Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Entity Information [Line Items] | ' |
Entity Registrant Name | 'AETNA INC /PA/ |
Entity Central Index Key | '0001122304 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 30-Sep-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 351.7 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenue: | ' | ' | ' | ' | ||||
Health care premiums | $12,588.40 | $11,025.20 | $36,916.20 | $28,512.30 | ||||
Other premiums | 538.8 | 525.9 | 1,652.10 | 1,561.50 | ||||
Group Annuity Contract Conversion Premium | 0 | 54.1 | 0 | 54.1 | ||||
Fees and other revenue | 1,337.70 | [1] | 1,233.10 | [1] | 3,876 | [1] | 3,326.10 | [1] |
Net investment income | 234.6 | 210 | 707.1 | 670.1 | ||||
Net realized capital gains (losses) | 28.3 | -12.7 | 80.6 | -12.2 | ||||
Total revenue | 14,727.80 | 13,035.60 | 43,232 | 34,111.90 | ||||
Benefits and expenses: | ' | ' | ' | ' | ||||
Health care costs | 10,354.50 | [2] | 9,161.90 | [2] | 30,245.60 | [2] | 23,548.30 | [2] |
Current and future benefits | 521.6 | 557 | 1,625.90 | 1,655.40 | ||||
Benefit Expense On Group Annuity Contract Conversion | 0 | 54.1 | 0 | 54.1 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Selling expenses | 422.3 | 353.9 | 1,238.10 | 983.3 | ||||
General and administrative expenses | 2,292.40 | [3] | 1,950.60 | [3] | 6,528.20 | [3] | 5,154.80 | [3] |
Total operating expenses | 2,714.70 | 2,304.50 | 7,766.30 | 6,138.10 | ||||
Interest expense | 80.6 | 86.1 | 247.5 | 247.4 | ||||
Amortization of other acquired intangible assets | 59.5 | 65.3 | 183.6 | 149.5 | ||||
Loss on early extinguishment of long-term debt | 0 | 0 | 91.9 | 0 | ||||
Reduction of reserve for anticipated future losses on discontinued products | 0 | 0 | 0 | -86 | ||||
Total benefits and expenses | 13,730.90 | 12,228.90 | 40,160.80 | 31,706.80 | ||||
Income before income taxes | 996.9 | 806.7 | 3,071.20 | 2,405.10 | ||||
Income taxes: | ' | ' | ' | ' | ||||
Current | 430.4 | 283.5 | 1,199.40 | 826 | ||||
Deferred | -32.3 | 4.2 | 56.4 | 36 | ||||
Total income taxes | 398.1 | 287.7 | 1,255.80 | 862 | ||||
Net Income including non-controlling interests | 598.8 | 519 | 1,815.40 | 1,543.10 | ||||
Less: Net income (loss) attributable to non-controlling interests | 4.3 | 0.4 | 6.6 | -1.6 | ||||
Net income attributable to Aetna | 594.5 | 518.6 | 1,808.80 | 1,544.70 | ||||
Earnings per common share: | ' | ' | ' | ' | ||||
Basic | $1.68 | $1.40 | $5.06 | $4.39 | ||||
Diluted | $1.67 | $1.38 | $5.01 | $4.35 | ||||
Administrative Services Contract Member Co Payments And Plan Sponsor Reimbursements | 26.4 | 21.7 | 74.6 | 62.3 | ||||
Pharmaceutical And Processing Costs | 323.4 | 286.3 | 914.3 | 834 | ||||
Insured Member Co Payments | $25.90 | $25.90 | $83.80 | $85 | ||||
[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 $26.4 million and $74.6 million (net of pharmaceutical and processing costs of $323.4 million and $914.3 million) for the three and nine months ended September 30, 2014, respectively, and $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. | |||||||
[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 $83.8 million for the three and nine months ended September 30, 2014, respectively, and $25.9 million and $85.0 million for the three and nine months ended September 30, 2013, respectively. | |||||||
[3] | The three and nine months ended September 30, 2014 include $35.3 million and $154.8 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. The three and nine months ended September 30, 2013 include $51.2 million and $171.4 million, respectively, of transaction and integration-related costs related to the acquisition of Coventry, including advisory, legal and other professional services fees and transaction-related payments. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Net Income including non-controlling interests | $598.80 | $519 | $1,815.40 | $1,543.10 | ||||
Other comprehensive (loss) income | -74.2 | 18.9 | 181.8 | -422.7 | ||||
Comprehensive Income including non-controlling interests | 524.6 | 537.9 | 1,997.20 | 1,120.40 | ||||
Comprehensive income (loss) attributable to non-controlling interests | 4.3 | 0.4 | 6.6 | -1.6 | ||||
Comprehensive Income attributable to Aetna | 520.3 | 537.5 | 1,990.60 | 1,122 | ||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ' | ' | ' | ' | ||||
Net unrealized gains (losses) | -4.5 | [1] | -6.3 | [1] | -1.2 | [1] | -40.8 | [1] |
Less: reclassification of gains (losses) to earnings | -1.8 | [1] | -2 | [1] | 0.2 | [1] | -20.6 | [1] |
Other comprehensive (loss) income | -2.7 | [1] | -4.3 | [1] | -1.4 | [1] | -20.2 | [1] |
Other Securities [Member] | ' | ' | ' | ' | ||||
Net unrealized gains (losses) | -63.5 | -7.8 | 212.5 | -481.1 | ||||
Less: reclassification of gains (losses) to earnings | 5 | -14.1 | 6.2 | -17.2 | ||||
Other comprehensive (loss) income | -68.5 | 6.3 | 206.3 | -463.9 | ||||
Foreign Currency and Derivative Gain (Loss) [Member] | ' | ' | ' | ' | ||||
Net unrealized gains (losses) | -11 | 4 | -36 | 22.9 | ||||
Less: Foreign currency and derivatives reclassification of losses to earnings | -0.9 | -0.9 | 8.3 | -2.6 | ||||
Other comprehensive (loss) income | -10.1 | 4.9 | -44.3 | 25.5 | ||||
Pension and OPEB Plan [Member] | ' | ' | ' | ' | ||||
Amortization of net actuarial losses | 7.8 | 12.7 | 23.2 | 37.9 | ||||
Amortization of prior service cost | -0.7 | -0.7 | -2 | -2 | ||||
Other comprehensive (loss) income | $7.10 | $12 | $21.20 | $35.90 | ||||
[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_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Paranthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | ($6.90) | [1] | ($9.70) | [1] | ($1.80) | [1] | ($62.80) | [1] |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | -2.8 | [1] | -3.1 | [1] | 0.3 | [1] | -31.7 | [1] |
Other Securities [Member] | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | -97.7 | -12 | 326.9 | -740.1 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | 7.6 | -21.6 | 9.5 | -26.4 | ||||
Foreign Currency and Derivative Gain (Loss) [Member] | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | -16.9 | 6.1 | -55.4 | 35.2 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, before Tax | -1.4 | -1.4 | 12.8 | -4 | ||||
Pension and OPEB Plan [Member] | ' | ' | ' | ' | ||||
Amortization of net actuarial losses, before tax | -11.9 | -19.6 | -35.7 | -58.3 | ||||
Amortization of prior service credit, before tax | $1.10 | $1.10 | $3.10 | $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, 2014 | Dec. 31, 2013 | ||
Current assets: | ' | ' | ||
Cash and cash equivalents | $1,707,100,000 | $1,412,300,000 | ||
Investments | 2,462,000,000 | 2,063,800,000 | ||
Premiums receivable, net | 1,414,200,000 | 1,331,200,000 | ||
Other receivables, net | 1,987,400,000 | 1,780,800,000 | ||
Accrued investment income | 217,700,000 | 211,100,000 | ||
Collateral received under securities loan agreements | 870,300,000 | 792,600,000 | ||
Income taxes receivable | 29,400,000 | 69,200,000 | ||
Deferred income taxes | 501,500,000 | 521,500,000 | ||
Other current assets | 2,275,300,000 | 1,536,400,000 | ||
Total current assets | 11,464,900,000 | 9,718,900,000 | ||
Long-term investments | 21,871,500,000 | 20,935,000,000 | ||
Reinsurance recoverables | 757,200,000 | 782,700,000 | ||
Goodwill | 10,295,200,000 | 10,227,500,000 | ||
Other acquired intangible assets, net | 1,934,100,000 | 2,094,100,000 | ||
Property and equipment, net | 668,900,000 | 721,900,000 | ||
Other long-term assets | 1,632,000,000 | 1,419,200,000 | ||
Separate Account Assets | 4,401,800,000 | 3,972,500,000 | ||
Total assets | 53,025,600,000 | 49,871,800,000 | ||
Current liabilities: | ' | ' | ||
Health care costs payable | 5,592,800,000 | 4,547,400,000 | ||
Future policy benefits | 713,700,000 | 734,400,000 | ||
Unpaid claims | 715,000,000 | 705,400,000 | ||
Unearned premiums | 554,900,000 | 458,700,000 | ||
Policyholders' funds | 1,955,700,000 | 1,727,300,000 | ||
Collateral payable under securities loan agreements | 870,300,000 | 792,600,000 | ||
Short-term debt | 75,000,000 | 0 | ||
Current portion of long-term debt | 232,100,000 | [1] | 387,300,000 | [1] |
Accrued expenses and other current liabilities | 3,923,100,000 | 3,226,900,000 | ||
Total current liabilities | 14,632,600,000 | 12,580,000,000 | ||
Future policy benefits | 6,490,900,000 | 6,656,800,000 | ||
Unpaid claims | 1,654,100,000 | 1,619,300,000 | ||
Policyholders' funds | 1,194,300,000 | 1,188,000,000 | ||
Long-term debt, less current portion | 7,606,300,000 | 7,865,300,000 | ||
Deferred income taxes | 1,033,300,000 | 864,200,000 | ||
Other long-term liabilities | 1,029,900,000 | 1,047,500,000 | ||
Separate Accounts liabilities | 4,401,800,000 | 3,972,500,000 | ||
Total liabilities | 38,043,200,000 | 35,793,600,000 | ||
Commitments and contingencies (Note 13) | ' | ' | ||
Shareholders' equity: | ' | ' | ||
Common stock ($.01 par value; 2.6 billion shares authorized and 351.7 million shares issued and outstanding in 2014; 2.6 billion shares authorized and 362.2 million shares issued and outstanding in 2013) and additional paid-in capital | 4,501,400,000 | 4,382,200,000 | ||
Retained earnings | 11,150,100,000 | 10,555,400,000 | ||
Accumulated other comprehensive loss | -730,300,000 | -912,100,000 | ||
Total Aetna shareholders' equity | 14,921,200,000 | 14,025,500,000 | ||
Non-controlling Interests | 61,200,000 | 52,700,000 | ||
Total equity | 14,982,400,000 | 14,078,200,000 | ||
Total liabilities and equity | $53,025,600,000 | $49,871,800,000 | ||
[1] | At September 30, 2014, our 6.125% senior notes due January 2015 were classified as current in the accompanying consolidated balance sheet. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Paranthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | 351,700,000 | 362,200,000 |
Common Stock, Shares, Outstanding | 351,700,000 | 362,200,000 |
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] |
In Millions, except Share data, unless otherwise specified | |||||||
Balance at beginning of period at Dec. 31, 2012 | ' | ' | $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 | ' | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Aetna | 1,544.70 | 0 | 0 | 1,544.70 | 0 | 1,544.70 | ' |
Net income (loss) 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 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Acquisitions | 3,064.60 | ' | 3,064.60 | 0 | 0 | 3,064.60 | 0 |
Common shares issued for benefit plans, including tax benefits | 196.7 | ' | 196.7 | 0 | 0 | 196.7 | 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) | ' | -16,200,000 | ' | ' | ' | ' | ' |
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 | ' | ' | 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 | ' | ' | ' | ' | ' |
Balance at beginning of period at Dec. 31, 2013 | 14,025.50 | ' | 4,382.20 | 10,555.40 | -912.1 | 14,025.50 | ' |
Total equity at beginning of period at Dec. 31, 2013 | 14,078.20 | ' | ' | ' | ' | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest at beginning of period at Dec. 31, 2013 | 52.7 | ' | ' | ' | ' | ' | 52.7 |
Balance at beginning of period (in shares) at Dec. 31, 2013 | 362,200,000 | 362,200,000 | ' | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Aetna | 1,808.80 | 0 | 0 | 1,808.80 | 0 | 1,808.80 | ' |
Net income (loss) attributable to non-controlling interest | 6.6 | ' | ' | ' | ' | ' | 6.6 |
Net Income including non-controlling interests | 1,815.40 | ' | ' | ' | ' | ' | ' |
Other increases (decreases) in noncontrolling interests | 1.9 | 0 | 0 | 0 | 0 | 0 | 1.9 |
Other comprehensive (loss) income | 181.8 | 0 | 0 | 0 | 181.8 | 181.8 | 0 |
Common shares issued for benefit plans, including tax benefits | 119.3 | ' | 119.3 | 0 | 0 | 119.3 | 0 |
Common shares issued for benefit plans, including tax benefits (in shares) | ' | 2,500,000 | ' | ' | ' | ' | ' |
Repurchases of common shares | -975 | ' | -0.1 | -974.9 | 0 | -975 | 0 |
Repurchases of common shares (in shares) | -13,000,000 | -13,000,000 | ' | ' | ' | ' | ' |
Dividends declared | -239.2 | 0 | 0 | -239.2 | 0 | -239.2 | 0 |
Total equity at end of period at Sep. 30, 2014 | 14,982.40 | ' | ' | ' | ' | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest at end of period at Sep. 30, 2014 | 61.2 | ' | ' | ' | ' | ' | 61.2 |
Balance at end of period at Sep. 30, 2014 | $14,921.20 | ' | $4,501.40 | $11,150.10 | ($730.30) | $14,921.20 | ' |
Balance at end of period (in shares) at Sep. 30, 2014 | 351,700,000 | 351,700,000 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net Income including non-controlling interests | $1,815.40 | $1,543.10 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Net realized capital (gains) losses | -80.6 | 12.2 |
Depreciation and amortization | 467.7 | 406.5 |
Debt fair value amortization | -42.9 | -24.2 |
Equity in earnings of affiliates, net | -31.8 | -18.2 |
Stock-based compensation expense | 124.2 | 90.6 |
Reduction of reserve for anticipated future losses on discontinued products | 0 | -86 |
Reversal of allowance and gain on sale of reinsurance recoverable | 0 | -49.4 |
Amortization of net investment premium | 54.3 | 38.1 |
Loss on early extinguishment of long-term debt | 91.9 | 0 |
Changes in assets and liabilities: | ' | ' |
Accrued investment income | -6.6 | 9.4 |
Premiums due and other receivables | -395.7 | -308.5 |
Income taxes | 107.9 | 99.4 |
Other assets and other liabilities | 194 | -38.1 |
Health care and insurance liabilities | 784 | -16.9 |
Other, net | -3.1 | -3.4 |
Net cash provided by operating activities | 3,078.70 | 1,654.60 |
Cash flows used for investing activities: | ' | ' |
Proceeds from sales and maturities of investments | 6,360.30 | 11,037.90 |
Cost of investments | -7,150.80 | -10,219.10 |
Additions to property, equipment and software | -261.1 | -331.6 |
Cash used for acquisitions, net of cash acquired | -70.7 | -1,635.90 |
Other, net | 10 | 2.5 |
Net cash used for investing activities | -1,112.30 | -1,146.20 |
Cash flows used for financing activities: | ' | ' |
Repayment of long-term debt | -1,214.80 | 0 |
Issuance of long-term debt | 741.9 | 0 |
Net issuance of short-term debt | 75 | 0 |
Deposits and interest credited for investment contracts | 3.4 | 3.4 |
Withdrawals of investment contracts | -2.1 | -9.7 |
Common Shares Issued Under Benefit Plans | -36 | 39 |
Stock-based compensation tax benefits | 25.7 | 62.9 |
Common shares repurchased | -975 | -957.7 |
Dividends paid to shareholders | -241.6 | -205.2 |
Collateral on interest rate swaps | -49.9 | 32.6 |
Proceeds from (Payments to) Noncontrolling Interests | 1.8 | 29.5 |
Net cash used for financing activities | -1,671.60 | -1,005.20 |
Net increase (decrease) in cash and cash equivalents | 294.8 | -496.8 |
Cash and cash equivalents, beginning of period | 1,412.30 | 2,579.20 |
Cash and cash equivalents, end of period | 1,707.10 | 2,082.40 |
Supplemental cash flow information: | ' | ' |
Interest paid | 260.2 | 229.6 |
Income taxes paid | $1,122.20 | $699.50 |
Organization
Organization | 9 Months Ended | |
Sep. 30, 2014 | ||
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 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 geographies. | |
• | Group Insurance primarily includes group life insurance and group disability products. Group life insurance 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 products (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 16 beginning on page 35 for additional information). | |
On May 7, 2013 (the “Acquisition Date”), 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 9 for additional information. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2014 | ||
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 2013 Annual Report on Form 10-K (our “2013 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 2013 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, 2014 through the date the financial statements were issued and determined there were no other items to disclose other than as disclosed in Note 11 beginning on page 28. | ||
Reclassifications | ||
Certain reclassifications were made to 2013 financial information to conform with the 2014 presentation. | ||
Principles of Consolidation | ||
The accompanying 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. | ||
Accounting for certain provisions of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, “Health Care Reform” or “ACA”) | ||
We are participating in certain public health insurance exchanges established pursuant to Health Care Reform. Under regulations established by the U.S. Department of Health and Human Services (“HHS”), HHS pays us a portion of the premium (“Premium Subsidy”) and/or a portion of the health care costs (“Cost Sharing Subsidy”) for low-income individual members. In addition, HHS administers certain risk management programs as described below. | ||
We recognize monthly premiums received from members and the Premium Subsidy as premium revenue ratably over the contract period. The Cost Sharing Subsidy offsets health care costs when incurred. We record a liability if the Cost Sharing Subsidy is paid in advance or a receivable if incurred health care costs exceed the Cost Sharing Subsidy received to date. | ||
Accounting for Health Care Reform’s Reinsurance, Risk Adjustment and Risk Corridor (the “3Rs”) | ||
Reinsurance | ||
Health Care Reform established a temporary three-year reinsurance program, whereby all issuers of major medical commercial insurance products and self-insured plan sponsors are required to contribute funding in amounts set by HHS. Funds collected will be utilized to reimburse issuers’ high claims costs incurred for qualified individual members. The expense related to this required funding is reflected in general and administrative expenses for all of our insurance products with the exception of products associated with qualified individual members; this expense for qualified individual members is reflected as a reduction of premium revenue. When annual claim costs incurred by our qualified individual members exceed a specified attachment point, we are entitled to certain reimbursements from this program. We record a receivable and offset health care costs to reflect our estimate of these recoveries. As of September 30, 2014, we recorded a receivable under the temporary three-year reinsurance program of approximately $162 million. | ||
Risk Adjustment | ||
Health Care Reform established a permanent risk adjustment program to transfer funds from qualified individual and small group insurance plans with below average risk scores to those respective plans with above average risk scores. Based on the risk of our qualified plan members relative to the average risk of members of other qualified plans in comparable markets, we estimate our ultimate 2014 risk adjustment receivable or payable and reflect the pro-rata year-to-date impact as an adjustment to our premium revenue. | ||
Risk Corridor | ||
Health Care Reform established a temporary three-year risk sharing program for qualified individual and small group insurance plans. Under this program we make (or receive) a payment to (or from) HHS based on the ratio of allowable costs to target costs (as defined by Health Care Reform). We record a risk corridor receivable or payable as an adjustment to premium revenue on a pro-rata year-to-date basis based on our estimate of the ultimate 2014 risk sharing amount. | ||
Collectively, as of September 30, 2014, we recorded an aggregate net payable of approximately $97 million under the risk adjustment and risk corridor programs. | ||
We will perform a final reconciliation and settlement with HHS of the 2014 Cost Sharing Subsidy and 3Rs during 2015. | ||
New Accounting Standards | ||
Fees Paid to the Federal Government by Health Insurers | ||
Effective January 1, 2014, we adopted new accounting guidance relating to the recognition and income statement reporting of the mandated fee to be paid to the federal government by health insurers. This guidance applies to the new health insurer fee (“HIF”) included in Health Care Reform. This new accounting guidance resulted in the establishment on January 1, 2014, of a liability for our portion of the entire estimated 2014 annual HIF. This amount is reflected in accrued expenses and other liabilities with a corresponding amount reflected in other current assets. The estimated annual HIF is amortized into general and administrative expenses on a straight-line basis with a corresponding reduction in other current assets. The HIF for 2014 was paid in September 2014 and is not tax deductible. | ||
Amendments to the Scope, Measurement and Disclosure Requirements of Investment Companies | ||
Effective January 1, 2014, we adopted new accounting guidance relating to the approach for determining whether an entity is considered an investment company for accounting purposes. This guidance clarified the characteristics and set measurement and disclosure requirements for an investment company for accounting purposes. The adoption of this new guidance did not have an impact on our financial position or operating results. | ||
Future Application of Accounting Standards | ||
Accounting for Investments in Qualified Affordable Housing Projects | ||
Effective January 1, 2015, we will be permitted to make an accounting policy election to adopt new accounting guidance relating to the recognition of amortization of investments in qualified affordable housing projects. The guidance sets forth a new method of measurement, referred to as the proportional amortization method, under which income and expense items related to qualified affordable housing projects would be recorded in the income taxes line item. If we elect to adopt this new guidance, it is not expected to have a material impact on our financial position or operating results. | ||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
Effective January 1, 2015, we will adopt amended accounting guidance related to when an entity reports a discontinued operation in its financial position and operating results. The guidance clarifies that a discontinued operation is required to be reported if the disposal represents a significant shift that has (or will have) a major effect on an entity’s operations and financial results when a component of an entity or a group of components of an entity are either classified as held for sale or are disposed of by sale. The amendments also require additional disclosures about discontinued operations. If we have a discontinued operation after the effective date, these changes could result in increased reporting and disclosure requirements in our financial statements. | ||
Revenue from Contracts with Customers | ||
Effective January 1, 2017, we will adopt new accounting guidance related to revenue recognition from contracts with customers. This new guidance removes most industry-specific revenue recognition requirements (insurance contracts are not covered by this guidance) and requires that an entity recognize revenue for the transfer of goods or services to a customer at an amount that reflects the consideration to which an entity expects to be entitled in exchange for the goods or services. The new guidance also requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The new guidance allows an entity to adopt the standard either through a full retrospective approach or a modified retrospective approach with a cumulative effect adjustment to retained earnings. We are still assessing the impact of this standard on our financial position and operating results in addition to evaluating the transition method we will use when we adopt this standard. | ||
Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | ||
Effective January 1, 2015, we will adopt new accounting guidance related to the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. This guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with other typical repurchase agreements, resulting in these transactions generally being accounted for as secured borrowings. The guidance also requires additional disclosures about repurchase agreements and other similar transactions. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. | ||
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | ||
Effective January 1, 2016, we will adopt new accounting guidance related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This guidance clarifies that awards with these provisions should be treated as performance conditions that affect vesting, and do not impact the award’s estimated grant-date fair value. Early adoption for this new guidance is permitted. The adoption of this new guidance will not have an impact on our financial position or operating results. | ||
Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern | ||
Effective December 31, 2016, we will adopt amended accounting guidance related to management’s evaluation about whether there is substantial doubt about an entity’s ability to continue as a going concern and the related disclosures. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. |
Acquisitions_Completed_Disposi
Acquisitions, Completed Disposition | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisitions; Completed Disposition | ' | ||||
3 | Acquisitions; Completed Disposition | ||||
Acquisition of the InterGlobal Group | |||||
In April 2014, we acquired the InterGlobal group (“InterGlobal”), a company that specializes in international private medical insurance for groups and individuals in the Middle East, Asia, Africa and Europe. The purchase price was not material, and the goodwill related to this acquisition was assigned to our Health Care segment. | |||||
Acquisition of Coventry | |||||
On the Acquisition Date, we acquired Coventry in a transaction (the “Merger”) valued at approximately $8.7 billion, including the $1.8 billion fair value of Coventry’s outstanding long-term debt. | |||||
Pro Forma Impact of the Acquisition of Coventry | |||||
The following table presents supplemental pro forma information for the nine months ended September 30, 2013, as if the Merger had occurred on January 1, 2012. The unaudited 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 unaudited 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. | |||||
Nine Months Ended | |||||
(Millions, except per common share data) | 30-Sep-13 | ||||
Total revenue | $ | 38,906.60 | |||
Net income attributable to Aetna | 1,775.30 | ||||
Earnings per share: | |||||
Basic | $ | 4.73 | |||
Diluted | 4.68 | ||||
The unaudited pro forma consolidated results for the nine months ended September 30, 2013 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. | ||||
• | Interest expense was reduced for the amortization of the fair value adjustment to long-term debt. | ||||
• | Elimination of transaction-related costs incurred by Aetna and Coventry during 2013. | ||||
• | Adjustment of the above pro forma adjustments for the applicable tax impact. | ||||
• | Conforming adjustments to align Coventry’s presentation to Aetna’s accounting policies. | ||||
• | 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 the transaction 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, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Common Share | ' | |||||||||||||||
4 | Earnings Per Common Share | |||||||||||||||
Basic earnings per share (“EPS”) is computed by dividing net income attributable to Aetna 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, 2014 and 2013 are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions, except per common share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income attributable to Aetna | $ | 594.5 | $ | 518.6 | $ | 1,808.80 | $ | 1,544.70 | ||||||||
Weighted average shares used to compute basic EPS | 353.2 | 371.1 | 357.2 | 351.8 | ||||||||||||
Dilutive effect of outstanding stock-based compensation awards | 3.6 | 4.1 | 3.5 | 3.7 | ||||||||||||
Weighted average shares used to compute diluted EPS | 356.8 | 375.2 | 360.7 | 355.5 | ||||||||||||
Basic EPS | $ | 1.68 | $ | 1.4 | $ | 5.06 | $ | 4.39 | ||||||||
Diluted EPS | $ | 1.67 | $ | 1.38 | $ | 5.01 | $ | 4.35 | ||||||||
The stock-based compensation awards excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2014 and 2013 are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Stock appreciation rights (“SARs”) (1) | — | — | 0.4 | 2.2 | ||||||||||||
Market stock units (“MSUs”) (2) | — | 0.4 | 0.1 | 0.4 | ||||||||||||
Performance stock units (“PSUs”) (2) | 0.8 | 0.9 | 0.8 | 0.8 | ||||||||||||
Performance stock appreciation rights (“PSARs”) (2) | 0.7 | 0.7 | 0.4 | 0.2 | ||||||||||||
(1) | SARs are excluded from 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). | |||||||||||||||
(2) | PSUs, certain MSUs with performance conditions and PSARs are excluded from the calculation of diluted EPS if all necessary performance conditions have not been satisfied at the end of the reporting period. | |||||||||||||||
All outstanding stock options were included in the calculation of diluted EPS for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
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, net of any subsequent share repurchases, and included in the calculation of weighted average shares used to compute basic EPS for the entire three and nine months ended September 30, 2014, as well as for the entire three months ended September 30, 2013, and from the Acquisition Date through September 30, 2013 for the nine months ended September 30, 2013, and weighted accordingly. |
Operating_Expenses
Operating Expenses | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Operating Expenses [Abstract] | ' | |||||||||||||||
Operating Expenses | ' | |||||||||||||||
5. Operating Expenses | ||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, 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) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Selling expenses | $ | 422.3 | $ | 353.9 | $ | 1,238.10 | $ | 983.3 | ||||||||
General and administrative expenses: | ||||||||||||||||
Salaries and related benefits | 1,134.40 | 1,119.40 | 3,354.00 | 2,914.50 | ||||||||||||
Other general and administrative expenses (1) (2) (3) | 1,158.00 | 831.2 | 3,174.20 | 2,240.30 | ||||||||||||
Total general and administrative expenses (4) | 2,292.40 | 1,950.60 | 6,528.20 | 5,154.80 | ||||||||||||
Total operating expenses | $ | 2,714.70 | $ | 2,304.50 | $ | 7,766.30 | $ | 6,138.10 | ||||||||
(1) | The three and nine months ended September 30, 2014 include fees mandated by the ACA comprised primarily of the HIF of $151.5 million and $454.0 million, respectively, and our estimated contribution to the funding of the reinsurance program of $80.5 million and $251.6 million, respectively. Refer to Note 2 beginning on page 6 for additional information on fees mandated by the ACA. | |||||||||||||||
(2) | In the fourth quarter of 2012, we recorded a charge of $120.0 million pretax related to the settlement of purported class action litigation regarding Aetna’s payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $103.0 million pretax. Refer to Note 13 beginning on page 30 for additional information on the termination of the settlement agreement. | |||||||||||||||
(3) | 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 of $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 reversed the related allowance thereby reducing second quarter 2013 other general and administrative expenses by $42.2 million pretax. | |||||||||||||||
(4) | The three and nine months ended September 30, 2014 include $35.3 million and $154.8 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. The three and nine months ended September 30, 2013 include $51.2 million and $171.4 million, respectively, of transaction and integration-related costs related to the acquisition of Coventry, including advisory, legal and other professional services fees and transaction-related payments. | |||||||||||||||
Refer to the reconciliation of operating earnings to net income attributable to Aetna in Note 14 beginning on page 33 for additional information. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||
6. Investments | ||||||||||||||||||||||||
Total investments at September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
(Millions) | Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||
Debt and equity securities available for sale | $ | 2,318.00 | $ | 18,620.60 | $ | 20,938.60 | $ | 1,977.40 | $ | 17,753.00 | $ | 19,730.40 | ||||||||||||
Mortgage loans | 130.9 | 1,473.20 | 1,604.10 | 84.9 | 1,464.70 | 1,549.60 | ||||||||||||||||||
Other investments | 13.1 | 1,777.70 | 1,790.80 | 1.5 | 1,717.30 | 1,718.80 | ||||||||||||||||||
Total investments | $ | 2,462.00 | $ | 21,871.50 | $ | 24,333.50 | $ | 2,063.80 | $ | 20,935.00 | $ | 22,998.80 | ||||||||||||
At September 30, 2014 and December 31, 2013, approximately $840 million and $766 million, respectively, of investments were pledged under securities loan agreements. | ||||||||||||||||||||||||
Debt and Equity Securities | ||||||||||||||||||||||||
Debt and equity securities available for sale at September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||
(Millions) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,364.50 | $ | 79 | $ | (1.2 | ) | $ | 1,442.30 | |||||||||||||||
States, municipalities and political subdivisions | 4,327.50 | 250.5 | (11.0 | ) | 4,567.00 | |||||||||||||||||||
U.S. corporate securities | 7,915.70 | 571.4 | (40.1 | ) | 8,447.00 | |||||||||||||||||||
Foreign securities | 3,285.40 | 259.5 | (13.4 | ) | 3,531.50 | |||||||||||||||||||
Residential mortgage-backed securities | 913.8 | 22.2 | (8.0 | ) | 928 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,340.30 | 62.6 | (2.2 | ) | (1) | 1,400.70 | ||||||||||||||||||
Other asset-backed securities | 517.9 | 6.4 | (2.5 | ) | (1) | 521.8 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 11.5 | — | 68.3 | ||||||||||||||||||||
Total debt securities | 19,721.90 | 1,263.10 | (78.4 | ) | 20,906.60 | |||||||||||||||||||
Equity securities | 37.3 | 0.4 | (5.7 | ) | 32 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 19,759.20 | $ | 1,263.50 | $ | (84.1 | ) | $ | 20,938.60 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,396.80 | $ | 68.7 | $ | (3.0 | ) | $ | 1,462.50 | |||||||||||||||
States, municipalities and political subdivisions | 4,118.50 | 126.6 | (82.8 | ) | 4,162.30 | |||||||||||||||||||
U.S. corporate securities | 7,559.00 | 493.7 | (110.1 | ) | 7,942.60 | |||||||||||||||||||
Foreign securities | 3,209.60 | 198.9 | (53.0 | ) | 3,355.50 | |||||||||||||||||||
Residential mortgage-backed securities | 928.4 | 16.9 | (21.1 | ) | 924.2 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,323.50 | 88.2 | (4.7 | ) | (1) | 1,407.00 | ||||||||||||||||||
Other asset-backed securities | 343.4 | 8.3 | (2.1 | ) | (1) | 349.6 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 8.6 | — | 65.4 | ||||||||||||||||||||
Total debt securities | 18,936.00 | 1,009.90 | (276.8 | ) | 19,669.10 | |||||||||||||||||||
Equity securities | 38.5 | 26.5 | (3.7 | ) | 61.3 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 18,974.50 | $ | 1,036.40 | $ | (280.5 | ) | $ | 19,730.40 | |||||||||||||||
(1) | At September 30, 2014 and December 31, 2013, we held securities for which we previously recognized $18.6 million and $22.8 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at September 30, 2014 and December 31, 2013 of $4.2 million and $6.6 million, respectively. | |||||||||||||||||||||||
(2) | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 16 beginning on page 35 for additional information on our accounting for discontinued products). At September 30, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $360.6 million and gross unrealized capital losses of $20.8 million and, at December 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 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, 2014 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 | $ | 1,177.90 | ||||||||||||||||||||||
One year through five years | 5,636.20 | |||||||||||||||||||||||
After five years through ten years | 5,693.50 | |||||||||||||||||||||||
Greater than ten years | 5,548.50 | |||||||||||||||||||||||
Residential mortgage-backed securities | 928 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,400.70 | |||||||||||||||||||||||
Other asset-backed securities | 521.8 | |||||||||||||||||||||||
Total | $ | 20,906.60 | ||||||||||||||||||||||
Mortgage-Backed and Other Asset-Backed Securities | ||||||||||||||||||||||||
All of our residential mortgage-backed securities at September 30, 2014 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, 2014, our residential mortgage-backed securities had an average credit quality rating of AAA and a weighted average duration of 4.6 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, 2014, these securities had an average credit quality rating of AA+ and a weighted average duration of 2.0 years. | ||||||||||||||||||||||||
Our other asset-backed securities have a variety of underlying collateral (e.g., automobile loans, credit card receivables, home equity loans and commercial loans). Significant market observable inputs used to value these securities include the unemployment rate, loss severity and probability of default. At September 30, 2014, these securities had an average credit quality rating of A+ and a weighted average duration of 1.8 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, 2014 and December 31, 2013 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, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 129.8 | $ | 0.5 | $ | 27.5 | $ | 0.7 | $ | 157.3 | $ | 1.2 | ||||||||||||
States, municipalities and political subdivisions | 350.6 | 2.3 | 492.2 | 8.7 | 842.8 | 11 | ||||||||||||||||||
U.S. corporate securities | 1,271.30 | 14.7 | 593 | 25.4 | 1,864.30 | 40.1 | ||||||||||||||||||
Foreign securities | 441.5 | 6.3 | 181.5 | 7.1 | 623 | 13.4 | ||||||||||||||||||
Residential mortgage-backed securities | 59.9 | 0.2 | 205.2 | 7.8 | 265.1 | 8 | ||||||||||||||||||
Commercial mortgage-backed securities | 77.4 | 0.3 | 79.7 | 1.9 | 157.1 | 2.2 | ||||||||||||||||||
Other asset-backed securities | 242.3 | 1.8 | 29.4 | 0.7 | 271.7 | 2.5 | ||||||||||||||||||
Total debt securities | 2,572.80 | 26.1 | 1,608.50 | 52.3 | 4,181.30 | 78.4 | ||||||||||||||||||
Equity securities | — | — | 8.6 | 5.7 | 8.6 | 5.7 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 2,572.80 | $ | 26.1 | $ | 1,617.10 | $ | 58 | $ | 4,189.90 | $ | 84.1 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 555.9 | $ | 2.7 | $ | 13.4 | $ | 0.3 | $ | 569.3 | $ | 3 | ||||||||||||
States, municipalities and political subdivisions | 1,779.90 | 73.1 | 132.4 | 9.7 | 1,912.30 | 82.8 | ||||||||||||||||||
U.S. corporate securities | 2,196.80 | 88 | 170 | 22.1 | 2,366.80 | 110.1 | ||||||||||||||||||
Foreign securities | 875.2 | 43.5 | 90.9 | 9.5 | 966.1 | 53 | ||||||||||||||||||
Residential mortgage-backed securities | 541.1 | 17.3 | 35 | 3.8 | 576.1 | 21.1 | ||||||||||||||||||
Commercial mortgage-backed securities | 162.4 | 4.2 | 25 | 0.5 | 187.4 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 87.8 | 1.9 | 7.7 | 0.2 | 95.5 | 2.1 | ||||||||||||||||||
Redeemable preferred securities | 4.4 | — | — | — | 4.4 | — | ||||||||||||||||||
Total debt securities | 6,203.50 | 230.7 | 474.4 | 46.1 | 6,677.90 | 276.8 | ||||||||||||||||||
Equity securities | — | — | 16.2 | 3.7 | 16.2 | 3.7 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 6,203.50 | $ | 230.7 | $ | 490.6 | $ | 49.8 | $ | 6,694.10 | $ | 280.5 | ||||||||||||
(1) | At September 30, 2014 and December 31, 2013, debt and equity securities in an unrealized capital loss position of $20.8 million and $60.3 million, respectively, and with related fair value of $581.1 million and $1.0 billion, 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, 2014, we did not intend to sell these securities, and we did not believe it was more likely than not that we would be required to sell these securities prior to anticipated recovery of their carrying value. | ||||||||||||||||||||||||
The maturity dates for debt securities in an unrealized capital loss position at September 30, 2014 were as follows: | ||||||||||||||||||||||||
Supporting discontinued and | Supporting remaining | Total | ||||||||||||||||||||||
experience-rated products | products | |||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | $ | 34.5 | $ | 0.4 | $ | 34.5 | $ | 0.4 | ||||||||||||
One year through five years | 35.1 | 0.3 | 917.7 | 6.6 | 952.8 | 6.9 | ||||||||||||||||||
After five years through ten years | 246.3 | 4.7 | 1,243.70 | 22.8 | 1,490.00 | 27.5 | ||||||||||||||||||
Greater than ten years | 281.1 | 10 | 729 | 20.9 | 1,010.10 | 30.9 | ||||||||||||||||||
Residential mortgage-backed securities | 6 | — | 259.1 | 8 | 265.1 | 8 | ||||||||||||||||||
Commercial mortgage-backed securities | 4 | 0.1 | 153.1 | 2.1 | 157.1 | 2.2 | ||||||||||||||||||
Other asset-backed securities | — | — | 271.7 | 2.5 | 271.7 | 2.5 | ||||||||||||||||||
Total | $ | 572.5 | $ | 15.1 | $ | 3,608.80 | $ | 63.3 | $ | 4,181.30 | $ | 78.4 | ||||||||||||
Net realized capital gains (losses) for the three and nine months ended September 30, 2014 and 2013, 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) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
OTTI losses on debt securities recognized in earnings | $ | (3.0 | ) | $ | (2.4 | ) | $ | (3.3 | ) | $ | (29.6 | ) | ||||||||||||
Net realized capital gains (losses), excluding OTTI losses on debt securities | 31.3 | (10.3 | ) | 83.9 | 17.4 | |||||||||||||||||||
Net realized capital gains (losses) | $ | 28.3 | $ | (12.7 | ) | $ | 80.6 | $ | (12.2 | ) | ||||||||||||||
The net realized capital gains for the three and nine months ended September 30, 2014 were primarily attributable to gains from sales of debt securities. The net realized capital gains for the nine months ended September 30, 2014 were also attributable to gains from the sales of equity securities and the recognition of a gain on the termination of interest rate swaps during the first quarter of 2014. Refer to Note 10 of Condensed Notes to Consolidated Financial Statements beginning on page 27 for more information on the termination of the outstanding interest rate swaps in the first quarter of 2014. The net realized capital losses for the three months ended September 30, 2013 were primarily attributable to losses from sales of debt securities and yield-related OTTI on debt securities. The 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 sales of other 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, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Proceeds on sales | $ | 955.3 | $ | 1,434.00 | $ | 2,979.00 | $ | 5,216.50 | ||||||||||||||||
Gross realized capital gains | 34.2 | 25 | 78.7 | 83.9 | ||||||||||||||||||||
Gross realized capital losses | 5.1 | 34.9 | 27.1 | 78.3 | ||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||
Our mortgage loans are collateralized by commercial real estate. During the three and nine months ended September 30, 2014 and 2013 we had the following activity in our mortgage loan portfolio: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
New mortgage loans | $ | 44.1 | $ | 62.8 | $ | 185 | $ | 126.4 | ||||||||||||||||
Mortgage loans fully repaid | 17.3 | 49.1 | 73.9 | 168.7 | ||||||||||||||||||||
At September 30, 2014 and December 31, 2013, we had no material problem, restructured or potential problem mortgage loans. We also had no material impairment reserves on these loans at September 30, 2014 or December 31, 2013. During the three and nine months ended September 30, 2014 and 2013, we had no mortgage loans foreclosed. | ||||||||||||||||||||||||
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 potentially 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, creditworthiness of the borrower and deal structure. Based upon our most recent assessments at September 30, 2014 and December 31, 2013, our mortgage loans were given the following credit quality indicators: | ||||||||||||||||||||||||
(In Millions, except credit ratings indicator) | September 30, | December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
1 | $ | 75.2 | $ | 69.2 | ||||||||||||||||||||
2 to 4 | 1,466.70 | 1,399.60 | ||||||||||||||||||||||
5 | 21.5 | 30.6 | ||||||||||||||||||||||
6 and 7 | 40.7 | 50.2 | ||||||||||||||||||||||
Total | $ | 1,604.10 | $ | 1,549.60 | ||||||||||||||||||||
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, 2014 and December 31, 2013 of approximately $210 million and $205 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 $5.7 billion and $5.8 billion at September 30, 2014 and December 31, 2013, respectively. The hedge fund partnership had total assets of approximately $7.1 billion and $7.0 billion at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
Non-controlling (Minority) Interests | ||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, continuing business non-controlling interests were approximately $61 million and $53 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 $4.3 million and $6.6 million for the three and nine months ended September 30, 2014, respectively. 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. These non-controlling interests did not have a material impact on our financial position or operating results. | ||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
Sources of net investment income for the three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Debt securities | $ | 198.9 | $ | 193.9 | $ | 595.2 | $ | 573.9 | ||||||||||||||||
Mortgage loans | 24.1 | 27.2 | 82.1 | 76.1 | ||||||||||||||||||||
Other investments | 22.5 | (2.2 | ) | 57.9 | 46.8 | |||||||||||||||||||
Gross investment income | 245.5 | 218.9 | 735.2 | 696.8 | ||||||||||||||||||||
Investment expenses | (10.9 | ) | (8.9 | ) | (28.1 | ) | (26.7 | ) | ||||||||||||||||
Net investment income (1) | $ | 234.6 | $ | 210 | $ | 707.1 | $ | 670.1 | ||||||||||||||||
(1) | Net investment income includes $72.5 million and $216.4 million for the three and nine months ended September 30, 2014, respectively, and $61.5 million and $210.3 million for the three and nine months ended September 30, 2013, respectively, related to investments supporting our experience-rated and discontinued products. |
Other_Comprehensive_Loss_Incom
Other Comprehensive (Loss) Income | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income | ' | ||||||||||||||||||||||||||||
7. Other Comprehensive (Loss) Income | |||||||||||||||||||||||||||||
Shareholders’ equity included the following activity in accumulated other comprehensive loss for the nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
