | ||||||||||||||||
Other | (5.2 | ) | |||||||||||||||
Balance, end of the period (2) | $ | 10,205.70 | |||||||||||||||
(1) | Goodwill related to the acquisition of Coventry is considered preliminary, pending the final allocation of the applicable purchase price. | ||||||||||||||||
(2) | At September 30, 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | ||||||||||||||||
Schedule Of Intangible Assets | Other acquired intangible assets at September 30, 2013 and December 31, 2012 were comprised of the following: | ||||||||||||||||
(Millions) | Cost | Accumulated | Net Balance | Amortization | |||||||||||||
Amortization | Period (Years) | ||||||||||||||||
30-Sep-13 | |||||||||||||||||
Provider networks | $ | 1,253.20 | $ | 493.4 | $ | 759.8 | 25-Dec | (1) | |||||||||
Customer lists | 1,347.00 | 326.7 | 1,020.30 | 14-May | (1) | ||||||||||||
Value of business acquired (“VOBA”) | 149.2 | 43.7 | 105.5 | 20 | (2) | ||||||||||||
Technology | 146.6 | 43.4 | 103.2 | 10-Apr | |||||||||||||
Other | 6.7 | 1.8 | 4.9 | 15-Feb | |||||||||||||
Definite-lived trademarks | 165 | 21.8 | 143.2 | 20-Sep | |||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 3,090.00 | $ | 930.8 | $ | 2,159.20 | |||||||||||
31-Dec-12 | |||||||||||||||||
Provider networks | $ | 703.2 | $ | 458.2 | $ | 245 | 25-Dec | (1) | |||||||||
Customer lists | 657.4 | 370.2 | 287.2 | 14-May | (1) | ||||||||||||
Value of business acquired | 149.2 | 29.2 | 120 | 20 | (2) | ||||||||||||
Technology | 116.6 | 28 | 88.6 | 10-May | |||||||||||||
Other | 6.7 | 1.5 | 5.2 | 15-Feb | |||||||||||||
Definite-lived trademarks | 65 | 14.6 | 50.4 | 20-Sep | |||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 1,720.40 | $ | 901.7 | $ | 818.7 | |||||||||||
(1) | The amortization period for our provider networks and customer lists includes an assumption of renewal or extension of these arrangements. At September 30, 2013 and December 31, 2012, the periods prior to the next renewal or extension for our provider networks primarily ranged from 1 to 3 years and the period prior to the next renewal or extension for our customer lists was less than one year and two years, respectively. Any costs related to the renewal or extension of these contracts are expensed as incurred. | ||||||||||||||||
(2) | VOBA is being amortized over the expected life of the acquired contracts in proportion to estimated premium. | ||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | We estimate annual pretax amortization for other acquired intangible assets for 2013 and in each of the next five years to be as follows: | ||||||||||||||||
(Millions) | |||||||||||||||||
2013 | $ | 214.6 | |||||||||||||||
2014 | 238.4 | ||||||||||||||||
2015 | 222.5 | ||||||||||||||||
2016 | 215.5 | ||||||||||||||||
2017 | 201.1 | ||||||||||||||||
2018 | 192.9 | ||||||||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Total investments | Total investments at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
(Millions) | Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||
Debt and equity securities available for sale | $ | 1,897.80 | $ | 17,361.10 | $ | 19,258.90 | $ | 2,006.80 | $ | 16,821.00 | $ | 18,827.80 | ||||||||||||
Mortgage loans | 136.3 | 1,419.90 | 1,556.20 | 214.4 | 1,429.20 | 1,643.60 | ||||||||||||||||||
Other investments | 2.3 | 1,717.60 | 1,719.90 | 0.7 | 1,448.00 | 1,448.70 | ||||||||||||||||||
Total investments | $ | 2,036.40 | $ | 20,498.60 | $ | 22,535.00 | $ | 2,221.90 | $ | 19,698.20 | $ | 21,920.10 | ||||||||||||
Debt and equity securities available for sale | Debt and equity securities available for sale at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||
(Millions) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,424.00 | $ | 83.8 | $ | (1.0 | ) | $ | 1,506.80 | |||||||||||||||
States, municipalities and political subdivisions | 3,852.60 | 138.1 | (76.5 | ) | 3,914.20 | |||||||||||||||||||
U.S. corporate securities | 7,272.20 | 505.6 | (122.9 | ) | 7,654.90 | |||||||||||||||||||
Foreign securities | 3,114.30 | 207.4 | (54.2 | ) | 3,267.50 | |||||||||||||||||||
Residential mortgage-backed securities | 951.5 | 22.6 | (11.7 | ) | 962.4 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,321.20 | 95.6 | (4.7 | ) | (1) | 1,412.10 | ||||||||||||||||||
Other asset-backed securities | 379.8 | 17.9 | (2.2 | ) | (1) | 395.5 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 8.7 | (.4 | ) | 65.1 | |||||||||||||||||||
Total debt securities | 18,372.40 | 1,079.70 | (273.6 | ) | 19,178.50 | |||||||||||||||||||
Equity securities | 46.3 | 38.3 | (4.2 | ) | 80.4 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 18,418.70 | $ | 1,118.00 | $ | (277.8 | ) | $ | 19,258.90 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,413.40 | $ | 147.9 | $ | (1.8 | ) | $ | 1,559.50 | |||||||||||||||
States, municipalities and political subdivisions | 2,770.90 | 267.9 | (4.3 | ) | 3,034.50 | |||||||||||||||||||
U.S. corporate securities | 6,926.20 | 871.7 | (7.3 | ) | 7,790.60 | |||||||||||||||||||
Foreign securities | 2,988.10 | 391.3 | (8.8 | ) | 3,370.60 | |||||||||||||||||||
Residential mortgage-backed securities | 929.5 | 49.9 | (.4 | ) | 979 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,268.70 | 149.7 | (1.8 | ) | (1) | 1,416.60 | ||||||||||||||||||
Other asset-backed securities | 517.4 | 28.3 | (3.6 | ) | (1) | 542.1 | ||||||||||||||||||
Redeemable preferred securities | 89.6 | 12.3 | (7.3 | ) | 94.6 | |||||||||||||||||||
Total debt securities | 16,903.80 | 1,919.00 | (35.3 | ) | 18,787.50 | |||||||||||||||||||
Equity securities | 38.3 | 5.1 | (3.1 | ) | 40.3 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 16,942.10 | $ | 1,924.10 | $ | (38.4 | ) | $ | 18,827.80 | |||||||||||||||
(1) | At September 30, 2013 and December 31, 2012, we held securities for which we previously recognized $22.9 million and $25.2 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at September 30, 2013 and December 31, 2012 of $8.5 million and $9.6 million, respectively. | |||||||||||||||||||||||
(2) | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At September 30, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $320.2 million and gross unrealized capital losses of $63.3 million and, at December 31, 2012, debt and equity securities with a fair value of approximately $4.0 billion, gross unrealized capital gains of $559.4 million and gross unrealized capital losses of $19.4 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. | |||||||||||||||||||||||
Fair value of debt securities by contractual maturity | The fair value of debt securities at September 30, 2013 is shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid. | |||||||||||||||||||||||
(Millions) | Fair | |||||||||||||||||||||||
Value | ||||||||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | 731.9 | ||||||||||||||||||||||
One year through five years | 5,054.20 | |||||||||||||||||||||||
After five years through ten years | 5,643.60 | |||||||||||||||||||||||
Greater than ten years | 4,978.80 | |||||||||||||||||||||||
Residential mortgage-backed securities | 962.4 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,412.10 | |||||||||||||||||||||||
Other asset-backed securities | 395.5 | |||||||||||||||||||||||
Total | $ | 19,178.50 | ||||||||||||||||||||||
Debt and Equity Securities in an Unrealized Capital Loss Position | Summarized below are the debt and equity securities we held at September 30, 2013 and December 31, 2012 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position: | |||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total (1) | ||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 82.1 | $ | 0.6 | $ | 13.7 | $ | 0.4 | $ | 95.8 | $ | 1 | ||||||||||||
States, municipalities and political subdivisions | 1,598.90 | 74.1 | 31 | 2.4 | 1,629.90 | 76.5 | ||||||||||||||||||
U.S. corporate securities | 2,183.70 | 120.2 | 15.8 | 2.7 | 2,199.50 | 122.9 | ||||||||||||||||||
Foreign securities | 923.9 | 53 | 22.6 | 1.2 | 946.5 | 54.2 | ||||||||||||||||||
Residential mortgage-backed securities | 333.6 | 9.5 | 27.9 | 2.2 | 361.5 | 11.7 | ||||||||||||||||||
Commercial mortgage-backed securities | 153.6 | 4.4 | 19.3 | 0.3 | 172.9 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 92.5 | 2.2 | 5.5 | — | 98 | 2.2 | ||||||||||||||||||
Redeemable preferred securities | 10.1 | 0.4 | — | — | 10.1 | 0.4 | ||||||||||||||||||
Total debt securities | 5,378.40 | 264.4 | 135.8 | 9.2 | 5,514.20 | 273.6 | ||||||||||||||||||
Equity securities | 10.8 | 1.3 | 5.2 | 2.9 | 16 | 4.2 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 5,389.20 | $ | 265.7 | $ | 141 | $ | 12.1 | $ | 5,530.20 | $ | 277.8 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 138.3 | $ | 1.4 | $ | 15.1 | $ | 0.4 | $ | 153.4 | $ | 1.8 | ||||||||||||
States, municipalities and political subdivisions | 264.6 | 3 | 28.5 | 1.3 | 293.1 | 4.3 | ||||||||||||||||||
U.S. corporate securities | 598.4 | 6.1 | 10.8 | 1.2 | 609.2 | 7.3 | ||||||||||||||||||
Foreign securities | 270.4 | 1.4 | 35.6 | 7.4 | 306 | 8.8 | ||||||||||||||||||
Residential mortgage-backed securities | 51.7 | 0.3 | 2.1 | 0.1 | 53.8 | 0.4 | ||||||||||||||||||
Commercial mortgage-backed securities | 6.3 | 0.1 | 46.1 | 1.7 | 52.4 | 1.8 | ||||||||||||||||||
Other asset-backed securities | 44.8 | 0.1 | 1.5 | 3.5 | 46.3 | 3.6 | ||||||||||||||||||
Redeemable preferred securities | 12.2 | 0.2 | 10 | 7.1 | 22.2 | 7.3 | ||||||||||||||||||
Total debt securities | 1,386.70 | 12.6 | 149.7 | 22.7 | 1,536.40 | 35.3 | ||||||||||||||||||
Equity securities | 16.4 | 2.1 | 13 | 1 | 29.4 | 3.1 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 1,403.10 | $ | 14.7 | $ | 162.7 | $ | 23.7 | $ | 1,565.80 | $ | 38.4 | ||||||||||||
(1) | At September 30, 2013 and December 31, 2012, debt and equity securities in an unrealized capital loss position of $63.3 million and $19.4 million, respectively, and with related fair value of $922.4 million and $225.2 million, respectively, related to experience-rated and discontinued products. | |||||||||||||||||||||||
Maturity dates for debt securities | The maturity dates for debt securities in an unrealized capital loss position at September 30, 2013 were as follows: | |||||||||||||||||||||||
Supporting experience-rated | Supporting remaining | Total | ||||||||||||||||||||||
and discontinued products | products | |||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | $ | 23.9 | $ | 0.2 | $ | 23.9 | $ | 0.2 | ||||||||||||
One year through five years | 72.4 | 1.5 | 898.4 | 13.8 | 970.8 | 15.3 | ||||||||||||||||||
After five years through ten years | 383 | 18.8 | 1,843.20 | 85.5 | 2,226.20 | 104.3 | ||||||||||||||||||
Greater than ten years | 421.6 | 38.2 | 1,239.30 | 97 | 1,660.90 | 135.2 | ||||||||||||||||||
Residential mortgage-backed securities | 6.6 | 0.1 | 354.9 | 11.6 | 361.5 | 11.7 | ||||||||||||||||||
Commercial mortgage-backed securities | 8.7 | 0.4 | 164.2 | 4.3 | 172.9 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 14.1 | 0.3 | 83.9 | 1.9 | 98 | 2.2 | ||||||||||||||||||
Total | $ | 906.4 | $ | 59.3 | $ | 4,607.80 | $ | 214.3 | $ | 5,514.20 | $ | 273.6 | ||||||||||||
Net realized capital gains (losses) | Net realized capital (losses) gains for the three and nine months ended September 30, 2013 and 2012, excluding amounts related to experience-rated contract holders and discontinued products, were as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
OTTI losses on debt securities | $ | (2.4 | ) | $ | (1.8 | ) | $ | (29.6 | ) | $ | (10.4 | ) | ||||||||||||
Portion of OTTI losses on debt securities recognized | — | — | — | 0.1 | ||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||
Net OTTI losses on debt securities recognized in earnings | (2.4 | ) | (1.8 | ) | (29.6 | ) | (10.3 | ) | ||||||||||||||||
Net realized capital (losses) gains, excluding OTTI losses on debt securities | (10.3 | ) | 19.1 | 17.4 | 87.9 | |||||||||||||||||||
Net realized capital (losses) gains | $ | (12.7 | ) | $ | 17.3 | $ | (12.2 | ) | $ | 77.6 | ||||||||||||||
Proceeds and related gross realized capital gains and losses from the sale of debt securities | Excluding amounts related to experience-rated and discontinued products, proceeds from the sale of debt securities and the related gross realized capital gains and losses for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Proceeds on sales | $ | 1,434.00 | $ | 1,323.30 | $ | 5,216.50 | $ | 4,138.60 | ||||||||||||||||
Gross realized capital gains | 25 | 30.8 | 83.9 | 135.7 | ||||||||||||||||||||
Gross realized capital losses | 34.9 | 1.9 | 78.3 | 13.2 | ||||||||||||||||||||
Activity in mortgage loan portfolio | During the three and nine months ended September 30, 2013 and 2012 we had the following activity in our mortgage loan portfolio: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
New mortgage loans | $ | 62.8 | $ | 71.8 | $ | 126.4 | $ | 132.3 | ||||||||||||||||
Mortgage loans fully repaid | 49.1 | 4.5 | 168.7 | 41.8 | ||||||||||||||||||||
Mortgage loans foreclosed | — | — | — | 16.7 | ||||||||||||||||||||
Mortgage loan internal credit rating | Based upon our most recent assessments at September 30, 2013 and December 31, 2012, our mortgage loans were given the following credit quality indicators: | |||||||||||||||||||||||
