Document and Entity Information
Document and Entity Information Document - Jun. 30, 2015 - shares shares in Millions | Total |
Entity Information [Line Items] | |
Entity Registrant Name | AETNA INC /PA/ |
Entity Central Index Key | 1,122,304 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 348.6 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - Equity Component [Domain] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Revenue: | |||||
Health care premiums | $ 12,936.5 | $ 12,416.1 | $ 25,876.6 | $ 24,327.8 | |
Other premiums | 546 | 551.7 | 1,084 | 1,113.3 | |
Fees and other revenue | [1] | 1,509 | 1,289.5 | 2,884 | 2,538.3 |
Net investment income | 247.4 | 228.3 | 480.3 | 472.5 | |
Net realized capital gains (losses) | 2 | 23.8 | 10.1 | 52.3 | |
Total revenue | 15,240.9 | 14,509.4 | 30,335 | 28,504.2 | |
Benefits and expenses: | |||||
Health care costs | [2] | 10,496.3 | 10,314.8 | 20,736.8 | 19,891.1 |
Current and future benefits | 539.2 | 525.6 | 1,067.3 | 1,104.3 | |
Operating expenses: | |||||
Selling expenses | 405.7 | 413 | 820.6 | 815.8 | |
General and administrative expenses | [3] | 2,396.1 | 2,188.2 | 4,797.9 | 4,235.8 |
Total operating expenses | 2,801.8 | 2,601.2 | 5,618.5 | 5,051.6 | |
Interest expense | 78.3 | 81.3 | 157.3 | 166.9 | |
Amortization of other acquired intangible assets | 63.7 | 61.9 | 126.9 | 124.1 | |
Loss on early extinguishment of long-term debt | 0 | 0 | 0 | 91.9 | |
Total benefits and expenses | 13,979.3 | 13,584.8 | 27,706.8 | 26,429.9 | |
Income before income taxes | 1,261.6 | 924.6 | 2,628.2 | 2,074.3 | |
Income taxes: | |||||
Current | 515.7 | 350.5 | 1,162.7 | 769 | |
Deferred | 11.3 | 26.9 | (45.4) | 88.7 | |
Total income taxes | 527 | 377.4 | 1,117.3 | 857.7 | |
Net Income including non-controlling interests | 734.6 | 547.2 | 1,510.9 | 1,216.6 | |
Less: Net income (loss) attributable to non-controlling interests | 2.8 | (1.6) | 1.6 | 2.3 | |
Net income attributable to Aetna | $ 731.8 | $ 548.8 | $ 1,509.3 | $ 1,214.3 | |
Earnings per common share: | |||||
Basic | $ 2.10 | $ 1.54 | $ 4.32 | $ 3.38 | |
Diluted | $ 2.08 | $ 1.52 | $ 4.28 | $ 3.35 | |
Administrative Services Contract Member Co Payments And Plan Sponsor Reimbursements | $ 28.5 | $ 26.4 | $ 52.6 | $ 48.2 | |
Pharmaceutical And Processing Costs | 327.9 | 315.5 | 627.2 | 590.9 | |
Insured Member Co Payments | $ 30.2 | $ 27.3 | $ 63.6 | $ 57.9 | |
[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 $28.5 million and $52.6 million (net of pharmaceutical and processing costs of $327.9 million and $627.2 million) for the three and six months ended June 30, 2015, respectively, and $26.4 million and $48.2 million (net of pharmaceutical and processing costs of $315.5 million and $590.9 million) for the three and six months ended June 30, 2014, respectively. | ||||
[2] | Health care costs have been reduced by Insured member co-payments related to our mail order and specialty pharmacy operations of $30.2 million and $63.6 million for the three and six months ended June 30, 2015, respectively, and $27.3 million and $57.9 million for the three and six months ended June 30, 2014, respectively. | ||||
[3] | The three and six months ended June 30, 2015 include $30.7 million and $76.3 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry Health Care, Inc. (“Coventry”), the InterGlobal group (“InterGlobal”) and bSwift LLC (“bswift”). The three and six months ended June 30, 2014 include $55.8 million and $119.5 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Net Income including non-controlling interests | $ 734.6 | $ 547.2 | $ 1,510.9 | $ 1,216.6 | |
Other comprehensive (loss) income | (240) | 130.3 | (161.8) | 256 | |
Comprehensive Income including non-controlling interests | 494.6 | 677.5 | 1,349.1 | 1,472.6 | |
Comprehensive income (loss) attributable to non-controlling interests | 2.8 | (1.6) | 1.6 | 2.3 | |
Comprehensive Income attributable to Aetna | 491.8 | 679.1 | 1,347.5 | 1,470.3 | |
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | |||||
Net unrealized gains (losses) | [1] | (1.8) | 2.2 | (4) | 3.3 |
Less: reclassification of gains (losses) to earnings | [1] | 4.8 | 1.6 | 6.4 | 2 |
Other comprehensive (loss) income | [1] | (6.6) | 0.6 | (10.4) | 1.3 |
Other Securities [Member] | |||||
Net unrealized gains (losses) | (279.9) | 138.8 | (202) | 276 | |
Less: reclassification of gains (losses) to earnings | (18.4) | 4.5 | (25.6) | 1.2 | |
Other comprehensive (loss) income | (261.5) | 134.3 | (176.4) | 274.8 | |
Foreign Currency and Derivative Gain (Loss) [Member] | |||||
Net unrealized gains (losses) | 17.4 | (12.5) | 3.5 | (25) | |
Less: Foreign currency and derivatives reclassification of losses to earnings | (0.9) | (0.9) | (1.9) | 9.2 | |
Other comprehensive (loss) income | 18.3 | (11.6) | 5.4 | (34.2) | |
Pension and OPEB Plan [Member] | |||||
Less: amortization of net actuarial losses | (10.4) | (7.7) | (20.9) | (15.4) | |
Less: Amortization of prior service cost | 0.6 | 0.7 | 1.3 | 1.3 | |
Other comprehensive (loss) income | $ 9.8 | $ 7 | $ 19.6 | $ 14.1 | |
[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 Compr
Consolidated Statement of Comprehensive Income (Paranthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | [1] | $ (2.7) | $ 3.4 | $ (6.1) | $ 5.1 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | [1] | 7.4 | 2.5 | 9.8 | 3.1 |
Other Securities [Member] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | (430.7) | 213.6 | (310.8) | 424.6 | |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | (28.4) | 6.9 | (39.4) | 1.9 | |
Foreign Currency and Derivative Gain (Loss) [Member] | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 26.8 | (19.3) | 5.4 | (38.5) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, before Tax | (1.4) | (1.4) | (2.9) | 14.2 | |
Pension and OPEB Plan [Member] | |||||
Amortization of net actuarial losses, before tax | (16) | (11.9) | (32.1) | (23.8) | |
Amortization of prior service credit, before tax | $ 1 | $ 1 | $ 2 | $ 2 | |
[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 ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,125.8 | $ 1,420.4 |
Investments | 2,545.8 | 2,595.2 |
Premiums receivable, net | 2,513.6 | 1,623 |
Other receivables, net | 2,745.2 | 2,065.9 |
Accrued investment income | 226.5 | 223.9 |
Collateral received under securities loan agreements | 543.7 | 826.9 |
Income taxes receivable | 90 | 372.7 |
Deferred income taxes | 458.4 | 443 |
Other current assets | 2,733.1 | 2,193 |
Total current assets | 12,982.1 | 11,764 |
Long-term investments | 22,180.1 | 22,193.9 |
Reinsurance recoverables | 840.3 | 751.4 |
Goodwill | 10,641.3 | 10,613.2 |
Other acquired intangible assets, net | 1,816.7 | 1,948.3 |
Property and equipment, net | 653.2 | 669.8 |
Other long-term assets | 1,236.1 | 1,130 |
Separate Account Assets | 4,291.3 | 4,331.5 |
Total assets | 54,641.1 | 53,402.1 |
Current liabilities: | ||
Health care costs payable | 5,978.6 | 5,621.1 |
Future policy benefits | 692.5 | 705.9 |
Unpaid claims | 740.4 | 745.3 |
Unearned premiums | 548.8 | 519.5 |
Policyholders' funds | 2,128.7 | 1,984.5 |
Collateral payable under securities loan and repurchase agreements | 543.7 | 1,028.6 |
Short-term debt | 0 | 500 |
Current portion of long-term debt | 0 | 229.3 |
Accrued expenses and other current liabilities | 5,168.8 | 4,022.3 |
Total current liabilities | 15,801.5 | 15,356.5 |
Future policy benefits | 6,387.7 | 6,427.4 |
Unpaid claims | 1,657.8 | 1,650.6 |
Policyholders' funds | 1,114.4 | 1,163.2 |
Long-term debt, less current portion | 7,840.1 | 7,852 |
Deferred income taxes | 704.9 | 867.5 |
Other long-term liabilities | 1,375.6 | 1,201.6 |
Separate Accounts liabilities | 4,291.3 | 4,331.5 |
Total liabilities | 39,173.3 | $ 38,850.3 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity: | ||
Common stock ($.01 par value; 2.5 billion shares authorized and 348.6 million shares issued and outstanding in 2015; 2.6 billion shares authorized and 349.8 million shares issued and outstanding in 2014) and additional paid-in capital | 4,589.1 | $ 4,542.2 |
Retained earnings | 12,090.6 | 11,051.7 |
Accumulated other comprehensive loss | (1,273.1) | (1,111.3) |
Total Aetna shareholders' equity | 15,406.6 | 14,482.6 |
Non-controlling Interests | 61.2 | 69.2 |
Total equity | 15,467.8 | 14,551.8 |
Total liabilities and equity | $ 54,641.1 | $ 53,402.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Paranthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 2,500,000,000 | 2,600,000,000 |
Common Stock, Shares, Issued | 348,600,000 | 349,800,000 |
Common Stock, Shares, Outstanding | 348,600,000 | 349,800,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | 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] |
Stockholders' Equity Attributable to Noncontrolling Interest at beginning of period at Dec. 31, 2013 | $ 52.7 | ||||||
Total equity at beginning of period at Dec. 31, 2013 | $ 14,078.2 | ||||||
Balance at beginning of period at Dec. 31, 2013 | $ 4,382.2 | $ 10,555.4 | $ (912.1) | $ 14,025.5 | |||
Balance at beginning of period (in shares) at Dec. 31, 2013 | 362,200,000 | ||||||
Comprehensive income: | |||||||
Net income attributable to Aetna | 1,214.3 | $ 0 | 0 | 1,214.3 | 0 | 1,214.3 | |
Net income (loss) attributable to non-controlling interest | 2.3 | 2.3 | |||||
Net Income including non-controlling interests | 1,216.6 | ||||||
Other increases (decreases) in noncontrolling interests | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
Other comprehensive (loss) income | 256 | $ 0 | 0 | 0 | 256 | 256 | 0 |
Common shares issued for benefit plans, including tax benefits, net of employee tax withholdings | 80.4 | 80.4 | 0 | 0 | 80.4 | 0 | |
Common shares issued for benefit plans, including tax benefits, net of employee tax withholdings (in shares) | 2,200,000 | ||||||
Repurchases of common shares | (720.1) | (0.1) | (720) | 0 | (720.1) | 0 | |
Repurchases of common shares (in shares) | (9,800,000) | ||||||
Dividends declared | (160.3) | $ 0 | 0 | (160.3) | 0 | (160.3) | 0 |
Balance at end of period at Jun. 30, 2014 | 4,462.5 | 10,889.4 | (656.1) | 14,695.8 | |||
Balance at end of period (in shares) at Jun. 30, 2014 | 354,600,000 | ||||||
Total equity at end of period at Jun. 30, 2014 | 14,752.8 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest at end of period at Jun. 30, 2014 | 57 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest at beginning of period at Dec. 31, 2014 | 69.2 | 69.2 | |||||
Total equity at beginning of period at Dec. 31, 2014 | 14,551.8 | ||||||
Balance at beginning of period at Dec. 31, 2014 | $ 14,482.6 | 4,542.2 | 11,051.7 | (1,111.3) | 14,482.6 | ||
Balance at beginning of period (in shares) at Dec. 31, 2014 | 349,800,000 | 349,800,000 | |||||
Comprehensive income: | |||||||
Net income attributable to Aetna | $ 1,509.3 | $ 0 | 0 | 1,509.3 | 0 | 1,509.3 | |
Net income (loss) attributable to non-controlling interest | 1.6 | 1.6 | |||||
Net Income including non-controlling interests | 1,510.9 | ||||||
Other increases (decreases) in noncontrolling interests | (9.6) | 0 | 0 | 0 | 0 | 0 | (9.6) |
Other comprehensive (loss) income | (161.8) | $ 0 | 0 | 0 | (161.8) | (161.8) | 0 |
Common shares issued for benefit plans, including tax benefits, net of employee tax withholdings | 47 | 47 | 0 | 0 | 47 | 0 | |
Common shares issued for benefit plans, including tax benefits, net of employee tax withholdings (in shares) | 1,800,000 | ||||||
Repurchases of common shares | $ (296.3) | (0.1) | (296.2) | 0 | (296.3) | 0 | |
Repurchases of common shares (in shares) | (3,000,000) | (3,000,000) | |||||
Dividends declared | $ (174.2) | $ 0 | 0 | (174.2) | 0 | (174.2) | 0 |
Balance at end of period at Jun. 30, 2015 | $ 15,406.6 | $ 4,589.1 | $ 12,090.6 | $ (1,273.1) | $ 15,406.6 | ||
Balance at end of period (in shares) at Jun. 30, 2015 | 348,600,000 | 348,600,000 | |||||
Total equity at end of period at Jun. 30, 2015 | $ 15,467.8 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest at end of period at Jun. 30, 2015 | $ 61.2 | $ 61.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net Income including non-controlling interests | $ 1,510.9 | $ 1,216.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized capital (gains) losses | (10.1) | (52.3) |
Depreciation and amortization | 330 | 311.2 |
Debt fair value amortization | (15.3) | (30.3) |
Equity in earnings of affiliates, net | (35.7) | (20.4) |
Stock-based compensation expense | 96.7 | 80.8 |
Amortization of net investment premium | 42.8 | 35.8 |
Loss on early extinguishment of long-term debt | 0 | 91.9 |
Changes in assets and liabilities: | ||
Accrued investment income | (2.6) | (6.3) |
Premiums due and other receivables | (1,588.7) | (864.6) |
Income taxes | 230 | 254.7 |
Other assets and other liabilities | 782.9 | 365.7 |
Health care and insurance liabilities | 389.3 | 706.8 |
Other, net | (1.1) | 1.7 |
Net cash provided by operating activities | 1,729.1 | 2,091.3 |
Cash flows used for investing activities: | ||
Proceeds from sales and maturities of investments | 5,872 | 3,865.6 |
Cost of investments | (6,193.8) | (4,330.6) |
Additions to property, equipment and software | (187.8) | (189.3) |
Cash used for acquisitions, net of cash acquired | (20.6) | (70.7) |
Net cash provided by (used for) investing activities | (530.2) | (725) |
Cash flows used for financing activities: | ||
Repayment of long-term debt | (228.8) | (839.7) |
Issuance of long-term debt | 0 | 741.9 |
Net (repayment) issuance of short-term debt | (500) | 0 |
Deposits and interest credited to investment contracts | 2.7 | 2.3 |
Withdrawals from investment contracts | (38.2) | (1.9) |
Common Shares Issued Under Benefit Plans | (95.2) | (25.7) |
Stock-based compensation tax benefits | 38.5 | 20.2 |
(Settlements) proceeds from repurchase agreements | (201.7) | 0 |
Common shares repurchased | (296.3) | (720.1) |
Dividends paid to shareholders | (174.3) | (162) |
Collateral on interest rate swaps | 9.5 | (36.1) |
(Distributions) contributions, non-controlling interests | (9.7) | 2.6 |
Net cash used for financing activities | (1,493.5) | (1,018.5) |
Net increase (decrease) in cash and cash equivalents | (294.6) | 347.8 |
Cash and cash equivalents, beginning of period | 1,420.4 | 1,412.3 |
Cash and cash equivalents, end of period | 1,125.8 | 1,760.1 |
Supplemental cash flow information: | ||
Interest paid | 173.2 | 184.9 |
Income taxes paid | $ 848 | $ 582.8 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
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, 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 17 beginning on page 36 for additional information). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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 2014 Annual Report on Form 10-K (our “2014 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 2014 Annual Report, unless the information contained in those disclosures materially changed and is required by GAAP. We evaluated subsequent events that occurred after June 30, 2015 through the date the financial statements were issued and determined there were no other items to disclose other than as disclosed in Notes 3 and 11 beginning on pages 9 and 26 , respectively. Reclassifications Certain reclassifications were made to 2014 financial information to conform with the 2015 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. New Accounting Standards Accounting for Investments in Qualified Affordable Housing Projects Effective January 1, 2015, we were 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. We did not make the accounting policy election to adopt this new accounting guidance. Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Effective January 1, 2015, we adopted 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. We had no discontinued operations during the three or six months ended June 30, 2015 . Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures Effective January 1, 2015, we adopted 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 adoption of this new guidance had no impact on our financial position or operating results. The guidance also required additional disclosures about repurchase agreements and other similar transactions accounted for as secured borrowings, which we adopted effective April 1, 2015. Refer to Note 9 beginning on page 18 for additional information on these disclosures. Future Application of Accounting Standards 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. 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 of 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 of 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 will not have a material impact on our financial position or operating results. Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity Effective January 1, 2016, we will adopt amended accounting guidance related to the approach used in determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or equity. Early adoption of this new guidance is permitted. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Effective January 1, 2016, we will adopt amended accounting guidance related to the presentation of extraordinary items. The amendment eliminates the concept of extraordinary items which represent events that are both unusual and infrequent. Presentation and disclosure of items that are unusual or infrequent will be retained, and will be expanded to include items that are both unusual and infrequent. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. Amendments to the Consolidation Analysis Effective January 1, 2016, we will adopt amended accounting guidance related to the evaluation of consolidation for certain legal entities. The amendment changes how a reporting entity assesses consolidation, including whether an entity is considered a variable interest entity, determination of the primary beneficiary and how related parties are considered in the analysis. Early adoption of this new guidance is permitted. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. Simplifying the Presentation of Debt Issuance Costs Effective January 1, 2016, we will adopt amended accounting guidance related to the financial statement presentation of debt issuance costs. The amendment requires debt issuance costs to be presented as a direct deduction from the carrying amount of our debt liability, consistent with the approach used for debt discounts. Amortization of debt issuance costs will also be reported in the Statements of Income as interest expense, as opposed to general and administrative expenses. Early adoption of this new guidance is permitted. This new guidance must be applied on a full retrospective basis, with all prior periods restated for the new presentation. The adoption of this new guidance will require certain reclassifications in our financial statements and is not expected to have a material impact on our financial position or operating results. Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Effective January 1, 2016, we will adopt amended accounting guidance related to the evaluation of fees paid by a customer in a cloud computing arrangement. The amendment provides additional guidance that aids in determining whether a cloud computing arrangement contains a software license. Arrangements that do not contain a software license must be accounted for as a service contract. If a software license is included in the cloud computing arrangement, the license element must be accounted for consistent with the acquisition of a software license. Early adoption of this new guidance is permitted. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) Effective January 1, 2016, we will adopt amended accounting guidance related to the presentation of investments in certain entities that calculate net asset value per share. The amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Early adoption of this new guidance is permitted. This new guidance is applicable to certain of our investments that reside in our separate accounts and employee benefit plans. The adoption of this new guidance will not have a material impact on our financial position or operating results. Disclosures about Short-Duration Insurance Contracts Effective December 31, 2016, we will adopt amended accounting guidance related to the disclosure of short-duration insurance contracts. The amendment requires insurance companies that issue short-duration contracts to include additional disclosures about those insurance liabilities, including disaggregation of certain disclosures, as appropriate. Early adoption of this new guidance is permitted. The adoption of this new guidance will not have a material impact on our financial position or operating results, however, the new guidance will require additional disclosure for our short-duration insurance liabilities that reside in our Health Care and Group Insurance segments. |
