Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 11, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | PHOENIX COMPANIES INC/DE | ||
Entity Central Index Key | 1,129,633 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 0.1 | ||
Entity Common Stock, Shares Outstanding (in shares) | 5.8 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES: | |||
Premiums | $ 349.1 | $ 332.1 | $ 351.6 |
Fee income | 543.6 | 545.1 | 550.3 |
Net investment income | 834.9 | 830.9 | 789.7 |
Net realized gains (losses): | |||
Total other-than-temporary impairment (“OTTI”) losses | (20.8) | (7.7) | (7) |
Portion of OTTI losses recognized in other comprehensive income (“OCI”) | (2) | (0.4) | (4.8) |
Net OTTI losses recognized in earnings | (22.8) | (8.1) | (11.8) |
Net realized gains (losses), excluding OTTI losses | (10) | (33.1) | 27.8 |
Net realized gains (losses) | (32.8) | (41.2) | 16 |
Total revenues | 1,694.8 | 1,666.9 | 1,707.6 |
BENEFITS AND EXPENSES: | |||
Policy benefits | 1,186.6 | 1,119.2 | 965.1 |
Policyholder dividends | 211.5 | 244.8 | 235.9 |
Policy acquisition cost amortization | 77.8 | 119.6 | 103.1 |
Interest expense on indebtedness | 28.3 | 28.3 | 28.3 |
Other operating expenses | 349.9 | 350.2 | 337.1 |
Total benefits and expenses | 1,854.1 | 1,862.1 | 1,669.5 |
Income (loss) from continuing operations before income taxes | (159.3) | (195.2) | 38.1 |
Income tax expense (benefit) | (34.3) | 10.5 | 8.5 |
Income (loss) from continuing operations | (125) | (205.7) | 29.6 |
Income (loss) from discontinued operations, net of income taxes | (2) | (3.5) | (2.9) |
Net income (loss) | (127) | (209.2) | 26.7 |
Less: Income (loss) attributable to noncontrolling interests | 6.7 | 4 | 0.7 |
Net income (loss) attributable to The Phoenix Companies, Inc. | (133.7) | (213.2) | 26 |
COMPREHENSIVE INCOME (LOSS): | |||
Net income (loss) attributable to The Phoenix Companies, Inc. | (133.7) | (213.2) | 26 |
Less: Income (loss) attributable to noncontrolling interests | 6.7 | 4 | 0.7 |
Net income (loss) | (127) | (209.2) | 26.7 |
Other comprehensive income (loss) before income taxes: | |||
Unrealized investment gains (losses), net of related offsets | (107.7) | 66.5 | (62.7) |
Net pension liability adjustment | 4.6 | (80.2) | 101 |
Other comprehensive income (loss) before income taxes | (103.1) | (13.7) | 38.3 |
Less: Income tax expense (benefit) related to: | |||
Unrealized investment gains (losses), net of related offsets | (71.3) | 35.7 | (20.5) |
Pension | 0 | 0 | 0 |
Total income tax expense (benefit) | (71.3) | 35.7 | (20.5) |
Other comprehensive income (loss), net of income taxes | (31.8) | (49.4) | 58.8 |
Comprehensive income (loss) | (158.8) | (258.6) | 85.5 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 6.7 | 4 | 0.7 |
Comprehensive income (loss) attributable to The Phoenix Companies, Inc. | $ (165.5) | $ (262.6) | $ 84.8 |
EARNINGS (LOSS) PER SHARE: | |||
Income (loss) from continuing operations - basic (USD per share) | $ (22.90) | $ (36.48) | $ 5.04 |
Income (loss) from continuing operations – diluted (USD per share) | (22.90) | (36.48) | 5.01 |
Income (loss) from discontinued operations – basic (USD per share) | (0.35) | (0.61) | (0.51) |
Income (loss) from discontinued operations – diluted (USD per share) | (0.35) | (0.61) | (0.50) |
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | (23.25) | (37.09) | 4.53 |
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | $ (23.25) | $ (37.09) | $ 4.51 |
Basic weighted-average common shares outstanding (shares) | 5,751 | 5,748 | 5,735 |
Diluted weighted-average common shares outstanding (in shares) | 5,751 | 5,748 | 5,764 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Available-for-sale debt securities, at fair value (cost of $11,993.6 and $11,978.0) | $ 12,190.7 | $ 12,679.3 |
Available-for-sale equity securities, at fair value (cost of $154.6 and $156.0) | 182 | 179.5 |
Short-term investments | 164.8 | 149.7 |
Limited partnerships and other investments | 518.7 | 542.8 |
Policy loans, at unpaid principal balances | 2,382.5 | 2,352.1 |
Derivative instruments | 103.5 | 161.3 |
Fair value investments | 165 | 235.4 |
Total investments | 15,707.2 | 16,300.1 |
Cash and cash equivalents | 627.3 | 450 |
Accrued investment income | 179.2 | 176.7 |
Reinsurance recoverable | 590.7 | 559.1 |
Deferred policy acquisition costs | 941.1 | 848.6 |
Deferred income taxes, net | 105.5 | 34.2 |
Other assets | 361.7 | 311.3 |
Discontinued operations assets | 42.8 | 45.2 |
Separate account assets | 2,536.4 | 3,020.7 |
Total assets | 21,091.9 | 21,745.9 |
LIABILITIES: | ||
Policy liabilities and accruals | 12,342.7 | 12,417.6 |
Policyholder deposit funds | 4,333.2 | 3,955 |
Dividend obligations | 716.8 | 916.8 |
Indebtedness | 378.9 | 378.9 |
Pension and post-employment liabilities | 361.6 | 380 |
Other liabilities | 210.7 | 289.8 |
Discontinued operations liabilities | 37.8 | 40.5 |