(In Millions, except credit ratings indicator) | September 30, | December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
1 | $ | 118.2 | $ | 94 | ||||||||||||||||||||
2 to 4 | 1,346.50 | 1,451.10 | ||||||||||||||||||||||
5 | 32.5 | 60.2 | ||||||||||||||||||||||
6 and 7 | 59 | 38.3 | ||||||||||||||||||||||
Total | $ | 1,556.20 | $ | 1,643.60 | ||||||||||||||||||||
Net Investment Income | Sources of net investment income for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Debt securities | $ | 193.9 | $ | 186 | $ | 573.9 | $ | 574.7 | ||||||||||||||||
Mortgage loans | 27.2 | 25.3 | 76.1 | 90.8 | ||||||||||||||||||||
Other investments | (2.2 | ) | 13.1 | 46.8 | 39.2 | |||||||||||||||||||
Gross investment income | 218.9 | 224.4 | 696.8 | 704.7 | ||||||||||||||||||||
Less: investment expenses | (8.9 | ) | (8.2 | ) | (26.7 | ) | (23.1 | ) | ||||||||||||||||
Net investment income (1) | $ | 210 | $ | 216.2 | $ | 670.1 | $ | 681.6 | ||||||||||||||||
(1) | Net investment income includes $61.5 million and $210.3 million for the three and nine months ended September 30, 2013, respectively, and $79.8 million and $238.6 million for the three and nine months ended September 30, 2012, respectively, related to investments supporting our experience-rated and discontinued products. |
Other_Comprehensive_Loss_Incom1
Other Comprehensive (Loss) Income (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Shareholders’ equity included the following activity in accumulated other comprehensive loss for the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||
Net Unrealized Gains (Losses) | Pension and OPEB Plans | Total | |||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Securities | Foreign | Comprehensive | |||||||||||||||||||||||||||
Currency | (Loss) Income | ||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||
(Millions) | Previously | All Other | Derivatives | Unrecognized | Unrecognized | ||||||||||||||||||||||||
Impaired (1) | Net Actuarial | Prior Service | |||||||||||||||||||||||||||
Losses | Cost | ||||||||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 57.3 | $ | 825.2 | $ | (29.5 | ) | $ | (1,909.4 | ) | $ | 23 | $ | (1,033.4 | ) | ||||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||||||||||
before reclassifications | (40.8 | ) | (481.1 | ) | 22.9 | — | — | (499.0 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||||||||||
other comprehensive income | 20.6 | (2 | ) | 17.2 | (2 | ) | 2.6 | (3 | ) | 37.9 | (4 | ) | (2.0 | ) | (4 | ) | 76.3 | ||||||||||||
Other comprehensive (loss) income | (20.2 | ) | (463.9 | ) | 25.5 | 37.9 | (2.0 | ) | (422.7 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 37.1 | $ | 361.3 | $ | (4.0 | ) | $ | (1,871.5 | ) | $ | 21 | $ | (1,456.1 | ) | ||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 58.2 | $ | 595.2 | $ | (33.7 | ) | $ | (1,834.6 | ) | $ | 25.7 | $ | (1,189.2 | ) | ||||||||||||||
Other comprehensive (loss) income | 2.4 | 258.5 | 5 | 36.4 | (2.0 | ) | 300.3 | ||||||||||||||||||||||
Balance at September 30, 2012 | $ | 60.6 | $ | 853.7 | $ | (28.7 | ) | $ | (1,798.2 | ) | $ | 23.7 | $ | (888.9 | ) | ||||||||||||||
(1) | Represents unrealized losses on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. | ||||||||||||||||||||||||||||
(2) | Reclassifications out of accumulated other comprehensive income for previously impaired debt securities and all other securities are reflected in net realized capital gains (losses) within the Consolidated Statement of Income. | ||||||||||||||||||||||||||||
(3) | Reclassifications out of accumulated other comprehensive income for foreign currency gains (losses) and derivatives are reflected in net realized capital gains (losses) within the Consolidated Statement of Income, except for derivatives related to interest rate swaps which are reflected in interest expense and were not material during the nine months ended September 30, 2013. | ||||||||||||||||||||||||||||
(4) | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statement of Income (Refer to Note 10 of Condensed Notes to Consolidated Financial Statements beginning on page 27 for additional information). | ||||||||||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value of Financial Assets | Financial assets and liabilities measured at fair value on a recurring basis in our balance sheets at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,272.90 | $ | 233.9 | $ | — | $ | 1,506.80 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 3,912.90 | 1.3 | 3,914.20 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,618.40 | 36.5 | 7,654.90 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,226.00 | 41.5 | 3,267.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 962.4 | — | 962.4 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,404.70 | 7.4 | 1,412.10 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 362.7 | 32.8 | 395.5 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 61 | 4.1 | 65.1 | ||||||||||||||||||||||||||||
Total debt securities | 1,272.90 | 17,782.00 | 123.6 | 19,178.50 | ||||||||||||||||||||||||||||
Equity securities | 17.8 | 0.3 | 62.3 | 80.4 | ||||||||||||||||||||||||||||
Derivatives | — | 41.8 | — | 41.8 | ||||||||||||||||||||||||||||
Total | $ | 1,290.70 | $ | 17,824.10 | $ | 185.9 | $ | 19,300.70 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 2.2 | $ | — | $ | 2.2 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,311.40 | $ | 248.1 | $ | — | $ | 1,559.50 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 3,031.80 | 2.7 | 3,034.50 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,736.00 | 54.6 | 7,790.60 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,317.90 | 52.7 | 3,370.60 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 979 | — | 979 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,396.50 | 20.1 | 1,416.60 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 512.6 | 29.5 | 542.1 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 80.5 | 14.1 | 94.6 | ||||||||||||||||||||||||||||
Total debt securities | 1,311.40 | 17,302.40 | 173.7 | 18,787.50 | ||||||||||||||||||||||||||||
Equity securities | 18.2 | — | 22.1 | 40.3 | ||||||||||||||||||||||||||||
Derivatives | — | 8.9 | — | 8.9 | ||||||||||||||||||||||||||||
Total | $ | 1,329.60 | $ | 17,311.30 | $ | 195.8 | $ | 18,836.70 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 0.3 | $ | — | $ | 0.3 | ||||||||||||||||||||||||
Gross Transfers into (out of) Level 3 | The gross transfers into (out of) Level 3 during the three and nine months ended September 30, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Gross transfers into Level 3 | $ | 3.8 | $ | — | $ | 3.8 | $ | 1.8 | ||||||||||||||||||||||||
Gross transfers out of Level 3 | (21.7 | ) | (7.4 | ) | (48.9 | ) | (30.1 | ) | ||||||||||||||||||||||||
Net transfers (out of) Level 3 | $ | (17.9 | ) | $ | (7.4 | ) | $ | (45.1 | ) | $ | (28.3 | ) | ||||||||||||||||||||
Carrying Value and Estimated Fair Value of Certain Financial Instruments | The carrying value and estimated fair value classified by level of fair value hierarchy for certain of our financial instruments at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,556.20 | $ | — | $ | — | $ | 1,598.60 | $ | 1,598.60 | ||||||||||||||||||||||
Bank loans | 142.2 | — | 130.1 | 10.5 | 140.6 | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 9.2 | — | — | 9.2 | 9.2 | |||||||||||||||||||||||||||
Without a fixed maturity | 578.5 | — | — | 547.4 | 547.4 | |||||||||||||||||||||||||||
Long-term debt | 8,266.30 | — | 8,716.00 | — | 8,716.00 | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,643.60 | $ | — | $ | — | $ | 1,698.60 | $ | 1,698.60 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 18.5 | — | — | 18.5 | 18.5 | |||||||||||||||||||||||||||
Without a fixed maturity | 590.2 | — | — | 611.1 | 611.1 | |||||||||||||||||||||||||||
Long-term debt | 6,481.30 | — | 7,408.70 | — | 7,408.70 | |||||||||||||||||||||||||||
Separate Account Financial Assets | Separate Accounts financial assets at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Debt securities | $ | 685.7 | $ | 2,163.90 | $ | 0.6 | $ | 2,850.20 | $ | 721.7 | $ | 2,343.90 | $ | 0.4 | $ | 3,066.00 | ||||||||||||||||
Equity securities | 209.4 | 1.6 | — | 211 | 194.9 | 1 | — | 195.9 | ||||||||||||||||||||||||
Derivatives | — | 0.2 | — | 0.2 | — | (1.8 | ) | — | (1.8 | ) | ||||||||||||||||||||||
Common/collective trusts | — | 692.7 | — | 692.7 | — | 749 | — | 749 | ||||||||||||||||||||||||
Total (1) | $ | 895.1 | $ | 2,858.40 | $ | 0.6 | $ | 3,754.10 | $ | 916.6 | $ | 3,092.10 | $ | 0.4 | $ | 4,009.10 | ||||||||||||||||
(1) | Excludes $179.5 million and $238.0 million of cash and cash equivalents and other receivables at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||||
Balance Sheet Offsetting Assets | Financial assets, including derivative assets, subject to offsetting and enforceable master netting arrangements as of September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 41.8 | $ | — | $ | (40.4 | ) | $ | 1.4 | |||||||||||||||||||||||
Total | $ | 41.8 | $ | — | $ | (40.4 | ) | $ | 1.4 | |||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 9.4 | $ | 12.5 | $ | (7.5 | ) | $ | 14.4 | |||||||||||||||||||||||
Total | $ | 9.4 | $ | 12.5 | $ | (7.5 | ) | $ | 14.4 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2013 or December 31, 2012. | ||||||||||||||||||||||||||||||||
Balance Sheet Offsetting Liabilities | Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Paid | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 6.1 | $ | (10.7 | ) | $ | (.9 | ) | $ | (5.5 | ) | |||||||||||||||||||||
Securities lending | 550.2 | (550.2 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 556.3 | $ | (560.9 | ) | $ | (.9 | ) | $ | (5.5 | ) | |||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||||||||||||||||||
Securities lending | 47.1 | (47.1 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 47.4 | $ | (47.1 | ) | $ | — | $ | 0.3 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2013 or December 31, 2012. |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | Components of the net periodic benefit (income) cost of our defined benefit pension plans and other postretirement benefit (“OPEB”) plans for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.1 | ||||||||||||||||
Amortization of prior service cost | (.1 | ) | (.1 | ) | (.3 | ) | (.3 | ) | (1.0 | ) | (.9 | ) | (2.7 | ) | (2.7 | ) | ||||||||||||||||
Interest cost | 67.9 | 74.6 | 203.6 | 223.8 | 2.8 | 3.6 | 8.3 | 10.8 | ||||||||||||||||||||||||
Expected return on plan assets | (99.1 | ) | (96.8 | ) | (297.3 | ) | (290.5 | ) | (.6 | ) | (.6 | ) | (1.8 | ) | (2.0 | ) | ||||||||||||||||
Recognized net actuarial losses | 19 | 17.5 | 56.6 | 52.7 | 0.6 | 1.1 | 1.7 | 3.3 | ||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | (12.3 | ) | $ | (4.8 | ) | $ | (37.4 | ) | $ | (14.3 | ) | $ | 1.8 | $ | 3.2 | $ | 5.5 | $ | 9.5 | ||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Carrying Value of Long-Term Debt | The carrying value of our long-term debt at September 30, 2013 and December 31, 2012 was as follows: | |||||||
(Millions) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
Senior notes, 6.3%, due 2014 | $ | 392.2 | $ | — | ||||
Senior notes, 6.125%, due 2015 | 243.4 | — | ||||||
Senior notes, 6.0%, due 2016 | 748.8 | 748.5 | ||||||
Senior notes, 5.95%, due 2017 | 438.2 | — | ||||||
Senior notes, 1.75%, due 2017 | 248.8 | 248.6 | ||||||
Senior notes, 1.5%, due 2017 | 498 | 497.7 | ||||||
Senior notes, 6.5%, due 2018 | 494.9 | 494.8 | ||||||
Senior notes, 3.95%, due 2020 | 744.1 | 743.4 | ||||||
Senior notes, 5.45%, due 2021 | 705.8 | — | ||||||
Senior notes, 4.125%, due 2021 | 494.7 | 494.1 | ||||||
Senior notes, 2.75%, due 2022 | 984.6 | 983.4 | ||||||
Senior notes, 6.625%, due 2036 | 769.8 | 769.7 | ||||||
Senior notes, 6.75%, due 2037 | 530.6 | 529.5 | ||||||
Senior notes, 4.5%, due 2042 | 479.9 | 479.3 | ||||||
Senior notes, 4.125%, due 2042 | 492.5 | 492.3 | ||||||
Total long-term debt | 8,266.30 | 6,481.30 | ||||||
Less current portion of long-term debt (1) | 392.2 | — | ||||||
Total long-term debt, less current portion | $ | 7,874.10 | $ | 6,481.30 | ||||
(1) At September 30, 2013, our 6.3% senior notes due August 2014 are classified as current in the accompanying consolidated balance sheet. |
Capital_Stock_Tables
Capital Stock (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Class of Stock Disclosures [Abstract] | |||||||||||
Dividends declared | During the nine months ended September 30, 2013 our Board declared the following cash dividends: | ||||||||||
Date Declared | Dividend Amount | Stockholders of | Date Paid/ | Total Dividends | |||||||
Per Share | Record Date | To be Paid | (Millions) | ||||||||
February 19, 2013 | $ | 0.2 | April 11, 2013 | April 26, 2013 | $ | 65.2 | |||||
May 17, 2013 | 0.2 | July 11, 2013 | July 26, 2013 | 74.4 | |||||||
September 27, 2013 | 0.2 | October 10, 2013 | October 25, 2013 | 73.6 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Summarized financial information of segments | Summarized financial information of our segments for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||
