Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 04, 2014 |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'PHOENIX COMPANIES INC/DE | ' |
Entity Central Index Key | '0001129633 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 5.7 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Unaudited_Consolidated_Balance
Unaudited Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
ASSETS: | ' | ' |
Available-for-sale debt securities, at fair value (amortized cost of $11,222.8 and $11,018.4) | $11,713.20 | $11,956.40 |
Available-for-sale equity securities, at fair value (cost of $26.9 and $27.5) | 45.2 | 34.8 |
Short-term investments | 454.8 | 699.6 |
Limited partnerships and other investments | 573 | 577.3 |
Policy loans, at unpaid principal balances | 2,329.90 | 2,354.70 |
Derivative instruments | 197.2 | 157.4 |
Fair value investments | 223.7 | 201.5 |
Total investments | 15,537 | 15,981.70 |
Cash and cash equivalents | 492.8 | 246.4 |
Accrued investment income | 206.1 | 170.3 |
Receivables | 68.6 | 82.9 |
Reinsurance recoverable | 589.6 | 583.6 |
Deferred policy acquisition costs | 900.4 | 902.2 |
Deferred income taxes, net | 66 | 49.4 |
Other assets | 276.4 | 243.1 |
Discontinued operations assets | 45.5 | 53.7 |
Separate account assets | 3,350.90 | 3,316.50 |
Total assets | 21,533.30 | 21,629.80 |
LIABILITIES: | ' | ' |
Policy liabilities and accruals | 12,559.30 | 12,656.70 |
Policyholder deposit funds | 3,328.60 | 3,040.70 |
Dividend obligations | 746.5 | 1,003.60 |
Indebtedness | 378.8 | 378.8 |
Pension and postretirement liabilities | 407.2 | 429.3 |
Other liabilities | 342.9 | 245.3 |
Discontinued operations liabilities | 39.6 | 48.4 |
Separate account liabilities | 3,350.90 | 3,316.50 |
Total liabilities | 21,153.80 | 21,119.30 |
CONTINGENCIES AND COMMITMENTS (Notes 20 & 21) | ' | ' |
STOCKHOLDERS’ EQUITY: | ' | ' |
Common stock, $.01 par value: 5.7 million and 5.7 million shares outstanding | 0.1 | 0.1 |
Additional paid-in capital | 2,633.10 | 2,633.10 |
Accumulated other comprehensive income (loss) | -258.9 | -249.3 |
Retained earnings (accumulated deficit) | -1,820.50 | -1,697.20 |
Treasury stock, at cost: 0.7 million and 0.7 million shares | -182.9 | -182.9 |
Total The Phoenix Companies, Inc. stockholders’ equity | 370.9 | 503.8 |
Noncontrolling interests | 8.6 | 6.7 |
Total stockholders’ equity | 379.5 | 510.5 |
Total liabilities and stockholders’ equity | $21,533.30 | $21,629.80 |
Unaudited_Consolidated_Balance1
Unaudited Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Available-for-sale debt securities, amortized cost | $11,222.80 | $11,018.40 |
Available-for-sale equity securities, at cost | $26.90 | $27.50 |
Common stock par value (USD per share) | $0.01 | $0.01 |
Shares outstanding (in shares) | 5.7 | 5.7 |
Treasury stock (in shares) | 0.7 | 0.7 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
REVENUES | ' | ' | ' | ' | ||||
Premiums | $84.50 | $94.80 | $254.60 | $290.60 | ||||
Fee income | 140.4 | 138.8 | 409.3 | 423.1 | ||||
Net investment income | 199.3 | 205.1 | 584.4 | 623.3 | ||||
Net realized investment gains (losses): | ' | ' | ' | ' | ||||
Total other-than-temporary impairment (“OTTIâ€) losses | -1.7 | -7.2 | -2.6 | -30.6 | ||||
Portion of OTTI gains (losses) recognized in other comprehensive income (“OCIâ€) | -0.4 | -0.2 | -4.6 | 11.3 | ||||
Net OTTI losses recognized in earnings | -2.1 | -7.4 | -7.2 | -19.3 | ||||
Net realized investment gains (losses), excluding OTTI losses | 10.1 | 34.9 | 6.5 | 20.9 | ||||
Net realized investment gains (losses) | 8 | 27.5 | -0.7 | 1.6 | ||||
Gain on debt repurchase | 0 | 11.9 | 0 | 11.9 | ||||
Total revenues | 432.2 | 478.1 | 1,247.60 | 1,350.50 | ||||
BENEFITS AND EXPENSES: | ' | ' | ' | ' | ||||
Policy benefits, excluding policyholder dividends | 261.1 | 352.5 | 852.7 | 888.9 | ||||
Policyholder dividends | 66.2 | 81 | 121.9 | 222.3 | ||||
Policy acquisition cost amortization | 33.1 | 71.7 | 110.6 | 164.6 | ||||
Interest expense on indebtedness | 7.1 | 7.9 | 21.9 | 23.7 | ||||
Other operating expenses | 77.7 | 61.9 | 250.3 | 187.1 | ||||
Total benefits and expenses | 445.2 | 575 | 1,357.40 | 1,486.60 | ||||
Income (loss) from continuing operations before income taxes | -13 | -96.9 | -109.8 | -136.1 | ||||
Income tax expense (benefit) | 9.2 | -4.9 | 12.1 | -1 | ||||
Income (loss) from continuing operations | -22.2 | -92 | -121.9 | -135.1 | ||||
Loss from discontinued operations, net of income taxes | 0.3 | -6 | -1.7 | -12 | ||||
Net income (loss) | -21.9 | -98 | -123.6 | -147.1 | ||||
Less: Net income (loss) attributable to noncontrolling interests | -0.1 | 0.8 | -0.3 | 0.6 | ||||
Net income (loss) attributable to The Phoenix Companies, Inc. | -21.8 | -98.8 | -123.3 | -147.7 | ||||
COMPREHENSIVE INCOME (LOSS): | ' | ' | ' | ' | ||||
Net income (loss) attributable to The Phoenix Companies, Inc. | -21.8 | -98.8 | -123.3 | -147.7 | ||||
Net income (loss) attributable to noncontrolling interests | -0.1 | 0.8 | -0.3 | 0.6 | ||||
Net income (loss) | -21.9 | -98 | -123.6 | -147.1 | ||||
Other comprehensive income (loss) before income taxes: | ' | ' | ' | ' | ||||
Unrealized investment gains (losses), net of related offsets | 12.6 | 31.6 | -35.3 | 82.3 | ||||
Net pension liability adjustment | 2.6 | 2.4 | 9 | -0.1 | ||||
Other comprehensive income (loss) before income taxes | 15.2 | 34 | -26.3 | 82.2 | ||||
Less: Income tax expense (benefit) related to: | ' | ' | ' | ' | ||||
Unrealized investment gains (losses), net of related offsets | -0.2 | 38.6 | -16.7 | 83.5 | ||||
Net pension liability adjustment | 0 | 0 | 0 | 0 | ||||
Total income tax expense (benefit) | -0.2 | 38.6 | -16.7 | 83.5 | ||||
Other comprehensive income (loss), net of income taxes | 15.4 | -4.6 | -9.6 | -1.3 | ||||
Comprehensive income (loss) | -6.5 | -102.6 | -133.2 | -148.4 | ||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | -0.1 | 0.8 | -0.3 | 0.6 | ||||
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | ($6.40) | ($103.40) | ($132.90) | ($149) | ||||
EARNINGS (LOSS) PER SHARE: | ' | ' | ' | ' | ||||
Income (loss) from continuing operations – basic (USD per share) | ($3.87) | [1] | ($16) | [1] | ($21.23) | [1] | ($23.33) | [1] |
Income (loss) from continuing operations – diluted (USD per share) | ($3.87) | [1] | ($16) | [1] | ($21.23) | [1] | ($23.33) | [1] |
Income (loss) from discontinued operations – basic (USD per share) | $0.05 | [1] | ($1.04) | [1] | ($0.30) | [1] | ($2.07) | [1] |
Income (loss) from discontinued operations – diluted (USD per share) | $0.05 | [1] | ($1.04) | [1] | ($0.30) | [1] | ($2.07) | [1] |
Net income (loss) attributable to The Phoenix Companies, Inc.– basic (USD per share) | ($3.80) | [1] | ($17.19) | [1] | ($21.47) | [1] | ($25.50) | [1] |
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | ($3.80) | [1] | ($17.19) | [1] | ($21.47) | [1] | ($25.50) | [1] |
Basic weighted-average common shares outstanding (in shares) | 5,742 | [1],[2] | 5,749 | [1],[2] | 5,742 | [1],[2] | 5,792 | [1],[2] |
Diluted weighted-average common shares outstanding (in shares) | 5,742 | [1] | 5,749 | [1] | 5,742 | [1] | 5,792 | [1] |
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. | |||||||
[2] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 9 to these financial statements for additional information on the reverse stock split. |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Income and Comprehensive Income (Parenthetical) | 0 Months Ended |
Aug. 10, 2012 | |
Income Statement [Abstract] | ' |
Reverse stock split | 0.05 |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | ($123.30) | ($147.70) |
Net realized investment gains / losses | -3.8 | 4.2 |
Gain on debt repurchase | 0 | -11.9 |
Policy acquisition costs deferred | -42.8 | -56.2 |
Policy acquisition cost amortization | 110.6 | 164.6 |
Amortization and depreciation | 6.3 | 9.9 |
Interest credited | 99.8 | 90.1 |
Equity in earnings of limited partnerships and other investments | -35.4 | -46 |
Change in: | ' | ' |
Accrued investment income | -102.8 | -118.1 |
Deferred income taxes, net | 0 | -24.7 |
Receivables | 14.1 | 10.9 |
Reinsurance recoverable | -6.7 | -30.7 |
Policy liabilities and accruals | -299.3 | -312.4 |
Pension and postretirement liabilities | -13.1 | -21.5 |
Dividend obligations | -9.4 | 66.9 |
Impact of operating activities of consolidated investment entities, net | -3.6 | 0 |
Other operating activities, net | 31.7 | 19.2 |
Cash provided by (used for) operating activities | -377.7 | -403.4 |
Purchases of: | ' | ' |
Available-for-sale debt securities | -1,673.60 | -1,168.40 |
Available-for-sale equity securities | -4.5 | -6.3 |
Short-term investments | -1,089.10 | -1,199.30 |
Derivative instruments | -72.4 | -46 |
Fair value and other investments | -26.7 | -28.7 |
Sales, repayments and maturities of: | ' | ' |
Available-for-sale debt securities | 1,524.10 | 1,222.20 |
Available-for-sale equity securities | 3.8 | 7.9 |
Short-term investments | 1,334.50 | 967.9 |
Derivative instruments | 34 | 16.2 |
Fair value and other investments | 18.2 | 17.6 |
Contributions to limited partnerships and limited liability corporations | -51.8 | -63.7 |
Distributions from limited partnerships and limited liability corporations | 78.9 | 101.9 |
Policy loans, net | 86.8 | 106.7 |
Impact of investing activities of consolidated investment entities, net | 0 | 0 |
Other investing activities, net | -6.9 | -5.8 |
Cash provided by (used for) investing activities | 155.3 | -77.8 |
FINANCING ACTIVITIES: | ' | ' |
Policyholder deposit fund deposits | 1,025.10 | 1,216.30 |
Policyholder deposit fund withdrawals | -857.4 | -861.8 |
Net transfers to/from separate accounts | 299.3 | 279.4 |
Impact of financing activities of consolidated investment entities, net | 2.3 | 0.1 |
Other financing activities, net | 0 | -39.6 |
Cash provided by (used for) financing activities | 469.3 | 594.4 |
Change in cash and cash equivalents | 246.9 | 113.2 |
Change in cash included in discontinued operations assets | -0.5 | 2.4 |
Cash and cash equivalents, beginning of period | 246.4 | 168.2 |
Cash and cash equivalents, end of period | 492.8 | 283.8 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Income taxes paid (refunded) | 8.5 | 3.3 |
Interest expense on indebtedness paid | 18.6 | 20.4 |
Non-Cash Transactions During the Year | ' | ' |
Investment exchanges | $85.70 | $84.40 |
Unaudited_Consolidated_Stateme3
Unaudited Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Total Stockholders' Equity Attributable To The Phoenix Companies, Inc | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | RETAINED EARNINGS (ACCUMULATED DEFICIT): | TREASURY STOCK, AT COST | NONCONTROLLING INTERESTS: | |||
In Millions, unless otherwise specified | |||||||||||
Balance, beginning of period at Dec. 31, 2011 | $695.70 | $692.90 | $1.30 | [1] | $2,630.50 | ($230.70) | ($1,528.70) | ($179.50) | [1] | $2.80 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |||
Adjustment for reverse stock split | [1] | ' | ' | -1.2 | 1.2 | ' | ' | ' | ' | ||
Issuance of shares and compensation expense on stock compensation awards | ' | ' | ' | 1 | ' | ' | ' | ' | |||
Other comprehensive income (loss) | -1.3 | ' | ' | ' | -1.3 | ' | ' | ' | |||
Net income (loss) | -147.7 | ' | ' | ' | ' | -147.7 | ' | ' | |||
Treasury shares purchased | [1] | ' | ' | ' | ' | ' | ' | -3.4 | ' | ||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | -149 | -151.4 | ' | ' | ' | ' | ' | ' | |||
Change in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 2.4 | |||
Balance, end of period at Sep. 30, 2012 | 546.7 | 541.5 | 0.1 | [1] | 2,632.70 | -232 | -1,676.40 | -182.9 | [1] | 5.2 | |
Balance, beginning of period at Dec. 31, 2012 | 510.5 | 503.8 | 0.1 | [1] | 2,633.10 | -249.3 | -1,697.20 | -182.9 | [1] | 6.7 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |||
Adjustment for reverse stock split | [1] | ' | ' | 0 | 0 | ' | ' | ' | ' | ||
Issuance of shares and compensation expense on stock compensation awards | ' | ' | ' | 0 | ' | ' | ' | ' | |||
Other comprehensive income (loss) | -9.6 | ' | ' | ' | -9.6 | ' | ' | ' | |||
Net income (loss) | -123.3 | ' | ' | ' | ' | -123.3 | ' | ' | |||
Treasury shares purchased | [1] | ' | ' | ' | ' | ' | ' | 0 | ' | ||
Change in stockholders’ equity attributable to The Phoenix Companies, Inc. | -131 | -132.9 | ' | ' | ' | ' | ' | ' | |||
Change in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 1.9 | |||
Balance, end of period at Sep. 30, 2013 | $379.50 | $370.90 | $0.10 | [1] | $2,633.10 | ($258.90) | ($1,820.50) | ($182.90) | [1] | $8.60 | |
[1] | Reflects the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 9 to these financial statements for additional information on the reverse stock split. |
Unaudited_Consolidated_Stateme4
Unaudited Consolidated Statements of Changes in Stockholders' Equity Unaudited Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 0 Months Ended |
Aug. 10, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' |
Reverse stock split | 0.05 |
Organization_and_Description_o
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Description of Business | ' |
Organization and Description of Business | |
The Phoenix Companies, Inc. (“we,” “our,” “us,” the “Company,” “PNX” or “Phoenix”) is a holding company and our operations are conducted through subsidiaries, principally Phoenix Life Insurance Company (“Phoenix Life”) and PHL Variable Insurance Company (“PHL Variable”), collectively with Phoenix Life and Phoenix Life and Annuity Company and American Phoenix Life and Reassurance, they are our “Life Companies.” We provide life insurance and annuity products through independent agents and financial advisors. Our policyholder base includes both affluent and middle market consumers, with our more recent business concentrated in the middle market. Most of our life insurance in force is permanent life insurance insuring one or more lives. Our annuity products include fixed and variable annuities with a variety of death benefit and guaranteed living benefit options. | |
We operate two businesses segments: Life and Annuity and Saybrus Partners, Inc. (“Saybrus”). The Life and Annuity segment includes individual life insurance and annuity products, including our closed block. Saybrus provides dedicated life insurance and other consulting services to financial advisors in partner companies, as well as support for sales of Phoenix’s product line through independent distribution organizations. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
Basis of Presentation and Significant Accounting Policies | |
We have prepared these consolidated financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), which differs materially from the accounting practices prescribed by various insurance regulatory authorities. Our consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidating these financial statements. | |
Certain prior year amounts have been reclassified to conform to the current year presentation. These financial statements include all adjustments (consisting primarily of accruals) considered necessary for the fair statement of the consolidated balance sheet, consolidated statements of income and comprehensive income, consolidated statements of cash flows and consolidated statements of changes in stockholders’ equity for the interim periods. Certain financial information that is not required for interim reporting has been omitted. Financial results for the three months and nine months ended September 30, 2013 are not necessarily indicative of full year results. Results for the quarter ended and nine months ended September 30, 2013 include $0 and $2.4 million, respectively, of income related to out-of-period adjustments. Such amounts are not material to any period presented. These financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2012 contained in the 2012 Form 10-K. | |
Use of estimates | |
In preparing these financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are made in the determination of estimated gross profits (“EGPs”) and estimated gross margins (“EGMs”) used in the valuation and amortization of assets and liabilities associated with universal life and annuity contracts; policyholder liabilities and accruals; valuation of investments in debt and equity securities: limited partnerships and other investments; valuation of deferred tax assets; pension and other post-employment benefits liabilities; and accruals for contingent liabilities. Actual results could differ from these estimates. | |
Adoption of new accounting standards | |
Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued updated guidance regarding the presentation of comprehensive income (“ASU 2013-02”). Under the guidance, an entity would separately present information about significant items reclassified out of accumulated other comprehensive income by component as well as changes in accumulated other comprehensive income balances by component in either the financial statements or the notes to the financial statements. The guidance does not change the items that are reported in other comprehensive income. The guidance does not change when an item of other comprehensive income must be reclassified to net income and does not amend any existing requirements for reporting net income or other comprehensive income. The guidance was effective for the first interim or annual reporting period beginning after December 15, 2012 and should be applied prospectively. See Note 14 to these financial statements for the disclosures required by this guidance. | |
Disclosures about Offsetting Assets and Liabilities | |
In December 2011 and January 2013, the FASB issued amended guidance to ASC 210, Balance Sheet, with respect to disclosure of offsetting assets and liabilities as part of the effort to establish common requirements in accordance with U.S. GAAP. This amended guidance requires the disclosure of both gross information and net information about both financial instruments and derivative instruments eligible for offset in our balance sheets and instruments and transactions subject to an agreement similar to a master netting arrangement. This guidance was effective for periods beginning on or after January 1, 2013, with respective disclosures required retrospectively for all comparative periods presented. See Note 11 to these financial statements for the disclosures required by this guidance. | |
Definition of a Business Entity | |
In December 2013, the FASB issued updated guidance establishing a single definition of a public entity for use in financial accounting and reporting guidance. This new guidance is effective for all current and future reporting periods and did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Accounting standards not yet adopted | |
Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements | |
In June 2013, the FASB issued updated guidance clarifying the characteristics of an investment company and requiring new disclosures. Under the guidance, all entities regulated under the Investment Company Act of 1940 automatically qualify as investment companies, while all other entities need to consider both the fundamental and typical characteristics of an investment company in determining whether they qualify as investment companies. This new guidance is effective for interim or annual reporting periods that begin after December 15, 2013 and should be applied prospectively. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Obligations Resulting for Joint and Several Liability Agreements for Which the Total Amount of the Obligation is Fixed at the Reporting Date | |
In February 2013, the FASB issued new guidance regarding liabilities (“ASU 2013-04,” Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date), effective retrospectively for fiscal years beginning after December 15, 2013 and interim periods within those years. The amendments require an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition, the amendments require an entity to disclose the nature and amount of the obligation, as well as other information about the obligation. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Accounting for Troubled Debt Restructurings by Creditors | |
In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. This guidance can be elected for prospective adoption or by using a modified retrospective transition method. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and should be applied retrospectively to all periods presented. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |
In April 2014, the FASB issued updated guidance that changes the criteria for reporting discontinued operations and introduces new disclosures. The new guidance is effective prospectively to new disposals and new classifications of disposal groups as held for sale that occur within annual periods beginning on or after December 15, 2014 and interim periods within those annual periods. Early adoption is permitted for new disposals or new classifications as held for sale that have not been reported in financial statements previously issued. The Company will apply the guidance to new disposals and operations newly classified as held for sale, beginning first quarter of 2015, with no effect on existing reported discontinued operations. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists | |
In July 2013, the FASB issued updated guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This new guidance is effective for interim or annual reporting periods that begin after December 15, 2013, and should be applied prospectively, with early application permitted. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Significant Accounting Policies | |
Our significant accounting policies are presented in the notes to our consolidated financial statements for the year ended December 31, 2012 contained in the 2012 Form 10-K. There have been no significant changes since the filing of the year-end December 31, 2012 consolidated financial statements discussed above. |
Reinsurance
Reinsurance | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Reinsurance | ' | |||||||||||||||
Reinsurance | ||||||||||||||||
Reinsurance recoverable includes balances due from reinsurers for paid and unpaid losses and is presented net of an allowance for uncollectable reinsurance. The reinsurance recoverable balance is $589.6 million and $583.6 million as of September 30, 2013 and December 31, 2012, respectively. Other reinsurance activity is shown below. | ||||||||||||||||
Direct Business and Reinsurance in Continuing Operations: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Direct premiums | $ | 120.1 | $ | 133.4 | $ | 367.8 | $ | 411.6 | ||||||||
Premiums assumed from reinsureds | 2.7 | 1.9 | 6.7 | 6.1 | ||||||||||||
Premiums ceded to reinsurers [1] | (38.3 | ) | (40.5 | ) | (119.9 | ) | (127.1 | ) | ||||||||
Premiums | $ | 84.5 | $ | 94.8 | $ | 254.6 | $ | 290.6 | ||||||||
Percentage of amount assumed to net premiums | 3.20% | 2.00% | 2.60% | 2.10% | ||||||||||||
Direct policy benefits incurred | $ | 205.6 | $ | 191.9 | $ | 603 | $ | 574.1 | ||||||||
Policy benefits assumed from reinsureds | 3.6 | 30 | 22.4 | 67.9 | ||||||||||||
Policy benefits ceded to reinsurers | (77.6 | ) | (49.3 | ) | (192.8 | ) | (200.1 | ) | ||||||||
Premiums paid to reinsurers [2] | 26.4 | 28.1 | 53.8 | 69.5 | ||||||||||||
Policy benefits [3] | $ | 158 | $ | 200.7 | $ | 486.4 | $ | 511.4 | ||||||||
——————— | ||||||||||||||||
[1] | Primarily represents premiums ceded to reinsurers related to traditional life and term insurance policies. | |||||||||||||||
[2] | For universal life and variable universal life contracts, premiums paid to reinsurers are reflected within policy benefits. See Note 2 to these financial statements for additional information regarding significant accounting policies. | |||||||||||||||
[3] | Policy benefit amounts above exclude changes in reserves, interest credited to policyholders and other items, which total $103.1 million and $151.8 million, net of reinsurance, for the three months ended September 30, 2013 and 2012, respectively, and $366.3 million and $377.5 million, net of reinsurance, for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||
We remain liable to the extent that reinsuring companies may not be able to meet their obligations under reinsurance agreements in effect. Failure of the reinsurers to honor their obligations could result in losses to the Company. Since we bear the risk of nonpayment, on a quarterly basis we evaluate the financial condition of our reinsurers and monitor concentrations of credit risk. Based on our review of their financial statements, reputation in the reinsurance marketplace and other relevant information, we believe that we have no material exposure to uncollectible life reinsurance. At September 30, 2013, five major reinsurance companies account for approximately 64% of the reinsurance recoverable. |
Demutualization_and_Closed_Blo
Demutualization and Closed Block | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Demutualization and Closed Block | ' | |||||||||||||||
Demutualization and Closed Block | ||||||||||||||||
In 1999, we began the process of reorganizing and demutualizing our then principal operating company, Phoenix Home Life. We completed the process in June 2001, when all policyholder membership interests in this mutual company were extinguished and eligible policyholders of the mutual company received shares of common stock of The Phoenix Companies, Inc., together with cash and policy credits, as compensation. To protect the future dividends of these policyholders, we also established a closed block for their existing policies. | ||||||||||||||||
Because closed block liabilities exceed closed block assets, we have a net closed block liability at September 30, 2013 and December 31, 2012, respectively. This net liability represents the maximum future earnings contribution to be recognized from the closed block and the change in this net liability each period is in the earnings contribution recognized from the closed block for the period. To the extent that actual cash flows differ from amounts anticipated, we may adjust policyholder dividends. If the closed block has excess funds, those funds will be available only to the closed block policyholders. However, if the closed block has insufficient funds to make policy benefit payments that are guaranteed, the payments will be made from assets outside of the closed block. | ||||||||||||||||
Closed Block Assets and Liabilities as of: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | Inception | |||||||||||||||
Available-for-sale debt securities | $ | 5,856.80 | $ | 6,221.50 | $ | 4,773.10 | ||||||||||
Available-for-sale equity securities | 16.9 | 11.4 | — | |||||||||||||
Short-term investments | 140 | 174.9 | — | |||||||||||||
Limited partnerships and other investments | 349.3 | 353.1 | 399 | |||||||||||||
Policy loans | 1,213.60 | 1,233.50 | 1,380.00 | |||||||||||||
Fair value investments | 37.9 | 30.8 | — | |||||||||||||
Total closed block investments | 7,614.50 | 8,025.20 | 6,552.10 | |||||||||||||
Cash and cash equivalents | 106.5 | 32.7 | — | |||||||||||||
Accrued investment income | 84.2 | 85.3 | 106.8 | |||||||||||||
Receivables | 44.5 | 53.1 | 35.2 | |||||||||||||
Reinsurance recoverable | 20.3 | 7.5 | — | |||||||||||||
Deferred income taxes | 251.3 | 217.6 | 389.4 | |||||||||||||
Other closed block assets | 17.5 | 31.7 | 6.2 | |||||||||||||
Total closed block assets | 8,138.80 | 8,453.10 | 7,089.70 | |||||||||||||
Policy liabilities and accruals | 8,283.10 | 8,421.70 | 8,301.70 | |||||||||||||
Policyholder dividends payable | 213.7 | 223.8 | 325.1 | |||||||||||||
Policy dividend obligation | 532.6 | 779.8 | — | |||||||||||||
Other closed block liabilities | 109.6 | 47.5 | 12.3 | |||||||||||||
Total closed block liabilities | 9,139.00 | 9,472.80 | 8,639.10 | |||||||||||||
Excess of closed block liabilities over closed block assets [1] | 1,000.20 | 1,019.70 | $ | 1,549.40 | ||||||||||||
Less: Excess of closed block assets over closed block liabilities | (6.3 | ) | (5.4 | ) | ||||||||||||
attributable to noncontrolling interests | ||||||||||||||||
Excess of closed block liabilities over closed block assets attributable to | $ | 1,006.50 | $ | 1,025.10 | ||||||||||||
The Phoenix Companies, Inc. | ||||||||||||||||
——————— | ||||||||||||||||
[1] | The maximum future earnings summary to inure to the benefit of the stockholders is represented by the excess of closed block liabilities over closed block assets. All unrealized investment gains (losses), net of income tax, have been allocated to the policyholder dividend obligation. | |||||||||||||||
Closed Block Revenues and Expenses and Changes in | Three Months Ended | Nine Months Ended | ||||||||||||||
Policyholder Dividend Obligations: | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Closed block revenues | ||||||||||||||||
Premiums | $ | 76.2 | $ | 89.5 | $ | 230.4 | $ | 270.1 | ||||||||
Net investment income | 104 | 115.7 | 304.1 | 343.5 | ||||||||||||
Net realized investment gains (losses) | 8 | 7.5 | 9.7 | 9.4 | ||||||||||||
Total revenues | 188.2 | 212.7 | 544.2 | 623 | ||||||||||||
Policy benefits, excluding policyholder dividends | 111.1 | 120.1 | 389.7 | 364.8 | ||||||||||||
Other operating expenses | 1.4 | 1.3 | 4 | 3.6 | ||||||||||||
Total benefits and expenses, excluding | 112.5 | 121.4 | 393.7 | 368.4 | ||||||||||||
policyholder dividends | ||||||||||||||||
Closed block contribution to income before dividends | 75.7 | 91.3 | 150.5 | 254.6 | ||||||||||||
and income taxes | ||||||||||||||||
Policyholder dividends | (66.2 | ) | (80.9 | ) | (121.8 | ) | (221.6 | ) | ||||||||
Closed block contribution to income before income taxes | 9.5 | 10.4 | 28.7 | 33 | ||||||||||||
Applicable income tax expense | 3.3 | 3.6 | 10 | 11.5 | ||||||||||||
Closed block contribution to income | 6.2 | 6.8 | 18.7 | 21.5 | ||||||||||||
Less: Closed block contribution to income attributable to | (0.1 | ) | 0.4 | (0.3 | ) | 0.4 | ||||||||||
noncontrolling interests | ||||||||||||||||
Closed block contribution to income attributable to | $ | 6.3 | $ | 6.4 | $ | 19 | $ | 21.1 | ||||||||
The Phoenix Companies, Inc. | ||||||||||||||||
Closed Block Policyholder Dividend Obligation as of: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | ||||||||||||||||
Policyholder dividend obligation | ||||||||||||||||
Policyholder dividends provided through earnings | $ | 121.8 | $ | 294.5 | ||||||||||||
Policyholder dividends provided through OCI | (247.9 | ) | 168 | |||||||||||||
Additions to (reductions of) policyholder dividend liabilities | (126.1 | ) | 462.5 | |||||||||||||
Policyholder dividends paid | (131.2 | ) | (211.4 | ) | ||||||||||||
Increase in policyholder dividend liabilities | (257.3 | ) | 251.1 | |||||||||||||
Policyholder dividend liabilities, beginning of period | 1,003.60 | 752.5 | ||||||||||||||
Policyholder dividend liabilities, end of period | 746.3 | 1,003.60 | ||||||||||||||
Policyholder dividends payable, end of period | (213.7 | ) | (223.8 | ) | ||||||||||||
Policyholder dividend obligation, end of period | $ | 532.6 | $ | 779.8 | ||||||||||||
The policyholder dividend obligation includes approximately $174.1 million and $172.6 million, respectively, for cumulative closed block earnings in excess of expected amounts calculated at the date of demutualization as of September 30, 2013 and December 31, 2012 respectively. These closed block earnings will not inure to stockholders, but will result in additional future dividends to closed block policyholders unless otherwise offset by future performance of the closed block that is less favorable than expected. If actual cumulative performance is less favorable than expected, only actual earnings will be recognized in net income. As of September 30, 2013 and December 31, 2012, the policyholder dividend obligation also includes $358.5 million and $607.2 million, respectively, of net unrealized gains on investments supporting the closed block liabilities. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ' | |||||||||||||||
Deferred Policy Acquisition Costs | ' | |||||||||||||||
Deferred Policy Acquisition Costs | ||||||||||||||||
The balances of and changes in deferred policy acquisition costs (“DAC”) as of and for the periods ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||
Deferred Policy Acquisition Costs: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Policy acquisition costs deferred | $ | 13.9 | $ | 18 | $ | 42.8 | $ | 56.2 | ||||||||
Costs amortized to expenses: | ||||||||||||||||
Recurring costs | (32.4 | ) | (5.5 | ) | (107.9 | ) | (103.4 | ) | ||||||||
Assumption unlocking | — | (46.3 | ) | — | (46.3 | ) | ||||||||||
Realized investment gains (losses) | (0.7 | ) | (20.0 | ) | (2.7 | ) | (14.9 | ) | ||||||||
Offsets to net unrealized investment gains or losses | 5 | (15.1 | ) | 66 | (66.4 | ) | ||||||||||
included in AOCI [1] | ||||||||||||||||
Change in deferred policy acquisition costs | (14.2 | ) | (68.9 | ) | (1.8 | ) | (174.8 | ) | ||||||||
Deferred policy acquisition costs, beginning of period | 914.6 | 1,013.30 | 902.2 | 1,119.20 | ||||||||||||
Deferred policy acquisition costs, end of period | $ | 900.4 | $ | 944.4 | $ | 900.4 | $ | 944.4 | ||||||||
——————— | ||||||||||||||||
[1] | An offset to DAC and accumulated other comprehensive income (“AOCI”) is recorded each period to the extent that, had unrealized holding gains or losses from securities classified as available-for-sale actually been realized, an adjustment to DAC amortized using gross profits or gross margins would result. | |||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, deferred expenses primarily consisted of commissions related to fixed indexed annuity sales. |
Sales_Inducements
Sales Inducements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Deferred Sales Inducements [Abstract] | ' | |||||||||||||||
Sales Inducements | ' | |||||||||||||||
Sales Inducements | ||||||||||||||||
The Company currently offers bonus payments to contract owners on certain of its individual life and annuity products. Expenses incurred related to bonus payments are deferred and amortized over the life of the related contracts in a pattern consistent with the amortization of DAC. The Company unlocks the assumption used in the amortization of the deferred sales inducement asset consistent with the unlock of assumptions used in determining EGPs. Deferred sales inducements are included in other assets on the consolidated balance sheets and amortization of deferred sales inducements is included in other operating expense on the consolidated statements of income and comprehensive income. | ||||||||||||||||
Changes in Deferred Sales Inducement Activity: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Deferred asset, beginning of period | $ | 73.1 | $ | 47.8 | $ | 61.4 | $ | 50.2 | ||||||||
Sales inducements deferred | 2.7 | 2.7 | 8.2 | 12.4 | ||||||||||||
Amortization charged to income | (1.9 | ) | (2.1 | ) | (5.4 | ) | (6.2 | ) | ||||||||
Offsets to net unrealized investment gains or losses | 0.2 | 10.2 | 9.9 | 2.2 | ||||||||||||
included in AOCI | ||||||||||||||||
Deferred asset, end of period | $ | 74.1 | $ | 58.6 | $ | 74.1 | $ | 58.6 | ||||||||
Investing_Activities
Investing Activities | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Investing Activities | ' | |||||||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||
Debt and equity securities | ||||||||||||||||||||||||
The following tables present the debt and equity securities available-for-sale by sector held at September 30, 2013 and December 31, 2012, respectively. The unrealized loss amounts presented below include the non-credit loss component of OTTI losses. We classify these investments into various sectors in line with industry conventions. | ||||||||||||||||||||||||
Fair Value and Cost of Securities: | 30-Sep-13 | |||||||||||||||||||||||
($ in millions) | Gross | Gross | OTTI | |||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Recognized | ||||||||||||||||||||
Cost | Gains [1] | Losses [1] | Value | in AOCI [2] | ||||||||||||||||||||
U.S. government and agency | $ | 404 | $ | 45.6 | $ | (3.8 | ) | $ | 445.8 | $ | — | |||||||||||||
State and political subdivision | 364.5 | 21.9 | (8.8 | ) | 377.6 | (1.2 | ) | |||||||||||||||||
Foreign government | 177.1 | 18 | (0.3 | ) | 194.8 | — | ||||||||||||||||||
Corporate | 7,275.60 | 482 | (132.4 | ) | 7,625.20 | (8.4 | ) | |||||||||||||||||
Commercial mortgage-backed (“CMBS”) | 719.3 | 39.2 | (3.7 | ) | 754.8 | (4.2 | ) | |||||||||||||||||
Residential mortgage-backed (“RMBS”) | 1,717.60 | 55.2 | (27.9 | ) | 1,744.90 | (26.4 | ) | |||||||||||||||||
CDO/CLO | 220.7 | 5.5 | (5.5 | ) | 220.7 | (15.3 | ) | |||||||||||||||||
Other asset-backed | 344 | 16.6 | (11.2 | ) | 349.4 | (1.8 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,222.80 | $ | 684 | $ | (193.6 | ) | $ | 11,713.20 | $ | (57.3 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,502.80 | $ | 420.8 | $ | (66.8 | ) | $ | 5,856.80 | $ | (16.6 | ) | ||||||||||||
Available-for-sale equity securities | $ | 26.9 | $ | 19.4 | $ | (1.1 | ) | $ | 45.2 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 10.6 | $ | 6.8 | $ | (0.5 | ) | $ | 16.9 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Fair Value and Cost of Securities: | 31-Dec-12 | |||||||||||||||||||||||
($ in millions) | Gross | Gross | OTTI | |||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Recognized | ||||||||||||||||||||
Cost | Gains [1] | Losses [1] | Value | in AOCI [2] | ||||||||||||||||||||
U.S. government and agency | $ | 355.9 | $ | 58.5 | $ | (2.5 | ) | $ | 411.9 | $ | — | |||||||||||||
State and political subdivision | 321.5 | 37.8 | (2.1 | ) | 357.2 | (1.1 | ) | |||||||||||||||||
Foreign government | 167.5 | 36.8 | — | 204.3 | — | |||||||||||||||||||
Corporate | 6,996.40 | 745.7 | (72.1 | ) | 7,670.00 | (8.3 | ) | |||||||||||||||||
CMBS | 817.2 | 72.9 | (7.9 | ) | 882.2 | (6.2 | ) | |||||||||||||||||
RMBS | 1,698.20 | 94.3 | (20.8 | ) | 1,771.70 | (30.6 | ) | |||||||||||||||||
CDO/CLO | 240.5 | 6.4 | (23.2 | ) | 223.7 | (18.1 | ) | |||||||||||||||||
Other asset-backed | 421.2 | 26.6 | (12.4 | ) | 435.4 | (1.4 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,018.40 | $ | 1,079.00 | $ | (141.0 | ) | $ | 11,956.40 | $ | (65.7 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,614.80 | $ | 644.9 | $ | (38.2 | ) | $ | 6,221.50 | $ | (19.9 | ) | ||||||||||||
Available-for-sale equity securities | $ | 27.5 | $ | 9.7 | $ | (2.4 | ) | $ | 34.8 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 10.9 | $ | 1.8 | $ | (1.3 | ) | $ | 11.4 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Maturities of Debt Securities: | 30-Sep-13 | |||||||||||||||||||||||
($ in millions) | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 239.8 | $ | 246.4 | ||||||||||||||||||||
Due after one year through five years | 796.4 | 866.8 | ||||||||||||||||||||||
Due after five years through ten years | 810.5 | 877 | ||||||||||||||||||||||
Due after ten years | 6,374.50 | 6,653.20 | ||||||||||||||||||||||
CMBS/RMBS/ABS/CDO/CLO [1] | 3,001.60 | 3,069.80 | ||||||||||||||||||||||
Total | $ | 11,222.80 | $ | 11,713.20 | ||||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | CMBS, RMBS, ABS, CDO and CLO are not listed separately in the table as each security does not have a single fixed maturity. | |||||||||||||||||||||||
The maturities of debt securities, as of September 30, 2013, are summarized in the table above by contractual maturity. Actual maturities may differ from contractual maturities as certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties, and we have the right to put or sell certain obligations back to the issuers. | ||||||||||||||||||||||||
The following table depicts the sources of available-for-sale investment proceeds and related investment gains (losses). | ||||||||||||||||||||||||
Sales of Available-for-Sale Securities: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
Debt securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 328.1 | $ | 346.5 | ||||||||||||||||||||
Proceeds from maturities/repayments | 1,182.00 | 1,527.20 | ||||||||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 31.6 | 52.3 | ||||||||||||||||||||||
Gross investment losses from sales and maturities | (3.5 | ) | (11.1 | ) | ||||||||||||||||||||
Equity securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 3.7 | $ | 12.6 | ||||||||||||||||||||
Gross investment gains from sales | 1.3 | 8.5 | ||||||||||||||||||||||
Gross investment losses from sales | (1.2 | ) | (0.4 | ) | ||||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of | |||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | 35.5 | $ | (1.2 | ) | $ | 21.3 | $ | (2.6 | ) | $ | 56.8 | $ | (3.8 | ) | |||||||||
State and political subdivision | 80.7 | (6.5 | ) | 11 | (2.3 | ) | 91.7 | (8.8 | ) | |||||||||||||||
Foreign government | 38.6 | (0.3 | ) | — | — | 38.6 | (0.3 | ) | ||||||||||||||||
Corporate | 1,661.50 | (74.6 | ) | 241.7 | (57.8 | ) | 1,903.20 | (132.4 | ) | |||||||||||||||
CMBS | 76.6 | (2.7 | ) | 12.2 | (1.0 | ) | 88.8 | (3.7 | ) | |||||||||||||||
RMBS | 355.1 | (15.9 | ) | 138.7 | (12.0 | ) | 493.8 | (27.9 | ) | |||||||||||||||
CDO/CLO | 46.6 | (0.5 | ) | 96.6 | (5.0 | ) | 143.2 | (5.5 | ) | |||||||||||||||
Other asset-backed | 21.2 | (0.7 | ) | 43.4 | (10.5 | ) | 64.6 | (11.2 | ) | |||||||||||||||
Debt securities | 2,315.80 | (102.4 | ) | 564.9 | (91.2 | ) | 2,880.70 | (193.6 | ) | |||||||||||||||
Equity securities | 0.8 | — | 3.6 | (1.1 | ) | 4.4 | (1.1 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 2,316.60 | $ | (102.4 | ) | $ | 568.5 | $ | (92.3 | ) | $ | 2,885.10 | $ | (194.7 | ) | |||||||||
Amounts inside the closed block | $ | 1,467.20 | $ | (40.0 | ) | $ | 222.2 | $ | (27.3 | ) | $ | 1,689.40 | $ | (67.3 | ) | |||||||||
Amounts outside the closed block | $ | 849.4 | $ | (62.4 | ) | $ | 346.3 | $ | (65.0 | ) | $ | 1,195.70 | $ | (127.4 | ) | |||||||||
Amounts outside the closed block | $ | 105.5 | $ | (4.1 | ) | $ | 91.2 | $ | (18.0 | ) | $ | 196.7 | $ | (22.1 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 411 | 147 | 558 | |||||||||||||||||||||
Unrealized losses on below-investment-grade debt securities outside the closed block with a fair value depressed by more than 20% of amortized cost totaled $11.3 million at September 30, 2013, of which $9.1 million was depressed by more than 20% of amortized cost for more than 12 months. | ||||||||||||||||||||||||