Proposed Acquisition
Proposed Acquisition | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | 3. Proposed Acquisition On July 2, 2015, we entered into a definitive agreement (as it may be amended, the "Merger Agreement") to acquire Humana Inc. ("Humana") in a transaction valued at approximately $37 billion , based on the closing price of Aetna common shares on July 2, 2015, including the assumption of Humana debt and Humana cash and cash equivalents. Under the terms of the Merger Agreement, Humana stockholders will receive $125.00 in cash and 0.8375 Aetna common shares for each Humana share. The transaction is subject to approval by our shareholders, Humana stockholders, and other customary closing conditions, including expiration of the federal Hart-Scott-Rodino Antitrust Improvements Act of 1976 waiting period and approvals of state departments of insurance and other regulators, and therefore has not been reflected in these financial statements. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions, except per common share data) 2015 2014 2015 2014 Net income attributable to Aetna $ 731.8 $ 548.8 $ 1,509.3 $ 1,214.3 Weighted average shares used to compute basic EPS 349.0 356.8 349.2 359.2 Dilutive effect of outstanding stock-based compensation awards 3.2 3.5 3.3 3.4 Weighted average shares used to compute diluted EPS 352.2 360.3 352.5 362.6 Basic EPS $ 2.10 $ 1.54 $ 4.32 $ 3.38 Diluted EPS $ 2.08 $ 1.52 $ 4.28 $ 3.35 The stock-based compensation awards excluded from the calculation of diluted EPS for the three and six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Stock appreciation rights (“SARs”) (1) — — .9 .7 Other stock-based compensation awards (2) .6 1.1 .9 1.3 (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) Performance stock units ("PSUs"), certain market stock units ("MSUs") with performance conditions, and performance stock appreciation rights ("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 six months ended June 30, 2014 . We no longer have any stock options outstanding as of June 30, 2015 . |
Operating Expenses
Operating Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Operating Expenses [Abstract] | |
Operating Expenses | 5. Operating Expenses For the three and six months ended June 30, 2015 and 2014 , 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 Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Selling expenses $ 405.7 $ 413.0 $ 820.6 $ 815.8 General and administrative expenses: Salaries and related benefits 1,216.4 1,118.0 2,423.0 2,237.5 Other general and administrative expenses (1) (2) 1,179.7 1,070.2 2,374.9 1,998.3 Total general and administrative expenses (3) 2,396.1 2,188.2 4,797.9 4,235.8 Total operating expenses $ 2,801.8 $ 2,601.2 $ 5,618.5 $ 5,051.6 (1) The three and six months ended June 30, 2015 include estimated fees mandated by the ACA comprised primarily of the health insurer fee of $213.8 million and $432.5 million , respectively, and our estimated contribution to the funding of the reinsurance program of $52.2 million and $105.8 million , respectively. The three and six months ended June 30, 2014 include estimated fees mandated by the ACA comprised primarily of the health insurer fee of $147.7 million and $ 302.5 million , respectively, and our estimated contribution to the funding of the reinsurance program of $86.2 million and $ 171.1 million , respectively. (2) In the three months ended December 31, 2012, we recorded a charge of $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 three months ended March 31, 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 other general and administrative expenses by $103.0 million pretax in the three months ended March 31, 2014. Refer to Note 14 beginning on page 31 for additional information on the termination of the settlement agreement. (3) The three and six months ended June 30, 2015 include $30.7 million and $76.3 million , respectively, of transaction and integration-related costs related to the acquisitions of Coventry Health Care, Inc. (“Coventry”), the InterGlobal group (“InterGlobal”) and bSwift LLC (“bswift”). The three and six months ended June 30, 2014 include $55.8 million and $119.5 million , respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. Refer to the reconciliation of operating earnings to net income attributable to Aetna in Note 15 beginning on page 35 for additional information. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments | 6. Investments Total investments at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (Millions) Current Long-term Total Current Long-term Total Debt and equity securities available for sale $ 2,412.1 $ 19,018.3 $ 21,430.4 $ 2,463.8 $ 18,977.9 $ 21,441.7 Mortgage loans 130.2 1,377.2 1,507.4 124.2 1,438.0 1,562.2 Other investments 3.5 1,784.6 1,788.1 7.2 1,778.0 1,785.2 Total investments $ 2,545.8 $ 22,180.1 $ 24,725.9 $ 2,595.2 $ 22,193.9 $ 24,789.1 At June 30, 2015 , we did not have any repurchase agreements outstanding. At December 31, 2014 , approximately $202 million of investments were pledged as collateral under repurchase agreements. At June 30, 2015 and December 31, 2014 , approximately $525 million and $798 million , respectively, of investments were pledged under securities loan agreements. Debt and Equity Securities Debt and equity securities available for sale at June 30, 2015 and December 31, 2014 were as follows: (Millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Debt securities: U.S. government securities $ 1,669.4 $ 76.2 $ (.6 ) $ 1,745.0 States, municipalities and political subdivisions 4,625.3 197.1 (30.0 ) 4,792.4 U.S. corporate securities 8,040.2 429.2 (86.4 ) 8,383.0 Foreign securities 3,235.6 213.6 (32.1 ) 3,417.1 Residential mortgage-backed securities 840.0 21.9 (5.4 ) 856.5 Commercial mortgage-backed securities 1,302.6 37.9 (3.5 ) (1) 1,337.0 Other asset-backed securities 808.9 6.7 (3.7 ) (1) 811.9 Redeemable preferred securities 39.0 10.3 (.5 ) 48.8 Total debt securities 20,561.0 992.9 (162.2 ) 21,391.7 Equity securities 45.7 2.0 (9.0 ) 38.7 Total debt and equity securities (2) $ 20,606.7 $ 994.9 $ (171.2 ) $ 21,430.4 December 31, 2014 Debt securities: U.S. government securities $ 1,301.2 $ 96.3 $ (.6 ) $ 1,396.9 States, municipalities and political subdivisions 4,540.0 277.2 (7.8 ) 4,809.4 U.S. corporate securities 8,033.2 606.8 (33.6 ) 8,606.4 Foreign securities 3,343.6 267.0 (18.3 ) 3,592.3 Residential mortgage-backed securities 902.7 28.9 (3.9 ) 927.7 Commercial mortgage-backed securities 1,324.6 52.8 (1.6 ) (1) 1,375.8 Other asset-backed securities 644.7 5.8 (6.5 ) (1) 644.0 Redeemable preferred securities 56.8 12.5 — 69.3 Total debt securities 20,146.8 1,347.3 (72.3 ) 21,421.8 Equity securities 23.3 .4 (3.8 ) 19.9 Total debt and equity securities (2) $ 20,170.1 $ 1,347.7 $ (76.1 ) $ 21,441.7 (1) At June 30, 2015 and December 31, 2014 , we held securities for which we previously recognized $15.6 million and $18.6 million , respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at June 30, 2015 and December 31, 2014 of $2.8 million and $3.6 million , respectively. (2) Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At June 30, 2015 , debt and equity securities with a fair value of approximately $3.5 billion , gross unrealized capital gains of $273.3 million and gross unrealized capital losses of $52.5 million and, at December 31, 2014 , debt and equity securities with a fair value of approximately $3.6 billion , gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 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 June 30, 2015 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 $ 1,075.0 One year through five years 6,015.4 After five years through ten years 5,842.2 Greater than ten years 5,453.7 Residential mortgage-backed securities 856.5 Commercial mortgage-backed securities 1,337.0 Other asset-backed securities 811.9 Total $ 21,391.7 Mortgage-Backed and Other Asset-Backed Securities All of our residential mortgage-backed securities at June 30, 2015 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 June 30, 2015 , our residential mortgage-backed securities had an average credit quality rating of AAA and a weighted average duration of 4.1 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 loss severity and probability of default. At June 30, 2015 , these securities had an average credit quality rating of AA and a weighted average duration of 2.1 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 June 30, 2015 , these securities had an average credit quality rating of A+ and a weighted average duration of 1.2 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 June 30, 2015 and December 31, 2014 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 Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2015 Debt securities: U.S. government securities $ 379.8 $ .2 $ 12.8 $ .4 $ 392.6 $ .6 States, municipalities and political subdivisions 1,551.8 26.1 107.1 3.9 1,658.9 30.0 U.S. corporate securities 2,501.9 76.4 140.7 10.0 2,642.6 86.4 Foreign securities 849.6 27.7 62.3 4.4 911.9 32.1 Residential mortgage-backed securities 121.7 1.8 101.2 3.6 222.9 5.4 Commercial mortgage-backed securities 232.6 3.2 28.5 .3 261.1 3.5 Other asset-backed securities 282.9 3.3 44.0 .4 326.9 3.7 Redeemable preferred securities 5.4 .5 — — 5.4 .5 Total debt securities 5,925.7 139.2 496.6 23.0 6,422.3 162.2 Equity securities 21.3 5.4 1.6 3.6 22.9 9.0 Total debt and equity securities (1) $ 5,947.0 $ 144.6 $ 498.2 $ 26.6 $ 6,445.2 $ 171.2 December 31, 2014 Debt securities: U.S. government securities $ 20.6 $ .1 $ 19.8 $ .5 $ 40.4 $ .6 States, municipalities and political subdivisions 457.4 2.2 347.4 5.6 804.8 7.8 U.S. corporate securities 1,074.1 19.9 515.2 13.7 1,589.3 33.6 Foreign securities 540.0 12.8 148.0 5.5 688.0 18.3 Residential mortgage-backed securities 3.9 .1 166.9 3.8 170.8 3.9 Commercial mortgage-backed securities 181.5 .7 69.0 .9 250.5 1.6 Other asset-backed securities 373.1 6.1 21.3 .4 394.4 6.5 Redeemable preferred securities 3.0 — — — 3.0 — Total debt securities 2,653.6 41.9 1,287.6 30.4 3,941.2 72.3 Equity securities 8.0 — 1.4 3.8 9.4 3.8 Total debt and equity securities (1) $ 2,661.6 $ 41.9 $ 1,289.0 $ 34.2 $ 3,950.6 $ 76.1 (1) At June 30, 2015 and December 31, 2014 , debt and equity securities in an unrealized capital loss position of $52.5 million and $16.7 million , respectively, and with related fair value of $1.0 billion and $402.7 million , respectively, related to experience-rated and discontinued products. We reviewed the securities in the tables above and concluded that these are performing assets generating investment income to support the needs of our business. In performing this review, we considered factors such as the quality of the investment security based on research performed by our internal credit analysts and external rating agencies and the prospects of realizing the carrying value of the security based on the investment’s current prospects for recovery. At June 30, 2015 , 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 amortized cost basis. The maturity dates for debt securities in an unrealized capital loss position at June 30, 2015 were as follows: Supporting discontinued and experience-rated products Supporting remaining products Total (Millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Due to mature: Less than one year $ — $ — $ 69.1 $ .2 $ 69.1 $ .2 One year through five years 48.0 .5 1,304.9 8.8 1,352.9 9.3 After five years through ten years 434.1 10.3 1,965.1 39.1 2,399.2 49.4 Greater than ten years 485.1 33.7 1,305.1 57.0 1,790.2 90.7 Residential mortgage-backed securities — — 222.9 5.4 222.9 5.4 Commercial mortgage-backed securities 49.2 1.4 211.9 2.1 261.1 3.5 Other asset-backed securities — — 326.9 3.7 326.9 3.7 Total $ 1,016.4 $ 45.9 $ 5,405.9 $ 116.3 $ 6,422.3 $ 162.2 Net realized capital gains (losses) for the three and six months ended June 30, 2015 and 2014 , excluding amounts related to experience-rated contract holders and discontinued products, were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 OTTI losses on debt securities recognized in earnings $ (7.6 ) $ (.1 ) $ (10.0 ) $ (.3 ) Net realized capital gains, excluding OTTI losses on debt securities 9.6 23.9 20.1 52.6 Net realized capital gains $ 2.0 $ 23.8 $ 10.1 $ 52.3 The net realized capital gains for the three and six months ended June 30, 2015 were primarily attributable to gains from the sale of debt securities partially offset by yield-related OTTI on debt securities. The net realized capital gains for the three and six months ended June 30, 2014 were primarily attributable to gains from the sales of debt and equity securities. The net realized capital gains for the six months ended June 30, 2014 were also attributable to the recognition of a gain on the termination of interest rate swaps during the first quarter of 2014. We had no individually material realized capital losses on debt or equity securities that impacted our operating results during three or six months ended June 30, 2015 or 2014 . 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 six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Proceeds on sales $ 1,545.3 $ 930.9 $ 2,491.2 $ 2,023.7 Gross realized capital gains 20.7 19.9 45.6 44.5 Gross realized capital losses 13.6 9.0 22.4 22.0 Mortgage Loans Our mortgage loans are collateralized by commercial real estate. During the three and six months ended June 30, 2015 and 2014 we had the following activity in our mortgage loan portfolio: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 New mortgage loans $ 24.4 $ 107.0 $ 37.1 $ 140.9 Mortgage loans fully repaid 19.5 36.8 59.0 56.6 Mortgage loans foreclosed — — 9.0 — At June 30, 2015 and December 31, 2014 , we had no material problem, restructured or potential problem mortgage loans. We also had no material impairment reserves on these loans at June 30, 2015 or December 31, 2014 . 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 Category 7 represents loans where collections are potentially at risk and may be reported as problem, restructured or potential problem loans. 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. Categories 5 and 6 represent 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 June 30, 2015 and December 31, 2014 , our mortgage loans were given the following credit quality indicators: (In Millions, except credit ratings indicator) June 30, December 31, 1 $ 57.6 $ 59.7 2 to 4 1,426.9 1,443.4 5 and 6 22.9 31.2 7 — 27.9 Total $ 1,507.4 $ 1,562.2 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 June 30, 2015 and December 31, 2014 of approximately $211 million and $209 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 $6.1 billion and $5.7 billion at June 30, 2015 and December 31, 2014 , respectively. The hedge fund partnership had total assets of approximately $7.0 billion and $7.1 billion at June 30, 2015 and December 31, 2014 , respectively. Non-controlling (Minority) Interests At June 30, 2015 and December 31, 2014 , continuing business non-controlling interests were approximately $61 million and $69 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 $2.8 million and $1.6 million for the three and six months ended June 30, 2015 , respectively. Net loss attributable to non-controlling interests was $1.6 million for the three months ended June 30, 2014, and net income attributable to non-controlling interests was $2.3 million for the six months ended June 30, 2014 . 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 six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Debt securities $ 201.3 $ 198.2 $ 397.7 $ 396.3 Mortgage loans 21.7 34.1 43.6 58.0 Other investments 38.6 5.3 62.5 35.4 Gross investment income 261.6 237.6 503.8 489.7 Investment expenses (14.2 ) (9.3 ) (23.5 ) (17.2 ) Net investment income (1) $ 247.4 $ 228.3 $ 480.3 $ 472.5 (1) Net investment income includes $74.8 million and $141.4 million for the three and six months ended June 30, 2015 , respectively, and $63.5 million and $143.9 million for the three and six months ended June 30, 2014 , respectively, related to investments supporting our experience-rated and discontinued products. |
Health Care Reform
Health Care Reform | 6 Months Ended |
Jun. 30, 2015 | |
Health Care Reform [Abstract] | |
Health Care Reform Programs | 7. Health Care Reform’s Reinsurance, Risk Adjustment and Risk Corridor (the “3Rs”) We are participating in certain public health insurance exchanges established pursuant to Health Care Reform (“Public Exchanges”). 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 a portion of the health care costs (“Cost Sharing Subsidy”) for low-income individual Public Exchange members. In addition, HHS administers certain risk management programs. The net receivable (payable) related to the 3Rs risk management programs at June 30, 2015 and December 31, 2014 were as follows: As of June 30, 2015 As of December 31, 2014 (Millions) Reinsurance Risk Adjustment Risk Corridor Reinsurance Risk Adjustment Risk Corridor Current $ 359.2 $ (335.6 ) $ (6.2 ) $ 337.6 $ (230.0 ) $ (9.6 ) Long-term 98.1 (344.2 ) — — — — Total net receivable (payable) $ 457.3 $ (679.8 ) $ (6.2 ) $ 337.6 $ (230.0 ) $ (9.6 ) At June 30, 2015 and December 31, 2014, we did not record any Health Care Reform risk corridor receivables because payments from HHS under this program are uncertain. We expect to perform an annual final reconciliation and settlement with HHS of the Cost Sharing Subsidy and 3Rs in each subsequent year. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive (Loss) Income | 8. Other Comprehensive (Loss) Income Shareholders’ equity included the following activity in accumulated other comprehensive loss for the six months ended June 30, 2015 and 2014 : Net Unrealized Gains (Losses) Pension and OPEB Plans Total Securities Foreign (Millions) Previously Impaired (1) All Other Unrecognized Net Actuarial Losses Unrecognized Prior Service Credit Six months ended June 30, 2015 Balance at December 31, 2014 $ 34.9 $ 568.0 $ (60.9 ) $ (1,670.9 ) $ 17.6 $ (1,111.3 ) Other comprehensive (loss) income before reclassifications (4.0 ) (202.0 ) 3.5 — — (202.5 ) Amounts reclassified from accumulated other comprehensive income (6.4 ) (2 ) 25.6 (2 ) 1.9 (3 ) 20.9 (4 ) (1.3 ) (4 ) 40.7 Other comprehensive (loss) income (10.4 ) (176.4 ) 5.4 20.9 (1.3 ) (161.8 ) Balance at June 30, 2015 $ 24.5 $ 391.6 $ (55.5 ) $ (1,650.0 ) $ 16.3 $ (1,273.1 ) Six months ended June 30, 2014 Balance at December 31, 2013 $ 34.2 $ 326.8 $ .4 $ (1,293.8 ) $ 20.3 $ (912.1 ) Other comprehensive income (loss) before reclassifications 3.3 276.0 (25.0 ) — — 254.3 Amounts reclassified from accumulated other comprehensive income (2.0 ) (2 ) (1.2 ) (2 ) (9.2 ) (3 ) 15.4 (4 ) (1.3 ) (4 ) 1.7 Other comprehensive income (loss) 1.3 274.8 (34.2 ) 15.4 (1.3 ) 256.0 Balance at June 30, 2014 $ 35.5 $ 601.6 $ (33.8 ) $ (1,278.4 ) $ 19.0 $ (656.1 ) (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 six months ended June 30, 2015 or 2014 . Refer to Note 11 of Condensed Notes to Consolidated Financial Statements beginning on page 26 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 10 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 | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 9. Financial Instruments The preparation of our consolidated financial statements in accordance with GAAP requires certain of our assets and liabilities to be reflected at their fair value, and others on another basis, such as an adjusted historical cost basis. In this note, we provide details on the fair value of financial assets and liabilities and how we determine those fair values. We present this information for those financial instruments that are measured at fair value for which the change in fair value impacts net income 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 in 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 in Level 2. If quoted market prices are not available, we determine fair value using broker quotes or an internal analysis of each investment’s financial performance and cash flow projections. Thus, financial assets and liabilities may be classified in Level 3 even though there may be some significant inputs that may be observable. The following is a description of the valuation methodologies used for our financial assets and liabilities that are measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. Debt Securities – Where quoted prices are available in an active market, our debt securities are classified in Level 1 of the fair value hierarchy. Our Level 1 debt securities are comprised primarily of U.S. Treasury securities. 