(Millions) | Health | Group | Large Case | Corporate | Total Company | |||||||||||||||
Care | Insurance | Pensions (2) | Financing | |||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers | $ | 12,228.70 | $ | 510.7 | $ | 98.9 | $ | — | $ | 12,838.30 | ||||||||||
Operating earnings (loss) (1) | 585.8 | 19.7 | 6.2 | (49.9 | ) | 561.8 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Revenue from external customers | $ | 8,172.70 | $ | 465.8 | $ | 45.3 | $ | — | $ | 8,683.80 | ||||||||||
Operating earnings (loss) (1) | 531.8 | 29.3 | 3.7 | (41.6 | ) | 523.2 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers | $ | 31,743.00 | $ | 1,536.80 | $ | 174.2 | $ | — | $ | 33,454.00 | ||||||||||
Operating earnings (loss) (1) | 1,637.80 | 80.8 | 16.2 | (128.6 | ) | 1,606.20 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Revenue from external customers | $ | 24,398.40 | $ | 1,378.10 | $ | 134.5 | $ | — | $ | 25,911.00 | ||||||||||
Operating earnings (loss) (1) | 1,444.20 | 116.2 | 13.4 | (121.2 | ) | 1,452.60 | ||||||||||||||
(1) | Operating earnings (loss) excludes net realized capital gains or losses and the other items described in the reconciliation below. | |||||||||||||||||||
(2) | In the third quarter of 2013, an existing group annuity contract converted from a participating to a non-participating contract. Upon conversion, we recorded $54.1 million of non-cash group annuity conversion premium for this contract and a corresponding $54.1 million non-cash benefit expense on group annuity conversion for this contract. | |||||||||||||||||||
Reconciliation of Operating Earnings to Net Income | A reconciliation of operating earnings (1) to net income attributable to Aetna for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(Millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Operating earnings (1) | $ | 561.8 | $ | 523.2 | $ | 1,606.20 | $ | 1,452.60 | ||||||||||||
Transaction and integration-related costs, net of tax | (34.6 | ) | (12.5 | ) | (140.6 | ) | (12.5 | ) | ||||||||||||
Reduction of reserve for anticipated future losses on discontinued products, net of tax | — | — | 55.9 | — | ||||||||||||||||
Reversal of allowance and gain on sale of reinsurance recoverable, net of tax | — | — | 32.1 | — | ||||||||||||||||
Loss on early extinguishment of long-term debt, net of tax | — | (23.0 | ) | — | (23.0 | ) | ||||||||||||||
Net realized capital (losses) gains, net of tax | (8.6 | ) | 11.5 | (8.9 | ) | 50.7 | ||||||||||||||
Net income attributable to Aetna | $ | 518.6 | $ | 499.2 | $ | 1,544.70 | $ | 1,467.80 | ||||||||||||
(1) | In addition to net realized capital gains (losses), the following items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance: | |||||||||||||||||||
• | We incurred transaction and integration-related costs related to the acquisition of Coventry of $34.6 million ($51.2 million pretax) and $140.6 million ($189.6 million pretax) during the three and nine months ended September 30, 2013, respectively, and $12.5 million ($13.8 million pretax) during the three and nine months ended September 30, 2012. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Effective Date, the negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Effective Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings. | |||||||||||||||||||
• | We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 17 beginning on page 36 for additional information on the reduction of the reserve for anticipated future losses on discontinued products. | |||||||||||||||||||
• | In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue. | |||||||||||||||||||
• | In the third quarter of 2012, we incurred a loss on the early extinguishment of long-term debt of $23.0 million ($35.4 million pretax) related to repurchases of certain of our outstanding senior notes. |
Discontinued_Products_Tables
Discontinued Products (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Discontinued Products [Abstract] | ||||||||
Activity in the Reserve for Anticipated Future Losses | The activity in the reserve for anticipated future losses on discontinued products for the nine months ended September 30, 2013 and 2012 (pretax) was as follows: | |||||||
(Millions) | 2013 | 2012 | ||||||
Reserve, beginning of period | $ | 978.5 | $ | 896.3 | ||||
Operating loss | (8.5 | ) | (5.1 | ) | ||||
Net realized capital gains | 73.7 | 55.2 | ||||||
Reserve reduction | (86.0 | ) | — | |||||
Reserve, end of period | $ | 957.7 | $ | 946.4 | ||||
Assets and Liabilities Supporting Discontinued Products | Assets and liabilities supporting discontinued products at September 30, 2013 and December 31, 2012 were as | |||||||
follows: (1) | ||||||||
(Millions) | 2013 | 2012 | ||||||
Assets: | ||||||||
Debt and equity securities available for sale | $ | 2,326.90 | $ | 2,515.30 | ||||
Mortgage loans | 407.2 | 448.6 | ||||||
Other investments | 690.9 | 711.6 | ||||||
Total investments | 3,425.00 | 3,675.50 | ||||||
Other assets | 101 | 79.2 | ||||||
Collateral received under securities loan agreements | 151 | 3.8 | ||||||
Current and deferred income taxes | 25.2 | 19.3 | ||||||
Receivable from continuing products (2) | 525.1 | 556 | ||||||
Total assets | $ | 4,227.30 | $ | 4,333.80 | ||||
Liabilities: | ||||||||
Future policy benefits | $ | 2,795.30 | $ | 2,857.60 | ||||
Policyholders' funds | — | 6.6 | ||||||
Reserve for anticipated future losses on discontinued products | 957.7 | 978.5 | ||||||
Collateral payable under securities loan agreements | 151.1 | 3.8 | ||||||
Other liabilities (3) | 323.2 | 487.3 | ||||||
Total liabilities | $ | 4,227.30 | $ | 4,333.80 | ||||
(1) | Assets supporting the discontinued products are distinguished from assets supporting continuing products. | |||||||
(2) | At the time of discontinuance, a receivable from Large Case Pensions' continuing products was established on the discontinued products balance sheet. This receivable represented the net present value of anticipated cash shortfalls in the discontinued products, which will be funded from continuing products. Interest on the receivable is accrued at the discount rate that was used to calculate the reserve. The offsetting payable, on which interest is similarly accrued, is reflected in continuing products. Interest on the payable generally offsets investment income on the assets available to fund the shortfall. These amounts are eliminated in consolidation. | |||||||
(3) | Net unrealized capital gains on the available-for-sale debt securities are included in other liabilities and are not reflected in consolidated shareholders’ equity. |
Organization_Organization_Deta
Organization Organization (Details) (USD $) | 7-May-13 |
In Billions, unless otherwise specified | |
Organization [Line Items] | |
Total purchase price for an acquisition | $8.70 |
Completed_Acquisition_Complete1
Completed Acquisition, Completed Disposition (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 7-May-13 | Apr. 30, 2013 | Dec. 31, 2012 | Aug. 19, 2012 | |||
Business Acquisition [Line Items] | ||||||||||
Share Price | $58.69 | |||||||||
Total purchase price for an acquisition | $8,700,000,000 | |||||||||
Goodwill | 10,205,700,000 | [1] | 10,205,700,000 | [1] | 6,214,400,000 | |||||
Transaction and integration-related costs, after-tax | 34,600,000 | 12,500,000 | 140,600,000 | 12,500,000 | ||||||
Transaction and integration-related costs, pretax | 51,200,000 | 13,800,000 | 189,600,000 | |||||||
Number of shares not automatically vested | 500,000 | |||||||||
Common Stock, Shares, Issued | 367,500,000 | 367,500,000 | 133,700,000 | 327,600,000 | ||||||
Other consideration per share | 22.8 | |||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 4,900,000 | |||||||||
In-the-money consideration per share | 15.94 | |||||||||
Acquired Finite-lived Intangible Asset, Amount | 1,490,000,000 | |||||||||
Long-term debt acquired | 1,803,800,000 | |||||||||
Cash to be Received by Shareholders Upon Acquisition, per share | 27.3 | 27.3 | ||||||||
Exchange ratio used in calculation of merger consideration | 0.3885 | |||||||||
Total number of shares issued in a business acquisition | 52,200,000 | |||||||||
Total value of equity consideration transferred | 3,100,000,000 | |||||||||
Cash consideration transferred | 3,800,000,000 | |||||||||
Net restricted shares outstanding | 700,000 | |||||||||
Restricted shares outstanding | 1,100,000 | |||||||||
Employee tax withholdings | -400,000 | |||||||||
Performance share units and restricted stock units | 1,600,000 | |||||||||
Equity cash consideration | 49.8 | |||||||||
Other consideration transferred | 6,900,000 | [2] | ||||||||
Debt fair value adjustment | 216,600,000 | |||||||||
Tax deductible goodwill | 267,000,000 | |||||||||
Fair value of awards attributed to pre-merger services | 6,900,000 | |||||||||
Fair value attributed to post-merger services | 19,000,000 | |||||||||
Cash compensation pursuant to employee agreements | 6,500,000 | |||||||||
Total consideration transferred | 6,896,100,000 | |||||||||
Cash per share and closing price | 57.93 | |||||||||
Customer Lists [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Asset, Amount | 810,000,000 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||||||
Provider networks [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Asset, Amount | 550,000,000 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 17 years | |||||||||
Trademarks [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Asset, Amount | 100,000,000 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||||||
Developed Technology Rights [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired Finite-lived Intangible Asset, Amount | 30,000,000 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||||||||
Premiums Receivable [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gross Contractual Receivable Amount | 485,500,000 | |||||||||
Allowance for Uncollectible Premiums Receivable [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Allowance for Doubtful Accounts Receivable | 12,500,000 | |||||||||
Common Stock [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration transferred | 3,648,700,000 | |||||||||
Value of common shares issued | 3,047,400,000 | |||||||||
Stock Options [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration transferred | 78,100,000 | |||||||||
Performance share units and restricted stock units [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration transferred | 58,500,000 | |||||||||
Restricted Stock [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration transferred | 20,500,000 | |||||||||
Cash paid for employee tax withholdings | 18,800,000 | |||||||||
Value of common shares issued | $17,200,000 | |||||||||
[1] | At September 30, 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | |||||||||
[2] | Certain of Coventry's named executive officers received payments pursuant to employment agreements entered into prior to the Coventry acquisition. The total compensation paid in cash pursuant to such agreements in connection with the Merger was $6.5 million. Other consideration transferred also includes the portion of the fair value of the Rollover Units that was attributed to pre-Merger services. The fair value attributable to post-Merger services will be recorded as selling, general and administrative expense in Aetna's post-Merger financial statements. |
Completed_Acquisition_Complete2
Completed Acquisition; Completed Disposition Pro Forma Financials (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pro Forma Financial Information [Abstract] | ||||
Revenue of Acquiree since Acquisition Date, Actual | $3,531.30 | $5,599.80 | ||
Earnings or Loss of Acquiree since Acquisition Date, Actual | 112.8 | 169 | ||
Pro Forma Revenue | 12,253.30 | 38,906.60 | 37,031.80 | |
Pro Forma Net Income (Loss) | $600 | $1,775.30 | $1,810.10 | |
Pro Forma Earnings Per Share, Basic | $1.55 | $4.73 | $4.59 | |
Pro Forma Earnings Per Share, Diluted | $1.54 | $4.68 | $4.53 |
Completed_Acquisition_Complete3
Completed Acquisition; Completed Disposition Fair Value of Major Classes of Assets and Liabilities (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | 7-May-13 | ||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $2,195.60 | |||
Investments | 2,156.40 | |||
Premiums and other receivables, net | 1,141.10 | |||
Intangible assets acquired | 1,490 | |||
Property and equipment | 174.8 | |||
Other assets | 97.5 | |||
Total assets acquired | 7,255.40 | |||
Health care costs payable | 1,440.10 | |||
Long-term debt | 1,803.80 | |||
Net deferred tax liabilities | 257 | [1] | ||
Other liabilities | 854.9 | |||
Total liabilities assumed | 4,355.80 | |||
Total identifiable net assets | 2,899.60 | |||
Total consideration transferred | 6,896.10 | |||
Deferred tax liabilities on intangible assets | 521.5 | |||
Deferred tax asset on debt fair market value adjustment | 75.8 | |||
Coventry [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired | 3,996.50 | [2] | ||
Allowance for Doubtful Accounts [Member] | ||||
Business Acquisition [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | 14.1 | |||
Allowance for Uncollectible Premiums Receivable [Member] | ||||