Unrealized losses on below-investment-grade debt securities held in the closed block with a fair value depressed by more than 20% of amortized cost totaled $5.0 million at September 30, 2013, of which $0.0 million was depressed by more than 20% of amortized cost for more than 12 months. | ||||||||||||||||||||||||
As of September 30, 2013, available-for-sale securities in an unrealized loss position for over 12 months consisted of 141 debt securities and six equity securities. The debt securities primarily relate to corporate securities and asset backed securities, which have depressed values due primarily to an increase in interest rates since the purchase of these securities. Unrealized losses were not recognized in earnings on these fixed maturity securities since the Company neither intends to sell the securities nor do we believe that it is more likely than not that it will be required to sell these securities before recovery of their amortized cost basis. Additionally, based on a security-by-security analysis, we expect to recover the entire amortized cost basis of these securities. In our evaluation of each security, management considers the actual recovery periods for these securities in previous periods of broad market declines. For securities with significant declines, individual security level analysis is performed, which considers any credit enhancements, expectations of defaults on underlying collateral and other available market data, including industry analyst reports and forecasts. Similarly, for equity securities in an unrealized loss position for greater than 12 months, management performs an analysis on a security by security basis. Although there may be sustained losses for greater than 12 months on these securities, additional information is obtained related to company performance in the third quarter of 2013 which would not indicate that the additional losses are other-than-temporary. | ||||||||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of | |||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | 9 | $ | (0.1 | ) | $ | 28.4 | $ | (2.4 | ) | $ | 37.4 | $ | (2.5 | ) | |||||||||
State and political subdivision | 13.5 | (0.8 | ) | 7.1 | (1.3 | ) | 20.6 | (2.1 | ) | |||||||||||||||
Foreign government | — | — | — | — | — | — | ||||||||||||||||||
Corporate | 300.9 | (6.2 | ) | 318.2 | (65.9 | ) | 619.1 | (72.1 | ) | |||||||||||||||
CMBS | 8.4 | (1.0 | ) | 30.7 | (6.9 | ) | 39.1 | (7.9 | ) | |||||||||||||||
RMBS | 64.7 | (0.4 | ) | 212.6 | (20.4 | ) | 277.3 | (20.8 | ) | |||||||||||||||
CDO/CLO | 26.2 | (2.0 | ) | 132.7 | (21.2 | ) | 158.9 | (23.2 | ) | |||||||||||||||
Other asset-backed | 10.1 | (0.7 | ) | 43.3 | (11.7 | ) | 53.4 | (12.4 | ) | |||||||||||||||
Debt securities | 432.8 | (11.2 | ) | 773 | (129.8 | ) | 1,205.80 | (141.0 | ) | |||||||||||||||
Equity securities | 4.4 | (1.6 | ) | 2.4 | (0.8 | ) | 6.8 | (2.4 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 437.2 | $ | (12.8 | ) | $ | 775.4 | $ | (130.6 | ) | $ | 1,212.60 | $ | (143.4 | ) | |||||||||
Amounts inside the closed block | $ | 150.7 | $ | (4.6 | ) | $ | 332.4 | $ | (34.9 | ) | $ | 483.1 | $ | (39.5 | ) | |||||||||
Amounts outside the closed block | $ | 286.5 | $ | (8.2 | ) | $ | 443 | $ | (95.7 | ) | $ | 729.5 | $ | (103.9 | ) | |||||||||
Amounts outside the closed block | $ | 29.8 | $ | (2.0 | ) | $ | 177.5 | $ | (63.4 | ) | $ | 207.3 | $ | (65.4 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 108 | 196 | 304 | |||||||||||||||||||||
Unrealized losses on below-investment-grade debt securities outside the closed block with a fair value depressed by more than 20% of amortized cost totaled $52.3 million at December 31, 2012, of which $52.1 million was depressed by more than 20% of amortized cost for more than 12 months. | ||||||||||||||||||||||||
Unrealized losses on below-investment-grade debt securities held in the closed block with a fair value depressed by more than 20% of amortized cost totaled $5.5 million at December 31, 2012, of which $5.5 million was depressed by more than 20% of amortized cost for more than 12 months. | ||||||||||||||||||||||||
As of December 31, 2012, available-for-sale securities in an unrealized loss position for over 12 months consisted of 192 debt securities and four equity securities. The debt securities primarily consist of asset backed securities and corporate securities, which have depressed values due primarily to an increase in interest rates since the purchase of these securities. Unrealized losses were not recognized in earnings on these debt securities since the Company neither intends to sell the securities nor do we believe that it is more likely than not that it will be required to sell these securities before recovery of their amortized cost basis. Additionally, based on a security-by-security analysis, we expect to recover the entire amortized cost basis of these securities. In our evaluation of each security, management considers the actual recovery periods for these securities in previous periods of broad market declines. For securities with significant declines, individual security level analysis is performed, which considers any credit enhancements, expectations of defaults on underlying collateral and other available market data, including industry analyst reports and forecasts. Similarly, for equity securities in an unrealized loss position for greater than 12 months, management performs an analysis on a security by security basis. Although there may be sustained losses for greater than 12 months on these securities, additional information is obtained related to company performance which would not indicate that the losses are other-than-temporary. | ||||||||||||||||||||||||
Evaluating temporarily impaired available-for-sale securities | ||||||||||||||||||||||||
In management’s evaluation of temporarily impaired securities, many factors about individual issuers of securities as well as our best judgment in determining the cause of a decline in the estimated fair value are considered in the assessment of potential near-term recovery in the security’s value. Some of those considerations include, but are not limited to: (i) duration of time and extent to which the estimated fair value has been below cost or amortized cost; (ii) for debt securities, if the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (iii) whether the issuer is experiencing significant financial difficulties and the potential for impairments of that issuer’s securities; (iv) pervasive issues across an entire industry sector/sub-sector; and (v) for structured securities, assessing any changes in the forecasted cash flows, the quality of underlying collateral, expectations of prepayment speeds, loss severity and payment priority of tranches held. | ||||||||||||||||||||||||
Other-than-temporary impairments | ||||||||||||||||||||||||
Management assessed all securities in an unrealized loss position in determining whether impairments were temporary or other-than-temporary. In reaching its conclusions, management exercised significant judgment and used a number of issuer-specific quantitative indicators and qualitative judgments to assess the probability of receiving a given security’s contractual cash flows. This included the issue’s implied yield to maturity, cumulative default rate based on rating, comparisons of issue-specific spreads to industry or sector spreads, specific trading activity in the issue and other market data such as recent debt tenders and upcoming refinancing requirements. Management also reviewed fundamentals such as issuer credit and liquidity metrics, business outlook and industry conditions. Management maintains a watch list of securities that is reviewed for impairments. Each security on the watch list was evaluated, analyzed and discussed, with the positive and negative factors weighed in the ultimate determination of whether or not the security was other-than-temporarily impaired. For securities for which no OTTI was ultimately indicated at September 30, 2013, management does not have the intention to sell, nor does it expect to be required to sell, these securities prior to their recovery. | ||||||||||||||||||||||||
OTTIs recorded in the first nine months of 2013 were primarily concentrated in structured securities. These impairments were driven primarily by increased collateral default rates. In our judgment, these credit events or other adverse conditions of the issuers have caused, or will most likely lead to, a deficiency in the contractual cash flows related to the investment. Therefore, based upon these credit events, we have determined that OTTIs exist. Total debt impairments recognized through earnings related to such credit-related circumstances were $2.1 million for the third quarter of 2013 and $7.1 million for the third quarter of 2012 and $7.2 million for the first nine months of 2013 and $17.5 million for the first nine months of 2012. There were equity security OTTIs of $0 and $0 for the three and nine months ended September 30, 2013 and $0.0 million and $1.5 million for the three and nine months September 30, 2012. There were limited partnerships and other investment OTTIs of $0 and $0 for the three and nine months ended September 30, 2013 and $0.3 million and $0.3 million for the three and nine months ended September 30, 2012. | ||||||||||||||||||||||||
In addition to these credit-related impairments recognized through earnings, we impaired securities to fair value through other comprehensive loss for any impairments related to non-credit related factors. These types of impairments were driven primarily by market or sector credit spread widening or by a lack of liquidity in the securities. The amount of impairments recognized as an adjustment to other comprehensive loss due to these factors was $(0.4) million for the third quarter of 2013, $(0.2) million for the third quarter of 2012, $(4.6) million for the first nine months of 2013 and $11.3 million for the first nine months of 2012. | ||||||||||||||||||||||||
The following table presents a roll-forward of pre-tax credit losses recognized in earnings related to debt securities for which a portion of the OTTI was recognized in OCI. | ||||||||||||||||||||||||
Credit Losses Recognized in Earnings on Debt Securities for | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
which a Portion of the OTTI Loss was Recognized in OCI: | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | (72.5 | ) | $ | (78.8 | ) | $ | (72.6 | ) | $ | (79.1 | ) | ||||||||||||
Add: Credit losses on securities not previously impaired [1] | (0.7 | ) | (1.5 | ) | (0.7 | ) | (3.8 | ) | ||||||||||||||||
Add: Credit losses on securities previously impaired [1] | (0.2 | ) | (5.6 | ) | (3.6 | ) | (11.8 | ) | ||||||||||||||||
Less: Credit losses on securities impaired due to intent to sell | — | — | — | — | ||||||||||||||||||||
Less: Credit losses on securities sold | 2.9 | 5.3 | 6.4 | 14.1 | ||||||||||||||||||||
Less: Increases in cash flows expected on | — | — | — | — | ||||||||||||||||||||
previously impaired securities | ||||||||||||||||||||||||
Balance, end of period | $ | (70.5 | ) | $ | (80.6 | ) | $ | (70.5 | ) | $ | (80.6 | ) | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Additional credit losses on securities for which a portion of the OTTI loss was recognized in AOCI are included within net OTTI losses recognized in earnings on the statements of income and comprehensive income. | |||||||||||||||||||||||
Limited partnerships and other investments | ||||||||||||||||||||||||
Limited Partnerships and Other Investments: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
Limited partnerships | ||||||||||||||||||||||||
Private equity funds | $ | 239.6 | $ | 241.7 | ||||||||||||||||||||
Mezzanine funds | 188.7 | 202.1 | ||||||||||||||||||||||
Infrastructure funds | 44.6 | 42.5 | ||||||||||||||||||||||
Hedge funds | 12.9 | 14.3 | ||||||||||||||||||||||
Mortgage and real estate funds | 3.7 | 5.4 | ||||||||||||||||||||||
Leverage leases | 16.9 | 17.9 | ||||||||||||||||||||||
Direct equity investments | 40.8 | 29.2 | ||||||||||||||||||||||
Life settlements | 21.3 | 21 | ||||||||||||||||||||||
Other alternative assets | 4.5 | 3.2 | ||||||||||||||||||||||
Limited partnerships and other investments | $ | 573 | $ | 577.3 | ||||||||||||||||||||
Amounts applicable to the closed block | $ | 349.3 | $ | 353.1 | ||||||||||||||||||||
Summarized financial information for these equity method investees is reported on a three-month delay due to the timing of financial statements as of the current reporting period. | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Net investment income is comprised primarily of interest income, including amortization of premiums and accretion of discounts on structured securities, based on yields which are changed due to expectations in projected principal and interest cash flows, dividend income from common and preferred stock, gains and losses on securities measured at fair value and earnings from investments accounted for under equity method accounting. | ||||||||||||||||||||||||
Sources of Net Investment Income: | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Debt securities [1] | $ | 144 | $ | 158.9 | $ | 430.8 | $ | 462.2 | ||||||||||||||||
Equity securities | 0.3 | 0.5 | — | 2.4 | ||||||||||||||||||||
Limited partnerships and other investments | 14.1 | 14 | 37.9 | 48.5 | ||||||||||||||||||||
Policy loans | 39 | 35.7 | 119.5 | 120.7 | ||||||||||||||||||||
Fair value investments | 5.2 | (0.1 | ) | 7.2 | 1.5 | |||||||||||||||||||
Total investment income | 202.6 | 209 | 595.4 | 635.3 | ||||||||||||||||||||
Less: Discontinued operations | 0.3 | 0.4 | 0.9 | 1.6 | ||||||||||||||||||||
Less: Investment expenses | 3 | 3.5 | 10.1 | 10.4 | ||||||||||||||||||||
Net investment income | $ | 199.3 | $ | 205.1 | $ | 584.4 | $ | 623.3 | ||||||||||||||||
Amounts applicable to the closed block | $ | 104 | $ | 115.7 | $ | 304.1 | $ | 343.5 | ||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes net investment income on short-term investments. | |||||||||||||||||||||||
Net realized investment gains (losses) | ||||||||||||||||||||||||
Sources and Types of | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Net Realized Investment Gains (Losses): | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Total other-than-temporary debt impairments | $ | (1.7 | ) | $ | (6.9 | ) | $ | (2.6 | ) | $ | (28.8 | ) | ||||||||||||
Portion of gains (losses) recognized in OCI | (0.4 | ) | (0.2 | ) | (4.6 | ) | 11.3 | |||||||||||||||||
Net debt impairment losses recognized in earnings | $ | (2.1 | ) | $ | (7.1 | ) | $ | (7.2 | ) | $ | (17.5 | ) | ||||||||||||
Debt security impairments: | ||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
State and political subdivision | — | — | — | — | ||||||||||||||||||||
Foreign government | — | — | — | — | ||||||||||||||||||||
Corporate | (0.7 | ) | — | (0.7 | ) | (0.6 | ) | |||||||||||||||||
CMBS | (0.1 | ) | (3.3 | ) | (2.0 | ) | (4.5 | ) | ||||||||||||||||
RMBS | (1.4 | ) | (2.6 | ) | (4.3 | ) | (10.4 | ) | ||||||||||||||||
CDO/CLO | 0.1 | (0.7 | ) | (0.2 | ) | (0.7 | ) | |||||||||||||||||
Other asset-backed | — | (0.5 | ) | — | (1.3 | ) | ||||||||||||||||||
Net debt security impairments | (2.1 | ) | (7.1 | ) | (7.2 | ) | (17.5 | ) | ||||||||||||||||
Equity security impairments | — | — | — | (1.5 | ) | |||||||||||||||||||
Limited partnerships and other investment impairments | — | (0.3 | ) | — | (0.3 | ) | ||||||||||||||||||
Impairment losses | (2.1 | ) | (7.4 | ) | (7.2 | ) | (19.3 | ) | ||||||||||||||||
Debt security transaction gains | 19.7 | 33.4 | 31.7 | 41.4 | ||||||||||||||||||||
Debt security transaction losses | (0.8 | ) | (1.3 | ) | (3.5 | ) | (4.9 | ) | ||||||||||||||||
Equity security transaction gains | 0.3 | 5 | 1.3 | 5 | ||||||||||||||||||||
Equity security transaction losses | — | (0.2 | ) | (1.2 | ) | (0.3 | ) | |||||||||||||||||
Limited partnerships and other investment transaction gains | 0.7 | 5.5 | 0.7 | 6.8 | ||||||||||||||||||||
Limited partnerships and other investment transaction losses | (4.6 | ) | (1.5 | ) | (4.6 | ) | (2.5 | ) | ||||||||||||||||
Net transaction gains (losses) | 15.3 | 40.9 | 24.4 | 45.5 | ||||||||||||||||||||
Derivative instruments | (15.2 | ) | (14.2 | ) | (34.9 | ) | (33.4 | ) | ||||||||||||||||
Embedded derivatives [1] | 8.9 | 7.1 | 14.6 | 6.9 | ||||||||||||||||||||
Assets valued at fair value | 1.1 | 1.1 | 2.4 | 1.9 | ||||||||||||||||||||
Net realized investment gains (losses), excluding impairment losses | 10.1 | 34.9 | 6.5 | 20.9 | ||||||||||||||||||||
Net realized investment gains (losses), including impairment losses | $ | 8 | $ | 27.5 | $ | (0.7 | ) | $ | 1.6 | |||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity GMWB, GMAB and COMBO riders. See Note 10 to these financial statements for additional disclosures. | |||||||||||||||||||||||
Unrealized investment gains (losses) | ||||||||||||||||||||||||
Sources of Changes in | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Net Unrealized Investment Gains (Losses): | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Debt securities | $ | (36.0 | ) | $ | 193.6 | $ | (447.6 | ) | $ | 398.2 | ||||||||||||||
Equity securities | 4.8 | (3.3 | ) | 11 | (0.4 | ) | ||||||||||||||||||
Other investments | 0.8 | — | 0.3 | — | ||||||||||||||||||||
Net unrealized investment gains (losses) | $ | (30.4 | ) | $ | 190.3 | $ | (436.3 | ) | $ | 397.8 | ||||||||||||||
Net unrealized investment gains (losses) | $ | (30.4 | ) | $ | 190.3 | $ | (436.3 | ) | $ | 397.8 | ||||||||||||||
Applicable to closed block policyholder dividend obligation | (22.2 | ) | 84.7 | (247.9 | ) | 171.5 | ||||||||||||||||||
Applicable to DAC | (5.0 | ) | 15.1 | (66.0 | ) | 66.4 | ||||||||||||||||||
Applicable to other actuarial offsets | (15.8 | ) | 58.9 | (87.1 | ) | 77.6 | ||||||||||||||||||
Applicable to deferred income tax expense (benefit) | (0.2 | ) | 38.6 | (16.7 | ) | 83.5 | ||||||||||||||||||
Offsets to net unrealized investment gains (losses) | (43.2 | ) | 197.3 | (417.7 | ) | 399 | ||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | $ | 12.8 | $ | (7.0 | ) | $ | (18.6 | ) | $ | (1.2 | ) | |||||||||||||
Consolidated variable interest entities | ||||||||||||||||||||||||
Effective January 1, 2010, the Company adopted guidance related to consolidation of VIEs. The revised consolidation guidance amended the definition as well as the method of determining whether an entity is the primary beneficiary of a VIE to a qualitative model. Under the new model, an entity that has both the ability to direct the significant activities of the VIE and the obligation to receive the benefits or absorb the losses that is significant to the VIE is considered the primary beneficiary. This update requires ongoing assessment and enhanced disclosures including the effect of the Company’s involvement with VIEs on its financial statements. | ||||||||||||||||||||||||
The Company regularly invests in private equity type fund structures which are VIEs. Entities which do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as VIEs. We perform ongoing assessments of our investments in VIEs to determine whether we have the power to direct the most significant activities of the entity and an economic interest in the entity. When we hold both the power to direct the most significant activities of the entity and an economic interest in the entity, we are considered to be the primary beneficiary of the entity and consolidate the VIE. The consolidated entities are all investment company-like structures which follow specialized investment company accounting and record underlying investments at fair value. The nature of the VIEs’ operations and purpose are private equity limited partnerships, single asset LLCs and a fund of fund investment structure and have investments in homogeneous types of assets presented below. | ||||||||||||||||||||||||
The following table presents the total assets and total liabilities relating to consolidated VIEs at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Carrying Value of Assets and Liabilities for | September 30, 2013 | 31-Dec-12 | ||||||||||||||||||||||
Consolidated Variable Interest Entities: | Maximum | Maximum | ||||||||||||||||||||||
($ in millions) | Exposure | Exposure | ||||||||||||||||||||||
Assets | Liabilities | to Loss [1] | Assets | Liabilities | to Loss [1] | |||||||||||||||||||
Debt securities, at fair value [2] | $ | 5.8 | $ | — | $ | 5.5 | $ | 3.6 | $ | — | $ | 3.4 | ||||||||||||
Equity securities, at fair value [2] | 27.2 | — | 22.5 | 23.4 | — | 19.2 | ||||||||||||||||||
Cash and cash equivalents | 11.6 | — | 11.4 | 10.2 | — | 10.2 | ||||||||||||||||||
Investment in partnership interests | 10.4 | — | 10.4 | 11 | — | 11 | ||||||||||||||||||
Investment in single asset LLCs | 15.7 | — | 9.8 | 6.8 | — | 5.4 | ||||||||||||||||||
Other assets | 0.5 | — | 0.4 | 5.5 | — | 5.5 | ||||||||||||||||||
Total assets of consolidated VIEs | $ | 71.2 | $ | — | $ | 60 | $ | 60.5 | $ | — | $ | 54.7 | ||||||||||||
Total liabilities of consolidated VIEs | $ | — | $ | 6.2 | $ | 6 | $ | — | $ | 5.1 | $ | 5.1 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the consolidated VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. The maximum exposure to loss above at September 30, 2013 and December 31, 2012 excludes unfunded commitments of $0 and $4.1 million, respectively. | |||||||||||||||||||||||
[2] | Included in fair value investments on the consolidated balance sheets. | |||||||||||||||||||||||
Non-consolidated variable interest entities | ||||||||||||||||||||||||
We hold limited partnership interests with various VIEs primarily as a passive investor in private equity limited partnerships and through direct investments, in which the general partners are not related parties. As the Company is not the general partner in any VIE structures, consolidation is based on evaluation of the primary beneficiary. This analysis includes a review of the VIE’s capital structure, nature of the VIE’s operations and purpose and the Company’s involvement with the entity. When determining the need to consolidate a VIE, the design of the VIE is evaluated as well as any exposed risks of the Company’s investment. As we do not have both: (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity; and (ii) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant, we do not consolidate these VIEs. These investments are accounted for under the equity method of accounting and are included in limited partnerships and other investments on our consolidated balance sheets. We reassess our VIE determination with respect to an entity on an ongoing basis. The following table presents the carrying value of assets and liabilities and the maximum exposure to loss relating to significant VIEs for which we are not the primary beneficiary. | ||||||||||||||||||||||||
The carrying value of our investments in non-consolidated VIEs (based upon sponsor values and financial statements of the individual entities) for which we are not the primary beneficiary was $158.3 million and $139.7 million as of September 30, 2013 and December 31, 2012, respectively. The maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. The Company has not provided nor intends to provide financial support to these entities unless contractually required. We do not have the contractual option to redeem these limited partnership interests but receive distributions based on the liquidation of the underlying assets. The Company must generally request general partner consent to transfer or sell its fund interests. The Company performs ongoing qualitative analysis of its involvement with VIEs to determine if consolidation is required. | ||||||||||||||||||||||||
Carrying Value of Assets and Liabilities | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
and Maximum Exposure Loss Relating | Maximum | Maximum | ||||||||||||||||||||||
to Variable Interest Entities: | Exposure | Exposure | ||||||||||||||||||||||
($ in millions) | Assets | Liabilities | to Loss [1] | Assets | Liabilities | to Loss [1] | ||||||||||||||||||
Limited partnerships | $ | 119.2 | $ | — | $ | 173.6 | $ | 136.5 | $ | — | $ | 202.1 | ||||||||||||
LLCs | 39.1 | — | 39.1 | 3.2 | — | 3.2 | ||||||||||||||||||
Total | $ | 158.3 | $ | — | $ | 212.7 | $ | 139.7 | $ | — | $ | 205.3 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. | |||||||||||||||||||||||
In addition, the Company makes passive investments in structured securities issued by VIEs, for which the Company is not the manager, which are included in CMBS, RMBS, CDO/CLO and other asset-backed securities within available-for-sale debt securities, and in fair value investments, in the consolidated balance sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the size of our investment relative to the structured securities issued by the VIE, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits, and the Company’s lack of power over the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of our investment. | ||||||||||||||||||||||||
Issuer and counterparty credit exposure | ||||||||||||||||||||||||
Credit exposure related to issuers and derivatives counterparties is inherent in investments and derivative contracts with positive fair value or asset balances. We manage credit risk through the analysis of the underlying obligors, issuers and transaction structures. We review our debt security portfolio regularly to monitor the performance of obligors and assess the stability of their credit ratings. We also manage credit risk through industry and issuer diversification and asset allocation. Maximum exposure to an issuer or derivative counterparty is defined by quality ratings, with higher quality issuers having larger exposure limits. As of September 30, 2013, we were exposed to the credit concentration risk of six issuers, Deutsche Bank AG, Citibank NA, Goldman Sachs International, JP Morgan Chase Bank NA, Berkshire Hathaway Inc. and Bank of America Corp representing exposure greater than 10.0% of stockholders’ equity other than U.S. government and government agencies backed by the faith and credit of the U.S. government. We monitor credit exposures by actively monitoring dollar limits on transactions with specific counterparties. We have an overall limit on below-investment-grade rated issuer exposure. Additionally, the creditworthiness of counterparties is reviewed periodically. We generally use ISDA Master Agreements which include Credit Support Annexes which include collateral provisions to reduce counterparty credit exposures. Included in fixed maturities are below-investment-grade assets totaling $915.9 million and $1,039.6 million at September 30, 2013 and December 31, 2012, respectively. To further mitigate the risk of loss on derivatives, we only enter into contracts in which the counterparty is a financial institution with a rating of A or higher from at least one Nationally Recognized Statistical Rating Organization. | ||||||||||||||||||||||||
As of September 30, 2013, we held derivative assets, net of liabilities, with a fair value of $114.0 million. Derivative credit exposure was diversified with eleven different counterparties. We also had debt securities of these issuers with a fair value of $211.8 million as of September 30, 2013. Our maximum amount of loss due to credit risk with these issuers was $325.8 million as of September 30, 2013. See Note 11 to these financial statements for more information regarding derivatives. |
Financing_Activities
Financing Activities | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Financing Activities | ' | |||||||||||||||
Financing Activities | ||||||||||||||||
Indebtedness at Carrying Value: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | ||||||||||||||||
7.15% surplus notes | $ | 126.1 | $ | 126.1 | ||||||||||||
7.45% senior unsecured bonds | 252.7 | 252.7 | ||||||||||||||
Total indebtedness | $ | 378.8 | $ | 378.8 | ||||||||||||
Our 7.15% surplus notes are an obligation of Phoenix Life and are due December 15, 2034. The carrying value of the 2034 notes is net of $0.6 million of unamortized original issue discount. Interest payments are at an annual rate of 7.15%, require the prior approval of the New York State Department of Financial Services (“NYDFS”) and may be made only out of surplus funds which the NYDFS determines to be available for such payments under New York Insurance Law. The notes may be redeemed at the option of Phoenix Life at any time at the “make-whole” redemption price set forth in the offering circular. New York Insurance Law provides that the notes are not part of the legal liabilities of Phoenix Life. On September 21, 2012, Phoenix Life repurchased $48.3 million par amount of its outstanding 7.15% surplus notes, including $0.2 million in original issue discount, for aggregate consideration of $36.2 million. | ||||||||||||||||
The Phoenix Companies, Inc. senior unsecured bonds were issued in December 2001 for gross proceeds of $300.0 million (net proceeds of $290.6 million) and mature in January 2032. We pay interest at an annual rate of 7.45%. We may redeem any or all of the bonds at a redemption price equal to 100% of principal plus accrued and unpaid interest to the redemption date. We have repurchased a cumulative amount of $47.3 million of par value of these bonds as of September 30, 2013. During 2012 and the nine months ended September 30, 2013, no repurchases were made. In March 2013, we extinguished $31.4 million par value of these bonds. | ||||||||||||||||
The indenture governing our senior unsecured bonds requires us to file with U.S. Bank, National Association, as trustee, within 15 days after we are required to file with the SEC, copies of the annual reports and of the information, documents and other reports that we are required to file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act. In connection with our previously announced restatement of financial statements for the years ended December 31, 2011, 2010 and 2009, the quarters of fiscal year 2011, the first and second quarters of 2012 and the delay in filing our Third Quarter 2012 Form 10-Q, we were unable to file our Third Quarter 2012 Form 10-Q with the SEC and meet the requirement to timely deliver a copy of such report to the trustee. This resulted in a default under the indenture governing the bonds. On November 30, 2012, the trustee issued a notice of default, which stated that the failure of the Company to deliver the Third Quarter 2012 Form 10-Q constituted non-compliance with the reporting covenant in the indenture and that delivery of such notice initiated a 60-day cure period. | ||||||||||||||||
On December 12, 2012, we commenced a solicitation of bondholders holding our outstanding bonds as of 5:00 p.m., New York City time on December 11, 2012, seeking a one-time consent to amend the indenture governing the bonds and provide a related waiver. The consent solicitation sought the approval of the amendments and a related waiver from holders representing a majority of the aggregate outstanding principal amount of the bonds, allowing us to extend the date to deliver our Third Quarter 2012 Form 10-Q to the trustee to March 31, 2013 and would waive any and all defaults and events of default related to the delayed filing of our Third Quarter 2012 Form 10-Q that occurred prior to the effectiveness of the amendments. | ||||||||||||||||
On January 16, 2013, we announced that holders of approximately $166.3 million in aggregate principal amount of the bonds, representing approximately 65% of the approximately $252.7 million in outstanding principal amount of the bonds as of the December 11, 2012 record date, consented to the amendments to the indenture and the related waiver. On January 18, 2013, the Company and the trustee executed a first supplemental indenture (“First Supplemental Indenture”) amending the Indenture effective as of such date. The amendments provided that until 5:30 p.m., New York City time on March 31, 2013, any failure by us to comply with the sections of the Indenture relating to the filing of the Third Quarter 2012 Form 10-Q will not constitute a default under the Indenture and that our filing of such report on a delayed basis on or prior to such time and date will satisfy our obligations under the reporting covenant in the Indenture. Pursuant to the waiver, any and all defaults and events of default occurring under the Indenture prior to the effectiveness of the First Supplemental Indenture are waived. | ||||||||||||||||
On April 24, 2013, we commenced a second solicitation (“Second Consent Solicitation”) of holders of bonds to further amend the Indenture and provide a related waiver to extend the date for providing the trustee with the Third Quarter 2012 Form 10-Q, our 2012 Annual Report on Form 10-K (the “2012 Form 10-K”) and our Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 (the “2013 Forms 10-Q”) to December 31, 2013. | ||||||||||||||||
On May 22, 2013, we announced the success of our Second Consent Solicitation. The consents received represented approximately 60% of the outstanding principal amount of the bonds. On May 23, 2013, the Company and the trustee executed a second supplemental indenture (“Second Supplemental Indenture”) amending the Indenture effective as of such date. The amendments provided that until 5:30 p.m., New York City time on December 31, 2013, any failure by us to comply with the sections of the Indenture relating to the filing of the Third Quarter 2012 Form 10-Q, the 2012 Form 10-K and the 2013 Forms 10-Q will not constitute defaults under the Indenture and that our filing of such reports on a delayed basis on or prior to such time and date will satisfy our obligations under the reporting covenant in the Indenture. Pursuant to the waiver, any and all defaults and events of default occurring under the Indenture prior to the effectiveness of the Second Supplemental Indenture are waived. | ||||||||||||||||
See Note 22 to these financial statements for additional information regarding solicitation of bondholders subsequent to the quarter ended September 30, 2013. | ||||||||||||||||
We have recorded indebtedness at unpaid principal balances of each instrument net of issue discount. The Company or its subsidiaries may, from time to time, purchase its debt securities in the open market subject to considerations including, but not limited to, market conditions, relative valuations, capital allocation and the determination that it is in the best interest of the Company and its stakeholders. | ||||||||||||||||
Future minimum annual principal payments on indebtedness as of September 30, 2013 are $252.7 million in 2032 and $126.7 million in 2034. There are no debt maturities in 2014 through 2019. | ||||||||||||||||
Interest Expense on Indebtedness, including | Three Months Ended | Nine Months Ended | ||||||||||||||
Amortization of Debt Issuance Costs: | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
7.15% surplus notes | $ | 2.3 | $ | 3.1 | $ | 6.9 | $ | 9.4 | ||||||||
7.45% senior unsecured bonds | 4.8 | 4.8 | 15 | 14.3 | ||||||||||||
Interest expense on indebtedness | $ | 7.1 | $ | 7.9 | $ | 21.9 | $ | 23.7 | ||||||||
Common_Stock_and_Stock_Repurch
Common Stock and Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Common Stock and Stock Repurchase Program | ' |
Common Stock and Stock Repurchase Program | |
We have authorization for the issuance of 50 million shares of our common stock. The Company effected a 1-for-20 reverse stock split of its common stock following market close on August 10, 2012 which resulted in a decrease in the common stock balance with a corresponding increase in the additional paid in capital balance. As part of the reverse stock split, the par value remained at $0.01 per share. No fractional shares were issuable in connection with the reverse stock split. Instead, shareholders were entitled to receive cash in lieu of fractional shares, based on the closing price of the Company’s common stock on August 10, 2012. As a result of the reverse stock split, an aggregate of $2.9 million was payable to shareholders for such fractional shares. | |
Following the reverse stock split, the Company offered an odd lot program that provided post-reverse stock split shareholders who held fewer than 100 shares with a voluntary limited time means to sell their shares, purchase enough additional shares to increase their holding to a round lot of 100 shares or make a charitable donation of their shares. The odd lot program terminated as of October 26, 2012. | |
On September 20, 2012, the Board of Directors (the “Board”) of the Company authorized a program to repurchase up to an aggregate amount of $25.0 million (not including fees and expenses) of the Company’s outstanding shares of common stock. Under the stock repurchase program, purchases may be made from time to time in the open market, in accelerated stock buyback arrangements, in privately negotiated transactions or otherwise, subject to market prices and other conditions. No time limit was placed on the duration of the program, which may be modified, extended or terminated by the Board at any time. The Board also terminated, effective September 20, 2012, the Company’s existing stock repurchase program, which was announced on August 5, 2002. There were no repurchases in 2013. | |
Through September 30, 2013, we have issued 6.4 million common shares (2.8 million shares to our policyholders in exchange for their interests in the mutual company and 3.6 million shares in sales to the public and to settle share-based compensation awards). As of September 30, 2013, we had 5.7 million shares of common stock issued and outstanding, net of 0.7 million shares of common stock held as treasury stock. Shares issued and outstanding include 0.1 million shares held in a Rabbi Trust to fund equity awards on which recipients are allowed to vote their shares. As of September 30, 2013, we also had 0.4 million shares reserved for issuance under our stock option plans (0.3 million shares) and our restricted stock unit (“RSU”) plans (0.1 million shares). All share and RSU amounts for all periods reflect the 1-for-20 reverse stock split, which became effective on August 10, 2012. | |
State Farm Mutual Automobile Insurance Company (“State Farm”) currently owns of record 5.1% of our outstanding common stock. In the nine months ended September 30, 2013 and 2012, we incurred $1.9 million and $1.7 million, respectively, as compensation costs for the sale of our insurance and annuity products by entities that were either subsidiaries of State Farm or owned by State Farm agents. |
Separate_Accounts_Death_Benefi
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Separate Accounts, Death Benefits, Other Insurance Benefit Features And Embedded Product Derivatives [Abstract] | ' | |||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives | ' | |||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives | ||||||||||
Separate accounts | ||||||||||
Separate account products are those for which a separate investment and liability account is maintained on behalf of the policyholder. Investment objectives for these separate accounts vary by fund account type, as outlined in the applicable fund prospectus or separate account plan of operations. We have variable annuity and variable life insurance contracts that are classified as separate account products. The assets supporting these contracts are carried at fair value and are reported as separate account assets with an equivalent amount reported as separate account liabilities. Amounts assessed against the policyholder for mortality, administration and other services are included within revenue in fee income. For the three and nine months ended September 30, 2013 and 2012, there were no gains or losses on transfers of assets from the general account to a separate account. | ||||||||||
Assets with fair value and carrying value of $1.9 billion and $1.8 billion at September 30, 2013 and December 31, 2012, respectively, supporting fixed indexed annuities are maintained in accounts that are legally segregated from the other assets of the Company, but policyholders do not direct the investment of those assets and the investment performance does not pass through to the policyholders. These assets supporting fixed indexed annuity contracts are reported within the respective investment line items on the consolidated balance sheets. | ||||||||||
On May 21, 2012, the employee pension plan surrendered its variable annuity contract with PHL Variable. All assets held within the employee pension plan separate account were subsequently transferred to the direct control of the plan’s trustee. This resulted in a decrease in separate account assets and liabilities of $464.2 million during the year ended December 31, 2012. | ||||||||||
Separate Account Investments of Account Balances of Variable Annuity Contracts | 30-Sep-13 | 31-Dec-12 | ||||||||
with Insurance Guarantees: | ||||||||||
($ in millions) | ||||||||||
Debt securities | $ | 435.7 | $ | 484.6 | ||||||
Equity funds | 1,904.90 | 1,862.20 | ||||||||
Other | 65.1 | 69.6 | ||||||||
Total | $ | 2,405.70 | $ | 2,416.40 | ||||||
Death benefits and other insurance benefit features | ||||||||||
Variable annuity guaranteed benefits | ||||||||||
We establish policy benefit liabilities for minimum death and income benefit guarantees relating to certain annuity policies as follows: | ||||||||||
• | Liabilities associated with the guaranteed minimum death benefit (“GMDB”) are determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the expected life of the contract based on total expected assessments. The assumptions used for calculating the liabilities are generally consistent with those used for amortizing DAC. | |||||||||
• | Liabilities associated with the guaranteed minimum income benefit (“GMIB”) are determined by estimating the expected value of the income benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The assumptions used for calculating such guaranteed income benefit liabilities are generally consistent with those used for amortizing DAC. | |||||||||