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 June 30, 2015 or December 31, 2014 . 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 June 30, 2015 or December 31, 2014 . The total fair value of our broker quoted debt securities was approximately $105 million at June 30, 2015 and $126 million at December 31, 2014 . 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 in 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 in Level 3 because we price these securities through an internal analysis of each investment’s financial statements and cash flow projections. Significant unobservable inputs consist of earnings and revenue multiples, discount for lack of marketability and comparability adjustments. An increase or decrease in any of these unobservable inputs would result in a change in the fair value measurement, which may be significant. Derivatives – Where quoted prices are available in an active market, our derivatives are classified in Level 1. Certain of our derivative instruments are valued using models that primarily use market observable inputs and therefore are classified in 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 June 30, 2015 and December 31, 2014 were as follows: (Millions) Level 1 Level 2 Level 3 Total June 30, 2015 Assets: Debt securities: U.S. government securities $ 1,560.1 $ 184.9 $ — $ 1,745.0 States, municipalities and political subdivisions — 4,791.3 1.1 4,792.4 U.S. corporate securities — 8,319.4 63.6 8,383.0 Foreign securities — 3,391.6 25.5 3,417.1 Residential mortgage-backed securities — 856.5 — 856.5 Commercial mortgage-backed securities — 1,324.3 12.7 1,337.0 Other asset-backed securities — 787.6 24.3 811.9 Redeemable preferred securities — 44.7 4.1 48.8 Total debt securities 1,560.1 19,700.3 131.3 21,391.7 Equity securities 22.4 — 16.3 38.7 Derivatives — .3 — .3 Total $ 1,582.5 $ 19,700.6 $ 147.6 $ 21,430.7 Liabilities: Derivatives $ — $ 46.5 $ — $ 46.5 December 31, 2014 Assets: Debt securities: U.S. government securities $ 1,198.4 $ 198.5 $ — $ 1,396.9 States, municipalities and political subdivisions — 4,808.2 1.2 4,809.4 U.S. corporate securities — 8,548.2 58.2 8,606.4 Foreign securities — 3,560.7 31.6 3,592.3 Residential mortgage-backed securities — 927.7 — 927.7 Commercial mortgage-backed securities — 1,368.3 7.5 1,375.8 Other asset-backed securities — 602.5 41.5 644.0 Redeemable preferred securities — 65.2 4.1 69.3 Total debt securities 1,198.4 20,079.3 144.1 21,421.8 Equity securities 1.8 — 18.1 19.9 Derivatives — .3 — .3 Total $ 1,200.2 $ 20,079.6 $ 162.2 $ 21,442.0 Liabilities: Derivatives $ — $ 53.4 $ — $ 53.4 There were no transfers between Levels 1 and 2 during the three or six months ended June 30, 2015 or 2014 . During both the three and six months ended June 30, 2015 , we had gross transfers out of Level 3 of $33.2 million related to other asset-backed securities. During both the three and six months ended June 30, 2014, we had an immaterial amount of gross transfers out of Level 3. During both the three and six months ended June 30, 2015 and 2014, we had an immaterial amount of gross transfers into Level 3 financial assets. 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 in Level 2. For bank loans classified in 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 values 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 June 30, 2015 and December 31, 2014 were as follows: Carrying Value Estimated Fair Value (Millions) Level 1 Level 2 Level 3 Total June 30, 2015 Assets: Mortgage loans $ 1,507.4 $ — $ — $ 1,557.7 $ 1,557.7 Bank loans 230.0 — 220.0 8.7 228.7 Equity securities (1) 34.9 N/A N/A N/A N/A Liabilities: Investment contract liabilities: With a fixed maturity 8.5 — — 8.5 8.5 Without a fixed maturity 518.0 — — 500.7 500.7 Long-term debt 7,840.1 — 8,137.3 — 8,137.3 December 31, 2014 Assets: Mortgage loans $ 1,562.2 $ — $ — $ 1,621.4 $ 1,621.4 Bank loans 231.2 — 217.6 9.4 227.0 Equity securities (1) 34.9 N/A N/A N/A N/A Liabilities: Investment contract liabilities: With a fixed maturity 16.6 — — 16.6 16.6 Without a fixed maturity 557.5 — — 551.5 551.5 Long-term debt 8,081.3 — 8,764.8 — 8,764.8 (1) It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies. 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 19 . 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 in 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 June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Debt securities $ 680.1 $ 2,654.6 $ 5.6 $ 3,340.3 $ 876.0 $ 2,495.0 $ 2.9 $ 3,373.9 Equity securities 180.5 5.6 — 186.1 173.3 5.7 — 179.0 Derivatives — .3 — .3 — .2 — .2 Common/collective trusts — 563.8 — 563.8 — 574.0 — 574.0 Total (1) $ 860.6 $ 3,224.3 $ 5.6 $ 4,090.5 $ 1,049.3 $ 3,074.9 $ 2.9 $ 4,127.1 (1) Excludes $200.8 million and $204.4 million of cash and cash equivalents and other receivables at June 30, 2015 and December 31, 2014 , respectively. During the three and six months ended June 30, 2015 and 2014 , we had an immaterial amount of Level 3 Separate Accounts financial assets. 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 June 30, 2015 and December 31, 2014 were as follows: Gross Amounts of Recognized Assets (1) Gross Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Received (Millions) Net Amount June 30, 2015 Derivatives $ .3 $ 11.2 $ — $ 11.5 Total $ .3 $ 11.2 $ — $ 11.5 December 31, 2014 Derivatives $ .3 $ 10.2 $ — $ 10.5 Total $ .3 $ 10.2 $ — $ 10.5 (1) There were no amounts offset in our balance sheets at June 30, 2015 or December 31, 2014 . Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of June 30, 2015 and December 31, 2014 were as follows: Gross Amounts of Recognized Liabilities (1) Gross Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Paid (Millions) Net Amount June 30, 2015 Derivatives $ 46.5 $ — $ (39.5 ) $ 7.0 Securities lending 543.7 (543.7 ) — — Total $ 590.2 $ (543.7 ) $ (39.5 ) $ 7.0 December 31, 2014 Derivatives $ 53.4 $ .9 $ (49.0 ) $ 5.3 Securities lending 826.9 (826.9 ) — — Repurchase agreements 201.7 — — 201.7 Total $ 1,082.0 $ (826.0 ) $ (49.0 ) $ 207.0 (1) There were no amounts offset in our balance sheets at June 30, 2015 or December 31, 2014 . Our gross obligation with respect to investments pledged under our securities lending program as of June 30, 2015 is as follows: (Millions) Debt securities: U.S. government securities $ 43.1 States, municipalities and political subdivisions 4.5 U.S. corporate securities 305.6 Foreign securities 171.3 Redeemable preferred securities .2 Total investments pledged as collateral under securities lending program 524.7 Less: Gross amount of recognized liabilities under securities lending program 543.7 Amounts related to agreements not included in offsetting disclosure (1) $ (19.0 ) (1) Represents additional cash collateral posted by the borrower as described below. At June 30, 2015 , all of our loans from our securities lending program were continuous, and we did not have any repurchase agreements outstanding. In connection with our securities lending program, we have exposure to interest rate risk on the changes in the value of our investments pledged as collateral as well as credit risk of the borrowers. Risks associated with securities lending transactions are generally mitigated as we require borrowers to post cash collateral in an amount of 102% to 105% of the fair value of the loaned securities, and the fair value of the loaned securities is monitored on a daily basis, with additional collateral obtained or refunded as the fair value of the loaned securities fluctuates. In addition, we review and approve all borrowers and assign a dollar limit on the amount each borrower can have outstanding, and we monitor our exposure to each borrower daily. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Plans | 10. Pension and Other Postretirement Plans Defined Benefit Retirement Plans Components of the net periodic benefit (income) cost of our defined benefit pension plans and other postretirement employee benefit (“OPEB”) plans for the three and six months ended June 30, 2015 and 2014 were as follows: Pension Plans OPEB Plans Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Millions) 2015 2014 2015 2014 2015 2014 2015 2014 Amortization of prior service credit $ (.1 ) $ (.1 ) $ (.2 ) $ (.2 ) $ (.9 ) $ (.9 ) $ (1.8 ) $ (1.8 ) Interest cost 65.2 72.1 130.4 144.2 2.7 2.9 5.4 5.9 Expected return on plan assets (104.7 ) (105.5 ) (209.5 ) (211.1 ) (.7 ) (.8 ) (1.5 ) (1.6 ) Recognized net actuarial losses 15.4 11.6 30.8 23.3 .6 .3 1.3 .5 Net periodic benefit (income) cost $ (24.2 ) $ (21.9 ) $ (48.5 ) $ (43.8 ) $ 1.7 $ 1.5 $ 3.4 $ 3.0 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt The carrying value of our long-term debt at June 30, 2015 and December 31, 2014 was as follows: (Millions) June 30, December 31, Senior notes, 6.125%, due 2015 (1) $ — $ 229.3 Senior notes, 5.95%, due 2017 410.4 418.3 Senior notes, 1.75%, due 2017 249.4 249.2 Senior notes, 1.5%, due 2017 498.9 498.6 Senior notes, 2.2%, due 2019 374.7 374.7 Senior notes, 3.95%, due 2020 745.6 745.2 Senior notes, 5.45%, due 2021 681.7 688.6 Senior notes, 4.125%, due 2021 495.9 495.5 Senior notes, 2.75%, due 2022 987.6 986.8 Senior notes, 3.5%, due 2024 747.1 746.9 Senior notes, 6.625%, due 2036 769.8 769.8 Senior notes, 6.75%, due 2037 530.8 530.7 Senior notes, 4.5%, due 2042 481.1 480.8 Senior notes, 4.125%, due 2042 493.0 492.8 Senior notes, 4.75%, due 2044 374.1 374.1 Total long-term debt 7,840.1 8,081.3 Less current portion of long-term debt — 229.3 Total long-term debt, less current portion $ 7,840.1 $ 7,852.0 (1) The 6.125% senior notes were repaid in January 2015. These notes were classified as current in the consolidated balance sheet as of December 31, 2014. At June 30, 2015 , we did not have any commercial paper outstanding. At December 31, 2014, we had approximately $500 million of commercial paper outstanding with a weighted-average interest rate of .30% . We are a member of the Federal Home Loan Bank of Boston (the “FHLBB”), and as a member we have the ability to obtain cash advances, subject to certain minimum collateral requirements. Our maximum borrowing capacity available from the FHLBB at June 30, 2015 was approximately $851 million . At both June 30, 2015 and December 31, 2014 , we did not have any outstanding borrowings from the FHLBB. Interest Rate Swaps 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 June 30, 2015 , these interest rate swaps had a pretax fair value loss of $46 million , which was reflected net of tax in accumulated other comprehensive loss within shareholders’ equity. Revolving Credit Facility On March 27, 2012, we entered into an unsecured $1.5 billion five-year revolving credit agreement (the “Credit Agreement”) with several financial institutions. On September 24, 2012, and in connection with the acquisition of Coventry, we entered into a First Amendment (the “First Amendment”) to the Credit Agreement and also entered into an Incremental Commitment Agreement (the “Incremental Commitment Agreement”). On March 2, 2015, we entered into a Second Amendment to the Credit Agreement (the “Second Amendment”). On July 30, 2015, in connection with the proposed acquisition of Humana (the “Proposed Acquisition”), we entered into a Third Amendment (the “Third Amendment,” and together with the First Amendment, the Incremental Commitment Agreement, the Second Amendment and the Credit Agreement, resulting in the “Facility”). The Facility is an unsecured $2.0 billion revolving credit agreement. The Third Amendment permits us to increase the commitments available under the Facility from $2.0 billion to $3.0 billion upon our request and the satisfaction of certain conditions, including the completion of the transactions contemplated by the Merger Agreement and the termination of Humana’s existing credit agreement dated as of July 9, 2013 (“Humana’s Existing Credit Agreement”). The Third Amendment also modified the calculation of total debt for the purposes of determining compliance prior to the Closing Date (as defined below) with certain covenants to exclude debt incurred by us to finance the Proposed Acquisition, the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith so long as either (A) the net proceeds of such debt are set aside to finance the Proposed Acquisition, the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith or (B) such debt is subject to mandatory redemption in the event that the Merger Agreement is terminated or expires. In addition, upon our agreement with one or more financial institutions, we may expand the commitments under the Facility by an additional $500 million . 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 both 2013 and 2014, we extended the maturity date of the Facility by one year. On March 2, 2015, we extended the maturity date of the Facility by an additional year to March 27, 2020. 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 .050% to .150% per annum, depending upon our long-term senior unsecured debt rating. The facility fee was .100% at June 30, 2015 . 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 June 30, 2015 . There were no amounts outstanding under the Facility at any time during the six months ended June 30, 2015 or 2014. Bridge Credit Agreement On July 30, 2015, we entered into a 364-day senior unsecured bridge credit agreement (the “Bridge Credit Agreement”) with a group of fifteen lenders. Under the Bridge Credit Agreement, we may borrow on an unsecured basis an aggregate principal amount of up to $13.0 billion , to the extent that we have not received $13.0 billion of net cash proceeds from issuing senior notes or from certain other transactions on or prior to the closing date of the Proposed Acquisition (the “Closing Date”). Any proceeds of the Bridge Credit Agreement are required to be used to fund the Proposed Acquisition and to pay fees and expenses in connection with the Proposed Acquisition. The lenders' undrawn commitments under the Bridge Credit Agreement will be automatically and permanently reduced in an amount equal to, and we also will be required to make prepayments of any outstanding loans under the Bridge Credit Agreement with, the (i) net cash proceeds from the issuance of debt of Aetna or any of its subsidiaries, (ii) net cash proceeds from the issuance of equity of Aetna and (iii) net cash proceeds in excess of $300 million we receive from non-ordinary course asset sales, in each case subject to certain exceptions. The lenders’ obligation to fund the loans under the Bridge Credit Agreement is subject to the satisfaction of certain conditions, including the completion of the transactions contemplated by the Merger Agreement, the termination of Humana’s Existing Credit Agreement and our having used commercially reasonable efforts to issue senior notes to provide funds to pay for the cash portion of the consideration payable under the Merger Agreement, to pay Aetna’s fees and expenses related to the proposed Humana acquisition and/or to refinance any loans made under the Bridge Credit Agreement. Any borrowings under the Bridge Credit Agreement mature 364 days after the Closing Date. The Bridge Credit Agreement 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 Bridge Credit Agreement). For the purposes of determining compliance prior to the Closing Date with certain covenants, total debt also excludes debt incurred by us to finance the Proposed Acquisition, the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith so long as either (A) the net proceeds of such debt are set aside to finance the Proposed Acquisition, the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith or (B) such debt is subject to mandatory redemption in the event that the Merger Agreement is terminated or expires. The Bridge Credit Agreement also contains a covenant limiting “Restricted Payments” (as defined in the Bridge Credit Agreement) by Aetna, subject certain exceptions and baskets, including an exception permitting the payment of regular cash dividends. Amounts outstanding under the Bridge Credit Agreement will bear interest, at our option, either (a) at the London Interbank Offered Rate (“LIBOR”); or (b) at the base rate (defined as the highest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50% per annum and (iii) LIBOR for an interest period of one month plus 1.00% per annum), plus, in each case, the applicable LIBOR margin or base rate margin depending upon the ratings of our long-term senior unsecured debt. The minimum and maximum LIBOR margins are 0.75% and 1.25% per annum, respectively, and the minimum and maximum base rate margins are 0% and 0.25% per annum, respectively, provided, however, that the applicable margins will increase by 0.25% per annum on the 90th day following the Closing Date and by an additional 0.25% per annum each 90th day thereafter while loans remain outstanding under the Bridge Credit Agreement. We will also pay to each lender on each of the following dates a duration fee equal to the following applicable percentages of the aggregate principal amount of such lender's loans outstanding under the Bridge Credit Agreement on such date: (i) 90 days after the Closing Date, 0.50% ; (ii) 180 days after the Closing Date, 0.75% ; and (iii) 270 days after the Closing Date, 1.00% . We will also pay the lenders certain other fees. Term Loan Agreement On July 30, 2015, we entered into a senior three-year term loan credit agreement (the “Term Loan Agreement”) with a group of seventeen lenders. Under the Term Loan Agreement, we may borrow on an unsecured basis an aggregate principal amount of up to $3.2 billion . Any proceeds of the Term Loan Agreement are required to be used to fund the Proposed Acquisition and to pay fees and expenses in connection with the Proposed Acquisition. The lenders’ obligation to fund the loans under the Term Loan Agreement is subject to the satisfaction of certain conditions, including the completion of the transactions contemplated by the Merger Agreement and the termination of Humana’s Existing Credit Agreement. Any borrowings under the Term Loan Agreement mature three years after the Closing Date. The Term Loan Agreement 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 Term Loan Agreement). For the purposes of determining compliance prior to the Closing Date with certain covenants, total debt also excludes debt incurred by us to finance the Proposed Acquisition, the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith so long as either (A) the net proceeds of such debt are set aside to finance the Proposed Acquisition, the other financing transactions related to the Proposed Acquisition and/or the payment of fees and expenses incurred in connection therewith or (B) such debt is subject to mandatory redemption in the event that the Merger Agreement is terminated or expires. The Term Loan Agreement also contains a covenant limiting “Restricted Payments” (as defined in the Term Loan Agreement) by Aetna, subject to certain exceptions and baskets, including an exception permitting the payment of regular cash dividends. Amounts outstanding under the Term Loan Agreement will bear interest, at our option, either (a) at LIBOR; or (b) at the base rate (defined as the highest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50% per annum and (iii) LIBOR for an interest period of one month plus 1.00% per annum), plus, in each case, the applicable LIBOR margin or base rate margin depending upon the ratings of our long-term senior unsecured debt. The minimum and maximum LIBOR margins are 0.75% and 1.50% per annum, respectively, and the minimum and maximum base rate margins are 0.0% and 0.50% per annum, respectively. We will also pay the lenders certain other fees. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2015 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | 12. Capital Stock On November 21, 2014 and February 28, 2014, our Board of Directors (our “Board”) authorized two separate share repurchase programs of our common stock of up to $1.0 billion each. During the six months ended June 30, 2015 , we repurchased approximately 3 million shares of common stock at a cost of approximately $296 million . As described below, during April 2015, we repurchased approximately .9 million shares of common stock at a cost of approximately $100 million . We did not repurchase any shares of common stock during May or June of 2015. At June 30, 2015 , we had remaining authorization to repurchase an aggregate of up to approximately $1.1 billion of common stock under the November 21, 2014 and February 28, 2014 programs. 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. As described above, from time to time we enter into accelerated share repurchase agreements with unrelated third party financial institutions. The number of shares repurchased under each agreement is based on the volume-weighted average price of our common stock during the purchase period. We completed the following accelerated share repurchase programs during the six months ended June 30, 2015 : Trade Date: Value of Repurchase Program (Millions) Repurchase Period Number of Shares Repurchased (Millions) December 15, 2014 $ 150.0 January and February 2015 1.6 March 2, 2015 100.0 April 2015 .9 During the six months ended June 30, 2015 our Board declared the following cash dividends: Date Declared Dividend Amount Per Share Stockholders of Record Date Date Paid/ To be Paid Total Dividends (Millions) February 27, 2015 $ .25 April 9, 2015 April 24, 2015 $ 87.1 May 15, 2015 .25 July 16, 2015 July 31, 2015 87.1 Prior to completion of the proposed Humana acquisition, our quarterly cash dividend will not exceed $.25 per share. Our dividend policy following the completion of the proposed acquisition will be determined by our Board. 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 2, 2015, approximately .3 million PSUs, 1.1 million restricted stock units (“RSUs”) and 1.9 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 certain operating performance goals, as determined by our Board’s Committee on Compensation and Talent Management, during a three-year performance period which began January 1, 2015 and ends on December 31, 2017. The vesting period for the PSUs ends on March 2, 2018. Each vested PSU 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 $100.50 per share, the closing price of our common stock on the grant date. SARs will generally 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 first quarters of 2015 and 2014 had an estimated fair market value of $32.13 and $22.68 per unit, respectively. The fair value per unit was calculated on each respective grant date using a modified Black-Scholes option pricing model using the following assumptions during the first quarters of 2015 and 2014 : 2015 2014 Expected term (in years) 6.48 5.72 Volatility 33.4 % 35.8 % Risk-free interest rate 1.81 % 1.74 % Dividend yield 1.13 % 1.36 % Initial price $ 100.50 $ 72.26 The expected term is based on historical equity award activity. 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 for each respective period. The dividend yield is based on our historical dividends in the 12 months prior to the grant date. There were no material SARs granted during the three months ended June 30, 2015 or 2014. |
Dividend Restrictions and Statu
Dividend Restrictions and Statutory Surplus | 6 Months Ended |
Jun. 30, 2015 | |
Dividend Restrictions and Statutory Surplus [Abstract] | |
Dividend Restrictions and Statutory Surplus | 13. Dividend Restrictions and Statutory Surplus Under applicable regulatory requirements at June 30, 2015 , the amount of dividends that may be paid through the end of 2015 by our insurance and HMO subsidiaries without prior approval by regulatory authorities was approximately $1.0 billion in the aggregate. There are no such regulatory restrictions on distributions from Aetna to its shareholders. Prior to completion of the proposed Humana acquisition, Aetna is not permitted to declare, set aside or pay any dividend or other distribution other than a regular quarterly cash dividend in the ordinary course of business, which will not exceed $.25 per share. In addition, the Bridge Credit Agreement and Term Loan Agreement each contain a covenant limiting “Restricted Payments” (as defined in the applicable agreement) by Aetna, subject to certain exceptions and baskets, including an exception permitting the payment of regular cash dividends. During the second quarter of 2015 , our insurance and HMO subsidiaries paid approximately $527 million of dividends to the Company. The combined statutory capital and surplus of our insurance and HMO subsidiaries was $9.2 billion and $9.4 billion at June 30, 2015 and December 31, 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Guaranty Fund Assessments, Market Stabilization and Other Non-Voluntary Risk Sharing Pools Under guaranty fund laws existing in all states, insurers doing business in those states can be assessed (up to prescribed limits) for certain obligations of insolvent insurance companies to policyholders and claimants. The life and health insurance guaranty associations in which we participate that operate under these laws respond to insolvencies of long-term care insurers as well as health insurers. Our assessments generally are based on a formula relating to our premiums in the state compared to the premiums of other insurers. Certain states allow assessments to be recovered as offsets to premium taxes. Some states have similar laws relating to HMOs and/or other payors such as not-for-profit consumer-governed health plans established under Health Care Reform. In 2009, the Pennsylvania Insurance Commissioner (the “Commissioner”) placed long-term care insurer Penn Treaty Network America Insurance Company and one of its subsidiaries (collectively, “Penn Treaty”) in rehabilitation, an intermediate action before insolvency, and subsequently petitioned a state court to convert the rehabilitation into a liquidation. In 2012, the state court denied the Commissioner’s petition for liquidation. The Pennsylvania Supreme Court affirmed that ruling in July 2015. The state court’s 2012 order directed the Commissioner to develop a plan of rehabilitation. The Commissioner filed an initial rehabilitation plan in April 2013, and filed amended plans in August 2014 and October 2014. The state court began a hearing in July 2015 to consider the Commissioner’s most recent proposed rehabilitation plan, which contemplates a partial liquidation of Penn Treaty. If Penn Treaty is placed in liquidation, we and other insurers likely would be assessed immediately or over a period of years by guaranty associations for the payments the guaranty associations are required to make to Penn Treaty policyholders. We are currently unable to predict the ultimate outcome of, or reasonably estimate the loss or range of losses resulting from, this potential insolvency because we cannot predict the extent to which rehabilitation efforts may succeed, the amount of the insolvency, the amount and timing of associated future guaranty association assessments or the amount or availability of potential offsets, such as premium tax offsets. It is reasonably possible that in future reporting periods we may record a liability and expense relating to Penn Treaty or other insolvencies which could have a material adverse effect on our operating results, financial condition and cash flows. While we have historically recovered more than half of guaranty fund assessments through statutorily permitted premium tax offsets, significant increases in assessments could lead to legislative and/or regulatory actions that may limit future offsets. 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 (“RICO”) 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. 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). On June 30, 2015, the New Jersey District Court granted in part our motion to dismiss the proceeding. The New Jersey District Court dismissed with prejudice the plaintiffs’ RICO and federal antitrust claims; their ERISA claims that are based on our disclosures and our purported breach of fiduciary duties; and certain of their state law claims. The New Jersey District Court also dismissed with prejudice all claims asserted by several medical association plaintiffs. The plaintiffs’ remaining claims are for ERISA benefits and breach of contract. We intend to vigorously defend ourselves against the plaintiffs’ remaining claims. 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 prepared, 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 to us and document their medical records, including the diagnosis data submitted to us with claims. 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, to validate coding practices and supporting medical record documentation maintained by health care providers and the resulting risk adjusted premium payments to the plans. CMS may require us to refund premium payments if our risk adjusted premiums are not properly supported by medical record data. 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 revised its audit methodology for RADV audits to determine refunds payable by Medicare Advantage plans for contract year 2011 and forward. Under the revised 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 revised methodology may increase our exposure to premium refunds to CMS based on 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, Public Exchange related or other audits by CMS, the OIG, HHS 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 litigation related to the proposed acquisition of Humana, 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), provider directory accuracy, rescission of insurance coverage, improper disclosure of personal information, anticompetitive practices, 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, the U.S. Department of the Treasury, the U.S. Food and Drug Administration, 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.” A significant number of 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 a heightened level of 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 provider network adequacy, the use of performance-based networks and termination of provider contracts), provider directory accuracy, calculation of minimum medical loss ratios, delegated arrangements, rescission of insurance coverage, limited benefit health products, student health products, pharmacy benefit management practices (including the use of narrow networks and the placement of drugs in formulary tiers), sales practices, customer service 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, withholding of premium payments to us by government agencies, assessments of damages, civil or criminal fines or penalties, or other sanctions, including the possible suspension or loss of licensure and/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 | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information Our operations are conducted in three business segments: Health Care, Group Insurance and Large Case Pensions. 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 six months ended June 30, 2015 and 2014 were as follows: (Millions) Health Care Group Insurance Large Case Pensions Corporate Financing Total Company Three Months Ended June 30, 2015 Revenue from external customers (1) $ 14,416.8 $ 565.6 $ 9.1 $ — $ 14,991.5 Operating earnings (loss) (2) 708.0 44.8 6.2 (36.9 ) 722.1 Three Months Ended June 30, 2014 Revenue from external customers $ 13,677.3 $ 556.0 $ 24.0 $ — $ 14,257.3 Operating earnings (loss) (2) 584.3 60.6 5.4 (40.3 ) 610.0 Six Months Ended June 30, 2015 Revenue from external customers (1) $ 28,702.6 $ 1,120.1 $ 21.9 $ — $ 29,844.6 Operating earnings (loss) (2) 1,543.6 88.7 8.3 (74.2 ) 1,566.4 Six Months Ended June 30, 2014 Revenue from external customers $ 26,808.7 $ 1,100.4 $ 70.3 $ — $ 27,979.4 Operating earnings (loss) (2) 1,303.3 101.8 10.2 (83.3 ) 1,332.0 (1) In the three months ended June 30, 2015, we received proceeds of $71.3 million ( $109.6 million pretax), net of legal costs, in connection with a litigation settlement. These net proceeds were recorded in fees and other revenue in our GAAP Consolidated Statements of Income. (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. A reconciliation of operating earnings (1) to net income attributable to Aetna for the three and six months ended June 30, 2015 and 2014 was as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Operating earnings (1) $ 722.1 $ 610.0 $ 1,566.4 $ 1,332.0 Transaction and integration-related costs, net of tax (21.4 ) (36.3 ) (52.1 ) (78.2 ) Litigation-related proceeds, net of tax 71.3 — 71.3 — Loss on early extinguishment of long-term debt, net of tax — — — (59.7 ) Release of litigation-related reserve, net of tax — — — 67.0 Amortization of other acquired intangible assets, net of tax (41.4 ) (40.3 ) (82.5 ) (80.7 ) Net realized capital gains, net of tax 1.2 15.4 6.2 33.9 Net income attributable to Aetna $ 731.8 $ 548.8 $ 1,509.3 $ 1,214.3 (1) In addition to net realized capital gains 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 $21.4 million ( $30.7 million pretax) and $52.1 million ( $76.3 million pretax) during the three and six months ended June 30, 2015 , respectively, related to the acquisitions of Coventry, InterGlobal and bswift, and transaction and integration-related costs of $36.3 million ( $55.8 million pretax) and $78.2 million ( $119.5 million pretax) during the three and six months ended June 30, 2014 , respectively, related to the acquisitions of Coventry and InterGlobal. 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. • In the three months ended June 30, 2015, we received proceeds of $71.3 million ( $109.6 million pretax), net of legal costs, in connection with a litigation settlement. These net proceeds were recorded in fees and other revenue in our GAAP Consolidated Statements of Income. • We incurred a loss on the early extinguishment of long-term debt of $59.7 million ( $91.9 million pretax) during the three months ended March 31, 2014 related to the redemption of our 6.0% senior notes due 2016. • We recorded a charge of $78.0 million ( $120.0 million pretax) during the three months ended December 31, 2012 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. During the three months ended March 31, 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 other general and administrative expenses by $67.0 million ( $103.0 million pretax) in the three months ended March 31, 2014. Refer to Note 14 beginning on page 31 for additional information on the termination of the settlement agreement. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 16. Reinsurance In January 2015, we entered into three-year reinsurance agreements with Vitality Re VI 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 III Limited expired in January 2015. |
Discontinued Products
Discontinued Products | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Products [Abstract] | |
Discontinued Products | 17. Discontinued Products Prior to 1993, we sold single-premium annuities (“SPAs”) and guaranteed investment contracts (“GICs”), primarily to employer sponsored pension plans. In 1993, we discontinued selling these products to Large Case Pensions customers, and now we refer to these products as discontinued products. We discontinued selling these products because they were generating losses for us, and we projected that they would continue to generate losses over their life (which is currently greater than 30 years for SPAs); so we established a reserve for anticipated future losses at the time of discontinuance. At both June 30, 2015 and December 31, 2014 , 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. The reserve at each of June 30, 2015 and December 31, 2014 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 six months ended June 30, 2015 and 2014 was as follows (pretax): (Millions) 2015 2014 Reserve, beginning of period $ 1,014.7 $ 979.5 Operating income 11.4 2.3 Net realized capital gains 63.6 12.6 Reserve, end of period $ 1,089.7 $ 994.4 During the six months ended June 30, 2015 , our discontinued products reflected operating income and net realized capital gains, primarily attributable to gains from the sale of other invested assets, debt securities and investment real estate. During the six months ended June 30, 2014 , our discontinued products reflected operating income and net realized capital gains, primarily attributable to gains 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 June 30, 2015 or 2014 . Assets and liabilities supporting discontinued products at June 30, 2015 and December 31, 2014 were as follows: (1) (Millions) 2015 2014 Assets: Debt and equity securities available for sale $ 2,242.1 $ 2,376.2 Mortgage loans 336.3 386.8 Other investments 652.5 662.2 Total investments 3,230.9 3,425.2 Other assets 119.4 112.9 Collateral received under securities loan agreements 116.5 200.7 Current and deferred income taxes 14.1 — Receivable from continuing products (2) 584.0 566.5 Total assets $ 4,064.9 $ 4,305.3 Liabilities: Future policy benefits $ 2,566.5 $ 2,645.8 Reserve for anticipated future losses on discontinued products 1,089.7 1,014.7 Collateral payable under securities loan agreements 116.5 200.7 Current and deferred income taxes — 27.9 Other liabilities (3) 292.2 416.2 Total liabilities $ 4,064.9 $ 4,305.3 (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 $89 million and $180 million for the three and six months ended June 30, 2015 , respectively, and $94 million and $191 million for the three and six months ended June 30, 2014 , respectively. There were no material participant-directed withdrawals from our discontinued products during the three or six months ended June 30, 2015 or 2014 . Cash required to fund these distributions was provided by earnings and scheduled payments on, and sales of, invested assets. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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 2014 Annual Report on Form 10-K (our “2014 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 2014 Annual Report, unless the information contained in those disclosures materially changed and is required by GAAP. We evaluated subsequent events that occurred after June 30, 2015 through the date the financial statements were issued and determined there were no other items to disclose other than as disclosed in Notes 3 and 11 beginning on pages 9 and 26 , respectively. |
Reclassifications | Reclassifications Certain reclassifications were made to 2014 financial information to conform with the 2015 presentation. |
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. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The computations of basic and diluted EPS for the three and six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions, except per common share data) 2015 2014 2015 2014 Net income attributable to Aetna $ 731.8 $ 548.8 $ 1,509.3 $ 1,214.3 Weighted average shares used to compute basic EPS 349.0 356.8 349.2 359.2 Dilutive effect of outstanding stock-based compensation awards 3.2 3.5 3.3 3.4 Weighted average shares used to compute diluted EPS 352.2 360.3 352.5 362.6 Basic EPS $ 2.10 $ 1.54 $ 4.32 $ 3.38 Diluted EPS $ 2.08 $ 1.52 $ 4.28 $ 3.35 |
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 six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Stock appreciation rights (“SARs”) (1) — — .9 .7 Other stock-based compensation awards (2) .6 1.1 .9 1.3 (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) Performance stock units ("PSUs"), certain market stock units ("MSUs") with performance conditions, and performance stock appreciation rights ("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) | 6 Months Ended |
Jun. 30, 2015 | |
Operating Expenses [Abstract] | |