Separate account liabilities | 2,536.4 | 3,020.7 |
Total liabilities | $ 20,918.1 | $ 21,399.3 |
COMMITMENTS AND CONTINGENCIES (Notes 21, 22 and 23) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $.01 par value: 5.8 million and 5.8 million shares outstanding | $ 0.1 | $ 0.1 |
Additional paid-in capital | 2,632.9 | 2,632.8 |
Accumulated other comprehensive income (loss) | (266.2) | (234.4) |
Retained earnings (accumulated deficit) | (2,022.7) | (1,889) |
Treasury stock, at cost: 0.7 million and 0.7 million shares | (182.9) | (182.9) |
Total The Phoenix Companies, Inc. stockholders’ equity | 161.2 | 326.6 |
Noncontrolling interests | 12.6 | 20 |
Total stockholders’ equity | 173.8 | 346.6 |
Total liabilities and stockholders’ equity | $ 21,091.9 | $ 21,745.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Available-for-sale debt securities, amortized cost | $ 11,993.6 | $ 11,978 |
Available-for-sale equity securities, at cost | $ 154.6 | $ 156 |
Common stock par value (USD per share) | $ 0.01 | $ 0.01 |
Shares outstanding (shares) | 5,800,000 | 5,800,000 |
Treasury stock (shares) | 700,000 | 700,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income (loss) | $ (133.7) | $ (213.2) | $ 26 |
Net realized gains / losses | 31 | 40.5 | (20.4) |
Policy acquisition costs deferred | (87.4) | (72.9) | (58.4) |
Policy acquisition cost amortization | 77.8 | 119.6 | 103.1 |
Amortization and depreciation | 5.5 | 6 | 8.2 |
Interest credited | 137.4 | 151.5 | 139 |
Equity in earnings of limited partnerships and other investments | (55.1) | (59.7) | (58.9) |
Change in: | |||
Accrued investment income | (112.4) | (109.2) | (86) |
Reinsurance recoverable | (27.7) | 39.1 | (8.4) |
Policy liabilities and accruals | (445.3) | (430.9) | (591.8) |
Dividend obligations | 41.3 | 72.4 | 57.1 |
Pension and post-employment liabilities | (13.8) | (13.3) | (14.1) |
Impact of operating activities of consolidated investment entities, net | 15.6 | (33.8) | (2.1) |
Other operating activities, net | (49.7) | 3.4 | 60.1 |
Cash provided by (used for) operating activities | (616.5) | (500.5) | (446.6) |
Purchases of: | |||
Available-for-sale debt securities | (2,196.9) | (2,272.6) | (2,460.7) |
Available-for-sale equity securities | (22.5) | (53.6) | (59.6) |
Short-term investments | (763.2) | (1,794.4) | (1,559.7) |
Derivative instruments | (35.5) | (62.7) | (101.9) |
Fair value and other investments | (1.3) | (2.7) | (27) |
Sales, repayments and maturities of: | |||
Available-for-sale debt securities | 2,238.3 | 1,651.9 | 2,130.7 |
Available-for-sale equity securities | 19.6 | 21.4 | 13.4 |
Short-term investments | 748.4 | 2,005.9 | 1,909.2 |
Derivative instruments | 21.2 | 96.2 | 49.5 |
Fair value and other investments | 55.1 | 23.8 | 26.6 |
Contributions to limited partnerships and limited liability corporations | (106.1) | (84.2) | (72.4) |
Distributions from limited partnerships and limited liability corporations | 143.4 | 157.1 | 146.8 |
Policy loans, net | 50.4 | 78 | 80.8 |
Impact of investing activities of consolidated investment entities, net | 0 | 0 | 0 |
Other investing activities, net | 0.4 | (8.9) | (10.4) |
Cash provided by (used for) investing activities | 151.3 | (244.8) | 65.3 |
FINANCING ACTIVITIES: | |||
Policyholder deposits | 1,456.4 | 1,457.2 | 1,355 |
Policyholder withdrawals | (1,140.6) | (1,200.6) | (1,140.4) |
Net transfers (to) from separate accounts | 342.7 | 439.4 | 412.9 |
Impact of financing activities of consolidated investment entities, net | (14.2) | 4.1 | 4.5 |
Cash provided by (used for) financing activities | 644.3 | 700.1 | 632 |
Change in cash and cash equivalents | 179.1 | (45.2) | 250.7 |
Change in cash included in discontinued operations assets | (1.8) | (1.2) | (0.7) |
Cash and cash equivalents, beginning of period | 450 | 496.4 | 246.4 |
Cash and cash equivalents, end of period | 627.3 | 450 | 496.4 |
Supplemental Disclosure of Cash Flow Information | |||
Income taxes (paid) refunded | (4.8) | (0.2) | (5.4) |
Interest expense on indebtedness paid | (27.9) | (27.9) | (27.9) |
Non-Cash Transactions During the Period | |||
Investment exchanges | $ 89.4 | $ 93.3 | $ 98.8 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | COMMON STOCK: | ADDITIONAL PAID-IN CAPITAL: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | RETAINED EARNINGS (ACCUMULATED DEFICIT): | TREASURY STOCK, AT COST: | TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO THE PHOENIX COMPANIES, INC.: | NONCONTROLLING INTERESTS: |
Balance, beginning of period at Dec. 31, 2012 | $ 511.4 | $ 0.1 | $ 2,633.1 | $ (243.8) | $ (1,701.8) | $ (182.9) | $ 504.7 | $ 6.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares and compensation expense on stock compensation awards | 0 | |||||||
Other comprehensive income (loss) | 58.8 | 58.8 | ||||||
Treasury shares purchased | 0 | |||||||
Change in stockholders’ equity | 89.9 | 84.8 | ||||||