For variable annuities with GMDB and GMIB, reserves for these guarantees are calculated and recorded in policy liabilities and accruals on our consolidated balance sheets. Changes in the liability are recorded in policy benefits, excluding policyholder dividends, on our consolidated statements of income and comprehensive income. We regularly evaluate estimates used and adjust the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. | ||||||||||
Changes in Guaranteed Insurance Benefit Liability Balances: | Year Ended | |||||||||
($ in millions) | 30-Sep-13 | |||||||||
Annuity | Annuity | |||||||||
GMDB | GMIB | |||||||||
Liability balance as of January 1, 2013 | $ | 15.9 | $ | 21.7 | ||||||
Incurred | 1.9 | (2.4 | ) | |||||||
Paid | (3.3 | ) | — | |||||||
Change due to net unrealized gains or losses included in AOCI | — | (0.1 | ) | |||||||
Assumption unlocking | — | — | ||||||||
Liability balance as of September 30, 2013 | $ | 14.5 | $ | 19.2 | ||||||
Changes in Guaranteed Insurance Benefit Liability Balances: | Year Ended | |||||||||
($ in millions) | 31-Dec-12 | |||||||||
Annuity | Annuity | |||||||||
GMDB | GMIB | |||||||||
Liability balance as of January 1, 2012 | $ | 16.4 | $ | 17.6 | ||||||
Incurred | 0.6 | 4 | ||||||||
Paid | (1.1 | ) | — | |||||||
Change due to net unrealized gains or losses included in AOCI | — | 0.3 | ||||||||
Assumption unlocking | — | (0.2 | ) | |||||||
Liability balance as of December 31, 2012 | $ | 15.9 | $ | 21.7 | ||||||
For those guarantees of benefits that are payable in the event of death, the net amount at risk (“NAR”) is generally defined as the benefit payable in excess of the current account balance at our balance sheet date. We have entered into reinsurance agreements to reduce the net amount of risk on certain death benefits. Following are the major types of death benefits currently in force as defined in the 2012 Form 10-K: | ||||||||||
GMDB and GMIB Benefits by Type: | NAR | Average | ||||||||
($ in millions) | Account | after | Attained Age | |||||||
Value | Reinsurance | of Annuitant | ||||||||
30-Sep-13 | ||||||||||
GMDB return of premium | $ | 773.4 | $ | 2.6 | 63 | |||||
GMDB step up | 1,965.20 | 11.9 | 63 | |||||||
GMDB earnings enhancement benefit (“EEB”) | 35.8 | 0.1 | 64 | |||||||
GMDB greater of annual step up and roll up | 26.7 | 5.6 | 67 | |||||||
Total GMDB at September 30, 2013 | 2,801.10 | $ | 20.2 | |||||||
Less: General account value with GMDB | 408.8 | |||||||||
Subtotal separate account liabilities with GMDB | 2,392.30 | |||||||||
Separate account liabilities without GMDB | 958.6 | |||||||||
Total separate account liabilities | $ | 3,350.90 | ||||||||
GMIB [1] at September 30, 2013 | $ | 401.5 | 64 | |||||||
31-Dec-12 | ||||||||||
GMDB return of premium | $ | 799.2 | $ | 6.4 | 62 | |||||
GMDB step up | 1,957.20 | 25.6 | 63 | |||||||
GMDB earnings enhancement benefit (“EEB”) | 37.5 | 0.1 | 63 | |||||||
GMDB greater of annual step up and roll up | 26.7 | 7.4 | 67 | |||||||
Total GMDB at December 31, 2012 | 2,820.60 | $ | 39.5 | |||||||
Less: General account value with GMDB | 420.6 | |||||||||
Subtotal separate account liabilities with GMDB | 2,400.00 | |||||||||
Separate account liabilities without GMDB | 916.5 | |||||||||
Total separate account liabilities | $ | 3,316.50 | ||||||||
GMIB [1] at December 31, 2012 | $ | 416.8 | 64 | |||||||
——————— | ||||||||||
[1] | Policies with a GMIB also have a GMDB, however these benefits are not additive. When a policy terminates due to death, any NAR related or GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. | |||||||||
Fixed indexed annuity guaranteed benefits | ||||||||||
Many of our fixed indexed annuities contain guaranteed benefits. We establish policy benefit liabilities for minimum death and minimum withdrawal benefit guarantees relating to these policies as follows: | ||||||||||
• | Liabilities associated with the GMWB and Chronic Care guarantees are determined by estimating the value of the withdrawal benefits expected to be paid after the projected account value depletes and recognizing the value ratably over the accumulation period based on total expected assessments. Liabilities associated with the GMWB for the fixed indexed annuities differ from those contained on variable annuities in that the GMWB feature and the underlying contract, exclusive of the equity index crediting option, are fixed income instruments. | |||||||||
• | Liabilities associated with the GMDB are determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the expected life of the contract based on total expected assessments. | |||||||||
The assumptions used for calculating GMWB, GMDB and Chronic Care guarantees are consistent with those used for amortizing DAC. We regularly evaluate estimates used and adjust the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised. The GMWB, GMDB and Chronic Care guarantees on fixed indexed annuities are recorded in policy liabilities and accruals on our consolidated balance sheets. | ||||||||||
Changes in Guaranteed Liability Balances: | Fixed Indexed Annuity | |||||||||
($ in millions) | GMWB & GMDB | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Liability balance, beginning of period | $ | 103.6 | $ | 5.6 | ||||||
Incurred | 44.9 | 40.1 | ||||||||
Paid | (0.2 | ) | — | |||||||
Change due to net unrealized gains or losses included in AOCI | (47.7 | ) | 57.9 | |||||||
Assumption unlocking | — | — | ||||||||
Liability balance, end of period | $ | 100.6 | $ | 103.6 | ||||||
Universal life | ||||||||||
Liabilities for universal life contracts in excess of the account balance, some of which contain secondary guarantees, are generally determined by estimating the expected value of benefits and expenses when claims are triggered and recognizing those benefits and expenses over the accumulation period based on total expected assessments. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC. | ||||||||||
Changes in Guaranteed Liability Balances: | Universal Life | |||||||||
($ in millions) | Secondary Guarantees | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Liability balance, beginning of period | $ | 137.7 | $ | 118.5 | ||||||
Incurred | 35 | 30.8 | ||||||||
Paid | (11.8 | ) | (9.5 | ) | ||||||
Change due to net unrealized gains or losses included in AOCI | (1.9 | ) | 2.4 | |||||||
Assumption unlocking | — | (4.5 | ) | |||||||
Liability balance, end of period | $ | 159 | $ | 137.7 | ||||||
In addition, the universal life block of business has experience which produces profits in earlier periods followed by losses in later periods for which additional reserves are required to be held above the account value liability. These reserves are accrued ratably over historical and anticipated positive income to offset the future anticipated losses. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC. | ||||||||||
Changes in Additional Liability Balances: | Universal Life | |||||||||
($ in millions) | Profits Followed by Losses | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Liability balance, beginning of period | $ | 308.4 | $ | 200.5 | ||||||
Expenses | 54.6 | 46.3 | ||||||||
Change due to net unrealized gains or losses included in AOCI | (21.4 | ) | 16.8 | |||||||
Assumption unlocking | — | 44.8 | ||||||||
Liability balance, end of period | $ | 341.6 | $ | 308.4 | ||||||
Embedded derivatives | ||||||||||
Variable annuity embedded derivatives | ||||||||||
Certain separate account variable products contain a GMWB, GMAB and/or COMBO rider as defined in the 2012 Form 10-K. These features are accounted for as embedded derivatives as described below. | ||||||||||
Non-Insurance Guaranteed Product Features: | Average | |||||||||
($ in millions) | Attained | |||||||||
Account | Age of | |||||||||
Value | Annuitant | |||||||||
30-Sep-13 | ||||||||||
GMWB | $ | 582.9 | 64 | |||||||
GMAB | 388.5 | 58 | ||||||||
COMBO | 7.4 | 62 | ||||||||
Total at September 30, 2013 | $ | 978.8 | ||||||||
31-Dec-12 | ||||||||||
GMWB | $ | 578.4 | 63 | |||||||
GMAB | 390.6 | 58 | ||||||||
COMBO | 8.5 | 62 | ||||||||
Total at December 31, 2012 | $ | 977.5 | ||||||||
The GMWB, GMAB and COMBO features represent embedded derivative liabilities in the variable annuity contracts that are required to be reported separately from the host variable annuity contract. These liabilities are recorded at fair value within policyholder deposit funds on the consolidated balance sheets with changes in fair value recorded in realized investment gains on the consolidated statements of income and comprehensive income. The fair value of the GMWB, GMAB and COMBO obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. As markets change, contracts mature and actual policyholder behavior emerges, these assumptions are continually evaluated and may from time to time be adjusted. Embedded derivative liabilities for GMWB, GMAB and COMBO are shown in the table below. | ||||||||||
Variable Annuity Embedded Derivative Liabilities: | 30-Sep-13 | 31-Dec-12 | ||||||||
($ in millions) | ||||||||||
GMWB | $ | — | $ | 15.3 | ||||||
GMAB | 4.2 | 14.6 | ||||||||
COMBO | (0.4 | ) | (0.3 | ) | ||||||
Total variable annuity embedded derivative liabilities | $ | 3.8 | $ | 29.6 | ||||||
There were no benefit payments made for the GMWB and GMAB in the nine months ended September 30, 2013 and 2012. We have established a risk management strategy under which we hedge our GMAB, GMWB and COMBO exposure using equity index options, equity index futures, equity index variance swaps, interest rate swaps and swaptions. | ||||||||||
Fixed indexed annuity embedded derivatives | ||||||||||
Fixed indexed annuities may also contain a variety of index-crediting options: policy credits that are calculated based on the performance of an outside equity market or other index over a specified term. The index options represent embedded derivative liabilities that are required to be reported separately from the host contract. These index options are accounted for at fair value and recorded in policyholder deposits within the consolidated balance sheets with changes in fair value recorded in realized investment gains, in the consolidated statements of income and comprehensive income. The fair value of these index options is | ||||||||||
calculated using the budget method. See Note 12 to these financial statements for additional information. Several additional inputs reflect our internally developed assumptions related to lapse rates and other policyholder behavior. The fair value of these embedded derivatives was $69.0 million and $51.2 million as of September 30, 2013 and December 31 2012 respectively. In order to manage the risk associated with these equity indexed-crediting features, we hedge using equity index options. See in Note 11 to these financial statements for additional information. | ||||||||||
Embedded derivatives realized gains and losses | ||||||||||
Changes in the fair value of embedded derivatives associated with variable annuity and fixed indexed annuity contracts are recorded as realized investment gains and losses within the consolidated statements of income and comprehensive income. Embedded derivatives gains and (losses) recognized in earnings for the three and nine months ended September 30, 2013 are $8.9 million and $14.6 million. Embedded derivatives gains and (losses) recognized in earnings for the three and nine months ended September 30, 2012 are $7.1 million and $6.9 million. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||||||
Derivative instruments | ||||||||||||||||||||||||
We use derivative financial instruments, including options, futures and swaps as a means of hedging exposure to interest rate, equity price change, equity volatility and foreign currency risk. This includes our surplus hedge which utilizes futures and options to hedge against declines in equity markets and the resulting statutory capital and surplus impact. We also use derivative instruments to economically hedge our exposure on living benefits offered on certain of our variable annuity products as well as index credits on our fixed indexed annuity products. | ||||||||||||||||||||||||
The Company seeks to enter into over-the-counter (“OTC”) derivative transactions pursuant to master agreements that provide for a netting of payments and receipts by counterparty. As of September 30, 2013 and December 31, 2012, $9.2 million and $9.2 million, respectively, of cash and cash equivalents were held as collateral by a third party related to our derivative transactions. | ||||||||||||||||||||||||
Our derivatives are not designated as hedges for accounting purposes. | ||||||||||||||||||||||||
Derivative Instruments: | Fair Value as of | |||||||||||||||||||||||
($ in millions) | Notional | 30-Sep-13 | ||||||||||||||||||||||
Maturity | Amount | Assets | Liabilities [1] | |||||||||||||||||||||
Interest rate swaps | 2016-2027 | $ | 160 | $ | 6.8 | $ | 7.2 | |||||||||||||||||
Variance swaps | 2015-2017 | 0.9 | — | 7.3 | ||||||||||||||||||||
Swaptions | 2024-2025 | 1,402.00 | 22.2 | — | ||||||||||||||||||||
Put options | 2015-2022 | 406 | 43.1 | — | ||||||||||||||||||||
Call options [2] | 2013-2018 | 1,623.90 | 107.9 | 68.2 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | — | 0.5 | ||||||||||||||||||||
Equity futures | 2013 | 156.8 | 17.2 | — | ||||||||||||||||||||
Total derivative instruments | $ | 3,759.60 | $ | 197.2 | $ | 83.2 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $2.5 million. | |||||||||||||||||||||||
Derivative Instruments: | Fair Value as of | |||||||||||||||||||||||
($ in millions) | Notional | 31-Dec-12 | ||||||||||||||||||||||
Maturity | Amount | Assets | Liabilities [1] | |||||||||||||||||||||
Interest rate swaps | 2016-2027 | $ | 180 | $ | 15.5 | $ | 7.7 | |||||||||||||||||
Variance swaps | 2015-2017 | 0.9 | — | 4.4 | ||||||||||||||||||||
Swaptions | 2024 | 25 | — | — | ||||||||||||||||||||
Put options | 2015-2022 | 406 | 72.7 | — | ||||||||||||||||||||
Call options [2] | 2013-2017 | 1,328.40 | 53.3 | 33.6 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | — | 0.1 | ||||||||||||||||||||
Equity futures | 2013 | 184.7 | 15.9 | — | ||||||||||||||||||||
Total derivative instruments | $ | 2,135.00 | $ | 157.4 | $ | 45.8 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $2.7 million. | |||||||||||||||||||||||
Derivative Instrument Gains (Losses) Recognized in | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Realized Investment Gains (Losses): | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Interest rate swaps | $ | (2.9 | ) | $ | (0.4 | ) | $ | (8.9 | ) | $ | 0.5 | |||||||||||||
Variance swaps | (1.2 | ) | (1.8 | ) | (3.0 | ) | (6.4 | ) | ||||||||||||||||
Swaptions | (4.7 | ) | — | 8.9 | (0.2 | ) | ||||||||||||||||||
Put options | (8.8 | ) | (8.4 | ) | (30.2 | ) | (14.6 | ) | ||||||||||||||||
Call options | 10.6 | 7.4 | 30.5 | 7.6 | ||||||||||||||||||||
Equity futures | (7.7 | ) | (11.1 | ) | (31.8 | ) | (20.5 | ) | ||||||||||||||||
Cross currency swaps | (0.5 | ) | 0.1 | (0.4 | ) | 0.2 | ||||||||||||||||||
Embedded derivatives | 8.9 | 7.1 | 14.6 | 6.9 | ||||||||||||||||||||
Total derivative instrument losses recognized in | $ | (6.3 | ) | $ | (7.1 | ) | $ | (20.3 | ) | $ | (26.5 | ) | ||||||||||||
realized investment gains (losses) | ||||||||||||||||||||||||
Offsetting of Derivative Assets/Liabilities | ||||||||||||||||||||||||
The Company may enter into netting agreements with counterparties that permit the Company to offset receivables and | ||||||||||||||||||||||||
payables with such counterparties. The following tables present the gross fair value amounts, the amounts offset and net | ||||||||||||||||||||||||
position of derivative instruments eligible for offset in the Company’s consolidated balance sheets that are subject to an | ||||||||||||||||||||||||
enforceable master netting arrangement upon certain termination events, irrespective of whether they are offset in the balance | ||||||||||||||||||||||||
sheet. | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Offsetting of | Gross | Gross amounts not offset | ||||||||||||||||||||||
Derivative Assets/Liabilities: | Gross | amounts | Net amounts | in the balance sheet | ||||||||||||||||||||
($ in millions) | amounts | offset in the | presented in the | Financial | Cash collateral | |||||||||||||||||||
recognized [1] | balance sheet | balance sheet | instruments | pledged [2] | Net amount | |||||||||||||||||||
Total derivative assets | $ | 197.2 | $ | — | $ | 197.2 | $ | (82.8 | ) | $ | — | $ | 114.4 | |||||||||||
Total derivative liabilities | $ | (83.2 | ) | $ | — | $ | (83.2 | ) | $ | 82.8 | $ | 0.4 | $ | — | ||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Offsetting of | Gross | Gross amounts not offset | ||||||||||||||||||||||
Derivative Assets/Liabilities: | Gross | amounts | Net amounts | in the balance sheet | ||||||||||||||||||||
($ in millions) | amounts | offset in the | presented in the | Financial | Cash collateral | |||||||||||||||||||
recognized [1] | balance sheet | balance sheet | instruments | pledged [2] | Net amount | |||||||||||||||||||
Total derivative assets | $ | 157.4 | $ | — | $ | 157.4 | $ | (45.7 | ) | $ | — | $ | 111.7 | |||||||||||
Total derivative liabilities | $ | (45.8 | ) | $ | — | $ | (45.8 | ) | $ | 45.7 | $ | 0.1 | $ | — | ||||||||||
——————— | ||||||||||||||||||||||||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | |||||||||||||||||||||||
[2] | Cash collateral pledged with derivative counterparties is recorded within other assets on the balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $8.8 million and $9.1 million as of September 30, 2013 and December 31, 2012, respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. | |||||||||||||||||||||||
Contingent features | ||||||||||||||||||||||||
In certain derivative counterparty agreements, our financial strength ratings are below the specified threshold levels. However, the Company held no derivative instruments as of September 30, 2013 in a net aggregate liability position payable to any counterparty (i.e., such derivative instruments have fair values in a net asset position payable to the Company if such holdings were liquidated). |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
ASC 820-10 defines and establishes the framework for measuring fair value. The framework is based on inputs that are used in the valuation and a fair value hierarchy based on the quality of those inputs. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||||||||||||||||||||
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The input levels are defined as follows: | ||||||||||||||||||||||||||||||||
• | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 securities include highly liquid government bonds and exchange-traded equities. | |||||||||||||||||||||||||||||||
• | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Examples of such instruments include government-backed mortgage products, certain collateralized mortgage and debt obligations and certain high-yield debt securities. | |||||||||||||||||||||||||||||||
• | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect management’s own assumptions about inputs in which market participants would use in pricing these types of assets or liabilities. Level 3 financial instruments include values which are determined using pricing models and third-party evaluation. Additionally, the determination of some fair value estimates utilizes significant management judgments or best estimates. | |||||||||||||||||||||||||||||||
The following tables present the financial instruments carried at fair value on a recurring basis by ASC 820-10 valuation hierarchy (as described above). There were no financial instruments carried at fair value on a non-recurring basis as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency | — | 96 | 349.8 | [1] | $ | 445.8 | ||||||||||||||||||||||||||
State and political subdivision | — | 139.5 | 238.1 | 377.6 | ||||||||||||||||||||||||||||
Foreign government | — | 179.1 | 15.7 | 194.8 | ||||||||||||||||||||||||||||
Corporate | — | 3,735.30 | 3,889.90 | 7,625.20 | ||||||||||||||||||||||||||||
CMBS | — | 625.1 | 129.7 | 754.8 | ||||||||||||||||||||||||||||
RMBS | — | 1,156.20 | 588.7 | 1,744.90 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 220.7 | 220.7 | ||||||||||||||||||||||||||||
Other asset-backed | — | 80.9 | 268.5 | 349.4 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,012.10 | 5,701.10 | 11,713.20 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | 3.1 | — | 42.1 | 45.2 | ||||||||||||||||||||||||||||
Short-term investments | 454.8 | — | — | 454.8 | ||||||||||||||||||||||||||||
Derivative assets | 17.2 | 180 | — | 197.2 | ||||||||||||||||||||||||||||
Fair value investments [2] | 31.2 | 14 | 178.5 | 223.7 | ||||||||||||||||||||||||||||
Separate account assets | 3,350.90 | — | — | 3,350.90 | ||||||||||||||||||||||||||||
Total assets | $ | 3,857.20 | $ | 6,206.10 | $ | 5,921.70 | $ | 15,985.00 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 83.2 | $ | — | $ | 83.2 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 72.8 | 72.8 | ||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 83.2 | $ | 72.8 | $ | 156 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at September 30, 2013 include $133.4 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $22.6 million as of September 30, 2013. Changes in the fair value of these assets are recorded through net investment income. Additionally, $67.7 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.6 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
There were no transfers of assets between Level 1 and Level 2 during the nine months ended September 30, 2013. | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | 31-Dec-12 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | 115.2 | $ | 296.7 | [1] | $ | 411.9 | |||||||||||||||||||||||
State and political subdivision | — | 144.8 | 212.4 | 357.2 | ||||||||||||||||||||||||||||
Foreign government | — | 158.5 | 45.8 | 204.3 | ||||||||||||||||||||||||||||
Corporate | — | 3,857.70 | 3,812.30 | 7,670.00 | ||||||||||||||||||||||||||||
CMBS | — | 792.5 | 89.7 | 882.2 | ||||||||||||||||||||||||||||
RMBS | — | 1,062.40 | 709.3 | 1,771.70 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 223.7 | 223.7 | ||||||||||||||||||||||||||||
Other asset-backed | — | 125.5 | 309.9 | 435.4 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,256.60 | 5,699.80 | 11,956.40 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | 2.1 | — | 32.7 | 34.8 | ||||||||||||||||||||||||||||
Short-term investments | 699.6 | — | — | 699.6 | ||||||||||||||||||||||||||||
Derivative assets | 15.9 | 141.5 | — | 157.4 | ||||||||||||||||||||||||||||
Fair value investments [2] | 30.6 | 17.6 | 153.3 | 201.5 | ||||||||||||||||||||||||||||
Separate account assets | 3,316.50 | — | — | 3,316.50 | ||||||||||||||||||||||||||||
Total assets | $ | 4,064.70 | $ | 6,415.70 | $ | 5,885.80 | $ | 16,366.20 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 45.8 | $ | — | $ | 45.8 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 80.8 | 80.8 | ||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 45.8 | $ | 80.8 | $ | 126.6 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at December 31, 2012 include $126.1 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $21.9 million as of December 31, 2012. Changes in the fair value of these assets are recorded through net investment income. Additionally, $53.5 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.7 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
There were no transfers of assets between Level 1 and Level 2 during the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities as of September 30, 2013 and December 31, 2012, respectively are reported net of $27.8 million and $34.5 million of Level 2 investments included in discontinued assets on the consolidated balance sheets related to discontinued reinsurance operations. | ||||||||||||||||||||||||||||||||
The following tables present corporates carried at fair value and on a recurring basis by sector. | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | 30-Sep-13 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 920.5 | $ | 1,598.60 | $ | 2,519.10 | ||||||||||||||||||||||||
Energy | — | 433.6 | 286.6 | 720.2 | ||||||||||||||||||||||||||||
Financial services | — | 1,491.40 | 869.3 | 2,360.70 | ||||||||||||||||||||||||||||
Technical/communications | — | 268.9 | 84.1 | 353 | ||||||||||||||||||||||||||||
Transportation | — | 90.9 | 180 | 270.9 | ||||||||||||||||||||||||||||
Utilities | — | 303.1 | 562.9 | 866 | ||||||||||||||||||||||||||||
Other | — | 226.9 | 308.4 | 535.3 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,735.30 | $ | 3,889.90 | $ | 7,625.20 | ||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 1,160.30 | $ | 1,860.80 | $ | 3,021.10 | ||||||||||||||||||||||||
Energy | — | 277.8 | 142.7 | 420.5 | ||||||||||||||||||||||||||||
Financial services | — | 1,456.50 | 762.7 | 2,219.20 | ||||||||||||||||||||||||||||
Technical/communications | — | 154.7 | 44.6 | 199.3 | ||||||||||||||||||||||||||||
Transportation | — | 72.6 | 156 | 228.6 | ||||||||||||||||||||||||||||
Utilities | — | 506.5 | 631.8 | 1,138.30 | ||||||||||||||||||||||||||||
Other | — | 229.3 | 213.7 | 443 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,857.70 | $ | 3,812.30 | $ | 7,670.00 | ||||||||||||||||||||||||
Level 3 financial assets and liabilities | ||||||||||||||||||||||||||||||||
The following tables set forth a summary of changes in the fair value of our Level 3 financial assets and liabilities. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The securities which were transferred as of the end of each reporting period into Level 3 were due to decreased market observability of similar assets and/or changes to significant inputs, such as downgrades or price declines. Transfers out of Level 3 were due to increased market activity on comparable assets or observability of inputs. | ||||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 327.9 | $ | 30.4 | $ | (7.9 | ) | $ | — | $ | — | $ | — | $ | (0.6 | ) | $ | 349.8 | ||||||||||||||
State and political subdivision | 207.9 | 36.2 | (0.6 | ) | — | (3.3 | ) | — | (2.1 | ) | 238.1 | |||||||||||||||||||||
Foreign government | 15.5 | — | — | — | — | — | 0.2 | 15.7 | ||||||||||||||||||||||||
Corporate | 3,841.80 | 138.4 | (28.7 | ) | 45.2 | (1.1 | ) | (0.7 | ) | (105.0 | ) | 3,889.90 | ||||||||||||||||||||
CMBS | 116.3 | 20.1 | (6.6 | ) | — | — | 0.8 | (0.9 | ) | 129.7 | ||||||||||||||||||||||
RMBS | 634.1 | 0.5 | (30.4 | ) | 4.7 | — | (1.6 | ) | (18.6 | ) | 588.7 | |||||||||||||||||||||
CDO/CLO | 231 | 16.3 | (7.2 | ) | — | — | — | (19.4 | ) | 220.7 | ||||||||||||||||||||||
Other asset-backed | 285.1 | 16.9 | (28.0 | ) | — | (0.9 | ) | (0.3 | ) | (4.3 | ) | 268.5 | ||||||||||||||||||||
Total available-for-sale | 5,659.60 | 258.8 | (109.4 | ) | 49.9 | (5.3 | ) | (1.8 | ) | (150.7 | ) | 5,701.10 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 35.6 | 0.1 | — | — | — | — | 6.4 | 42.1 | ||||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 171 | 6.5 | (4.2 | ) | — | — | 5.2 | — | 178.5 | |||||||||||||||||||||||
Total assets | $ | 5,866.20 | $ | 265.4 | $ | (113.6 | ) | $ | 49.9 | $ | (5.3 | ) | $ | 3.4 | $ | (144.3 | ) | $ | 5,921.70 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 322.9 | $ | 0.6 | $ | (2.3 | ) | $ | — | $ | — | $ | 0.2 | $ | (0.8 | ) | $ | 320.6 | ||||||||||||||
State and political subdivision | 181.7 | 10.2 | (0.4 | ) | — | — | — | 1.4 | 192.9 | |||||||||||||||||||||||
Foreign government | 52.9 | — | — | — | — | — | 2.1 | 55 | ||||||||||||||||||||||||
Corporate | 3,702.20 | 88.4 | (10.2 | ) | — | (18.8 | ) | — | (28.4 | ) | 3,733.20 | |||||||||||||||||||||
CMBS | 99.2 | — | — | — | — | — | (25.5 | ) | 73.7 | |||||||||||||||||||||||
RMBS | 857.5 | 3.8 | (9.1 | ) | — | — | (0.4 | ) | (19.0 | ) | 832.8 | |||||||||||||||||||||
CDO/CLO | 207.6 | — | (5.5 | ) | — | — | 0.5 | 13.9 | 216.5 | |||||||||||||||||||||||
Other asset-backed | 297.5 | 3.5 | (5.9 | ) | 32.5 | — | (0.5 | ) | (6.1 | ) | 321 | |||||||||||||||||||||
Total available-for-sale | 5,721.50 | 106.5 | (33.4 | ) | 32.5 | (18.8 | ) | (0.2 | ) | (62.4 | ) | 5,745.70 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 36 | — | — | — | — | (1.5 | ) | (5.2 | ) | 29.3 | ||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 159.3 | 1.8 | (10.2 | ) | — | (1.4 | ) | 14.6 | — | 164.1 | ||||||||||||||||||||||
Total assets | $ | 5,916.80 | $ | 108.3 | $ | (43.6 | ) | $ | 32.5 | $ | (20.2 | ) | $ | 12.9 | $ | (67.6 | ) | $ | 5,939.10 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 296.7 | $ | 78.8 | $ | (11.7 | ) | $ | — | $ | — | $ | — | $ | (14.0 | ) | $ | 349.8 | ||||||||||||||
State and political subdivision | 212.4 | 59.5 | (2.2 | ) | — | — | — | (31.6 | ) | 238.1 | ||||||||||||||||||||||
Foreign government | 45.8 | — | — | 8 | (31.3 | ) | — | (6.8 | ) | 15.7 | ||||||||||||||||||||||
Corporate | 3,812.30 | 547.1 | (60.3 | ) | 95.5 | (41.3 | ) | (2.1 | ) | (461.3 | ) | 3,889.90 | ||||||||||||||||||||
CMBS | 89.7 | 60.3 | (9.8 | ) | — | (8.7 | ) | (1.2 | ) | (0.6 | ) | 129.7 | ||||||||||||||||||||
RMBS | 709.3 | 1.7 | (72.1 | ) | 5.1 | — | (3.6 | ) | (51.7 | ) | 588.7 | |||||||||||||||||||||
CDO/CLO | 223.7 | 61.4 | (20.1 | ) | — | — | (0.4 | ) | (43.9 | ) | 220.7 | |||||||||||||||||||||
Other asset-backed | 309.9 | 17.9 | (21.4 | ) | — | (1.3 | ) | (0.4 | ) | (36.2 | ) | 268.5 | ||||||||||||||||||||
Total available-for-sale | 5,699.80 | 826.7 | (197.6 | ) | 108.6 | (82.6 | ) | (7.7 | ) | (646.1 | ) | 5,701.10 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 32.7 | 5 | (2.3 | ) | — | — | — | 6.7 | 42.1 | |||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 153.3 | 25.8 | (10.2 | ) | 1.3 | — | 8.3 | — | 178.5 | |||||||||||||||||||||||
Total assets | $ | 5,885.80 | $ | 857.5 | $ | (210.1 | ) | $ | 109.9 | $ | (82.6 | ) | $ | 0.6 | $ | (639.4 | ) | $ | 5,921.70 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except limited partnerships and other investments and fair value investments. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 336.2 | $ | 2.6 | $ | (13.9 | ) | $ | — | $ | — | $ | 0.2 | $ | (4.5 | ) | $ | 320.6 | ||||||||||||||
State and political subdivision | 116.6 | 40.5 | (2.5 | ) | 22.2 | (8.3 | ) | — | 24.4 | 192.9 | ||||||||||||||||||||||
Foreign government | 51.8 | 5 | (0.1 | ) | — | — | — | (1.7 | ) | 55 | ||||||||||||||||||||||
Corporate | 3,501.50 | 457.6 | (65.8 | ) | 56.3 | (122.4 | ) | (0.5 | ) | (93.5 | ) | 3,733.20 | ||||||||||||||||||||
CMBS | 100.6 | — | (8.2 | ) | 12.1 | (37.1 | ) | (4.2 | ) | 10.5 | 73.7 | |||||||||||||||||||||
RMBS | 944.2 | 2.9 | (94.6 | ) | — | — | (6.7 | ) | (13.0 | ) | 832.8 | |||||||||||||||||||||
CDO/CLO | 232.4 | 9.9 | (18.6 | ) | — | — | 1.3 | (8.5 | ) | 216.5 | ||||||||||||||||||||||
Other asset-backed | 335.5 | 17.2 | (26.4 | ) | 0.1 | (11.4 | ) | (1.5 | ) | 7.5 | 321 | |||||||||||||||||||||
Total available-for-sale | 5,618.80 | 535.7 | (230.1 | ) | 90.7 | (179.2 | ) | (11.4 | ) | (78.8 | ) | 5,745.70 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 29.4 | 5.6 | — | 4.8 | — | (1.5 | ) | (9.0 | ) | 29.3 | ||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 144.8 | 26.3 | (9.0 | ) | — | — | 2 | — | 164.1 | |||||||||||||||||||||||
Total assets | $ | 5,793.00 | $ | 567.6 | $ | (239.1 | ) | $ | 95.5 | $ | (179.2 | ) | $ | (10.9 | ) | $ | (87.8 | ) | $ | 5,939.10 | ||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except limited partnerships and other investments and fair value investments. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Liabilities: | Embedded Derivative Liabilities | |||||||||||||||||||||||||||||||
($ in millions) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | 77.6 | $ | 89.3 | $ | 80.8 | $ | 84.5 | ||||||||||||||||||||||||
Net purchases/(sales) | 4.1 | 2.2 | 6.6 | 6.8 | ||||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Realized (gains) losses [1] | (8.9 | ) | (7.1 | ) | (14.6 | ) | (6.9 | ) | ||||||||||||||||||||||||
Balance, end of period | $ | 72.8 | $ | 84.4 | $ | 72.8 | $ | 84.4 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Realized gains and losses are included in net realized investment gains on the consolidated statements of income and comprehensive income. | |||||||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurement of Level 3 assets are yield, prepayment rate, default rate, recovery rate and reinvestment spread. Keeping other inputs unchanged, an increase in yield, default rate or prepayment rate would decrease the fair value of the asset while an increase in recovery rate or reinvestment spread would result in an increase to the fair value of the asset. Yields are a function of the underlying U.S. Treasury rates and asset spreads, and changes in default and recovery rates are dependent on overall market conditions. | ||||||||||||||||||||||||||||||||
The following table presents quantitative estimates about unobservable inputs used in the fair value measurement of significant categories of internally priced assets. | ||||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Fair | Valuation | Unobservable | ||||||||||||||||||||||||||||||
Value | Technique(s) | Input | Range (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 349.8 | Discounted cash flow | Yield | 1.08%-5.40% (3.46%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 108 | Discounted cash flow | Yield | 2.28%-4.23% (3.55%) | |||||||||||||||||||||||||||
Corporate | $ | 2,922.90 | Discounted cash flow | Yield | 1.08%-6.44% (3.34%) | |||||||||||||||||||||||||||
Other asset-backed | $ | 48.3 | Discounted cash flow | Yield | 0.8%-4.42% (2.35%) | |||||||||||||||||||||||||||
Prepayment rate | 2% | |||||||||||||||||||||||||||||||
Default rate | 2.53% for 48 mos then .37% thereafter | |||||||||||||||||||||||||||||||
Recovery rate | 10% (TRUPS) | |||||||||||||||||||||||||||||||
Fair value investments | $ | 5.2 | Discounted cash flow | Default rate | 0.35% | |||||||||||||||||||||||||||
Recovery rate | 45% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Fair | Valuation | Unobservable | ||||||||||||||||||||||||||||||
Value | Technique(s) | Input | Range (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 286.1 | Discounted cash flow | Yield | 1.46%-5.19% (3.20%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 107.4 | Discounted cash flow | Yield | 1.94%-3.53% (2.94%) | |||||||||||||||||||||||||||
Corporate | $ | 2,888.90 | Discounted cash flow | Yield | 1.36%-7.82% (3.00%) | |||||||||||||||||||||||||||
CDO/CLO | $ | 15.5 | Discounted cash flow | Prepayment rate | 20% (CLOs) | |||||||||||||||||||||||||||
Default rate | 2.55% (CLOs) | |||||||||||||||||||||||||||||||
Recovery rate | 65% (Loans), 35% (High yield bonds), | |||||||||||||||||||||||||||||||
45% (investment grade bonds) | ||||||||||||||||||||||||||||||||
Reinvestment spread | 3 mo LIBOR + 400bps (CLOs) | |||||||||||||||||||||||||||||||
Other asset-backed | $ | 43.5 | Discounted cash flow | Yield | 0.5%-9.5% (3.41%) | |||||||||||||||||||||||||||
Prepayment rate | 2% | |||||||||||||||||||||||||||||||
Default rate | 2.53% for 48 mos then .33% thereafter | |||||||||||||||||||||||||||||||
Recovery rate | 10% (TRUPS) | |||||||||||||||||||||||||||||||
Fair value investments | $ | 5 | Discounted cash flow | Default rate | 0.24% | |||||||||||||||||||||||||||
Recovery rate | 45% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurement of variable annuity GMAB and GMWB liabilities are equity volatility, swap curve, mortality and lapse rates and an adjustment for non-performance risk. Keeping other inputs unchanged, an increase in the equity volatility would increase the fair value of the liability while an increase in the swap curve or CSA would result in a decrease to the fair value of the liability. The impact of changes in mortality and lapse rates are dependent on overall market conditions. The fair value of fixed indexed annuity and indexed universal life embedded derivative related to index credits is calculated using the swap curve, mortality and lapse rates, as well as an adjustment for non-performance risk. Keeping other inputs unchanged, an increase in any of these significant unobservable inputs would result in a decrease of the fixed indexed annuity embedded derivative liability. | ||||||||||||||||||||||||||||||||
The following table presents quantitative estimates about unobservable inputs used in the fair value measurement of internally priced liabilities. | ||||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input | Range | |||||||||||||||||||||||||||||
Embedded derivatives | $ | 69 | Budget method | Swap curve | 0.22% - 3.46% | |||||||||||||||||||||||||||
(FIA) | Mortality rate | 75% of A2000 basic table | ||||||||||||||||||||||||||||||
Lapse rate | 0.60% - 35.00% | |||||||||||||||||||||||||||||||
CSA | 3.99% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | 3.8 | Risk neutral stochastic valuation methodology | Volatility surface | 11.46% - 51.22% | |||||||||||||||||||||||||||
(GMAB / GMWB) | ||||||||||||||||||||||||||||||||
Swap curve | 0.14% - 3.88% | |||||||||||||||||||||||||||||||
Mortality rate | 75% of A2000 basic table | |||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 60.00% | |||||||||||||||||||||||||||||||
CSA | 3.99% | |||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input | Range | |||||||||||||||||||||||||||||
Embedded derivatives | $ | 51.2 | Budget method | Swap curve | 0.21% - 2.50% | |||||||||||||||||||||||||||
(FIA) | Mortality rate | 75% of A2000 basic table | ||||||||||||||||||||||||||||||
Lapse rate | 1.00% - 35.00% | |||||||||||||||||||||||||||||||
CSA | 4.47% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | 29.6 | Risk neutral stochastic valuation methodology | Volatility surface | 11.67% - 50.83% | |||||||||||||||||||||||||||
(GMAB / GMWB) | ||||||||||||||||||||||||||||||||
Swap curve | 0.36% - 3.17% | |||||||||||||||||||||||||||||||
Mortality rate | 75% of A2000 basic table | |||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 60.00% | |||||||||||||||||||||||||||||||
CSA | 4.47% | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Internal [1] | External [2] | Total | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 349.8 | $ | — | $ | 349.8 | ||||||||||||||||||||||||||
State and political subdivision | 108 | 130.1 | 238.1 | |||||||||||||||||||||||||||||
Foreign government | — | 15.7 | 15.7 | |||||||||||||||||||||||||||||
Corporate | 2,922.90 | 967 | 3,889.90 | |||||||||||||||||||||||||||||
CMBS | — | 129.7 | 129.7 | |||||||||||||||||||||||||||||
RMBS | — | 588.7 | 588.7 | |||||||||||||||||||||||||||||
CDO/CLO | — | 220.7 | 220.7 | |||||||||||||||||||||||||||||
Other asset-backed | 48.3 | 220.2 | 268.5 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,429.00 | 2,272.10 | 5,701.10 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 42.1 | 42.1 | |||||||||||||||||||||||||||||
Short-term investments | — | — | — | |||||||||||||||||||||||||||||
Fair value investments | 5.2 | 173.3 | 178.5 | |||||||||||||||||||||||||||||
Total assets | $ | 3,434.20 | $ | 2,487.50 | $ | 5,921.70 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 72.8 | $ | — | $ | 72.8 | ||||||||||||||||||||||||||
Total liabilities | $ | 72.8 | $ | — | $ | 72.8 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Internal [1] | External [2] | Total | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 286.1 | $ | 10.6 | $ | 296.7 | ||||||||||||||||||||||||||
State and political subdivision | 107.4 | 105 | 212.4 | |||||||||||||||||||||||||||||
Foreign government | — | 45.8 | 45.8 | |||||||||||||||||||||||||||||
Corporate | 2,888.90 | 923.4 | 3,812.30 | |||||||||||||||||||||||||||||
CMBS | — | 89.7 | 89.7 | |||||||||||||||||||||||||||||
RMBS | — | 709.3 | 709.3 | |||||||||||||||||||||||||||||
CDO/CLO | 15.5 | 208.2 | 223.7 | |||||||||||||||||||||||||||||
Other asset-backed | 43.5 | 266.4 | 309.9 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,341.40 | 2,358.40 | 5,699.80 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 32.7 | 32.7 | |||||||||||||||||||||||||||||
Short-term investments | — | — | — | |||||||||||||||||||||||||||||
Fair value investments | 5 | 148.3 | 153.3 | |||||||||||||||||||||||||||||
Total assets | $ | 3,346.40 | $ | 2,539.40 | $ | 5,885.80 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 80.8 | $ | — | $ | 80.8 | ||||||||||||||||||||||||||
Total liabilities | $ | 80.8 | $ | — | $ | 80.8 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Financial instruments not carried at fair value | ||||||||||||||||||||||||||||||||
The Company is required by U.S. GAAP to disclose the fair value of certain financial instruments including those that are not carried at fair value. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ: | ||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values | As of | As of | ||||||||||||||||||||||||||||||
of Financial Instruments: | Fair Value | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
($ in millions) | Hierarchy | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||
Level | Value | Value | Value | Value | ||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Policy loans | Level 3 | $ | 2,329.90 | $ | 2,317.90 | $ | 2,354.70 | $ | 2,342.80 | |||||||||||||||||||||||
Cash and cash equivalents | Level 1 | 492.8 | 492.8 | 246.4 | 246.4 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Investment contracts | Level 3 | $ | 3,328.60 | $ | 3,323.40 | $ | 3,040.70 | $ | 3,045.90 | |||||||||||||||||||||||
Surplus notes | Level 3 | 126.1 | 93.3 | 126.1 | 95 | |||||||||||||||||||||||||||
Senior unsecured bonds | Level 2 | 252.7 | 234 | 252.7 | 217.1 | |||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Income Taxes | |
It is our policy to estimate taxes for interim periods based on estimated annual effective tax rates which are derived, in part, from expected annual pre-tax income. However, the change in the deferred income balances, income tax benefit and expense and related valuation allowance for the three months ended September 30, 2013 have been computed based on the first nine months of 2013 as a discrete period. | |
The tax expense of $9.2 million for the three months ended September 30, 3013 is comprised entirely of current taxes. The tax expense of $12.1 million for the nine months ended September 30, 3013 is comprised entirely of current taxes. | |