Business Acquisition [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | 12.5 | |||
Premiums Receivable [Member] | ||||
Business Acquisition [Line Items] | ||||
Gross Contractual Receivable Amount | 485.5 | |||
Other Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Gross Contractual Receivable Amount | $682.20 | |||
[1] | Includes $521.5 million of deferred tax liabilities on identifiable intangible assets acquired and $75.8 million of deferred tax assets on the fair value adjustment to Coventry's outstanding debt. | |||
[2] | Goodwill related to the acquisition of Coventry is considered preliminary, pending the final allocation of the applicable purchase price. |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Net income | $518.60 | $499.20 | $1,544.70 | $1,467.80 | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||
Weighted average shares used to compute basic EPS (in shares) | 371.1 | 334.8 | 351.8 | 342.2 | ||||
Dilutive effect of outstanding stock-based compensation awards (in shares) | 4.1 | [1] | 3.8 | [1] | 3.7 | [1] | 5 | [1] |
Weighted average shares used to compute diluted EPS (in shares) | 375.2 | 338.6 | 355.5 | 347.2 | ||||
Basic EPS (in dollars per share) | $1.40 | $1.49 | $4.39 | $4.29 | ||||
Diluted EPS (in dollars per share) | $1.38 | $1.47 | $4.35 | $4.23 | ||||
Stock Appreciation Rights [Member] | ||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 11 | 2.2 | 8.6 | |||||
[1] | Stock-based compensation awards are not included in the calculation of diluted EPS if the exercise price is greater than the average market price of Aetna common shares during the period (i.e., the awards are anti-dilutive). Approximately 2.2 million stock appreciation rights were not included in the calculation of diluted EPS for the nine months ended SeptemberB 30, 2013 and 11.0 million and 8.6 million stock appreciation rights were not included in the calculation of diluted EPS for the three and nine months ended SeptemberB 30, 2012, respectively, because they were anti-dilutive. All stock options were included in the calculation of diluted EPS for the three and nine months ended SeptemberB 30, 2013 and 2012. |
Operating_Expenses_Details
Operating Expenses (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
General and administrative transaction and integration-related costs | $51.20 | $171.40 | $10 | ||||||
Selling expenses | 353.9 | 272.8 | 983.3 | 820.5 | |||||
General and administrative expenses: | |||||||||
Salaries and related benefits | 1,119.40 | 780.4 | 2,914.50 | 2,336.70 | |||||
Other general and administrative expenses | 831.2 | [1],[2] | 586.4 | [1],[2] | 2,240.30 | [1],[2] | 1,794.80 | [1],[2] | |
Total general and administrative expenses | 1,950.60 | 1,366.80 | 5,154.80 | 4,131.50 | |||||
Total operating expenses | 2,304.50 | 1,639.60 | 6,138.10 | 4,952 | |||||
Reversal of allowance reinsurance recoverable, pretax | $42.20 | ||||||||
[1] | Includes $51.2 million and $171.4 million of transaction and integration-related costs related to the acquisition of Coventry, including advisory, legal and other professional services fees and transaction-related payments as well as integration costs incurred in the three and nine months ended September 30, 2013, respectively and $10.0 million during the three and nine months ended September 30, 2012. | ||||||||
[2] | In 2008, as a result of the liquidation proceedings of Lehman Re Ltd. (bLehman Reb), a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re. This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $42.2 million pretax |
Goodwill_and_Other_Acquired_In2
Goodwill and Other Acquired Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||||
In Millions, unless otherwise specified | Group Insurance [Member] | Coventry [Member] | Goodwill [Member] | Trademarks Indefinite Lived [Member] | Trademarks Indefinite Lived [Member] | Customer Lists [Member] | Customer Lists [Member] | Value Of Business Acquired [Member] | Value Of Business Acquired [Member] | Trademarks Definite Lived [Member] | Trademarks Definite Lived [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Provider networks [Member] | Provider networks [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||||||||||||
Customer Lists [Member] | Customer Lists [Member] | Trademarks Definite Lived [Member] | Trademarks Definite Lived [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Provider networks [Member] | Provider networks [Member] | Customer Lists [Member] | Customer Lists [Member] | Value Of Business Acquired [Member] | Value Of Business Acquired [Member] | Trademarks Definite Lived [Member] | Trademarks Definite Lived [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | Provider networks [Member] | Provider networks [Member] | ||||||||||||||||||||||||||||||||
Goodwill [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $10,205.70 | [1] | $6,214.40 | $113 | |||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, Acquired During Period | 3,996.50 | [2] | -5.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Gross | 1,347 | 657.4 | 149.2 | 149.2 | 165 | 65 | 146.6 | 116.6 | 6.7 | 6.7 | 1,253.20 | 703.2 | |||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | 930.8 | 901.7 | 326.7 | 370.2 | 43.7 | 29.2 | 21.8 | 14.6 | 43.4 | 28 | 1.8 | 1.5 | 493.4 | 458.2 | |||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net | 1,020.30 | 287.2 | 105.5 | 120 | 143.2 | 50.4 | 103.2 | 88.6 | 4.9 | 5.2 | 759.8 | 245 | |||||||||||||||||||||||||||||||||||||||||
Other Acquired Intangible Assets Gross | 3,090 | 1,720.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other acquired intangible assets, net | 2,159.20 | 818.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-Lived Trademarks | 22.3 | 22.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived intangible asset, accumulated amortization | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 214.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 238.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 222.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 215.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 201.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Six | $192.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Useful Life | 5 years | [3] | 5 years | [3] | 9 years | 9 years | 4 years | 5 years | 2 years | 2 years | 12 years | [3] | 12 years | [3] | 14 years | [3] | 14 years | [3] | 20 years | [4] | 20 years | [4] | 20 years | 20 years | 10 years | 10 years | 15 years | 15 years | 25 years | [3] | 25 years | [3] | |||||||||||||||||||||
[1] | At September 30, 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Goodwill related to the acquisition of Coventry is considered preliminary, pending the final allocation of the applicable purchase price. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | The amortization period for our provider networks and customer lists includes an assumption of renewal or extension of these arrangements. At September 30, 2013 and December 31, 2012, the periods prior to the next renewal or extension for our provider networks primarily ranged from 1 to 3 years and the period prior to the next renewal or extension for our customer lists was less than one year and two years, respectively. Any costs related to the renewal or extension of these contracts are expensed as incurred. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | VOBA is being amortized over the expected life of the acquired contracts in proportion to estimated premium. |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2013 | 7-May-13 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Total Investments [Line Items] | |||
Investments acquired | $2,156.40 | ||
Current | 2,036.40 | 2,221.90 | |
Long-term investments | 20,498.60 | 19,698.20 | |
Total investments | 22,535 | 21,920.10 | |
Debt And Equity Securities Available For Sale [Member] | |||
Total Investments [Line Items] | |||
Current | 1,897.80 | 2,006.80 | |
Long-term investments | 17,361.10 | 16,821 | |
Total investments | 19,258.90 | 18,827.80 | |
Mortgage Loans [Member] | |||
Total Investments [Line Items] | |||
Current | 136.3 | 214.4 | |
Long-term investments | 1,419.90 | 1,429.20 | |
Total investments | 1,556.20 | 1,643.60 | |
Other Investments [Member] | |||
Total Investments [Line Items] | |||
Current | 2.3 | 0.7 | |
Long-term investments | 1,717.60 | 1,448 | |
Total investments | $1,719.90 | $1,448.70 |
Investments_Debt_and_Equity_Se
Investments - Debt and Equity Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Non-credit related impairments previously recognized in other comprehensive income | $22.90 | $25.20 | ||
Available-for-sale Securities, Amortized Cost Basis | 18,418.70 | [1] | 16,942.10 | [1] |
Available-for-sale Securities, Gross Unrealized Gains | 1,118 | [1] | 1,924.10 | [1] |
Available-for-sale Securities, Gross Unrealized Losses | -277.8 | [1] | -38.4 | [1] |
Available-for-sale Securities, Fair Value Disclosure | 19,258.90 | [1] | 18,827.80 | [1] |
Net Unrealized Capital (Loss) Gains | 8.5 | 9.6 | ||
Supporting Discontinued And Experience Rated Products [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Gross Unrealized Gains | 320.2 | 559.4 | ||
Available-for-sale Securities, Gross Unrealized Losses | -63.3 | -19.4 | ||
Available-for-sale Securities, Fair Value Disclosure | 3,700 | 4,000 | ||
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 18,372.40 | 16,903.80 | ||
Available-for-sale Securities, Gross Unrealized Gains | 1,079.70 | 1,919 | ||
Available-for-sale Securities, Gross Unrealized Losses | -273.6 | -35.3 | ||
Available-for-sale Securities, Fair Value Disclosure | 19,178.50 | 18,787.50 | ||
US Government Agencies Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 1,424 | 1,413.40 | ||
Available-for-sale Securities, Gross Unrealized Gains | 83.8 | 147.9 | ||
Available-for-sale Securities, Gross Unrealized Losses | -1 | -1.8 | ||
Available-for-sale Securities, Fair Value Disclosure | 1,506.80 | 1,559.50 | ||
US States and Political Subdivisions Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 3,852.60 | 2,770.90 | ||
Available-for-sale Securities, Gross Unrealized Gains | 138.1 | 267.9 | ||
Available-for-sale Securities, Gross Unrealized Losses | -76.5 | -4.3 | ||
Available-for-sale Securities, Fair Value Disclosure | 3,914.20 | 3,034.50 | ||
Domestic Corporate Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 7,272.20 | 6,926.20 | ||
Available-for-sale Securities, Gross Unrealized Gains | 505.6 | 871.7 | ||
Available-for-sale Securities, Gross Unrealized Losses | -122.9 | -7.3 | ||
Available-for-sale Securities, Fair Value Disclosure | 7,654.90 | 7,790.60 | ||
Foreign Corporate Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 3,114.30 | 2,988.10 | ||
Available-for-sale Securities, Gross Unrealized Gains | 207.4 | 391.3 | ||
Available-for-sale Securities, Gross Unrealized Losses | -54.2 | -8.8 | ||
Available-for-sale Securities, Fair Value Disclosure | 3,267.50 | 3,370.60 | ||
Residential Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 951.5 | 929.5 | ||
Available-for-sale Securities, Gross Unrealized Gains | 22.6 | 49.9 | ||
Available-for-sale Securities, Gross Unrealized Losses | -11.7 | -0.4 | ||
Available-for-sale Securities, Fair Value Disclosure | 962.4 | 979 | ||
Commercial Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 1,321.20 | 1,268.70 | ||
Available-for-sale Securities, Gross Unrealized Gains | 95.6 | 149.7 | ||
Available-for-sale Securities, Gross Unrealized Losses | -4.7 | [2] | -1.8 | [2] |
Available-for-sale Securities, Fair Value Disclosure | 1,412.10 | 1,416.60 | ||
Other Asset-Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 379.8 | 517.4 | ||
Available-for-sale Securities, Gross Unrealized Gains | 17.9 | 28.3 | ||
Available-for-sale Securities, Gross Unrealized Losses | -2.2 | [2] | -3.6 | [2] |
Available-for-sale Securities, Fair Value Disclosure | 395.5 | 542.1 | ||
Redeemable Preferred Stock [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 56.8 | 89.6 | ||
Available-for-sale Securities, Gross Unrealized Gains | 8.7 | 12.3 | ||
Available-for-sale Securities, Gross Unrealized Losses | -0.4 | -7.3 | ||
Available-for-sale Securities, Fair Value Disclosure | 65.1 | 94.6 | ||
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Amortized Cost Basis | 46.3 | 38.3 | ||
Available-for-sale Securities, Gross Unrealized Gains | 38.3 | 5.1 | ||
Available-for-sale Securities, Gross Unrealized Losses | -4.2 | -3.1 | ||
Available-for-sale Securities, Fair Value Disclosure | $80.40 | $40.30 | ||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At SeptemberB 30, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $320.2 million and gross unrealized capital losses of $63.3 million and, at DecemberB 31, 2012, debt and equity securities with a fair value of approximately $4.0 billion, gross unrealized capital gains of $559.4 million and gross unrealized capital losses of $19.4 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. | |||
[2] | At SeptemberB 30, 2013 and DecemberB 31, 2012, we held securities for which we previously recognized $22.9 million and $25.2 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at SeptemberB 30, 2013 and December 31, 2012 of $8.5 million and $9.6 million, respectively. |