Operating Expenses | For the three and six months ended June 30, 2015 and 2014 , 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 Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Selling expenses $ 405.7 $ 413.0 $ 820.6 $ 815.8 General and administrative expenses: Salaries and related benefits 1,216.4 1,118.0 2,423.0 2,237.5 Other general and administrative expenses (1) (2) 1,179.7 1,070.2 2,374.9 1,998.3 Total general and administrative expenses (3) 2,396.1 2,188.2 4,797.9 4,235.8 Total operating expenses $ 2,801.8 $ 2,601.2 $ 5,618.5 $ 5,051.6 (1) The three and six months ended June 30, 2015 include estimated fees mandated by the ACA comprised primarily of the health insurer fee of $213.8 million and $432.5 million , respectively, and our estimated contribution to the funding of the reinsurance program of $52.2 million and $105.8 million , respectively. The three and six months ended June 30, 2014 include estimated fees mandated by the ACA comprised primarily of the health insurer fee of $147.7 million and $ 302.5 million , respectively, and our estimated contribution to the funding of the reinsurance program of $86.2 million and $ 171.1 million , respectively. (2) In the three months ended December 31, 2012, we recorded a charge of $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 three months ended March 31, 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 other general and administrative expenses by $103.0 million pretax in the three months ended March 31, 2014. Refer to Note 14 beginning on page 31 for additional information on the termination of the settlement agreement. (3) The three and six months ended June 30, 2015 include $30.7 million and $76.3 million , respectively, of transaction and integration-related costs related to the acquisitions of Coventry Health Care, Inc. (“Coventry”), the InterGlobal group (“InterGlobal”) and bSwift LLC (“bswift”). The three and six months ended June 30, 2014 include $55.8 million and $119.5 million , respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Total investments | Total investments at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (Millions) Current Long-term Total Current Long-term Total Debt and equity securities available for sale $ 2,412.1 $ 19,018.3 $ 21,430.4 $ 2,463.8 $ 18,977.9 $ 21,441.7 Mortgage loans 130.2 1,377.2 1,507.4 124.2 1,438.0 1,562.2 Other investments 3.5 1,784.6 1,788.1 7.2 1,778.0 1,785.2 Total investments $ 2,545.8 $ 22,180.1 $ 24,725.9 $ 2,595.2 $ 22,193.9 $ 24,789.1 |
Debt and equity securities available for sale | Debt and equity securities available for sale at June 30, 2015 and December 31, 2014 were as follows: (Millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Debt securities: U.S. government securities $ 1,669.4 $ 76.2 $ (.6 ) $ 1,745.0 States, municipalities and political subdivisions 4,625.3 197.1 (30.0 ) 4,792.4 U.S. corporate securities 8,040.2 429.2 (86.4 ) 8,383.0 Foreign securities 3,235.6 213.6 (32.1 ) 3,417.1 Residential mortgage-backed securities 840.0 21.9 (5.4 ) 856.5 Commercial mortgage-backed securities 1,302.6 37.9 (3.5 ) (1) 1,337.0 Other asset-backed securities 808.9 6.7 (3.7 ) (1) 811.9 Redeemable preferred securities 39.0 10.3 (.5 ) 48.8 Total debt securities 20,561.0 992.9 (162.2 ) 21,391.7 Equity securities 45.7 2.0 (9.0 ) 38.7 Total debt and equity securities (2) $ 20,606.7 $ 994.9 $ (171.2 ) $ 21,430.4 December 31, 2014 Debt securities: U.S. government securities $ 1,301.2 $ 96.3 $ (.6 ) $ 1,396.9 States, municipalities and political subdivisions 4,540.0 277.2 (7.8 ) 4,809.4 U.S. corporate securities 8,033.2 606.8 (33.6 ) 8,606.4 Foreign securities 3,343.6 267.0 (18.3 ) 3,592.3 Residential mortgage-backed securities 902.7 28.9 (3.9 ) 927.7 Commercial mortgage-backed securities 1,324.6 52.8 (1.6 ) (1) 1,375.8 Other asset-backed securities 644.7 5.8 (6.5 ) (1) 644.0 Redeemable preferred securities 56.8 12.5 — 69.3 Total debt securities 20,146.8 1,347.3 (72.3 ) 21,421.8 Equity securities 23.3 .4 (3.8 ) 19.9 Total debt and equity securities (2) $ 20,170.1 $ 1,347.7 $ (76.1 ) $ 21,441.7 (1) At June 30, 2015 and December 31, 2014 , we held securities for which we previously recognized $15.6 million and $18.6 million , respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at June 30, 2015 and December 31, 2014 of $2.8 million and $3.6 million , respectively. (2) Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At June 30, 2015 , debt and equity securities with a fair value of approximately $3.5 billion , gross unrealized capital gains of $273.3 million and gross unrealized capital losses of $52.5 million and, at December 31, 2014 , debt and equity securities with a fair value of approximately $3.6 billion , gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 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 June 30, 2015 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 $ 1,075.0 One year through five years 6,015.4 After five years through ten years 5,842.2 Greater than ten years 5,453.7 Residential mortgage-backed securities 856.5 Commercial mortgage-backed securities 1,337.0 Other asset-backed securities 811.9 Total $ 21,391.7 |
Debt and Equity Securities in an Unrealized Capital Loss Position | Summarized below are the debt and equity securities we held at June 30, 2015 and December 31, 2014 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 Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2015 Debt securities: U.S. government securities $ 379.8 $ .2 $ 12.8 $ .4 $ 392.6 $ .6 States, municipalities and political subdivisions 1,551.8 26.1 107.1 3.9 1,658.9 30.0 U.S. corporate securities 2,501.9 76.4 140.7 10.0 2,642.6 86.4 Foreign securities 849.6 27.7 62.3 4.4 911.9 32.1 Residential mortgage-backed securities 121.7 1.8 101.2 3.6 222.9 5.4 Commercial mortgage-backed securities 232.6 3.2 28.5 .3 261.1 3.5 Other asset-backed securities 282.9 3.3 44.0 .4 326.9 3.7 Redeemable preferred securities 5.4 .5 — — 5.4 .5 Total debt securities 5,925.7 139.2 496.6 23.0 6,422.3 162.2 Equity securities 21.3 5.4 1.6 3.6 22.9 9.0 Total debt and equity securities (1) $ 5,947.0 $ 144.6 $ 498.2 $ 26.6 $ 6,445.2 $ 171.2 December 31, 2014 Debt securities: U.S. government securities $ 20.6 $ .1 $ 19.8 $ .5 $ 40.4 $ .6 States, municipalities and political subdivisions 457.4 2.2 347.4 5.6 804.8 7.8 U.S. corporate securities 1,074.1 19.9 515.2 13.7 1,589.3 33.6 Foreign securities 540.0 12.8 148.0 5.5 688.0 18.3 Residential mortgage-backed securities 3.9 .1 166.9 3.8 170.8 3.9 Commercial mortgage-backed securities 181.5 .7 69.0 .9 250.5 1.6 Other asset-backed securities 373.1 6.1 21.3 .4 394.4 6.5 Redeemable preferred securities 3.0 — — — 3.0 — Total debt securities 2,653.6 41.9 1,287.6 30.4 3,941.2 72.3 Equity securities 8.0 — 1.4 3.8 9.4 3.8 Total debt and equity securities (1) $ 2,661.6 $ 41.9 $ 1,289.0 $ 34.2 $ 3,950.6 $ 76.1 (1) At June 30, 2015 and December 31, 2014 , debt and equity securities in an unrealized capital loss position of $52.5 million and $16.7 million , respectively, and with related fair value of $1.0 billion and $402.7 million , respectively, related to experience-rated and discontinued products. |
Maturity dates for debt securities | The maturity dates for debt securities in an unrealized capital loss position at June 30, 2015 were as follows: Supporting discontinued and experience-rated products Supporting remaining products Total (Millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Due to mature: Less than one year $ — $ — $ 69.1 $ .2 $ 69.1 $ .2 One year through five years 48.0 .5 1,304.9 8.8 1,352.9 9.3 After five years through ten years 434.1 10.3 1,965.1 39.1 2,399.2 49.4 Greater than ten years 485.1 33.7 1,305.1 57.0 1,790.2 90.7 Residential mortgage-backed securities — — 222.9 5.4 222.9 5.4 Commercial mortgage-backed securities 49.2 1.4 211.9 2.1 261.1 3.5 Other asset-backed securities — — 326.9 3.7 326.9 3.7 Total $ 1,016.4 $ 45.9 $ 5,405.9 $ 116.3 $ 6,422.3 $ 162.2 |
Net realized capital gains (losses) | Net realized capital gains (losses) for the three and six months ended June 30, 2015 and 2014 , excluding amounts related to experience-rated contract holders and discontinued products, were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 OTTI losses on debt securities recognized in earnings $ (7.6 ) $ (.1 ) $ (10.0 ) $ (.3 ) Net realized capital gains, excluding OTTI losses on debt securities 9.6 23.9 20.1 52.6 Net realized capital gains $ 2.0 $ 23.8 $ 10.1 $ 52.3 |
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 six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Proceeds on sales $ 1,545.3 $ 930.9 $ 2,491.2 $ 2,023.7 Gross realized capital gains 20.7 19.9 45.6 44.5 Gross realized capital losses 13.6 9.0 22.4 22.0 |
Activity in mortgage loan portfolio | During the three and six months ended June 30, 2015 and 2014 we had the following activity in our mortgage loan portfolio: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 New mortgage loans $ 24.4 $ 107.0 $ 37.1 $ 140.9 Mortgage loans fully repaid 19.5 36.8 59.0 56.6 Mortgage loans foreclosed — — 9.0 — |
Mortgage loan internal credit rating | Based upon our most recent assessments at June 30, 2015 and December 31, 2014 , our mortgage loans were given the following credit quality indicators: (In Millions, except credit ratings indicator) June 30, December 31, 1 $ 57.6 $ 59.7 2 to 4 1,426.9 1,443.4 5 and 6 22.9 31.2 7 — 27.9 Total $ 1,507.4 $ 1,562.2 |
Net Investment Income | Sources of net investment income for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Debt securities $ 201.3 $ 198.2 $ 397.7 $ 396.3 Mortgage loans 21.7 34.1 43.6 58.0 Other investments 38.6 5.3 62.5 35.4 Gross investment income 261.6 237.6 503.8 489.7 Investment expenses (14.2 ) (9.3 ) (23.5 ) (17.2 ) Net investment income (1) $ 247.4 $ 228.3 $ 480.3 $ 472.5 (1) Net investment income includes $74.8 million and $141.4 million for the three and six months ended June 30, 2015 , respectively, and $63.5 million and $143.9 million for the three and six months ended June 30, 2014 , respectively, related to investments supporting our experience-rated and discontinued products. |
Health Care Reform (Tables)
Health Care Reform (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Health Care Reform [Abstract] | |
Health Care Reform Programs | The net receivable (payable) related to the 3Rs risk management programs at June 30, 2015 and December 31, 2014 were as follows: As of June 30, 2015 As of December 31, 2014 (Millions) Reinsurance Risk Adjustment Risk Corridor Reinsurance Risk Adjustment Risk Corridor Current $ 359.2 $ (335.6 ) $ (6.2 ) $ 337.6 $ (230.0 ) $ (9.6 ) Long-term 98.1 (344.2 ) — — — — Total net receivable (payable) $ 457.3 $ (679.8 ) $ (6.2 ) $ 337.6 $ (230.0 ) $ (9.6 ) |
Other Comprehensive (Loss) In31
Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014 : Net Unrealized Gains (Losses) Pension and OPEB Plans Total Securities Foreign (Millions) Previously Impaired (1) All Other Unrecognized Net Actuarial Losses Unrecognized Prior Service Credit Six months ended June 30, 2015 Balance at December 31, 2014 $ 34.9 $ 568.0 $ (60.9 ) $ (1,670.9 ) $ 17.6 $ (1,111.3 ) Other comprehensive (loss) income before reclassifications (4.0 ) (202.0 ) 3.5 — — (202.5 ) Amounts reclassified from accumulated other comprehensive income (6.4 ) (2 ) 25.6 (2 ) 1.9 (3 ) 20.9 (4 ) (1.3 ) (4 ) 40.7 Other comprehensive (loss) income (10.4 ) (176.4 ) 5.4 20.9 (1.3 ) (161.8 ) Balance at June 30, 2015 $ 24.5 $ 391.6 $ (55.5 ) $ (1,650.0 ) $ 16.3 $ (1,273.1 ) Six months ended June 30, 2014 Balance at December 31, 2013 $ 34.2 $ 326.8 $ .4 $ (1,293.8 ) $ 20.3 $ (912.1 ) Other comprehensive income (loss) before reclassifications 3.3 276.0 (25.0 ) — — 254.3 Amounts reclassified from accumulated other comprehensive income (2.0 ) (2 ) (1.2 ) (2 ) (9.2 ) (3 ) 15.4 (4 ) (1.3 ) (4 ) 1.7 Other comprehensive income (loss) 1.3 274.8 (34.2 ) 15.4 (1.3 ) 256.0 Balance at June 30, 2014 $ 35.5 $ 601.6 $ (33.8 ) $ (1,278.4 ) $ 19.0 $ (656.1 ) (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 six months ended June 30, 2015 or 2014 . Refer to Note 11 of Condensed Notes to Consolidated Financial Statements beginning on page 26 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 10 of Condensed Notes to Consolidated Financial Statements beginning on page 26 for additional information. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 were as follows: (Millions) Level 1 Level 2 Level 3 Total June 30, 2015 Assets: Debt securities: U.S. government securities $ 1,560.1 $ 184.9 $ — $ 1,745.0 States, municipalities and political subdivisions — 4,791.3 1.1 4,792.4 U.S. corporate securities — 8,319.4 63.6 8,383.0 Foreign securities — 3,391.6 25.5 3,417.1 Residential mortgage-backed securities — 856.5 — 856.5 Commercial mortgage-backed securities — 1,324.3 12.7 1,337.0 Other asset-backed securities — 787.6 24.3 811.9 Redeemable preferred securities — 44.7 4.1 48.8 Total debt securities 1,560.1 19,700.3 131.3 21,391.7 Equity securities 22.4 — 16.3 38.7 Derivatives — .3 — .3 Total $ 1,582.5 $ 19,700.6 $ 147.6 $ 21,430.7 Liabilities: Derivatives $ — $ 46.5 $ — $ 46.5 December 31, 2014 Assets: Debt securities: U.S. government securities $ 1,198.4 $ 198.5 $ — $ 1,396.9 States, municipalities and political subdivisions — 4,808.2 1.2 4,809.4 U.S. corporate securities — 8,548.2 58.2 8,606.4 Foreign securities — 3,560.7 31.6 3,592.3 Residential mortgage-backed securities — 927.7 — 927.7 Commercial mortgage-backed securities — 1,368.3 7.5 1,375.8 Other asset-backed securities — 602.5 41.5 644.0 Redeemable preferred securities — 65.2 4.1 69.3 Total debt securities 1,198.4 20,079.3 144.1 21,421.8 Equity securities 1.8 — 18.1 19.9 Derivatives — .3 — .3 Total $ 1,200.2 $ 20,079.6 $ 162.2 $ 21,442.0 Liabilities: Derivatives $ — $ 53.4 $ — $ 53.4 |
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 June 30, 2015 and December 31, 2014 were as follows: Carrying Value Estimated Fair Value (Millions) Level 1 Level 2 Level 3 Total June 30, 2015 Assets: Mortgage loans $ 1,507.4 $ — $ — $ 1,557.7 $ 1,557.7 Bank loans 230.0 — 220.0 8.7 228.7 Equity securities (1) 34.9 N/A N/A N/A N/A Liabilities: Investment contract liabilities: With a fixed maturity 8.5 — — 8.5 8.5 Without a fixed maturity 518.0 — — 500.7 500.7 Long-term debt 7,840.1 — 8,137.3 — 8,137.3 December 31, 2014 Assets: Mortgage loans $ 1,562.2 $ — $ — $ 1,621.4 $ 1,621.4 Bank loans 231.2 — 217.6 9.4 227.0 Equity securities (1) 34.9 N/A N/A N/A N/A Liabilities: Investment contract liabilities: With a fixed maturity 16.6 — — 16.6 16.6 Without a fixed maturity 557.5 — — 551.5 551.5 Long-term debt 8,081.3 — 8,764.8 — 8,764.8 (1) It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies. |
Separate Account Financial Assets | Separate Accounts financial assets at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Debt securities $ 680.1 $ 2,654.6 $ 5.6 $ 3,340.3 $ 876.0 $ 2,495.0 $ 2.9 $ 3,373.9 Equity securities 180.5 5.6 — 186.1 173.3 5.7 — 179.0 Derivatives — .3 — .3 — .2 — .2 Common/collective trusts — 563.8 — 563.8 — 574.0 — 574.0 Total (1) $ 860.6 $ 3,224.3 $ 5.6 $ 4,090.5 $ 1,049.3 $ 3,074.9 $ 2.9 $ 4,127.1 (1) Excludes $200.8 million and $204.4 million of cash and cash equivalents and other receivables at June 30, 2015 and December 31, 2014 , respectively. |
Balance Sheet Offsetting Assets | Financial assets, including derivative assets, subject to offsetting and enforceable master netting arrangements as of June 30, 2015 and December 31, 2014 were as follows: Gross Amounts of Recognized Assets (1) Gross Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Received (Millions) Net Amount June 30, 2015 Derivatives $ .3 $ 11.2 $ — $ 11.5 Total $ .3 $ 11.2 $ — $ 11.5 December 31, 2014 Derivatives $ .3 $ 10.2 $ — $ 10.5 Total $ .3 $ 10.2 $ — $ 10.5 (1) There were no amounts offset in our balance sheets at June 30, 2015 or December 31, 2014 . |
Balance Sheet Offsetting Liabilities | Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of June 30, 2015 and December 31, 2014 were as follows: Gross Amounts of Recognized Liabilities (1) Gross Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Paid (Millions) Net Amount June 30, 2015 Derivatives $ 46.5 $ — $ (39.5 ) $ 7.0 Securities lending 543.7 (543.7 ) — — Total $ 590.2 $ (543.7 ) $ (39.5 ) $ 7.0 December 31, 2014 Derivatives $ 53.4 $ .9 $ (49.0 ) $ 5.3 Securities lending 826.9 (826.9 ) — — Repurchase agreements 201.7 — — 201.7 Total $ 1,082.0 $ (826.0 ) $ (49.0 ) $ 207.0 (1) There were no amounts offset in our balance sheets at June 30, 2015 or December 31, 2014 . |
Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block] | Our gross obligation with respect to investments pledged under our securities lending program as of June 30, 2015 is as follows: (Millions) Debt securities: U.S. government securities $ 43.1 States, municipalities and political subdivisions 4.5 U.S. corporate securities 305.6 Foreign securities 171.3 Redeemable preferred securities .2 Total investments pledged as collateral under securities lending program 524.7 Less: Gross amount of recognized liabilities under securities lending program 543.7 Amounts related to agreements not included in offsetting disclosure (1) $ (19.0 ) (1) Represents additional cash collateral posted by the borrower as described below. |
Pension and Other Postretirem33
Pension and Other Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014 were as follows: Pension Plans OPEB Plans Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Millions) 2015 2014 2015 2014 2015 2014 2015 2014 Amortization of prior service credit $ (.1 ) $ (.1 ) $ (.2 ) $ (.2 ) $ (.9 ) $ (.9 ) $ (1.8 ) $ (1.8 ) Interest cost 65.2 72.1 130.4 144.2 2.7 2.9 5.4 5.9 Expected return on plan assets (104.7 ) (105.5 ) (209.5 ) (211.1 ) (.7 ) (.8 ) (1.5 ) (1.6 ) Recognized net actuarial losses 15.4 11.6 30.8 23.3 .6 .3 1.3 .5 Net periodic benefit (income) cost $ (24.2 ) $ (21.9 ) $ (48.5 ) $ (43.8 ) $ 1.7 $ 1.5 $ 3.4 $ 3.0 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Carrying Value of Long-Term Debt | The carrying value of our long-term debt at June 30, 2015 and December 31, 2014 was as follows: (Millions) June 30, December 31, Senior notes, 6.125%, due 2015 (1) $ — $ 229.3 Senior notes, 5.95%, due 2017 410.4 418.3 Senior notes, 1.75%, due 2017 249.4 249.2 Senior notes, 1.5%, due 2017 498.9 498.6 Senior notes, 2.2%, due 2019 374.7 374.7 Senior notes, 3.95%, due 2020 745.6 745.2 Senior notes, 5.45%, due 2021 681.7 688.6 Senior notes, 4.125%, due 2021 495.9 495.5 Senior notes, 2.75%, due 2022 987.6 986.8 Senior notes, 3.5%, due 2024 747.1 746.9 Senior notes, 6.625%, due 2036 769.8 769.8 Senior notes, 6.75%, due 2037 530.8 530.7 Senior notes, 4.5%, due 2042 481.1 480.8 Senior notes, 4.125%, due 2042 493.0 492.8 Senior notes, 4.75%, due 2044 374.1 374.1 Total long-term debt 7,840.1 8,081.3 Less current portion of long-term debt — 229.3 Total long-term debt, less current portion $ 7,840.1 $ 7,852.0 (1) The 6.125% senior notes were repaid in January 2015. These notes were classified as current in the consolidated balance sheet as of December 31, 2014. |
Capital Stock (Tables)
Capital Stock (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Class of Stock Disclosures [Abstract] | |
Accelerated Share Repurchases | We completed the following accelerated share repurchase programs during the six months ended June 30, 2015 : Trade Date: Value of Repurchase Program (Millions) Repurchase Period Number of Shares Repurchased (Millions) December 15, 2014 $ 150.0 January and February 2015 1.6 March 2, 2015 100.0 April 2015 .9 |
Dividends declared | During the six months ended June 30, 2015 our Board declared the following cash dividends: Date Declared Dividend Amount Per Share Stockholders of Record Date Date Paid/ To be Paid Total Dividends (Millions) February 27, 2015 $ .25 April 9, 2015 April 24, 2015 $ 87.1 May 15, 2015 .25 July 16, 2015 July 31, 2015 87.1 |