We recorded a deferred tax asset, net of deferred tax liabilities and valuation allowances, of $66.0 million as of September 30, 2013. Consistent with the prior period, the deferred tax asset not offset by a valuation allowance relates to gross unrealized losses on available-for-sale debt securities. For the three months ended September 30, 2013, we recognized a net increase in the valuation allowance of $6.8 million. For the nine months ended September 30, 2013, we recognized a net increase in the valuation allowance of $49.5 million. Accounting guidance requires that changes in the valuation allowance be allocated to various financial statement components of income or loss. | |
We have concluded that a valuation allowance on the deferred tax assets attributable to available-for-sale debt securities with gross unrealized losses was not required due to our ability and intent to hold these securities until recovery of fair value or contractual maturity, thereby avoiding realization of taxable capital losses. This conclusion is consistent with prior periods. | |
The Company and its subsidiaries file consolidated, combined, unitary or separate income tax returns in the U.S. federal, various state and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2011. | |
Based upon the timing and status of our current examinations by taxing authorities, we do not believe that it is reasonably possible that any changes to the balance of unrecognized tax benefits occurring within the next 12 months will result in a significant change to the results of operations, financial condition or liquidity. In addition, we do not anticipate that there will be additional payments made or refunds received within the next 12 months with respect to the years under audit. We do not anticipate any increases to the existing unrecognized tax benefits that would have a significant impact on the financial position of the Company. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
Changes in each component of AOCI attributable to the Company for the periods ended September 30 are as follows below (net of tax): | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Net Unrealized | |||||||||||||||
Attributable to The Phoenix Companies, Inc.: | Gains / (Losses) | |||||||||||||||
($ in millions) | on Investments | Net Unrealized | Net | |||||||||||||
where Credit- | Gains / (Losses) | Pension | ||||||||||||||
related OTTI | on All Other | Liability | ||||||||||||||
was Recognized [1] | Investments [1] | Adjustments | Total | |||||||||||||
Balance as of December 31, 2011 | $ | (35.1 | ) | $ | 104 | $ | (299.6 | ) | $ | (230.7 | ) | |||||
Change in component during the period before reclassification | 27.5 | (28.7 | ) | (0.1 | ) | (1.3 | ) | |||||||||
Balance as of September 30, 2012 | $ | (7.6 | ) | $ | 75.3 | $ | (299.7 | ) | $ | (232.0 | ) | |||||
Balance as of December 31, 2012 | $ | (6.2 | ) | $ | 77.9 | $ | (321.0 | ) | $ | (249.3 | ) | |||||
Change in component during the period before reclassification | 18.3 | (23.2 | ) | 3.9 | (1.0 | ) | ||||||||||
Amounts reclassified from AOCI | (3.1 | ) | (10.6 | ) | 5.1 | (8.6 | ) | |||||||||
Balance as of September 30, 2013 | $ | 9 | $ | 44.1 | $ | (312.0 | ) | $ | (258.9 | ) | ||||||
——————— | ||||||||||||||||
[1] | See Note 7 to these financial statements for additional information regarding offsets to net unrealized investment gains and losses which include policyholder dividend obligation, DAC and other actuarial offsets, and deferred income tax expense (benefit). | |||||||||||||||
Reclassifications from AOCI consist of the following: | ||||||||||||||||
AOCI | Amounts Reclassified from AOCI | Affected Line Item in the | ||||||||||||||
Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
($ in millions) | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||
Net unrealized gains / (losses) on investments where | ||||||||||||||||
credit-related OTTI was recognized | ||||||||||||||||
Available-for-sale securities | $ | 2.2 | $ | 4.8 | Net realized capital gains (losses) | |||||||||||
2.2 | 4.8 | Total before income taxes | ||||||||||||||
0.8 | 1.7 | Income tax expense | ||||||||||||||
$ | 1.4 | $ | 3.1 | Net income (loss) | ||||||||||||
Net unrealized investment gains / (losses) on | ||||||||||||||||
all other investments | ||||||||||||||||
Available-for-sale securities | $ | 14.9 | $ | 16.3 | Net realized capital gains (losses) | |||||||||||
14.9 | 16.3 | Total before income taxes | ||||||||||||||
5.2 | 5.7 | Income tax expense | ||||||||||||||
$ | 9.7 | $ | 10.6 | Net income (loss) | ||||||||||||
Net pension liability adjustment | ||||||||||||||||
Net gain amortization | $ | (2.9 | ) | $ | (8.7 | ) | Other operating expense | |||||||||
Prior service cost amortization | 0.3 | 0.9 | Other operating expense | |||||||||||||
(2.6 | ) | (7.8 | ) | Total before income taxes | ||||||||||||
(0.9 | ) | (2.7 | ) | Income tax expense | ||||||||||||
$ | (1.7 | ) | $ | (5.1 | ) | Net income (loss) | ||||||||||
Total amounts reclassified from AOCI | $ | 9.4 | $ | 8.6 | Net income (loss) | |||||||||||
Employee_Benefit_Plans_and_Emp
Employee Benefit Plans and Employment Agreements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Employee Benefit Plans and Employment Agreements | ' | |||||||||||||||
Employee Benefit Plans and Employment Agreements | ||||||||||||||||
Pension and other post-employment benefits | ||||||||||||||||
We provide our employees with post-employment benefits that include retirement benefits, through pension and savings plans, and other benefits, including health care and life insurance. The components of pension and post-employment benefit costs follow: | ||||||||||||||||
Components of Pension Benefit Costs: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 0.5 | $ | 0.2 | $ | 1.5 | $ | 0.7 | ||||||||
Interest cost | 8.2 | 8.7 | 24.6 | 26.1 | ||||||||||||
Expected return on plan assets | (9.0 | ) | (8.6 | ) | (27.0 | ) | (25.7 | ) | ||||||||
Net loss amortization | 2.9 | 2.6 | 8.7 | 7.8 | ||||||||||||
Pension benefit cost | $ | 2.6 | $ | 2.9 | $ | 7.8 | $ | 8.9 | ||||||||
Components of Other Post-employment Benefit Costs: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | — | $ | 0.1 | $ | — | $ | 0.2 | ||||||||
Interest cost | 0.3 | 0.5 | 0.9 | 1.4 | ||||||||||||
Net gain amortization | — | — | — | (0.1 | ) | |||||||||||
Prior service cost amortization | (0.3 | ) | (0.4 | ) | (0.9 | ) | (1.2 | ) | ||||||||
Other post-employment benefit cost | $ | — | $ | 0.2 | $ | — | $ | 0.3 | ||||||||
For the three months ended September 30, 2013, other comprehensive loss included unrealized gains of $1.7 million, net of taxes, relating to the amortization of net prior service costs and net gains/losses. For the nine months ended September 30, 2013, other comprehensive loss included unrealized gains of $5.1 million, net of taxes, relating to the amortization of net prior service costs and net gains/losses. Effective March 31, 2010, all benefit accruals under all of our funded and unfunded defined benefit plans were frozen. | ||||||||||||||||
During the three months ended September 30, 2013, we made contributions of $8.1 million to the pension plan. During the nine months ended September 30, 2013, we made contributions of $11.4 million to the pension plan. We expect to make no additional contributions to the pension plan by December 31, 2013. On July 6, 2012, the Surface Transportation Extension Act of 2012, Part II, was enacted into law and is effective immediately. The law includes certain pension funding stabilization provisions, which the Company took advantage of in 2012. | ||||||||||||||||
Savings plans | ||||||||||||||||
During the three months ended September 30, 2013 and 2012, we incurred costs of $0.9 million and $0.8 million, respectively, for contributions to our savings plans. During the nine months ended September 30, 2013 and 2012, we incurred costs of $3.2 million and $3.2 million, respectively, for contributions to our savings plans. | ||||||||||||||||
Effective April 1, 2010, employees (except Saybrus employees) are eligible to receive an employer discretionary contribution according to the plan terms. |
ShareBased_Payments
Share-Based Payments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Share-based Payments | ' | |||||||||||||||
Share-Based Payments | ||||||||||||||||
We provide share-based compensation to certain of our employees and non-employee directors, as further described below. The compensation cost that has been charged against income for these plans is summarized in the following table: | ||||||||||||||||
Share-Based Compensation Plans: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Compensation cost charged to income from | $ | 0.2 | $ | 0.7 | $ | 2.7 | $ | 2.7 | ||||||||
continuing operations | ||||||||||||||||
Income tax expense (benefit) before valuation allowance | $ | (0.1 | ) | $ | (0.2 | ) | $ | (0.9 | ) | $ | (0.9 | ) | ||||
We did not capitalize any of the cost of stock-based compensation during the three and nine month periods ended September 30, 2013 and 2012. In satisfaction of stock-based compensation, shares issued may be made available from authorized but unissued shares or shares may be purchased on the open market. | ||||||||||||||||
Stock options | ||||||||||||||||
As of September 30, 2013, 85,344 of outstanding stock options were exercisable, with a weighted-average exercise price of $191.22 per share. There were 0 options granted during the nine months ended September 30, 2013. | ||||||||||||||||
Restricted stock units | ||||||||||||||||
During the three months ended September 30, 2013, 3,641 director RSUs were awarded. As of September 30, 2013, there were 82,567 time-vested RSUs outstanding with a weighted-average grant price of $48.40 and 17,024 performance-vested RSUs outstanding with a weighted-average grant price of $55.07. | ||||||||||||||||
Liability awards | ||||||||||||||||
The Company issues awards that are intended to be settled in cash. As a result, these awards are remeasured at the end of each reporting period until settlement. As of September 30, 2013, a liability of $3.3 million was accrued for these awards. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
Earnings Per Share | ||||||||||||
The following table presents a reconciliation of shares used in calculating basic earnings (loss) per common share to those used in calculating diluted earnings (loss) per common share. | ||||||||||||
Shares Used in Calculation of Earnings Per Share: [1] | Three Months Ended | Nine Months Ended | ||||||||||
(shares in thousands) | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted-average common shares outstanding | 5,742 | 5,749 | 5,742 | 5,792 | ||||||||
Weighted-average effect of dilutive potential common shares: | ||||||||||||
Restricted stock units | 17 | 77 | 31 | 76 | ||||||||
Employee stock options | 2 | 2 | 2 | — | ||||||||
Potential common shares | 19 | 79 | 33 | 76 | ||||||||
Less: Potential common shares excluded from | 19 | 79 | 33 | 76 | ||||||||
calculation due to net losses | ||||||||||||
Dilutive potential common shares | — | — | — | — | ||||||||
Weighted-average common shares outstanding, | 5,742 | 5,749 | 5,742 | 5,792 | ||||||||
including dilutive potential common shares | ||||||||||||
——————— | ||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 9 to these financial statements for additional information on the reverse stock split. | |||||||||||
As a result of the net loss from continuing operations for the three and nine months ended September 30, 2013 and 2012, we are required to use basic weighted-average common shares outstanding in the calculation of diluted earnings per share for those periods, since the inclusion of shares of restricted stock units and options would have been anti-dilutive to the earnings per share calculation. | ||||||||||||
On August 10, 2012, a 1-for-20 reverse stock split became effective and an odd lot program was subsequently instituted following the 1-for-20 reverse stock split. The odd lot program terminated as of October 26, 2012. | ||||||||||||
The reverse stock split reduced the shares of common stock outstanding from approximately 116.0 million to approximately 5.8 million. All weighted-average common shares outstanding for the three and nine months ended September 30, 2012, have been adjusted to reflect the 1-for-20 reverse stock split. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
In managing our business, we analyze segment performance on the basis of operating income. Operating income, as well as components of and financial measures derived from operating income, are non-U.S. GAAP financial measures. | ||||||||||||||||
Management believes that these measures provide additional insight into the underlying trends in our operations and are the internal performance measures we use in the management of our operations, including our compensation plans and planning processes. However, our non-U.S. GAAP financial measures should not be considered as substitutes for net income or measures that are derived from or incorporate net income and may be different from similarly titled measures of other companies. Investors should evaluate both U.S. GAAP and non-U.S. GAAP financial measures when reviewing our performance. Operating income is calculated by excluding realized investment gains (losses) as their amount and timing may be subject to management’s investment decisions. | ||||||||||||||||
Segment Information | Three Months Ended | Nine Months Ended | ||||||||||||||
on Revenues: | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Life and Annuity [1] | $ | 428 | $ | 474.8 | $ | 1,235.90 | $ | 1,342.70 | ||||||||
Saybrus Partners [2] | 6.3 | 5.9 | 18.4 | 16.1 | ||||||||||||
Less: Intercompany revenues [3] | 2.1 | 2.6 | 6.7 | 8.3 | ||||||||||||
Total revenues | $ | 432.2 | $ | 478.1 | $ | 1,247.60 | $ | 1,350.50 | ||||||||
——————— | ||||||||||||||||
[1] | Includes intercompany interest revenue of $0.1 million and $0.2 million for the three months ended September 30, 2013 and 2012 and $0.3 million and $0.5 million for the nine months ended September 30, 2013 and 2012. | |||||||||||||||
[2] | Includes intercompany commission revenue of $2.2 million and $2.8 million for the three months ended September 30, 2013 and 2012 and $7.0 million and $8.8 million for the nine months ended September 30, 2013 and 2012. | |||||||||||||||
[3] | All intercompany balances are eliminated in consolidating the financial statements. | |||||||||||||||
Life and Annuity derives revenue from premiums, fee income and COI charges and net investment income. Saybrus derives revenue primarily from fees collected for advisory and distribution services. | ||||||||||||||||
Results of Operations by Segment as Reconciled to | Three Months Ended | Nine Months Ended | ||||||||||||||
Consolidated Net Income (Loss): | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Life and Annuity operating loss | $ | (21.6 | ) | $ | (136.8 | ) | $ | (110.4 | ) | $ | (150.5 | ) | ||||
Saybrus Partners operating income | 0.6 | 0.5 | 1.3 | 0.9 | ||||||||||||
Less: Applicable income tax expense (benefit) | 9.2 | (4.9 | ) | 12.1 | (1.0 | ) | ||||||||||
Loss from discontinued operations, net of income taxes | 0.3 | (6.0 | ) | (1.7 | ) | (12.0 | ) | |||||||||
Net realized investment gains (losses) | 8 | 27.5 | (0.7 | ) | 1.6 | |||||||||||
Gain on debt repurchase | — | 11.9 | — | 11.9 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | 0.8 | (0.3 | ) | 0.6 | ||||||||||
Net income (loss) | $ | (21.8 | ) | $ | (98.8 | ) | $ | (123.3 | ) | $ | (147.7 | ) | ||||
We have not provided asset information for the segments. The assets attributable to Saybrus are not significant relative to the assets of our consolidated balance sheets and are not utilized by the chief operating decision maker. All third-party interest revenue and interest expense of the Company reside within the Life and Annuity segment. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Discontinued Operations | ' |
Discontinued Operations | |
PFG Holdings, Inc. | |
On January 4, 2010, we signed a definitive agreement to sell PFG and its subsidiaries, including AGL Life Assurance Company, to Tiptree. Because of the divestiture, these operations are reflected as discontinued operations. On June 23, 2010, we completed the divestiture of PFG and closed the transaction. | |
There were no assets or liabilities on the consolidated balance sheets identified as discontinued operations related to PFG at September 30, 2013 and December 31, 2012. | |
Net losses of $0 and $3.9 million were recognized during the three months ended September 30, 2013 and 2012, respectively, primarily related to accrued legal fees attributable to these matters. Net losses of $0.9 million and $4.9 million were recognized during the nine months ended September 30, 2013 and 2012, respectively, primarily related to accrued legal fees attributable to these matters. | |
Discontinued Reinsurance Operations | |
In 1999, we discontinued our reinsurance operations through a combination of sale, reinsurance and placement of certain retained group accident and health reinsurance business into run-off. We adopted a formal plan to stop writing new contracts covering these risks and to end the existing contracts as soon as those contracts would permit. However, we remain liable for claims under contracts which have not been commuted. | |
We have established reserves for claims and related expenses that we expect to pay on our discontinued group accident and health reinsurance business. These reserves are based on currently known facts and estimates about, among other things, the amount of insured losses and expenses that we believe we will pay, the period over which they will be paid, the amount of reinsurance we believe we will collect from our retrocessionaires and the likely legal and administrative costs of winding down the business. Net income of $0.4 million and net losses of $0.7 million were recognized during the three and nine months ended September 30, 2013 primarily due to normal run-off activity. Net losses of $2.1 million and $7.1 million were recognized during the three and nine months ended September 30, 2012 as a result of an increase in reserves reported to us by certain ceding companies. See Note 20 to these financial statements for additional discussion on remaining liabilities of our discontinued reinsurance operations. |
Contingent_Liabilities
Contingent Liabilities | 9 Months Ended | ||
Sep. 30, 2013 | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ||
Contingent Liabilities | ' | ||
Contingent Liabilities | |||
Litigation and arbitration | |||
The Company is regularly involved in litigation and arbitration, both as a defendant and as a plaintiff. The litigation and arbitration naming the Company as a defendant ordinarily involves our activities as an insurer, employer, investor, investment advisor or taxpayer. | |||
It is not feasible to predict or determine the ultimate outcome of all legal or arbitration proceedings or to provide reasonable ranges of potential losses. Management of the Company believes that the outcome of our litigation and arbitration matters are not likely, either individually or in the aggregate, to have a material adverse effect on the financial condition of the Company. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation and arbitration, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on the results of operations or cash flows in particular quarterly or annual periods. | |||
SEC Cease-and-Desist Order | |||
On February 12, 2014, Phoenix and PHL Variable submitted an Offer of Settlement with the Securities and Exchange Commission (the “SEC”) pursuant to which Phoenix and PHL Variable consented to the issuance of the form of an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (the “March 2014 Order”). The March 2014 Order was approved by the SEC on March 21, 2014. Pursuant to the March 2014 Order, Phoenix and PHL Variable have been directed to cease and desist from committing or causing any violations and any future violations of Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder and Section 15(d) of the Exchange Act and Rules 15d-1 and 15d-13 thereunder. Phoenix and PHL Variable each paid a civil monetary penalty in the amount of $375,000 to the U.S. Treasury following the entry of the March 2014 Order. | |||
Phoenix filed the 2012 Form 10-K a day after the date required by the March 2014 Order, filed its third quarter 2012 Form 10-Q eight days after the date required by the March 2014 Order, and announced on June 3, 2014 that it would not file its 2013 Annual Report on Form 10-K by the date required by the March 2014 Order. PHL Variable filed its 2012 Form 10-K ten days after the date required by the March 2014 Order and announced on June 3, 2014 that it would not file its 2013 Annual Report on Form 10-K by the date required by the March 2014 Order. PHL Variable filed its third quarter 2012 Form 10-Q in compliance with the March 2014 Order. | |||
On July 16, 2014, Phoenix and PHL Variable submitted an Amended Offer of Settlement with the SEC (the “Amended Offer”) pursuant to which Phoenix and PHL Variable consented to the issuance of the form of an Order Amending Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (the “Amended Order”). Except as amended by the Amended Order, which was approved by the SEC on August 1, 2014, the March 2014 Order remains in effect. Phoenix and PHL Variable each paid a civil monetary penalty in the amount of $100,000 to the U.S. Treasury following the entry of the Amended Order, and will be required to pay the following additional monetary penalties with respect to a future late filing of any Phoenix or PHL Variable periodic report covered by the Amended Order: $20,000 per filing for the first week in which a filing is delinquent, plus, for each week or partial week thereafter an additional amount equal to the sum of a) $20,000 and b) $5,000 multiplied by the number of complete weeks that the filing has been delinquent before the week in which the late filing is made. | |||
The following table sets forth the deadlines in the Amended Order for Phoenix’s SEC periodic reports: | |||
Phoenix Timetable of SEC Periodic Reports | |||
Form | Period | Amended Deadline | |
10-K | Year ended December 31, 2013 | 6-Aug-14 | |
10-Q | Quarterly Period ended March 31, 2013 | 10-Sep-14 | |
10-Q | Quarterly Period ended June 30, 2013 | 10-Sep-14 | |
10-Q | Quarterly Period ended September 30, 2013 | 10-Sep-14 | |
10-Q | Quarterly Period ended March 31, 2014 | 17-Oct-14 | |
10-Q | Quarterly Period ended June 30, 2014 | 24-Oct-14 | |
10-Q | Quarterly Period ended September 30, 2014 | 5-Dec-14 | |
As of the date of filing of this Form 10-Q, Phoenix believes it will become a timely filer with the filing of its Annual Report on Form 10-K for the year ending December 31, 2014. Phoenix filed its Annual Report on Form10-K for the year ended December 31, 2013 on August 6, 2014 with the SEC in compliance with the Amended Order. This Form 10-Q is being filed in compliance with the Amended Order. | |||
The following table sets forth the deadlines in the Amended Order for PHL Variable’s SEC periodic reports: | |||
PHL Variable Timetable of SEC Periodic Reports | |||
Form | Period | Amended Deadline | |
10-K | Year ended December 31, 2013 | 22-Aug-14 | |
10-Q | Quarterly Period ended March 31, 2013 | 12-Sep-14 | |
10-Q | Quarterly Period ended June 30, 2013 | 12-Sep-14 | |
10-Q | Quarterly Period ended September 30, 2013 | 12-Sep-14 | |
10-Q | Quarterly Period ended March 31, 2014 | 21-Oct-14 | |
10-Q | Quarterly Period ended June 30, 2014 | 28-Oct-14 | |
10-Q | Quarterly Period ended September 30, 2014 | 12-Dec-14 | |
As of the date of filing of this Form 10-Q, PHL Variable believes it will become a timely filer with the filing of its Annual Report on Form 10-K for the year ending December 31, 2014. PHL Variable filed its Annual Report on Form 10-K for the year ended December 31, 2013 with the SEC on August 22, 2014 in compliance with the Amended Order. | |||
Cases Brought by Policy Investors | |||
On June 5, 2012, Wilmington Savings Fund Society, FSB, as successor in interest to Christiana Bank & Trust Company and as trustee of 60 unnamed trusts, filed suit against Phoenix, Phoenix Life and PHL Variable in the United States District Court for the Central District of California; the case was later transferred to the District of Delaware (C.A. No. 13-499-RGA) by order dated March 28, 2013. After the plaintiffs twice amended their complaint, and dropped Phoenix as a defendant and dropped one of the plaintiff Trusts, the court issued an order on April 9, 2014 dismissing seven of the ten counts, and partially dismissing two more, with prejudice. The court dismissed claims alleging that Phoenix Life and PHL Variable committed RICO violations and fraud by continuing to collect premiums while concealing an intent to later deny death claims. The claims that remain in the case seek a declaration that the policies at issue are valid, and damages relating to cost of insurance increases. We believe we have meritorious defenses against this lawsuit and we intend to vigorously defend against these claims. The outcome of this litigation and any potential losses are uncertain. | |||
On August 2, 2012, Lima LS PLC filed a complaint against Phoenix, Phoenix Life, PHL Variable, James D. Wehr, Philip K. Polkinghorn, Edward W. Cassidy, Dona D. Young and other unnamed defendants in the United States District Court for the District of Connecticut (Case No. CV12-01122). On July 1, 2013, the defendants’ motion to dismiss the complaint was granted in part and denied in part. Thereafter, on July 31, 2013, the plaintiff served an amended complaint against the same defendants, with the exception that Mr. Cassidy was dropped as a defendant. The plaintiffs allege that Phoenix Life promoted certain policy sales knowing that the policies would ultimately be owned by investors and then challenging the validity of these policies or denying claims submitted on these policies. Plaintiffs are seeking damages, including punitive and treble damages, attorneys’ fees and a declaratory judgment. We believe we have meritorious defenses against this lawsuit and we intend to vigorously defend against these claims. The outcome of this litigation and any potential losses are uncertain. | |||
Cost of Insurance Cases | |||
By order dated July 12, 2013, two separate classes were certified in an action pending in the United States District Court for the Southern District of New York (C.A. No. 1:11-cv-08405-CM-JCF (U.S. Dist. Ct; S.D.N.Y.)) brought by Martin Fleisher and another plaintiff (the “Fleisher Litigation”), on behalf of themselves and others similarly situated, against Phoenix Life. By subsequent order dated August 26, 2013, the court decertified one of the cases. The complaint in the Fleisher Litigation, filed on November 18, 2011, challenges COI rate adjustments implemented by Phoenix Life, which Phoenix Life maintains were based on policy language permitting such adjustments. The complaint seeks damages for breach of contract. The class certified in the court’s July 12, 2013 order, as limited by the court’s August 26, 2013 order, is limited to holders of Phoenix Life policies issued in New York and subject to New York law. By order dated April 29, 2014, the court denied Martin Fleisher’s motion for summary judgment in the Fleisher Litigation in its entirety, while granting in part and denying in part Phoenix Life’s motion for summary judgment. | |||
Phoenix Life’s subsidiary, PHL Variable, has been named as a defendant in four actions challenging its COI rate adjustments implemented concurrently with the Phoenix Life adjustments. These four cases, which are not styled as class actions, have been brought against PHL Variable by (1) Tiger Capital LLC (C.A. No. 1:12-cv- 02939-CM-JCF; U.S. Dist. Ct; S.D.N.Y., complaint filed on March 14, 2012; the “Tiger Capital Litigation”) and (2-4) U.S. Bank National Association, as securities intermediary for Lima Acquisition LP ((2: C.A. No. 1:12-cv-06811-CM-JCF; U.S. Dist. Ct; S.D.N.Y., complaint filed on November 16, 2011; 3: C.A. No. 1:13-cv-01580-CM-JCF; U.S. Dist. Ct; S.D.N.Y., complaint filed on March 8, 2013; collectively, the “U.S. Bank N.Y. Litigations”)); and 4: C.A. No. 1:13-cv-00368-GMS; U.S. Dist. Ct; D. Del., complaint filed on March 6, 2013; the “Delaware Litigation”). The Tiger Capital Litigation and the two U.S. Bank N.Y. Litigations have been assigned to the same judge as the Fleisher Litigation, and discovery in these four actions which was coordinated by the court has concluded. By orders in both U.S. Bank N.Y. Litigations dated May 23, 2014, the court denied U.S. Bank’s motions for summary judgment in their entirety, while granting in part and denying in part PHL Variable’s motions for summary judgment. U.S. Bank moved for reconsideration of the court’s summary judgment decisions in the U.S. Bank N.Y. Litigations, which the court denied by orders dated June 4, 2014. By order in the Tiger Capital Litigation dated July 23, 2014, the court denied Tiger Capital’s motion for summary judgment in its entirety, while granting in part and denying in part PHL Variable’s motion for summary judgment. The Delaware Litigation is proceeding separately and by order dated April 22, 2014 was transferred to the U.S. District Court for the District of Connecticut and assigned a new docket number (C.A. No. 3:14-cv-0555-WWE). The plaintiffs seek damages and attorneys’ fees for breach of contract and other common law and statutory claims. | |||
Complaints to state insurance departments regarding PHL Variable’s COI rate adjustments have also prompted regulatory inquiries or investigations in several states, with two of such states (California and Wisconsin) issuing letters directing PHL Variable to take remedial action in response to complaints by a single policyholder. PHL Variable disagrees with both states’ positions and, on April 30, 2013, Wisconsin commenced an administrative hearing to obtain a formal ruling on its position, which is pending. (OCI Case No. 13- C35362). | |||
Phoenix Life and PHL Variable believe that they have meritorious defenses against all of these lawsuits and regulatory directives and intend to vigorously defend against them. The outcome of these matters is uncertain and any potential losses cannot be reasonably estimated. | |||
Regulatory matters | |||
State regulatory bodies, the SEC, the Financial Industry Regulatory Authority (“FINRA”), the IRS and other regulatory bodies regularly make inquiries of us and, from time to time, conduct examinations or investigations concerning our compliance with laws and regulations related to, among other things, our insurance and broker-dealer subsidiaries, securities offerings and registered products. We endeavor to respond to such inquiries in an appropriate way and to take corrective action if warranted. Further, the Company is providing to the SEC certain information and documentation regarding the Restatement and the staff of the SEC has indicated to the Company that the matter remains subject to further investigation and potential further regulatory action. We cannot predict the outcome of any of such investigations or actions related to these or other matters. | |||
Regulatory actions may be difficult to assess or quantify. The nature and magnitude of their outcomes may remain unknown for substantial periods of time. It is not feasible to predict or determine the ultimate outcome of all pending inquiries, investigations, legal proceedings and other regulatory actions, or to provide reasonable ranges of potential losses. Based on current information, we believe that the outcomes of our regulatory matters are not likely, either individually or in the aggregate, to have a material adverse effect on our consolidated financial condition. However, given the inherent unpredictability of regulatory matters, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on our consolidated financial statements in particular quarterly or annual periods. | |||
State Insurance Department Examinations | |||
During 2012 and 2013, the NYDFS conducted its routine quinquennial financial and market conduct examination covering the period ended December 31, 2012 of Phoenix Life. The Connecticut Insurance Department conducted its routine financial examination of PHL Variable and two other Connecticut-domiciled insurance subsidiaries. The NYDFS issued the financial examination portion of its report for Phoenix Life on June 26, 2014. The Connecticut Insurance Department released its financial examination report for PHL Variable on May 28, 2014. We expect to receive final market conduct examination reports in 2014. | |||
Unclaimed Property Inquires | |||
On July 5, 2011, the NYDFS issued a letter (“308 Letter”) requiring life insurers doing business in New York to use data available on the U.S. Social Security Administration’s Death Master File or a similar database to identify instances where death benefits under life insurance policies, annuities and retained asset accounts are payable, to locate and pay beneficiaries under such contracts and to report the results of the use of the data. Additionally, the insurers are required to report on their success in finding and making payments to beneficiaries or escheatment of funds deemed abandoned under state laws. We have substantially completed the work associated with this matter and the remaining amount of claim and interest payments to beneficiaries or state(s) has been recorded in policy liabilities and accruals. In addition, 39 states have indicated their intent to perform an unclaimed property audit of funds deemed abandoned under state laws. The audits are in process. | |||
Discontinued Reinsurance Operations | |||
In 1999, Phoenix Life discontinued reinsurance operations through a combination of sale, reinsurance and placement of certain retained group accident and health reinsurance business into run-off. A formal plan was adopted to stop writing new contracts covering these risks and to end existing contracts as soon as those contracts would permit. However, Phoenix Life remains subject to claims under contracts that have not been commuted. Certain discontinued group accident and health reinsurance business was the subject of disputes concerning the placement of the business with reinsurers and the recovery of reinsurance. These disputes have been substantially resolved or settled. | |||
We have established reserves for claims and related expenses that we expect to pay on our discontinued group accident and health reinsurance business. These reserves are based on currently known facts and estimates about, among other things, the amount of insured losses and expenses that we believe we will pay, the period over which they will be paid, the amount of reinsurance we believe we will collect from our retrocessionaires and the likely legal and administrative costs of winding down the business. | |||
Phoenix Life expects reserves and reinsurance to cover the run-off of the business; however, unfavorable or favorable claims and/or reinsurance recovery experience are reasonably possible and could result in our recognition of additional losses or gains in future years. Management believes, based on current information and after consideration of the provisions made in these financial statements, that any future adverse or favorable development of recorded reserves and/or reinsurance recoverables will not have a material adverse effect on its financial position. Nevertheless, it is possible that future developments could have a material adverse effect on our results of operations. | |||
Our total policy liabilities and accruals were $40.6 million and $45.3 million as of September 30, 2013 and December 31, 2012, respectively. The decrease to policy liabilities and accruals was primarily related to cash settlements due to the commutation of certain contracts in 2012. Our total amounts recoverable from retrocessionaires related to paid losses were $0.8 million and $0.7 million as of September 30, 2013 and December 31 2012, respectively. |
Other_Commitments
Other Commitments | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Other Commitments | ' |
Other Commitments | |
We have an agreement with HP Enterprise Services related to the management of our infrastructure services which expires in 2015. The remaining commitments total $32.2 million: $3.7 million in the fourth quarter of 2013, $14.2 million in 2014 and $14.3 million in 2015. | |
As part of its normal investment activities, the Company enters into agreements to fund limited partnerships that make debt and equity investments. As of September 30, 2013, the Company had unfunded commitments of $231.3 million under such agreements, of which $17.7 million is expected to be funded by December 31, 2013. | |
In addition, the Company enters into agreements to purchase private placement investments. At September 30, 2013, the Company had open commitments of $160.9 million under such agreements which are expected to be fully funded by August 31, 2014. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Management and Organizational Changes | |
On April 23, 2014, we announced the retirement of Mr. Gordon J. Davis, from the Board, effective Thursday, May 22, 2014, in keeping with the Board’s retirement guidelines. | |
On May 28, 2014, we announced the appointment of Westley V. Thompson to the Board, effective September 1, 2014, to fill the vacancy resulting from the retirement of Mr. Davis. | |
On August 11, 2014, we announced the resignation of Douglas C. Miller as Senior Vice President and Chief Accounting Officer of the Company and the appointment of Ernest McNeill, Jr. as Senior Vice President and Chief Accounting Officer of the Company, each effective August 25, 2014. | |
Bond Consent Solicitations | |
Prior to December 31, 2013, we successfully completed two consent solicitations of bondholders (“Holders”) holding our 7.45% Quarterly Interest Bonds due 2032 (CUSIP 71902E 20 8) (NYSE: PFX) (“Bonds”) seeking a consent to amend the indenture governing the bonds (“Indenture”) and a related waiver to extend the due dates for providing certain of our delayed SEC reports to the bond trustee (“Trustee”). | |
On January 23, 2014, we commenced a third consent solicitation of Holders of Bonds to further amend the Indenture and provide a related waiver to extend the date for providing the Trustee with the Quarterly Report on Form 10-Q for the third quarter of 2012 (the “Third Quarter 2012 Form 10-Q”), the 2012 Form 10-K, our Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013 (the “2013 Forms 10-Q”), this Form 10-K and our Quarterly Reports on Form 10-Q for the first, second and third quarters of 2014 (the “2014 Forms 10-Q”) to March 16, 2015. | |
On February 20, 2014, we announced the success of our Third Consent Solicitation. The consents received represented approximately 72% of the outstanding principal amount. | |
On February 21, 2014, the Company and the Trustee executed a third supplemental indenture (the “Third Supplemental Indenture”) amending the Indenture effective as of such date. The amendments provided that until 5:30 p.m., New York City time on March 16, 2015, any failure by us to comply with the sections of the Indenture relating to the filing of the Third Quarter 2012 Form 10-Q, the 2012 Form 10-K, the 2013 Forms 10-Q, the 2013 Form 10-K and the 2014 Forms 10-Q will not constitute defaults under the Indenture and that our filing of such reports on a delayed basis on or prior to such time and date will satisfy our obligations under the reporting covenant in the Indenture. Pursuant to the waiver, any and all defaults and events of default occurring under the Indenture prior to the effectiveness of the Third Supplemental Indenture are waived. | |
Dividends | |
On December 20, 2013, Phoenix Life paid a $25.0 million dividend to Phoenix. | |
On March 20, 2014, Phoenix Life paid a $14.6 million dividend to Phoenix. | |
On May 22, 2014, Phoenix Life paid a $11.9 million dividend to Phoenix. | |
Late Filings | |
On November 8, 2013, we filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that we would be unable to timely file our Third Quarter 2013 Quarterly Report on Form 10-Q with the SEC. | |
On February 28, 2014, we filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that we would be unable to timely file our 2013 Annual Report on Form 10-K with the SEC. | |
On May 12, 2014, we filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that we would be unable to timely file our Quarterly Report on Form 10-Q for the period ending March 31, 2014 with the SEC. | |
On August 8, 2014, we filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that we would be unable to timely file our Quarterly Report on Form 10-Q for the period ending June 30, 2014 with the SEC. | |
Restatement | |
The Company filed a Current Report on Form 8-K with the SEC on November 8, 2012 (as was amended by Forms 8-K/A filed by the Company on March 15, 2013 and April 24, 2013, respectively) disclosing its conclusion that certain of its previously issued annual audited and interim unaudited financial statements contained in its historical Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q should no longer be relied upon and should be restated. | |
On April 1, 2014, Phoenix filed with the SEC its 2012 Form 10-K containing its restatement of previously issued audited financial statements prepared in accordance with U.S. GAAP. The 2012 Form 10-K contains audited financial statements of the Company for the years ended December 31, 2012, 2011 and 2010 and interim unaudited financial statements presented for each quarter during the fiscal years 2012 and 2011, which in each case are presented on a restated and amended basis to the extent previously filed in a periodic report by the Company with the SEC. | |
NYSE Actions | |
On January 17, 2014 we filed a Current Report on Form 8-K with the SEC disclosing that we made an additional extension request to the NYSE that our shares be permitted to continue to trade until April 3, 2014. | |