Investments_Debt_Securities_by
Investments - Debt Securities by Maturity (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | $19,258.90 | [1] | $18,827.80 | [1] |
Debt Securities [Member] | ||||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 19,178.50 | 18,787.50 | ||
Available-for-sale Securities With Established Maturities [Member] | ||||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Due To Mature Less Than One Year | 731.9 | |||
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 5,054.20 | |||
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 5,643.60 | |||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 4,978.80 | |||
Residential Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available For Sale Securities, Weighted Average Duration Of Securities | 4 years 6 months 0 days | |||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 962.4 | 979 | ||
Commercial Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available For Sale Securities, Weighted Average Duration Of Securities | 2 years 8 months 0 days | |||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,412.10 | 1,416.60 | ||
Other Asset-Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available For Sale Securities, Weighted Average Duration Of Securities | 2 years 10 months 0 days | |||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | $395.50 | $542.10 | ||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At SeptemberB 30, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $320.2 million and gross unrealized capital losses of $63.3 million and, at DecemberB 31, 2012, debt and equity securities with a fair value of approximately $4.0 billion, gross unrealized capital gains of $559.4 million and gross unrealized capital losses of $19.4 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. |
Investments_Unrealized_Loss_Po
Investments - Unrealized Loss Position (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $5,389.20 | [1] | $1,403.10 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 265.7 | [1] | 14.7 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 141 | [1] | 162.7 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 12.1 | [1] | 23.7 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,530.20 | [1] | 1,565.80 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 277.8 | [1] | 38.4 | [1] |
Supporting Discontinued And Experience Rated Products [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 922.4 | 225.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 63.3 | 19.4 | ||
Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,378.40 | 1,386.70 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 264.4 | 12.6 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 135.8 | 149.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 9.2 | 22.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,514.20 | [1] | 1,536.40 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 273.6 | [1] | 35.3 | [1] |
Debt Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 906.4 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 59.3 | |||
Debt Securities [Member] | Supporting Remaining Products [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,607.80 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 214.3 | |||
US Government Agencies Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 82.1 | 138.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.6 | 1.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 13.7 | 15.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.4 | 0.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 95.8 | [1] | 153.4 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1 | [1] | 1.8 | [1] |
US States and Political Subdivisions Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,598.90 | 264.6 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 74.1 | 3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 31 | 28.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 2.4 | 1.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,629.90 | [1] | 293.1 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 76.5 | [1] | 4.3 | [1] |
Domestic Corporate Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,183.70 | 598.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 120.2 | 6.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 15.8 | 10.8 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 2.7 | 1.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,199.50 | [1] | 609.2 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 122.9 | [1] | 7.3 | [1] |
Foreign Corporate Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 923.9 | 270.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 53 | 1.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 22.6 | 35.6 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 1.2 | 7.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 946.5 | [1] | 306 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 54.2 | [1] | 8.8 | [1] |
Residential Mortgage Backed Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 333.6 | 51.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 9.5 | 0.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 27.9 | 2.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 2.2 | 0.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 361.5 | [1] | 53.8 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 11.7 | [1] | 0.4 | [1] |
Commercial Mortgage Backed Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 153.6 | 6.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 4.4 | 0.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 19.3 | 46.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.3 | 1.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 172.9 | [1] | 52.4 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 4.7 | [1] | 1.8 | [1] |
Other Asset-Backed Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 92.5 | 44.8 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 2.2 | 0.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 5.5 | 1.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | 3.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 98 | [1] | 46.3 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2.2 | [1] | 3.6 | [1] |
Redeemable Preferred Stock [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10.1 | 12.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.4 | 0.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 10 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | 7.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10.1 | [1] | 22.2 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.4 | [1] | 7.3 | [1] |
Equity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10.8 | 16.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 1.3 | 2.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 5.2 | 13 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 2.9 | 1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 16 | [1] | 29.4 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $4.20 | [1] | $3.10 | [1] |
[1] | At SeptemberB 30, 2013 and DecemberB 31, 2012, debt and equity securities in an unrealized capital loss position of $63.3 million and $19.4 million, respectively, and with related fair value of $922.4 million and $225.2 million, respectively, related to experience-rated and discontinued products. |
Investments_Unrealized_Loss_Po1
Investments - Unrealized Loss Position Maturities (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $277.80 | [1] | $38.40 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,530.20 | [1] | 1,565.80 | [1] |
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 273.6 | [1] | 35.3 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,514.20 | [1] | 1,536.40 | [1] |
Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 214.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,607.80 | |||
Supporting Discontinued And Experience Rated Products [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 63.3 | 19.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 922.4 | 225.2 | ||
Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 59.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 906.4 | |||
Maturing in Less than one Year [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 23.9 | |||
Maturing in Less than one Year [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 23.9 | |||
Maturing in Less than one Year [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 0 | |||
Maturing in One Through Five Years [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 15.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 970.8 | |||
Maturing in One Through Five Years [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 13.8 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 898.4 | |||
Maturing in One Through Five Years [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1.5 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 72.4 | |||
Maturing After Five Years Through Ten Years [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 104.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,226.20 | |||
Maturing After Five Years Through Ten Years [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 85.5 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,843.20 | |||
Maturing After Five Years Through Ten Years [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 18.8 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 383 | |||
Maturing in Greater Than Ten Years [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 135.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,660.90 | |||
Maturing in Greater Than Ten Years [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 97 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,239.30 | |||
Maturing in Greater Than Ten Years [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 38.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 421.6 | |||
Residential Mortgage Backed Securities [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 11.7 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 361.5 | |||
Residential Mortgage Backed Securities [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 11.6 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 354.9 | |||
Residential Mortgage Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.1 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6.6 | |||
Commercial Mortgage Backed Securities [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 4.7 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 172.9 | |||
Commercial Mortgage Backed Securities [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 4.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 164.2 | |||
Commercial Mortgage Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.4 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 8.7 | |||
Other Asset-Backed Securities [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 98 | |||
Other Asset-Backed Securities [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1.9 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 83.9 | |||
Other Asset-Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $14.10 | |||
[1] | At SeptemberB 30, 2013 and DecemberB 31, 2012, debt and equity securities in an unrealized capital loss position of $63.3 million and $19.4 million, respectively, and with related fair value of $922.4 million and $225.2 million, respectively, related to experience-rated and discontinued products. |
Investments_Realized_Gains_Det
Investments - Realized Gains (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
OTTI losses on securities | ($2.40) | ($1.80) | ($29.60) | ($10.40) |
Portion of OTTI losses recognized in other comprehensive income | 0 | 0 | 0 | 0.1 |
Net OTTI losses on securities recognized in earnings | -2.4 | -1.8 | -29.6 | -10.3 |
Net realized capital gains losses excluding OTTI losses on securities | -10.3 | 19.1 | 17.4 | 87.9 |
Net realized capital (losses) gains | -12.7 | 17.3 | -12.2 | 77.6 |
Debt Securities [Member] | ||||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Proceeds On Sales | 1,434 | 1,323.30 | 5,216.50 | 4,138.60 |
Gross Realized Capital Gains | 25 | 30.8 | 83.9 | 135.7 |
Gross Realized Capital Losses | $34.90 | $1.90 | $78.30 | $13.20 |
Investments_Mortgage_Loans_Det
Investments - Mortgage Loans (Details) (Commercial Real Estate [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
New Mortgage Loans | $62.80 | $71.80 | $126.40 | $132.30 | |
Mortgage loans fully repaid | 49.1 | 4.5 | 168.7 | 41.8 | |
Mortgage loans foreclosed | 0 | 0 | 0 | 16.7 | |
Mortgage Loans on Real Estate | 1,556.20 | 1,556.20 | 1,643.60 | ||
Category 1 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | 118.2 | 118.2 | 94 | ||
Category 2 to 4 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | 1,346.50 | 1,346.50 | 1,451.10 | ||
Category 5 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | 32.5 | 32.5 | 60.2 | ||
Categories 6 and 7 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | $59 | $59 | $38.30 |
Investments_Investments_Variab