Net income (loss) attributable to noncontrolling interests | 26.7 | 26 | 0.7 | |||||
Contributions to noncontrolling interests | 4.6 | |||||||
Distributions from noncontrolling interests | (0.2) | |||||||
Balance, end of period at Dec. 31, 2013 | 601.3 | 0.1 | 2,633.1 | (185) | (1,675.8) | (182.9) | 589.5 | 11.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares and compensation expense on stock compensation awards | (0.3) | |||||||
Other comprehensive income (loss) | (49.4) | (49.4) | ||||||
Treasury shares purchased | 0 | |||||||
Change in stockholders’ equity | (254.7) | (262.9) | ||||||
Net income (loss) attributable to noncontrolling interests | (209.2) | (213.2) | 4 | |||||
Contributions to noncontrolling interests | 4.2 | |||||||
Distributions from noncontrolling interests | 0 | |||||||
Balance, end of period at Dec. 31, 2014 | 346.6 | 0.1 | 2,632.8 | (234.4) | (1,889) | (182.9) | 326.6 | 20 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares and compensation expense on stock compensation awards | 0.1 | |||||||
Other comprehensive income (loss) | (31.8) | (31.8) | ||||||
Treasury shares purchased | 0 | |||||||
Change in stockholders’ equity | (172.8) | (165.4) | ||||||
Net income (loss) attributable to noncontrolling interests | (127) | (133.7) | 6.7 | |||||
Contributions to noncontrolling interests | 0.8 | |||||||
Distributions from noncontrolling interests | (14.9) | |||||||
Balance, end of period at Dec. 31, 2015 | $ 173.8 | $ 0.1 | $ 2,632.9 | $ (266.2) | $ (2,022.7) | $ (182.9) | $ 161.2 | $ 12.6 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business The Phoenix Companies, Inc. is a holding company for its insurance and financial services subsidiaries, principally Phoenix Life Insurance Company (“Phoenix Life”) and PHL Variable Insurance Company (“PHL Variable”) that provide life insurance and annuity products to both affluent and middle market consumers. Phoenix Life and PHL Variable, collectively with Phoenix Life and Annuity Company (“PLAC”) and American Phoenix Life and Reassurance Company (“APLAR”), are our Life Companies (collectively, with the holding company, “we,” “our,” “us,” the “Company,” “PNX” or “Phoenix”). Our products are distributed through independent agents and financial advisors. Most of our life insurance in force is permanent life insurance insuring one or more lives and 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. As a result of discussions with its regulators related to the execution of an intercompany reinsurance treaty between Phoenix Life and PHL Variable during the second quarter of 2015, Phoenix de-stacked its insurance company subsidiaries making PHL Variable, PLAC and APLAR direct subsidiaries of the holding company. On September 29, 2015, the Company announced the signing of a definitive agreement in which Nassau Reinsurance Group Holdings L.P. (“Nassau”) has agreed to acquire the Company for $37.50 per share in cash, representing an aggregate purchase price of $217.2 million . Founded in April 2015, Nassau is a privately held insurance and reinsurance business focused on acquiring and operating entities in the life, annuity and long-term care sectors. On December 17, 2015 the merger was approved by Phoenix shareholders. The transaction remains subject to regulatory approvals and the satisfaction of other closing conditions. After completion of the transaction, Nassau will contribute $100 million in new equity capital into the Company. After completion of the transaction, Phoenix will be a privately held, wholly-owned subsidiary of Nassau. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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. Use of estimates In preparing these consolidated 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. Certain of these estimates are particularly sensitive to market conditions and/or volatility in the debt or equity markets which could have a material impact on the consolidated financial statements. Actual results could differ from these estimates. Holding company liquidity The Phoenix Companies, Inc. serves as the holding company for our insurance subsidiaries and does not have any significant operations of its own. As of December 31, 2015 and 2014 , liquidity (cash, short-term investments, available-for-sale debt securities and other near-cash assets, net of contributions payable to subsidiaries) totaled $65.8 million and $78.3 million , respectively. In addition to existing cash and securities, the holding company’s primary source of liquidity consists of dividends from Phoenix Life. Dividends from Phoenix Life are limited under the insurance company laws of New York. See Note 20 to these consolidated financial statements for additional information. As a result of the execution of an intercompany reinsurance treaty between Phoenix Life and PHL Variable during the second quarter of 2015, Phoenix agreed it will not use any future