Black Scholes option pricing model | The SARs granted to certain employees during first quarters of 2015 and 2014 had an estimated fair market value of $32.13 and $22.68 per unit, respectively. The fair value per unit was calculated on each respective grant date using a modified Black-Scholes option pricing model using the following assumptions during the first quarters of 2015 and 2014 : 2015 2014 Expected term (in years) 6.48 5.72 Volatility 33.4 % 35.8 % Risk-free interest rate 1.81 % 1.74 % Dividend yield 1.13 % 1.36 % Initial price $ 100.50 $ 72.26 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summarized financial information of segments | Summarized financial information of our segments for the three and six months ended June 30, 2015 and 2014 were as follows: (Millions) Health Care Group Insurance Large Case Pensions Corporate Financing Total Company Three Months Ended June 30, 2015 Revenue from external customers (1) $ 14,416.8 $ 565.6 $ 9.1 $ — $ 14,991.5 Operating earnings (loss) (2) 708.0 44.8 6.2 (36.9 ) 722.1 Three Months Ended June 30, 2014 Revenue from external customers $ 13,677.3 $ 556.0 $ 24.0 $ — $ 14,257.3 Operating earnings (loss) (2) 584.3 60.6 5.4 (40.3 ) 610.0 Six Months Ended June 30, 2015 Revenue from external customers (1) $ 28,702.6 $ 1,120.1 $ 21.9 $ — $ 29,844.6 Operating earnings (loss) (2) 1,543.6 88.7 8.3 (74.2 ) 1,566.4 Six Months Ended June 30, 2014 Revenue from external customers $ 26,808.7 $ 1,100.4 $ 70.3 $ — $ 27,979.4 Operating earnings (loss) (2) 1,303.3 101.8 10.2 (83.3 ) 1,332.0 (1) In the three months ended June 30, 2015, we received proceeds of $71.3 million ( $109.6 million pretax), net of legal costs, in connection with a litigation settlement. These net proceeds were recorded in fees and other revenue in our GAAP Consolidated Statements of Income. (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. |
Reconciliation of Operating Earnings to Net Income | A reconciliation of operating earnings (1) to net income attributable to Aetna for the three and six months ended June 30, 2015 and 2014 was as follows: Three Months Ended Six Months Ended June 30, June 30, (Millions) 2015 2014 2015 2014 Operating earnings (1) $ 722.1 $ 610.0 $ 1,566.4 $ 1,332.0 Transaction and integration-related costs, net of tax (21.4 ) (36.3 ) (52.1 ) (78.2 ) Litigation-related proceeds, net of tax 71.3 — 71.3 — Loss on early extinguishment of long-term debt, net of tax — — — (59.7 ) Release of litigation-related reserve, net of tax — — — 67.0 Amortization of other acquired intangible assets, net of tax (41.4 ) (40.3 ) (82.5 ) (80.7 ) Net realized capital gains, net of tax 1.2 15.4 6.2 33.9 Net income attributable to Aetna $ 731.8 $ 548.8 $ 1,509.3 $ 1,214.3 (1) In addition to net realized capital gains 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 $21.4 million ( $30.7 million pretax) and $52.1 million ( $76.3 million pretax) during the three and six months ended June 30, 2015 , respectively, related to the acquisitions of Coventry, InterGlobal and bswift, and transaction and integration-related costs of $36.3 million ( $55.8 million pretax) and $78.2 million ( $119.5 million pretax) during the three and six months ended June 30, 2014 , respectively, related to the acquisitions of Coventry and InterGlobal. 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. • In the three months ended June 30, 2015, we received proceeds of $71.3 million ( $109.6 million pretax), net of legal costs, in connection with a litigation settlement. These net proceeds were recorded in fees and other revenue in our GAAP Consolidated Statements of Income. • We incurred a loss on the early extinguishment of long-term debt of $59.7 million ( $91.9 million pretax) during the three months ended March 31, 2014 related to the redemption of our 6.0% senior notes due 2016. • We recorded a charge of $78.0 million ( $120.0 million pretax) during the three months ended December 31, 2012 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. During the three months ended March 31, 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 other general and administrative expenses by $67.0 million ( $103.0 million pretax) in the three months ended March 31, 2014. Refer to Note 14 beginning on page 31 for additional information on the termination of the settlement agreement. |
Discontinued Products (Tables)
Discontinued Products (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014 was as follows (pretax): (Millions) 2015 2014 Reserve, beginning of period $ 1,014.7 $ 979.5 Operating income 11.4 2.3 Net realized capital gains 63.6 12.6 Reserve, end of period $ 1,089.7 $ 994.4 |
Assets and Liabilities Supporting Discontinued Products | Assets and liabilities supporting discontinued products at June 30, 2015 and December 31, 2014 were as follows: (1) (Millions) 2015 2014 Assets: Debt and equity securities available for sale $ 2,242.1 $ 2,376.2 Mortgage loans 336.3 386.8 Other investments 652.5 662.2 Total investments 3,230.9 3,425.2 Other assets 119.4 112.9 Collateral received under securities loan agreements 116.5 200.7 Current and deferred income taxes 14.1 — Receivable from continuing products (2) 584.0 566.5 Total assets $ 4,064.9 $ 4,305.3 Liabilities: Future policy benefits $ 2,566.5 $ 2,645.8 Reserve for anticipated future losses on discontinued products 1,089.7 1,014.7 Collateral payable under securities loan agreements 116.5 200.7 Current and deferred income taxes — 27.9 Other liabilities (3) 292.2 416.2 Total liabilities $ 4,064.9 $ 4,305.3 (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. |
Proposed Acquisition (Details)
Proposed Acquisition (Details) - Jun. 30, 2015 | USD ($) |
Business Acquisition [Line Items] | |
Business Acquisition Estimated Purchase Price | $ 37,000,000,000 |
Cash To Be Received By Shareholders Upon Acquisition Per Share | $ 125 |
Exchange Ratio Used In Calculation Of Merger Consideration | 0.8375 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Net income attributable to Aetna | $ 731.8 | $ 548.8 | $ 1,509.3 | $ 1,214.3 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||
Weighted average shares used to compute basic EPS (in shares) | 349 | 356.8 | 349.2 | 359.2 | |
Dilutive effect of outstanding stock-based compensation awards (in shares) | 3.2 | 3.5 | 3.3 | 3.4 | |
Weighted average shares used to compute diluted EPS (in shares) | 352.2 | 360.3 | 352.5 | 362.6 | |
Basic EPS (in dollars per share) | $ 2.10 | $ 1.54 | $ 4.32 | $ 3.38 | |
Diluted EPS (in dollars per share) | $ 2.08 | $ 1.52 | $ 4.28 | $ 3.35 | |
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) | [1] | 0 | 0 | 0.9 | 0.7 |
Other Securities [Member] | |||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | [2] | 0.6 | 1.1 | 0.9 | 1.3 |
[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] | Performance stock units ("PSUs"), certain market stock units ("MSUs") with performance conditions, and performance stock appreciation rights ("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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Selling expenses | $ 405.7 | $ 413 | $ 820.6 | $ 815.8 | |||
General and administrative expenses: | |||||||
Salaries and related benefits | 1,216.4 | 1,118 | 2,423 | 2,237.5 | |||
Other general and administrative expenses | [1],[2] | 1,179.7 | 1,070.2 | 2,374.9 | 1,998.3 | ||
Total general and administrative expenses | [3] | 2,396.1 | 2,188.2 | 4,797.9 | 4,235.8 | ||
Total operating expenses | 2,801.8 | 2,601.2 | 5,618.5 | 5,051.6 | |||
Health Insurer Fee | 213.8 | 147.7 | 432.5 | 302.5 | |||
Contribution to ACA Reinsurance Program | 52.2 | 86.2 | 105.8 | 171.1 | |||
Litigation Settlement, Expense | $ 120 | ||||||
Release of litigation-related reserve, pre-tax | $ 103 | ||||||
General and administrative transaction and integration-related costs | $ 30.7 | $ 55.8 | $ 76.3 | $ 119.5 | |||
[1] | In the three months ended December 31, 2012, we recorded a charge of $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 three months ended March 31, 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 other general and administrative expenses by $103.0 million pretax in the three months ended March 31, 2014. Refer to Note 14 beginning on page 31 for additional information on the termination of the settlement agreement. | ||||||
[2] | The three and six months ended June 30, 2015 include estimated fees mandated by the ACA comprised primarily of the health insurer fee of $213.8 million and $432.5 million, respectively, and our estimated contribution to the funding of the reinsurance program of $52.2 million and $105.8 million, respectively. The three and six months ended June 30, 2014 include estimated fees mandated by the ACA comprised primarily of the health insurer fee of $147.7 million and $302.5 million, respectively, and our estimated contribution to the funding of the reinsurance program of $86.2 million and $171.1 million, respectively. | ||||||
[3] | The three and six months ended June 30, 2015 include $30.7 million and $76.3 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry Health Care, Inc. (“Coventry”), the InterGlobal group (“InterGlobal”) and bSwift LLC (“bswift”). The three and six months ended June 30, 2014 include $55.8 million and $119.5 million, respectively, of transaction and integration-related costs related to the acquisitions of Coventry and InterGlobal. |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Total Investments [Line Items] | ||
Current | $ 2,545.8 | $ 2,595.2 |
Long-term investments | 22,180.1 | 22,193.9 |
Total investments | 24,725.9 | 24,789.1 |
Available-for-sale Securities Pledged as Collateral | 0 | 202 |
Debt And Equity Securities Available For Sale [Member] | ||
Total Investments [Line Items] | ||
Current | 2,412.1 | 2,463.8 |
Long-term investments | 19,018.3 | 18,977.9 |
Total investments | 21,430.4 | 21,441.7 |
Mortgage Loans [Member] | ||
Total Investments [Line Items] | ||
Current | 130.2 | 124.2 |
Long-term investments | 1,377.2 | 1,438 |
Total investments | 1,507.4 | 1,562.2 |
Other Investments [Member] | ||
Total Investments [Line Items] | ||
Current | 3.5 | 7.2 |
Long-term investments | 1,784.6 | 1,778 |
Total investments | 1,788.1 | 1,785.2 |
Securities loaned agreements [Member] | ||
Total Investments [Line Items] | ||
Securities Loaned, Asset | $ 525 | $ 798 |
Investments - Debt and Equity S
Investments - Debt and Equity Securities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Non-credit related impairments previously recognized in other comprehensive income | $ 15.6 | $ 18.6 | |
Available-for-sale Securities, Amortized Cost Basis | [1] | 20,606.7 | 20,170.1 |
Available-for-sale Securities, Gross Unrealized Gains | [1] | 994.9 | 1,347.7 |
Available-for-sale Securities, Gross Unrealized Losses | [1] | (171.2) | (76.1) |
Available-for-sale Securities, Fair Value Disclosure | [1] | 21,430.4 | 21,441.7 |
Net Unrealized Capital (Loss) Gains | 2.8 | 3.6 | |
Supporting Discontinued And Experience Rated Products [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Gains | 273.3 | 391.3 | |
Available-for-sale Securities, Gross Unrealized Losses | (52.5) | (16.7) | |
Available-for-sale Securities, Fair Value Disclosure | 3,500 | 3,600 | |
Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 20,561 | 20,146.8 | |
Available-for-sale Securities, Gross Unrealized Gains | 992.9 | 1,347.3 | |
Available-for-sale Securities, Gross Unrealized Losses | (162.2) | (72.3) | |
Available-for-sale Securities, Fair Value Disclosure | 21,391.7 | 21,421.8 | |
US Government Agencies Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 1,669.4 | 1,301.2 | |
Available-for-sale Securities, Gross Unrealized Gains | 76.2 | 96.3 | |
Available-for-sale Securities, Gross Unrealized Losses | (0.6) | (0.6) | |
Available-for-sale Securities, Fair Value Disclosure | 1,745 | 1,396.9 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 4,625.3 | 4,540 | |
Available-for-sale Securities, Gross Unrealized Gains | 197.1 | 277.2 | |
Available-for-sale Securities, Gross Unrealized Losses | (30) | (7.8) | |
Available-for-sale Securities, Fair Value Disclosure | 4,792.4 | 4,809.4 | |
Domestic Corporate Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 8,040.2 | 8,033.2 | |
Available-for-sale Securities, Gross Unrealized Gains | 429.2 | 606.8 | |
Available-for-sale Securities, Gross Unrealized Losses | (86.4) | (33.6) | |
Available-for-sale Securities, Fair Value Disclosure | 8,383 | 8,606.4 | |
Foreign Corporate Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 3,235.6 | 3,343.6 | |
Available-for-sale Securities, Gross Unrealized Gains | 213.6 | 267 | |
Available-for-sale Securities, Gross Unrealized Losses | (32.1) | (18.3) | |
Available-for-sale Securities, Fair Value Disclosure | 3,417.1 | 3,592.3 | |
Residential Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 840 | 902.7 | |
Available-for-sale Securities, Gross Unrealized Gains | 21.9 | 28.9 | |
Available-for-sale Securities, Gross Unrealized Losses | (5.4) | (3.9) | |
Available-for-sale Securities, Fair Value Disclosure | 856.5 | 927.7 | |
Commercial Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 1,302.6 | 1,324.6 | |
Available-for-sale Securities, Gross Unrealized Gains | 37.9 | 52.8 | |
Available-for-sale Securities, Gross Unrealized Losses | [2] | (3.5) | (1.6) |
Available-for-sale Securities, Fair Value Disclosure | 1,337 | 1,375.8 | |
Other Asset-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 808.9 | 644.7 | |
Available-for-sale Securities, Gross Unrealized Gains | 6.7 | 5.8 | |
Available-for-sale Securities, Gross Unrealized Losses | [2] | (3.7) | (6.5) |
Available-for-sale Securities, Fair Value Disclosure | 811.9 | 644 | |
Redeemable Preferred Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 39 | 56.8 | |
Available-for-sale Securities, Gross Unrealized Gains | 10.3 | 12.5 | |
Available-for-sale Securities, Gross Unrealized Losses | (0.5) | 0 | |
Available-for-sale Securities, Fair Value Disclosure | 48.8 | 69.3 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 45.7 | 23.3 | |
Available-for-sale Securities, Gross Unrealized Gains | 2 | 0.4 | |
Available-for-sale Securities, Gross Unrealized Losses | (9) | (3.8) | |
Available-for-sale Securities, Fair Value Disclosure | $ 38.7 | $ 19.9 | |
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At June 30, 2015, debt and equity securities with a fair value of approximately $3.5 billion, gross unrealized capital gains of $273.3 million and gross unrealized capital losses of $52.5 million and, at December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 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 June 30, 2015 and December 31, 2014, we held securities for which we previously recognized $15.6 million and $18.6 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at June 30, 2015 and December 31, 2014 of $2.8 million and $3.6 million, respectively. |
Investments - Debt Securities b
Investments - Debt Securities by Maturity (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | ||
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | [1] | $ 21,430.4 | $ 21,441.7 |
Debt Securities [Member] | |||
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | 21,391.7 | 21,421.8 | |
Available-for-sale Securities With Established Maturities [Member] | |||
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Due To Mature Less Than One Year | 1,075 | ||
Due to mature one year through five years | 6,015.4 | ||
Due to mature after five years through ten years | 5,842.2 | ||
Due to mature greater than ten years | $ 5,453.7 | ||
Residential Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available For Sale Securities, Weighted Average Duration Of Securities | 4 years 33 days | ||
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | $ 856.5 | 927.7 | |
Commercial Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available For Sale Securities, Weighted Average Duration Of Securities | 2 years 44 days | ||
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | $ 1,337 | 1,375.8 | |
Other Asset-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available For Sale Securities, Weighted Average Duration Of Securities | 1 year 80 days | ||
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | $ 811.9 | $ 644 | |
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At June 30, 2015, debt and equity securities with a fair value of approximately $3.5 billion, gross unrealized capital gains of $273.3 million and gross unrealized capital losses of $52.5 million and, at December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. |
Investments - Unrealized Loss P
Investments - Unrealized Loss Position (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | [1] | $ 5,947 | $ 2,661.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | [1] | 144.6 | 41.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | [1] | 498.2 | 1,289 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | [1] | 26.6 | 34.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 6,445.2 | 3,950.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 171.2 | 76.1 |
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 | 1,000 | 402.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 52.5 | 16.7 | |
Debt Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,925.7 | 2,653.6 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 139.2 | 41.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 496.6 | 1,287.6 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 23 | 30.4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 6,422.3 | 3,941.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 162.2 | 72.3 |
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 | 1,016.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 45.9 | ||
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 | 5,405.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 116.3 | ||
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 | 379.8 | 20.6 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.2 | 0.1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 12.8 | 19.8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.4 | 0.5 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 392.6 | 40.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 0.6 | 0.6 |
US States and Political Subdivisions Debt Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,551.8 | 457.4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 26.1 | 2.2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 107.1 | 347.4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 3.9 | 5.6 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 1,658.9 | 804.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 30 | 7.8 |
Domestic Corporate Debt Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,501.9 | 1,074.1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 76.4 | 19.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 140.7 | 515.2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 10 | 13.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 2,642.6 | 1,589.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 86.4 | 33.6 |
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 | 849.6 | 540 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 27.7 | 12.8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 62.3 | 148 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 4.4 | 5.5 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 911.9 | 688 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 32.1 | 18.3 |
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 | 121.7 | 3.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 1.8 | 0.1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 101.2 | 166.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 3.6 | 3.8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 222.9 | 170.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 5.4 | 3.9 |
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 | 232.6 | 181.5 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 3.2 | 0.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 28.5 | 69 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.3 | 0.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 261.1 | 250.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 3.5 | 1.6 |
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 | 282.9 | 373.1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 3.3 | 6.1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 44 | 21.3 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.4 | 0.4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 326.9 | 394.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 3.7 | 6.5 |
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 | 5.4 | 3 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.5 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 5.4 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 0.5 | 0 |
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 | 21.3 | 8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 5.4 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1.6 | 1.4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 3.6 | 3.8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 22.9 | 9.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | $ 9 | $ 3.8 |