On January 28, 2014, we filed a Current Report on Form 8-K with the SEC disclosing that we received an extension for continued listing and trading of the Company’s common stock on the NYSE. The extension, subject to reassessment on an ongoing basis by the NYSE, provides the Company with an additional trading period until April 3, 2014. The letter further provided that in the event that the Company does not file its 2012 Form 10-K by April 3, 2014, the NYSE will move forward with the initiation of suspension and delisting procedures. The Company filed its 2012 Form 10-K before the opening of the market on April 1, 2014. The Company believes that the filing of the 2012 Form 10-K prior to April 3, 2014 satisfies the NYSE requirement to file an Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | |
On April 4, 2014, we filed a Current Report on Form 8-K with the SEC announcing that on April 2, 2014 we received from the NYSE a notice of failure to satisfy a continued listing rule or standard and related monitoring. This notice informed us that, as a result of our failure to timely file our Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”), we are subject to the procedures specified in Section 802.01E. Under the Section 802.01E procedures, the NYSE will monitor the status of filing of the 2013 Form 10-K and related public disclosures for up to a six-month period from its due date. If the Company has not filed the 2013 Form 10-K within six months from the filing due date, the NYSE may, in its sole discretion, allow the Company’s common stock to trade for up to an additional six months pending the filing of the 2013 Form 10-K prior to commencing suspension or delisting procedures, depending on the Company’s specific circumstances. The Company believes that the filing of the 2013 Form 10-K within six months from the filing due date satisfies the NYSE requirement to file an Annual Report on Form 10-K for the fiscal year ended December 31, 2013. | |
Rating Agency Actions | |
On January 14, 2014, Moody’s Investor Services withdrew all ratings of The Phoenix Companies, Inc. including the Caa1 senior debt rating of Phoenix and the Ba2 financial strength rating of the Company’s life insurance subsidiaries and the B1 (hyb) debt rating of Phoenix Life’s surplus notes. | |
On May 20, 2014, Standard & Poor’s Rating Services placed its ‘B-‘, long-term counterparty credit rating on Phoenix and its ‘BB-‘ long-term counterparty credit and financial strength ratings on Phoenix Life and PHL Variable on CreditWatch with negative implications. | |
On August 12, 2014, Standard & Poor’s Rating Services lowered its financial strength ratings on Phoenix Life and PHL Variable to ‘B+’ from ‘BB-’ and affirmed its ‘B-‘ long-term counterparty credit ratings on Phoenix. They removed the credit ratings from CreditWatch and assigned a negative outlook. They also affirmed Phoenix’s long-term counterparty credit rating. | |
Statutory Results | |
Our insurance subsidiaries are required to file, with state regulatory authorities, annual statements prepared on an accounting basis prescribed or permitted by such authorities. These annual statements for the year ended December 31, 2013 were filed on a timely basis on February 28, 2014. | |
SEC Cease-and-Desist Order | |
See Note 21 to these financial statements for additional information regarding the SEC Cease-and-Desist Order, as amended. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of presentation | ' |
We have prepared these consolidated financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), which differs materially from the accounting practices prescribed by various insurance regulatory authorities. Our consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidating these financial statements. | |
Certain prior year amounts have been reclassified to conform to the current year presentation. These financial statements include all adjustments (consisting primarily of accruals) considered necessary for the fair statement of the consolidated balance sheet, consolidated statements of income and comprehensive income, consolidated statements of cash flows and consolidated statements of changes in stockholders’ equity for the interim periods. Certain financial information that is not required for interim reporting has been omitted. Financial results for the three months and nine months ended September 30, 2013 are not necessarily indicative of full year results. Results for the quarter ended and nine months ended September 30, 2013 include $0 and $2.4 million, respectively, of income related to out-of-period adjustments. Such amounts are not material to any period presented. These financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2012 contained in the 2012 Form 10-K. | |
Use of Estimates | ' |
Use of estimates | |
In preparing these financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are made in the determination of estimated gross profits (“EGPs”) and estimated gross margins (“EGMs”) used in the valuation and amortization of assets and liabilities associated with universal life and annuity contracts; policyholder liabilities and accruals; valuation of investments in debt and equity securities: limited partnerships and other investments; valuation of deferred tax assets; pension and other post-employment benefits liabilities; and accruals for contingent liabilities. Actual results could differ from these estimates. | |
Adoption of new accounting standards and Accounting standards not yet adopted | ' |
Adoption of new accounting standards | |
Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued updated guidance regarding the presentation of comprehensive income (“ASU 2013-02”). Under the guidance, an entity would separately present information about significant items reclassified out of accumulated other comprehensive income by component as well as changes in accumulated other comprehensive income balances by component in either the financial statements or the notes to the financial statements. The guidance does not change the items that are reported in other comprehensive income. The guidance does not change when an item of other comprehensive income must be reclassified to net income and does not amend any existing requirements for reporting net income or other comprehensive income. The guidance was effective for the first interim or annual reporting period beginning after December 15, 2012 and should be applied prospectively. See Note 14 to these financial statements for the disclosures required by this guidance. | |
Disclosures about Offsetting Assets and Liabilities | |
In December 2011 and January 2013, the FASB issued amended guidance to ASC 210, Balance Sheet, with respect to disclosure of offsetting assets and liabilities as part of the effort to establish common requirements in accordance with U.S. GAAP. This amended guidance requires the disclosure of both gross information and net information about both financial instruments and derivative instruments eligible for offset in our balance sheets and instruments and transactions subject to an agreement similar to a master netting arrangement. This guidance was effective for periods beginning on or after January 1, 2013, with respective disclosures required retrospectively for all comparative periods presented. See Note 11 to these financial statements for the disclosures required by this guidance. | |
Definition of a Business Entity | |
In December 2013, the FASB issued updated guidance establishing a single definition of a public entity for use in financial accounting and reporting guidance. This new guidance is effective for all current and future reporting periods and did not have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Accounting standards not yet adopted | |
Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements | |
In June 2013, the FASB issued updated guidance clarifying the characteristics of an investment company and requiring new disclosures. Under the guidance, all entities regulated under the Investment Company Act of 1940 automatically qualify as investment companies, while all other entities need to consider both the fundamental and typical characteristics of an investment company in determining whether they qualify as investment companies. This new guidance is effective for interim or annual reporting periods that begin after December 15, 2013 and should be applied prospectively. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Obligations Resulting for Joint and Several Liability Agreements for Which the Total Amount of the Obligation is Fixed at the Reporting Date | |
In February 2013, the FASB issued new guidance regarding liabilities (“ASU 2013-04,” Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date), effective retrospectively for fiscal years beginning after December 15, 2013 and interim periods within those years. The amendments require an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition, the amendments require an entity to disclose the nature and amount of the obligation, as well as other information about the obligation. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Accounting for Troubled Debt Restructurings by Creditors | |
In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The new guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. This guidance can be elected for prospective adoption or by using a modified retrospective transition method. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB issued updated guidance regarding investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the statement of operations as a component of income tax expense (benefit) if certain conditions are met. The new guidance is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and should be applied retrospectively to all periods presented. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |
In April 2014, the FASB issued updated guidance that changes the criteria for reporting discontinued operations and introduces new disclosures. The new guidance is effective prospectively to new disposals and new classifications of disposal groups as held for sale that occur within annual periods beginning on or after December 15, 2014 and interim periods within those annual periods. Early adoption is permitted for new disposals or new classifications as held for sale that have not been reported in financial statements previously issued. The Company will apply the guidance to new disposals and operations newly classified as held for sale, beginning first quarter of 2015, with no effect on existing reported discontinued operations. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists | |
In July 2013, the FASB issued updated guidance regarding the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This new guidance is effective for interim or annual reporting periods that begin after December 15, 2013, and should be applied prospectively, with early application permitted. This guidance is not expected to have a significant effect on the Company’s consolidated financial position, results of operations or financial statement disclosures. |
Reinsurance_Tables
Reinsurance (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Reinsurance activity | ' | |||||||||||||||
Other reinsurance activity is shown below. | ||||||||||||||||
Direct Business and Reinsurance in Continuing Operations: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Direct premiums | $ | 120.1 | $ | 133.4 | $ | 367.8 | $ | 411.6 | ||||||||
Premiums assumed from reinsureds | 2.7 | 1.9 | 6.7 | 6.1 | ||||||||||||
Premiums ceded to reinsurers [1] | (38.3 | ) | (40.5 | ) | (119.9 | ) | (127.1 | ) | ||||||||
Premiums | $ | 84.5 | $ | 94.8 | $ | 254.6 | $ | 290.6 | ||||||||
Percentage of amount assumed to net premiums | 3.20% | 2.00% | 2.60% | 2.10% | ||||||||||||
Direct policy benefits incurred | $ | 205.6 | $ | 191.9 | $ | 603 | $ | 574.1 | ||||||||
Policy benefits assumed from reinsureds | 3.6 | 30 | 22.4 | 67.9 | ||||||||||||
Policy benefits ceded to reinsurers | (77.6 | ) | (49.3 | ) | (192.8 | ) | (200.1 | ) | ||||||||
Premiums paid to reinsurers [2] | 26.4 | 28.1 | 53.8 | 69.5 | ||||||||||||
Policy benefits [3] | $ | 158 | $ | 200.7 | $ | 486.4 | $ | 511.4 | ||||||||
——————— | ||||||||||||||||
[1] | Primarily represents premiums ceded to reinsurers related to traditional life and term insurance policies. | |||||||||||||||
[2] | For universal life and variable universal life contracts, premiums paid to reinsurers are reflected within policy benefits. See Note 2 to these financial statements for additional information regarding significant accounting policies. | |||||||||||||||
[3] | Policy benefit amounts above exclude changes in reserves, interest credited to policyholders and other items, which total $103.1 million and $151.8 million, net of reinsurance, for the three months ended September 30, 2013 and 2012, respectively, and $366.3 million and $377.5 million, net of reinsurance, for the nine months ended September 30, 2013 and 2012, respectively. |
Demutualization_and_Closed_Blo1
Demutualization and Closed Block (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Closed Block Assets And Liabilities | ' | |||||||||||||||
Closed Block Assets and Liabilities as of: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | Inception | |||||||||||||||
Available-for-sale debt securities | $ | 5,856.80 | $ | 6,221.50 | $ | 4,773.10 | ||||||||||
Available-for-sale equity securities | 16.9 | 11.4 | — | |||||||||||||
Short-term investments | 140 | 174.9 | — | |||||||||||||
Limited partnerships and other investments | 349.3 | 353.1 | 399 | |||||||||||||
Policy loans | 1,213.60 | 1,233.50 | 1,380.00 | |||||||||||||
Fair value investments | 37.9 | 30.8 | — | |||||||||||||
Total closed block investments | 7,614.50 | 8,025.20 | 6,552.10 | |||||||||||||
Cash and cash equivalents | 106.5 | 32.7 | — | |||||||||||||
Accrued investment income | 84.2 | 85.3 | 106.8 | |||||||||||||
Receivables | 44.5 | 53.1 | 35.2 | |||||||||||||
Reinsurance recoverable | 20.3 | 7.5 | — | |||||||||||||
Deferred income taxes | 251.3 | 217.6 | 389.4 | |||||||||||||
Other closed block assets | 17.5 | 31.7 | 6.2 | |||||||||||||
Total closed block assets | 8,138.80 | 8,453.10 | 7,089.70 | |||||||||||||
Policy liabilities and accruals | 8,283.10 | 8,421.70 | 8,301.70 | |||||||||||||
Policyholder dividends payable | 213.7 | 223.8 | 325.1 | |||||||||||||
Policy dividend obligation | 532.6 | 779.8 | — | |||||||||||||
Other closed block liabilities | 109.6 | 47.5 | 12.3 | |||||||||||||
Total closed block liabilities | 9,139.00 | 9,472.80 | 8,639.10 | |||||||||||||
Excess of closed block liabilities over closed block assets [1] | 1,000.20 | 1,019.70 | $ | 1,549.40 | ||||||||||||
Less: Excess of closed block assets over closed block liabilities | (6.3 | ) | (5.4 | ) | ||||||||||||
attributable to noncontrolling interests | ||||||||||||||||
Excess of closed block liabilities over closed block assets attributable to | $ | 1,006.50 | $ | 1,025.10 | ||||||||||||
The Phoenix Companies, Inc. | ||||||||||||||||
——————— | ||||||||||||||||
[1] | The maximum future earnings summary to inure to the benefit of the stockholders is represented by the excess of closed block liabilities over closed block assets. All unrealized investment gains (losses), net of income tax, have been allocated to the policyholder dividend obligation. | |||||||||||||||
Closed Block Revenues and Expenses | ' | |||||||||||||||
Closed Block Revenues and Expenses and Changes in | Three Months Ended | Nine Months Ended | ||||||||||||||
Policyholder Dividend Obligations: | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Closed block revenues | ||||||||||||||||
Premiums | $ | 76.2 | $ | 89.5 | $ | 230.4 | $ | 270.1 | ||||||||
Net investment income | 104 | 115.7 | 304.1 | 343.5 | ||||||||||||
Net realized investment gains (losses) | 8 | 7.5 | 9.7 | 9.4 | ||||||||||||
Total revenues | 188.2 | 212.7 | 544.2 | 623 | ||||||||||||
Policy benefits, excluding policyholder dividends | 111.1 | 120.1 | 389.7 | 364.8 | ||||||||||||
Other operating expenses | 1.4 | 1.3 | 4 | 3.6 | ||||||||||||
Total benefits and expenses, excluding | 112.5 | 121.4 | 393.7 | 368.4 | ||||||||||||
policyholder dividends | ||||||||||||||||
Closed block contribution to income before dividends | 75.7 | 91.3 | 150.5 | 254.6 | ||||||||||||
and income taxes | ||||||||||||||||
Policyholder dividends | (66.2 | ) | (80.9 | ) | (121.8 | ) | (221.6 | ) | ||||||||
Closed block contribution to income before income taxes | 9.5 | 10.4 | 28.7 | 33 | ||||||||||||
Applicable income tax expense | 3.3 | 3.6 | 10 | 11.5 | ||||||||||||
Closed block contribution to income | 6.2 | 6.8 | 18.7 | 21.5 | ||||||||||||
Less: Closed block contribution to income attributable to | (0.1 | ) | 0.4 | (0.3 | ) | 0.4 | ||||||||||
noncontrolling interests | ||||||||||||||||
Closed block contribution to income attributable to | $ | 6.3 | $ | 6.4 | $ | 19 | $ | 21.1 | ||||||||
The Phoenix Companies, Inc. | ||||||||||||||||
Closed Block Policyholder Dividend Obligation | ' | |||||||||||||||
Closed Block Policyholder Dividend Obligation as of: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | ||||||||||||||||
Policyholder dividend obligation | ||||||||||||||||
Policyholder dividends provided through earnings | $ | 121.8 | $ | 294.5 | ||||||||||||
Policyholder dividends provided through OCI | (247.9 | ) | 168 | |||||||||||||
Additions to (reductions of) policyholder dividend liabilities | (126.1 | ) | 462.5 | |||||||||||||
Policyholder dividends paid | (131.2 | ) | (211.4 | ) | ||||||||||||
Increase in policyholder dividend liabilities | (257.3 | ) | 251.1 | |||||||||||||
Policyholder dividend liabilities, beginning of period | 1,003.60 | 752.5 | ||||||||||||||
Policyholder dividend liabilities, end of period | 746.3 | 1,003.60 | ||||||||||||||
Policyholder dividends payable, end of period | (213.7 | ) | (223.8 | ) | ||||||||||||
Policyholder dividend obligation, end of period | $ | 532.6 | $ | 779.8 | ||||||||||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ' | |||||||||||||||
Schedule Of Deferred Policy Acquisition Costs | ' | |||||||||||||||
The balances of and changes in deferred policy acquisition costs (“DAC”) as of and for the periods ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||
Deferred Policy Acquisition Costs: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Policy acquisition costs deferred | $ | 13.9 | $ | 18 | $ | 42.8 | $ | 56.2 | ||||||||
Costs amortized to expenses: | ||||||||||||||||
Recurring costs | (32.4 | ) | (5.5 | ) | (107.9 | ) | (103.4 | ) | ||||||||
Assumption unlocking | — | (46.3 | ) | — | (46.3 | ) | ||||||||||
Realized investment gains (losses) | (0.7 | ) | (20.0 | ) | (2.7 | ) | (14.9 | ) | ||||||||
Offsets to net unrealized investment gains or losses | 5 | (15.1 | ) | 66 | (66.4 | ) | ||||||||||
included in AOCI [1] | ||||||||||||||||
Change in deferred policy acquisition costs | (14.2 | ) | (68.9 | ) | (1.8 | ) | (174.8 | ) | ||||||||
Deferred policy acquisition costs, beginning of period | 914.6 | 1,013.30 | 902.2 | 1,119.20 | ||||||||||||
Deferred policy acquisition costs, end of period | $ | 900.4 | $ | 944.4 | $ | 900.4 | $ | 944.4 | ||||||||
——————— | ||||||||||||||||
[1] | An offset to DAC and accumulated other comprehensive income (“AOCI”) is recorded each period to the extent that, had unrealized holding gains or losses from securities classified as available-for-sale actually been realized, an adjustment to DAC amortized using gross profits or gross margins would result. |
Sales_Inducements_Tables
Sales Inducements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Deferred Sales Inducements [Abstract] | ' | |||||||||||||||
Changes in Deferred Sales Inducement Activity | ' | |||||||||||||||
Changes in Deferred Sales Inducement Activity: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Deferred asset, beginning of period | $ | 73.1 | $ | 47.8 | $ | 61.4 | $ | 50.2 | ||||||||
Sales inducements deferred | 2.7 | 2.7 | 8.2 | 12.4 | ||||||||||||
Amortization charged to income | (1.9 | ) | (2.1 | ) | (5.4 | ) | (6.2 | ) | ||||||||
Offsets to net unrealized investment gains or losses | 0.2 | 10.2 | 9.9 | 2.2 | ||||||||||||
included in AOCI | ||||||||||||||||
Deferred asset, end of period | $ | 74.1 | $ | 58.6 | $ | 74.1 | $ | 58.6 | ||||||||
Investing_activities_Tables
Investing activities (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Fair Value and Cost of Securities | ' | |||||||||||||||||||||||
The following tables present the debt and equity securities available-for-sale by sector held at September 30, 2013 and December 31, 2012, respectively. The unrealized loss amounts presented below include the non-credit loss component of OTTI losses. We classify these investments into various sectors in line with industry conventions. | ||||||||||||||||||||||||
Fair Value and Cost of Securities: | 30-Sep-13 | |||||||||||||||||||||||
($ in millions) | Gross | Gross | OTTI | |||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Recognized | ||||||||||||||||||||
Cost | Gains [1] | Losses [1] | Value | in AOCI [2] | ||||||||||||||||||||
U.S. government and agency | $ | 404 | $ | 45.6 | $ | (3.8 | ) | $ | 445.8 | $ | — | |||||||||||||
State and political subdivision | 364.5 | 21.9 | (8.8 | ) | 377.6 | (1.2 | ) | |||||||||||||||||
Foreign government | 177.1 | 18 | (0.3 | ) | 194.8 | — | ||||||||||||||||||
Corporate | 7,275.60 | 482 | (132.4 | ) | 7,625.20 | (8.4 | ) | |||||||||||||||||
Commercial mortgage-backed (“CMBS”) | 719.3 | 39.2 | (3.7 | ) | 754.8 | (4.2 | ) | |||||||||||||||||
Residential mortgage-backed (“RMBS”) | 1,717.60 | 55.2 | (27.9 | ) | 1,744.90 | (26.4 | ) | |||||||||||||||||
CDO/CLO | 220.7 | 5.5 | (5.5 | ) | 220.7 | (15.3 | ) | |||||||||||||||||
Other asset-backed | 344 | 16.6 | (11.2 | ) | 349.4 | (1.8 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,222.80 | $ | 684 | $ | (193.6 | ) | $ | 11,713.20 | $ | (57.3 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,502.80 | $ | 420.8 | $ | (66.8 | ) | $ | 5,856.80 | $ | (16.6 | ) | ||||||||||||
Available-for-sale equity securities | $ | 26.9 | $ | 19.4 | $ | (1.1 | ) | $ | 45.2 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 10.6 | $ | 6.8 | $ | (0.5 | ) | $ | 16.9 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Fair Value and Cost of Securities: | 31-Dec-12 | |||||||||||||||||||||||
($ in millions) | Gross | Gross | OTTI | |||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Recognized | ||||||||||||||||||||
Cost | Gains [1] | Losses [1] | Value | in AOCI [2] | ||||||||||||||||||||
U.S. government and agency | $ | 355.9 | $ | 58.5 | $ | (2.5 | ) | $ | 411.9 | $ | — | |||||||||||||
State and political subdivision | 321.5 | 37.8 | (2.1 | ) | 357.2 | (1.1 | ) | |||||||||||||||||
Foreign government | 167.5 | 36.8 | — | 204.3 | — | |||||||||||||||||||
Corporate | 6,996.40 | 745.7 | (72.1 | ) | 7,670.00 | (8.3 | ) | |||||||||||||||||
CMBS | 817.2 | 72.9 | (7.9 | ) | 882.2 | (6.2 | ) | |||||||||||||||||
RMBS | 1,698.20 | 94.3 | (20.8 | ) | 1,771.70 | (30.6 | ) | |||||||||||||||||
CDO/CLO | 240.5 | 6.4 | (23.2 | ) | 223.7 | (18.1 | ) | |||||||||||||||||
Other asset-backed | 421.2 | 26.6 | (12.4 | ) | 435.4 | (1.4 | ) | |||||||||||||||||
Available-for-sale debt securities | $ | 11,018.40 | $ | 1,079.00 | $ | (141.0 | ) | $ | 11,956.40 | $ | (65.7 | ) | ||||||||||||
Amounts applicable to the closed block | $ | 5,614.80 | $ | 644.9 | $ | (38.2 | ) | $ | 6,221.50 | $ | (19.9 | ) | ||||||||||||
Available-for-sale equity securities | $ | 27.5 | $ | 9.7 | $ | (2.4 | ) | $ | 34.8 | $ | — | |||||||||||||
Amounts applicable to the closed block | $ | 10.9 | $ | 1.8 | $ | (1.3 | ) | $ | 11.4 | $ | — | |||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||||||||||||||||||||||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). | |||||||||||||||||||||||
Maturities of Debt Securities: | 30-Sep-13 | |||||||||||||||||||||||
($ in millions) | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 239.8 | $ | 246.4 | ||||||||||||||||||||
Due after one year through five years | 796.4 | 866.8 | ||||||||||||||||||||||
Due after five years through ten years | 810.5 | 877 | ||||||||||||||||||||||
Due after ten years | 6,374.50 | 6,653.20 | ||||||||||||||||||||||
CMBS/RMBS/ABS/CDO/CLO [1] | 3,001.60 | 3,069.80 | ||||||||||||||||||||||
Total | $ | 11,222.80 | $ | 11,713.20 | ||||||||||||||||||||
Maturities of Debt Securities | ' | |||||||||||||||||||||||
Maturities of Debt Securities: | 30-Sep-13 | |||||||||||||||||||||||
($ in millions) | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 239.8 | $ | 246.4 | ||||||||||||||||||||
Due after one year through five years | 796.4 | 866.8 | ||||||||||||||||||||||
Due after five years through ten years | 810.5 | 877 | ||||||||||||||||||||||
Due after ten years | 6,374.50 | 6,653.20 | ||||||||||||||||||||||
CMBS/RMBS/ABS/CDO/CLO [1] | 3,001.60 | 3,069.80 | ||||||||||||||||||||||
Total | $ | 11,222.80 | $ | 11,713.20 | ||||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | CMBS, RMBS, ABS, CDO and CLO are not listed separately in the table as each security does not have a single fixed maturity. | |||||||||||||||||||||||
Sale of Available-for-Sale Securities | ' | |||||||||||||||||||||||
The following table depicts the sources of available-for-sale investment proceeds and related investment gains (losses). | ||||||||||||||||||||||||
Sales of Available-for-Sale Securities: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
Debt securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 328.1 | $ | 346.5 | ||||||||||||||||||||
Proceeds from maturities/repayments | 1,182.00 | 1,527.20 | ||||||||||||||||||||||
Gross investment gains from sales, prepayments and maturities | 31.6 | 52.3 | ||||||||||||||||||||||
Gross investment losses from sales and maturities | (3.5 | ) | (11.1 | ) | ||||||||||||||||||||
Equity securities, available-for-sale | ||||||||||||||||||||||||
Proceeds from sales | $ | 3.7 | $ | 12.6 | ||||||||||||||||||||
Gross investment gains from sales | 1.3 | 8.5 | ||||||||||||||||||||||
Gross investment losses from sales | (1.2 | ) | (0.4 | ) | ||||||||||||||||||||
Aging of Temporarily Impaired Securities | ' | |||||||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of | |||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | 35.5 | $ | (1.2 | ) | $ | 21.3 | $ | (2.6 | ) | $ | 56.8 | $ | (3.8 | ) | |||||||||
State and political subdivision | 80.7 | (6.5 | ) | 11 | (2.3 | ) | 91.7 | (8.8 | ) | |||||||||||||||
Foreign government | 38.6 | (0.3 | ) | — | — | 38.6 | (0.3 | ) | ||||||||||||||||
Corporate | 1,661.50 | (74.6 | ) | 241.7 | (57.8 | ) | 1,903.20 | (132.4 | ) | |||||||||||||||
CMBS | 76.6 | (2.7 | ) | 12.2 | (1.0 | ) | 88.8 | (3.7 | ) | |||||||||||||||
RMBS | 355.1 | (15.9 | ) | 138.7 | (12.0 | ) | 493.8 | (27.9 | ) | |||||||||||||||
CDO/CLO | 46.6 | (0.5 | ) | 96.6 | (5.0 | ) | 143.2 | (5.5 | ) | |||||||||||||||
Other asset-backed | 21.2 | (0.7 | ) | 43.4 | (10.5 | ) | 64.6 | (11.2 | ) | |||||||||||||||
Debt securities | 2,315.80 | (102.4 | ) | 564.9 | (91.2 | ) | 2,880.70 | (193.6 | ) | |||||||||||||||
Equity securities | 0.8 | — | 3.6 | (1.1 | ) | 4.4 | (1.1 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 2,316.60 | $ | (102.4 | ) | $ | 568.5 | $ | (92.3 | ) | $ | 2,885.10 | $ | (194.7 | ) | |||||||||
Amounts inside the closed block | $ | 1,467.20 | $ | (40.0 | ) | $ | 222.2 | $ | (27.3 | ) | $ | 1,689.40 | $ | (67.3 | ) | |||||||||
Amounts outside the closed block | $ | 849.4 | $ | (62.4 | ) | $ | 346.3 | $ | (65.0 | ) | $ | 1,195.70 | $ | (127.4 | ) | |||||||||
Amounts outside the closed block | $ | 105.5 | $ | (4.1 | ) | $ | 91.2 | $ | (18.0 | ) | $ | 196.7 | $ | (22.1 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 411 | 147 | 558 | |||||||||||||||||||||
Aging of Temporarily Impaired Securities: | As of | |||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||
U.S. government and agency | $ | 9 | $ | (0.1 | ) | $ | 28.4 | $ | (2.4 | ) | $ | 37.4 | $ | (2.5 | ) | |||||||||
State and political subdivision | 13.5 | (0.8 | ) | 7.1 | (1.3 | ) | 20.6 | (2.1 | ) | |||||||||||||||
Foreign government | — | — | — | — | — | — | ||||||||||||||||||
Corporate | 300.9 | (6.2 | ) | 318.2 | (65.9 | ) | 619.1 | (72.1 | ) | |||||||||||||||
CMBS | 8.4 | (1.0 | ) | 30.7 | (6.9 | ) | 39.1 | (7.9 | ) | |||||||||||||||
RMBS | 64.7 | (0.4 | ) | 212.6 | (20.4 | ) | 277.3 | (20.8 | ) | |||||||||||||||
CDO/CLO | 26.2 | (2.0 | ) | 132.7 | (21.2 | ) | 158.9 | (23.2 | ) | |||||||||||||||
Other asset-backed | 10.1 | (0.7 | ) | 43.3 | (11.7 | ) | 53.4 | (12.4 | ) | |||||||||||||||
Debt securities | 432.8 | (11.2 | ) | 773 | (129.8 | ) | 1,205.80 | (141.0 | ) | |||||||||||||||
Equity securities | 4.4 | (1.6 | ) | 2.4 | (0.8 | ) | 6.8 | (2.4 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 437.2 | $ | (12.8 | ) | $ | 775.4 | $ | (130.6 | ) | $ | 1,212.60 | $ | (143.4 | ) | |||||||||
Amounts inside the closed block | $ | 150.7 | $ | (4.6 | ) | $ | 332.4 | $ | (34.9 | ) | $ | 483.1 | $ | (39.5 | ) | |||||||||
Amounts outside the closed block | $ | 286.5 | $ | (8.2 | ) | $ | 443 | $ | (95.7 | ) | $ | 729.5 | $ | (103.9 | ) | |||||||||
Amounts outside the closed block | $ | 29.8 | $ | (2.0 | ) | $ | 177.5 | $ | (63.4 | ) | $ | 207.3 | $ | (65.4 | ) | |||||||||
that are below investment grade | ||||||||||||||||||||||||
Number of securities | 108 | 196 | 304 | |||||||||||||||||||||
Credit Losses Recognized in Earnings on Debt Securities for which a Portion of the OTTI Loss was Recognized in OCI | ' | |||||||||||||||||||||||
The following table presents a roll-forward of pre-tax credit losses recognized in earnings related to debt securities for which a portion of the OTTI was recognized in OCI. | ||||||||||||||||||||||||
Credit Losses Recognized in Earnings on Debt Securities for | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
which a Portion of the OTTI Loss was Recognized in OCI: | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | (72.5 | ) | $ | (78.8 | ) | $ | (72.6 | ) | $ | (79.1 | ) | ||||||||||||
Add: Credit losses on securities not previously impaired [1] | (0.7 | ) | (1.5 | ) | (0.7 | ) | (3.8 | ) | ||||||||||||||||
Add: Credit losses on securities previously impaired [1] | (0.2 | ) | (5.6 | ) | (3.6 | ) | (11.8 | ) | ||||||||||||||||
Less: Credit losses on securities impaired due to intent to sell | — | — | — | — | ||||||||||||||||||||
Less: Credit losses on securities sold | 2.9 | 5.3 | 6.4 | 14.1 | ||||||||||||||||||||
Less: Increases in cash flows expected on | — | — | — | — | ||||||||||||||||||||
previously impaired securities | ||||||||||||||||||||||||
Balance, end of period | $ | (70.5 | ) | $ | (80.6 | ) | $ | (70.5 | ) | $ | (80.6 | ) | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Additional credit losses on securities for which a portion of the OTTI loss was recognized in AOCI are included within net OTTI losses recognized in earnings on the statements of income and comprehensive income. | |||||||||||||||||||||||
Limited partnerships and other investments | ' | |||||||||||||||||||||||
Limited partnerships and other investments | ||||||||||||||||||||||||
Limited Partnerships and Other Investments: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
Limited partnerships | ||||||||||||||||||||||||
Private equity funds | $ | 239.6 | $ | 241.7 | ||||||||||||||||||||
Mezzanine funds | 188.7 | 202.1 | ||||||||||||||||||||||
Infrastructure funds | 44.6 | 42.5 | ||||||||||||||||||||||
Hedge funds | 12.9 | 14.3 | ||||||||||||||||||||||
Mortgage and real estate funds | 3.7 | 5.4 | ||||||||||||||||||||||
Leverage leases | 16.9 | 17.9 | ||||||||||||||||||||||
Direct equity investments | 40.8 | 29.2 | ||||||||||||||||||||||
Life settlements | 21.3 | 21 | ||||||||||||||||||||||
Other alternative assets | 4.5 | 3.2 | ||||||||||||||||||||||
Limited partnerships and other investments | $ | 573 | $ | 577.3 | ||||||||||||||||||||
Amounts applicable to the closed block | $ | 349.3 | $ | 353.1 | ||||||||||||||||||||
Sources of Net Investment Income | ' | |||||||||||||||||||||||
Sources of Net Investment Income: | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Debt securities [1] | $ | 144 | $ | 158.9 | $ | 430.8 | $ | 462.2 | ||||||||||||||||
Equity securities | 0.3 | 0.5 | — | 2.4 | ||||||||||||||||||||
Limited partnerships and other investments | 14.1 | 14 | 37.9 | 48.5 | ||||||||||||||||||||
Policy loans | 39 | 35.7 | 119.5 | 120.7 | ||||||||||||||||||||
Fair value investments | 5.2 | (0.1 | ) | 7.2 | 1.5 | |||||||||||||||||||
Total investment income | 202.6 | 209 | 595.4 | 635.3 | ||||||||||||||||||||
Less: Discontinued operations | 0.3 | 0.4 | 0.9 | 1.6 | ||||||||||||||||||||
Less: Investment expenses | 3 | 3.5 | 10.1 | 10.4 | ||||||||||||||||||||
Net investment income | $ | 199.3 | $ | 205.1 | $ | 584.4 | $ | 623.3 | ||||||||||||||||
Amounts applicable to the closed block | $ | 104 | $ | 115.7 | $ | 304.1 | $ | 343.5 | ||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes net investment income on short-term investments. | |||||||||||||||||||||||
Sources and Types of Net Realized Investment Gains (Losses) | ' | |||||||||||||||||||||||
Sources and Types of | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Net Realized Investment Gains (Losses): | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Total other-than-temporary debt impairments | $ | (1.7 | ) | $ | (6.9 | ) | $ | (2.6 | ) | $ | (28.8 | ) | ||||||||||||
Portion of gains (losses) recognized in OCI | (0.4 | ) | (0.2 | ) | (4.6 | ) | 11.3 | |||||||||||||||||
Net debt impairment losses recognized in earnings | $ | (2.1 | ) | $ | (7.1 | ) | $ | (7.2 | ) | $ | (17.5 | ) | ||||||||||||
Debt security impairments: | ||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
State and political subdivision | — | — | — | — | ||||||||||||||||||||
Foreign government | — | — | — | — | ||||||||||||||||||||
Corporate | (0.7 | ) | — | (0.7 | ) | (0.6 | ) | |||||||||||||||||
CMBS | (0.1 | ) | (3.3 | ) | (2.0 | ) | (4.5 | ) | ||||||||||||||||
RMBS | (1.4 | ) | (2.6 | ) | (4.3 | ) | (10.4 | ) | ||||||||||||||||
CDO/CLO | 0.1 | (0.7 | ) | (0.2 | ) | (0.7 | ) | |||||||||||||||||
Other asset-backed | — | (0.5 | ) | — | (1.3 | ) | ||||||||||||||||||
Net debt security impairments | (2.1 | ) | (7.1 | ) | (7.2 | ) | (17.5 | ) | ||||||||||||||||
Equity security impairments | — | — | — | (1.5 | ) | |||||||||||||||||||
Limited partnerships and other investment impairments | — | (0.3 | ) | — | (0.3 | ) | ||||||||||||||||||
Impairment losses | (2.1 | ) | (7.4 | ) | (7.2 | ) | (19.3 | ) | ||||||||||||||||
Debt security transaction gains | 19.7 | 33.4 | 31.7 | 41.4 | ||||||||||||||||||||
Debt security transaction losses | (0.8 | ) | (1.3 | ) | (3.5 | ) | (4.9 | ) | ||||||||||||||||
Equity security transaction gains | 0.3 | 5 | 1.3 | 5 | ||||||||||||||||||||
Equity security transaction losses | — | (0.2 | ) | (1.2 | ) | (0.3 | ) | |||||||||||||||||
Limited partnerships and other investment transaction gains | 0.7 | 5.5 | 0.7 | 6.8 | ||||||||||||||||||||
Limited partnerships and other investment transaction losses | (4.6 | ) | (1.5 | ) | (4.6 | ) | (2.5 | ) | ||||||||||||||||
Net transaction gains (losses) | 15.3 | 40.9 | 24.4 | 45.5 | ||||||||||||||||||||
Derivative instruments | (15.2 | ) | (14.2 | ) | (34.9 | ) | (33.4 | ) | ||||||||||||||||
Embedded derivatives [1] | 8.9 | 7.1 | 14.6 | 6.9 | ||||||||||||||||||||
Assets valued at fair value | 1.1 | 1.1 | 2.4 | 1.9 | ||||||||||||||||||||
Net realized investment gains (losses), excluding impairment losses | 10.1 | 34.9 | 6.5 | 20.9 | ||||||||||||||||||||
Net realized investment gains (losses), including impairment losses | $ | 8 | $ | 27.5 | $ | (0.7 | ) | $ | 1.6 | |||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity GMWB, GMAB and COMBO riders. See Note 10 to these financial statements for additional disclosures. | |||||||||||||||||||||||
Sources of Changes in Net Unrealized Investment Gains (Losses) | ' | |||||||||||||||||||||||
Sources of Changes in | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Net Unrealized Investment Gains (Losses): | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Debt securities | $ | (36.0 | ) | $ | 193.6 | $ | (447.6 | ) | $ | 398.2 | ||||||||||||||
Equity securities | 4.8 | (3.3 | ) | 11 | (0.4 | ) | ||||||||||||||||||
Other investments | 0.8 | — | 0.3 | — | ||||||||||||||||||||
Net unrealized investment gains (losses) | $ | (30.4 | ) | $ | 190.3 | $ | (436.3 | ) | $ | 397.8 | ||||||||||||||
Net unrealized investment gains (losses) | $ | (30.4 | ) | $ | 190.3 | $ | (436.3 | ) | $ | 397.8 | ||||||||||||||
Applicable to closed block policyholder dividend obligation | (22.2 | ) | 84.7 | (247.9 | ) | 171.5 | ||||||||||||||||||
Applicable to DAC | (5.0 | ) | 15.1 | (66.0 | ) | 66.4 | ||||||||||||||||||
Applicable to other actuarial offsets | (15.8 | ) | 58.9 | (87.1 | ) | 77.6 | ||||||||||||||||||
Applicable to deferred income tax expense (benefit) | (0.2 | ) | 38.6 | (16.7 | ) | 83.5 | ||||||||||||||||||
Offsets to net unrealized investment gains (losses) | (43.2 | ) | 197.3 | (417.7 | ) | 399 | ||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | $ | 12.8 | $ | (7.0 | ) | $ | (18.6 | ) | $ | (1.2 | ) | |||||||||||||
Carrying Value of Assets and Liabilities for Consolidated Variable Interest Entities | ' | |||||||||||||||||||||||
Carrying Value of Assets and Liabilities | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||
and Maximum Exposure Loss Relating | Maximum | Maximum | ||||||||||||||||||||||
to Variable Interest Entities: | Exposure | Exposure | ||||||||||||||||||||||
($ in millions) | Assets | Liabilities | to Loss [1] | Assets | Liabilities | to Loss [1] | ||||||||||||||||||
Limited partnerships | $ | 119.2 | $ | — | $ | 173.6 | $ | 136.5 | $ | — | $ | 202.1 | ||||||||||||
LLCs | 39.1 | — | 39.1 | 3.2 | — | 3.2 | ||||||||||||||||||
Total | $ | 158.3 | $ | — | $ | 212.7 | $ | 139.7 | $ | — | $ | 205.3 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. | |||||||||||||||||||||||
The following table presents the total assets and total liabilities relating to consolidated VIEs at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Carrying Value of Assets and Liabilities for | September 30, 2013 | 31-Dec-12 | ||||||||||||||||||||||
Consolidated Variable Interest Entities: | Maximum | Maximum | ||||||||||||||||||||||
($ in millions) | Exposure | Exposure | ||||||||||||||||||||||
Assets | Liabilities | to Loss [1] | Assets | Liabilities | to Loss [1] | |||||||||||||||||||
Debt securities, at fair value [2] | $ | 5.8 | $ | — | $ | 5.5 | $ | 3.6 | $ | — | $ | 3.4 | ||||||||||||
Equity securities, at fair value [2] | 27.2 | — | 22.5 | 23.4 | — | 19.2 | ||||||||||||||||||
Cash and cash equivalents | 11.6 | — | 11.4 | 10.2 | — | 10.2 | ||||||||||||||||||
Investment in partnership interests | 10.4 | — | 10.4 | 11 | — | 11 | ||||||||||||||||||
Investment in single asset LLCs | 15.7 | — | 9.8 | 6.8 | — | 5.4 | ||||||||||||||||||
Other assets | 0.5 | — | 0.4 | 5.5 | — | 5.5 | ||||||||||||||||||
Total assets of consolidated VIEs | $ | 71.2 | $ | — | $ | 60 | $ | 60.5 | $ | — | $ | 54.7 | ||||||||||||
Total liabilities of consolidated VIEs | $ | — | $ | 6.2 | $ | 6 | $ | — | $ | 5.1 | $ | 5.1 | ||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Creditors or beneficial interest holders of the consolidated VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. The maximum exposure to loss above at September 30, 2013 and December 31, 2012 excludes unfunded commitments of $0 and $4.1 million, respectively. | |||||||||||||||||||||||
[2] | Included in fair value investments on the consolidated balance sheets. |
Financing_Activities_Tables
Financing Activities (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||||||
Indebtedness at Carrying Value: | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | ||||||||||||||||
7.15% surplus notes | $ | 126.1 | $ | 126.1 | ||||||||||||
7.45% senior unsecured bonds | 252.7 | 252.7 | ||||||||||||||
Total indebtedness | $ | 378.8 | $ | 378.8 | ||||||||||||
Interest Expense on Indebtedness, including Amortization of Debt Issuance Costs | ' | |||||||||||||||
Interest Expense on Indebtedness, including | Three Months Ended | Nine Months Ended | ||||||||||||||
Amortization of Debt Issuance Costs: | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
7.15% surplus notes | $ | 2.3 | $ | 3.1 | $ | 6.9 | $ | 9.4 | ||||||||
7.45% senior unsecured bonds | 4.8 | 4.8 | 15 | 14.3 | ||||||||||||
Interest expense on indebtedness | $ | 7.1 | $ | 7.9 | $ | 21.9 | $ | 23.7 | ||||||||
Separate_Accounts_Death_Benefi1
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Separate Accounts, Death Benefits, Other Insurance Benefit Features And Embedded Product Derivatives [Abstract] | ' | |||||||||
Separate Account Investments of Account Balances of Variable Annuity Contracts with Guarantees | ' | |||||||||
Separate Account Investments of Account Balances of Variable Annuity Contracts | 30-Sep-13 | 31-Dec-12 | ||||||||
with Insurance Guarantees: | ||||||||||
($ in millions) | ||||||||||
Debt securities | $ | 435.7 | $ | 484.6 | ||||||
Equity funds | 1,904.90 | 1,862.20 | ||||||||
Other | 65.1 | 69.6 | ||||||||
Total | $ | 2,405.70 | $ | 2,416.40 | ||||||
Changes in Guaranteed Liability Balances | ' | |||||||||
Changes in Guaranteed Insurance Benefit Liability Balances: | Year Ended | |||||||||
($ in millions) | 30-Sep-13 | |||||||||
Annuity | Annuity | |||||||||
GMDB | GMIB | |||||||||
Liability balance as of January 1, 2013 | $ | 15.9 | $ | 21.7 | ||||||
Incurred | 1.9 | (2.4 | ) | |||||||
Paid | (3.3 | ) | — | |||||||
Change due to net unrealized gains or losses included in AOCI | — | (0.1 | ) | |||||||
Assumption unlocking | — | — | ||||||||
Liability balance as of September 30, 2013 | $ | 14.5 | $ | 19.2 | ||||||
Changes in Guaranteed Insurance Benefit Liability Balances: | Year Ended | |||||||||
($ in millions) | 31-Dec-12 | |||||||||
Annuity | Annuity | |||||||||
GMDB | GMIB | |||||||||
Liability balance as of January 1, 2012 | $ | 16.4 | $ | 17.6 | ||||||
Incurred | 0.6 | 4 | ||||||||
Paid | (1.1 | ) | — | |||||||
Change due to net unrealized gains or losses included in AOCI | — | 0.3 | ||||||||
Assumption unlocking | — | (0.2 | ) | |||||||
Liability balance as of December 31, 2012 | $ | 15.9 | $ | 21.7 | ||||||
Variable Annuity GMDB Benefits by Type | ' | |||||||||
GMDB and GMIB Benefits by Type: | NAR | Average | ||||||||
($ in millions) | Account | after | Attained Age | |||||||
Value | Reinsurance | of Annuitant | ||||||||
30-Sep-13 | ||||||||||
GMDB return of premium | $ | 773.4 | $ | 2.6 | 63 | |||||