Investments Investments - Variable Interest Entities and Noncontrolling Interests (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Real Estate Partnerships [Member] | Real Estate Partnerships [Member] | Hedge Fund Partnerships [Member] | Hedge Fund Partnerships [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | ||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||||||
Long-term investments | $20,498,600,000 | $20,498,600,000 | $19,698,200,000 | $212,000,000 | $215,000,000 | ||||||||||
Variable Interest Entity Assets | 5,900,000,000 | 5,400,000,000 | 7,200,000,000 | 7,000,000,000 | |||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 51,300,000 | 23,100,000 | 23,400,000 | 24,400,000 | |||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||
Net (Loss) Income Attributable to Non-controlling Interest | $400,000 | $400,000 | ($1,600,000) | $1,400,000 | ($1,600,000) | $1,400,000 |
Investments_Investment_Income_
Investments - Investment Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||||
Gross investment income | $218.90 | $224.40 | $696.80 | $704.70 | ||||
Less: investment expenses | -8.9 | -8.2 | -26.7 | -23.1 | ||||
Net Investment Income | 210 | [1] | 216.2 | [1] | 670.1 | [1] | 681.6 | [1] |
Supporting Discontinued And Experience Rated Products [Member] | ||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||||
Net Investment Income | 61.5 | 79.8 | 210.3 | 238.6 | ||||
Debt Securities [Member] | ||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||||
Gross investment income | 193.9 | 186 | 573.9 | 574.7 | ||||
Mortgage Loans [Member] | ||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||||
Gross investment income | 27.2 | 25.3 | 76.1 | 90.8 | ||||
Other Investments [Member] | ||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||||
Gross investment income | ($2.20) | $13.10 | $46.80 | $39.20 | ||||
[1] | Net investment income includes $61.5 million and $210.3 million for the three and nine months ended SeptemberB 30, 2013, respectively, and $79.8 million and $238.6 million for the three and nine months ended SeptemberB 30, 2012, respectively, related to investments supporting our experience-rated and discontinued products. |
Other_Comprehensive_Loss_Incom2
Other Comprehensive (Loss) Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance at beginning of period | ($1,033.40) | |||||||
Other comprehensive (loss) income | 18.9 | 166 | -422.7 | 300.3 | ||||
Balance at end of period | -1,456.10 | -1,456.10 | ||||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ||||||||
Comprehensive Income Loss [Line Items] | ||||||||
Net unrealized gains (losses) | -40.8 | [1] | ||||||
Net unrealized gains (losses) on securities, reclassification of gains to earnings | 20.6 | [1],[2] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance at beginning of period | 57.3 | [1] | 58.2 | [1] | ||||
Other comprehensive (loss) income | -20.2 | [1] | 2.4 | [1] | ||||
Balance at end of period | 37.1 | [1] | 60.6 | [1] | 37.1 | [1] | 60.6 | [1] |
Net Unrealized Gains (Losses) All Other Securities [Member] | ||||||||
Comprehensive Income Loss [Line Items] | ||||||||
Net unrealized gains (losses) | -481.1 | |||||||
Net unrealized gains (losses) on securities, reclassification of gains to earnings | 17.2 | [2] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance at beginning of period | 825.2 | 595.2 | ||||||
Other comprehensive (loss) income | -463.9 | 258.5 | ||||||
Balance at end of period | 361.3 | 853.7 | 361.3 | 853.7 | ||||
Net Unrealized Gains (Losses) Foreign Currency And Derivatives [Member] | ||||||||
Comprehensive Income Loss [Line Items] | ||||||||
Net unrealized gains (losses) | 22.9 | |||||||
Foreign currency and derivatives reclassification of losses to earnings | 2.6 | [3] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance at beginning of period | -29.5 | -33.7 | ||||||
Other comprehensive (loss) income | 25.5 | 5 | ||||||
Balance at end of period | -4 | -28.7 | -4 | -28.7 | ||||
Pension And OPEB Plans Unrecognized Net Actuarial (Losses) [Member] | ||||||||
Comprehensive Income Loss [Line Items] | ||||||||
Amortization of net actuarial losses | 37.9 | [4] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance at beginning of period | -1,909.40 | -1,834.60 | ||||||
Other comprehensive (loss) income | 37.9 | 36.4 | ||||||
Balance at end of period | -1,871.50 | -1,798.20 | -1,871.50 | -1,798.20 | ||||
Pension And OPEB Plans Unrecognized Prior Service Cost [Member] | ||||||||
Comprehensive Income Loss [Line Items] | ||||||||
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost Recognized in Net Periodic Pension Cost, Net of Tax | -2 | [4] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance at beginning of period | 23 | 25.7 | ||||||
Other comprehensive (loss) income | -2 | -2 | ||||||
Balance at end of period | 21 | 23.7 | 21 | 23.7 | ||||
Accumulated Other Comprehensive Loss [Member] | ||||||||
Comprehensive Income Loss [Line Items] | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -499 | |||||||
Other Comprehensive Income Loss Net Of Tax Reclassification To Earnings | 76.3 | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance at beginning of period | -1,033.40 | -1,189.20 | ||||||
Other comprehensive (loss) income | -422.7 | 300.3 | ||||||
Balance at end of period | ($1,456.10) | ($888.90) | ($1,456.10) | ($888.90) | ||||
[1] | Represents unrealized losses on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. | |||||||
[2] | Reclassifications out of accumulated other comprehensive income for previously impaired debt securities and all other securities are reflected in net realized capital gains (losses) within the Consolidated Statement of Income. | |||||||
[3] | Reclassifications out of accumulated other comprehensive income for foreign currency gains (losses) and derivatives are reflected in net realized capital gains (losses) within the Consolidated Statement of Income, except for derivatives related to interest rate swaps which are reflected in interest expense and were not material during the nine months ended SeptemberB 30, 2013. | |||||||
[4] | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statement of Income (Refer to Note 10 of Condensed Notes to Consolidated Financial Statements beginning on pageB 27 for additional information). |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | $19,258,900,000 | [1] | $19,258,900,000 | [1] | $18,827,800,000 | [1] | ||
Gross transfers out of level 3 | -21,700,000 | -7,400,000 | -48,900,000 | -30,100,000 | ||||
Gross transfers into Level 3, Separate Accounts | 0 | 0 | 0 | 0 | ||||
Gross transfers out of separate accounts | 4,600,000 | 600,000 | ||||||
Transfers between Level 1 and 2, Separate Accounts | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | -17,900,000 | -7,400,000 | -45,100,000 | -28,300,000 | ||||
Debt Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 19,178,500,000 | 19,178,500,000 | 18,787,500,000 | |||||
US Government Agencies Debt Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,506,800,000 | 1,506,800,000 | 1,559,500,000 | |||||
US States and Political Subdivisions Debt Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 3,914,200,000 | 3,914,200,000 | 3,034,500,000 | |||||
Domestic Corporate Debt Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 7,654,900,000 | 7,654,900,000 | 7,790,600,000 | |||||
Foreign Corporate Debt Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 3,267,500,000 | 3,267,500,000 | 3,370,600,000 | |||||
Residential Mortgage Backed Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 962,400,000 | 962,400,000 | 979,000,000 | |||||
Commercial Mortgage Backed Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,412,100,000 | 1,412,100,000 | 1,416,600,000 | |||||
Other Asset-Backed Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 395,500,000 | 395,500,000 | 542,100,000 | |||||
Redeemable Preferred Stock [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 65,100,000 | 65,100,000 | 94,600,000 | |||||
Equity Securities [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 80,400,000 | 80,400,000 | 40,300,000 | |||||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative Liabilities | 0 | 0 | 0 | |||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Derivative Assets | 0 | 0 | 0 | |||||
Assets, Fair Value Disclosure | 1,290,700,000 | 1,290,700,000 | 1,329,600,000 | |||||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative Liabilities | 2,200,000 | 2,200,000 | 300,000 | |||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Derivative Assets | 41,800,000 | 41,800,000 | 8,900,000 | |||||
Assets, Fair Value Disclosure | 17,824,100,000 | 17,824,100,000 | 17,311,300,000 | |||||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative Liabilities | 0 | 0 | 0 | |||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Derivative Assets | 0 | 0 | 0 | |||||
Assets, Fair Value Disclosure | 185,900,000 | 185,900,000 | 195,800,000 | |||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Transfers between Level 1 and Level 2 | 0 | 0 | 0 | 0 | ||||
Derivative Liabilities | 2,200,000 | 2,200,000 | 300,000 | |||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Derivative Assets | 41,800,000 | 41,800,000 | 8,900,000 | |||||
Assets, Fair Value Disclosure | 19,300,700,000 | 19,300,700,000 | 18,836,700,000 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 3,800,000 | 0 | 3,800,000 | 1,800,000 | ||||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,272,900,000 | 1,272,900,000 | 1,311,400,000 | |||||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 17,782,000,000 | 17,782,000,000 | 17,302,400,000 | |||||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 123,600,000 | 123,600,000 | 173,700,000 | |||||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 19,178,500,000 | 19,178,500,000 | 18,787,500,000 | |||||
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,272,900,000 | 1,272,900,000 | 1,311,400,000 | |||||
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 233,900,000 | 233,900,000 | 248,100,000 | |||||
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,506,800,000 | 1,506,800,000 | 1,559,500,000 | |||||
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 3,912,900,000 | 3,912,900,000 | 3,031,800,000 | |||||
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,300,000 | 1,300,000 | 2,700,000 | |||||
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 3,914,200,000 | 3,914,200,000 | 3,034,500,000 | |||||
Fair Value, Measurements, Recurring [Member] | Domestic Corporate Debt Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Domestic Corporate Debt Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 7,618,400,000 | 7,618,400,000 | 7,736,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Domestic Corporate Debt Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 36,500,000 | 36,500,000 | 54,600,000 | |||||
Fair Value, Measurements, Recurring [Member] | Domestic Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 7,654,900,000 | 7,654,900,000 | 7,790,600,000 | |||||
Fair Value, Measurements, Recurring [Member] | Foreign Corporate Debt Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Foreign Corporate Debt Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 3,226,000,000 | 3,226,000,000 | 3,317,900,000 | |||||
Fair Value, Measurements, Recurring [Member] | Foreign Corporate Debt Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 41,500,000 | 41,500,000 | 52,700,000 | |||||
Fair Value, Measurements, Recurring [Member] | Foreign Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 3,267,500,000 | 3,267,500,000 | 3,370,600,000 | |||||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 962,400,000 | 962,400,000 | 979,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 962,400,000 | 962,400,000 | 979,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,404,700,000 | 1,404,700,000 | 1,396,500,000 | |||||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 7,400,000 | 7,400,000 | 20,100,000 | |||||
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 1,412,100,000 | 1,412,100,000 | 1,416,600,000 | |||||
Fair Value, Measurements, Recurring [Member] | Other Asset-Backed Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Other Asset-Backed Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 362,700,000 | 362,700,000 | 512,600,000 | |||||
Fair Value, Measurements, Recurring [Member] | Other Asset-Backed Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 32,800,000 | 32,800,000 | 29,500,000 | |||||
Fair Value, Measurements, Recurring [Member] | Other Asset-Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 395,500,000 | 395,500,000 | 542,100,000 | |||||
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 61,000,000 | 61,000,000 | 80,500,000 | |||||
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 4,100,000 | 4,100,000 | 14,100,000 | |||||
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 65,100,000 | 65,100,000 | 94,600,000 | |||||