dividends paid by Phoenix Life to meet the operating needs of PHL Variable, including $30.0 million of dividends declared subsequent to June 30, 2015. In 2016 , Phoenix Life is permitted to pay dividends of $37.2 million . During the year ended December 31, 2015 , Phoenix Life declared and paid $59.9 million in dividends. PHL Variable does not have any dividend capacity in 2016 . Our principal needs at the holding company level are debt service, income taxes and certain operating expenses. • We pay interest on senior unsecured bonds. Interest paid on senior unsecured bonds for the years ended December 31, 2015 , 2014 and 2013 was $20.0 million , $20.0 million and $20.0 million , respectively. As of December 31, 2015 , future minimum annual principal payments on senior unsecured bonds are $268.6 million in 2032. See Note 8 to these consolidated financial statements for additional information. • The holding company and its subsidiaries have a tax sharing agreement. The subsidiaries compute their provision for federal income taxes as if they were filing a separate federal income tax return. There are quarterly settlements among the companies representing both the subsidiaries estimated separate company tax liability for the current tax year and any amount that such subsidiaries overpaid to the holding company for a taxable year. As part of the intercompany tax sharing agreement, the holding company is required to hold funds in escrow for the benefit of Phoenix Life in the event Phoenix Life incurs future taxable losses. In accordance with its regulatory obligation, in October 2015, the Company funded the escrow with $76.2 million of assets, including treasury stock, a surplus note issued by PHL Variable and $23.8 million of cash from the holding company. • The holding company pays operating expenses associated with its operation. It has also paid the majority of the expenses associated with prior restatements of the Company’s financial statements. Holding company operating expenses for the years ended December 31, 2015 , 2014 and 2013 were $30.6 million , $102.6 million and $70.7 million , respectively. There are expense sharing arrangements in place among the holding company and its operating subsidiaries. However, given unique circumstances regarding the historical restatements of the Company’s financial statements, management determined it was in the best interest of the Company that the majority of these costs be borne by the holding company. The holding company also provides capital support to its operating subsidiaries. Management targets a minimum Company Action Level risk-based capital (“RBC”) ratio of 200% (Authorized Control Level ratio of 400% ) at PHL Variable. As of December 31, 2015 , PHL Variable had an RBC ratio of 200% , compared with 218% as of December 31, 2014 . As a result of the de-stacking, an existing commitment by Phoenix Life to keep PHL Variable’s capital and surplus at 250% of Authorized Control Level RBC ( 125% Company Action Level) was extinguished. PHL Variable’s statutory capital and surplus reflects the benefit of $33.1 million and $15.0 million of capital contributions in 2015 and 2014 , respectively, and Phoenix may need to make additional capital contributions in the future. The need for additional capital contributions to operating subsidiaries or an inability to reduce expenses at the holding company could constrain the ability of the holding company to meet its debt obligations. Based on management’s review of the holding company’s liquidity position, we believe it can continue to meet its liquidity obligations in the holding company through 2016 and beyond. Adoption of new accounting standards Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In April 2014, the Financial Accounting Standards Board (the “FASB”) issued updated guidance that changes the criteria for reporting discontinued operations and introduces new financial statement 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. This new guidance did not have any impact on the Company’s consolidated financial position, results of operations and 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 new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and 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 periods within those annual periods, beginning after December 15, 2014. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and 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 Financial Accounting Standards Board (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 was effective for interim or annual reporting periods beginning after December 15, 2013. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. 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. This new guidance was effective for interim or annual reporting periods beginning after December 15, 2013. 