GMDB step up | 1,965.20 | 11.9 | 63 | |||||||
GMDB earnings enhancement benefit (“EEB”) | 35.8 | 0.1 | 64 | |||||||
GMDB greater of annual step up and roll up | 26.7 | 5.6 | 67 | |||||||
Total GMDB at September 30, 2013 | 2,801.10 | $ | 20.2 | |||||||
Less: General account value with GMDB | 408.8 | |||||||||
Subtotal separate account liabilities with GMDB | 2,392.30 | |||||||||
Separate account liabilities without GMDB | 958.6 | |||||||||
Total separate account liabilities | $ | 3,350.90 | ||||||||
GMIB [1] at September 30, 2013 | $ | 401.5 | 64 | |||||||
31-Dec-12 | ||||||||||
GMDB return of premium | $ | 799.2 | $ | 6.4 | 62 | |||||
GMDB step up | 1,957.20 | 25.6 | 63 | |||||||
GMDB earnings enhancement benefit (“EEB”) | 37.5 | 0.1 | 63 | |||||||
GMDB greater of annual step up and roll up | 26.7 | 7.4 | 67 | |||||||
Total GMDB at December 31, 2012 | 2,820.60 | $ | 39.5 | |||||||
Less: General account value with GMDB | 420.6 | |||||||||
Subtotal separate account liabilities with GMDB | 2,400.00 | |||||||||
Separate account liabilities without GMDB | 916.5 | |||||||||
Total separate account liabilities | $ | 3,316.50 | ||||||||
GMIB [1] at December 31, 2012 | $ | 416.8 | 64 | |||||||
——————— | ||||||||||
[1] | Policies with a GMIB also have a GMDB, however these benefits are not additive. When a policy terminates due to death, any NAR related or GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. | |||||||||
Changes in Guaranteed Liability Balance | ' | |||||||||
Changes in Guaranteed Liability Balances: | Fixed Indexed Annuity | |||||||||
($ in millions) | GMWB & GMDB | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Liability balance, beginning of period | $ | 103.6 | $ | 5.6 | ||||||
Incurred | 44.9 | 40.1 | ||||||||
Paid | (0.2 | ) | — | |||||||
Change due to net unrealized gains or losses included in AOCI | (47.7 | ) | 57.9 | |||||||
Assumption unlocking | — | — | ||||||||
Liability balance, end of period | $ | 100.6 | $ | 103.6 | ||||||
Changes in Guaranteed Liability Balances: | Universal Life | |||||||||
($ in millions) | Secondary Guarantees | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Liability balance, beginning of period | $ | 137.7 | $ | 118.5 | ||||||
Incurred | 35 | 30.8 | ||||||||
Paid | (11.8 | ) | (9.5 | ) | ||||||
Change due to net unrealized gains or losses included in AOCI | (1.9 | ) | 2.4 | |||||||
Assumption unlocking | — | (4.5 | ) | |||||||
Liability balance, end of period | $ | 159 | $ | 137.7 | ||||||
Changes in Additional Liability Balances: | Universal Life | |||||||||
($ in millions) | Profits Followed by Losses | |||||||||
30-Sep-13 | 31-Dec-12 | |||||||||
Liability balance, beginning of period | $ | 308.4 | $ | 200.5 | ||||||
Expenses | 54.6 | 46.3 | ||||||||
Change due to net unrealized gains or losses included in AOCI | (21.4 | ) | 16.8 | |||||||
Assumption unlocking | — | 44.8 | ||||||||
Liability balance, end of period | $ | 341.6 | $ | 308.4 | ||||||
Non-Insurance Guaranteed Product Features | ' | |||||||||
Certain separate account variable products contain a GMWB, GMAB and/or COMBO rider as defined in the 2012 Form 10-K. These features are accounted for as embedded derivatives as described below. | ||||||||||
Non-Insurance Guaranteed Product Features: | Average | |||||||||
($ in millions) | Attained | |||||||||
Account | Age of | |||||||||
Value | Annuitant | |||||||||
30-Sep-13 | ||||||||||
GMWB | $ | 582.9 | 64 | |||||||
GMAB | 388.5 | 58 | ||||||||
COMBO | 7.4 | 62 | ||||||||
Total at September 30, 2013 | $ | 978.8 | ||||||||
31-Dec-12 | ||||||||||
GMWB | $ | 578.4 | 63 | |||||||
GMAB | 390.6 | 58 | ||||||||
COMBO | 8.5 | 62 | ||||||||
Total at December 31, 2012 | $ | 977.5 | ||||||||
Variable Annuity Embedded Derivative Liabilities | ' | |||||||||
Variable Annuity Embedded Derivative Liabilities: | 30-Sep-13 | 31-Dec-12 | ||||||||
($ in millions) | ||||||||||
GMWB | $ | — | $ | 15.3 | ||||||
GMAB | 4.2 | 14.6 | ||||||||
COMBO | (0.4 | ) | (0.3 | ) | ||||||
Total variable annuity embedded derivative liabilities | $ | 3.8 | $ | 29.6 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||
Derivative Instruments: | Fair Value as of | |||||||||||||||||||||||
($ in millions) | Notional | 30-Sep-13 | ||||||||||||||||||||||
Maturity | Amount | Assets | Liabilities [1] | |||||||||||||||||||||
Interest rate swaps | 2016-2027 | $ | 160 | $ | 6.8 | $ | 7.2 | |||||||||||||||||
Variance swaps | 2015-2017 | 0.9 | — | 7.3 | ||||||||||||||||||||
Swaptions | 2024-2025 | 1,402.00 | 22.2 | — | ||||||||||||||||||||
Put options | 2015-2022 | 406 | 43.1 | — | ||||||||||||||||||||
Call options [2] | 2013-2018 | 1,623.90 | 107.9 | 68.2 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | — | 0.5 | ||||||||||||||||||||
Equity futures | 2013 | 156.8 | 17.2 | — | ||||||||||||||||||||
Total derivative instruments | $ | 3,759.60 | $ | 197.2 | $ | 83.2 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $2.5 million. | |||||||||||||||||||||||
Derivative Instruments: | Fair Value as of | |||||||||||||||||||||||
($ in millions) | Notional | 31-Dec-12 | ||||||||||||||||||||||
Maturity | Amount | Assets | Liabilities [1] | |||||||||||||||||||||
Interest rate swaps | 2016-2027 | $ | 180 | $ | 15.5 | $ | 7.7 | |||||||||||||||||
Variance swaps | 2015-2017 | 0.9 | — | 4.4 | ||||||||||||||||||||
Swaptions | 2024 | 25 | — | — | ||||||||||||||||||||
Put options | 2015-2022 | 406 | 72.7 | — | ||||||||||||||||||||
Call options [2] | 2013-2017 | 1,328.40 | 53.3 | 33.6 | ||||||||||||||||||||
Cross currency swaps | 2016 | 10 | — | 0.1 | ||||||||||||||||||||
Equity futures | 2013 | 184.7 | 15.9 | — | ||||||||||||||||||||
Total derivative instruments | $ | 2,135.00 | $ | 157.4 | $ | 45.8 | ||||||||||||||||||
——————— | ||||||||||||||||||||||||
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||||||||||||||||||||||
[2] | Includes a contingent receivable of $2.7 million. | |||||||||||||||||||||||
Derivative Instrument Gains (Losses) Recognized in Earnings | ' | |||||||||||||||||||||||
Derivative Instrument Gains (Losses) Recognized in | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Realized Investment Gains (Losses): | September 30, | September 30, | ||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Interest rate swaps | $ | (2.9 | ) | $ | (0.4 | ) | $ | (8.9 | ) | $ | 0.5 | |||||||||||||
Variance swaps | (1.2 | ) | (1.8 | ) | (3.0 | ) | (6.4 | ) | ||||||||||||||||
Swaptions | (4.7 | ) | — | 8.9 | (0.2 | ) | ||||||||||||||||||
Put options | (8.8 | ) | (8.4 | ) | (30.2 | ) | (14.6 | ) | ||||||||||||||||
Call options | 10.6 | 7.4 | 30.5 | 7.6 | ||||||||||||||||||||
Equity futures | (7.7 | ) | (11.1 | ) | (31.8 | ) | (20.5 | ) | ||||||||||||||||
Cross currency swaps | (0.5 | ) | 0.1 | (0.4 | ) | 0.2 | ||||||||||||||||||
Embedded derivatives | 8.9 | 7.1 | 14.6 | 6.9 | ||||||||||||||||||||
Total derivative instrument losses recognized in | $ | (6.3 | ) | $ | (7.1 | ) | $ | (20.3 | ) | $ | (26.5 | ) | ||||||||||||
realized investment gains (losses) | ||||||||||||||||||||||||
Offsetting Assets and Liabilities | ' | |||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Offsetting of | Gross | Gross amounts not offset | ||||||||||||||||||||||
Derivative Assets/Liabilities: | Gross | amounts | Net amounts | in the balance sheet | ||||||||||||||||||||
($ in millions) | amounts | offset in the | presented in the | Financial | Cash collateral | |||||||||||||||||||
recognized [1] | balance sheet | balance sheet | instruments | pledged [2] | Net amount | |||||||||||||||||||
Total derivative assets | $ | 197.2 | $ | — | $ | 197.2 | $ | (82.8 | ) | $ | — | $ | 114.4 | |||||||||||
Total derivative liabilities | $ | (83.2 | ) | $ | — | $ | (83.2 | ) | $ | 82.8 | $ | 0.4 | $ | — | ||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Offsetting of | Gross | Gross amounts not offset | ||||||||||||||||||||||
Derivative Assets/Liabilities: | Gross | amounts | Net amounts | in the balance sheet | ||||||||||||||||||||
($ in millions) | amounts | offset in the | presented in the | Financial | Cash collateral | |||||||||||||||||||
recognized [1] | balance sheet | balance sheet | instruments | pledged [2] | Net amount | |||||||||||||||||||
Total derivative assets | $ | 157.4 | $ | — | $ | 157.4 | $ | (45.7 | ) | $ | — | $ | 111.7 | |||||||||||
Total derivative liabilities | $ | (45.8 | ) | $ | — | $ | (45.8 | ) | $ | 45.7 | $ | 0.1 | $ | — | ||||||||||
——————— | ||||||||||||||||||||||||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | |||||||||||||||||||||||
[2] | Cash collateral pledged with derivative counterparties is recorded within other assets on the balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $8.8 million and $9.1 million as of September 30, 2013 and December 31, 2012, respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Financial instruments carried at fair value by ASC 820-10 valuation hierarchy | ' | |||||||||||||||||||||||||||||||
The following tables present the financial instruments carried at fair value on a recurring basis by ASC 820-10 valuation hierarchy (as described above). There were no financial instruments carried at fair value on a non-recurring basis as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency | — | 96 | 349.8 | [1] | $ | 445.8 | ||||||||||||||||||||||||||
State and political subdivision | — | 139.5 | 238.1 | 377.6 | ||||||||||||||||||||||||||||
Foreign government | — | 179.1 | 15.7 | 194.8 | ||||||||||||||||||||||||||||
Corporate | — | 3,735.30 | 3,889.90 | 7,625.20 | ||||||||||||||||||||||||||||
CMBS | — | 625.1 | 129.7 | 754.8 | ||||||||||||||||||||||||||||
RMBS | — | 1,156.20 | 588.7 | 1,744.90 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 220.7 | 220.7 | ||||||||||||||||||||||||||||
Other asset-backed | — | 80.9 | 268.5 | 349.4 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,012.10 | 5,701.10 | 11,713.20 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | 3.1 | — | 42.1 | 45.2 | ||||||||||||||||||||||||||||
Short-term investments | 454.8 | — | — | 454.8 | ||||||||||||||||||||||||||||
Derivative assets | 17.2 | 180 | — | 197.2 | ||||||||||||||||||||||||||||
Fair value investments [2] | 31.2 | 14 | 178.5 | 223.7 | ||||||||||||||||||||||||||||
Separate account assets | 3,350.90 | — | — | 3,350.90 | ||||||||||||||||||||||||||||
Total assets | $ | 3,857.20 | $ | 6,206.10 | $ | 5,921.70 | $ | 15,985.00 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 83.2 | $ | — | $ | 83.2 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 72.8 | 72.8 | ||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 83.2 | $ | 72.8 | $ | 156 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at September 30, 2013 include $133.4 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $22.6 million as of September 30, 2013. Changes in the fair value of these assets are recorded through net investment income. Additionally, $67.7 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.6 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
There were no transfers of assets between Level 1 and Level 2 during the nine months ended September 30, 2013. | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments by Level: | 31-Dec-12 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | 115.2 | $ | 296.7 | [1] | $ | 411.9 | |||||||||||||||||||||||
State and political subdivision | — | 144.8 | 212.4 | 357.2 | ||||||||||||||||||||||||||||
Foreign government | — | 158.5 | 45.8 | 204.3 | ||||||||||||||||||||||||||||
Corporate | — | 3,857.70 | 3,812.30 | 7,670.00 | ||||||||||||||||||||||||||||
CMBS | — | 792.5 | 89.7 | 882.2 | ||||||||||||||||||||||||||||
RMBS | — | 1,062.40 | 709.3 | 1,771.70 | ||||||||||||||||||||||||||||
CDO/CLO | — | — | 223.7 | 223.7 | ||||||||||||||||||||||||||||
Other asset-backed | — | 125.5 | 309.9 | 435.4 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 6,256.60 | 5,699.80 | 11,956.40 | ||||||||||||||||||||||||||||
Available-for-sale equity securities | 2.1 | — | 32.7 | 34.8 | ||||||||||||||||||||||||||||
Short-term investments | 699.6 | — | — | 699.6 | ||||||||||||||||||||||||||||
Derivative assets | 15.9 | 141.5 | — | 157.4 | ||||||||||||||||||||||||||||
Fair value investments [2] | 30.6 | 17.6 | 153.3 | 201.5 | ||||||||||||||||||||||||||||
Separate account assets | 3,316.50 | — | — | 3,316.50 | ||||||||||||||||||||||||||||
Total assets | $ | 4,064.70 | $ | 6,415.70 | $ | 5,885.80 | $ | 16,366.20 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 45.8 | $ | — | $ | 45.8 | ||||||||||||||||||||||||
Embedded derivatives | — | — | 80.8 | 80.8 | ||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 45.8 | $ | 80.8 | $ | 126.6 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
[2] | Fair value investments at December 31, 2012 include $126.1 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $21.9 million as of December 31, 2012. Changes in the fair value of these assets are recorded through net investment income. Additionally, $53.5 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.7 million of which are Level 1 securities. | |||||||||||||||||||||||||||||||
Corporates fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
The following tables present corporates carried at fair value and on a recurring basis by sector. | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | 30-Sep-13 | |||||||||||||||||||||||||||||||
($ in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 920.5 | $ | 1,598.60 | $ | 2,519.10 | ||||||||||||||||||||||||
Energy | — | 433.6 | 286.6 | 720.2 | ||||||||||||||||||||||||||||
Financial services | — | 1,491.40 | 869.3 | 2,360.70 | ||||||||||||||||||||||||||||
Technical/communications | — | 268.9 | 84.1 | 353 | ||||||||||||||||||||||||||||
Transportation | — | 90.9 | 180 | 270.9 | ||||||||||||||||||||||||||||
Utilities | — | 303.1 | 562.9 | 866 | ||||||||||||||||||||||||||||
Other | — | 226.9 | 308.4 | 535.3 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,735.30 | $ | 3,889.90 | $ | 7,625.20 | ||||||||||||||||||||||||
Fair Values of Corporates by Level and Sector: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Corporates | ||||||||||||||||||||||||||||||||
Consumer | $ | — | $ | 1,160.30 | $ | 1,860.80 | $ | 3,021.10 | ||||||||||||||||||||||||
Energy | — | 277.8 | 142.7 | 420.5 | ||||||||||||||||||||||||||||
Financial services | — | 1,456.50 | 762.7 | 2,219.20 | ||||||||||||||||||||||||||||
Technical/communications | — | 154.7 | 44.6 | 199.3 | ||||||||||||||||||||||||||||
Transportation | — | 72.6 | 156 | 228.6 | ||||||||||||||||||||||||||||
Utilities | — | 506.5 | 631.8 | 1,138.30 | ||||||||||||||||||||||||||||
Other | — | 229.3 | 213.7 | 443 | ||||||||||||||||||||||||||||
Total corporates | $ | — | $ | 3,857.70 | $ | 3,812.30 | $ | 7,670.00 | ||||||||||||||||||||||||
Fair value hierarchy | ' | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 327.9 | $ | 30.4 | $ | (7.9 | ) | $ | — | $ | — | $ | — | $ | (0.6 | ) | $ | 349.8 | ||||||||||||||
State and political subdivision | 207.9 | 36.2 | (0.6 | ) | — | (3.3 | ) | — | (2.1 | ) | 238.1 | |||||||||||||||||||||
Foreign government | 15.5 | — | — | — | — | — | 0.2 | 15.7 | ||||||||||||||||||||||||
Corporate | 3,841.80 | 138.4 | (28.7 | ) | 45.2 | (1.1 | ) | (0.7 | ) | (105.0 | ) | 3,889.90 | ||||||||||||||||||||
CMBS | 116.3 | 20.1 | (6.6 | ) | — | — | 0.8 | (0.9 | ) | 129.7 | ||||||||||||||||||||||
RMBS | 634.1 | 0.5 | (30.4 | ) | 4.7 | — | (1.6 | ) | (18.6 | ) | 588.7 | |||||||||||||||||||||
CDO/CLO | 231 | 16.3 | (7.2 | ) | — | — | — | (19.4 | ) | 220.7 | ||||||||||||||||||||||
Other asset-backed | 285.1 | 16.9 | (28.0 | ) | — | (0.9 | ) | (0.3 | ) | (4.3 | ) | 268.5 | ||||||||||||||||||||
Total available-for-sale | 5,659.60 | 258.8 | (109.4 | ) | 49.9 | (5.3 | ) | (1.8 | ) | (150.7 | ) | 5,701.10 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 35.6 | 0.1 | — | — | — | — | 6.4 | 42.1 | ||||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 171 | 6.5 | (4.2 | ) | — | — | 5.2 | — | 178.5 | |||||||||||||||||||||||
Total assets | $ | 5,866.20 | $ | 265.4 | $ | (113.6 | ) | $ | 49.9 | $ | (5.3 | ) | $ | 3.4 | $ | (144.3 | ) | $ | 5,921.70 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 322.9 | $ | 0.6 | $ | (2.3 | ) | $ | — | $ | — | $ | 0.2 | $ | (0.8 | ) | $ | 320.6 | ||||||||||||||
State and political subdivision | 181.7 | 10.2 | (0.4 | ) | — | — | — | 1.4 | 192.9 | |||||||||||||||||||||||
Foreign government | 52.9 | — | — | — | — | — | 2.1 | 55 | ||||||||||||||||||||||||
Corporate | 3,702.20 | 88.4 | (10.2 | ) | — | (18.8 | ) | — | (28.4 | ) | 3,733.20 | |||||||||||||||||||||
CMBS | 99.2 | — | — | — | — | — | (25.5 | ) | 73.7 | |||||||||||||||||||||||
RMBS | 857.5 | 3.8 | (9.1 | ) | — | — | (0.4 | ) | (19.0 | ) | 832.8 | |||||||||||||||||||||
CDO/CLO | 207.6 | — | (5.5 | ) | — | — | 0.5 | 13.9 | 216.5 | |||||||||||||||||||||||
Other asset-backed | 297.5 | 3.5 | (5.9 | ) | 32.5 | — | (0.5 | ) | (6.1 | ) | 321 | |||||||||||||||||||||
Total available-for-sale | 5,721.50 | 106.5 | (33.4 | ) | 32.5 | (18.8 | ) | (0.2 | ) | (62.4 | ) | 5,745.70 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 36 | — | — | — | — | (1.5 | ) | (5.2 | ) | 29.3 | ||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 159.3 | 1.8 | (10.2 | ) | — | (1.4 | ) | 14.6 | — | 164.1 | ||||||||||||||||||||||
Total assets | $ | 5,916.80 | $ | 108.3 | $ | (43.6 | ) | $ | 32.5 | $ | (20.2 | ) | $ | 12.9 | $ | (67.6 | ) | $ | 5,939.10 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 296.7 | $ | 78.8 | $ | (11.7 | ) | $ | — | $ | — | $ | — | $ | (14.0 | ) | $ | 349.8 | ||||||||||||||
State and political subdivision | 212.4 | 59.5 | (2.2 | ) | — | — | — | (31.6 | ) | 238.1 | ||||||||||||||||||||||
Foreign government | 45.8 | — | — | 8 | (31.3 | ) | — | (6.8 | ) | 15.7 | ||||||||||||||||||||||
Corporate | 3,812.30 | 547.1 | (60.3 | ) | 95.5 | (41.3 | ) | (2.1 | ) | (461.3 | ) | 3,889.90 | ||||||||||||||||||||
CMBS | 89.7 | 60.3 | (9.8 | ) | — | (8.7 | ) | (1.2 | ) | (0.6 | ) | 129.7 | ||||||||||||||||||||
RMBS | 709.3 | 1.7 | (72.1 | ) | 5.1 | — | (3.6 | ) | (51.7 | ) | 588.7 | |||||||||||||||||||||
CDO/CLO | 223.7 | 61.4 | (20.1 | ) | — | — | (0.4 | ) | (43.9 | ) | 220.7 | |||||||||||||||||||||
Other asset-backed | 309.9 | 17.9 | (21.4 | ) | — | (1.3 | ) | (0.4 | ) | (36.2 | ) | 268.5 | ||||||||||||||||||||
Total available-for-sale | 5,699.80 | 826.7 | (197.6 | ) | 108.6 | (82.6 | ) | (7.7 | ) | (646.1 | ) | 5,701.10 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 32.7 | 5 | (2.3 | ) | — | — | — | 6.7 | 42.1 | |||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 153.3 | 25.8 | (10.2 | ) | 1.3 | — | 8.3 | — | 178.5 | |||||||||||||||||||||||
Total assets | $ | 5,885.80 | $ | 857.5 | $ | (210.1 | ) | $ | 109.9 | $ | (82.6 | ) | $ | 0.6 | $ | (639.4 | ) | $ | 5,921.70 | |||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except limited partnerships and other investments and fair value investments. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Financial Assets: | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
($ in millions) | Realized & | |||||||||||||||||||||||||||||||
unrealized | Unrealized | |||||||||||||||||||||||||||||||
gains | gains | |||||||||||||||||||||||||||||||
Balance, | Transfers | Transfers | (losses) | (losses) | ||||||||||||||||||||||||||||
beginning | into | out of | included in | included | ||||||||||||||||||||||||||||
of period | Purchases | Sales | Level 3 | Level 3 | income [1] | in OCI | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [2] | $ | 336.2 | $ | 2.6 | $ | (13.9 | ) | $ | — | $ | — | $ | 0.2 | $ | (4.5 | ) | $ | 320.6 | ||||||||||||||
State and political subdivision | 116.6 | 40.5 | (2.5 | ) | 22.2 | (8.3 | ) | — | 24.4 | 192.9 | ||||||||||||||||||||||
Foreign government | 51.8 | 5 | (0.1 | ) | — | — | — | (1.7 | ) | 55 | ||||||||||||||||||||||
Corporate | 3,501.50 | 457.6 | (65.8 | ) | 56.3 | (122.4 | ) | (0.5 | ) | (93.5 | ) | 3,733.20 | ||||||||||||||||||||
CMBS | 100.6 | — | (8.2 | ) | 12.1 | (37.1 | ) | (4.2 | ) | 10.5 | 73.7 | |||||||||||||||||||||
RMBS | 944.2 | 2.9 | (94.6 | ) | — | — | (6.7 | ) | (13.0 | ) | 832.8 | |||||||||||||||||||||
CDO/CLO | 232.4 | 9.9 | (18.6 | ) | — | — | 1.3 | (8.5 | ) | 216.5 | ||||||||||||||||||||||
Other asset-backed | 335.5 | 17.2 | (26.4 | ) | 0.1 | (11.4 | ) | (1.5 | ) | 7.5 | 321 | |||||||||||||||||||||
Total available-for-sale | 5,618.80 | 535.7 | (230.1 | ) | 90.7 | (179.2 | ) | (11.4 | ) | (78.8 | ) | 5,745.70 | ||||||||||||||||||||
debt securities | ||||||||||||||||||||||||||||||||
Available-for-sale equity securities | 29.4 | 5.6 | — | 4.8 | — | (1.5 | ) | (9.0 | ) | 29.3 | ||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Fair value investments | 144.8 | 26.3 | (9.0 | ) | — | — | 2 | — | 164.1 | |||||||||||||||||||||||
Total assets | $ | 5,793.00 | $ | 567.6 | $ | (239.1 | ) | $ | 95.5 | $ | (179.2 | ) | $ | (10.9 | ) | $ | (87.8 | ) | $ | 5,939.10 | ||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Reflected in realized investment gains and losses for all assets except limited partnerships and other investments and fair value investments. | |||||||||||||||||||||||||||||||
[2] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Embedded Derivative Liabilities | ' | |||||||||||||||||||||||||||||||
Level 3 Financial Liabilities: | Embedded Derivative Liabilities | |||||||||||||||||||||||||||||||
($ in millions) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | 77.6 | $ | 89.3 | $ | 80.8 | $ | 84.5 | ||||||||||||||||||||||||
Net purchases/(sales) | 4.1 | 2.2 | 6.6 | 6.8 | ||||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||||||||||||||||||
Realized (gains) losses [1] | (8.9 | ) | (7.1 | ) | (14.6 | ) | (6.9 | ) | ||||||||||||||||||||||||
Balance, end of period | $ | 72.8 | $ | 84.4 | $ | 72.8 | $ | 84.4 | ||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Realized gains and losses are included in net realized investment gains on the consolidated statements of income and comprehensive income. | |||||||||||||||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information | ' | |||||||||||||||||||||||||||||||
The following table presents quantitative estimates about unobservable inputs used in the fair value measurement of significant categories of internally priced assets. | ||||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Fair | Valuation | Unobservable | ||||||||||||||||||||||||||||||
Value | Technique(s) | Input | Range (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 349.8 | Discounted cash flow | Yield | 1.08%-5.40% (3.46%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 108 | Discounted cash flow | Yield | 2.28%-4.23% (3.55%) | |||||||||||||||||||||||||||
Corporate | $ | 2,922.90 | Discounted cash flow | Yield | 1.08%-6.44% (3.34%) | |||||||||||||||||||||||||||
Other asset-backed | $ | 48.3 | Discounted cash flow | Yield | 0.8%-4.42% (2.35%) | |||||||||||||||||||||||||||
Prepayment rate | 2% | |||||||||||||||||||||||||||||||
Default rate | 2.53% for 48 mos then .37% thereafter | |||||||||||||||||||||||||||||||
Recovery rate | 10% (TRUPS) | |||||||||||||||||||||||||||||||
Fair value investments | $ | 5.2 | Discounted cash flow | Default rate | 0.35% | |||||||||||||||||||||||||||
Recovery rate | 45% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
Level 3 Assets: [1] | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Fair | Valuation | Unobservable | ||||||||||||||||||||||||||||||
Value | Technique(s) | Input | Range (Weighted Average) | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 286.1 | Discounted cash flow | Yield | 1.46%-5.19% (3.20%) | |||||||||||||||||||||||||||
State and political subdivision | $ | 107.4 | Discounted cash flow | Yield | 1.94%-3.53% (2.94%) | |||||||||||||||||||||||||||
Corporate | $ | 2,888.90 | Discounted cash flow | Yield | 1.36%-7.82% (3.00%) | |||||||||||||||||||||||||||
CDO/CLO | $ | 15.5 | Discounted cash flow | Prepayment rate | 20% (CLOs) | |||||||||||||||||||||||||||
Default rate | 2.55% (CLOs) | |||||||||||||||||||||||||||||||
Recovery rate | 65% (Loans), 35% (High yield bonds), | |||||||||||||||||||||||||||||||
45% (investment grade bonds) | ||||||||||||||||||||||||||||||||
Reinvestment spread | 3 mo LIBOR + 400bps (CLOs) | |||||||||||||||||||||||||||||||
Other asset-backed | $ | 43.5 | Discounted cash flow | Yield | 0.5%-9.5% (3.41%) | |||||||||||||||||||||||||||
Prepayment rate | 2% | |||||||||||||||||||||||||||||||
Default rate | 2.53% for 48 mos then .33% thereafter | |||||||||||||||||||||||||||||||
Recovery rate | 10% (TRUPS) | |||||||||||||||||||||||||||||||
Fair value investments | $ | 5 | Discounted cash flow | Default rate | 0.24% | |||||||||||||||||||||||||||
Recovery rate | 45% | |||||||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations for which unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | ' | |||||||||||||||||||||||||||||||
The following table presents quantitative estimates about unobservable inputs used in the fair value measurement of internally priced liabilities. | ||||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input | Range | |||||||||||||||||||||||||||||
Embedded derivatives | $ | 69 | Budget method | Swap curve | 0.22% - 3.46% | |||||||||||||||||||||||||||
(FIA) | Mortality rate | 75% of A2000 basic table | ||||||||||||||||||||||||||||||
Lapse rate | 0.60% - 35.00% | |||||||||||||||||||||||||||||||
CSA | 3.99% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | 3.8 | Risk neutral stochastic valuation methodology | Volatility surface | 11.46% - 51.22% | |||||||||||||||||||||||||||
(GMAB / GMWB) | ||||||||||||||||||||||||||||||||
Swap curve | 0.14% - 3.88% | |||||||||||||||||||||||||||||||
Mortality rate | 75% of A2000 basic table | |||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 60.00% | |||||||||||||||||||||||||||||||
CSA | 3.99% | |||||||||||||||||||||||||||||||
Level 3 Liabilities: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input | Range | |||||||||||||||||||||||||||||
Embedded derivatives | $ | 51.2 | Budget method | Swap curve | 0.21% - 2.50% | |||||||||||||||||||||||||||
(FIA) | Mortality rate | 75% of A2000 basic table | ||||||||||||||||||||||||||||||
Lapse rate | 1.00% - 35.00% | |||||||||||||||||||||||||||||||
CSA | 4.47% | |||||||||||||||||||||||||||||||
Embedded derivatives | $ | 29.6 | Risk neutral stochastic valuation methodology | Volatility surface | 11.67% - 50.83% | |||||||||||||||||||||||||||
(GMAB / GMWB) | ||||||||||||||||||||||||||||||||
Swap curve | 0.36% - 3.17% | |||||||||||||||||||||||||||||||
Mortality rate | 75% of A2000 basic table | |||||||||||||||||||||||||||||||
Lapse rate | 0.00% - 60.00% | |||||||||||||||||||||||||||||||
CSA | 4.47% | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source | ' | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 30-Sep-13 | |||||||||||||||||||||||||||||||
Internal [1] | External [2] | Total | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 349.8 | $ | — | $ | 349.8 | ||||||||||||||||||||||||||
State and political subdivision | 108 | 130.1 | 238.1 | |||||||||||||||||||||||||||||
Foreign government | — | 15.7 | 15.7 | |||||||||||||||||||||||||||||
Corporate | 2,922.90 | 967 | 3,889.90 | |||||||||||||||||||||||||||||
CMBS | — | 129.7 | 129.7 | |||||||||||||||||||||||||||||
RMBS | — | 588.7 | 588.7 | |||||||||||||||||||||||||||||
CDO/CLO | — | 220.7 | 220.7 | |||||||||||||||||||||||||||||
Other asset-backed | 48.3 | 220.2 | 268.5 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,429.00 | 2,272.10 | 5,701.10 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 42.1 | 42.1 | |||||||||||||||||||||||||||||
Short-term investments | — | — | — | |||||||||||||||||||||||||||||
Fair value investments | 5.2 | 173.3 | 178.5 | |||||||||||||||||||||||||||||
Total assets | $ | 3,434.20 | $ | 2,487.50 | $ | 5,921.70 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 72.8 | $ | — | $ | 72.8 | ||||||||||||||||||||||||||
Total liabilities | $ | 72.8 | $ | — | $ | 72.8 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | As of | |||||||||||||||||||||||||||||||
($ in millions) | 31-Dec-12 | |||||||||||||||||||||||||||||||
Internal [1] | External [2] | Total | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
U.S. government and agency [3] | $ | 286.1 | $ | 10.6 | $ | 296.7 | ||||||||||||||||||||||||||
State and political subdivision | 107.4 | 105 | 212.4 | |||||||||||||||||||||||||||||
Foreign government | — | 45.8 | 45.8 | |||||||||||||||||||||||||||||
Corporate | 2,888.90 | 923.4 | 3,812.30 | |||||||||||||||||||||||||||||
CMBS | — | 89.7 | 89.7 | |||||||||||||||||||||||||||||
RMBS | — | 709.3 | 709.3 | |||||||||||||||||||||||||||||
CDO/CLO | 15.5 | 208.2 | 223.7 | |||||||||||||||||||||||||||||
Other asset-backed | 43.5 | 266.4 | 309.9 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | 3,341.40 | 2,358.40 | 5,699.80 | |||||||||||||||||||||||||||||
Available-for-sale equity securities | — | 32.7 | 32.7 | |||||||||||||||||||||||||||||
Short-term investments | — | — | — | |||||||||||||||||||||||||||||
Fair value investments | 5 | 148.3 | 153.3 | |||||||||||||||||||||||||||||
Total assets | $ | 3,346.40 | $ | 2,539.40 | $ | 5,885.80 | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 80.8 | $ | — | $ | 80.8 | ||||||||||||||||||||||||||
Total liabilities | $ | 80.8 | $ | — | $ | 80.8 | ||||||||||||||||||||||||||
——————— | ||||||||||||||||||||||||||||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||||||||||||||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||||||||||||||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||||||||||||||||||||||||||
Company's financial instruments where the carrying amounts and fair values differ: | ' | |||||||||||||||||||||||||||||||
The Company is required by U.S. GAAP to disclose the fair value of certain financial instruments including those that are not carried at fair value. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ: | ||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values | As of | As of | ||||||||||||||||||||||||||||||
of Financial Instruments: | Fair Value | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
($ in millions) | Hierarchy | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||
Level | Value | Value | Value | Value | ||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Policy loans | Level 3 | $ | 2,329.90 | $ | 2,317.90 | $ | 2,354.70 | $ | 2,342.80 | |||||||||||||||||||||||
Cash and cash equivalents | Level 1 | 492.8 | 492.8 | 246.4 | 246.4 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Investment contracts | Level 3 | $ | 3,328.60 | $ | 3,323.40 | $ | 3,040.70 | $ | 3,045.90 | |||||||||||||||||||||||
Surplus notes | Level 3 | 126.1 | 93.3 | 126.1 | 95 | |||||||||||||||||||||||||||
Senior unsecured bonds | Level 2 | 252.7 | 234 | 252.7 | 217.1 | |||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Changes in each component of AOCI attributable to the Company for the periods ended September 30 are as follows below (net of tax): | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Net Unrealized | |||||||||||||||
Attributable to The Phoenix Companies, Inc.: | Gains / (Losses) | |||||||||||||||
($ in millions) | on Investments | Net Unrealized | Net | |||||||||||||
where Credit- | Gains / (Losses) | Pension | ||||||||||||||
related OTTI | on All Other | Liability | ||||||||||||||
was Recognized [1] | Investments [1] | Adjustments | Total | |||||||||||||
Balance as of December 31, 2011 | $ | (35.1 | ) | $ | 104 | $ | (299.6 | ) | $ | (230.7 | ) | |||||
Change in component during the period before reclassification | 27.5 | (28.7 | ) | (0.1 | ) | (1.3 | ) | |||||||||
Balance as of September 30, 2012 | $ | (7.6 | ) | $ | 75.3 | $ | (299.7 | ) | $ | (232.0 | ) | |||||
Balance as of December 31, 2012 | $ | (6.2 | ) | $ | 77.9 | $ | (321.0 | ) | $ | (249.3 | ) | |||||
Change in component during the period before reclassification | 18.3 | (23.2 | ) | 3.9 | (1.0 | ) | ||||||||||
Amounts reclassified from AOCI | (3.1 | ) | (10.6 | ) | 5.1 | (8.6 | ) | |||||||||
Balance as of September 30, 2013 | $ | 9 | $ | 44.1 | $ | (312.0 | ) | $ | (258.9 | ) | ||||||
——————— | ||||||||||||||||
[1] | See Note 7 to these financial statements for additional information regarding offsets to net unrealized investment gains and losses which include policyholder dividend obligation, DAC and other actuarial offsets, and deferred income tax expense (benefit). | |||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||||||
Reclassifications from AOCI consist of the following: | ||||||||||||||||
AOCI | Amounts Reclassified from AOCI | Affected Line Item in the | ||||||||||||||
Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
($ in millions) | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||
Net unrealized gains / (losses) on investments where | ||||||||||||||||
credit-related OTTI was recognized | ||||||||||||||||
Available-for-sale securities | $ | 2.2 | $ | 4.8 | Net realized capital gains (losses) | |||||||||||
2.2 | 4.8 | Total before income taxes | ||||||||||||||
0.8 | 1.7 | Income tax expense | ||||||||||||||
$ | 1.4 | $ | 3.1 | Net income (loss) | ||||||||||||
Net unrealized investment gains / (losses) on | ||||||||||||||||
all other investments | ||||||||||||||||
Available-for-sale securities | $ | 14.9 | $ | 16.3 | Net realized capital gains (losses) | |||||||||||
14.9 | 16.3 | Total before income taxes | ||||||||||||||
5.2 | 5.7 | Income tax expense | ||||||||||||||
$ | 9.7 | $ | 10.6 | Net income (loss) | ||||||||||||
Net pension liability adjustment | ||||||||||||||||
Net gain amortization | $ | (2.9 | ) | $ | (8.7 | ) | Other operating expense | |||||||||
Prior service cost amortization | 0.3 | 0.9 | Other operating expense | |||||||||||||
(2.6 | ) | (7.8 | ) | Total before income taxes | ||||||||||||
(0.9 | ) | (2.7 | ) | Income tax expense | ||||||||||||
$ | (1.7 | ) | $ | (5.1 | ) | Net income (loss) | ||||||||||
Total amounts reclassified from AOCI | $ | 9.4 | $ | 8.6 | Net income (loss) | |||||||||||
Employee_Benefit_Plans_and_Emp1
Employee Benefit Plans and Employment Agreements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of Pension Benefit Costs | ' | |||||||||||||||
The components of pension and post-employment benefit costs follow: | ||||||||||||||||
Components of Pension Benefit Costs: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 0.5 | $ | 0.2 | $ | 1.5 | $ | 0.7 | ||||||||
Interest cost | 8.2 | 8.7 | 24.6 | 26.1 | ||||||||||||
Expected return on plan assets | (9.0 | ) | (8.6 | ) | (27.0 | ) | (25.7 | ) | ||||||||
Net loss amortization | 2.9 | 2.6 | 8.7 | 7.8 | ||||||||||||
Pension benefit cost | $ | 2.6 | $ | 2.9 | $ | 7.8 | $ | 8.9 | ||||||||
Components of Other Postretirement Benefit Costs | ' | |||||||||||||||
Components of Other Post-employment Benefit Costs: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | — | $ | 0.1 | $ | — | $ | 0.2 | ||||||||
Interest cost | 0.3 | 0.5 | 0.9 | 1.4 | ||||||||||||
Net gain amortization | — | — | — | (0.1 | ) | |||||||||||
Prior service cost amortization | (0.3 | ) | (0.4 | ) | (0.9 | ) | (1.2 | ) | ||||||||
Other post-employment benefit cost | $ | — | $ | 0.2 | $ | — | $ | 0.3 | ||||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | |||||||||||||||
The compensation cost that has been charged against income for these plans is summarized in the following table: | ||||||||||||||||
Share-Based Compensation Plans: | Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Compensation cost charged to income from | $ | 0.2 | $ | 0.7 | $ | 2.7 | $ | 2.7 | ||||||||
continuing operations | ||||||||||||||||
Income tax expense (benefit) before valuation allowance | $ | (0.1 | ) | $ | (0.2 | ) | $ | (0.9 | ) | $ | (0.9 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Shares Used in Calculation of Basic and Diluted | ' | |||||||||||
The following table presents a reconciliation of shares used in calculating basic earnings (loss) per common share to those used in calculating diluted earnings (loss) per common share. | ||||||||||||
Shares Used in Calculation of Earnings Per Share: [1] | Three Months Ended | Nine Months Ended | ||||||||||
(shares in thousands) | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted-average common shares outstanding | 5,742 | 5,749 | 5,742 | 5,792 | ||||||||
Weighted-average effect of dilutive potential common shares: | ||||||||||||
Restricted stock units | 17 | 77 | 31 | 76 | ||||||||
Employee stock options | 2 | 2 | 2 | — | ||||||||
Potential common shares | 19 | 79 | 33 | 76 | ||||||||
Less: Potential common shares excluded from | 19 | 79 | 33 | 76 | ||||||||
calculation due to net losses | ||||||||||||
Dilutive potential common shares | — | — | — | — | ||||||||
Weighted-average common shares outstanding, | 5,742 | 5,749 | 5,742 | 5,792 | ||||||||
including dilutive potential common shares | ||||||||||||
——————— | ||||||||||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 9 to these financial statements for additional information on the reverse stock split. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information on Revenues | ' | |||||||||||||||
Segment Information | Three Months Ended | Nine Months Ended | ||||||||||||||
on Revenues: | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Life and Annuity [1] | $ | 428 | $ | 474.8 | $ | 1,235.90 | $ | 1,342.70 | ||||||||
Saybrus Partners [2] | 6.3 | 5.9 | 18.4 | 16.1 | ||||||||||||
Less: Intercompany revenues [3] | 2.1 | 2.6 | 6.7 | 8.3 | ||||||||||||
Total revenues | $ | 432.2 | $ | 478.1 | $ | 1,247.60 | $ | 1,350.50 | ||||||||
——————— | ||||||||||||||||
[1] | Includes intercompany interest revenue of $0.1 million and $0.2 million for the three months ended September 30, 2013 and 2012 and $0.3 million and $0.5 million for the nine months ended September 30, 2013 and 2012. | |||||||||||||||
[2] | Includes intercompany commission revenue of $2.2 million and $2.8 million for the three months ended September 30, 2013 and 2012 and $7.0 million and $8.8 million for the nine months ended September 30, 2013 and 2012. | |||||||||||||||
[3] | All intercompany balances are eliminated in consolidating the financial statements. | |||||||||||||||
Results of Operations by Segment as Reconciled to Consolidated Net Income | ' | |||||||||||||||
Results of Operations by Segment as Reconciled to | Three Months Ended | Nine Months Ended | ||||||||||||||
Consolidated Net Income (Loss): | September 30, | September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Life and Annuity operating loss | $ | (21.6 | ) | $ | (136.8 | ) | $ | (110.4 | ) | $ | (150.5 | ) | ||||
Saybrus Partners operating income | 0.6 | 0.5 | 1.3 | 0.9 | ||||||||||||
Less: Applicable income tax expense (benefit) | 9.2 | (4.9 | ) | 12.1 | (1.0 | ) | ||||||||||
Loss from discontinued operations, net of income taxes | 0.3 | (6.0 | ) | (1.7 | ) | (12.0 | ) | |||||||||
Net realized investment gains (losses) | 8 | 27.5 | (0.7 | ) | 1.6 | |||||||||||
Gain on debt repurchase | — | 11.9 | — | 11.9 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (0.1 | ) | 0.8 | (0.3 | ) | 0.6 | ||||||||||
Net income (loss) | $ | (21.8 | ) | $ | (98.8 | ) | $ | (123.3 | ) | $ | (147.7 | ) |
Organization_and_Description_o1
Organization and Description of Business (Details) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of business segments | 2 |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Details) (Restatement Adjustment, USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Restatement Adjustment | ' | ' |
Income related to out of period adjustments | $0 | $2.40 |
Reinsurance_Narrative_Details
Reinsurance Narrative (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
reinsurance_company | ||
Insurance [Abstract] | ' | ' |
Reinsurance recoverable | $589.60 | $583.60 |
Number of major reinsurance companies | 5 | ' |
Percentage of reinsurance recoverable account by five major reinsurance companies | 64.00% | ' |
Reinsurance_Details
Reinsurance (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Direct Business and Reinsurance in Continuing Operations | ' | ' | ' | ' | ||||
Direct premiums | $120.10 | $133.40 | $367.80 | $411.60 | ||||
Premiums assumed from reinsureds | 2.7 | 1.9 | 6.7 | 6.1 | ||||
Premiums ceded to reinsurers | -38.3 | [1] | -40.5 | [1] | -119.9 | [1] | -127.1 | [1] |
Premiums | 84.5 | 94.8 | 254.6 | 290.6 | ||||
Percentage of amount assumed to net premiums | 3.20% | 2.00% | 2.60% | 2.10% | ||||
Direct policy benefits incurred | 205.6 | 191.9 | 603 | 574.1 | ||||
Policy benefits assumed from reinsureds | 3.6 | 30 | 22.4 | 67.9 | ||||
Policy benefits ceded to reinsurers | -77.6 | -49.3 | -192.8 | -200.1 | ||||
Premiums paid to reinsurers | 26.4 | [2] | 28.1 | [2] | 53.8 | [2] | 69.5 | [2] |
Policy benefits | 158 | [3] | 200.7 | [3] | 486.4 | [3] | 511.4 | [3] |
Changes in reserves, interest credited to policyholders, policyholder dividends and other items | $103.10 | $151.80 | $366.30 | $377.50 | ||||
[1] | Primarily represents premiums ceded to reinsurers related to traditional life and term insurance policies. | |||||||
[2] | For universal life and variable universal life contracts, premiums paid to reinsurers are reflected within policy benefits. See Note 2 to these financial statements for additional information regarding significant accounting policies. | |||||||
[3] | Policy benefit amounts above exclude changes in reserves, interest credited to policyholders and other items, which total $103.1 million and $151.8 million, net of reinsurance, for the three months ended September 30, 2013 and 2012, respectively, and $366.3 million and $377.5 million, net of reinsurance, for the nine months ended September 30, 2013 and 2012, respectively. |
Closed_Block_Assets_and_Liabil
Closed Block Assets and Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 25, 2011 | |||
In Millions, unless otherwise specified | ||||||
Closed Block Assets And Liabilities | ' | ' | ' | |||
Available-for-sale debt securities | $5,856.80 | $6,221.50 | $4,773.10 | |||
Available-for-sale equity securities | 16.9 | 11.4 | 0 | |||
Short-term investments | 140 | 174.9 | 0 | |||
Limited partnerships and other investments | 349.3 | 353.1 | 399 | |||
Policy loans | 1,213.60 | 1,233.50 | 1,380 | |||
Fair value investments | 37.9 | 30.8 | 0 | |||
Total closed block investments | 7,614.50 | 8,025.20 | 6,552.10 | |||
Cash and cash equivalents | 106.5 | 32.7 | 0 | |||
Accrued investment income | 84.2 | 85.3 | 106.8 | |||
Receivables | 44.5 | 53.1 | 35.2 | |||
Reinsurance recoverable | 20.3 | 7.5 | 0 | |||