Fair Value, Measurements, Recurring [Member] | Brokered Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 99,000,000 | 99,000,000 | 117,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 1 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 17,800,000 | 17,800,000 | 18,200,000 | |||||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 2 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 300,000 | 300,000 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 3 [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 62,300,000 | 62,300,000 | 22,100,000 | |||||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Assets, Fair Value Disclosure [Abstract] | ||||||||
Available-for-sale Securities, Fair Value Disclosure | 80,400,000 | 80,400,000 | 40,300,000 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Mortgage loans | 0 | 0 | 0 | |||||
Bank loans | 0 | 0 | ||||||
Investment contracts with a fixed maturity | 0 | 0 | 0 | |||||
Investment contracts without a fixed maturity | 0 | 0 | 0 | |||||
Long-term debt | 0 | 0 | 0 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Mortgage loans | 0 | 0 | 0 | |||||
Bank loans | 130,100,000 | 130,100,000 | ||||||
Investment contracts with a fixed maturity | 0 | 0 | 0 | |||||
Investment contracts without a fixed maturity | 0 | 0 | 0 | |||||
Long-term debt | 8,716,000,000 | 8,716,000,000 | 7,408,700,000 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Mortgage loans | 1,598,600,000 | 1,598,600,000 | 1,698,600,000 | |||||
Bank loans | 10,500,000 | 10,500,000 | ||||||
Investment contracts with a fixed maturity | 9,200,000 | 9,200,000 | 18,500,000 | |||||
Investment contracts without a fixed maturity | 547,400,000 | 547,400,000 | 611,100,000 | |||||
Long-term debt | 0 | 0 | 0 | |||||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Mortgage loans | 1,556,200,000 | 1,556,200,000 | 1,643,600,000 | |||||
Bank loans | 142,200,000 | 142,200,000 | ||||||
Investment contracts with a fixed maturity | 9,200,000 | 9,200,000 | 18,500,000 | |||||
Investment contracts without a fixed maturity | 578,500,000 | 578,500,000 | 590,200,000 | |||||
Long-term debt | 8,266,300,000 | 8,266,300,000 | 6,481,300,000 | |||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Mortgage loans | 1,598,600,000 | 1,598,600,000 | 1,698,600,000 | |||||
Bank loans | 140,600,000 | 140,600,000 | ||||||
Investment contracts with a fixed maturity | 9,200,000 | 9,200,000 | 18,500,000 | |||||
Investment contracts without a fixed maturity | 547,400,000 | 547,400,000 | 611,100,000 | |||||
Long-term debt | $8,716,000,000 | $8,716,000,000 | $7,408,700,000 | |||||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At SeptemberB 30, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $320.2 million and gross unrealized capital losses of $63.3 million and, at DecemberB 31, 2012, debt and equity securities with a fair value of approximately $4.0 billion, gross unrealized capital gains of $559.4 million and gross unrealized capital losses of $19.4 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. |
Financial_Instruments_Separate
Financial Instruments - Separate Accounts Fair Value (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | $3,933.60 | $3,933.60 | $4,247.10 | |||||
Gross transfers out of separate accounts | 4.6 | 0.6 | ||||||
Transfers between Level 1 and 2, Separate Accounts | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurements, Recurring [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 41.8 | [1] | 41.8 | [1] | 9.4 | [1] | ||
Separate Account Assets | 3,754.10 | [2] | 3,754.10 | [2] | 4,009.10 | [2] | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 895.1 | [2] | 895.1 | [2] | 916.6 | [2] | ||
Derivative Assets | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 2,858.40 | [2] | 2,858.40 | [2] | 3,092.10 | [2] | ||
Derivative Assets | 41.8 | 41.8 | 8.9 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0.6 | [2] | 0.6 | [2] | 0.4 | [2] | ||
Derivative Assets | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Derivative Assets | 41.8 | 41.8 | 8.9 | |||||
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 685.7 | 685.7 | 721.7 | |||||
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 2,163.90 | 2,163.90 | 2,343.90 | |||||
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0.6 | 0.6 | 0.4 | |||||
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 2,850.20 | 2,850.20 | 3,066 | |||||
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 209.4 | 209.4 | 194.9 | |||||
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 1.6 | 1.6 | 1 | |||||
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0 | 0 | 0 | |||||
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 211 | 211 | 195.9 | |||||
Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0 | 0 | 0 | |||||
Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0.2 | 0.2 | -1.8 | |||||
Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0 | 0 | 0 | |||||
Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0.2 | 0.2 | -1.8 | |||||
Common/Collective Trusts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0 | 0 | 0 | |||||
Common/Collective Trusts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 692.7 | 692.7 | 749 | |||||
Common/Collective Trusts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 0 | 0 | 0 | |||||
Common/Collective Trusts [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 692.7 | 692.7 | 749 | |||||
Cash and Cash Equivalents [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Separate Account Assets | 179.5 | 179.5 | 238 | |||||
Financial Instruments [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Collateral Already Posted, Aggregate Fair Value | -560.9 | -560.9 | -47.1 | |||||
Cash [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Collateral Already Posted, Aggregate Fair Value | -0.9 | -0.9 | 0 | |||||
Derivative [Member] | Fair Value, Measurements, Recurring [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 41.8 | [1] | 41.8 | [1] | 9.4 | [1] | ||
Derivative [Member] | Financial Instruments [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Collateral Already Posted, Aggregate Fair Value | -10.7 | -10.7 | 0 | |||||
Derivative [Member] | Cash [Member] | ||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||||||
Collateral Already Posted, Aggregate Fair Value | ($0.90) | ($0.90) | $0 | |||||
[1] | There were no amounts offset in our balance sheets at September 30, 2013 or December 31, 2012. | |||||||
[2] | Excludes $179.5 million and $238.0 million of cash and cash equivalents and other receivables at SeptemberB 30, 2013 and DecemberB 31, 2012, respectively. |
Financial_Instruments_Financia
Financial Instruments Financial Instruments - Balance Sheet Offsetting (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Cash Collateral for Borrowed Securities | $550.20 | $47.10 | ||
Collateral Payable Under Securities Loan Agreements | -550.2 | -47.1 | ||
Total Gross Liabilities Recognized Subject to Offsetting | 556.3 | [1] | 47.4 | [1] |
Derivative liabilities, net | -5.5 | 0.3 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 41.8 | [1] | 9.4 | [1] |
Derivative Assets | 1.4 | 14.4 | ||
Financial Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | 0 | 12.5 | ||
Collateral Already Posted, Aggregate Fair Value | -560.9 | -47.1 | ||
Cash [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Cash collateral received | -40.4 | -7.5 | ||
Collateral Already Posted, Aggregate Fair Value | -0.9 | 0 | ||
Securities Loaned or Sold under Agreements to Repurchase [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Cash Collateral for Borrowed Securities | 550.2 | [1] | 47.1 | [1] |
Securities loaned agreements, net amount | 0 | 0 | ||
Securities Loaned or Sold under Agreements to Repurchase [Member] | Financial Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Collateral Payable Under Securities Loan Agreements | -550.2 | -47.1 | ||
Securities Loaned or Sold under Agreements to Repurchase [Member] | Cash [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | 0 | 0 | ||
Derivative [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Liabilities | -5.5 | 0.3 | ||
Derivative Liability, Fair Value, Gross Liability | 6.1 | [1] | 0.3 | [1] |
Derivative [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 41.8 | [1] | 9.4 | [1] |
Derivative Assets | 1.4 | 14.4 | ||
Derivative [Member] | Financial Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | 0 | 12.5 | ||
Collateral Already Posted, Aggregate Fair Value | -10.7 | 0 | ||
Derivative [Member] | Cash [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Cash collateral received | -40.4 | -7.5 | ||
Collateral Already Posted, Aggregate Fair Value | ($0.90) | $0 | ||
[1] | There were no amounts offset in our balance sheets at September 30, 2013 or December 31, 2012. |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Contributions by Employer | $60 | $60 | ||
Pension Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 0 | 0 | 0 | 0 |
Amortization of prior service cost | -0.1 | -0.1 | -0.3 | -0.3 |
Interest cost | 67.9 | 74.6 | 203.6 | 223.8 |
Expected Return on Plan Assets | -99.1 | -96.8 | -297.3 | -290.5 |
Amortization of net actuarial losses | 19 | 17.5 | 56.6 | 52.7 |
Net periodic benefit (income) cost | -12.3 | -4.8 | -37.4 | -14.3 |
OPEB Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 0 | 0 | 0 | 0.1 |
Amortization of prior service cost | -1 | -0.9 | -2.7 | -2.7 |
Interest cost | 2.8 | 3.6 | 8.3 | 10.8 |
Expected Return on Plan Assets | -0.6 | -0.6 | -1.8 | -2 |
Amortization of net actuarial losses | 0.6 | 1.1 | 1.7 | 3.3 |
Net periodic benefit (income) cost | $1.80 | $3.20 | $5.50 | $9.50 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | 7-May-13 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | ||
In Millions, unless otherwise specified | Senior Notes, 6.3%, due 2014 [Member] | Senior Notes, 6.3%, due 2014 [Member] | Senior Notes, 6.125%, Due 2015 [Member] | Senior Notes, 6.125%, Due 2015 [Member] | Senior Notes, 6.0%, Due 2016 [Member] | Senior Notes, 6.0%, Due 2016 [Member] | Senior Notes, 5.95%, Due 2017 [Member] | Senior Notes, 5.95%, Due 2017 [Member] | Senior Notes, 1.75%, Due 2017 [Member] | Senior Notes, 1.75%, Due 2017 [Member] | Senior Notes, 1.5%, Due 2017 [Member] | Senior Notes, 1.5%, Due 2017 [Member] | Senior Notes, 6.5%, Due 2018 [Member] | Senior Notes, 6.5%, Due 2018 [Member] | Senior Notes, 3.95%, Due 2020 [Member] | Senior Notes, 3.95%, Due 2020 [Member] | Senior Notes, 5.45%, Due 2021 [Member] | Senior Notes, 5.45%, Due 2021 [Member] | Senior Notes, 4.125%, Due 2021 [Member] | Senior Notes, 4.125%, Due 2021 [Member] | Senior Notes, 2.75%, Due 2022 [Member] | Senior Notes, 2.75%, Due 2022 [Member] | Senior Notes, 6.625%, Due 2036 [Member] | Senior Notes, 6.625%, Due 2036 [Member] | Senior Notes, 6.75%, Due 2037 [Member] | Senior Notes, 6.75%, Due 2037 [Member] | Senior Notes, 4.5%, Due 2042 [Member] | Senior Notes, 4.5%, Due 2042 [Member] | Senior Notes, 4.125%, Due 2042 [Member] | Senior Notes, 4.125%, Due 2042 [Member] | Debt refinance [Domain] | |||||
Derivatives_and_swaps | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||
Derivative, Notional Amount | $375 | |||||||||||||||||||||||||||||||||||
Debt fair value adjustment | 216.6 | |||||||||||||||||||||||||||||||||||
Long-term debt, amount of outstanding principal | 375 | 229 | 383 | 600 | ||||||||||||||||||||||||||||||||
Long-term Debt | 8,266.30 | 6,481.30 | 243.4 | 0 | 748.8 | 748.5 | 438.2 | 0 | 248.8 | 248.6 | 498 | 497.7 | 494.9 | 494.8 | 744.1 | 743.4 | 705.8 | 0 | 494.7 | 494.1 | 984.6 | 983.4 | 769.8 | 769.7 | 530.6 | 529.5 | 479.9 | 479.3 | 492.5 | 492.3 | ||||||
Current portion of long-term debt | 392.2 | [1] | 0 | [1] | 392.2 | 0 | ||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.30% | 6.30% | 6.13% | 6.13% | 6.00% | 6.00% | 5.95% | 5.95% | 1.75% | 1.75% | 1.50% | 1.50% | 6.50% | 6.50% | 3.95% | 3.95% | 5.45% | 5.45% | 4.13% | 4.13% | 2.75% | 2.75% | 6.63% | 6.63% | 6.75% | 6.75% | 4.50% | 4.50% | 4.13% | 4.13% | ||||||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | 39.9 | |||||||||||||||||||||||||||||||||||
Number of Interest Rate Derivatives Held | 2 | |||||||||||||||||||||||||||||||||||
Long-term debt, less current portion | $7,874.10 | $6,481.30 | ||||||||||||||||||||||||||||||||||
[1] | At September 30, 2013, our 6.3% senior notes due August 2014 are classified as current in the accompanying consolidated balance sheet. |
Debt_Shortterm_Debt_Details
Debt - Short-term Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
In Millions, unless otherwise specified | Completed Acquisition [Member] | ||
Short-term Debt [Line Items] | |||
Commercial Paper | $0 | $0 | |
Issuance of short-term debt | $700 |
Debt_Line_of_Credit_Details
Debt - Line of Credit (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit agreement | $1,500,000,000 |
Debt Instrument, Unused Borrowing Capacity, Amount | 2,000,000,000 |
Maximum Amount Of Letters Of Credit Issuable | 200,000,000 |
Facility fee (in hundredths) | 0.10% |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Level the debt to capitalization must be below under the facility agreement | 0.5 |
Minimum [Member] | Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Facility fee (in hundredths) | 0.07% |
Maximum [Member] | Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Facility fee (in hundredths) | 0.15% |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit agreement | $2,500,000,000 |
Capital_Stock_Repurchases_Deta