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 | Credit | ||||||||||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 34.2 | $ | 326.8 | $ | 0.4 | $ | (1,293.8 | ) | $ | 20.3 | $ | (912.1 | ) | |||||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||||||||||
before reclassifications | (1.2 | ) | 212.5 | (36.0 | ) | — | — | 175.3 | |||||||||||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||||||||||
other comprehensive income | (.2 | ) | (2 | ) | (6.2 | ) | (2 | ) | (8.3 | ) | (3 | ) | 23.2 | (4 | ) | (2.0 | ) | (4 | ) | 6.5 | |||||||||
Other comprehensive (loss) income | (1.4 | ) | 206.3 | (44.3 | ) | 23.2 | (2.0 | ) | 181.8 | ||||||||||||||||||||
Balance at September 30, 2014 | $ | 32.8 | $ | 533.1 | $ | (43.9 | ) | $ | (1,270.6 | ) | $ | 18.3 | $ | (730.3 | ) | ||||||||||||||
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 | ) | ||||||||||||||
(1) | Represents unrealized 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. | ||||||||||||||||||||||||||||
(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 Statements 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 Statements of Income, except for the effective portion of derivatives related to interest rate swaps which are reflected in interest expense and were not material during the nine months ended September 30, 2014 or 2013. Refer to Note 10 of Condensed Notes to Consolidated Financial Statements beginning on page 27 for additional information. | ||||||||||||||||||||||||||||
(4) | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statements of Income. Refer to Note 9 of Condensed Notes to Consolidated Financial Statements beginning on page 26 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, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||||||
8. 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 attributable to Aetna 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 as 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. | ||||||||||||||||||||||||||||||||
The fair values of our Level 2 debt securities are obtained 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 review these prices to ensure they are based on observable market inputs that include, but are not limited to, quoted prices for similar assets in active markets, quoted prices for identical assets in inactive markets and inputs that are observable but not prices (for example, interest rates and credit risks). We also review the methodologies and the assumptions used to calculate prices from these observable inputs. On a quarterly basis, we select a sample of our Level 2 debt securities’ prices and compare them to prices provided by a secondary source. Variances over a specified threshold are identified and reviewed to confirm the price provided by the primary source represents an appropriate estimate of fair value. In addition, our internal investment team consistently compares the prices obtained for select Level 2 debt securities to the team’s own independent estimates of fair value for those securities. We obtained one price for each of our Level 2 debt securities and did not adjust any of these prices at September 30, 2014 or December 31, 2013. | ||||||||||||||||||||||||||||||||
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, 2014 or December 31, 2013. The total fair value of our broker quoted debt securities was approximately $115 million at September 30, 2014 and $103 million at December 31, 2013. 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 as Level 1. 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, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,232.70 | $ | 209.6 | $ | — | $ | 1,442.30 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,565.80 | 1.2 | 4,567.00 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 8,398.40 | 48.6 | 8,447.00 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,502.80 | 28.7 | 3,531.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 928 | — | 928 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,393.20 | 7.5 | 1,400.70 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 479.4 | 42.4 | 521.8 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 64.2 | 4.1 | 68.3 | ||||||||||||||||||||||||||||
Total debt securities | 1,232.70 | 19,541.40 | 132.5 | 20,906.60 | ||||||||||||||||||||||||||||
Equity securities | 8.9 | — | 23.1 | 32 | ||||||||||||||||||||||||||||
Derivatives | — | 0.2 | — | 0.2 | ||||||||||||||||||||||||||||
Total | $ | 1,241.60 | $ | 19,541.60 | $ | 155.6 | $ | 20,938.80 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 38.6 | $ | — | $ | 38.6 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,237.50 | $ | 225 | $ | — | $ | 1,462.50 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,161.00 | 1.3 | 4,162.30 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,911.40 | 31.2 | 7,942.60 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,311.60 | 43.9 | 3,355.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 924.2 | — | 924.2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,399.50 | 7.5 | 1,407.00 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 317.3 | 32.3 | 349.6 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 61.3 | 4.1 | 65.4 | ||||||||||||||||||||||||||||
Total debt securities | 1,237.50 | 18,311.30 | 120.3 | 19,669.10 | ||||||||||||||||||||||||||||
Equity securities | 17.1 | — | 44.2 | 61.3 | ||||||||||||||||||||||||||||
Derivatives | — | 49.1 | — | 49.1 | ||||||||||||||||||||||||||||
Total | $ | 1,254.60 | $ | 18,360.40 | $ | 164.5 | $ | 19,779.50 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 1.9 | $ | — | $ | 1.9 | ||||||||||||||||||||||||
There were no transfers between Levels 1 and 2 during the three or nine months ended September 30, 2014 or 2013. | ||||||||||||||||||||||||||||||||
The gross transfers into (out of) Level 3 during the three and nine months ended September 30, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Gross transfers into Level 3 | $ | 1.9 | $ | 3.8 | $ | 1.9 | $ | 3.8 | ||||||||||||||||||||||||
Gross transfers out of Level 3 | (2.0 | ) | (21.7 | ) | (15.3 | ) | (48.9 | ) | ||||||||||||||||||||||||
Net transfers out of Level 3 | $ | (.1 | ) | $ | (17.9 | ) | $ | (13.4 | ) | $ | (45.1 | ) | ||||||||||||||||||||
Gross transfers into and out of Level 3 during the three months ended September 30, 2014 primarily related to other asset-backed securities. Gross transfers out of Level 3 during the nine months ended September 30, 2014 primarily related to foreign debt securities, while gross transfers into Level 3 during the nine months ended September 30, 2014 primarily related to other asset-backed securities. 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 debt securities. The fair value of securities transferred out of Level 3 had been based on broker quotes and effective in each of the three and nine months ended September 30, 2014 and 2013 are 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 related to foreign debt securities and were primarily 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. For bank loans classified as Level 3, fair value is determined by outside brokers using their internal analyses through a combination of their knowledge of the current pricing environment and market flows. | ||||||||||||||||||||||||||||||||
Equity securities: Certain of our equity securities are carried at cost. The fair value of our cost-method investments are not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. | ||||||||||||||||||||||||||||||||
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, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,604.10 | $ | — | $ | — | $ | 1,654.80 | $ | 1,654.80 | ||||||||||||||||||||||
Bank loans | 232 | — | 219.2 | 9.7 | 228.9 | |||||||||||||||||||||||||||
Equity securities (1) | 30 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 9 | — | — | 9 | 9 | |||||||||||||||||||||||||||
Without a fixed maturity | 563.1 | — | — | 558.8 | 558.8 | |||||||||||||||||||||||||||
Long-term debt | 7,838.40 | — | 8,452.80 | — | 8,452.80 | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,549.60 | $ | — | $ | — | $ | 1,584.80 | $ | 1,584.80 | ||||||||||||||||||||||
Bank loans | 181.7 | — | 171.5 | 9.8 | 181.3 | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 8.9 | — | — | 8.9 | 8.9 | |||||||||||||||||||||||||||
Without a fixed maturity | 572.3 | — | — | 553.2 | 553.2 | |||||||||||||||||||||||||||
Long-term debt | 8,252.60 | — | 8,670.60 | — | 8,670.60 | |||||||||||||||||||||||||||
(1) | It was not practical to estimate the fair value of the cost-method investment as it represents common stock of an unlisted company. | |||||||||||||||||||||||||||||||
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 20. 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, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Debt securities | $ | 853.4 | $ | 2,467.30 | $ | 3 | $ | 3,323.70 | $ | 726.4 | $ | 2,227.00 | $ | 0.6 | $ | 2,954.00 | ||||||||||||||||
Equity securities | 182.2 | 5.7 | — | 187.9 | 188.4 | 3.3 | — | 191.7 | ||||||||||||||||||||||||
Derivatives | — | 1.5 | — | 1.5 | — | 0.8 | — | 0.8 | ||||||||||||||||||||||||
Common/collective trusts | — | 637.6 | — | 637.6 | — | 710.4 | — | 710.4 | ||||||||||||||||||||||||
Total (1) | $ | 1,035.60 | $ | 3,112.10 | $ | 3 | $ | 4,150.70 | $ | 914.8 | $ | 2,941.50 | $ | 0.6 | $ | 3,856.90 | ||||||||||||||||
(1) | Excludes $251.1 million and $115.6 million of cash and cash equivalents and other receivables at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, we had an immaterial amount of Level 3 Separate Accounts financial assets. Gross transfers of Separate Accounts financial assets out of Level 3 during the nine months ended September 30, 2013 were $4.6 million. For the three and nine months ended September 30, 2014 and 2013, 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 described in the immediately preceding sentence. | ||||||||||||||||||||||||||||||||
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, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
Recognized Assets (1) | in the Balance Sheets | |||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 0.2 | $ | 9.8 | $ | — | $ | 10 | ||||||||||||||||||||||||
Total | $ | 0.2 | $ | 9.8 | $ | — | $ | 10 | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
Total | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2014 or December 31, 2013. | ||||||||||||||||||||||||||||||||
Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
Recognized Liabilities (1) | in the Balance Sheets | |||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Paid | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 38.6 | $ | — | $ | (38.1 | ) | $ | 0.5 | |||||||||||||||||||||||
Securities lending | 870.3 | (870.3 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 908.9 | $ | (870.3 | ) | $ | (38.1 | ) | $ | 0.5 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 1.9 | $ | — | $ | (.7 | ) | $ | 1.2 | |||||||||||||||||||||||
Securities lending | 792.6 | (792.6 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 794.5 | $ | (792.6 | ) | $ | (.7 | ) | $ | 1.2 | ||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2014 or December 31, 2013. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Plans | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Pension and Other Postretirement Plans | ' | |||||||||||||||||||||||||||||||
9. 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 employee benefit (“OPEB”) plans for the three and nine months ended September 30, 2014 and 2013 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) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Amortization of prior service credit | (.2 | ) | (.1 | ) | (.4 | ) | (.3 | ) | (.9 | ) | (1.0 | ) | (2.7 | ) | (2.7 | ) | ||||||||||||||||
Interest cost | 72.1 | 67.9 | 216.3 | 203.6 | 3 | 2.8 | 8.9 | 8.3 | ||||||||||||||||||||||||
Expected return on plan assets | (105.6 | ) | (99.1 | ) | (316.7 | ) | (297.3 | ) | (.7 | ) | (.6 | ) | (2.3 | ) | (1.8 | ) | ||||||||||||||||
Recognized net actuarial losses | 11.7 | 19 | 35 | 56.6 | 0.2 | 0.6 | 0.7 | 1.7 | ||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | (22.0 | ) | $ | (12.3 | ) | $ | (65.8 | ) | $ | (37.4 | ) | $ | 1.6 | $ | 1.8 | $ | 4.6 | $ | 5.5 | ||||||||||||
We do not expect to make a voluntary cash contribution to our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Plan”) in 2014. | ||||||||||||||||||||||||||||||||
In July 2014, we announced an enhancement to the Aetna Pension Plan, whereby effective December 1, 2014, we will provide certain current and future former employees with deferred vested Aetna Pension Plan balances an election to receive a 100% lump-sum distribution. This election is a permanent addition to the Aetna Pension Plan. In addition, in July 2014, we announced a limited-time offer to certain former employees with deferred vested Aetna Pension Plan balances that they can elect a 100% lump-sum pension distribution. The limited-time offer had to be accepted by October 10, 2014, with documentation submitted by November 5, 2014, and the resulting distributions will be paid during the fourth quarter of 2014. The amount of the one-time, non-cash settlement charge, if any, associated with the limited-time offer will be dependent upon the final acceptance rate by the eligible former employees and other factors contributing to re-measurement of the Aetna Pension Plan assets and obligations. We intend to fund the resulting distributions using existing Aetna Pension Plan assets. |
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt Disclosure | ' | |||||||
10. Debt | ||||||||
The carrying value of our long-term debt at September 30, 2014 and December 31, 2013 was as follows: | ||||||||
(Millions) | September 30, | December 31, | ||||||
2014 | 2013 | |||||||
Senior notes, 6.3%, due 2014 (1) | $ | — | $ | 387.3 | ||||
Senior notes, 6.125%, due 2015 | 232.1 | 240.6 | ||||||
Senior notes, 6.0%, due 2016 | — | 748.9 | ||||||
Senior notes, 5.95%, due 2017 | 422.3 | 434.2 | ||||||
Senior notes, 1.75%, due 2017 | 249.1 | 248.9 | ||||||
Senior notes, 1.5%, due 2017 | 498.5 | 498.2 | ||||||
Senior notes, 6.5%, due 2018 | 495.1 | 494.9 | ||||||
Senior notes, 2.2%, due 2019 | 374.7 | — | ||||||
Senior notes, 3.95%, due 2020 | 744.9 | 744.3 | ||||||
Senior notes, 5.45%, due 2021 | 692 | 702.3 | ||||||
Senior notes, 4.125%, due 2021 | 495.4 | 494.8 | ||||||
Senior notes, 2.75%, due 2022 | 986.3 | 985.1 | ||||||
Senior notes, 6.625%, due 2036 | 769.8 | 769.8 | ||||||
Senior notes, 6.75%, due 2037 | 530.7 | 530.6 | ||||||
Senior notes, 4.5%, due 2042 | 480.6 | 480.1 | ||||||
Senior notes, 4.125%, due 2042 | 492.8 | 492.6 | ||||||
Senior notes, 4.75%, due 2044 | 374.1 | — | ||||||
Total long-term debt | 7,838.40 | 8,252.60 | ||||||
Less current portion of long-term debt (2) | 232.1 | 387.3 | ||||||
Total long-term debt, less current portion | $ | 7,606.30 | $ | 7,865.30 | ||||
-1 | The 6.3% senior notes were repaid in August 2014. These notes were classified as current in the consolidated balance sheet as of December 31, 2013. | |||||||
(2) | At September 30, 2014, our 6.125% senior notes due January 2015 were classified as current in the accompanying consolidated balance sheet. | |||||||
At September 30, 2014, we had approximately $75 million of commercial paper outstanding with a weighted average interest rate of .21%. At December 31, 2013 we did not have any commercial paper outstanding. | ||||||||
Long-Term Debt and Interest Rate Swaps | ||||||||
On February 7, 2014, we announced the redemption for cash of the entire $750 million aggregate principal amount outstanding of our 6.0% senior notes due 2016. The redemption of these notes occurred on March 14, 2014 (the “Redemption Date”) at a redemption price that included a make-whole premium, plus interest accrued and unpaid at the Redemption Date. We financed the redemption by issuing $375 million of 2.2% senior notes due 2019 and $375 million of 4.75% senior notes due 2044 (collectively, the “2014 Senior Notes”), together with other available resources. As a result of the redemption, in the first quarter of 2014, we recorded a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax). | ||||||||
During June and July 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 our 6.0% senior notes due 2016. In March 2014, prior to issuing the 2014 Senior Notes used to refinance our 6.0% senior notes due 2016, we terminated these swaps and received an aggregate of $34.2 million from the swap counterparties upon termination. We performed a final effectiveness test upon termination of these swaps and determined there was approximately $12 million pretax of ineffectiveness that arose due to the actual debt issuance date being earlier than forecasted. The ineffectiveness was recorded as a realized capital gain in the first quarter of 2014. The effective portion of the hedge gain of approximately $22 million pretax was recorded in accumulated other comprehensive loss, net of tax, and is being amortized as a reduction to interest expense over the first 20 semi-annual interest payments associated with the $375 million of 4.75% senior notes due 2044. | ||||||||
In March 2014, we entered into two interest rate swaps with an aggregate notional value of $500 million. We designated these swaps as cash flow hedges against interest rate exposure related to the forecasted future issuance of fixed-rate debt to be primarily used to refinance long-term debt maturing in 2017. At September 30, 2014, these interest rate swaps had a pretax fair value loss of $26.8 million, which was reflected net of tax in accumulated other comprehensive loss within shareholders’ equity. | ||||||||
In April 2014, we entered into an interest rate swap with a notional value of $250 million. We designated this swap as a cash flow hedge against interest rate exposure related to the forecasted future issuance of fixed-rate debt to be primarily used to refinance long-term debt maturing in 2018. At September 30, 2014, this interest rate swap had a pretax fair value loss of $11.2 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, 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. In 2013, we extended the maturity date of the Facility by one year. On March 27, 2014, we extended the maturity date of the Facility by an additional year to March 27, 2019. | ||||||||
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, 2014. 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, 2014. There were no amounts outstanding under the Facility at any time during the nine months ended September 30, 2014 or 2013. |
Capital_Stock
Capital Stock | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Class of Stock Disclosures [Abstract] | ' | ||||||||||
Capital Stock | ' | ||||||||||
11. Capital Stock | |||||||||||
On February 28, 2014 and September 27, 2013, our Board of Directors (our “Board”) authorized two separate share repurchase programs of our common stock of up to $1.0 billion and $750 million, respectively. During the nine months ended September 30, 2014, we repurchased approximately 13 million shares of common stock at a cost of approximately $975 million. At September 30, 2014, we had remaining authorization to repurchase an aggregate of up to approximately $622 million of common stock under the February 28, 2014 program. The repurchases are effected from time to time in the open market, through negotiated transactions, including accelerated share repurchase agreements, and through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. | |||||||||||
Under the share repurchase program authorized by our Board, on May 16, 2014, we entered into an accelerated share repurchase agreement with an unrelated third party financial institution to repurchase an aggregate of $100 million of our outstanding common stock during July 2014. During July 2014, we repurchased approximately 1.2 million shares of our common stock under that agreement based on the volume-weighted average price of our common stock during the purchase period. | |||||||||||
Under the share repurchase program authorized by our Board, on August 5, 2014, we entered into an accelerated share repurchase agreement with an unrelated third party financial institution to repurchase an aggregate of $100 million of our outstanding common stock during October 2014. The final number of shares repurchased under that agreement will be determined based on the volume-weighted average price of our common stock during the purchase period. | |||||||||||
During the nine months ended September 30, 2014 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 28, 2014 | $ | 0.225 | April 10, 2014 | April 25, 2014 | $ | 80.4 | |||||
May 30, 2014 | 0.225 | July 10, 2014 | July 25, 2014 | 79.6 | |||||||
September 19, 2014 | 0.225 | October 16, 2014 | October 31, 2014 | 79.2 | |||||||
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 March 3, 2014, approximately .4 million PSUs, .5 million MSUs, 1.0 million restricted stock units (“RSUs”) and 1.3 million SARs 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 a certain operating performance goal, as determined by our Board’s Committee on Compensation and Talent Management, during a two-year performance period which began January 1, 2014 and ends on December 31, 2015. The vesting period for the PSUs ends on March 3, 2017. 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 date. The vesting period for the MSUs ends March 3, 2017. 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 generally will become 100% vested approximately three years from the grant date, with one-third vesting each December. The SARs, if exercised by the employee, will be settled in common stock, net of taxes, based on the appreciation of our common stock price over $72.26 per share, the closing price of our common stock on the grant date. SARs will become 100% vested approximately three years from the grant date, with one-third vesting on each anniversary of the grant date. | |||||||||||
The SARs granted to certain employees during the first quarter of 2014 and described above had an estimated fair market value of $22.68 per unit. The fair value per unit was calculated on the grant date using a Black-Scholes option pricing model using the following assumptions: | |||||||||||
Expected term (in years) | 5.72 | ||||||||||
Expected volatility | 35.8 | % | |||||||||
Risk-free interest rate | 1.74 | % | |||||||||
Dividend yield | 1.36 | % | |||||||||
Initial price | $ | 72.26 | |||||||||
The expected term is based on historical equity award activity. Expected volatility is based on a weighted average of the historical volatility of our stock price and implied volatility from traded options on our stock. The risk-free interest rate is based on a U.S. Treasury rate with a life equal to the expected life of the SARs grant. This rate was calculated by interpolating between the 5-year and 10-year U.S. Treasury rates. The dividend yield is based on our historical dividends declared in the 12 months prior to the grant date. | |||||||||||
There were no material SARs granted during the second or third quarters of 2014. |
Dividend_Restrictions_and_Stat
Dividend Restrictions and Statutory Surplus | 9 Months Ended |