Deferred income taxes | 251.3 | 217.6 | 389.4 | |||
Other closed block assets | 17.5 | 31.7 | 6.2 | |||
Total closed block assets | 8,138.80 | 8,453.10 | 7,089.70 | |||
Policy liabilities and accruals | 8,283.10 | 8,421.70 | 8,301.70 | |||
Policyholder dividends payable | 213.7 | 223.8 | 325.1 | |||
Policy dividend obligation | 532.6 | 779.8 | 0 | |||
Other closed block liabilities | 109.6 | 47.5 | 12.3 | |||
Total closed block liabilities | 9,139 | 9,472.80 | 8,639.10 | |||
Excess of closed block liabilities over closed block assets | 1,000.20 | [1] | 1,019.70 | [1] | 1,549.40 | [1] |
Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests | -6.3 | -5.4 | ' | |||
Excess of closed block liabilities over closed block assets attributable to The Phoenix Companies, Inc. | $1,006.50 | $1,025.10 | ' | |||
[1] | The maximum future earnings summary to inure to the benefit of the stockholders is represented by the excess of closed block liabilities over closed block assets. All unrealized investment gains (losses), net of income tax, have been allocated to the policyholder dividend obligation. |
Demutualization_and_Closed_Blo2
Demutualization and Closed Block Closed Block Revenue and Expenses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Closed block revenues | ' | ' | ' | ' |
Premiums | $76.20 | $89.50 | $230.40 | $270.10 |
Net investment income | 104 | 115.7 | 304.1 | 343.5 |
Net realized investment gains (losses) | 8 | 7.5 | 9.7 | 9.4 |
Total revenues | 188.2 | 212.7 | 544.2 | 623 |
Policy benefits, excluding policyholder dividends | 111.1 | 120.1 | 389.7 | 364.8 |
Other operating expenses | 1.4 | 1.3 | 4 | 3.6 |
Total benefits and expenses, excluding policyholder dividends | 112.5 | 121.4 | 393.7 | 368.4 |
Closed block contribution to income before dividends and income taxes | 75.7 | 91.3 | 150.5 | 254.6 |
Policyholder dividends | -66.2 | -80.9 | -121.8 | -221.6 |
Closed block contribution to income before income taxes | 9.5 | 10.4 | 28.7 | 33 |
Applicable income tax expense | 3.3 | 3.6 | 10 | 11.5 |
Closed block contribution to income | 6.2 | 6.8 | 18.7 | 21.5 |
Less: Closed block contribution to income attributable to noncontrolling interests | -0.1 | 0.4 | -0.3 | 0.4 |
Closed block contribution to income attributable to The Phoenix Companies, Inc. | $6.30 | $6.40 | $19 | $21.10 |
Demutualization_and_Closed_Blo3
Demutualization and Closed Block Closed Block Policyholder Dividend Obligation (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Policyholder dividend obligation | ' | ' |
Policyholder dividends provided through earnings | $121.80 | $294.50 |
Policyholder dividends provided through OCI | -247.9 | 168 |
Additions to (reductions of) policyholder dividend liabilities | -126.1 | 462.5 |
Policyholder dividends paid | -131.2 | -211.4 |
Increase in policyholder dividend liabilities | -257.3 | 251.1 |
Policyholder dividend liabilities, beginning of period | 1,003.60 | 752.5 |
Policyholder dividend liabilities, end of period | 746.3 | 1,003.60 |
Policyholder dividends payable, end of period | -213.7 | -223.8 |
Policyholder dividend obligation, end of period | $532.60 | $779.80 |
Demutualization_and_Closed_Blo4
Demutualization and Closed Block Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Insurance [Abstract] | ' | ' |
Policyholder dividend obligation for cumulative closed block | $174.10 | $172.60 |
Unrealized gains in investments included in policyholder dividend obligation for cumulative closed block | $358.50 | $607.20 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Deferred Policy Acquisition Costs: | ' | ' | ' | ' | ||||
Policy acquisition costs deferred | $13.90 | $18 | $42.80 | $56.20 | ||||
Costs amortized to expenses: | ' | ' | ' | ' | ||||
Recurring costs | -32.4 | -5.5 | -107.9 | -103.4 | ||||
Assumption unlocking | ' | -46.3 | ' | -46.3 | ||||
Realized investment gains (losses) | -0.7 | -20 | -2.7 | -14.9 | ||||
Off Offsets to net unrealized investment gains or losses included in AOCI | 5 | [1] | -15.1 | [1] | 66 | [1] | -66.4 | [1] |
Change in deferred policy acquisition costs | -14.2 | -68.9 | -1.8 | -174.8 | ||||
Deferred policy acquisition costs, beginning of period | 914.6 | 1,013.30 | 902.2 | 1,119.20 | ||||
Deferred policy acquisition costs, end of period | $900.40 | $944.40 | $900.40 | $944.40 | ||||
[1] | An offset to DAC and accumulated other comprehensive income (“AOCIâ€) is recorded each period to the extent that, had unrealized holding gains or losses from securities classified as available-for-sale actually been realized, an adjustment to DAC amortized using gross profits or gross margins would result. |
Sales_Inducements_Details
Sales Inducements (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Movement in Deferred Sales Inducements [Roll Forward] | ' | ' | ' | ' |
Deferred asset, beginning of period | $73.10 | $47.80 | $61.40 | $50.20 |
Sales inducements deferred | 2.7 | 2.7 | 8.2 | 12.4 |
Amortization charged to income | -1.9 | -2.1 | -5.4 | -6.2 |
Offsets to net unrealized investment gains or losses included in AOCI | 0.2 | 10.2 | 9.9 | 2.2 |
Deferred asset, end of period | $74.10 | $58.60 | $74.10 | $58.60 |
Fair_Value_and_Cost_of_Securit
Fair Value and Cost of Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | $11,222.80 | $11,018.40 | ||
Gross Unrealized Gains | 684 | [1] | 1,079 | [1] |
Gross Unrealized Losses | -193.6 | [1] | -141 | [1] |
Available-for-sale debt securities, at fair value | 11,713.20 | 11,956.40 | ||
OTTI Recognized in AOCI | -57.3 | [2] | -65.7 | [2] |
Amortized Cost, amounts applicable to the closed block debt security | 5,502.80 | 5,614.80 | ||
Gross unrealized gain, amounts applicable to closed block debt security | 420.8 | [1] | 644.9 | [1] |
Gross unrealized losses, amounts applicable to the closed block debt security | -66.8 | [1] | -38.2 | [1] |
Fair value, amounts applicable to the closed block debt security | 5,856.80 | 6,221.50 | ||
OTTI recognized in AOCI, amounts applicable to the closed block debt security | -16.6 | [2] | -19.9 | [2] |
Available-for-sale equity securities, Amortized Cost | 26.9 | 27.5 | ||
Available-for-sale equity securities, Gross Unrealized Gains | 19.4 | [1] | 9.7 | [1] |
Available-for-sale equity securities, Gross Unrealized Losses | -1.1 | [1] | -2.4 | [1] |
Available-for-sale equity securities, at fair value (cost of $26.9 and $27.5) | 45.2 | 34.8 | ||
Available-for-sale equity securities, OTTI Recognized in AOCI | 0 | [2] | 0 | [2] |
Amounts applicable to the closed block equity security, Amortized Cost | 10.6 | 10.9 | ||
Amounts applicable to the closed block equity security, Gross Unrealized Gains | 6.8 | [1] | 1.8 | [1] |
Amounts applicable to the closed block equity security, Gross Unrealized Losses | -0.5 | [1] | -1.3 | [1] |
Amounts applicable to the closed block equity security, Fair Value | 16.9 | 11.4 | ||
Amounts applicable to the closed block equity security, OTTI Recognized in AOCI | 0 | [2] | 0 | [2] |
U.S. government and agency | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 404 | 355.9 | ||
Gross Unrealized Gains | 45.6 | [1] | 58.5 | [1] |
Gross Unrealized Losses | -3.8 | [1] | -2.5 | [1] |
Available-for-sale debt securities, at fair value | 445.8 | 411.9 | ||
OTTI Recognized in AOCI | 0 | [2] | 0 | [2] |
State and political subdivision | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 364.5 | 321.5 | ||
Gross Unrealized Gains | 21.9 | [1] | 37.8 | [1] |
Gross Unrealized Losses | -8.8 | [1] | -2.1 | [1] |
Available-for-sale debt securities, at fair value | 377.6 | 357.2 | ||
OTTI Recognized in AOCI | -1.2 | [2] | -1.1 | [2] |
Foreign government | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 177.1 | 167.5 | ||
Gross Unrealized Gains | 18 | [1] | 36.8 | [1] |
Gross Unrealized Losses | -0.3 | [1] | 0 | [1] |
Available-for-sale debt securities, at fair value | 194.8 | 204.3 | ||
OTTI Recognized in AOCI | 0 | [2] | 0 | [2] |
Corporate | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 7,275.60 | 6,996.40 | ||
Gross Unrealized Gains | 482 | [1] | 745.7 | [1] |
Gross Unrealized Losses | -132.4 | [1] | -72.1 | [1] |
Available-for-sale debt securities, at fair value | 7,625.20 | 7,670 | ||
OTTI Recognized in AOCI | -8.4 | [2] | -8.3 | [2] |
Commercial mortgage-backed (“CMBSâ€) | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 719.3 | 817.2 | ||
Gross Unrealized Gains | 39.2 | [1] | 72.9 | [1] |
Gross Unrealized Losses | -3.7 | [1] | -7.9 | [1] |
Available-for-sale debt securities, at fair value | 754.8 | 882.2 | ||
OTTI Recognized in AOCI | -4.2 | [2] | -6.2 | [2] |
Residential mortgage-backed (“RMBSâ€) | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 1,717.60 | 1,698.20 | ||
Gross Unrealized Gains | 55.2 | [1] | 94.3 | [1] |
Gross Unrealized Losses | -27.9 | [1] | -20.8 | [1] |
Available-for-sale debt securities, at fair value | 1,744.90 | 1,771.70 | ||
OTTI Recognized in AOCI | -26.4 | [2] | -30.6 | [2] |
CDO/CLO | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 220.7 | 240.5 | ||
Gross Unrealized Gains | 5.5 | [1] | 6.4 | [1] |
Gross Unrealized Losses | -5.5 | [1] | -23.2 | [1] |
Available-for-sale debt securities, at fair value | 220.7 | 223.7 | ||
OTTI Recognized in AOCI | -15.3 | [2] | -18.1 | [2] |
Other asset-backed | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Total | 344 | 421.2 | ||
Gross Unrealized Gains | 16.6 | [1] | 26.6 | [1] |
Gross Unrealized Losses | -11.2 | [1] | -12.4 | [1] |
Available-for-sale debt securities, at fair value | 349.4 | 435.4 | ||
OTTI Recognized in AOCI | ($1.80) | [2] | ($1.40) | [2] |
[1] | Net unrealized investment gains and losses on securities classified as available-for-sale and certain other assets are included in our consolidated balance sheets as a component of AOCI. | |||
[2] | Represents the amount of non-credit OTTI losses recognized in AOCI excluding net unrealized gains or losses subsequent to the date of impairment. The table above presents the special category of AOCI for debt securities that are other-than-temporarily impaired when the impairment loss has been split between the credit loss component (in earnings) and the non-credit component (separate category of AOCI). |
Investing_Activities_Maturitie
Investing Activities Maturities of Debt Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ' | ' | |
Due in one year or less | $239.80 | ' | |
Due after one year through five years | 796.4 | ' | |
Due after five years through ten years | 810.5 | ' | |
Due after ten years | 6,374.50 | ' | |
CMBS/RMBS/ABS/CDO/CLO | 3,001.60 | [1] | ' |
Total | 11,222.80 | 11,018.40 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' | |
Due in one year or less | 246.4 | ' | |
Due after one year through five years | 866.8 | ' | |
Due after five years through ten years | 877 | ' | |
Due after ten years | 6,653.20 | ' | |
CMBS/RMBS/ABS/CDO/CLO | 3,069.80 | [1] | ' |
Total | $11,713.20 | $11,956.40 | |
[1] | CMBS, RMBS, ABS, CDO and CLO are not listed separately in the table as each security does not have a single fixed maturity. |
Sales_of_AvailableforSale_Secu
Sales of Available-for-Sale Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt securities, available-for-sale | ' | ' |
Proceeds from sales | $328.10 | $346.50 |
Proceeds from maturities/repayments | 1,182 | 1,527.20 |
Gross investment gains from sales, prepayments and maturities | 31.6 | 52.3 |
Gross investment losses from sales and maturities | -3.5 | -11.1 |
Equity securities, available-for-sale | ' | ' |
Proceeds from sales | 3.7 | 12.6 |
Gross investment gains from sales | 1.3 | 8.5 |
Gross investment losses from sales | ($1.20) | ($0.40) |
Investing_Activities_Aging_of_
Investing Activities Aging of Temporary Impaired Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
CMBS | $3.70 | $5.40 |
Less than 12 months | Fair Value | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
U.S. government and agency | 35.5 | 9 |
State and political subdivision | 80.7 | 13.5 |
Foreign government | 38.6 | 0 |
Corporate | 1,661.50 | 300.9 |
CMBS | 76.6 | 8.4 |
RMBS | 355.1 | 64.7 |
CDO/CLO | 46.6 | 26.2 |
Other asset-backed | 21.2 | 10.1 |
Debt securities | 2,315.80 | 432.8 |
Equity securities | 0.8 | 4.4 |
Total temporarily impaired securities | 2,316.60 | 437.2 |
Amounts inside the closed block | 1,467.20 | 150.7 |
Amounts outside the closed block | 849.4 | 286.5 |
Amounts outside the closed block that are below investment grade | 105.5 | 29.8 |
Less than 12 months | Unrealized Losses | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
U.S. government and agency | -1.2 | -0.1 |
State and political subdivision | -6.5 | -0.8 |
Foreign government | -0.3 | 0 |
Corporate | -74.6 | -6.2 |
CMBS | -2.7 | -1 |
RMBS | -15.9 | -0.4 |
CDO/CLO | -0.5 | -2 |
Other asset-backed | -0.7 | -0.7 |
Debt securities | -102.4 | -11.2 |
Equity securities | 0 | -1.6 |
Total temporarily impaired securities | -102.4 | -12.8 |
Amounts inside the closed block | -40 | -4.6 |
Amounts outside the closed block | -62.4 | -8.2 |
Amounts outside the closed block that are below investment grade | -4.1 | -2 |
Number of securities | 411 | 108 |
Greater than 12 months | Fair Value | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
U.S. government and agency | 21.3 | 28.4 |
State and political subdivision | 11 | 7.1 |
Foreign government | 0 | 0 |
Corporate | 241.7 | 318.2 |
CMBS | 12.2 | 30.7 |
RMBS | 138.7 | 212.6 |
CDO/CLO | 96.6 | 132.7 |
Other asset-backed | 43.4 | 43.3 |
Debt securities | 564.9 | 773 |
Equity securities | 3.6 | 2.4 |
Total temporarily impaired securities | 568.5 | 775.4 |
Amounts inside the closed block | 222.2 | 332.4 |
Amounts outside the closed block | 346.3 | 443 |
Amounts outside the closed block that are below investment grade | 91.2 | 177.5 |
Greater than 12 months | Unrealized Losses | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
U.S. government and agency | -2.6 | -2.4 |
State and political subdivision | -2.3 | -1.3 |
Foreign government | 0 | 0 |
Corporate | -57.8 | -65.9 |
CMBS | -1 | -6.9 |
RMBS | -12 | -20.4 |
CDO/CLO | -5 | -21.2 |
Other asset-backed | -10.5 | -11.7 |
Debt securities | -91.2 | -129.8 |
Equity securities | -1.1 | -0.8 |
Total temporarily impaired securities | -92.3 | -130.6 |
Amounts inside the closed block | -27.3 | -34.9 |
Amounts outside the closed block | -65 | -95.7 |
Amounts outside the closed block that are below investment grade | -18 | -63.4 |
Number of securities | 147 | 196 |
Total | Fair Value | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
U.S. government and agency | 56.8 | 37.4 |
State and political subdivision | 91.7 | 20.6 |
Foreign government | 38.6 | 0 |
Corporate | 1,903.20 | 619.1 |
CMBS | 88.8 | 39.1 |
RMBS | 493.8 | 277.3 |
CDO/CLO | 143.2 | 158.9 |
Other asset-backed | 64.6 | 53.4 |
Debt securities | 2,880.70 | 1,205.80 |
Equity securities | 4.4 | 6.8 |
Total temporarily impaired securities | 2,885.10 | 1,212.60 |
Amounts inside the closed block | 1,689.40 | 483.1 |
Amounts outside the closed block | 1,195.70 | 729.5 |
Amounts outside the closed block that are below investment grade | 196.7 | 207.3 |
Total | Unrealized Losses | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
U.S. government and agency | -3.8 | -2.5 |
State and political subdivision | -8.8 | -2.1 |
Foreign government | -0.3 | 0 |
Corporate | -132.4 | -72.1 |
CMBS | -3.7 | -7.9 |
RMBS | -27.9 | -20.8 |
CDO/CLO | -5.5 | -23.2 |
Other asset-backed | -11.2 | -12.4 |
Debt securities | -193.6 | -141 |
Equity securities | -1.1 | -2.4 |
Total temporarily impaired securities | -194.7 | -143.4 |
Amounts inside the closed block | -67.3 | -39.5 |
Amounts outside the closed block | -127.4 | -103.9 |
Amounts outside the closed block that are below investment grade | ($22.10) | ($65.40) |
Number of securities | 558 | 304 |
Investing_Activities_Debt_Equi
Investing Activities Debt & Equity Securities Narrative (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
security | security | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Unrealized losses on debt securities outside closed block depressed of amortized cost, percentage | 20.00% | 20.00% |
Unrealized losses on debt securities outside closed block depressed of amortized cost, amount | $11.30 | $52.30 |
Unrealized losses on debt securities outside closed block depressed of amortized cost for more than 12 month, amount | 9.1 | 52.1 |
Unrealized losses on debt securities outside closed block depressed of amortized cost for more than 12 month, percentage | 20.00% | 20.00% |
Unrealized losses on debt securities held in closed block depressed of amortized cost, percentage | 20.00% | 20.00% |
Unrealized losses on debt securities held in closed block depressed of amortized cost, amount | 5 | 5.5 |
UnrealizedLossesOnDebtSecuritiesOutsideClosedBlockDepressedOfAmortizedCostForMoreThan12MonthAmount | $0 | $5.50 |
Unrealized losses on debt securities held in closed block depressed of amortized cost for more than 12 month, percentage | 20.00% | 20.00% |
Number of debt securities | 141 | 192 |
Number of equity securities | 6 | 4 |
Investing_Activities_Otherthan
Investing Activities Other-than-temporary impairments Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Total debt impairments recognized | $2.10 | $7.10 | $7.20 | $17.50 |
Equity security OTTIs | 0 | 0 | 0 | 1.5 |
Limited partnerships and other investment OTTIs | 0 | 0 | 0.3 | 0.3 |
Amount of impairments recognized as adjustment to other comprehensive loss | ($0.40) | ($0.20) | ($4.60) | $11.30 |
Investing_Activities_Credit_Lo
Investing Activities Credit Losses Recognized in Earnings on Debt Securities for which a Portion of the OTTI Loss was Recognized in OCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Credit Losses Recognized in Earnings on Debt Securities for which a Portion of the OTTI Loss was Recognized in OCI: ($ in millions) | ' | ' | ' | ' | ||||
Balance, beginning of period | ($72.50) | ($78.80) | ($72.60) | ($79.10) | ||||
Add: Credit losses on securities not previously impaired | -0.7 | [1] | -1.5 | [1] | -0.7 | [1] | -3.8 | [1] |
Add: Credit losses on securities previously impaired | -0.2 | [1] | -5.6 | [1] | -3.6 | [1] | -11.8 | [1] |
Less: Credit losses on securities impaired due to intent to sell | 0 | 0 | 0 | 0 | ||||
Less: Credit losses on securities sold | 2.9 | 5.3 | 6.4 | 14.1 | ||||
Less: Increases in cash flows expected on previously impaired securities | 0 | 0 | 0 | 0 | ||||
Balance, end of period | ($70.50) | ($80.60) | ($70.50) | ($80.60) | ||||
[1] | Additional credit losses on securities for which a portion of the OTTI loss was recognized in AOCI are included within net OTTI losses recognized in earnings on the statements of income and comprehensive income. |
Investing_Activities_Limited_P
Investing Activities Limited Partnerships and other investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Private equity funds | $239.60 | $241.70 |
Mezzanine funds | 188.7 | 202.1 |
Infrastructure funds | 44.6 | 42.5 |
Hedge funds | 12.9 | 14.3 |
Mortgage and real estate funds | 3.7 | 5.4 |
Leverage leases | 16.9 | 17.9 |
Direct equity investments | 40.8 | 29.2 |
Life settlements | 21.3 | 21 |
Other alternative assets | 4.5 | 3.2 |
Limited partnerships and other investments | 573 | 577.3 |
Amounts applicable to the closed block | $349.30 | $353.10 |
Investing_Activities_Sources_o
Investing Activities Sources of Net Investment Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ||||
Debt securities | $144 | [1] | $158.90 | [1] | $430.80 | [1] | $462.20 | [1] |
Equity securities | 0.3 | 0.5 | 0 | 2.4 | ||||
Limited partnerships and other investments | 14.1 | 14 | 37.9 | 48.5 | ||||
Policy loans | 39 | 35.7 | 119.5 | 120.7 | ||||
Fair value investments | 5.2 | -0.1 | 7.2 | 1.5 | ||||
Total investment income | 202.6 | 209 | 595.4 | 635.3 | ||||
Less: Discontinued operations | 0.3 | 0.4 | 0.9 | 1.6 | ||||
Less: Investment expenses | 3 | 3.5 | 10.1 | 10.4 | ||||
Net investment income | 199.3 | 205.1 | 584.4 | 623.3 | ||||
Amounts applicable to the closed block | $104 | $115.70 | $304.10 | $343.50 | ||||
[1] | Includes net investment income on short-term investments. |
Investing_Activities_Sources_a
Investing Activities Sources and Types of Net Realized Investment Gains (Losses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ||||
Total other-than-temporary debt impairments | ($1.70) | ($6.90) | ($2.60) | ($28.80) | ||||
Portion of gains (losses) recognized in OCI | -0.4 | -0.2 | -4.6 | 11.3 | ||||
Net debt impairment losses recognized in earnings | -2.1 | -7.1 | -7.2 | -17.5 | ||||
Debt security impairments: | ' | ' | ' | ' | ||||
U.S. government and agency | 0 | 0 | 0 | 0 | ||||
State and political subdivision | 0 | 0 | 0 | 0 | ||||
Foreign government | 0 | 0 | 0 | 0 | ||||
Corporate | -0.7 | 0 | -0.7 | -0.6 | ||||
CMBS | -0.1 | -3.3 | -2 | -4.5 | ||||
RMBS | -1.4 | -2.6 | -4.3 | -10.4 | ||||
CDO/CLO | 0.1 | -0.7 | -0.2 | -0.7 | ||||
Other asset-backed | 0 | -0.5 | 0 | -1.3 | ||||
Net debt security impairments | -2.1 | -7.1 | -7.2 | -17.5 | ||||
Equity security impairments | 0 | 0 | 0 | -1.5 | ||||
Limited partnerships and other investment impairments | 0 | -0.3 | 0 | -0.3 | ||||
Impairment losses | -2.1 | -7.4 | -7.2 | -19.3 | ||||
Debt security transaction gains | 19.7 | 33.4 | 31.7 | 41.4 | ||||
Debt security transaction losses | -0.8 | -1.3 | -3.5 | -4.9 | ||||
Equity security transaction gains | 0.3 | 5 | 1.3 | 5 | ||||
Equity security transaction losses | 0 | -0.2 | -1.2 | -0.3 | ||||
Limited partnerships and other investment transaction gains | 0.7 | 5.5 | 0.7 | 6.8 | ||||
Limited partnerships and other investment transaction losses | -4.6 | -1.5 | -4.6 | -2.5 | ||||
Net transaction gains (losses) | 15.3 | 40.9 | 24.4 | 45.5 | ||||
Derivative instruments | -15.2 | -14.2 | -34.9 | -33.4 | ||||
Embedded derivatives | 8.9 | [1] | 7.1 | [1] | 14.6 | [1] | 6.9 | [1] |
Assets valued at fair value | 1.1 | 1.1 | 2.4 | 1.9 | ||||
Net realized investment gains (losses), excluding impairment losses | 10.1 | 34.9 | 6.5 | 20.9 | ||||
Net realized investment gains (losses), including impairment losses | $8 | $27.50 | ($0.70) | $1.60 | ||||
[1] | Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity GMWB, GMAB and COMBO riders. See Note 10 to these financial statements for additional disclosures. |
Investing_Activities_Sources_o1
Investing Activities Sources of Changes in Net Unrealized Investment Gains (Losses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Debt securities | ($36) | $193.60 | ($447.60) | $398.20 |
Equity securities | 4.8 | -3.3 | 11 | -0.4 |
Other investments | 0.8 | 0 | 0.3 | 0 |
Net unrealized investment gains (losses) | -30.4 | 190.3 | -436.3 | 397.8 |
Applicable to closed block policyholder dividend obligation | -22.2 | 84.7 | -247.9 | 171.5 |
Applicable to DAC | -5 | 15.1 | -66 | 66.4 |
Applicable to other actuarial offsets | -15.8 | 58.9 | -87.1 | 77.6 |
Applicable to deferred income tax expense (benefit) | -0.2 | 38.6 | -16.7 | 83.5 |
Offsets to net unrealized investment gains (losses) | -43.2 | 197.3 | -417.7 | 399 |
Net unrealized investment gains (losses) included in OCI | $12.80 | ($7) | ($18.60) | ($1.20) |
Carrying_Value_of_Assets_and_L
Carrying Value of Assets and Liabilities for Consolidated Variable Interest Entities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ' | ' | ||
Unfunded commitments related to VIEs | $0 | $4.10 | ||
Liabilities | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Debt securities, at fair value | 0 | [1] | 0 | [1] |
Equity securities, at fair value | 0 | [1] | 0 | [1] |
Cash and cash equivalents | 0 | 0 | ||
Investment in partnership interests | 0 | 0 | ||
Investment in single asset LLCs | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets of consolidated VIEs | 0 | 0 | ||
Total liabilities of consolidated VIEs | 6.2 | 5.1 | ||
Maximum Exposure of Loss | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Debt securities, at fair value | 5.5 | [1],[2] | 3.4 | [1],[2] |
Equity securities, at fair value | 22.5 | [1],[2] | 19.2 | [1],[2] |
Cash and cash equivalents | 11.4 | [2] | 10.2 | [2] |
Investment in partnership interests | 10.4 | [2] | 11 | [2] |
Investment in single asset LLCs | 9.8 | [2] | 5.4 | [2] |
Other assets | 0.4 | [2] | 5.5 | [2] |
Total assets of consolidated VIEs | 60 | [2] | 54.7 | [2] |
Total liabilities of consolidated VIEs | 6 | [2] | 5.1 | [2] |
Assets | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Debt securities, at fair value | 5.8 | [1] | 3.6 | [1] |
Equity securities, at fair value | 27.2 | [1] | 23.4 | [1] |
Cash and cash equivalents | 11.6 | 10.2 | ||
Investment in partnership interests | 10.4 | 11 | ||
Investment in single asset LLCs | 15.7 | 6.8 | ||
Other assets | 0.5 | 5.5 | ||
Total assets of consolidated VIEs | 71.2 | 60.5 | ||
Total liabilities of consolidated VIEs | $0 | $0 | ||
[1] | Included in fair value investments on the consolidated balance sheets. | |||
[2] | Creditors or beneficial interest holders of the consolidated VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. The maximum exposure to loss above at September 30, 2013 and December 31, 2012 excludes unfunded commitments of $0 and $4.1 million, respectively. |
Investing_Activities_Carrying_
Investing Activities Carrying Value of Assets and Liabilities and Maximum Exposure Loss Relating to Variable Interest Entities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Liabilities | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | $0 | $0 | ||
Liabilities | Limited Partnerships | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | 0 | 0 | ||
Liabilities | LLCs | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | 0 | 0 | ||
Maximum Exposure of Loss | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | 212.7 | [1] | 205.3 | [1] |
Maximum Exposure of Loss | Limited Partnerships | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | 173.6 | [1] | 202.1 | [1] |
Maximum Exposure of Loss | LLCs | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | 39.1 | [1] | 3.2 | [1] |
Assets | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | 158.3 | 139.7 | ||
Assets | Limited Partnerships | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | 119.2 | 136.5 | ||
Assets | LLCs | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ||
Total | $39.10 | $3.20 | ||
[1] | Creditors or beneficial interest holders of the VIEs have no recourse to our general credit. Our obligation to the VIEs is limited to the amount of our committed investment. We have not provided material financial or other support that was not contractually required to these VIEs. |
Issuer_and_Counterparty_Credit
Issuer and Counterparty Credit Exposure (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
issuer | ||
counterparty | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Number of issuers (in issuers) | 6 | ' |
Fixed maturities below-investment-grade assets | $915.90 | $1,039.60 |
Derivative assets, net of liabilities | 114 | ' |
Number of counterparties | 11 | ' |
Debt securities, fair value | 211.8 | ' |
Maximum amount of loss due to credit risk | $325.80 | ' |
Financing_Activities_Schedule_
Financing Activities Schedule of Long-term Debt Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 11, 2012 |
In Millions, unless otherwise specified | |||
Debt Disclosure [Abstract] | ' | ' | ' |
7.15% surplus notes | $126.10 | $126.10 | ' |
7.45% senior unsecured bonds | 252.7 | 252.7 | 252.7 |
Total indebtedness | $378.80 | $378.80 | ' |
Financing_Activities_Narrative
Financing Activities Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 11, 2012 | Sep. 30, 2013 | Sep. 21, 2012 | Nov. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2001 | Sep. 30, 2013 | Jan. 16, 2013 |
Surplus Notes | Surplus Notes | Bonds | Bonds | Bonds | Bonds | Bonds | ||||
7.15% Surplus Notes [Member] | 7.15% Surplus Notes [Member] | 7.45% Senior Unsecured Bonds | 7.45% Senior Unsecured Bonds | 7.45% Senior Unsecured Bonds | 7.45% Senior Unsecured Bonds | 7.45% Senior Unsecured Bonds | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | 7.15% | 7.15% | ' | ' | 7.45% | ' | ' |
Unamortized discount | ' | ' | ' | $600,000 | $200,000 | ' | ' | ' | ' | ' |
Repurchased face amount | ' | ' | ' | ' | 48,300,000 | ' | ' | ' | 0 | ' |
Cumulative amount of bonds repurchased | 47,300,000 | ' | ' | ' | 36,200,000 | ' | ' | ' | ' | ' |
Proceeds from issuance of debt, gross | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' |
Proceeds from issuance of debt, net | ' | ' | ' | ' | ' | ' | ' | 290,600,000 | ' | ' |
Redemption price percentage | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Extinguishment of Debt, Amount | ' | ' | ' | ' | ' | ' | 31,400,000 | ' | ' | ' |
Debt Instrument, Covenant Compliance, Period to File Reports With Trustee | ' | ' | ' | ' | ' | ' | ' | ' | '15 days | ' |
Debt Instrument, Covenants, Non-Compliance Cure Period | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' |
Debt Instrument, Consent Solicitation, Debt Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,300,000 |
Consent solicitation, consents received as a percentage of outstanding principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% |
7.45% senior unsecured bonds | 252,700,000 | 252,700,000 | 252,700,000 | ' | ' | ' | ' | ' | ' | ' |
Future minimum annual payments on indebtedness in 2032 | 252,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum annual payments on debt in 2034 | $126,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing_Activities_Interest_
Financing Activities Interest Expense on Indebtedness, including Amortization of Debt Issuance Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
7.15% surplus notes | $2.30 | $3.10 | $6.90 | $9.40 |
7.45% senior unsecured bonds | 4.8 | 4.8 | 15 | 14.3 |
Interest expense on indebtedness | $7.10 | $7.90 | $21.90 | $23.70 |
Common_Stock_and_Stock_Repurch1
Common Stock and Stock Repurchase Program Narrative (Details) (USD $) | 0 Months Ended | |||||
Aug. 10, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 20, 2012 | Aug. 11, 2012 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Shares authorized (in shares) | ' | ' | ' | ' | ' | 50,000,000 |
Reverse stock split | 0.05 | ' | ' | ' | ' | ' |
Common stock par value (USD per share) | $0.01 | $0.01 | $0.01 | ' | ' | ' |
Reverse stock split payable | $2,900,000 | ' | ' | ' | ' | ' |
Number of shares held by individual (in shares) | 100 | ' | ' | ' | ' | ' |
Stock repurchase program authorized amount | ' | ' | ' | ' | 25,000,000 | ' |
Shares issued (in shares) | ' | 6,400,000 | ' | ' | ' | ' |
Shares issued to policyholders in exchange for their interests (in shares) | ' | 2,800,000 | ' | ' | ' | ' |
Shares issue to settle share-based compensation awards (in shares) | ' | 3,600,000 | ' | ' | ' | ' |
Shares outstanding (in shares) | 116,000,000 | 5,700,000 | 5,700,000 | ' | ' | 5,800,000 |
Common shares of treasury stock (in shares) | ' | 700,000 | ' | ' | ' | ' |
Shares held in employee trust (in shares) | ' | 100,000 | ' | ' | ' | ' |
Common shares reserved (in shares) | ' | 400,000 | ' | ' | ' | ' |
Ownership percentage by noncontrolling interest | ' | 5.10% | ' | ' | ' | ' |
Compensation costs | ' | $1,900,000 | ' | $1,700,000 | ' | ' |
Stock Options | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common shares reserved (in shares) | ' | 300,000 | ' | ' | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common shares reserved (in shares) | ' | 100,000 | ' | ' | ' | ' |
Separate_Accounts_Death_Benefi2
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Separate Account Investments of Account Balances of Variable Annuity Contracts with Guarantees (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Separate Accounts, Death Benefits, Other Insurance Benefit Features And Embedded Product Derivatives [Abstract] | ' | ' |
Debt securities | $435.70 | $484.60 |
Equity funds | 1,904.90 | 1,862.20 |
Other | 65.1 | 69.6 |
Total | $2,405.70 | $2,416.40 |
Separate_Accounts_Death_Benefi3
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Changes in Guaranteed Liability Balances (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Variable Annuity GMDB | ' | ' |
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | ' | ' |
Liability balance, beginning of the period | $15.90 | $16.40 |
Incurred | 1.9 | 0.6 |
Paid | -3.3 | -1.1 |
Change due to net unrealized gains or losses included in AOCI | 0 | 0 |
Assumption unlocking | 0 | 0 |
Liability balance, end of the period | 14.5 | 15.9 |
Variable Annuity GMIB | ' | ' |
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | ' | ' |
Liability balance, beginning of the period | 21.7 | 17.6 |
Incurred | -2.4 | 4 |
Paid | 0 | 0 |
Change due to net unrealized gains or losses included in AOCI | -0.1 | 0.3 |
Assumption unlocking | 0 | -0.2 |
Liability balance, end of the period | 19.2 | 21.7 |
Fixed Indexed Annuity GMWB & GMDB | ' | ' |
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | ' | ' |
Liability balance, beginning of the period | 103.6 | 5.6 |
Incurred | 44.9 | 40.1 |
Paid | -0.2 | 0 |
Change due to net unrealized gains or losses included in AOCI | -47.7 | 57.9 |
Assumption unlocking | 0 | 0 |
Liability balance, end of the period | 100.6 | 103.6 |
Universal Life | ' | ' |
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | ' | ' |
Liability balance, beginning of the period | 137.7 | 118.5 |
Incurred | 35 | 30.8 |
Paid | -11.8 | -9.5 |
Change due to net unrealized gains or losses included in AOCI | -1.9 | 2.4 |
Assumption unlocking | 0 | -4.5 |
Liability balance, end of the period | $159 | $137.70 |
Separate_Accounts_Death_Benefi4
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Variable Annuity GMDB Benefits by Type (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | $2,801.10 | $2,820.60 | ||
Net Amount at Risk After Reinsurance | 20.2 | 39.5 | ||
Average Attained Age of Annuitant | '64 years | [1] | '64 years | [1] |
Less: General account value with GMDB | 408.8 | 420.6 | ||
Subtotal separate account liabilities with GMDB | 2,392.30 | 2,400 | ||
Separate account liabilities without GMDB | 958.6 | 916.5 | ||
Total separate account liabilities | 3,350.90 | 3,316.50 | ||
GMIB at end of period | 401.5 | [1] | 416.8 | [1] |
GMDB return of premium | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | 773.4 | 799.2 | ||
Net Amount at Risk After Reinsurance | 2.6 | 6.4 | ||
Average Attained Age of Annuitant | '63 years | '62 years | ||
GMDB step up | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | 1,965.20 | 1,957.20 | ||
Net Amount at Risk After Reinsurance | 11.9 | 25.6 | ||
Average Attained Age of Annuitant | '63 years | '63 years | ||
GMDB earnings enhancement benefit (EEB) | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | 35.8 | 37.5 | ||
Net Amount at Risk After Reinsurance | 0.1 | 0.1 | ||
Average Attained Age of Annuitant | '64 years | '63 years | ||
GMDB greater of annual step up and roll up | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | 26.7 | 26.7 | ||
Net Amount at Risk After Reinsurance | $5.60 | $7.40 | ||
Average Attained Age of Annuitant | '67 years | '67 years | ||
[1] | Policies with a GMIB also have a GMDB, however these benefits are not additive. When a policy terminates due to death, any NAR related or GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. |
Separate_Accounts_Death_Benefi5
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Non-Insurance Guaranteed Product Features (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | $978.80 | $977.50 | ||
Average Attained Age of Annuitant | '64 years | [1] | '64 years | [1] |
GMWB | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | 582.9 | 578.4 | ||
Average Attained Age of Annuitant | '64 years | '63 years | ||
GMAB | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | 388.5 | 390.6 | ||
Average Attained Age of Annuitant | '58 years | '58 years | ||
COMBO | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Account Value | $7.40 | $8.50 | ||
Average Attained Age of Annuitant | '62 years | '62 years | ||
[1] | Policies with a GMIB also have a GMDB, however these benefits are not additive. When a policy terminates due to death, any NAR related or GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. |
Separate_Accounts_Death_Benefi6
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Variable Annuity Embedded Derivative Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Separate Accounts Death Benefits Other Insurance Benefit Features And Embedded Product Derivatives Details 4 | ' | ' |
GMWB | $0 | $15.30 |
GMAB | 4.2 | 14.6 |
COMBO | -0.4 | -0.3 |
Total variable annuity embedded derivative liabilities | $3.80 | $29.60 |
Separate_Accounts_Death_Benefi7
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Separate Accounts, Death Benefits, Other Insurance Benefit Features And Embedded Product Derivatives [Abstract] | ' | ' | ' | ' | ' |
Assets supporting fixed indexed annuities | $1,900,000,000 | ' | $1,900,000,000 | ' | $1,800,000,000 |
Decrease in separate account assets and liabilities | ' | ' | ' | ' | 464,200,000 |
Fair value embedded derivatives | 69,000,000 | ' | 69,000,000 | ' | 51,200,000 |
Embedded derivatives gains and (losses) recognized in earnings | $8,900,000 | $7,100,000 | $14,600,000 | $6,900,000 | ' |
Separate_Accounts_Death_Benefi8
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Changes in Additional Liability Balances (Details) (Universal Life, USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Universal Life | ' | ' |
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' |
Liability balance, beginning of period | $308.40 | $200.50 |
Expenses | 54.6 | 46.3 |
Change due to net unrealized gains or losses included in AOCI | -21.4 | 16.8 |
Assumption unlocking | 0 | 44.8 |
Liability balance, end of period | $341.60 | $308.40 |
Derivative_Instruments_Narrati
Derivative Instruments Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Cash and cash equivalents held at collateral by a third party related to derivative transactions | $9.20 | $9.20 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ' | ' | ||
Fair Value Assets | $197.20 | $157.40 | ||
Fair Value Liabilities | 83.2 | 45.8 | ||
Derivative liabilities contingent receivable | 2.5 | 2.7 | ||
Total derivative instruments [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 3,759.60 | 2,135 | ||
Fair Value Assets | 197.2 | 157.4 | ||
Fair Value Liabilities | 83.2 | [1] | 45.8 | [1] |
Interest rate swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 160 | 180 | ||
Fair Value Assets | 6.8 | 15.5 | ||
Fair Value Liabilities | 7.2 | [1] | 7.7 | [1] |
Variance swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 0.9 | 0.9 | ||
Fair Value Assets | 0 | 0 | ||
Fair Value Liabilities | 7.3 | [1] | 4.4 | [1] |
Swaptions | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 1,402 | 25 | ||
Fair Value Assets | 22.2 | 0 | ||
Fair Value Liabilities | 0 | [1] | 0 | [1] |
Put options | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 406 | 406 | ||
Fair Value Assets | 43.1 | 72.7 | ||
Fair Value Liabilities | 0 | [1] | 0 | [1] |
Call options | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 1,623.90 | [2] | 1,328.40 | [3] |
Fair Value Assets | 107.9 | [2] | 53.3 | [3] |
Fair Value Liabilities | 68.2 | [1],[2] | 33.6 | [1],[3] |
Cross currency swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 10 | 10 | ||
Fair Value Assets | 0 | 0 | ||
Fair Value Liabilities | 0.5 | [1] | 0.1 | [1] |
Equity futures | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 156.8 | 184.7 | ||
Fair Value Assets | 17.2 | 15.9 | ||
Fair Value Liabilities | $0 | [1] | $0 | [1] |
[1] | Derivative liabilities are included in other liabilities on the consolidated balance sheets. | |||
[2] | Includes a contingent receivable of $2.5 million. | |||
[3] | Includes a contingent receivable of $2.7 million. |
Derivative_Instruments_Derivat
Derivative Instruments Derivative Instrument Gains (Losses) Recognized in Earnings (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Interest rate swaps | ($2.90) | ($0.40) | ($8.90) | $0.50 |
Variance swaps | -1.2 | -1.8 | -3 | -6.4 |
Swaptions | -4.7 | 0 | 8.9 | -0.2 |
Put options | -8.8 | -8.4 | -30.2 | -14.6 |
Call options | 10.6 | 7.4 | 30.5 | 7.6 |
Equity futures | -7.7 | -11.1 | -31.8 | -20.5 |
Cross currency swaps | -0.5 | 0.1 | -0.4 | 0.2 |
Embedded derivatives | 8.9 | 7.1 | 14.6 | 6.9 |
Total derivative instrument losses recognized in realized investment gains (losses) | ($6.30) | ($7.10) | ($20.30) | ($26.50) |
Derivative_Instruments_Derivat1
Derivative Instruments Derivative Instruments Offsetting Assets and Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivative Asset [Abstract] | ' | ' | ||
Gross amounts recognized | $197.20 | [1] | $157.40 | [1] |
Gross amounts offset in the balance sheet | 0 | 0 | ||
Net amount presented in the balance sheet | 197.2 | 157.4 | ||
Derivative, collateral, obligation to return securities | -82.8 | -45.7 | ||
Gross amounts not offset in the balance sheet, Cash collateral received/pledged | 8.8 | 9.1 | ||
Net amount | 114.4 | 111.7 | ||
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Gross amounts recognized | -83.2 | [1] | -45.8 | [1] |
Gross amounts offset in the balance sheet | 0 | 0 | ||
Net amounts presented in the balance sheet | -83.2 | -45.8 | ||
Derivative, collateral, right to reclaim securities | 82.8 | 45.7 | ||
Cash collateral pledged | 0.4 | [2] | 0.1 | [2] |
Net amount | $0 | $0 | ||
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | |||
[2] | Cash collateral pledged with derivative counterparties is recorded within other assets on the balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $8.8 million and $9.1 million as of September 30, 2013 and December 31, 2012, respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Nonrecurring (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | $11,713.20 | $11,956.40 | ||
Separate account assets | 3,350.90 | 3,316.50 | ||
Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 11,713.20 | 11,956.40 | ||
Available-for-sale equity securities | 45.2 | 34.8 | ||
Short-term investments | 454.8 | 699.6 | ||
Derivative assets | 197.2 | 157.4 | ||
Fair value investments | 223.7 | [1] | 201.5 | [2] |
Separate account assets | 3,350.90 | 3,316.50 | ||
Total assets | 15,985 | 16,366.20 | ||
LIABILITIES: | ' | ' | ||
Derivative liabilities | 83.2 | 45.8 | ||
Embedded derivatives | 72.8 | 80.8 | ||
Total liabilities | 156 | 126.6 | ||
Debt securities fair value | 133.4 | 126.1 | ||