Capital Stock - Repurchases (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Commercial Paper | $0 | $0 | $0 | |||
Stock Repurchase Program, Authorized Amount | 750,000,000 | 750,000,000 | 750,000,000 | |||
Stock Repurchased During Period, Shares | 16 | |||||
Stock Repurchased During Period, Value | 957,700,000 | 924,500,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 1,000,000,000 | |||||
Treasury Stock [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchased During Period, Value | $958,000,000 |
Capital_Stock_Dividends_Detail
Capital Stock - Dividends (Details) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Class of Stock Disclosures [Abstract] | |||
Dividends Amount Per Share | $0.20 | $0.20 | $0.20 |
Dividends | $73.60 | $74.40 | $65.20 |
Capital_Stock_Stock_Units_Deta
Capital Stock - Stock Units (Details) (USD $) | 9 Months Ended | 3 Months Ended | ||||
Share data in Millions, unless otherwise specified | Sep. 30, 2013 | 7-May-13 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Performance Stock Units [Member] | Market Stock Units [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total number of shares issued in a business acquisition | 52.2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0.5 | 1.1 | 0.5 | 1.1 | ||
Minimum Vesting Percentage During Performance Period For Performance Stock Units | 0.00% | |||||
Maximum Vesting Percentage During Performance Period For Performance Stock Units | 200.00% | |||||
Vesting Percentage For Market Stock Units Range Minimum | 0.00% | |||||
Vesting Percentage For Market Stock Units Range Maximum | 150.00% | |||||
Percentage Restricted Stock Units Vested In Three Years | 100.00% | |||||
Total value of equity consideration transferred | $3,100,000,000 | |||||
Cash consideration transferred | $3,800,000,000 |
Dividend_Restrictions_and_Stat1
Dividend Restrictions and Statutory Surplus (Details) (Insurance and HMO [Member], USD $) | 3 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Insurance and HMO [Member] | ||
Dividend Restrictions and Statutory Surplus [Line Items] | ||
Dividends available | $900,000,000 | |
Proceeds from dividends received | 637,000,000 | |
Statutory capital and surplus | $8,800,000,000 | $6,400,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Loss Contingencies [Line Items] | |
Settlement payment upon final court approval | $60 |
Settlement payment upon validation | 60 |
Settlement of class action litigation, after-tax | $78 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
Revenue from external customers | $12,838.30 | $8,683.80 | $33,454 | $25,911 | ||||
Operating Earnings | 561.8 | [1],[2] | 523.2 | [1],[2] | 1,606.20 | [1],[2] | 1,452.60 | [1],[2] |
Health Care [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
Revenue from external customers | 12,228.70 | 8,172.70 | 31,743 | 24,398.40 | ||||
Operating Earnings | 585.8 | [1] | 531.8 | [1] | 1,637.80 | [1] | 1,444.20 | [1] |
Group Insurance [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
Revenue from external customers | 510.7 | 465.8 | 1,536.80 | 1,378.10 | ||||
Operating Earnings | 19.7 | [1] | 29.3 | [1] | 80.8 | [1] | 116.2 | [1] |
Large Case Pension [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
Revenue from external customers | 98.9 | [3] | 45.3 | [3] | 174.2 | [3] | 134.5 | [3] |
Operating Earnings | 6.2 | [1],[3] | 3.7 | [1],[3] | 16.2 | [1],[3] | 13.4 | [1],[3] |
Corporate Financing [Member] | ||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||
Revenue from external customers | 0 | 0 | 0 | 0 | ||||
Operating Earnings | ($49.90) | [1] | ($41.60) | [1] | ($128.60) | [1] | ($121.20) | [1] |
[1] | Operating earnings (loss) excludes net realized capital gains or losses and the other items described in the reconciliation below. | |||||||
[2] | In addition to net realized capital gains (losses), the following items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance:b"We incurred transaction and integration-related costs related to the acquisition of Coventry of $34.6 million ($51.2 million pretax) and $140.6 million ($189.6 million pretax) during the three and nine months ended September 30, 2013, respectively, and $12.5 millionB ($13.8 million pretax) during the three and nine months ended September 30, 2012. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Effective Date, the negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Effective Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings.b"We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 17 beginning on page 36 for additional information on the reduction of the reserve for anticipated future losses on discontinued products.b"In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue.b"In the third quarter of 2012, we incurred a loss on the early extinguishment of long-term debt of $23.0 million ($35.4 million pretax) related to repurchases of certain of our outstanding senior notes. | |||||||
[3] | In the third quarter of 2013, an existing group annuity contract converted from a participating to a non-participating contract. Upon conversion, we recorded $54.1 million of non-cash group annuity conversion premium for this contract and a corresponding $54.1 million non-cash benefit expense on group annuity conversion for this contract. |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Operating Earnings (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2008 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reconciliation [Abstract] | ||||||||||
Operating Earnings | $561.80 | [1],[2] | $523.20 | [1],[2] | $1,606.20 | [1],[2] | $1,452.60 | [1],[2] | ||
Transaction and integration-related costs, after-tax | -34.6 | -12.5 | -140.6 | -12.5 | ||||||
Net realized capital (losses) gains, net of tax | -8.6 | 11.5 | -8.9 | 50.7 | ||||||
Net income | 518.6 | 499.2 | 1,544.70 | 1,467.80 | ||||||
Transaction and integration-related costs, pretax | 51.2 | 13.8 | 189.6 | |||||||
Reduction of reserve for anticipated future losses on discontinued products, after tax | 0 | 0 | 55.9 | 0 | ||||||
Reversal of allowance and gain on sale of reinsurance recoverable, net of tax | 0 | 0 | 32.1 | 0 | ||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | 0 | -23 | 0 | -23 | ||||||
Reduction of reserve for anticipated future losses on discontinued products | 0 | 0 | 86 | 0 | ||||||
Establishment of allowance on reinsurance recoverable net of tax | 27.4 | |||||||||
Establishment of allowance on reinsurance recoverable pretax | 42.2 | |||||||||
Reversal of allowance on reinsurance recoverable, net of tax | 27.4 | |||||||||
Reversal of allowance reinsurance recoverable, pretax | 42.2 | |||||||||
Gain on sale of reinsurance recoverable, net of tax | 4.7 | |||||||||
Gain on sale of reinsurance recoverable, pretax | 7.2 | |||||||||
Loss on early extinguishment of long-term debt | $0 | $35.40 | $0 | $35.40 | ||||||
[1] | Operating earnings (loss) excludes net realized capital gains or losses and the other items described in the reconciliation below. | |||||||||
[2] | In addition to net realized capital gains (losses), the following items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance:b"We incurred transaction and integration-related costs related to the acquisition of Coventry of $34.6 million ($51.2 million pretax) and $140.6 million ($189.6 million pretax) during the three and nine months ended September 30, 2013, respectively, and $12.5 millionB ($13.8 million pretax) during the three and nine months ended September 30, 2012. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Effective Date, the negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Effective Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings.b"We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 17 beginning on page 36 for additional information on the reduction of the reserve for anticipated future losses on discontinued products.b"In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In the second quarter of 2013, we sold our claim against Lehman Re to an unrelated third party including the reinsurance recoverable and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we released the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue.b"In the third quarter of 2012, we incurred a loss on the early extinguishment of long-term debt of $23.0 million ($35.4 million pretax) related to repurchases of certain of our outstanding senior notes. |
Reinsurance_Details
Reinsurance (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2008 | Mar. 31, 2013 |
Reinsurance Disclosures [Abstract] | |||
Collateralized excess of loss on resinsurance coverage | $150 | ||
Establishment of allowance on reinsurance recoverable net of tax | 27.4 | ||
Establishment of allowance on reinsurance recoverable pretax | 42.2 | ||
Statement [Line Items] | |||
Reversal of allowance on reinsurance recoverable, net of tax | 27.4 | ||
Reversal of allowance reinsurance recoverable, pretax | 42.2 | ||
Gain on sale of reinsurance recoverable, net of tax | 4.7 | ||
Gain on sale of reinsurance recoverable, pretax | $7.20 |
Discontinued_Products_Details
Discontinued Products (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Reduction of reserve for anticipated future losses on discontinued products, after tax | $0 | $0 | $55.90 | $0 | ||||
Reserve For Discontinued Products [Roll Forward] | ||||||||
Operating income (loss) | 806.7 | 774.7 | 2,405.10 | 2,255.70 | ||||
Reduction of reserve for anticipated future losses on discontinued products | 0 | 0 | -86 | 0 | ||||
Assets: | ||||||||
Investments | 22,535 | 22,535 | 21,920.10 | |||||
Cash Collateral for Borrowed Securities | 550.2 | 550.2 | 47.1 | |||||
Total assets | 49,252.90 | 49,252.90 | 41,494.50 | |||||
Liabilities: | ||||||||
Policyholders' funds | 1,231.20 | 1,231.20 | 1,364 | |||||
Collateral payable under securities loan agreements | 550.2 | 550.2 | 47.1 | |||||
Total liabilities | 35,583.40 | 35,583.40 | 31,065.30 | |||||
Discontinued Products [Member] | ||||||||
Reserve For Discontinued Products [Roll Forward] | ||||||||
Reserve, beginning of period | 978.5 | [1] | 896.3 | |||||
Operating income | -8.5 | -5.1 | ||||||
Net realized capital gains | 73.7 | 55.2 | ||||||
Reduction of reserve for anticipated future losses on discontinued products | -86 | 0 | ||||||
Reserve, end of period | 957.7 | [1] | 946.4 | 957.7 | [1] | 946.4 | ||
Assets: | ||||||||
Investments | 3,425 | [1] | 3,425 | [1] | 3,675.50 | [1] | ||
Other Assets | 101 | [1] | 101 | [1] | 79.2 | [1] | ||
Cash Collateral for Borrowed Securities | 151 | [1] | 151 | [1] | 3.8 | [1] | ||
Current and deferred income taxes | 25.2 | [1] | 25.2 | [1] | 19.3 | [1] | ||
Receivable from continuing products | 525.1 | [1],[2] | 525.1 | [1],[2] | 556 | [1],[2] | ||
Total assets | 4,227.30 | [1] | 4,227.30 | [1] | 4,333.80 | [1] | ||
Liabilities: | ||||||||
Future Policy Benefits | 2,795.30 | [1] | 2,795.30 | [1] | 2,857.60 | [1] | ||
Policyholders' funds | 0 | [1] | 0 | [1] | 6.6 | [1] | ||
Reserve for anticipated future losses on discontinued products | 957.7 | [1] | 946.4 | 957.7 | [1] | 946.4 | ||
Collateral payable under securities loan agreements | 151.1 | [1] | 151.1 | [1] | 3.8 | [1] | ||
Other Liabilities | 323.2 | [1],[3] | 323.2 | [1],[3] | 487.3 | [1],[3] | ||
Total liabilities | 4,227.30 | [1] | 4,227.30 | [1] | 4,333.80 | [1] | ||
Scheduled Contract Maturities, Settlements And Benefit Payments | 98 | 99 | 296 | 300 | ||||
Debt And Equity Securities Available For Sale [Member] | ||||||||
Assets: | ||||||||
Investments | 19,258.90 | 19,258.90 | 18,827.80 | |||||
Debt And Equity Securities Available For Sale [Member] | Discontinued Products [Member] | ||||||||
Assets: | ||||||||
Investments | 2,326.90 | [1] | 2,326.90 | [1] | 2,515.30 | [1] | ||
Mortgage Loans [Member] | ||||||||
Assets: | ||||||||
Investments | 1,556.20 | 1,556.20 | 1,643.60 | |||||
Mortgage Loans [Member] | Discontinued Products [Member] | ||||||||
Assets: | ||||||||
Investments | 407.2 | [1] | 407.2 | [1] | 448.6 | [1] | ||
Other Investments [Member] | ||||||||
Assets: | ||||||||
Investments | 1,719.90 | 1,719.90 | 1,448.70 | |||||
Other Investments [Member] | Discontinued Products [Member] | ||||||||
Assets: | ||||||||
Investments | $690.90 | [1] | $690.90 | [1] | $711.60 | [1] | ||
[1] | Assets supporting the discontinued products are distinguished from assets supporting continuing products. | |||||||
[2] | At the time of discontinuance, a receivable from Large Case Pensions' continuing products was established on the discontinued products balance sheet. This receivable represented the net present value of anticipated cash shortfalls in the discontinued products, which will be funded from continuing products. Interest on the receivable is accrued at the discount rate that was used to calculate the reserve. The offsetting payable, on which interest is similarly accrued, is reflected in continuing products. Interest on the payable generally offsets investment income on the assets available to fund the shortfall. These amounts are eliminated in consolidation. | |||||||
[3] | Net unrealized capital gains on the available-for-sale debt securities are included in other liabilities and are not reflected in consolidated shareholdersb equity. |