Sep. 30, 2014 | |
Dividend Restrictions and Statutory Surplus [Abstract] | ' |
Dividend Restrictions and Statutory Surplus | ' |
12. Dividend Restrictions and Statutory Surplus | |
Under applicable regulatory requirements at September 30, 2014, the amount of dividends that may be paid through the end of 2014 by our insurance and HMO subsidiaries without prior approval by regulatory authorities is approximately $1.2 billion in the aggregate. There are no such regulatory restrictions on distributions from Aetna to its shareholders. During the third quarter of 2014, our insurance and HMO subsidiaries paid approximately $366 million of dividends to the Company. | |
The combined statutory capital and surplus of our insurance and HMO subsidiaries was $8.7 billion and $8.4 billion at September 30, 2014 and December 31, 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
13. Commitments and Contingencies | |
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 2020. Under the terms of the proposed nationwide settlement, we would have been 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 agreement did not contain an admission of wrongdoing. The medical associations were not parties to the settlement agreement. | |
Under the settlement agreement, we would have paid up to $120 million to fund claims submitted by health plan members and health care providers who were members of the settlement classes. These payments also would have funded the legal fees of plaintiffs’ counsel and the costs of administering the settlement. In connection with the proposed settlement, the Company recorded an after-tax charge to net income attributable to Aetna of approximately $78 million in the fourth quarter of 2012. | |
The settlement agreement provided us the right to terminate the agreement under certain conditions related to settlement class members who opted out of the settlement. Based on a report provided to the parties by the settlement administrator, the conditions permitting us to terminate the settlement agreement were satisfied. On March 13, 2014, we notified the New Jersey District Court and plaintiffs’ counsel that we were terminating the settlement agreement. Various legal and factual developments since the date of the settlement agreement led us to believe terminating the settlement agreement was in our best interests. We intend to vigorously defend ourselves against the claims brought by the plaintiffs. As a result of this termination, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). | |
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 and administration 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 and/or administration practices. | |
CMS Actions | |
The Centers for Medicare & Medicaid Services (“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 prescription drug program plans for members who have certain medical conditions identified with specific diagnosis codes. Federal regulators review and audit the providers’ medical records to determine whether those records support the 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. | |
CMS is using a different audit methodology for RADV audits to determine refunds payable by Medicare Advantage plans for contract year 2011 and forward. Under this methodology, among other things, CMS will project the error rate identified in the audit sample of approximately 200 members to all risk adjusted premium payments made under the contract being audited. Historically, CMS did not project sample error rates to the entire contract. As a result, the new methodology may increase our exposure to premium refunds to CMS due to incomplete medical records maintained by providers. During 2013, CMS selected certain of our 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 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 future bid submissions to CMS or compromise premium assumptions made in our bids for prior contract years or the current contract year. Any premium or fee refunds or adjustments resulting from regulatory audits, whether as a result of RADV or other audits by CMS, the OIG or otherwise, including audits of our minimum medical loss ratio rebates, methodology, and/or reports, 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 claims of or relating to bad faith, medical malpractice, non-compliance with state and federal regulatory regimes, marketing misconduct, failure to timely or appropriately pay or administer claims and benefits in our Health Care and Group Insurance businesses (including our post-payment audit and collection practices and reductions in payments to providers due to sequestration), provider network structure (including the use of performance-based networks and termination of provider contracts), rescission of insurance coverage, improper disclosure of personal information, patent infringement and other intellectual property litigation, other legal proceedings in our Health Care and Group Insurance businesses and employment litigation. 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. | |
Awards to us and others of certain government contracts, particularly in our Medicaid business, are subject to increasingly frequent protests by unsuccessful bidders. These protests may result in awards to us being reversed, delayed or modified. The loss or delay in implementation of any government contract could adversely affect our operating results. We will continue to defend vigorously contract awards we receive. | |
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. In the fourth quarter of 2013, we made changes to our life insurance claim payment practices (including related escheatment practices) based on evolving industry practices and regulatory expectations and interpretations, including expanding our existing use of the Social Security Administration’s Death Master File to identify additional potentially unclaimed death benefits and locate applicable beneficiaries. As a result of these changes, in the fourth quarter of 2013, we increased our estimated liability for unpaid life insurance claims with respect to insureds who passed away on or before December 31, 2013, and recorded in current and future benefits a charge of $35.7 million ($55.0 million pretax). Given the legal and regulatory uncertainty with respect to life insurance claim payment and related escheat practices, it is reasonably possible that we may incur additional liability related to those practices, whether as a result of further 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, our and the rest of 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), calculation of minimum medical loss ratios, 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. | |
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 “Other Litigation and Regulatory 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, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
14. 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, 2014 and 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). Non-GAAP financial measures we disclose, such as operating earnings, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. | ||||||||||||||||||||
Summarized financial information of our segments for the three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||
(Millions) | Health | Group | Large Case | Corporate | Total Company | |||||||||||||||
Care | Insurance | Pensions | Financing | |||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Revenue from external customers | $ | 13,898.40 | $ | 559.5 | $ | 7 | $ | — | $ | 14,464.90 | ||||||||||
Operating earnings (loss) (1) | 625.6 | 47.9 | 4.9 | (39.8 | ) | 638.6 | ||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers (2) | $ | 12,228.70 | $ | 510.7 | $ | 98.9 | $ | — | $ | 12,838.30 | ||||||||||
Operating earnings (loss) (1) | 627.5 | 20.5 | 6.2 | (49.9 | ) | 604.3 | ||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Revenue from external customers | $ | 40,707.10 | $ | 1,659.90 | $ | 77.3 | $ | — | $ | 42,444.30 | ||||||||||
Operating earnings (loss) (1) | 1,928.90 | 149.7 | 15.1 | (123.1 | ) | 1,970.60 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers (2) | $ | 31,743.00 | $ | 1,536.80 | $ | 174.2 | $ | — | $ | 33,454.00 | ||||||||||
Operating earnings (loss) (1) | 1,732.80 | 83 | 16.2 | (128.6 | ) | 1,703.40 | ||||||||||||||
(1) | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation below. | |||||||||||||||||||
(2) | In the third quarter of 2013, pursuant to contractual rights exercised by the contract holder, 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 during the third quarter of 2013. | |||||||||||||||||||
A reconciliation of operating earnings (1) to net income attributable to Aetna for the three and nine months ended September 30, 2014 and 2013 was as follows: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Operating earnings (1) | $ | 638.6 | $ | 604.3 | $ | 1,970.60 | $ | 1,703.40 | ||||||||||||
Transaction and integration-related costs, net of tax | (23.7 | ) | (34.6 | ) | (101.9 | ) | (140.6 | ) | ||||||||||||
Loss on early extinguishment of long-term debt, net of tax | — | — | (59.7 | ) | — | |||||||||||||||
Release of litigation-related reserve, net of tax | — | — | 67 | — | ||||||||||||||||
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 | ||||||||||||||||
Amortization of other acquired intangible assets, net of tax | (38.7 | ) | (42.5 | ) | (119.4 | ) | (97.2 | ) | ||||||||||||
Net realized capital gains (losses), net of tax | 18.3 | (8.6 | ) | 52.2 | (8.9 | ) | ||||||||||||||
Net income attributable to Aetna | $ | 594.5 | $ | 518.6 | $ | 1,808.80 | $ | 1,544.70 | ||||||||||||
(1) | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other 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 of $23.7 million ($35.3 million pretax) and $101.9 million ($154.8 million pretax) during the three and nine months ended September 30, 2014, respectively, related to the acquisitions of Coventry and InterGlobal, and $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, related to the acquisition of Coventry. 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. 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 Acquisition 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 Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings. | |||||||||||||||||||
• | In the first quarter of 2014, we incurred a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax) related to the redemption of our 6.0% senior notes due 2016. | |||||||||||||||||||
• | In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 13 beginning on page 30 for additional information on the termination of the settlement agreement. | |||||||||||||||||||
• | In the second quarter of 2013, we reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax). 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 16 beginning on page 35 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 reversed the related allowance thereby reducing second quarter 2013 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. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2014 | |
Reinsurance Disclosures [Abstract] | ' |
Reinsurance | ' |
15. Reinsurance | |
In January 2014, we entered into five-year reinsurance agreements with Vitality Re V Limited, an unrelated insurer. The agreements allow us to reduce our required capital and provide $200 million of collateralized excess of loss reinsurance coverage on a portion of Aetna’s group Commercial Insured Health Care business. The Company’s similar reinsurance agreements with Vitality Re Limited and Vitality Re II Limited expired in January 2014. |
Discontinued_Products
Discontinued Products | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Discontinued Products [Abstract] | ' | |||||||
Discontinued Products | ' | |||||||
16 | 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. At both September 30, 2014 and December 31, 2013, our remaining GIC liability was not material. 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. | ||||||||
Key assumptions in setting the reserve for anticipated future losses include future investment results, payments to retirees, mortality and retirement rates and the cost of asset management and customer service. In 2014, we modified the mortality tables used in order to reflect the more up-to-date 2014 Retired Pensioner’s Mortality table. The mortality tables were previously modified in 2012, in order to reflect the more up-to-date 2000 Retired Pensioner’s Mortality table, and in 1995, in order to reflect the 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 attributable to Aetna. If actual or expected future losses are greater than we currently estimate, we may increase the reserve, which could adversely impact net income attributable to Aetna. If actual or expected future losses are less than we currently estimate, we may decrease the reserve, which could favorably impact net income attributable to Aetna. 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, 2014 and December 31, 2013 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, 2014 and 2013 (pretax) was as follows: | ||||||||
(Millions) | 2014 | 2013 | ||||||
Reserve, beginning of period | $ | 979.5 | $ | 978.5 | ||||
Operating income (loss) | 3.2 | (8.5 | ) | |||||
Net realized capital gains | 25.8 | 73.7 | ||||||
Reserve reduction | — | (86.0 | ) | |||||
Reserve, end of period | $ | 1,008.50 | $ | 957.7 | ||||
During the nine months ended September 30, 2014, our discontinued products reflected operating income and net realized capital gains, primarily attributable to gains from the sale of debt securities. During the nine months ended September 30, 2013, our discontinued products reflected an operating loss and net realized capital gains, primarily attributable to gains from other invested assets and from the sale of debt securities. We evaluated these results against the expectations of future cash flows assumed in estimating the reserve for anticipated future losses and did not believe that an adjustment to the reserve was required at September 30, 2014. | ||||||||
Assets and liabilities supporting discontinued products at September 30, 2014 and December 31, 2013 were as | ||||||||
follows: (1) | ||||||||
(Millions) | 2014 | 2013 | ||||||
Assets: | ||||||||
Debt and equity securities available for sale | $ | 2,322.40 | $ | 2,372.60 | ||||
Mortgage loans | 408 | 407 | ||||||
Other investments | 675.7 | 663.9 | ||||||
Total investments | 3,406.10 | 3,443.50 | ||||||
Other assets | 112.3 | 85.2 | ||||||
Collateral received under securities loan agreements | 222.1 | 204.4 | ||||||
Current and deferred income taxes | — | 14.4 | ||||||
Receivable from continuing products (2) | 558 | 533.1 | ||||||
Total assets | $ | 4,298.50 | $ | 4,280.60 | ||||
Liabilities: | ||||||||
Future policy benefits | $ | 2,685.50 | $ | 2,804.80 | ||||
Reserve for anticipated future losses on discontinued products | 1,008.50 | 979.5 | ||||||
Collateral payable under securities loan agreements | 222.1 | 204.4 | ||||||
Current and deferred income taxes | 1.8 | — | ||||||
Other liabilities (3) | 380.6 | 291.9 | ||||||
Total liabilities | $ | 4,298.50 | $ | 4,280.60 | ||||
(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 $93 million and $284 million for the three and nine months ended September 30, 2014, respectively, and $98 million and $296 million for the three and nine months ended September 30, 2013, respectively. There were no material participant-directed withdrawals from our discontinued products during the three or nine months ended September 30, 2014 or 2013. 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, 2014 | |
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 2013 Annual Report on Form 10-K (our “2013 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 2013 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, 2014 through the date the financial statements were issued and determined there were no other items to disclose other than as disclosed in Note 11 beginning on page 28. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying 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 2013 financial information to conform with the 2014 presentation. | |
Health Care Reform | ' |
Accounting for certain provisions of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, “Health Care Reform” or “ACA”) | |
We are participating in certain public health insurance exchanges established pursuant to Health Care Reform. Under regulations established by the U.S. Department of Health and Human Services (“HHS”), HHS pays us a portion of the premium (“Premium Subsidy”) and/or a portion of the health care costs (“Cost Sharing Subsidy”) for low-income individual members. In addition, HHS administers certain risk management programs as described below. | |
We recognize monthly premiums received from members and the Premium Subsidy as premium revenue ratably over the contract period. The Cost Sharing Subsidy offsets health care costs when incurred. We record a liability if the Cost Sharing Subsidy is paid in advance or a receivable if incurred health care costs exceed the Cost Sharing Subsidy received to date. | |
Accounting for Health Care Reform’s Reinsurance, Risk Adjustment and Risk Corridor (the “3Rs”) | |
Reinsurance | |
Health Care Reform established a temporary three-year reinsurance program, whereby all issuers of major medical commercial insurance products and self-insured plan sponsors are required to contribute funding in amounts set by HHS. Funds collected will be utilized to reimburse issuers’ high claims costs incurred for qualified individual members. The expense related to this required funding is reflected in general and administrative expenses for all of our insurance products with the exception of products associated with qualified individual members; this expense for qualified individual members is reflected as a reduction of premium revenue. When annual claim costs incurred by our qualified individual members exceed a specified attachment point, we are entitled to certain reimbursements from this program. We record a receivable and offset health care costs to reflect our estimate of these recoveries. As of September 30, 2014, we recorded a receivable under the temporary three-year reinsurance program of approximately $162 million. | |
Risk Adjustment | |
Health Care Reform established a permanent risk adjustment program to transfer funds from qualified individual and small group insurance plans with below average risk scores to those respective plans with above average risk scores. Based on the risk of our qualified plan members relative to the average risk of members of other qualified plans in comparable markets, we estimate our ultimate 2014 risk adjustment receivable or payable and reflect the pro-rata year-to-date impact as an adjustment to our premium revenue. | |
Risk Corridor | |
Health Care Reform established a temporary three-year risk sharing program for qualified individual and small group insurance plans. Under this program we make (or receive) a payment to (or from) HHS based on the ratio of allowable costs to target costs (as defined by Health Care Reform). We record a risk corridor receivable or payable as an adjustment to premium revenue on a pro-rata year-to-date basis based on our estimate of the ultimate 2014 risk sharing amount. | |
Collectively, as of September 30, 2014, we recorded an aggregate net payable of approximately $97 million under the risk adjustment and risk corridor programs. | |
We will perform a final reconciliation and settlement with HHS of the 2014 Cost Sharing Subsidy and 3Rs during 2015. |
Acquisitions_Completed_Disposi1
Acquisitions, Completed Disposition (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Acquisition [Line Items] | ' | ||||
Business Acquisition, Pro Forma Information | ' | ||||
The following table presents supplemental pro forma information for the nine months ended September 30, 2013, as if the Merger had occurred on January 1, 2012. The unaudited 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 unaudited 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. | |||||
Nine Months Ended | |||||
(Millions, except per common share data) | 30-Sep-13 | ||||
Total revenue | $ | 38,906.60 | |||
Net income attributable to Aetna | 1,775.30 | ||||
Earnings per share: | |||||
Basic | $ | 4.73 | |||
Diluted | 4.68 | ||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
The computations of basic and diluted EPS for the three and nine months ended September 30, 2014 and 2013 are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions, except per common share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income attributable to Aetna | $ | 594.5 | $ | 518.6 | $ | 1,808.80 | $ | 1,544.70 | ||||||||
Weighted average shares used to compute basic EPS | 353.2 | 371.1 | 357.2 | 351.8 | ||||||||||||
Dilutive effect of outstanding stock-based compensation awards | 3.6 | 4.1 | 3.5 | 3.7 | ||||||||||||
Weighted average shares used to compute diluted EPS | 356.8 | 375.2 | 360.7 | 355.5 | ||||||||||||
Basic EPS | $ | 1.68 | $ | 1.4 | $ | 5.06 | $ | 4.39 | ||||||||
Diluted EPS | $ | 1.67 | $ | 1.38 | $ | 5.01 | $ | 4.35 | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||||||||
The stock-based compensation awards excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2014 and 2013 are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Stock appreciation rights (“SARs”) (1) | — | — | 0.4 | 2.2 | ||||||||||||
Market stock units (“MSUs”) (2) | — | 0.4 | 0.1 | 0.4 | ||||||||||||
Performance stock units (“PSUs”) (2) | 0.8 | 0.9 | 0.8 | 0.8 | ||||||||||||
Performance stock appreciation rights (“PSARs”) (2) | 0.7 | 0.7 | 0.4 | 0.2 | ||||||||||||
(1) | SARs are excluded from 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). | |||||||||||||||
(2) | PSUs, certain MSUs with performance conditions and PSARs are excluded from the calculation of diluted EPS if all necessary performance conditions have not been satisfied at the end of the reporting period. |
Operating_Expenses_Tables
Operating Expenses (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Operating Expenses [Abstract] | ' | |||||||||||||||
Operating Expenses | ' | |||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, 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) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Selling expenses | $ | 422.3 | $ | 353.9 | $ | 1,238.10 | $ | 983.3 | ||||||||
General and administrative expenses: | ||||||||||||||||
Salaries and related benefits | 1,134.40 | 1,119.40 | 3,354.00 | 2,914.50 | ||||||||||||
Other general and administrative expenses (1) (2) (3) | 1,158.00 | 831.2 | 3,174.20 | 2,240.30 | ||||||||||||
Total general and administrative expenses (4) | 2,292.40 | 1,950.60 | 6,528.20 | 5,154.80 | ||||||||||||
Total operating expenses | $ | 2,714.70 | $ | 2,304.50 | $ | 7,766.30 | $ | 6,138.10 | ||||||||
(1) | The three and nine months ended September 30, 2014 include fees mandated by the ACA comprised primarily of the HIF of $151.5 million and $454.0 million, respectively, and our estimated contribution to the funding of the reinsurance program of $80.5 million and $251.6 million, respectively. Refer to Note 2 beginning on page 6 for additional information on fees mandated by the ACA. | |||||||||||||||