Deferred compensation liabilities | 22.6 | 21.9 | ||
Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
Available-for-sale equity securities | 3.1 | 2.1 | ||
Short-term investments | 454.8 | 699.6 | ||
Derivative assets | 17.2 | 15.9 | ||
Fair value investments | 31.2 | [1] | 30.6 | [2] |
Separate account assets | 3,350.90 | 3,316.50 | ||
Total assets | 3,857.20 | 4,064.70 | ||
LIABILITIES: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Embedded derivatives | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 6,012.10 | 6,256.60 | ||
Available-for-sale equity securities | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Derivative assets | 180 | 141.5 | ||
Fair value investments | 14 | [1] | 17.6 | [2] |
Separate account assets | 0 | 0 | ||
Total assets | 6,206.10 | 6,415.70 | ||
LIABILITIES: | ' | ' | ||
Derivative liabilities | 83.2 | 45.8 | ||
Embedded derivatives | 0 | 0 | ||
Total liabilities | 83.2 | 45.8 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 5,701.10 | 5,699.80 | ||
Available-for-sale equity securities | 42.1 | 32.7 | ||
Short-term investments | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Fair value investments | 178.5 | [1] | 153.3 | [2] |
Separate account assets | 0 | 0 | ||
Total assets | 5,921.70 | 5,885.80 | ||
LIABILITIES: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Embedded derivatives | 72.8 | 80.8 | ||
Total liabilities | 72.8 | 80.8 | ||
Consolidated Variable Interest Entity | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Fair value investments | 67.7 | 53.5 | ||
Consolidated Variable Interest Entity | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Fair value investments | 8.6 | 8.7 | ||
U.S. government and agency | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 445.8 | 411.9 | ||
U.S. government and agency | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 445.8 | 411.9 | ||
U.S. government and agency | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
U.S. government and agency | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 96 | 115.2 | ||
U.S. government and agency | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 349.8 | [3] | 296.7 | [3] |
State and political subdivision | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 377.6 | 357.2 | ||
State and political subdivision | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 377.6 | 357.2 | ||
State and political subdivision | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
State and political subdivision | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 139.5 | 144.8 | ||
State and political subdivision | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 238.1 | 212.4 | ||
Foreign government | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 194.8 | 204.3 | ||
Foreign government | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 194.8 | 204.3 | ||
Foreign government | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
Foreign government | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 179.1 | 158.5 | ||
Foreign government | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 15.7 | 45.8 | ||
Corporate | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 7,625.20 | 7,670 | ||
Corporate | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 7,625.20 | 7,670 | ||
Corporate | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
Corporate | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 3,735.30 | 3,857.70 | ||
Corporate | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 3,889.90 | 3,812.30 | ||
Commercial mortgage-backed (“CMBSâ€) | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 754.8 | 882.2 | ||
Commercial mortgage-backed (“CMBSâ€) | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 754.8 | 882.2 | ||
Commercial mortgage-backed (“CMBSâ€) | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
Commercial mortgage-backed (“CMBSâ€) | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 625.1 | 792.5 | ||
Commercial mortgage-backed (“CMBSâ€) | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 129.7 | 89.7 | ||
Residential mortgage-backed (“RMBSâ€) | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 1,744.90 | 1,771.70 | ||
Residential mortgage-backed (“RMBSâ€) | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 1,744.90 | 1,771.70 | ||
Residential mortgage-backed (“RMBSâ€) | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
Residential mortgage-backed (“RMBSâ€) | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 1,156.20 | 1,062.40 | ||
Residential mortgage-backed (“RMBSâ€) | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 588.7 | 709.3 | ||
CDO/CLO | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 220.7 | 223.7 | ||
CDO/CLO | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 220.7 | 223.7 | ||
CDO/CLO | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
CDO/CLO | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
CDO/CLO | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 220.7 | 223.7 | ||
Other asset-backed | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 349.4 | 435.4 | ||
Other asset-backed | Fair Value, Measurements, Nonrecurring | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 349.4 | 435.4 | ||
Other asset-backed | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 0 | 0 | ||
Other asset-backed | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | 80.9 | 125.5 | ||
Other asset-backed | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ||
ASSETS: | ' | ' | ||
Available-for-sale debt securities | $268.50 | $309.90 | ||
[1] | Fair value investments at September 30, 2013 include $133.4 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $22.6 million as of September 30, 2013. Changes in the fair value of these assets are recorded through net investment income. Additionally, $67.7 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.6 million of which are Level 1 securities. | |||
[2] | Fair value investments at December 31, 2012 include $126.1 million of debt securities recorded at fair value. In addition, we have also elected the fair value option for equity securities backing our deferred compensation liabilities at $21.9 million as of December 31, 2012. Changes in the fair value of these assets are recorded through net investment income. Additionally, $53.5 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.7 million of which are Level 1 securities. | |||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Corporates Carried on a Recurring Basis (Details) (Recurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Values of Corporates by Level and Sector: | ' | ' |
Consumer | $2,519.10 | $3,021.10 |
Energy | 720.2 | 420.5 |
Financial services | 2,360.70 | 2,219.20 |
Technical/communications | 353 | 199.3 |
Transportation | 270.9 | 228.6 |
Utilities | 866 | 1,138.30 |
Other | 535.3 | 443 |
Total corporates | 7,625.20 | 7,670 |
Level 1 | ' | ' |
Fair Values of Corporates by Level and Sector: | ' | ' |
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial services | 0 | 0 |
Technical/communications | 0 | 0 |
Transportation | 0 | 0 |
Utilities | 0 | 0 |
Other | 0 | 0 |
Total corporates | 0 | 0 |
Level 2 | ' | ' |
Fair Values of Corporates by Level and Sector: | ' | ' |
Consumer | 920.5 | 1,160.30 |
Energy | 433.6 | 277.8 |
Financial services | 1,491.40 | 1,456.50 |
Technical/communications | 268.9 | 154.7 |
Transportation | 90.9 | 72.6 |
Utilities | 303.1 | 506.5 |
Other | 226.9 | 229.3 |
Total corporates | 3,735.30 | 3,857.70 |
Level 3 | ' | ' |
Fair Values of Corporates by Level and Sector: | ' | ' |
Consumer | 1,598.60 | 1,860.80 |
Energy | 286.6 | 142.7 |
Financial services | 869.3 | 762.7 |
Technical/communications | 84.1 | 44.6 |
Transportation | 180 | 156 |
Utilities | 562.9 | 631.8 |
Other | 308.4 | 213.7 |
Total corporates | $3,889.90 | $3,812.30 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Changes in Fair Value of Level 3 Financial Assets (Details) (Level 3, Fair Value, Measurements, Nonrecurring, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
U.S. government and agency | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | $327.90 | [1] | $322.90 | [1] | $296.70 | [1] | $336.20 | [1] |
Purchases | 30.4 | [1] | 0.6 | [1] | 78.8 | [1] | 2.6 | [1] |
Sales | -7.9 | [1] | -2.3 | [1] | -11.7 | [1] | -13.9 | [1] |
Transfers into Level 3 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Transfers out of Level 3 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Realized & unrealized gains (losses) included in income | 0 | [1],[2] | 0.2 | [1],[2] | 0 | [1],[3] | 0.2 | [1],[3] |
Unrealized gains (losses) included in OCI | -0.6 | [1] | -0.8 | [1] | -14 | [1] | -4.5 | [1] |
Balance, end of period | 349.8 | [1] | 320.6 | [1] | 349.8 | [1] | 320.6 | [1] |
State and political subdivision | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 207.9 | 181.7 | 212.4 | 116.6 | ||||
Purchases | 36.2 | 10.2 | 59.5 | 40.5 | ||||
Sales | -0.6 | -0.4 | -2.2 | -2.5 | ||||
Transfers into Level 3 | 0 | 0 | 0 | 22.2 | ||||
Transfers out of Level 3 | -3.3 | 0 | 0 | -8.3 | ||||
Realized & unrealized gains (losses) included in income | 0 | [2] | 0 | [2] | 0 | [3] | 0 | [3] |
Unrealized gains (losses) included in OCI | -2.1 | 1.4 | -31.6 | 24.4 | ||||
Balance, end of period | 238.1 | 192.9 | 238.1 | 192.9 | ||||
Foreign government | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 15.5 | 52.9 | 45.8 | 51.8 | ||||
Purchases | 0 | 0 | 0 | 5 | ||||
Sales | 0 | 0 | 0 | -0.1 | ||||
Transfers into Level 3 | 0 | 0 | 8 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | -31.3 | 0 | ||||
Realized & unrealized gains (losses) included in income | 0 | [2] | 0 | [2] | 0 | [3] | 0 | [3] |
Unrealized gains (losses) included in OCI | 0.2 | 2.1 | -6.8 | -1.7 | ||||
Balance, end of period | 15.7 | 55 | 15.7 | 55 | ||||
Corporate | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 3,841.80 | 3,702.20 | 3,812.30 | 3,501.50 | ||||
Purchases | 138.4 | 88.4 | 547.1 | 457.6 | ||||
Sales | -28.7 | -10.2 | -60.3 | -65.8 | ||||
Transfers into Level 3 | 45.2 | 0 | 95.5 | 56.3 | ||||
Transfers out of Level 3 | -1.1 | -18.8 | -41.3 | -122.4 | ||||
Realized & unrealized gains (losses) included in income | -0.7 | [2] | 0 | [2] | -2.1 | [3] | -0.5 | [3] |
Unrealized gains (losses) included in OCI | -105 | -28.4 | -461.3 | -93.5 | ||||
Balance, end of period | 3,889.90 | 3,733.20 | 3,889.90 | 3,733.20 | ||||
Commercial mortgage-backed (“CMBSâ€) | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 116.3 | 99.2 | 89.7 | 100.6 | ||||
Purchases | 20.1 | 0 | 60.3 | 0 | ||||
Sales | -6.6 | 0 | -9.8 | -8.2 | ||||
Transfers into Level 3 | 0 | 0 | 0 | 12.1 | ||||
Transfers out of Level 3 | 0 | 0 | -8.7 | -37.1 | ||||
Realized & unrealized gains (losses) included in income | 0.8 | [2] | 0 | [2] | -1.2 | [3] | -4.2 | [3] |
Unrealized gains (losses) included in OCI | -0.9 | -25.5 | -0.6 | 10.5 | ||||
Balance, end of period | 129.7 | 73.7 | 129.7 | 73.7 | ||||
Residential mortgage-backed (“RMBSâ€) | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 634.1 | 857.5 | 709.3 | 944.2 | ||||
Purchases | 0.5 | 3.8 | 1.7 | 2.9 | ||||
Sales | -30.4 | -9.1 | -72.1 | -94.6 | ||||
Transfers into Level 3 | 4.7 | 0 | 5.1 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||||
Realized & unrealized gains (losses) included in income | -1.6 | [2] | -0.4 | [2] | -3.6 | [3] | -6.7 | [3] |
Unrealized gains (losses) included in OCI | -18.6 | -19 | -51.7 | -13 | ||||
Balance, end of period | 588.7 | 832.8 | 588.7 | 832.8 | ||||
CDO/CLO | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 231 | 207.6 | 223.7 | 232.4 | ||||
Purchases | 16.3 | 0 | 61.4 | 9.9 | ||||
Sales | -7.2 | -5.5 | -20.1 | -18.6 | ||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||||
Realized & unrealized gains (losses) included in income | 0 | [2] | 0.5 | [2] | -0.4 | [3] | 1.3 | [3] |
Unrealized gains (losses) included in OCI | -19.4 | 13.9 | -43.9 | -8.5 | ||||
Balance, end of period | 220.7 | 216.5 | 220.7 | 216.5 | ||||
Other asset-backed | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 285.1 | 297.5 | 309.9 | 335.5 | ||||
Purchases | 16.9 | 3.5 | 17.9 | 17.2 | ||||
Sales | -28 | -5.9 | -21.4 | -26.4 | ||||
Transfers into Level 3 | 0 | 32.5 | 0 | 0.1 | ||||
Transfers out of Level 3 | -0.9 | 0 | -1.3 | -11.4 | ||||
Realized & unrealized gains (losses) included in income | -0.3 | [2] | -0.5 | [2] | -0.4 | [3] | -1.5 | [3] |
Unrealized gains (losses) included in OCI | -4.3 | -6.1 | -36.2 | 7.5 | ||||
Balance, end of period | 268.5 | 321 | 268.5 | 321 | ||||
Debt Securities | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 5,659.60 | 5,721.50 | 5,699.80 | 5,618.80 | ||||
Purchases | 258.8 | 106.5 | 826.7 | 535.7 | ||||
Sales | -109.4 | -33.4 | -197.6 | -230.1 | ||||
Transfers into Level 3 | 49.9 | 32.5 | 108.6 | 90.7 | ||||
Transfers out of Level 3 | -5.3 | -18.8 | -82.6 | -179.2 | ||||
Realized & unrealized gains (losses) included in income | -1.8 | [2] | -0.2 | [2] | -7.7 | [3] | -11.4 | [3] |
Unrealized gains (losses) included in OCI | -150.7 | -62.4 | -646.1 | -78.8 | ||||
Balance, end of period | 5,701.10 | 5,745.70 | 5,701.10 | 5,745.70 | ||||
Available-for-sale Securities | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 35.6 | 36 | 32.7 | 29.4 | ||||
Purchases | 0.1 | 0 | 5 | 5.6 | ||||
Sales | 0 | 0 | -2.3 | 0 | ||||
Transfers into Level 3 | 0 | 0 | 0 | 4.8 | ||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||||
Realized & unrealized gains (losses) included in income | 0 | [2] | -1.5 | [2] | 0 | [3] | -1.5 | [3] |
Unrealized gains (losses) included in OCI | 6.4 | -5.2 | 6.7 | -9 | ||||
Balance, end of period | 42.1 | 29.3 | 42.1 | 29.3 | ||||
Short-term Investments | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||||
Realized & unrealized gains (losses) included in income | 0 | [2] | 0 | [2] | 0 | [3] | 0 | [3] |
Unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | 0 | ||||
Fair value option investments | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 171 | 159.3 | 153.3 | 144.8 | ||||
Purchases | 6.5 | 1.8 | 25.8 | 26.3 | ||||
Sales | -4.2 | -10.2 | -10.2 | -9 | ||||
Transfers into Level 3 | 0 | 0 | 1.3 | 0 | ||||
Transfers out of Level 3 | 0 | -1.4 | 0 | 0 | ||||
Realized & unrealized gains (losses) included in income | 5.2 | [2] | 14.6 | [2] | 8.3 | [3] | 2 | [3] |
Unrealized gains (losses) included in OCI | 0 | 0 | 0 | 0 | ||||
Balance, end of period | 178.5 | 164.1 | 178.5 | 164.1 | ||||
Total assets | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance, beginning of period | 5,866.20 | 5,916.80 | 5,885.80 | 5,793 | ||||
Purchases | 265.4 | 108.3 | 857.5 | 567.6 | ||||
Sales | -113.6 | -43.6 | -210.1 | -239.1 | ||||
Transfers into Level 3 | 49.9 | 32.5 | 109.9 | 95.5 | ||||
Transfers out of Level 3 | -5.3 | -20.2 | -82.6 | -179.2 | ||||
Realized & unrealized gains (losses) included in income | 3.4 | [2] | 12.9 | [2] | 0.6 | [3] | -10.9 | [3] |
Unrealized gains (losses) included in OCI | -144.3 | -67.6 | -639.4 | -87.8 | ||||
Balance, end of period | $5,921.70 | $5,939.10 | $5,921.70 | $5,939.10 | ||||
[1] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. | |||||||
[2] | Reflected in realized investment gains and losses for all assets except fair value investments which are included in net investment income. | |||||||
[3] | Reflected in realized investment gains and losses for all assets except limited partnerships and other investments and fair value investments. |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Changes in Fair Value of Level 3 Financial Liabilities (Details) (Embedded Derivatives, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Embedded Derivatives | ' | ' | ' | ' | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Balance, beginning of period | $77.60 | $89.30 | $80.80 | $84.50 | ||||
Net purchases/(sales) | 4.1 | 2.2 | 6.6 | 6.8 | ||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||||
Realized (gains) losses | -8.9 | [1] | -7.1 | [1] | -14.6 | [1] | -6.9 | [1] |
Balance, end of period | $72.80 | $84.40 | $72.80 | $84.40 | ||||
[1] | Realized gains and losses are included in net realized investment gains on the consolidated statements of income and comprehensive income. |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments - Quantitative Estimates for Level 3 Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Market Approach Valuation Technique | US Treasury and Government | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 3.46% | [1] | 3.20% | [1] |
Market Approach Valuation Technique | State and political subdivision | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 3.55% | [1] | 2.94% | [1] |
Market Approach Valuation Technique | Corporate | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 3.34% | [1] | 3.00% | [1] |
Income Approach Valuation Technique | Other asset-backed | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 2.35% | [1] | 3.41% | [1] |
Fair Value Inputs, Prepayment Rate | 2.00% | [1] | 2.00% | [1] |
Fair Value Inputs, Probability of Default | 2.53% | [1] | 2.53% | [1] |
Fair Value Inputs, Recovery Rate | 10.00% | [1] | 10.00% | [1] |
Fair Value Inputs, Probability of Default, Term Two | 0.37% | [1] | 0.33% | [1] |
Income Approach Valuation Technique | Fair Value Investments | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Probability of Default | 0.35% | [1] | 0.24% | [1] |
Fair Value Inputs, Recovery Rate | 45.00% | [1] | 45.00% | [1] |
Income Approach Valuation Technique | Collateralized Loan Obligations | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Prepayment Rate | ' | 20.00% | [1] | |
Fair Value Inputs, Probability of Default | ' | 2.55% | [1] | |
Fair Value Inputs, Recovery Rate | ' | 65.00% | [1] | |
Income Approach Valuation Technique | High Yield Bonds | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Recovery Rate | ' | 35.00% | [1] | |
Income Approach Valuation Technique | Investment Grade Bonds | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Recovery Rate | ' | 45.00% | [1] | |
Income Approach Valuation Technique | CDO/CLO | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Reinvestment Rate | ' | 4.00% | [1] | |
Minimum | Market Approach Valuation Technique | US Treasury and Government | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 1.08% | [1] | 1.46% | [1] |
Minimum | Market Approach Valuation Technique | State and political subdivision | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 2.28% | [1] | 1.94% | [1] |
Minimum | Market Approach Valuation Technique | Corporate | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 1.08% | [1] | 1.36% | [1] |
Minimum | Income Approach Valuation Technique | Other asset-backed | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 0.80% | [1] | 0.50% | [1] |
Maximum | Market Approach Valuation Technique | US Treasury and Government | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 5.40% | [1] | 5.19% | [1] |
Maximum | Market Approach Valuation Technique | State and political subdivision | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 4.23% | [1] | 3.53% | [1] |
Maximum | Market Approach Valuation Technique | Corporate | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 6.44% | [1] | 7.82% | [1] |
Maximum | Income Approach Valuation Technique | Other asset-backed | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Fair Value Inputs, Yield Rate | 4.42% | [1] | 9.50% | [1] |
Level 3 | US Treasury and Government | ' | ' | ||
Level 3 Assets: | ' | ' | ||
U.S. government and agency | 349.8 | [1] | 286.1 | [1] |
Level 3 | State and political subdivision | ' | ' | ||
Level 3 Assets: | ' | ' | ||
State and political subdivision | 108 | [1] | 107.4 | [1] |
Level 3 | Corporate | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Corporate | 2,922.90 | [1] | 2,888.90 | [1] |
Level 3 | Other asset-backed | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Other asset-backed | 48.3 | [1] | 43.5 | [1] |
Level 3 | CDO/CLO | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Asset-Backed Securities, at Carrying Value | ' | 15.5 | [1] | |
Level 3 | Fair value option investments | ' | ' | ||
Level 3 Assets: | ' | ' | ||
Other asset-backed | 5.2 | [1] | 5 | [1] |
[1] | Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations for which unobservable inputs are not reasonably available to us. |
Fair_Value_of_Financial_Instru7
Fair Value of Financial Instruments - Quantitative Estimates for Level 3 Liabilities (Details) (Level 3, USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
EIA/VED Embedded Derivative | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value, Balance | $69 | $51.20 |
GMAB/GMWB Embedded Derivatives | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value, Balance | $3.80 | $29.60 |
Income Approach Valuation Technique | EIA/VED Embedded Derivative | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value Inputs, Mortality Rate | 75.00% | 75.00% |
Fair Value Inputs, CSA Rate | 3.99% | 4.47% |
Income Approach Valuation Technique | GMAB/GMWB Embedded Derivatives | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value Inputs, Mortality Rate | 75.00% | 75.00% |
Fair Value Inputs, CSA Rate | 3.99% | 4.47% |
Income Approach Valuation Technique | Minimum | EIA/VED Embedded Derivative | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value Inputs, Swap Curve | 0.22% | 0.21% |
Fair Value Inputs, Lapse Rate | 0.60% | 1.00% |
Income Approach Valuation Technique | Minimum | GMAB/GMWB Embedded Derivatives | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value Inputs, Swap Curve | 0.14% | 0.36% |
Fair Value Inputs, Lapse Rate | 0.00% | 0.00% |
Fair Value Inputs, Volatility Surface | 11.46% | 11.67% |
Income Approach Valuation Technique | Maximum | EIA/VED Embedded Derivative | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value Inputs, Swap Curve | 3.46% | 2.50% |
Fair Value Inputs, Lapse Rate | 35.00% | 35.00% |
Income Approach Valuation Technique | Maximum | GMAB/GMWB Embedded Derivatives | ' | ' |
Level 3 Liabilities: | ' | ' |
Fair Value Inputs, Swap Curve | 3.88% | 3.17% |
Fair Value Inputs, Lapse Rate | 60.00% | 60.00% |
Fair Value Inputs, Volatility Surface | 51.22% | 50.83% |
Fair_Value_of_Financial_Instru8
Fair Value of Financial Instruments - Level 3 Assets and Liabilities by Pricing Source (Details) (Fair Value, Measurements, Nonrecurring, Level 3, USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | ||||||
In Millions, unless otherwise specified | ||||||||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total liabilities Internal | $72.80 | [1] | ' | $80.80 | [1] | ' | ' | ' | ||||
Total liabilities External | 0 | [2] | ' | 0 | [2] | ' | ' | ' | ||||
Total liabilities | 72.8 | ' | 80.8 | ' | ' | ' | ||||||
Embedded Derivatives | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total liabilities Internal | 72.8 | [1] | ' | 80.8 | [1] | ' | ' | ' | ||||
Total liabilities External | 0 | [2] | ' | 0 | [2] | ' | ' | ' | ||||
Total liabilities | 72.8 | ' | 80.8 | ' | ' | ' | ||||||
U.S. government and agency | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 349.8 | [1],[3] | ' | 286.1 | [1],[3] | ' | ' | ' | ||||
Total assets External | 0 | [2],[3] | ' | 10.6 | [2],[3] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 349.8 | [3] | 327.9 | [3] | 296.7 | [3] | 320.6 | [3] | 322.9 | [3] | 336.2 | [3] |
State and political subdivision | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 108 | [1] | ' | 107.4 | [1] | ' | ' | ' | ||||
Total assets External | 130.1 | [2] | ' | 105 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 238.1 | 207.9 | 212.4 | 192.9 | 181.7 | 116.6 | ||||||
Foreign government | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 0 | [1] | ' | 0 | [1] | ' | ' | ' | ||||
Total assets External | 15.7 | [2] | ' | 45.8 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 15.7 | 15.5 | 45.8 | 55 | 52.9 | 51.8 | ||||||
Corporate | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 2,922.90 | [1] | ' | 2,888.90 | [1] | ' | ' | ' | ||||
Total assets External | 967 | [2] | ' | 923.4 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 3,889.90 | 3,841.80 | 3,812.30 | 3,733.20 | 3,702.20 | 3,501.50 | ||||||
Commercial mortgage-backed (“CMBSâ€) | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 0 | [1] | ' | 0 | [1] | ' | ' | ' | ||||
Total assets External | 129.7 | [2] | ' | 89.7 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 129.7 | 116.3 | 89.7 | 73.7 | 99.2 | 100.6 | ||||||
Residential mortgage-backed (“RMBSâ€) | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 0 | [1] | ' | 0 | [1] | ' | ' | ' | ||||
Total assets External | 588.7 | [2] | ' | 709.3 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 588.7 | 634.1 | 709.3 | 832.8 | 857.5 | 944.2 | ||||||
CDO/CLO | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 0 | [1] | ' | 15.5 | [1] | ' | ' | ' | ||||
Total assets External | 220.7 | [2] | ' | 208.2 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 220.7 | 231 | 223.7 | 216.5 | 207.6 | 232.4 | ||||||
Other asset-backed | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 48.3 | [1] | ' | 43.5 | [1] | ' | ' | ' | ||||
Total assets External | 220.2 | [2] | ' | 266.4 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 268.5 | 285.1 | 309.9 | 321 | 297.5 | 335.5 | ||||||
Debt Securities | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 3,429 | [1] | ' | 3,341.40 | [1] | ' | ' | ' | ||||
Total assets External | 2,272.10 | [2] | ' | 2,358.40 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 5,701.10 | 5,659.60 | 5,699.80 | 5,745.70 | 5,721.50 | 5,618.80 | ||||||
Available-for-sale Securities | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 0 | [1] | ' | 0 | [1] | ' | ' | ' | ||||
Total assets External | 42.1 | [2] | ' | 32.7 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 42.1 | 35.6 | 32.7 | 29.3 | 36 | 29.4 | ||||||
Short-term Investments | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 0 | [1] | ' | 0 | [1] | ' | ' | ' | ||||
Total assets External | 0 | [2] | ' | 0 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Fair value option investments | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 5.2 | [1] | ' | 5 | [1] | ' | ' | ' | ||||
Total assets External | 173.3 | [2] | ' | 148.3 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | 178.5 | 171 | 153.3 | 164.1 | 159.3 | 144.8 | ||||||
Total assets | ' | ' | ' | ' | ' | ' | ||||||
Level 3 Assets and Liabilities by Pricing Source: | ' | ' | ' | ' | ' | ' | ||||||
Total assets Internal | 3,434.20 | [1] | ' | 3,346.40 | [1] | ' | ' | ' | ||||
Total assets External | 2,487.50 | [2] | ' | 2,539.40 | [2] | ' | ' | ' | ||||
Fair Value, Total assets, Balance | $5,921.70 | $5,866.20 | $5,885.80 | $5,939.10 | $5,916.80 | $5,793 | ||||||
[1] | Represents valuations reflecting both internally-derived and market inputs, as well as third-party information or quotes. | |||||||||||
[2] | Represents unadjusted prices from independent pricing services, third-party financial statements and independent indicative broker quotes where pricing inputs are not readily available. | |||||||||||
[3] | Includes securities whose underlying collateral is an obligation of a U.S. government entity. |
Fair_Value_of_Financial_Instru9
Fair Value of Financial Instruments - Financial Instruments Not Carried at Fair Value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Policy Loans | Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Value of Financial instruments | $2,329.90 | $2,354.70 |
Fair Value of Financial instruments | 2,317.90 | 2,342.80 |
Cash and Cash Equivalents | Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Value of Financial instruments | 492.8 | 246.4 |
Fair Value of Financial instruments | 492.8 | 246.4 |
Investment Contracts | Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Value of Financial instruments | 3,328.60 | 3,040.70 |
Fair Value of Financial instruments | 3,323.40 | 3,045.90 |
Surplus Notes | Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Value of Financial instruments | 126.1 | 126.1 |
Fair Value of Financial instruments | 93.3 | 95 |
Senior unsecured bonds | Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Value of Financial instruments | 252.7 | 252.7 |
Fair Value of Financial instruments | $234 | $217.10 |
Recovered_Sheet1
Fair Value of Financial Instruments Fair Value of Financial Instruments - Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value investments | $223.70 | $201.50 |
Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value investments | $27.80 | $34.50 |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax expense | $9.20 | ($4.90) | $12.10 | ($1) |
Deferred tax asset, net of deferred tax liabilities and valuation allowances | 66 | ' | 66 | ' |
Net increase in the deferred tax asset valuation allowance recognized | $6.80 | ' | $49.50 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ($249.30) | ($230.70) | ||
Change in component during the period before reclassification | -1 | -1.3 | ||
Amounts reclassified from AOCI | -8.6 | ' | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | -258.9 | -232 | ||
Net Unrealized Gains / (Losses) on Investments where Credit-related OTTI was Recognized | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | -6.2 | [1] | -35.1 | [1] |
Change in component during the period before reclassification | 18.3 | [1] | 27.5 | [1] |
Amounts reclassified from AOCI | -3.1 | [1] | ' | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 9 | [1] | -7.6 | [1] |
Net-Unrealized Gains / (Losses) on All Other Investments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 77.9 | [1] | 104 | [1] |
Change in component during the period before reclassification | -23.2 | [1] | -28.7 | [1] |
Amounts reclassified from AOCI | -10.6 | [1] | ' | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 44.1 | [1] | 75.3 | [1] |
Net Pension Liability Adjustments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | -321 | -299.6 | ||
Change in component during the period before reclassification | 3.9 | -0.1 | ||
Amounts reclassified from AOCI | 5.1 | ' | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | ($312) | ($299.70) | ||
[1] | See Note 7 to these financial statements for additional information regarding offsets to net unrealized investment gains and losses which include policyholder dividend obligation, DAC and other actuarial offsets, and deferred income tax expense (benefit). |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Reclassification Out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' |
Net realized capital gains (losses) | $8 | $27.50 | ($0.70) | $1.60 |
Net gain amortization | 0.3 | 0.4 | 0.9 | 1.2 |
Prior service cost amortization | -2.9 | -2.6 | -8.7 | -7.8 |
Income tax expense (benefit) | 9.2 | -4.9 | 12.1 | -1 |
Net income (loss) | -21.9 | -98 | -123.6 | -147.1 |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' |
Net income (loss) | 9.4 | ' | 8.6 | ' |
Net Unrealized Gains / (Losses) on Investments where Credit-related OTTI was Recognized | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' |
Net realized capital gains (losses) | 2.2 | ' | 4.8 | ' |
Total before income taxes | 2.2 | ' | 4.8 | ' |
Income tax expense (benefit) | 0.8 | ' | 1.7 | ' |
Net income (loss) | 1.4 | ' | 3.1 | ' |
Net-Unrealized Gains / (Losses) on All Other Investments | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' |
Net realized capital gains (losses) | 14.9 | ' | 16.3 | ' |
Total before income taxes | 14.9 | ' | 16.3 | ' |
Income tax expense (benefit) | 5.2 | ' | 5.7 | ' |
Net income (loss) | 9.7 | ' | 10.6 | ' |
Net Pension Liability Adjustments | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' |
Net gain amortization | -2.9 | ' | -8.7 | ' |
Prior service cost amortization | 0.3 | ' | 0.9 | ' |
Total before income taxes | -2.6 | ' | -7.8 | ' |
Income tax expense (benefit) | -0.9 | ' | -2.7 | ' |
Net income (loss) | ($1.70) | ' | ($5.10) | ' |
Components_of_Pension_Benefit_
Components of Pension Benefit Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Service cost | $0.50 | $0.20 | $1.50 | $0.70 |
Interest cost | 8.2 | 8.7 | 24.6 | 26.1 |
Expected return on plan assets | -9 | -8.6 | -27 | -25.7 |
Net loss amortization | 2.9 | 2.6 | 8.7 | 7.8 |
Pension benefit cost | $2.60 | $2.90 | $7.80 | $8.90 |
Components_of_Other_Postretire
Components of Other Postretirement Benefit Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Service cost | $0 | $0.10 | $0 | $0.20 |
Interest cost | 0.3 | 0.5 | 0.9 | 1.4 |
Net gain amortization | 0 | 0 | 0 | -0.1 |
Prior service cost amortization | -0.3 | -0.4 | -0.9 | -1.2 |
Other post-employment benefit cost | $0 | $0.20 | $0 | $0.30 |
Employee_Benefit_Plans_and_Emp2
Employee Benefit Plans and Employment Agreements - Narrative (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Amortization of prior service costs included in OCI | $1.70 | ' | $5.10 | ' |
Contributions to pension plan | 8.1 | ' | 11.4 | ' |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | ' | ' | ' | 0 |
Contributions to savings plan | $0.90 | $0.80 | $3.20 | $3.20 |
ShareBased_Payments_Expense_De
Share-Based Payments - Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Compensation cost charged to income from continuing operations | $0.20 | $0.70 | $2.70 | $2.70 |
Income tax expense (benefit) before valuation allowance | $0.10 | $0.20 | $0.90 | $0.90 |
ShareBased_Payment_Narrative_D
Share-Based Payment - Narrative (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | Stock Options | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding exercisable stock options | ' | 85,344 | ' |
Weighted-average exercise price of stock options | ' | $191.22 | ' |
Stock options granted during period | ' | 0 | ' |
Restricted stock units awarded | ' | ' | 3,641 |
Time-Vested restricted stock units outstanding | ' | ' | 82,567 |
Weighted average grant price of time-vested restricted stock units | ' | ' | $48.40 |
Performance-Vested restricted stock units outstanding | ' | ' | 17,024 |
Weighted average grant price of performance-vested restricted stock units | ' | ' | $55.07 |
Liability awards accrued | $3.30 | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Aug. 10, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ||||
Weighted-average common shares outstanding | ' | 5,742 | [1],[2] | 5,749 | [1],[2] | 5,742 | [1],[2] | 5,792 | [1],[2] |
Weighted-average effect of dilutive potential common shares: | ' | ' | ' | ' | ' | ||||
Restricted stock units | ' | 17 | [1] | 77 | [1] | 31 | [1] | 76 | [1] |
Employee stock options | ' | 2 | [1] | 2 | [1] | 2 | [1] | 0 | [1] |
Potential common shares | ' | 19 | [1] | 79 | [1] | 33 | [1] | 76 | [1] |
Less: Potential common shares excluded from calculation due to net losses | ' | 19 | [1] | 79 | [1] | 33 | [1] | 76 | [1] |
Dilutive potential common shares | ' | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Weighted-average common shares outstanding, including dilutive potential common shares | ' | 5,742 | [1] | 5,749 | [1] | 5,742 | [1] | 5,792 | [1] |
Reverse stock split | 0.05 | ' | ' | ' | ' | ||||
[1] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. See Note 9 to these financial statements for additional information on the reverse stock split. | ||||||||
[2] | All share amounts for all periods reflect the 1-for-20 reverse stock split, which was effective August 10, 2012. |
Earnings_Per_Share_Narrative_D
Earnings Per Share - Narrative (Details) | 0 Months Ended | |||
In Millions, unless otherwise specified | Aug. 10, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 11, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Shares outstanding (in shares) | 116 | 5.7 | 5.7 | 5.8 |
Reverse stock split | 0.05 | ' | ' | ' |
Segment_Information_on_Revenue
Segment Information on Revenues (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | $432.20 | $478.10 | $1,247.60 | $1,350.50 | ||||
Interest revenue | 0.1 | 0.2 | 0.3 | 0.5 | ||||
Commission revenue | 2.2 | 2.8 | 7 | 8.8 | ||||
Operating Segments | Life and Annuity | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 428 | [1] | 474.8 | [1] | 1,235.90 | [1] | 1,342.70 | [1] |
Operating Segments | Saybrus Partners | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 6.3 | [2] | 5.9 | [2] | 18.4 | [2] | 16.1 | [2] |
Intersegment Eliminations | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | $2.10 | [3] | $2.60 | [3] | $6.70 | [3] | $8.30 | [3] |
[1] | Includes intercompany interest revenue of $0.1 million and $0.2 million for the three months ended September 30, 2013 and 2012 and $0.3 million and $0.5 million for the nine months ended September 30, 2013 and 2012. | |||||||
[2] | Includes intercompany commission revenue of $2.2 million and $2.8 million for the three months ended September 30, 2013 and 2012 and $7.0 million and $8.8 million for the nine months ended September 30, 2013 and 2012. | |||||||
[3] | All intercompany balances are eliminated in consolidating the financial statements. |
Results_of_Operations_by_Segme
Results of Operations by Segment as Reconciled to Consolidated Net Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Life and Annuity operating loss | ($21.60) | ($136.80) | ($110.40) | ($150.50) |
Saybrus Partners operating income | 0.6 | 0.5 | 1.3 | 0.9 |
Less: Applicable income tax expense (benefit) | -9.2 | 4.9 | -12.1 | 1 |
Loss from discontinued operations, net of income taxes | 0.3 | -6 | -1.7 | -12 |
Net realized investment gains (losses) | 8 | 27.5 | -0.7 | 1.6 |
Gain on debt repurchase | 0 | 11.9 | 0 | 11.9 |
Less: Net income (loss) attributable to noncontrolling interests | -0.1 | 0.8 | -0.3 | 0.6 |
Net income (loss) attributable to The Phoenix Companies, Inc. | ($21.80) | ($98.80) | ($123.30) | ($147.70) |
Discontinued_Operations_Detail
Discontinued Operations (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Discontinued operations assets | $45,500,000 | ' | $45,500,000 | ' | $53,700,000 |
Discontinued operations liabilities | 39,600,000 | ' | 39,600,000 | ' | 48,400,000 |
PFG Holdings Inc. | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Discontinued operations assets | 0 | ' | 0 | ' | 0 |
Discontinued operations liabilities | 0 | ' | 0 | ' | 0 |
Discontinued Operation, Provision for Loss (Gain) on Disposal, Net of Tax | 0 | 3,900,000 | 900,000 | 4,900,000 | ' |
Reinsurance Operations | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Discontinued Operation, Provision for Loss (Gain) on Disposal, Net of Tax | $400,000 | $2,100,000 | $700,000 | $7,100,000 | ' |
Contingent_Liabilities_Details
Contingent Liabilities (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 05, 2012 | Jun. 05, 2012 | Jul. 12, 2013 | Aug. 26, 2013 | Jul. 12, 2013 | Jul. 16, 2014 | Feb. 12, 2014 | Jul. 16, 2014 | Apr. 09, 2014 |
state | COI Rate Adjustments | Wilmington Savings Fund Society v Phoenix Life and PHL Variable | United States District Court for the District of Delaware | United States District Court for the Southern District of New York | United States District Court for the Southern District of New York | United States District Court for the Southern District of New York | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||
state | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | SEC Cease-and-Desist Order | United States District Court for the District of Delaware | |||||
unnamed_trust | treaty | case | claim | claim | Settled Litigation | Pending Litigation | ||||||
claim | state | claim | ||||||||||
state | ||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Settlement, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $375,000 | $100,000 | ' |
Litigation Settlement, Penalty Per Filing For First Week In Which Filing Is Delinquent | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' |
Litigation Settlement, Penalty Fee For Each Week After One Week Delinquent | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' |
Litigation Settlement, Penalty Fee Multiplier For Number Of Complete Weeks After One Week | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' |
Loss Contingency, Number of Plaintiffs | ' | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Number of Treaties | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Claims Dismissed, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Loss Contingency, Pending Claims, Number | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | 10 |
Loss Contingency, Claims Partially Dismissed, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Loss Contingency, Pending Claims, Number Decertified | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Loss Contingency, New Claims Filed, Number | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' |
Loss Contingencies, Complaints to State Insurance Departments, Number of States | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Number of States Issuing Letters Directing to take Remedial Action | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Number of States to Perform Unclaimed Property Audit | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Policy liability accruals | 40,600,000 | 45,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reinsurance recoverable | $800,000 | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Commitments_Narrative_De
Other Commitments Narrative (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Remaining Commitments | $32.20 |
Remainder for 2013 | 3.7 |
2014 | 14.2 |
2015 | 14.3 |
Unfunded commitments | 231.3 |
Amount of unfunded commitments expected to be funded | 17.7 |
Open Commitments | $160.90 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | 22-May-14 | Mar. 20, 2014 | Dec. 20, 2013 | Jan. 16, 2013 | Dec. 31, 2001 | Dec. 31, 2013 | Feb. 20, 2014 |
Phoenix Life | Phoenix Life | Phoenix Life | Bonds | Bonds | Bonds | Bonds | |
Subsequent Event | Subsequent Event | Subsequent Event | 7.45% Senior Unsecured Bonds | 7.45% Senior Unsecured Bonds | 7.45% Senior Unsecured Bonds | 7.45% Senior Unsecured Bonds | |
Subsequent Event | Subsequent Event | ||||||
consent_solicitation | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Consent Solicitations Of Bondholders | ' | ' | ' | ' | ' | 2 | ' |
Stated interest rate | ' | ' | ' | ' | 7.45% | 7.45% | ' |
Consent solicitation, consents received as a percentage of outstanding principal amount | ' | ' | ' | 65.00% | ' | ' | 72.00% |
Dividends paid to Phoenix | $11.90 | $14.60 | $25 | ' | ' | ' | ' |