[1] | At June 30, 2015 and December 31, 2014, debt and equity securities in an unrealized capital loss position of $52.5 million and $16.7 million, respectively, and with related fair value of $1.0 billion and $402.7 million, respectively, related to experience-rated and discontinued products. |
Investments - Unrealized Loss45
Investments - Unrealized Loss Position Maturities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | $ 171.2 | $ 76.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 6,445.2 | 3,950.6 |
Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | [1] | 162.2 | 72.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | [1] | 6,422.3 | 3,941.2 |
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 | 116.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,405.9 | ||
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 | 52.5 | 16.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,000 | $ 402.7 | |
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 | 45.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,016.4 | ||
Maturing in Less than one Year [Member] | Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 69.1 | ||
Maturing in Less than one Year [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 69.1 | ||
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 | 9.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,352.9 | ||
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 | 8.8 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,304.9 | ||
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 | 0.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 48 | ||
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 | 49.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,399.2 | ||
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 | 39.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,965.1 | ||
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 | 10.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 434.1 | ||
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 | 90.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,790.2 | ||
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 | 57 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,305.1 | ||
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 | 33.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 485.1 | ||
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 | 5.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 222.9 | ||
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 | 5.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 222.9 | ||
Residential Mortgage Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 0 | ||
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 | 3.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 261.1 | ||
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 | 211.9 | ||
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 | 1.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 49.2 | ||
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 | 3.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 326.9 | ||
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 | 3.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 326.9 | ||
Other Asset-Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 0 | ||
[1] | At June 30, 2015 and December 31, 2014, debt and equity securities in an unrealized capital loss position of $52.5 million and $16.7 million, respectively, and with related fair value of $1.0 billion and $402.7 million, respectively, related to experience-rated and discontinued products. |
Investments - Realized Gains (D
Investments - Realized Gains (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
OTTI losses on debt securities recognized in earnings | $ (7.6) | $ (0.1) | $ (10) | $ (0.3) |
Net realized capital gains (losses), excluding OTTI losses on securities | 9.6 | 23.9 | 20.1 | 52.6 |
Net realized capital gains (losses) | 2 | 23.8 | 10.1 | 52.3 |
Debt Securities [Member] | ||||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Proceeds On Sales | 1,545.3 | 930.9 | 2,491.2 | 2,023.7 |
Gross Realized Capital Gains | 20.7 | 19.9 | 45.6 | 44.5 |
Gross Realized Capital Losses | $ 13.6 | $ 9 | $ 22.4 | $ 22 |
Investments - Mortgage Loans (D
Investments - Mortgage Loans (Details) - Commercial Real Estate [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
New Mortgage Loans | $ 24.4 | $ 107 | $ 37.1 | $ 140.9 | |
Mortgage loans fully repaid | 19.5 | 36.8 | 59 | 56.6 | |
Mortgage Loans on Real Estate | 1,507.4 | 1,507.4 | $ 1,562.2 | ||
Mortgage Loans on Real Estate, Foreclosures | 0 | $ 0 | 9 | $ 0 | |
Category 1 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | 57.6 | 57.6 | 59.7 | ||
Category 2 to 4 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | 1,426.9 | 1,426.9 | 1,443.4 | ||
Category 5 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | 22.9 | 22.9 | 31.2 | ||
Categories 6 and 7 [Member] | |||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Mortgage Loans on Real Estate | $ 0 | $ 0 | $ 27.9 |
Investments - Variable Interest
Investments - Variable Interest Entities and Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||||||
Long-term investments | $ 22,180.1 | $ 22,180.1 | $ 22,193.9 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 61.2 | 61.2 | 69.2 | |||
Noncontrolling Interest [Abstract] | ||||||
Net income (loss) attributable to non-controlling interest | 2.8 | $ (1.6) | 1.6 | $ 2.3 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||||||
Long-term investments | 211 | 211 | 209 | |||
Real Estate Partnerships [Member] | ||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||||||
Variable Interest Entity Assets | 6,100 | 6,100 | 5,700 | |||
Hedge Fund Partnerships [Member] | ||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||||||
Variable Interest Entity Assets | 7,000 | 7,000 | 7,100 | |||
Noncontrolling Interest [Member] | ||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 61.2 | $ 57 | 61.2 | 57 | $ 69.2 | $ 52.7 |
Noncontrolling Interest [Abstract] | ||||||
Net income (loss) attributable to non-controlling interest | $ 1.6 | $ 2.3 |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net income (loss) attributable to non-controlling interest | $ 2.8 | $ (1.6) | $ 1.6 | $ 2.3 | |
Gross investment income | 261.6 | 237.6 | 503.8 | 489.7 | |
Investment expenses | (14.2) | (9.3) | (23.5) | (17.2) | |
Net Investment Income | [1] | 247.4 | 228.3 | 480.3 | 472.5 |
Supporting Discontinued And Experience Rated Products [Member] | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net Investment Income | 74.8 | 63.5 | 141.4 | 143.9 | |
Debt Securities [Member] | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income | 201.3 | 198.2 | 397.7 | 396.3 | |
Mortgage Loans [Member] | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income | 21.7 | 34.1 | 43.6 | 58 | |
Other Investments [Member] | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Gross investment income | $ 38.6 | $ 5.3 | $ 62.5 | $ 35.4 | |
[1] | Net investment income includes $74.8 million and $141.4 million for the three and six months ended June 30, 2015, respectively, and $63.5 million and $143.9 million for the three and six months ended June 30, 2014, respectively, related to investments supporting our experience-rated and discontinued products. |
Health Care Reform (Details)
Health Care Reform (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Reinsurance Recoverable Under Health Care Reform | $ 457.3 | $ 337.6 |
Net health care reform risk adjustment payable (receivable) | 679.8 | 230 |
Health care reform risk corridor net | (6.2) | (9.6) |
Current [Member] | ||
Reinsurance Recoverable Under Health Care Reform | 359.2 | 337.6 |
Net health care reform risk adjustment payable (receivable) | 335.6 | 230 |
Health care reform risk corridor net | (6.2) | (9.6) |
Long-term [Member] | ||
Reinsurance Recoverable Under Health Care Reform | 98.1 | 0 |
Net health care reform risk adjustment payable (receivable) | 344.2 | 0 |
Health care reform risk corridor net | $ 0 | $ 0 |
Other Comprehensive (Loss) In51
Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ (1,111.3) | ||||
Other comprehensive (loss) income | $ (240) | $ 130.3 | (161.8) | $ 256 | |
Balance at end of period | (1,273.1) | (1,273.1) | |||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | |||||
Comprehensive Income Loss [Line Items] | |||||
Net unrealized gains (losses) | [1] | (4) | 3.3 | ||
Net unrealized gains (losses) on securities, reclassification of gains to earnings | [1],[2] | (6.4) | (2) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | [1] | 34.9 | 34.2 | ||
Other comprehensive (loss) income | [1] | (10.4) | 1.3 | ||
Balance at end of period | [1] | 24.5 | 35.5 | 24.5 | 35.5 |
Net Unrealized Gains (Losses) All Other Securities [Member] | |||||
Comprehensive Income Loss [Line Items] | |||||
Net unrealized gains (losses) | (202) | 276 | |||
Net unrealized gains (losses) on securities, reclassification of gains to earnings | [2] | 25.6 | (1.2) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 568 | 326.8 | |||
Other comprehensive (loss) income | (176.4) | 274.8 | |||
Balance at end of period | 391.6 | 601.6 | 391.6 | 601.6 | |
Net Unrealized Gains (Losses) Foreign Currency And Derivatives [Member] | |||||
Comprehensive Income Loss [Line Items] | |||||
Net unrealized gains (losses) | 3.5 | (25) | |||
Foreign currency and derivatives reclassification of losses to earnings | [3] | 1.9 | (9.2) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (60.9) | 0.4 | |||
Other comprehensive (loss) income | 5.4 | (34.2) | |||
Balance at end of period | (55.5) | (33.8) | (55.5) | (33.8) | |
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 | |||
Less: amortization of net actuarial losses | [4] | 20.9 | 15.4 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (1,670.9) | (1,293.8) | |||
Other comprehensive (loss) income | 20.9 | 15.4 | |||
Balance at end of period | (1,650) | (1,278.4) | (1,650) | (1,278.4) | |
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 | [4] | (1.3) | (1.3) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 17.6 | 20.3 | |||
Other comprehensive (loss) income | (1.3) | (1.3) | |||
Balance at end of period | 16.3 | 19 | 16.3 | 19 | |
Accumulated Other Comprehensive Loss [Member] | |||||
Comprehensive Income Loss [Line Items] | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (202.5) | 254.3 | |||
Other Comprehensive Income Loss Net Of Tax Reclassification To Earnings | 40.7 | 1.7 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (1,111.3) | (912.1) | |||
Other comprehensive (loss) income | (161.8) | 256 | |||
Balance at end of period | $ (1,273.1) | $ (656.1) | $ (1,273.1) | $ (656.1) | |
[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 six months ended June 30, 2015 or 2014. Refer to Note 11 of Condensed Notes to Consolidated Financial Statements beginning on page 26 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 10 of Condensed Notes to Consolidated Financial Statements beginning on page 26 for additional information. |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gross transfers out of level 3 | $ (33,200,000) | $ (33,200,000) | ||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | [1] | 21,430,400,000 | 21,430,400,000 | $ 21,441,700,000 | ||
Debt Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 21,391,700,000 | 21,391,700,000 | 21,421,800,000 | |||
US Government Agencies Debt Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 1,745,000,000 | 1,745,000,000 | 1,396,900,000 | |||
US States and Political Subdivisions Debt Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 4,792,400,000 | 4,792,400,000 | 4,809,400,000 | |||
Domestic Corporate Debt Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 8,383,000,000 | 8,383,000,000 | 8,606,400,000 | |||
Foreign Corporate Debt Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 3,417,100,000 | 3,417,100,000 | 3,592,300,000 | |||
Residential Mortgage Backed Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 856,500,000 | 856,500,000 | 927,700,000 | |||
Commercial Mortgage Backed Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 1,337,000,000 | 1,337,000,000 | 1,375,800,000 | |||
Other Asset-Backed Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 811,900,000 | 811,900,000 | 644,000,000 | |||
Redeemable Preferred Stock [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 48,800,000 | 48,800,000 | 69,300,000 | |||
Equity Securities [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 38,700,000 | 38,700,000 | 19,900,000 | |||
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 | 1,582,500,000 | 1,582,500,000 | 1,200,200,000 | |||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Liabilities | 46,500,000 | 46,500,000 | 53,400,000 | |||
Assets, Fair Value Disclosure [Abstract] | ||||||
Derivative Assets | 300,000 | 300,000 | 300,000 | |||
Assets, Fair Value Disclosure | 19,700,600,000 | 19,700,600,000 | 20,079,600,000 | |||
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 | 147,600,000 | 147,600,000 | 162,200,000 | |||
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 | 46,500,000 | 46,500,000 | 53,400,000 | |||
Assets, Fair Value Disclosure [Abstract] | ||||||
Derivative Assets | 300,000 | 300,000 | 300,000 | |||
Assets, Fair Value Disclosure | 21,430,700,000 | 21,430,700,000 | 21,442,000,000 | |||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 1 [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 1,560,100,000 | 1,560,100,000 | 1,198,400,000 | |||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 2 [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 19,700,300,000 | 19,700,300,000 | 20,079,300,000 | |||
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | Level 3 [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 131,300,000 | 131,300,000 | 144,100,000 | |||
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 | 21,391,700,000 | 21,391,700,000 | 21,421,800,000 | |||
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 | 1,560,100,000 | 1,560,100,000 | 1,198,400,000 | |||
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Level 2 [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 184,900,000 | 184,900,000 | 198,500,000 | |||
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 | 1,745,000,000 | 1,745,000,000 | 1,396,900,000 | |||
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 | 4,791,300,000 | 4,791,300,000 | 4,808,200,000 | |||
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 | 1,100,000 | 1,100,000 | 1,200,000 | |||
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 | 4,792,400,000 | 4,792,400,000 | 4,809,400,000 | |||
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 | 8,319,400,000 | 8,319,400,000 | 8,548,200,000 | |||
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 | 63,600,000 | 63,600,000 | 58,200,000 | |||
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 | 8,383,000,000 | 8,383,000,000 | 8,606,400,000 | |||
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 | 3,391,600,000 | 3,391,600,000 | 3,560,700,000 | |||
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 | 25,500,000 | 25,500,000 | 31,600,000 | |||
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 | 3,417,100,000 | 3,417,100,000 | 3,592,300,000 | |||
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 | 856,500,000 | 856,500,000 | 927,700,000 | |||
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 | 856,500,000 | 856,500,000 | 927,700,000 | |||
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 | 1,324,300,000 | 1,324,300,000 | 1,368,300,000 | |||
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 | 12,700,000 | 12,700,000 | 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 | 1,337,000,000 | 1,337,000,000 | 1,375,800,000 | |||
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 | 787,600,000 | 787,600,000 | 602,500,000 | |||
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 | 24,300,000 | 24,300,000 | 41,500,000 | |||
Fair Value, Measurements, Recurring [Member] | Other Asset-Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 811,900,000 | 811,900,000 | 644,000,000 | |||
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 | 44,700,000 | 44,700,000 | 65,200,000 | |||
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 | 48,800,000 | 48,800,000 | 69,300,000 | |||
Fair Value, Measurements, Recurring [Member] | Brokered Securities [Member] | Level 3 [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 105,000,000 | 105,000,000 | 126,000,000 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Level 1 [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 22,400,000 | 22,400,000 | 1,800,000 | |||
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 | 16,300,000 | 16,300,000 | 18,100,000 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||||
Assets, Fair Value Disclosure [Abstract] | ||||||
Available-for-sale Securities, Fair Value Disclosure | 38,700,000 | 38,700,000 | 19,900,000 | |||
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 | 220,000,000 | 220,000,000 | 217,600,000 | |||
Investment contracts with a fixed maturity | 0 | 0 | 0 | |||
Investment contracts without a fixed maturity | 0 | 0 | 0 | |||
Long-term debt | 8,137,300,000 | 8,137,300,000 | 8,764,800,000 | |||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans | 1,557,700,000 | 1,557,700,000 | 1,621,400,000 | |||
Bank loans | 8,700,000 | 8,700,000 | 9,400,000 | |||
Investment contracts with a fixed maturity | 8,500,000 | 8,500,000 | 16,600,000 | |||
Investment contracts without a fixed maturity | 500,700,000 | 500,700,000 | 551,500,000 | |||
Long-term debt | 0 | 0 | 0 | |||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans | 1,557,700,000 | 1,557,700,000 | 1,621,400,000 | |||
Bank loans | 228,700,000 | 228,700,000 | 227,000,000 | |||
Investment contracts with a fixed maturity | 8,500,000 | 8,500,000 | 16,600,000 | |||
Investment contracts without a fixed maturity | 500,700,000 | 500,700,000 | 551,500,000 | |||
Long-term debt | 8,137,300,000 | 8,137,300,000 | 8,764,800,000 | |||
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 | 1,507,400,000 | 1,507,400,000 | 1,562,200,000 | |||
Bank loans | 230,000,000 | 230,000,000 | 231,200,000 | |||
Equity Securities (Cost Method) | [2] | 34,900,000 | 34,900,000 | 34,900,000 | ||
Investment contracts with a fixed maturity | 8,500,000 | 8,500,000 | 16,600,000 | |||
Investment contracts without a fixed maturity | 518,000,000 | 518,000,000 | 557,500,000 | |||
Long-term debt | $ 7,840,100,000 | $ 7,840,100,000 | $ 8,081,300,000 | |||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 17 beginning on page 36 for additional information on our accounting for discontinued products). At June 30, 2015, debt and equity securities with a fair value of approximately $3.5 billion, gross unrealized capital gains of $273.3 million and gross unrealized capital losses of $52.5 million and, at December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. | |||||
[2] | It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies. |
Financial Instruments - Separat
Financial Instruments - Separate Accounts Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Separate Account Assets | $ 4,291.3 | $ 4,331.5 | |
Fair Value, Measurements, Recurring [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Separate Account Assets | [1] | 4,090.5 | 4,127.1 |
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] | 860.6 | 1,049.3 |
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] | 3,224.3 | 3,074.9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Separate Account Assets | [1] | 5.6 | 2.9 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Separate Account Assets | 680.1 | 876 | |
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 | 2,654.6 | 2,495 | |
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 | 5.6 | 2.9 | |
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 | 3,340.3 | 3,373.9 | |
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 | 180.5 | 173.3 | |
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 | 5.6 | 5.7 | |
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 | |
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 | 186.1 | 179 | |
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 | |
Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Separate Account Assets | 0.3 | 0.2 | |
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 | |
Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Separate Account Assets | 0.3 | 0.2 | |