(2) | In the fourth quarter of 2012, we recorded a charge of $120.0 million pretax related to the settlement of purported class action litigation regarding Aetna’s payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $103.0 million pretax. Refer to Note 13 beginning on page 30 for additional information on the termination of the settlement agreement. | |||||||||||||||
(3) | 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 of $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 reversed the related allowance thereby reducing second quarter 2013 other general and administrative expenses by $42.2 million pretax. | |||||||||||||||
(4) | The three and nine months ended September 30, 2014 include $35.3 million and $154.8 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. The three and nine months ended September 30, 2013 include $51.2 million and $171.4 million, respectively, of transaction and integration-related costs related to the acquisition of Coventry, including advisory, legal and other professional services fees and transaction-related payments. |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||||||||||
Total investments | ' | |||||||||||||||||||||||
Total investments at September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
(Millions) | Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||
Debt and equity securities available for sale | $ | 2,318.00 | $ | 18,620.60 | $ | 20,938.60 | $ | 1,977.40 | $ | 17,753.00 | $ | 19,730.40 | ||||||||||||
Mortgage loans | 130.9 | 1,473.20 | 1,604.10 | 84.9 | 1,464.70 | 1,549.60 | ||||||||||||||||||
Other investments | 13.1 | 1,777.70 | 1,790.80 | 1.5 | 1,717.30 | 1,718.80 | ||||||||||||||||||
Total investments | $ | 2,462.00 | $ | 21,871.50 | $ | 24,333.50 | $ | 2,063.80 | $ | 20,935.00 | $ | 22,998.80 | ||||||||||||
Debt and equity securities available for sale | ' | |||||||||||||||||||||||
Debt and equity securities available for sale at September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||
(Millions) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,364.50 | $ | 79 | $ | (1.2 | ) | $ | 1,442.30 | |||||||||||||||
States, municipalities and political subdivisions | 4,327.50 | 250.5 | (11.0 | ) | 4,567.00 | |||||||||||||||||||
U.S. corporate securities | 7,915.70 | 571.4 | (40.1 | ) | 8,447.00 | |||||||||||||||||||
Foreign securities | 3,285.40 | 259.5 | (13.4 | ) | 3,531.50 | |||||||||||||||||||
Residential mortgage-backed securities | 913.8 | 22.2 | (8.0 | ) | 928 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,340.30 | 62.6 | (2.2 | ) | (1) | 1,400.70 | ||||||||||||||||||
Other asset-backed securities | 517.9 | 6.4 | (2.5 | ) | (1) | 521.8 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 11.5 | — | 68.3 | ||||||||||||||||||||
Total debt securities | 19,721.90 | 1,263.10 | (78.4 | ) | 20,906.60 | |||||||||||||||||||
Equity securities | 37.3 | 0.4 | (5.7 | ) | 32 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 19,759.20 | $ | 1,263.50 | $ | (84.1 | ) | $ | 20,938.60 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,396.80 | $ | 68.7 | $ | (3.0 | ) | $ | 1,462.50 | |||||||||||||||
States, municipalities and political subdivisions | 4,118.50 | 126.6 | (82.8 | ) | 4,162.30 | |||||||||||||||||||
U.S. corporate securities | 7,559.00 | 493.7 | (110.1 | ) | 7,942.60 | |||||||||||||||||||
Foreign securities | 3,209.60 | 198.9 | (53.0 | ) | 3,355.50 | |||||||||||||||||||
Residential mortgage-backed securities | 928.4 | 16.9 | (21.1 | ) | 924.2 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,323.50 | 88.2 | (4.7 | ) | (1) | 1,407.00 | ||||||||||||||||||
Other asset-backed securities | 343.4 | 8.3 | (2.1 | ) | (1) | 349.6 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 8.6 | — | 65.4 | ||||||||||||||||||||
Total debt securities | 18,936.00 | 1,009.90 | (276.8 | ) | 19,669.10 | |||||||||||||||||||
Equity securities | 38.5 | 26.5 | (3.7 | ) | 61.3 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 18,974.50 | $ | 1,036.40 | $ | (280.5 | ) | $ | 19,730.40 | |||||||||||||||
(1) | At September 30, 2014 and December 31, 2013, we held securities for which we previously recognized $18.6 million and $22.8 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at September 30, 2014 and December 31, 2013 of $4.2 million and $6.6 million, respectively. | |||||||||||||||||||||||
(2) | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 16 beginning on page 35 for additional information on our accounting for discontinued products). At September 30, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $360.6 million and gross unrealized capital losses of $20.8 million and, at December 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 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, 2014 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 | $ | 1,177.90 | ||||||||||||||||||||||
One year through five years | 5,636.20 | |||||||||||||||||||||||
After five years through ten years | 5,693.50 | |||||||||||||||||||||||
Greater than ten years | 5,548.50 | |||||||||||||||||||||||
Residential mortgage-backed securities | 928 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,400.70 | |||||||||||||||||||||||
Other asset-backed securities | 521.8 | |||||||||||||||||||||||
Total | $ | 20,906.60 | ||||||||||||||||||||||
Debt and Equity Securities in an Unrealized Capital Loss Position | ' | |||||||||||||||||||||||
Summarized below are the debt and equity securities we held at September 30, 2014 and December 31, 2013 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, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 129.8 | $ | 0.5 | $ | 27.5 | $ | 0.7 | $ | 157.3 | $ | 1.2 | ||||||||||||
States, municipalities and political subdivisions | 350.6 | 2.3 | 492.2 | 8.7 | 842.8 | 11 | ||||||||||||||||||
U.S. corporate securities | 1,271.30 | 14.7 | 593 | 25.4 | 1,864.30 | 40.1 | ||||||||||||||||||
Foreign securities | 441.5 | 6.3 | 181.5 | 7.1 | 623 | 13.4 | ||||||||||||||||||
Residential mortgage-backed securities | 59.9 | 0.2 | 205.2 | 7.8 | 265.1 | 8 | ||||||||||||||||||
Commercial mortgage-backed securities | 77.4 | 0.3 | 79.7 | 1.9 | 157.1 | 2.2 | ||||||||||||||||||
Other asset-backed securities | 242.3 | 1.8 | 29.4 | 0.7 | 271.7 | 2.5 | ||||||||||||||||||
Total debt securities | 2,572.80 | 26.1 | 1,608.50 | 52.3 | 4,181.30 | 78.4 | ||||||||||||||||||
Equity securities | — | — | 8.6 | 5.7 | 8.6 | 5.7 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 2,572.80 | $ | 26.1 | $ | 1,617.10 | $ | 58 | $ | 4,189.90 | $ | 84.1 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 555.9 | $ | 2.7 | $ | 13.4 | $ | 0.3 | $ | 569.3 | $ | 3 | ||||||||||||
States, municipalities and political subdivisions | 1,779.90 | 73.1 | 132.4 | 9.7 | 1,912.30 | 82.8 | ||||||||||||||||||
U.S. corporate securities | 2,196.80 | 88 | 170 | 22.1 | 2,366.80 | 110.1 | ||||||||||||||||||
Foreign securities | 875.2 | 43.5 | 90.9 | 9.5 | 966.1 | 53 | ||||||||||||||||||
Residential mortgage-backed securities | 541.1 | 17.3 | 35 | 3.8 | 576.1 | 21.1 | ||||||||||||||||||
Commercial mortgage-backed securities | 162.4 | 4.2 | 25 | 0.5 | 187.4 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 87.8 | 1.9 | 7.7 | 0.2 | 95.5 | 2.1 | ||||||||||||||||||
Redeemable preferred securities | 4.4 | — | — | — | 4.4 | — | ||||||||||||||||||
Total debt securities | 6,203.50 | 230.7 | 474.4 | 46.1 | 6,677.90 | 276.8 | ||||||||||||||||||
Equity securities | — | — | 16.2 | 3.7 | 16.2 | 3.7 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 6,203.50 | $ | 230.7 | $ | 490.6 | $ | 49.8 | $ | 6,694.10 | $ | 280.5 | ||||||||||||
(1) | At September 30, 2014 and December 31, 2013, debt and equity securities in an unrealized capital loss position of $20.8 million and $60.3 million, respectively, and with related fair value of $581.1 million and $1.0 billion, 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, 2014 were as follows: | ||||||||||||||||||||||||
Supporting discontinued and | Supporting remaining | Total | ||||||||||||||||||||||
experience-rated products | products | |||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | $ | 34.5 | $ | 0.4 | $ | 34.5 | $ | 0.4 | ||||||||||||
One year through five years | 35.1 | 0.3 | 917.7 | 6.6 | 952.8 | 6.9 | ||||||||||||||||||
After five years through ten years | 246.3 | 4.7 | 1,243.70 | 22.8 | 1,490.00 | 27.5 | ||||||||||||||||||
Greater than ten years | 281.1 | 10 | 729 | 20.9 | 1,010.10 | 30.9 | ||||||||||||||||||
Residential mortgage-backed securities | 6 | — | 259.1 | 8 | 265.1 | 8 | ||||||||||||||||||
Commercial mortgage-backed securities | 4 | 0.1 | 153.1 | 2.1 | 157.1 | 2.2 | ||||||||||||||||||
Other asset-backed securities | — | — | 271.7 | 2.5 | 271.7 | 2.5 | ||||||||||||||||||
Total | $ | 572.5 | $ | 15.1 | $ | 3,608.80 | $ | 63.3 | $ | 4,181.30 | $ | 78.4 | ||||||||||||
Net realized capital gains (losses) | ' | |||||||||||||||||||||||
Net realized capital gains (losses) for the three and nine months ended September 30, 2014 and 2013, 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) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
OTTI losses on debt securities recognized in earnings | $ | (3.0 | ) | $ | (2.4 | ) | $ | (3.3 | ) | $ | (29.6 | ) | ||||||||||||
Net realized capital gains (losses), excluding OTTI losses on debt securities | 31.3 | (10.3 | ) | 83.9 | 17.4 | |||||||||||||||||||
Net realized capital gains (losses) | $ | 28.3 | $ | (12.7 | ) | $ | 80.6 | $ | (12.2 | ) | ||||||||||||||
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, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Proceeds on sales | $ | 955.3 | $ | 1,434.00 | $ | 2,979.00 | $ | 5,216.50 | ||||||||||||||||
Gross realized capital gains | 34.2 | 25 | 78.7 | 83.9 | ||||||||||||||||||||
Gross realized capital losses | 5.1 | 34.9 | 27.1 | 78.3 | ||||||||||||||||||||
Activity in mortgage loan portfolio | ' | |||||||||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013 we had the following activity in our mortgage loan portfolio: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
New mortgage loans | $ | 44.1 | $ | 62.8 | $ | 185 | $ | 126.4 | ||||||||||||||||
Mortgage loans fully repaid | 17.3 | 49.1 | 73.9 | 168.7 | ||||||||||||||||||||
Mortgage loan internal credit rating | ' | |||||||||||||||||||||||
Based upon our most recent assessments at September 30, 2014 and December 31, 2013, our mortgage loans were given the following credit quality indicators: | ||||||||||||||||||||||||
(In Millions, except credit ratings indicator) | September 30, | December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
1 | $ | 75.2 | $ | 69.2 | ||||||||||||||||||||
2 to 4 | 1,466.70 | 1,399.60 | ||||||||||||||||||||||
5 | 21.5 | 30.6 | ||||||||||||||||||||||
6 and 7 | 40.7 | 50.2 | ||||||||||||||||||||||
Total | $ | 1,604.10 | $ | 1,549.60 | ||||||||||||||||||||
Net Investment Income | ' | |||||||||||||||||||||||
Sources of net investment income for the three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Debt securities | $ | 198.9 | $ | 193.9 | $ | 595.2 | $ | 573.9 | ||||||||||||||||
Mortgage loans | 24.1 | 27.2 | 82.1 | 76.1 | ||||||||||||||||||||
Other investments | 22.5 | (2.2 | ) | 57.9 | 46.8 | |||||||||||||||||||
Gross investment income | 245.5 | 218.9 | 735.2 | 696.8 | ||||||||||||||||||||
Investment expenses | (10.9 | ) | (8.9 | ) | (28.1 | ) | (26.7 | ) | ||||||||||||||||
Net investment income (1) | $ | 234.6 | $ | 210 | $ | 707.1 | $ | 670.1 | ||||||||||||||||
(1) | Net investment income includes $72.5 million and $216.4 million for the three and nine months ended September 30, 2014, respectively, and $61.5 million and $210.3 million for the three and nine months ended September 30, 2013, 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, 2014 | |||||||||||||||||||||||||||||
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, 2014 and 2013: | |||||||||||||||||||||||||||||
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 | Credit | ||||||||||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 34.2 | $ | 326.8 | $ | 0.4 | $ | (1,293.8 | ) | $ | 20.3 | $ | (912.1 | ) | |||||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||||||||||
before reclassifications | (1.2 | ) | 212.5 | (36.0 | ) | — | — | 175.3 | |||||||||||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||||||||||
other comprehensive income | (.2 | ) | (2 | ) | (6.2 | ) | (2 | ) | (8.3 | ) | (3 | ) | 23.2 | (4 | ) | (2.0 | ) | (4 | ) | 6.5 | |||||||||
Other comprehensive (loss) income | (1.4 | ) | 206.3 | (44.3 | ) | 23.2 | (2.0 | ) | 181.8 | ||||||||||||||||||||
Balance at September 30, 2014 | $ | 32.8 | $ | 533.1 | $ | (43.9 | ) | $ | (1,270.6 | ) | $ | 18.3 | $ | (730.3 | ) | ||||||||||||||
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 | ) | ||||||||||||||
(1) | Represents unrealized 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. | ||||||||||||||||||||||||||||
(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 Statements 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 Statements of Income, except for the effective portion of derivatives related to interest rate swaps which are reflected in interest expense and were not material during the nine months ended September 30, 2014 or 2013. Refer to Note 10 of Condensed Notes to Consolidated Financial Statements beginning on page 27 for additional information. | ||||||||||||||||||||||||||||
(4) | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statements of Income. Refer to Note 9 of Condensed Notes to Consolidated Financial Statements beginning on page 26 for additional information. | ||||||||||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
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, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,232.70 | $ | 209.6 | $ | — | $ | 1,442.30 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,565.80 | 1.2 | 4,567.00 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 8,398.40 | 48.6 | 8,447.00 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,502.80 | 28.7 | 3,531.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 928 | — | 928 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,393.20 | 7.5 | 1,400.70 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 479.4 | 42.4 | 521.8 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 64.2 | 4.1 | 68.3 | ||||||||||||||||||||||||||||
Total debt securities | 1,232.70 | 19,541.40 | 132.5 | 20,906.60 | ||||||||||||||||||||||||||||
Equity securities | 8.9 | — | 23.1 | 32 | ||||||||||||||||||||||||||||
Derivatives | — | 0.2 | — | 0.2 | ||||||||||||||||||||||||||||
Total | $ | 1,241.60 | $ | 19,541.60 | $ | 155.6 | $ | 20,938.80 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 38.6 | $ | — | $ | 38.6 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,237.50 | $ | 225 | $ | — | $ | 1,462.50 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,161.00 | 1.3 | 4,162.30 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,911.40 | 31.2 | 7,942.60 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,311.60 | 43.9 | 3,355.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 924.2 | — | 924.2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,399.50 | 7.5 | 1,407.00 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 317.3 | 32.3 | 349.6 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 61.3 | 4.1 | 65.4 | ||||||||||||||||||||||||||||
Total debt securities | 1,237.50 | 18,311.30 | 120.3 | 19,669.10 | ||||||||||||||||||||||||||||
Equity securities | 17.1 | — | 44.2 | 61.3 | ||||||||||||||||||||||||||||
Derivatives | — | 49.1 | — | 49.1 | ||||||||||||||||||||||||||||
Total | $ | 1,254.60 | $ | 18,360.40 | $ | 164.5 | $ | 19,779.50 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 1.9 | $ | — | $ | 1.9 | ||||||||||||||||||||||||
Gross transfers into (out of) Level 3 | ' | |||||||||||||||||||||||||||||||
The gross transfers into (out of) Level 3 during the three and nine months ended September 30, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Gross transfers into Level 3 | $ | 1.9 | $ | 3.8 | $ | 1.9 | $ | 3.8 | ||||||||||||||||||||||||
Gross transfers out of Level 3 | (2.0 | ) | (21.7 | ) | (15.3 | ) | (48.9 | ) | ||||||||||||||||||||||||
Net transfers out of Level 3 | $ | (.1 | ) | $ | (17.9 | ) | $ | (13.4 | ) | $ | (45.1 | ) | ||||||||||||||||||||
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, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,604.10 | $ | — | $ | — | $ | 1,654.80 | $ | 1,654.80 | ||||||||||||||||||||||
Bank loans | 232 | — | 219.2 | 9.7 | 228.9 | |||||||||||||||||||||||||||
Equity securities (1) | 30 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 9 | — | — | 9 | 9 | |||||||||||||||||||||||||||
Without a fixed maturity | 563.1 | — | — | 558.8 | 558.8 | |||||||||||||||||||||||||||
Long-term debt | 7,838.40 | — | 8,452.80 | — | 8,452.80 | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,549.60 | $ | — | $ | — | $ | 1,584.80 | $ | 1,584.80 | ||||||||||||||||||||||
Bank loans | 181.7 | — | 171.5 | 9.8 | 181.3 | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 8.9 | — | — | 8.9 | 8.9 | |||||||||||||||||||||||||||
Without a fixed maturity | 572.3 | — | — | 553.2 | 553.2 | |||||||||||||||||||||||||||
Long-term debt | 8,252.60 | — | 8,670.60 | — | 8,670.60 | |||||||||||||||||||||||||||
Separate Account Financial Assets | ' | |||||||||||||||||||||||||||||||
Separate Accounts financial assets at September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Debt securities | $ | 853.4 | $ | 2,467.30 | $ | 3 | $ | 3,323.70 | $ | 726.4 | $ | 2,227.00 | $ | 0.6 | $ | 2,954.00 | ||||||||||||||||
Equity securities | 182.2 | 5.7 | — | 187.9 | 188.4 | 3.3 | — | 191.7 | ||||||||||||||||||||||||
Derivatives | — | 1.5 | — | 1.5 | — | 0.8 | — | 0.8 | ||||||||||||||||||||||||
Common/collective trusts | — | 637.6 | — | 637.6 | — | 710.4 | — | 710.4 | ||||||||||||||||||||||||
Total (1) | $ | 1,035.60 | $ | 3,112.10 | $ | 3 | $ | 4,150.70 | $ | 914.8 | $ | 2,941.50 | $ | 0.6 | $ | 3,856.90 | ||||||||||||||||
(1) | Excludes $251.1 million and $115.6 million of cash and cash equivalents and other receivables at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||
Balance Sheet Offsetting Assets | ' | |||||||||||||||||||||||||||||||
Financial assets, including derivative assets, subject to offsetting and enforceable master netting arrangements as of September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
Recognized Assets (1) | in the Balance Sheets | |||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 0.2 | $ | 9.8 | $ | — | $ | 10 | ||||||||||||||||||||||||
Total | $ | 0.2 | $ | 9.8 | $ | — | $ | 10 | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
Total | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2014 or December 31, 2013. | ||||||||||||||||||||||||||||||||
Balance Sheet Offsetting Liabilities | ' | |||||||||||||||||||||||||||||||
Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
Recognized Liabilities (1) | in the Balance Sheets | |||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Paid | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 38.6 | $ | — | $ | (38.1 | ) | $ | 0.5 | |||||||||||||||||||||||
Securities lending | 870.3 | (870.3 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 908.9 | $ | (870.3 | ) | $ | (38.1 | ) | $ | 0.5 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 1.9 | $ | — | $ | (.7 | ) | $ | 1.2 | |||||||||||||||||||||||
Securities lending | 792.6 | (792.6 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 794.5 | $ | (792.6 | ) | $ | (.7 | ) | $ | 1.2 | ||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at September 30, 2014 or December 31, 2013. |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
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 employee benefit (“OPEB”) plans for the three and nine months ended September 30, 2014 and 2013 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) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Amortization of prior service credit | (.2 | ) | (.1 | ) | (.4 | ) | (.3 | ) | (.9 | ) | (1.0 | ) | (2.7 | ) | (2.7 | ) | ||||||||||||||||
Interest cost | 72.1 | 67.9 | 216.3 | 203.6 | 3 | 2.8 | 8.9 | 8.3 | ||||||||||||||||||||||||
Expected return on plan assets | (105.6 | ) | (99.1 | ) | (316.7 | ) | (297.3 | ) | (.7 | ) | (.6 | ) | (2.3 | ) | (1.8 | ) | ||||||||||||||||
Recognized net actuarial losses | 11.7 | 19 | 35 | 56.6 | 0.2 | 0.6 | 0.7 | 1.7 | ||||||||||||||||||||||||
Net periodic benefit (income) cost | $ | (22.0 | ) | $ | (12.3 | ) | $ | (65.8 | ) | $ | (37.4 | ) | $ | 1.6 | $ | 1.8 | $ | 4.6 | $ | 5.5 | ||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Carrying Value of Long-Term Debt | ' | |||||||
The carrying value of our long-term debt at September 30, 2014 and December 31, 2013 was as follows: | ||||||||
(Millions) | September 30, | December 31, | ||||||
2014 | 2013 | |||||||
Senior notes, 6.3%, due 2014 (1) | $ | — | $ | 387.3 | ||||
Senior notes, 6.125%, due 2015 | 232.1 | 240.6 | ||||||
Senior notes, 6.0%, due 2016 | — | 748.9 | ||||||
Senior notes, 5.95%, due 2017 | 422.3 | 434.2 | ||||||
Senior notes, 1.75%, due 2017 | 249.1 | 248.9 | ||||||
Senior notes, 1.5%, due 2017 | 498.5 | 498.2 | ||||||
Senior notes, 6.5%, due 2018 | 495.1 | 494.9 | ||||||
Senior notes, 2.2%, due 2019 | 374.7 | — | ||||||
Senior notes, 3.95%, due 2020 | 744.9 | 744.3 | ||||||
Senior notes, 5.45%, due 2021 | 692 | 702.3 | ||||||
Senior notes, 4.125%, due 2021 | 495.4 | 494.8 | ||||||
Senior notes, 2.75%, due 2022 | 986.3 | 985.1 | ||||||
Senior notes, 6.625%, due 2036 | 769.8 | 769.8 | ||||||
Senior notes, 6.75%, due 2037 | 530.7 | 530.6 | ||||||
Senior notes, 4.5%, due 2042 | 480.6 | 480.1 | ||||||
Senior notes, 4.125%, due 2042 | 492.8 | 492.6 | ||||||
Senior notes, 4.75%, due 2044 | 374.1 | — | ||||||
Total long-term debt | 7,838.40 | 8,252.60 | ||||||
Less current portion of long-term debt (2) | 232.1 | 387.3 | ||||||
Total long-term debt, less current portion | $ | 7,606.30 | $ | 7,865.30 | ||||
-1 | The 6.3% senior notes were repaid in August 2014. These notes were classified as current in the consolidated balance sheet as of December 31, 2013. | |||||||
(2) | At September 30, 2014, our 6.125% senior notes due January 2015 were classified as current in the accompanying consolidated balance sheet. |
Capital_Stock_Tables
Capital Stock (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Class of Stock Disclosures [Abstract] | ' | ||||||||||
Dividends declared | ' | ||||||||||
During the nine months ended September 30, 2014 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 28, 2014 | $ | 0.225 | April 10, 2014 | April 25, 2014 | $ | 80.4 | |||||
May 30, 2014 | 0.225 | July 10, 2014 | July 25, 2014 | 79.6 | |||||||
September 19, 2014 | 0.225 | October 16, 2014 | October 31, 2014 | 79.2 | |||||||
Black Scholes option pricing model | ' | ||||||||||
The SARs granted to certain employees during the first quarter of 2014 and described above had an estimated fair market value of $22.68 per unit. The fair value per unit was calculated on the grant date using a Black-Scholes option pricing model using the following assumptions: | |||||||||||
Expected term (in years) | 5.72 | ||||||||||
Expected volatility | 35.8 | % | |||||||||
Risk-free interest rate | 1.74 | % | |||||||||
Dividend yield | 1.36 | % | |||||||||
Initial price | $ | 72.26 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Summarized financial information of segments | ' | |||||||||||||||||||
Summarized financial information of our segments for the three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||
(Millions) | Health | Group | Large Case | Corporate | Total Company | |||||||||||||||
Care | Insurance | Pensions | Financing | |||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Revenue from external customers | $ | 13,898.40 | $ | 559.5 | $ | 7 | $ | — | $ | 14,464.90 | ||||||||||
Operating earnings (loss) (1) | 625.6 | 47.9 | 4.9 | (39.8 | ) | 638.6 | ||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers (2) | $ | 12,228.70 | $ | 510.7 | $ | 98.9 | $ | — | $ | 12,838.30 | ||||||||||
Operating earnings (loss) (1) | 627.5 | 20.5 | 6.2 | (49.9 | ) | 604.3 | ||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Revenue from external customers | $ | 40,707.10 | $ | 1,659.90 | $ | 77.3 | $ | — | $ | 42,444.30 | ||||||||||
Operating earnings (loss) (1) | 1,928.90 | 149.7 | 15.1 | (123.1 | ) | 1,970.60 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue from external customers (2) | $ | 31,743.00 | $ | 1,536.80 | $ | 174.2 | $ | — | $ | 33,454.00 | ||||||||||
Operating earnings (loss) (1) | 1,732.80 | 83 | 16.2 | (128.6 | ) | 1,703.40 | ||||||||||||||
(1) | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation below. | |||||||||||||||||||
(2) | In the third quarter of 2013, pursuant to contractual rights exercised by the contract holder, 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 during the third quarter of 2013. | |||||||||||||||||||
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, 2014 and 2013 was as follows: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Operating earnings (1) | $ | 638.6 | $ | 604.3 | $ | 1,970.60 | $ | 1,703.40 | ||||||||||||
Transaction and integration-related costs, net of tax | (23.7 | ) | (34.6 | ) | (101.9 | ) | (140.6 | ) | ||||||||||||
Loss on early extinguishment of long-term debt, net of tax | — | — | (59.7 | ) | — | |||||||||||||||
Release of litigation-related reserve, net of tax | — | — | 67 | — | ||||||||||||||||
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 | ||||||||||||||||
Amortization of other acquired intangible assets, net of tax | (38.7 | ) | (42.5 | ) | (119.4 | ) | (97.2 | ) | ||||||||||||
Net realized capital gains (losses), net of tax | 18.3 | (8.6 | ) | 52.2 | (8.9 | ) | ||||||||||||||
Net income attributable to Aetna | $ | 594.5 | $ | 518.6 | $ | 1,808.80 | $ | 1,544.70 | ||||||||||||
(1) | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other 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 of $23.7 million ($35.3 million pretax) and $101.9 million ($154.8 million pretax) during the three and nine months ended September 30, 2014, respectively, related to the acquisitions of Coventry and InterGlobal, and $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, related to the acquisition of Coventry. 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. 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 Acquisition 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 Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings. | |||||||||||||||||||
• | In the first quarter of 2014, we incurred a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax) related to the redemption of our 6.0% senior notes due 2016. | |||||||||||||||||||
• | In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 13 beginning on page 30 for additional information on the termination of the settlement agreement. | |||||||||||||||||||
• | In the second quarter of 2013, we reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax). 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 16 beginning on page 35 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 reversed the related allowance thereby reducing second quarter 2013 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_Tables
Discontinued Products (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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, 2014 and 2013 (pretax) was as follows: | ||||||||
(Millions) | 2014 | 2013 | ||||||
Reserve, beginning of period | $ | 979.5 | $ | 978.5 | ||||
Operating income (loss) | 3.2 | (8.5 | ) | |||||
Net realized capital gains | 25.8 | 73.7 | ||||||
Reserve reduction | — | (86.0 | ) | |||||
Reserve, end of period | $ | 1,008.50 | $ | 957.7 | ||||
Assets and Liabilities Supporting Discontinued Products | ' | |||||||
Assets and liabilities supporting discontinued products at September 30, 2014 and December 31, 2013 were as | ||||||||
follows: (1) | ||||||||
(Millions) | 2014 | 2013 | ||||||
Assets: | ||||||||
Debt and equity securities available for sale | $ | 2,322.40 | $ | 2,372.60 | ||||
Mortgage loans | 408 | 407 | ||||||
Other investments | 675.7 | 663.9 | ||||||
Total investments | 3,406.10 | 3,443.50 | ||||||
Other assets | 112.3 | 85.2 | ||||||
Collateral received under securities loan agreements | 222.1 | 204.4 | ||||||
Current and deferred income taxes | — | 14.4 | ||||||
Receivable from continuing products (2) | 558 | 533.1 | ||||||
Total assets | $ | 4,298.50 | $ | 4,280.60 | ||||
Liabilities: | ||||||||
Future policy benefits | $ | 2,685.50 | $ | 2,804.80 | ||||
Reserve for anticipated future losses on discontinued products | 1,008.50 | 979.5 | ||||||
Collateral payable under securities loan agreements | 222.1 | 204.4 | ||||||
Current and deferred income taxes | 1.8 | — | ||||||
Other liabilities (3) | 380.6 | 291.9 | ||||||
Total liabilities | $ | 4,298.50 | $ | 4,280.60 | ||||
(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_Details
Organization (Details) (USD $) | 7-May-13 |
In Billions, unless otherwise specified | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Total purchase price for an acquisition | $8.70 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Accounting Changes and Error Corrections [Abstract] | ' |
Reinsurance Recoverable Under Health Care Reform | $162 |
Net (Payable) Receivable under Risk Corridor and Risk Adjustment Programs | ($97) |
Acquisitions_Completed_Disposi2
Acquisitions, Completed Disposition (Details) (USD $) | 7-May-13 |
In Billions, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Total purchase price for an acquisition | $8.70 |
Long-term debt acquired | $1.80 |
Acquisitions_Completed_Disposi3
Acquisitions; Completed Disposition Pro Forma Financials (Details) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Business Acquisition, Pro Forma Information [Abstract] | ' |
Pro Forma Total Revenue | $38,906.60 |
Pro Forma Net Income Attributable to Aetna | $1,775.30 |
Pro Forma Earnings Per Share, Basic | $4.73 |
Pro Forma Earnings Per Share, Diluted | $4.68 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ||||
Total number of shares issued in a business acquisition | ' | ' | ' | ' | 52.2 | ||||
Net income attributable to Aetna | $594.50 | $518.60 | $1,808.80 | $1,544.70 | ' | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' | ' | ' | ' | ||||
Weighted average shares used to compute basic EPS (in shares) | 353.2 | 371.1 | 357.2 | 351.8 | ' | ||||
Dilutive effect of outstanding stock-based compensation awards (in shares) | 3.6 | 4.1 | 3.5 | 3.7 | ' | ||||
Weighted average shares used to compute diluted EPS (in shares) | 356.8 | 375.2 | 360.7 | 355.5 | ' | ||||
Basic EPS (in dollars per share) | $1.68 | $1.40 | $5.06 | $4.39 | ' | ||||
Diluted EPS (in dollars per share) | $1.67 | $1.38 | $5.01 | $4.35 | ' | ||||
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' | ' | ' | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | [1] | 0 | [1] | 0.4 | [1] | 2.2 | [1] | ' |
Market Stock Units [Member] | ' | ' | ' | ' | ' | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | [2] | 0.4 | [2] | 0.1 | [2] | 0.4 | [2] | ' |
Performance Stock Units [Member] | ' | ' | ' | ' | ' | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.8 | [2] | 0.9 | [2] | 0.8 | [2] | 0.8 | [2] | ' |
Performance Stock Appreciation Rights [Member] | ' | ' | ' | ' | ' | ||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.7 | [2] | 0.7 | [2] | 0.4 | [2] | 0.2 | [2] | ' |
[1] | SARs are excluded from 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). | ||||||||
[2] | PSUs, certain MSUs with performance conditions and PSARs are excluded from the calculation of diluted EPS if all necessary performance conditions have not been satisfied at the end of the reporting period. |
Operating_Expenses_Details
Operating Expenses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Selling expenses | $422.30 | ' | $353.90 | ' | $1,238.10 | $983.30 | ||||
General and administrative expenses: | ' | ' | ' | ' | ' | ' | ||||
Salaries and related benefits | 1,134.40 | ' | 1,119.40 | ' | 3,354 | 2,914.50 | ||||
Other general and administrative expenses | 1,158 | [1],[2],[3] | ' | 831.2 | [1],[2],[3] | ' | 3,174.20 | [1],[2],[3] | 2,240.30 | [1],[2],[3] |
Total general and administrative expenses | 2,292.40 | [4] | ' | 1,950.60 | [4] | ' | 6,528.20 | [4] | 5,154.80 | [4] |
Total operating expenses | 2,714.70 | ' | 2,304.50 | ' | 7,766.30 | 6,138.10 | ||||
Health Insurer Fee | 151.5 | ' | ' | ' | 454 | ' | ||||
Contribution to ACA Reinsurance Program | 80.5 | ' | ' | ' | 251.6 | ' | ||||
Litigation Settlement, Expense | ' | ' | ' | 120 | ' | ' | ||||
Release of litigation-related reserve, pre-tax | ' | 103 | ' | ' | ' | ' | ||||
Establishment of allowance on reinsurance recoverable pretax | ' | ' | ' | ' | ' | 42.2 | ||||
Reversal of allowance reinsurance recoverable | ' | ' | ' | ' | ' | 42.2 | ||||
General and administrative transaction and integration-related costs | $35.30 | ' | $51.20 | ' | $154.80 | $171.40 | ||||
[1] | 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 of $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 reversed the related allowance thereby reducing second quarter 2013 other general and administrative expenses by $42.2 million pretax. | |||||||||
[2] | The three and nine months ended SeptemberB 30, 2014 include fees mandated by the ACA comprised primarily of the HIF of $151.5 million and $454.0 million, respectively, and our estimated contribution to the funding of the reinsurance program of $80.5 million and $251.6 million, respectively. Refer to Note 2 beginning on page 6 for additional information on fees mandated by the ACA. | |||||||||
[3] | In the fourth quarter of 2012, we recorded a charge of $120.0 million pretax related to the settlement of purported class action litigation regarding Aetnabs payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffsb counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $103.0 million pretax. Refer to Note 13 beginning on page 30 for additional information on the termination of the settlement agreement. | |||||||||
[4] | The three and nine months ended SeptemberB 30, 2014 include $35.3 million and $154.8 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. The three and nine months ended SeptemberB 30, 2013 include $51.2 million and $171.4 million, respectively, of transaction and integration-related costs related to the acquisition of Coventry, including advisory, legal and other professional services fees and transaction-related payments. |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Total Investments [Line Items] | ' | ' |
Current | $2,462 | $2,063.80 |
Long-term investments | 21,871.50 | 20,935 |
Total investments | 24,333.50 | 22,998.80 |
Debt And Equity Securities Available For Sale [Member] | ' | ' |
Total Investments [Line Items] | ' | ' |
Current | 2,318 | 1,977.40 |
Long-term investments | 18,620.60 | 17,753 |
Total investments | 20,938.60 | 19,730.40 |
Mortgage Loans [Member] | ' | ' |
Total Investments [Line Items] | ' | ' |
Current | 130.9 | 84.9 |
Long-term investments | 1,473.20 | 1,464.70 |
Total investments | 1,604.10 | 1,549.60 |
Other Investments [Member] | ' | ' |
Total Investments [Line Items] | ' | ' |
Current | 13.1 | 1.5 |
Long-term investments | 1,777.70 | 1,717.30 |
Total investments | 1,790.80 | 1,718.80 |
Securities loaned agreements [Member] | ' | ' |
Total Investments [Line Items] | ' | ' |
Securities Loaned, Asset | $840 | $766 |
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, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Non-credit related impairments previously recognized in other comprehensive income | $18.60 | $22.80 | ||
Available-for-sale Securities, Amortized Cost Basis | 19,759.20 | [1] | 18,974.50 | [1] |
Available-for-sale Securities, Gross Unrealized Gains | 1,263.50 | [1] | 1,036.40 | [1] |
Available-for-sale Securities, Gross Unrealized Losses | -84.1 | [1] | -280.5 | [1] |
Available-for-sale Securities, Fair Value Disclosure | 20,938.60 | [1] | 19,730.40 | [1] |
Net Unrealized Capital (Loss) Gains | 4.2 | 6.6 | ||
Supporting Discontinued And Experience Rated Products [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gains | 360.6 | 291.3 | ||
Available-for-sale Securities, Gross Unrealized Losses | -20.8 | -60.3 | ||
Available-for-sale Securities, Fair Value Disclosure | 3,600 | 3,700 | ||
Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 19,721.90 | 18,936 | ||
Available-for-sale Securities, Gross Unrealized Gains | 1,263.10 | 1,009.90 | ||
Available-for-sale Securities, Gross Unrealized Losses | -78.4 | -276.8 | ||
Available-for-sale Securities, Fair Value Disclosure | 20,906.60 | 19,669.10 | ||
US Government Agencies Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 1,364.50 | 1,396.80 | ||
Available-for-sale Securities, Gross Unrealized Gains | 79 | 68.7 | ||
Available-for-sale Securities, Gross Unrealized Losses | -1.2 | -3 | ||
Available-for-sale Securities, Fair Value Disclosure | 1,442.30 | 1,462.50 | ||
US States and Political Subdivisions Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 4,327.50 | 4,118.50 | ||
Available-for-sale Securities, Gross Unrealized Gains | 250.5 | 126.6 | ||
Available-for-sale Securities, Gross Unrealized Losses | -11 | -82.8 | ||
Available-for-sale Securities, Fair Value Disclosure | 4,567 | 4,162.30 | ||
Domestic Corporate Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 7,915.70 | 7,559 | ||
Available-for-sale Securities, Gross Unrealized Gains | 571.4 | 493.7 | ||
Available-for-sale Securities, Gross Unrealized Losses | -40.1 | -110.1 | ||
Available-for-sale Securities, Fair Value Disclosure | 8,447 | 7,942.60 | ||
Foreign Corporate Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 3,285.40 | 3,209.60 | ||
Available-for-sale Securities, Gross Unrealized Gains | 259.5 | 198.9 | ||
Available-for-sale Securities, Gross Unrealized Losses | -13.4 | -53 | ||
Available-for-sale Securities, Fair Value Disclosure | 3,531.50 | 3,355.50 | ||
Residential Mortgage Backed Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 913.8 | 928.4 | ||
Available-for-sale Securities, Gross Unrealized Gains | 22.2 | 16.9 | ||
Available-for-sale Securities, Gross Unrealized Losses | -8 | -21.1 | ||
Available-for-sale Securities, Fair Value Disclosure | 928 | 924.2 | ||
Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 1,340.30 | 1,323.50 | ||
Available-for-sale Securities, Gross Unrealized Gains | 62.6 | 88.2 | ||
Available-for-sale Securities, Gross Unrealized Losses | -2.2 | [2] | -4.7 | [2] |
Available-for-sale Securities, Fair Value Disclosure | 1,400.70 | 1,407 | ||
Other Asset-Backed Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 517.9 | 343.4 | ||
Available-for-sale Securities, Gross Unrealized Gains | 6.4 | 8.3 | ||
Available-for-sale Securities, Gross Unrealized Losses | -2.5 | [2] | -2.1 | [2] |
Available-for-sale Securities, Fair Value Disclosure | 521.8 | 349.6 | ||
Redeemable Preferred Stock [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 56.8 | 56.8 | ||
Available-for-sale Securities, Gross Unrealized Gains | 11.5 | 8.6 | ||
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 | ||
Available-for-sale Securities, Fair Value Disclosure | 68.3 | 65.4 | ||
Equity Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Amortized Cost Basis | 37.3 | 38.5 | ||
Available-for-sale Securities, Gross Unrealized Gains | 0.4 | 26.5 | ||
Available-for-sale Securities, Gross Unrealized Losses | -5.7 | -3.7 | ||
Available-for-sale Securities, Fair Value Disclosure | $32 | $61.30 | ||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 16 beginning on page 35 for additional information on our accounting for discontinued products). At SeptemberB 30, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $360.6 million and gross unrealized capital losses of $20.8 million and, at DecemberB 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 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, 2014 and DecemberB 31, 2013, we held securities for which we previously recognized $18.6 million and $22.8 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at SeptemberB 30, 2014 and December 31, 2013 of $4.2 million and $6.6 million, respectively. |
Investments_Debt_Securities_by
Investments - Debt Securities by Maturity (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' | ||
Available-for-sale Securities, Fair Value Disclosure | $20,938.60 | [1] | $19,730.40 | [1] |
Debt Securities [Member] | ' | ' | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' | ||
Available-for-sale Securities, Fair Value Disclosure | 20,906.60 | 19,669.10 | ||
Available-for-sale Securities With Established Maturities [Member] | ' | ' | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' | ||
Due To Mature Less Than One Year | 1,177.90 | ' | ||
Due to mature one year through five years | 5,636.20 | ' | ||
Due to mature after five years through ten years | 5,693.50 | ' | ||
Due to mature greater than ten years | 5,548.50 | ' | ||
Residential Mortgage Backed Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available For Sale Securities, Weighted Average Duration Of Securities | '4 years 7 months 13 days | ' | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' | ||
Available-for-sale Securities, Fair Value Disclosure | 928 | 924.2 | ||
Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available For Sale Securities, Weighted Average Duration Of Securities | '1 year 11 months 24 days | ' | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' | ||
Available-for-sale Securities, Fair Value Disclosure | 1,400.70 | 1,407 | ||
Other Asset-Backed Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available For Sale Securities, Weighted Average Duration Of Securities | '1 year 9 months 7 days | ' | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' | ||
Available-for-sale Securities, Fair Value Disclosure | $521.80 | $349.60 | ||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 16 beginning on page 35 for additional information on our accounting for discontinued products). At SeptemberB 30, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $360.6 million and gross unrealized capital losses of $20.8 million and, at DecemberB 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 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, 2014 | Dec. 31, 2013 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $2,572.80 | [1] | $6,203.50 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 26.1 | [1] | 230.7 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,617.10 | [1] | 490.6 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 58 | [1] | 49.8 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,189.90 | [1] | 6,694.10 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 84.1 | [1] | 280.5 | [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 | 581.1 | 1,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 20.8 | 60.3 | ||
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 | 2,572.80 | 6,203.50 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 26.1 | 230.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,608.50 | 474.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 52.3 | 46.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,181.30 | [1] | 6,677.90 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 78.4 | [1] | 276.8 | [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 | 572.5 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 15.1 | ' | ||
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 | 3,608.80 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 63.3 | ' | ||
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 | 129.8 | 555.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.5 | 2.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 27.5 | 13.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.7 | 0.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 157.3 | [1] | 569.3 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1.2 | [1] | 3 | [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 | 350.6 | 1,779.90 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 2.3 | 73.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 492.2 | 132.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 8.7 | 9.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 842.8 | [1] | 1,912.30 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 11 | [1] | 82.8 | [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 | 1,271.30 | 2,196.80 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 14.7 | 88 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 593 | 170 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 25.4 | 22.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,864.30 | [1] | 2,366.80 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 40.1 | [1] | 110.1 | [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 | 441.5 | 875.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 6.3 | 43.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 181.5 | 90.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 7.1 | 9.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 623 | [1] | 966.1 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 13.4 | [1] | 53 | [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 | 59.9 | 541.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.2 | 17.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 205.2 | 35 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 7.8 | 3.8 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 265.1 | [1] | 576.1 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 8 | [1] | 21.1 | [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 | 77.4 | 162.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.3 | 4.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 79.7 | 25 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 1.9 | 0.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 157.1 | [1] | 187.4 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2.2 | [1] | 4.7 | [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 | 242.3 | 87.8 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 1.8 | 1.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 29.4 | 7.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.7 | 0.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 271.7 | [1] | 95.5 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 2.5 | [1] | 2.1 | [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 | ' | 4.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | ' | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | ' | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | ' | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | 4.4 | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | ' | 0 | [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 | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 8.6 | 16.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 5.7 | 3.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 8.6 | [1] | 16.2 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $5.70 | [1] | $3.70 | [1] |