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 | |
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 | 563.8 | 574 | |
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 | |
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 | 563.8 | 574 | |
Cash and Cash Equivalents [Member] | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Separate Account Assets | $ 200.8 | $ 204.4 | |
[1] | Excludes $200.8 million and $204.4 million of cash and cash equivalents and other receivables at June 30, 2015 and December 31, 2014, respectively. |
Financial Instruments - Balance
Financial Instruments - Balance Sheet Offsetting (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | $ 0.3 | $ 0.3 |
Derivative, Collateral, Obligation to Return Securities | 11.2 | 10.2 | |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 11.5 | 10.5 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Gross | [1] | 0.3 | 0.3 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Securities | 11.2 | 10.2 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Cash | 0 | 0 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Amount Offset Against Collateral | 11.5 | 10.5 | |
Securities Loaned, Gross | [2] | 543.7 | 826.9 |
Securities Borrowed, Collateral, Obligation to Return Securities | (543.7) | (826.9) | |
Securities Borrowed, Collateral, Obligation to Return Cash | 0 | 0 | |
Securities Loaned, Amount Offset Against Collateral | 0 | 0 | |
Securities Sold under Agreements to Repurchase, Gross | [2] | 201.7 | |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | 0 | ||
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | 0 | ||
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 201.7 | ||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | [2] | 590.2 | 1,082 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | (543.7) | (826) | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | (39.5) | (49) | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Amount Offset Against Collateral | 7 | 207 | |
Derivative Liability, Fair Value, Gross Liability | [2] | 46.5 | 53.4 |
Derivative, Collateral, Right to Reclaim Securities | 0 | 0.9 | |
Derivative, Collateral, Right to Reclaim Cash | (39.5) | (49) | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 7 | $ 5.3 | |
[1] | There were no amounts offset in our balance sheets at June 30, 2015 or December 31, 2014. | ||
[2] | There were no amounts offset in our balance sheets at June 30, 2015 or December 31, 2014. |
Financial Instruments - Securit
Financial Instruments - Securities Lending Program (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash Collateral Percentage Minimum | 102.00% | |
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | $ 524.7 | |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 543.7 | |
Secured Borrowings, Gross, Difference, Amount | [1] | $ (19) |
Cash Collateral Percentage Maximum | 105.00% | |
US Government Agencies Debt Securities [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | $ 43.1 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | 4.5 | |
Domestic Corporate Debt Securities [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | 305.6 | |
Foreign Corporate Debt Securities [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | 171.3 | |
Redeemable Preferred Stock [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | $ 0.2 | |
[1] | Represents additional cash collateral posted by the borrower as described below. |
Pension and Other Postretirem56
Pension and Other Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Amortization of prior service credit | $ (0.1) | $ (0.1) | $ (0.2) | $ (0.2) |
Interest cost | 65.2 | 72.1 | 130.4 | 144.2 |
Expected Return on Plan Assets | (104.7) | (105.5) | (209.5) | (211.1) |
Amortization of net actuarial losses | 15.4 | 11.6 | 30.8 | 23.3 |
Net periodic benefit (income) cost | (24.2) | (21.9) | (48.5) | (43.8) |
OPEB Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Amortization of prior service credit | (0.9) | (0.9) | (1.8) | (1.8) |
Interest cost | 2.7 | 2.9 | 5.4 | 5.9 |
Expected Return on Plan Assets | (0.7) | (0.8) | (1.5) | (1.6) |
Amortization of net actuarial losses | 0.6 | 0.3 | 1.3 | 0.5 |
Net periodic benefit (income) cost | $ 1.7 | $ 1.5 | $ 3.4 | $ 3 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank, Maximum Amount Available | $ 851 | |||
Federal Home Loan Bank, Amount Outstanding | 0 | $ 0 | ||
Long-term Debt | 7,840.1 | 8,081.3 | ||
Current portion of long-term debt | 0 | 229.3 | ||
Short-term debt | 0 | 500 | ||
Long-term debt, less current portion | 7,840.1 | 7,852 | ||
Line of Credit Facility, Maximum Amount Outstanding During Period | 0 | $ 0 | ||
Senior Notes, 6.125%, Due 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | [1] | $ 0 | $ 229.3 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | 6.125% | ||
Senior Notes, 5.95%, Due 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 410.4 | $ 418.3 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | ||
Senior Notes, 1.75%, Due 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 249.4 | $ 249.2 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | 1.75% | ||
Senior Notes, 1.5%, Due 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 498.9 | $ 498.6 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | ||
Senior Notes, 2.2%, Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 374.7 | $ 374.7 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.20% | 2.20% | ||
Senior Notes, 3.95%, Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 745.6 | $ 745.2 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | ||
Senior Notes, 5.45%, Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 681.7 | $ 688.6 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.45% | 5.45% | ||
Senior Notes, 4.125%, Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 495.9 | $ 495.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | ||
Senior Notes, 2.75%, Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 987.6 | $ 986.8 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | 2.75% | ||
Senior notes, 3.5%, due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 747.1 | $ 746.9 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | ||
Senior Notes, 6.625%, Due 2036 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 769.8 | $ 769.8 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | ||
Senior Notes, 6.75%, Due 2037 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 530.8 | $ 530.7 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | 6.75% | ||
Senior Notes, 4.5%, Due 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 481.1 | $ 480.8 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||
Senior Notes, 4.125%, Due 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 493 | $ 492.8 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | ||
Senior Notes, 4.75%, Due 2044 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 374.1 | $ 374.1 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | ||
March 2014 Cash Flow Hedge [Domain] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Notional Amount | $ 500 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 46 | |||
[1] | The 6.125% senior notes were repaid in January 2015. These notes were classified as current in the consolidated balance sheet as of December 31, 2014. |
Debt - Short-term Debt (Details
Debt - Short-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Commercial Paper | $ 0 | $ 500 |
Commercial Paper, Weighted Average Interest Rate | 0.30% |
Debt - Line of Credit (Details)
Debt - Line of Credit (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Line of Credit Facility [Line Items] | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 2,000 |
Additional Credit Facility | 500 |
Maximum Amount Of Letters Of Credit Issuable | $ 200 |
Facility fee (in hundredths) | 0.10% |
Expected Proceeds From Issuance Of Long Term Debt | $ 13,000 |
Line Of Credit Borrowing Capacity Under Bridge Credit Agreement | 13,000 |
Amount Of Cash Proceeds From Asset Sales | 300 |
Term Loan Principal | 3,200 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 2,000 |
Level the debt to capitalization must be below under the facility agreement | 50.00% |
Minimum [Member] | Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Facility fee (in hundredths) | 0.05% |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 3,000 |
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 | $ 1,500 |
Bridge Loan [Member] | |
Line of Credit Facility [Line Items] | |
Level the debt to capitalization must be at or below under the bridge agreement | 0.5 |
Interest Rate On Bridge Credit Agreement Federal Funds | 0.50% |
Interest Rate On Bridge Credit Agreement Libor | 1.00% |
Margin increase 90 days after closing | 0.25% |
Duration Fee - 90 days | 0.50% |
Duration Fee - 180 days | 0.75% |
Duration Fee - 270 days | 1.00% |
Bridge Loan [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR Margins | 0.75% |
Base Rate Margins | 0.00% |
Bridge Loan [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR Margins | 1.25% |
Base Rate Margins | 0.25% |
Term Loan [Member] | |
Line of Credit Facility [Line Items] | |
Interest Rate On Bridge Credit Agreement Federal Funds | 0.50% |
Interest Rate On Bridge Credit Agreement Libor | 1.00% |
Level the debt to capitalization must be at or below under the term loan agreement | 0.5 |
Term Loan [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR Margins | 0.75% |
Base Rate Margins | 0.00% |
Term Loan [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR Margins | 1.50% |
Base Rate Margins | 0.50% |
Capital Stock - Repurchases (De
Capital Stock - Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 1,000 | ||
Stock Repurchased During Period, Shares | 3 | |||
Stock Repurchased During Period, Value | $ 296.3 | $ 720.1 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 1,100 | |||
Treasury Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 296 | |||
January/February Accelerated Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 1.6 | |||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 150 | |||
April Accelerated Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 0.9 | |||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 100 |
Capital Stock - Dividends (Deta
Capital Stock - Dividends (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Dividends Amount Per Share | $ 0.25 | $ 0.25 |
Dividends | $ 87,100,000 | $ 87,100,000 |
Maximum Value of Dividends Declared | $ 0.25 |
Capital Stock - Stock Units (De
Capital Stock - Stock Units (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2015 | 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% | |
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 | 0.3 | |
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 | 1.1 | |
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 | 1.9 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | |
Estimated Fair Market Value (per unit) | $ 32.13 | $ 22.68 |
Expected Term (in years) | 6 years 175 days | 5 years 263 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 33.40% | 35.80% |
Risk Free Interest Rate | 1.81% | 1.74% |
Dividend Yield | 1.13% | 1.36% |
Initial Price | $ 100.50 | $ 72.26 |
Dividend Restrictions and Sta63
Dividend Restrictions and Statutory Surplus (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Dividend Restrictions and Statutory Surplus [Line Items] | ||
Maximum Value of Dividends Declared | $ 0.25 | |
Insurance and HMO [Member] | ||
Dividend Restrictions and Statutory Surplus [Line Items] | ||
Dividends available | 1,000,000,000 | |
Proceeds from dividends received | 527,000,000 | |
Statutory capital and surplus | $ 9,200,000,000 | $ 9,400,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Revenue from external customers | $ 14,991.5 | [1] | $ 14,257.3 | $ 29,844.6 | [1] | $ 27,979.4 | |
Operating Earnings | [2],[3] | 722.1 | 610 | 1,566.4 | 1,332 | ||
Litigation-related proceeds, net of tax | 71.3 | 0 | 71.3 | 0 | |||
Litigation-related proceeds, before tax | 109.6 | ||||||
Health Care [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Revenue from external customers | 14,416.8 | [1] | 13,677.3 | 28,702.6 | [1] | 26,808.7 | |
Operating Earnings | [3] | 708 | 584.3 | 1,543.6 | 1,303.3 | ||
Group Insurance [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Revenue from external customers | 565.6 | [1] | 556 | 1,120.1 | [1] | 1,100.4 | |
Operating Earnings | [3] | 44.8 | 60.6 | 88.7 | 101.8 | ||
Large Case Pension [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Revenue from external customers | 9.1 | [1] | 24 | 21.9 | [1] | 70.3 | |
Operating Earnings | [3] | 6.2 | 5.4 | 8.3 | 10.2 | ||
Corporate Financing [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Revenue from external customers | 0 | [1] | 0 | 0 | [1] | 0 | |
Operating Earnings | [3] | $ (36.9) | $ (40.3) | $ (74.2) | $ (83.3) | ||
[1] | In the three months ended June 30, 2015, we received proceeds of $71.3 million ($109.6 million pretax), net of legal costs, in connection with a litigation settlement. These net proceeds were recorded in fees and other revenue in our GAAP Consolidated Statements of Income. | ||||||
[2] | In addition to net realized capital gains 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 $21.4 million ($30.7 million pretax) and $52.1 million ($76.3 million pretax) during the three and six months ended June 30, 2015, respectively, related to the acquisitions of Coventry, InterGlobal and bswift, and transaction and integration-related costs of $36.3 million ($55.8 million pretax) and $78.2 million ($119.5 million pretax) during the three and six months ended June 30, 2014, respectively, related to the acquisitions of Coventry and InterGlobal. 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. •In the three months ended June 30, 2015, we received proceeds of $71.3 million ($109.6 million pretax), net of legal costs, in connection with a litigation settlement. These net proceeds were recorded in fees and other revenue in our GAAP Consolidated Statements of Income.•We incurred a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax) during the three months ended March 31, 2014 related to the redemption of our 6.0% senior notes due 2016. •We recorded a charge of $78.0 million ($120.0 million pretax) during the three months ended December 31, 2012 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. During the three months ended March 31, 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 other general and administrative expenses by $67.0 million ($103.0 million pretax) in the three months ended March 31, 2014. Refer to Note 14 beginning on page 31 for additional information on the termination of the settlement agreement. | ||||||
[3] | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation below. |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Earnings (Details) - Segment Reporting [Domain] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reconciliation [Abstract] | |||||||
Operating Earnings | [1],[2] | $ 722.1 | $ 610 | $ 1,566.4 | $ 1,332 | ||
Transaction and integration-related costs, after-tax | (21.4) | (36.3) | (52.1) | (78.2) | |||
Litigation-related proceeds, net of tax | 71.3 | 0 | 71.3 | 0 | |||
Transaction and integration-related costs, net of tax | 30.7 | 55.8 | 76.3 | 119.5 | |||
Loss on early extinguishment of debt, net of tax | 0 | 0 | $ (59.7) | 0 | (59.7) | ||
Release of litigation-related reserve, net of tax | 0 | 0 | 0 | 67 | |||
Amortization of other acquired intangible assets, net of tax | (41.4) | (40.3) | (82.5) | (80.7) | |||
Net realized capital gains (losses), net of tax | 1.2 | 15.4 | 6.2 | 33.9 | |||
Net income attributable to Aetna | 731.8 | 548.8 | 1,509.3 | 1,214.3 | |||
Loss on early extinguishment of long-term debt | 0 | $ 0 | 91.9 | $ 0 | $ 91.9 | ||
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 | ||||||
Litigation-related proceeds, before tax | $ 109.6 | ||||||
Senior Notes, 6.0%, Due 2016 [Member] | |||||||
Segment Reconciliation [Abstract] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||
[1] | In addition to net realized capital gains 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 $21.4 million ($30.7 million pretax) and $52.1 million ($76.3 million pretax) during the three and six months ended June 30, 2015, respectively, related to the acquisitions of Coventry, InterGlobal and bswift, and transaction and integration-related costs of $36.3 million ($55.8 million pretax) and $78.2 million ($119.5 million pretax) during the three and six months ended June 30, 2014, respectively, related to the acquisitions of Coventry and InterGlobal. 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. •In the three months ended June 30, 2015, we received proceeds of $71.3 million ($109.6 million pretax), net of legal costs, in connection with a litigation settlement. These net proceeds were recorded in fees and other revenue in our GAAP Consolidated Statements of Income.•We incurred a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax) during the three months ended March 31, 2014 related to the redemption of our 6.0% senior notes due 2016. •We recorded a charge of $78.0 million ($120.0 million pretax) during the three months ended December 31, 2012 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. During the three months ended March 31, 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 other general and administrative expenses by $67.0 million ($103.0 million pretax) in the three months ended March 31, 2014. Refer to Note 14 beginning on page 31 for additional information on the termination of the settlement agreement. | ||||||
[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. |
Reinsurance (Details)
Reinsurance (Details) $ in Millions | Jan. 31, 2015USD ($) |
Reinsurance Disclosures [Abstract] | |
Collateralized excess of loss on resinsurance coverage | $ 200 |
Discontinued Products (Details)
Discontinued Products (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||||
Assets: | |||||||||
Investments | $ 24,725.9 | $ 24,789.1 | |||||||
Collateral received under securities loan agreements | 543.7 | 826.9 | |||||||
Total assets | 54,641.1 | 53,402.1 | |||||||
Liabilities: | |||||||||
Policyholders' funds | 1,114.4 | 1,163.2 | |||||||
Total liabilities | 39,173.3 | 38,850.3 | |||||||
Discontinued Products [Member] | |||||||||
Reserve For Discontinued Products [Roll Forward] | |||||||||
Reserve, beginning of period | $ 1,014.7 | [1] | $ 979.5 | ||||||
Operating income (loss) | 11.4 | 2.3 | |||||||
Net realized capital gains | 63.6 | 12.6 | |||||||
Reserve, end of period | 1,089.7 | [1] | $ 994.4 | 1,089.7 | [1] | 994.4 | |||
Assets: | |||||||||
Investments | [1] | 3,230.9 | 3,425.2 | ||||||
Other Assets | [1] | 119.4 | 112.9 | ||||||
Collateral received under securities loan agreements | [1] | 116.5 | 200.7 | ||||||
Current And Deferred Income Taxes | [1] | 14.1 | 0 | ||||||
Receivable from continuing products | [1],[2] | 584 | 566.5 | ||||||
Total assets | [1] | 4,064.9 | 4,305.3 | ||||||
Liabilities: | |||||||||
Future Policy Benefits | [1] | 2,566.5 | 2,645.8 | ||||||
Reserve for anticipated future losses on discontinued products | 1,089.7 | [1] | 994.4 | 1,014.7 | [1] | 979.5 | 1,014.7 | [1] | |
Collateral payable under securities loan agreements | [1] | 116.5 | 200.7 | ||||||
Deferred Tax Liabilities, Net | [1] | 0 | 27.9 | ||||||
Other Liabilities | [1],[3] | 292.2 | 416.2 | ||||||
Total liabilities | [1] | 4,064.9 | 4,305.3 | ||||||
Scheduled Contract Maturities, Settlements And Benefit Payments | 89 | $ 94 | $ 180 | $ 191 | |||||
Debt And Equity Securities Available For Sale [Member] | |||||||||
Assets: | |||||||||
Investments | 21,430.4 | 21,441.7 | |||||||
Debt And Equity Securities Available For Sale [Member] | Discontinued Products [Member] | |||||||||
Assets: | |||||||||
Investments | [1] | 2,242.1 | 2,376.2 | ||||||
Mortgage Loans [Member] | |||||||||
Assets: | |||||||||
Investments | 1,507.4 | 1,562.2 | |||||||
Mortgage Loans [Member] | Discontinued Products [Member] | |||||||||
Assets: | |||||||||
Investments | [1] | 336.3 | 386.8 | ||||||
Other Investments [Member] | |||||||||
Assets: | |||||||||
Investments | 1,788.1 | 1,785.2 | |||||||
Other Investments [Member] | Discontinued Products [Member] | |||||||||
Assets: | |||||||||
Investments | [1] | $ 652.5 | $ 662.2 | ||||||
[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. |