[1] | At SeptemberB 30, 2014 and DecemberB 31, 2013, debt and equity securities in an unrealized capital loss position of $20.8 million and $60.3 million, respectively, and with related fair value of $581.1 million and $1.0 billion, 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, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $84.10 | [1] | $280.50 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,189.90 | [1] | 6,694.10 | [1] |
Debt Securities [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 78.4 | [1] | 276.8 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,181.30 | [1] | 6,677.90 | [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 | 63.3 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,608.80 | ' | ||
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 | 20.8 | 60.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 581.1 | 1,000 | ||
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 | 15.1 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 572.5 | ' | ||
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 | 0.4 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 34.5 | ' | ||
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 | 0.4 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 34.5 | ' | ||
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 | 6.9 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 952.8 | ' | ||
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 | 6.6 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 917.7 | ' | ||
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 | 0.3 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 35.1 | ' | ||
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 | 27.5 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,490 | ' | ||
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 | 22.8 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,243.70 | ' | ||
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 | 4.7 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 246.3 | ' | ||
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 | 30.9 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,010.10 | ' | ||
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 | 20.9 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 729 | ' | ||
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 | 10 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 281.1 | ' | ||
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 | 8 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 265.1 | ' | ||
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 | 8 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 259.1 | ' | ||
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 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 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 | 2.2 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 157.1 | ' | ||
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 | 2.1 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 153.1 | ' | ||
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 | 0.1 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4 | ' | ||
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 | 2.5 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 271.7 | ' | ||
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 | 2.5 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 271.7 | ' | ||
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 | ' | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $0 | ' | ||
[1] | At SeptemberB 30, 2014 and DecemberB 31, 2013, debt and equity securities in an unrealized capital loss position of $20.8 million and $60.3 million, respectively, and with related fair value of $581.1 million and $1.0 billion, 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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' | ' |
OTTI losses on debt securities recognized in earnings | ($3) | ($2.40) | ($3.30) | ($29.60) |
Net realized capital gains (losses), excluding OTTI losses on securities | 31.3 | -10.3 | 83.9 | 17.4 |
Net realized capital gains (losses) | 28.3 | -12.7 | 80.6 | -12.2 |
Debt Securities [Member] | ' | ' | ' | ' |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' | ' |
Proceeds On Sales | 955.3 | 1,434 | 2,979 | 5,216.50 |
Gross Realized Capital Gains | 34.2 | 25 | 78.7 | 83.9 |
Gross Realized Capital Losses | $5.10 | $34.90 | $27.10 | $78.30 |
Investments_Mortgage_Loans_Det
Investments - Mortgage Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate, Foreclosures | $0 | $0 | $0 | $0 | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | ' | ' | ' | ' |
New Mortgage Loans | 44.1 | 62.8 | 185 | 126.4 | ' |
Mortgage loans fully repaid | 17.3 | 49.1 | 73.9 | 168.7 | ' |
Mortgage Loans on Real Estate | 1,604.10 | ' | 1,604.10 | ' | 1,549.60 |
Category 1 [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate | 75.2 | ' | 75.2 | ' | 69.2 |
Category 2 to 4 [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate | 1,466.70 | ' | 1,466.70 | ' | 1,399.60 |
Category 5 [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate | 21.5 | ' | 21.5 | ' | 30.6 |
Categories 6 and 7 [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate | $40.70 | ' | $40.70 | ' | $50.20 |
Investments_Variable_Interest_
Investments - Variable Interest Entities and Noncontrolling Interests (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | $21,871,500,000 | ' | $21,871,500,000 | ' | $20,935,000,000 | $210,000,000 | $205,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity Assets | ' | ' | ' | ' | ' | ' | ' | 5,700,000,000 | 5,800,000,000 | 7,100,000,000 | 7,000,000,000 | ' | ' | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | 61,200,000 | ' | 61,200,000 | ' | 52,700,000 | ' | ' | ' | ' | ' | ' | 61,200,000 | 51,300,000 | 52,700,000 | 23,400,000 |
Noncontrolling Interest [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to non-controlling interest | $4,300,000 | $400,000 | $6,600,000 | ($1,600,000) | ' | ' | ' | ' | ' | ' | ' | $6,600,000 | ($1,600,000) | ' | ' |
Investments_Investment_Income_
Investments - Investment Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' | ||
Gross investment income | $245.50 | $218.90 | $735.20 | $696.80 | ||
Investment expenses | -10.9 | -8.9 | -28.1 | -26.7 | ||
Net Investment Income | 234.6 | [1] | 210 | [1] | 707.1 | 670.1 |
Supporting Discontinued And Experience Rated Products [Member] | ' | ' | ' | ' | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' | ||
Net Investment Income | 72.5 | 61.5 | 216.4 | 210.3 | ||
Debt Securities [Member] | ' | ' | ' | ' | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' | ||
Gross investment income | 198.9 | 193.9 | 595.2 | 573.9 | ||
Mortgage Loans [Member] | ' | ' | ' | ' | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' | ||
Gross investment income | 24.1 | 27.2 | 82.1 | 76.1 | ||
Other Investments [Member] | ' | ' | ' | ' | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' | ||
Gross investment income | $22.50 | ($2.20) | $57.90 | $46.80 | ||
[1] | Net investment income includes $72.5 million and $216.4 million for the three and nine months ended SeptemberB 30, 2014, respectively, and $61.5 million and $210.3 million for the three and nine months ended SeptemberB 30, 2013, 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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | ($912.10) | ' | ||||
Other comprehensive (loss) income | -74.2 | 18.9 | 181.8 | -422.7 | ||||
Balance at end of period | -730.3 | ' | -730.3 | ' | ||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ' | ' | ' | ' | ||||
Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ||||
Net unrealized gains (losses) | ' | ' | -1.2 | [1] | -40.8 | [1] | ||
Net unrealized gains (losses) on securities, reclassification of gains to earnings | ' | ' | -0.2 | [1],[2] | 20.6 | [1],[2] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | 34.2 | [1] | 57.3 | [1] | ||
Other comprehensive (loss) income | ' | ' | -1.4 | [1] | -20.2 | [1] | ||
Balance at end of period | 32.8 | [1] | 37.1 | [1] | 32.8 | [1] | 37.1 | [1] |
Net Unrealized Gains (Losses) All Other Securities [Member] | ' | ' | ' | ' | ||||
Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ||||
Net unrealized gains (losses) | ' | ' | 212.5 | -481.1 | ||||
Net unrealized gains (losses) on securities, reclassification of gains to earnings | ' | ' | -6.2 | [2] | 17.2 | [2] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | 326.8 | 825.2 | ||||
Other comprehensive (loss) income | ' | ' | 206.3 | -463.9 | ||||
Balance at end of period | 533.1 | 361.3 | 533.1 | 361.3 | ||||
Net Unrealized Gains (Losses) Foreign Currency And Derivatives [Member] | ' | ' | ' | ' | ||||
Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ||||
Net unrealized gains (losses) | ' | ' | -36 | 22.9 | ||||
Foreign currency and derivatives reclassification of losses to earnings | ' | ' | -8.3 | [3] | 2.6 | [3] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | 0.4 | -29.5 | ||||
Other comprehensive (loss) income | ' | ' | -44.3 | 25.5 | ||||
Balance at end of period | -43.9 | -4 | -43.9 | -4 | ||||
Pension And OPEB Plans Unrecognized Net Actuarial (Losses) [Member] | ' | ' | ' | ' | ||||
Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ||||
Other comprehensive income, Pensions and Other Post Retirement Employee Benefit Plans, net of tax | ' | ' | 0 | 0 | ||||
Amortization of net actuarial losses | ' | ' | 23.2 | [4] | 37.9 | [4] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | -1,293.80 | -1,909.40 | ||||
Other comprehensive (loss) income | ' | ' | 23.2 | 37.9 | ||||
Balance at end of period | -1,270.60 | -1,871.50 | -1,270.60 | -1,871.50 | ||||
Pension And OPEB Plans Unrecognized Prior Service Cost [Member] | ' | ' | ' | ' | ||||
Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ||||
Other comprehensive income, Pensions and Other Post Retirement Employee Benefit Plans, net of tax | ' | ' | 0 | 0 | ||||
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] | -2 | [4] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | 20.3 | 23 | ||||
Other comprehensive (loss) income | ' | ' | -2 | -2 | ||||
Balance at end of period | 18.3 | 21 | 18.3 | 21 | ||||
Accumulated Other Comprehensive Loss [Member] | ' | ' | ' | ' | ||||
Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ' | ' | 175.3 | -499 | ||||
Other Comprehensive Income Loss Net Of Tax Reclassification To Earnings | ' | ' | 6.5 | 76.3 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | -912.1 | -1,033.40 | ||||
Other comprehensive (loss) income | ' | ' | 181.8 | -422.7 | ||||
Balance at end of period | ($730.30) | ($1,456.10) | ($730.30) | ($1,456.10) | ||||
[1] | Represents unrealized 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. | |||||||
[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 Statements 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 Statements of Income, except for the effective portion of derivatives related to interest rate swaps which are reflected in interest expense and were not material during the nine months ended SeptemberB 30, 2014 or 2013. Refer to Note 10 of Condensed Notes to Consolidated Financial Statements beginning on page 27 for additional information. | |||||||
[4] | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statements of Income. Refer to Note 9 of Condensed Notes to Consolidated Financial Statements beginning on pageB 26 for additional information. |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | $1,900,000 | $3,800,000 | $1,900,000 | $3,800,000 | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 20,938,600,000 | [1] | ' | 20,938,600,000 | [1] | ' | 19,730,400,000 | [1] |
Gross transfers out of level 3 | -2,000,000 | -21,700,000 | -15,300,000 | -48,900,000 | ' | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | -100,000 | -17,900,000 | -13,400,000 | -45,100,000 | ' | |||
Debt Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 20,906,600,000 | ' | 20,906,600,000 | ' | 19,669,100,000 | |||
US Government Agencies Debt Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 1,442,300,000 | ' | 1,442,300,000 | ' | 1,462,500,000 | |||
US States and Political Subdivisions Debt Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 4,567,000,000 | ' | 4,567,000,000 | ' | 4,162,300,000 | |||
Domestic Corporate Debt Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 8,447,000,000 | ' | 8,447,000,000 | ' | 7,942,600,000 | |||
Foreign Corporate Debt Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 3,531,500,000 | ' | 3,531,500,000 | ' | 3,355,500,000 | |||
Residential Mortgage Backed Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 928,000,000 | ' | 928,000,000 | ' | 924,200,000 | |||
Commercial Mortgage Backed Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 1,400,700,000 | ' | 1,400,700,000 | ' | 1,407,000,000 | |||
Other Asset-Backed Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 521,800,000 | ' | 521,800,000 | ' | 349,600,000 | |||
Redeemable Preferred Stock [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 68,300,000 | ' | 68,300,000 | ' | 65,400,000 | |||
Equity Securities [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 32,000,000 | ' | 32,000,000 | ' | 61,300,000 | |||
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 | 1,241,600,000 | ' | 1,241,600,000 | ' | 1,254,600,000 | |||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | |||
Derivative Liabilities | 38,600,000 | ' | 38,600,000 | ' | 1,900,000 | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Derivative Assets | 200,000 | ' | 200,000 | ' | 49,100,000 | |||
Assets, Fair Value Disclosure | 19,541,600,000 | ' | 19,541,600,000 | ' | 18,360,400,000 | |||
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 | 155,600,000 | ' | 155,600,000 | ' | 164,500,000 | |||
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 | 38,600,000 | ' | 38,600,000 | ' | 1,900,000 | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Derivative Assets | 200,000 | ' | 200,000 | ' | 49,100,000 | |||
Assets, Fair Value Disclosure | 20,938,800,000 | ' | 20,938,800,000 | ' | 19,779,500,000 | |||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 1 [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 1,232,700,000 | ' | 1,232,700,000 | ' | 1,237,500,000 | |||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 2 [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 19,541,400,000 | ' | 19,541,400,000 | ' | 18,311,300,000 | |||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 3 [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 132,500,000 | ' | 132,500,000 | ' | 120,300,000 | |||
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 | 20,906,600,000 | ' | 20,906,600,000 | ' | 19,669,100,000 | |||
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 | 1,232,700,000 | ' | 1,232,700,000 | ' | 1,237,500,000 | |||
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 | 209,600,000 | ' | 209,600,000 | ' | 225,000,000 | |||
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 | 1,442,300,000 | ' | 1,442,300,000 | ' | 1,462,500,000 | |||
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 | 4,565,800,000 | ' | 4,565,800,000 | ' | 4,161,000,000 | |||
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 | 1,200,000 | ' | 1,200,000 | ' | 1,300,000 | |||
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 | 4,567,000,000 | ' | 4,567,000,000 | ' | 4,162,300,000 | |||
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 | 8,398,400,000 | ' | 8,398,400,000 | ' | 7,911,400,000 | |||
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 | 48,600,000 | ' | 48,600,000 | ' | 31,200,000 | |||
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 | 8,447,000,000 | ' | 8,447,000,000 | ' | 7,942,600,000 | |||
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 | 3,502,800,000 | ' | 3,502,800,000 | ' | 3,311,600,000 | |||
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 | 28,700,000 | ' | 28,700,000 | ' | 43,900,000 | |||
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 | 3,531,500,000 | ' | 3,531,500,000 | ' | 3,355,500,000 | |||
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 | 928,000,000 | ' | 928,000,000 | ' | 924,200,000 | |||
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 | 928,000,000 | ' | 928,000,000 | ' | 924,200,000 | |||
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 | 1,393,200,000 | ' | 1,393,200,000 | ' | 1,399,500,000 | |||
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 | 7,500,000 | ' | 7,500,000 | ' | 7,500,000 | |||
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 | 1,400,700,000 | ' | 1,400,700,000 | ' | 1,407,000,000 | |||
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 | 479,400,000 | ' | 479,400,000 | ' | 317,300,000 | |||
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 | 42,400,000 | ' | 42,400,000 | ' | 32,300,000 | |||
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 | 521,800,000 | ' | 521,800,000 | ' | 349,600,000 | |||
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 | 64,200,000 | ' | 64,200,000 | ' | 61,300,000 | |||
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 | ' | 4,100,000 | |||
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 | 68,300,000 | ' | 68,300,000 | ' | 65,400,000 | |||
Fair Value, Measurements, Recurring [Member] | Brokered Securities [Member] | Level 3 [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 115,000,000 | ' | 115,000,000 | ' | 103,000,000 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 1 [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 8,900,000 | ' | 8,900,000 | ' | 17,100,000 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 2 [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 0 | ' | 0 | ' | 0 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 3 [Member] | ' | ' | ' | ' | ' | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Fair Value Disclosure | 23,100,000 | ' | 23,100,000 | ' | 44,200,000 | |||
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 | 32,000,000 | ' | 32,000,000 | ' | 61,300,000 | |||
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 | ' | 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 | 219,200,000 | ' | 219,200,000 | ' | 171,500,000 | |||
Investment contracts with a fixed maturity | 0 | ' | 0 | ' | 0 | |||
Investment contracts without a fixed maturity | 0 | ' | 0 | ' | 0 | |||
Long-term debt | 8,452,800,000 | ' | 8,452,800,000 | ' | 8,670,600,000 | |||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ' | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | |||
Mortgage loans | 1,654,800,000 | ' | 1,654,800,000 | ' | 1,584,800,000 | |||
Bank loans | 9,700,000 | ' | 9,700,000 | ' | 9,800,000 | |||
Investment contracts with a fixed maturity | 9,000,000 | ' | 9,000,000 | ' | 8,900,000 | |||
Investment contracts without a fixed maturity | 558,800,000 | ' | 558,800,000 | ' | 553,200,000 | |||
Long-term debt | 0 | ' | 0 | ' | 0 | |||
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 | 1,654,800,000 | ' | 1,654,800,000 | ' | 1,584,800,000 | |||
Bank loans | 228,900,000 | ' | 228,900,000 | ' | 181,300,000 | |||
Investment contracts with a fixed maturity | 9,000,000 | ' | 9,000,000 | ' | 8,900,000 | |||
Investment contracts without a fixed maturity | 558,800,000 | ' | 558,800,000 | ' | 553,200,000 | |||
Long-term debt | 8,452,800,000 | ' | 8,452,800,000 | ' | 8,670,600,000 | |||
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 | 1,604,100,000 | ' | 1,604,100,000 | ' | 1,549,600,000 | |||
Bank loans | 232,000,000 | ' | 232,000,000 | ' | 181,700,000 | |||
Equity Securities (Cost Method) | 30,000,000 | [2] | ' | 30,000,000 | [2] | ' | ' | |
Investment contracts with a fixed maturity | 9,000,000 | ' | 9,000,000 | ' | 8,900,000 | |||
Investment contracts without a fixed maturity | 563,100,000 | ' | 563,100,000 | ' | 572,300,000 | |||
Long-term debt | $7,838,400,000 | ' | $7,838,400,000 | ' | $8,252,600,000 | |||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 16 beginning on page 35 for additional information on our accounting for discontinued products). At SeptemberB 30, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $360.6 million and gross unrealized capital losses of $20.8 million and, at DecemberB 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 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] | It was not practical to estimate the fair value of the cost-method investment as it represents common stock of an unlisted company. |
Financial_Instruments_Separate
Financial Instruments - Separate Accounts Fair Value (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ' | ' | ' | ' | ' | |||
Gross transfers into Level 3, Separate Accounts | $0 | $0 | $0 | $0 | ' | |||
Separate Account Assets | 4,401.80 | ' | 4,401.80 | ' | 3,972.50 | |||
Gross transfers out of separate accounts | 0 | 0 | 0 | 4.6 | ' | |||
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] | ' | ' | ' | ' | ' | |||
Separate Account Assets | 4,150.70 | [1] | ' | 4,150.70 | [1] | ' | 3,856.90 | [1] |
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 | 1,035.60 | [1] | ' | 1,035.60 | [1] | ' | 914.8 | [1] |
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 | 3,112.10 | [1] | ' | 3,112.10 | [1] | ' | 2,941.50 | [1] |
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 | 3 | [1] | ' | 3 | [1] | ' | 0.6 | [1] |
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 | 853.4 | ' | 853.4 | ' | 726.4 | |||
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 | 2,467.30 | ' | 2,467.30 | ' | 2,227 | |||
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 | 3 | ' | 3 | ' | 0.6 | |||
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 | 3,323.70 | ' | 3,323.70 | ' | 2,954 | |||
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 | 182.2 | ' | 182.2 | ' | 188.4 | |||
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 | 5.7 | ' | 5.7 | ' | 3.3 | |||
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 | 187.9 | ' | 187.9 | ' | 191.7 | |||
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 | 1.5 | ' | 1.5 | ' | 0.8 | |||
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 | 1.5 | ' | 1.5 | ' | 0.8 | |||
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 | 637.6 | ' | 637.6 | ' | 710.4 | |||
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 | 637.6 | ' | 637.6 | ' | 710.4 | |||
Cash and Cash Equivalents [Member] | ' | ' | ' | ' | ' | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ' | ' | ' | ' | ' | |||
Separate Account Assets | $251.10 | ' | $251.10 | ' | $115.60 | |||
[1] | Excludes $251.1 million and $115.6 million of cash and cash equivalents and other receivables at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. |
Financial_Instruments_Balance_
Financial Instruments - Balance Sheet Offsetting (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Collateral received under securities loan agreements | $870.30 | $792.60 | ||
Net amount subject to offsetting (Liabilities) | 0.5 | 1.2 | ||
Total Gross Liabilities Recognized Subject to Offsetting | 908.9 | [1] | 794.5 | [1] |
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0.2 | [1] | 49.1 | [1] |
Derivative Assets (including collateral) | 10 | 15.3 | ||
Financial Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Collateral Already Posted, Aggregate Fair Value (Assets) | 9.8 | 13.3 | ||
Collateral Already Posted, Aggregate Fair Value (Liabilities) | -870.3 | -792.6 | ||
Cash [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Cash collateral received (Assets) | 0 | -47.1 | ||
Collateral Already Posted, Aggregate Fair Value (Liabilities) | -38.1 | -0.7 | ||
Derivative [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Liabilities (including collateral) | 0.5 | 1.2 | ||
Derivative Liability, Fair Value, Gross Liability | 38.6 | [1] | 1.9 | [1] |
Derivative [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0.2 | [1] | 49.1 | [1] |
Derivative Assets (including collateral) | 10 | 15.3 | ||
Derivative [Member] | Financial Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Collateral Already Posted, Aggregate Fair Value (Assets) | 9.8 | 13.3 | ||
Collateral Already Posted, Aggregate Fair Value (Liabilities) | 0 | 0 | ||
Derivative [Member] | Cash [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Cash collateral received (Assets) | 0 | -47.1 | ||
Collateral Already Posted, Aggregate Fair Value (Liabilities) | -38.1 | -0.7 | ||
Securities loaned agreements [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Collateral received under securities loan agreements | 870.3 | [1] | 792.6 | [1] |
Securities loaned agreements, net amount | 0 | 0 | ||
Securities loaned agreements [Member] | Financial Instruments [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Collateral Payable Under Securities Loan Agreements (Liabilities) | -870.3 | -792.6 | ||
Securities loaned agreements [Member] | Cash [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Collateral Already Posted, Aggregate Fair Value (Liabilities) | $0 | $0 | ||
[1] | There were no amounts offset in our balance sheets at SeptemberB 30, 2014 or DecemberB 31, 2013. |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Lump Sum Distribution | 100.00% | ' | 100.00% | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Limited-time offer lump-sum pension distribution | 100.00% | ' | 100.00% | ' |
Pension Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | $0 | $0 | $0 | $0 |
Amortization of prior service credit | -0.2 | -0.1 | -0.4 | -0.3 |
Interest cost | 72.1 | 67.9 | 216.3 | 203.6 |
Expected Return on Plan Assets | -105.6 | -99.1 | -316.7 | -297.3 |
Amortization of net actuarial losses | 11.7 | 19 | 35 | 56.6 |
Net periodic benefit (income) cost | -22 | -12.3 | -65.8 | -37.4 |
OPEB Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | 0 | 0 | 0 | 0 |
Amortization of prior service credit | -0.9 | -1 | -2.7 | -2.7 |
Interest cost | 3 | 2.8 | 8.9 | 8.3 |
Expected Return on Plan Assets | -0.7 | -0.6 | -2.3 | -1.8 |
Amortization of net actuarial losses | 0.2 | 0.6 | 0.7 | 1.7 |
Net periodic benefit (income) cost | $1.60 | $1.80 | $4.60 | $5.50 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Loss on early extinguishment of debt | $0 | $91.90 | $0 | $91.90 | $0 | ' | |||
Proceeds from Issuance of Long-term Debt | ' | ' | ' | 741.9 | 0 | ' | |||
Derivative, Cash Received on Hedge | ' | 34.2 | ' | ' | ' | ' | |||
Gain on Cash Flow Hedge Ineffectiveness | ' | 12 | ' | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | ' | 22 | ' | ' | ' | ' | |||
Long-term Debt | 7,838.40 | ' | ' | 7,838.40 | ' | 8,252.60 | |||
Current portion of long-term debt | 232.1 | [1] | ' | ' | 232.1 | [1] | ' | 387.3 | [1] |
Loss on early extinguishment of debt, net of tax | 0 | 59.7 | 0 | 59.7 | 0 | ' | |||
Long-term debt, less current portion | 7,606.30 | ' | ' | 7,606.30 | ' | 7,865.30 | |||
Early Repayment of Senior Debt | ' | 750 | ' | ' | ' | ' | |||
Senior Notes, 6.3%, due 2014 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Current portion of long-term debt | 0 | [2] | ' | ' | 0 | [2] | ' | 387.3 | [2] |
Debt Instrument, Interest Rate, Stated Percentage | 6.30% | ' | ' | 6.30% | ' | 6.30% | |||
Senior Notes, 6.125%, Due 2015 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Current portion of long-term debt | 232.1 | ' | ' | 232.1 | ' | 240.6 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | ' | ' | 6.13% | ' | 6.13% | |||
Senior Notes, 6.0%, Due 2016 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 0 | ' | ' | 0 | ' | 748.9 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ' | ' | 6.00% | ' | 6.00% | |||
Senior Notes, 5.95%, Due 2017 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 422.3 | ' | ' | 422.3 | ' | 434.2 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | ' | ' | 5.95% | ' | 5.95% | |||
Senior Notes, 1.75%, Due 2017 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 249.1 | ' | ' | 249.1 | ' | 248.9 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ' | ' | 1.75% | ' | 1.75% | |||
Senior Notes, 1.5%, Due 2017 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 498.5 | ' | ' | 498.5 | ' | 498.2 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ' | ' | 1.50% | ' | 1.50% | |||
Senior Notes, 6.5%, Due 2018 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 495.1 | ' | ' | 495.1 | ' | 494.9 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ' | ' | 6.50% | ' | 6.50% | |||
Senior Notes, 2.2%, Due 2019 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Proceeds from Issuance of Long-term Debt | ' | 375 | ' | ' | ' | ' | |||
Long-term Debt | 374.7 | ' | ' | 374.7 | ' | 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.20% | 2.20% | ' | 2.20% | ' | 2.20% | |||
Senior Notes, 3.95%, Due 2020 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 744.9 | ' | ' | 744.9 | ' | 744.3 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ' | ' | 3.95% | ' | 3.95% | |||
Senior Notes, 5.45%, Due 2021 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 692 | ' | ' | 692 | ' | 702.3 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.45% | ' | ' | 5.45% | ' | 5.45% | |||
Senior Notes, 4.125%, Due 2021 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 495.4 | ' | ' | 495.4 | ' | 494.8 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.13% | ' | ' | 4.13% | ' | 4.13% | |||
Senior Notes, 2.75%, Due 2022 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 986.3 | ' | ' | 986.3 | ' | 985.1 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | ' | ' | 2.75% | ' | 2.75% | |||
Senior Notes, 6.625%, Due 2036 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 769.8 | ' | ' | 769.8 | ' | 769.8 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.63% | ' | ' | 6.63% | ' | 6.63% | |||
Senior Notes, 6.75%, Due 2037 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 530.7 | ' | ' | 530.7 | ' | 530.6 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ' | ' | 6.75% | ' | 6.75% | |||
Senior Notes, 4.5%, Due 2042 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 480.6 | ' | ' | 480.6 | ' | 480.1 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ' | ' | 4.50% | ' | 4.50% | |||
Senior Notes, 4.125%, Due 2042 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Long-term Debt | 492.8 | ' | ' | 492.8 | ' | 492.6 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.13% | ' | ' | 4.13% | ' | 4.13% | |||
Senior Notes, 4.75%, Due 2044 [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Proceeds from Issuance of Long-term Debt | ' | 375 | ' | ' | ' | ' | |||
Long-term Debt | 374.1 | ' | ' | 374.1 | ' | 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | ' | 4.75% | ' | 4.75% | |||
April 2014 Cash Flow Hedge [Domain] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Derivative, Notional Amount | 250 | ' | ' | 250 | ' | ' | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | 11.2 | ' | ' | 11.2 | ' | ' | |||
March 2014 Cash Flow Hedge [Domain] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Derivative, Notional Amount | 500 | ' | ' | 500 | ' | ' | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | 26.8 | ' | ' | 26.8 | ' | ' | |||
Cash Flow Hedging [Member] | ' | ' | ' | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |||
Derivative, Notional Amount | ' | $375 | ' | ' | ' | ' | |||
[1] | At SeptemberB 30, 2014, our 6.125% senior notes due January 2015 were classified as current in the accompanying consolidated balance sheet. | ||||||||
[2] | The 6.3% senior notes were repaid in August 2014. These notes were classified as current in the consolidated balance sheet as of December 31, 2013. |
Debt_Shortterm_Debt_Details
Debt - Short-term Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ' | ' |
Commercial Paper | $75,000,000 | $0 |
Commercial Paper, Weighted Average Interest Rate | 0.21% | ' |
Debt_Line_of_Credit_Details
Debt - Line of Credit (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
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 | '.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% |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Unsecured revolving credit agreement | $2,500,000,000 |
Capital_Stock_Repurchases_Deta
Capital Stock - Repurchases (Details) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2014 | Oct. 01, 2014 | Jul. 29, 2014 | Jul. 01, 2014 |
Treasury Stock [Member] | October Accelerated Share Repurchase Program [Member] | July Accelerated Share Repurchase Program [Member] | July Accelerated Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | $750 | $1,000 | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | 13 | ' | ' | ' | ' | 1.2 | ' |
Stock Repurchased During Period, Value | 975 | 957.7 | ' | 975 | ' | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 622 | ' | ' | ' | ' | ' | ' |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | ' | ' | ' | ' | $100 | ' | $100 |
Capital_Stock_Dividends_Detail
Capital Stock - Dividends (Details) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Class of Stock Disclosures [Abstract] | ' | ' | ' |
Dividends Amount Per Share | $0.23 | $0.23 | $0.23 |
Dividends | $79.20 | $79.60 | $80.40 |
Capital_Stock_Stock_Units_Deta
Capital Stock - Stock Units (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
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% |
Performance Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0.4 |
Market Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0.5 |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Stock Appreciation Rights (SARs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Estimated Fair Market Value (per unit) | 22.68 |
Expected Term (in years) | '5 years 263 days |
Expected Volatility | 35.80% |
Risk Free Interest Rate | 1.74% |
Dividend Yield | 1.36% |
Initial Price | 72.26 |
Dividend_Restrictions_and_Stat1
Dividend Restrictions and Statutory Surplus (Details) (Insurance and HMO [Member], USD $) | 3 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Insurance and HMO [Member] | ' | ' |
Dividend Restrictions and Statutory Surplus [Line Items] | ' | ' |
Dividends available | $1,200,000,000 | ' |
Proceeds from dividends received | 366,000,000 | ' |
Statutory capital and surplus | $8,700,000,000 | $8,400,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ' | ' | ' |
Litigation Settlement, Expense | ' | $120 | ' |
Settlement of class action litigation, after-tax | ' | 78 | ' |
Release of litigation-related reserve, after-tax | 67 | ' | ' |
Release of litigation-related reserve, pre-tax | 103 | ' | ' |
Charges for changes in our life claim payments practices, net of tax | ' | ' | 35.7 |
Charge for changes in our life claim payment practices | ' | ' | $55 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Group Annuity Contract Conversion Premium | $0 | $54.10 | $0 | $54.10 | ||||
Benefit Expense On Group Annuity Contract Conversion | 0 | 54.1 | 0 | 54.1 | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ||||
Revenue from external customers | 14,464.90 | 12,838.30 | [1] | 42,444.30 | 33,454 | [1] | ||
Operating Earnings | 638.6 | [2],[3] | 604.3 | [2],[3] | 1,970.60 | [2],[3] | 1,703.40 | [2],[3] |
Health Care [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ||||
Revenue from external customers | 13,898.40 | 12,228.70 | [1] | 40,707.10 | 31,743 | [1] | ||
Operating Earnings | 625.6 | [2] | 627.5 | [2] | 1,928.90 | [2] | 1,732.80 | [2] |
Group Insurance [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ||||
Revenue from external customers | 559.5 | 510.7 | [1] | 1,659.90 | 1,536.80 | [1] | ||
Operating Earnings | 47.9 | [2] | 20.5 | [2] | 149.7 | [2] | 83 | [2] |
Large Case Pension [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ||||
Revenue from external customers | 7 | 98.9 | [1] | 77.3 | 174.2 | [1] | ||
Operating Earnings | 4.9 | [2] | 6.2 | [2] | 15.1 | [2] | 16.2 | [2] |
Corporate Financing [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ||||
Revenue from external customers | 0 | 0 | [1] | 0 | 0 | [1] | ||
Operating Earnings | ($39.80) | [2] | ($49.90) | [2] | ($123.10) | [2] | ($128.60) | [2] |
[1] | In the third quarter of 2013, pursuant to contractual rights exercised by the contract holder, 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 during the third quarter of 2013. | |||||||
[2] | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation below. | |||||||
[3] | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other 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 of $23.7 million ($35.3 million pretax) and $101.9 millionB ($154.8 million pretax) during the three and nine months ended SeptemberB 30, 2014, respectively, related to the acquisitions of Coventry and InterGlobal, and $34.6 million ($51.2 million pretax) and $140.6 million ($189.6 million pretax) during the three and nine months ended SeptemberB 30, 2013, respectively, related to the acquisition of Coventry. 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. 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 Acquisition 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 Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings.b"In the first quarter of 2014, we incurred a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax) related to the redemption of our 6.0% senior notes due 2016. b"In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffsb counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 13 beginning on page 30 for additional information on the termination of the settlement agreement.b"In the second quarter of 2013, we reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax). 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 16 beginning on page 35 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 reversed the related allowance thereby reducing second quarter 2013 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. |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Operating Earnings (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||||
Senior Notes, 6.0%, Due 2016 [Member] | Senior Notes, 6.0%, Due 2016 [Member] | |||||||||||
Segment Reconciliation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Operating Earnings | $638.60 | [1],[2] | ' | $604.30 | [1],[2] | ' | $1,970.60 | [1],[2] | $1,703.40 | [1],[2] | ' | ' |
Transaction and integration-related costs, after-tax | -23.7 | ' | -34.6 | ' | -101.9 | -140.6 | ' | ' | ||||
Business Combination, Integration Related Costs | 35.3 | ' | 51.2 | ' | 154.8 | 189.6 | ' | ' | ||||
Loss on early extinguishment of debt, net of tax | 0 | -59.7 | 0 | ' | -59.7 | 0 | ' | ' | ||||
Release of litigation-related reserve, net of tax | 0 | ' | 0 | ' | 67 | 0 | ' | ' | ||||
Reduction of reserve for anticipated future losses on discontinued products after tax | 0 | ' | 0 | ' | 0 | 55.9 | ' | ' | ||||
Reversal of allowance and gain on sale of reinsurance recoverable net of tax | 0 | ' | 0 | ' | 0 | 32.1 | ' | ' | ||||
Amortization of other acquired intangible assets, net of tax | -38.7 | ' | -42.5 | ' | -119.4 | -97.2 | ' | ' | ||||
Net realized capital gains (losses), net of tax | 18.3 | ' | -8.6 | ' | 52.2 | -8.9 | ' | ' | ||||
Net income attributable to Aetna | 594.5 | ' | 518.6 | ' | 1,808.80 | 1,544.70 | ' | ' | ||||
Loss on early extinguishment of long-term debt | 0 | 91.9 | 0 | ' | 91.9 | 0 | ' | ' | ||||
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ||||
Settlement of class action litigation, after-tax | ' | ' | ' | 78 | ' | ' | ' | ' | ||||
Litigation Settlement, Expense | ' | ' | ' | 120 | ' | ' | ' | ' | ||||
Release of litigation-related reserve, after-tax | ' | 67 | ' | ' | ' | ' | ' | ' | ||||
Release of litigation-related reserve, pre-tax | ' | 103 | ' | ' | ' | ' | ' | ' | ||||
Reduction of reserve for anticipated future losses on discontinued products after tax | 0 | ' | 0 | ' | 0 | 55.9 | ' | ' | ||||
Reversal of allowance and gain on sale of reinsurance recoverable net of tax | 0 | ' | 0 | ' | 0 | 32.1 | ' | ' | ||||
Reduction of reserve for anticipated future losses on discontinued products | 0 | ' | 0 | ' | 0 | -86 | ' | ' | ||||
Establishment of allowance on reinsurance recoverable pretax | ' | ' | ' | ' | ' | 42.2 | ' | ' | ||||
Reversal of allowance on reinsurance recoverable net of tax | ' | ' | ' | ' | ' | 27.4 | ' | ' | ||||
Establishment of allowance on reinsurance recoverable net of tax | ' | ' | ' | ' | ' | 27.4 | ' | ' | ||||
Reversal of allowance reinsurance recoverable | ' | ' | ' | ' | ' | 42.2 | ' | ' | ||||
Gain on sale of reinsurance recoverable net of tax | ' | ' | ' | ' | ' | 4.7 | ' | ' | ||||
Gain on sale of reinsurance recoverable | ' | ' | ' | ' | ' | $7.20 | ' | ' | ||||
[1] | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation below. | |||||||||||
[2] | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other 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 of $23.7 million ($35.3 million pretax) and $101.9 millionB ($154.8 million pretax) during the three and nine months ended SeptemberB 30, 2014, respectively, related to the acquisitions of Coventry and InterGlobal, and $34.6 million ($51.2 million pretax) and $140.6 million ($189.6 million pretax) during the three and nine months ended SeptemberB 30, 2013, respectively, related to the acquisition of Coventry. 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. 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 Acquisition 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 Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings.b"In the first quarter of 2014, we incurred a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax) related to the redemption of our 6.0% senior notes due 2016. b"In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffsb counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 13 beginning on page 30 for additional information on the termination of the settlement agreement.b"In the second quarter of 2013, we reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax). 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 16 beginning on page 35 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 reversed the related allowance thereby reducing second quarter 2013 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. |
Reinsurance_Details
Reinsurance (Details) (USD $) | Jan. 31, 2014 |
In Millions, unless otherwise specified | |
Reinsurance Disclosures [Abstract] | ' |
Collateralized excess of loss on resinsurance coverage | $200 |
Discontinued_Products_Details
Discontinued Products (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||
Reduction of reserve for anticipated future losses on discontinued products after tax | $0 | $0 | $0 | $55.90 | ' | |||
Reduction of reserve for anticipated future losses on discontinued products | 0 | 0 | 0 | 86 | ' | |||
Assets: | ' | ' | ' | ' | ' | |||
Investments | 24,333.50 | ' | 24,333.50 | ' | 22,998.80 | |||
Collateral received under securities loan agreements | 870.3 | ' | 870.3 | ' | 792.6 | |||
Total assets | 53,025.60 | ' | 53,025.60 | ' | 49,871.80 | |||
Liabilities: | ' | ' | ' | ' | ' | |||
Policyholders' funds | 1,194.30 | ' | 1,194.30 | ' | 1,188 | |||
Total liabilities | 38,043.20 | ' | 38,043.20 | ' | 35,793.60 | |||
Discontinued Products [Member] | ' | ' | ' | ' | ' | |||
Reduction of reserve for anticipated future losses on discontinued products | ' | ' | 0 | -86 | ' | |||
Reserve For Discontinued Products [Roll Forward] | ' | ' | ' | ' | ' | |||
Reserve, beginning of period | ' | ' | 979.5 | [1] | 978.5 | ' | ||
Operating income (loss) | ' | ' | 3.2 | -8.5 | ' | |||
Net realized capital gains | ' | ' | 25.8 | 73.7 | ' | |||
Reserve, end of period | 1,008.50 | [1] | 957.7 | 1,008.50 | [1] | 957.7 | ' | |
Assets: | ' | ' | ' | ' | ' | |||
Investments | 3,406.10 | [1] | ' | 3,406.10 | [1] | ' | 3,443.50 | [1] |
Other Assets | 112.3 | [1] | ' | 112.3 | [1] | ' | 85.2 | [1] |
Collateral received under securities loan agreements | 222.1 | [1] | ' | 222.1 | [1] | ' | 204.4 | [1] |
Current and deferred income taxes | 0 | [1] | ' | 0 | [1] | ' | 14.4 | [1] |
Receivable from continuing products | 558 | [1],[2] | ' | 558 | [1],[2] | ' | 533.1 | [1],[2] |
Total assets | 4,298.50 | [1] | ' | 4,298.50 | [1] | ' | 4,280.60 | [1] |
Liabilities: | ' | ' | ' | ' | ' | |||
Future Policy Benefits | 2,685.50 | [1] | ' | 2,685.50 | [1] | ' | 2,804.80 | [1] |
Reserve for anticipated future losses on discontinued products | 1,008.50 | [1] | 957.7 | 1,008.50 | [1] | 957.7 | ' | |
Collateral payable under securities loan agreements | 222.1 | [1] | ' | 222.1 | [1] | ' | 204.4 | [1] |
Deferred Tax Liabilities, Net | 1.8 | [1] | ' | 1.8 | [1] | ' | 0 | [1] |
Other Liabilities | 380.6 | [1],[3] | ' | 380.6 | [1],[3] | ' | 291.9 | [1],[3] |
Total liabilities | 4,298.50 | [1] | ' | 4,298.50 | [1] | ' | 4,280.60 | [1] |
Scheduled Contract Maturities, Settlements And Benefit Payments | 93 | 98 | 284 | 296 | ' | |||
Debt And Equity Securities Available For Sale [Member] | ' | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | |||
Investments | 20,938.60 | ' | 20,938.60 | ' | 19,730.40 | |||
Debt And Equity Securities Available For Sale [Member] | Discontinued Products [Member] | ' | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | |||
Investments | 2,322.40 | [1] | ' | 2,322.40 | [1] | ' | 2,372.60 | [1] |
Mortgage Loans [Member] | ' | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | |||
Investments | 1,604.10 | ' | 1,604.10 | ' | 1,549.60 | |||
Mortgage Loans [Member] | Discontinued Products [Member] | ' | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | |||
Investments | 408 | [1] | ' | 408 | [1] | ' | 407 | [1] |
Other Investments [Member] | ' | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | |||
Investments | 1,790.80 | ' | 1,790.80 | ' | 1,718.80 | |||
Other Investments [Member] | Discontinued Products [Member] | ' | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | |||
Investments | $675.70 | [1] | ' | $675.70 | [1] | ' | $663.90 | [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 Pensionsb 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. |