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 did not have a material impact on the Company’s consolidated financial position, results of operations and 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 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 new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. Accounting standards not yet adopted Leases In February 2016, the FASB issued updated guidance to improve financial reporting about leasing transactions. The guidance requires lessees to recognize the assets and liabilities arising from leases on the balance sheet. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within the annual reporting period. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued updated guidance affecting the accounting for equity investments, financial liabilities under the fair value options, and the presentation and disclosure requirements for financial instruments. In addition, the update clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. This new guidance may impact our ability to consider our existing deferred tax assets realizable. The impact will depend on the composition of the Company’s investment portfolio in the future and changes in fair value of the Company’s investments. For public business entities, the amendments in the update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim period within those annual periods. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The guidance requires that an entity present separately on the face of the income statements, or disclose in the notes, the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to provisional amounts had been recognized as of the acquisition date. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within the annual reporting period. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Disclosures about Short-Duration Contracts In May 2015, the FASB issued guidance which requires enhanced disclosure requirements for insurers relating to short-duration insurance contracts including claims and the unpaid claims liability rollforward to interim periods. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods within the annual reporting period beginning after December 15, 2016. Early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Fair Value Measurement: Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB issued guidance for investments measured at net asset value (“NAV”), as a practical expedient for fair value, to be excluded from the fair value hierarchy. The new guidance requires reporting entities to reconcile the fair value hierarchy disclosure to the balance sheet by disclosing the amount of investments measured using the practical expedient and to make certain disclosures about the nature and risks of those investments. If the NAV is actually at fair value, then a reporting entity would continue to include the investment in the fair value hierarchy and make all required fair value disclosures. For public business entities, the guidance is effective for annual reporting periods beginning after December 31, 2015, including interim reporting periods within the annual reporting period. The new guidance is retrospective to all periods presented and early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Customer’s Accounting for Fees Paid in a Cloud Computing Agreement In April 2015, the FASB issued new guidance on a customer’s accounting for fees paid in a cloud computing arrangement (“CCA”). Under the new guidance, customers will apply the same criteria as vendors to determine whether a CCA contains a software license or is solely a service contract. The new guidance provides guidance on which existing accounting model should be applied. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within the annual reporting period. Early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Retirement Benefits - Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Assets In April 2015, the FASB issued guidance for a practical expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Assets. For an entity with a fiscal year-end that does not coincide with a month-end, the new guidance provides for a practical expedient that permits the entity to measure defined benefit assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. In addition, for a significant event such as a plan amendment, settlement or curtailment, the new guidance provides for a practical expedient that permits the entity to remeasure the defined benefit plan assets and obligations using the month-end that is closest to the date of the significant event. An entity is required to disclose the accounting policy election and the date used to measure the defined benefit assets and obligations in accordance with this new guidance. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods within the annual reporting period. Early adoption is permitted and the new guidance should be applied prospectively. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Interest - Imputation of Interest (Simplifying the Presentation of Debt Issuance Costs) In April 2015, the FASB issued guidance that changes the presentation of debt issuance costs in financial statements. Under the new guidance, a company would present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. The recognition and measurement of debt issuance costs is not affected by the new guidance. For revolving debt arrangements, this guidance allows an entity to continue deferring and presenting such costs as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within the annual reporting period. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Amendments to Consolidation Guidance In February 2015, the FASB issued updated consolidation guidance. The amendments revise existing guidance for when to consolidate variable interest entities (“VIEs”) and general partners’ investments in limited partnerships, end the deferral granted for applying the VIE guidance to certain investment companies, and reduce the number of circumstances where a decision maker’s or service provider’s fee arrangement is deemed to be a variable interest in an entity. The updates also modify consolidation guidance for determining whether limited partnerships are VIEs or voting interest entities. This guidance is effective for years beginning after December 31, 2015, and may be applied fully retrospectively or through a cumulative effect adjustment to retain earnings as of the beginning of the year of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Income Statement - Extraordinary and Unusual Items In January 2015, the FASB issued new guidance regarding extraordinary items which eliminates the U.S. GAAP concept of an extraordinary item. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption is permitted if the guidance is applied as of the beginning of the annual period of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Presentation of Financial Statements - Going Concern In August 2014, the FASB issued guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued guidance allowing (i.e., not requiring) a reporting entity to measure the financial assets and financial liabilities of a consolidated collateralized financing entity, within the scope of the new guidance, based on either the fair value of the financial assets or financial liabilities, whichever is more observable (referred to as a “measurement alternative”). The new guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 for public business entities. Early adoption will be permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. In August 2015, the FASB issued guidance which defers the effective date for Revenue from Contracts with Customers for all entities. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within the annual reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Significant accounting policies Investments Debt and Equity Securities Our debt securities classified as available-for-sale include bonds, structured securities and redeemable preferred stock. These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are reported on our consolidated balance sheets at fair value. Fair value is based on quoted market price, where available. When quoted market prices are not available, we estimate fair value by discounting debt security cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality (private placement debt securities), by quoted market prices of comparable instruments (untraded public debt securities) and by independent pricing sources or internally developed pricing models. We recognize unrealized gains and losses on investments in debt and equity securities that we classify as available-for-sale. We report these unrealized investment gains and losses as a component of OCI. Realized investment gains and losses are recognized on a first in first out basis. Limited Partnerships and Other Investments Limited partnerships including private equity and mezzanine funds, infrastructure funds, hedge funds, joint venture interests and direct equity investments in which we do not have voting control or power to direct activities are recorded using the equity method of accounting. The equity method of accounting requires that the investment be initially recorded at cost and the carrying amount of the investment subsequently adjusted to recognize our share of the earnings or losses. We record our equity in the earnings in net investment income using the most recent financial information received from the partnerships. Recognition of net investment income is generally on a three-month delay due to the timing of the related financial statements. The contributions to and distributions from limited partnerships and other investments are classified as investing activities within the statement of cash flows. The Company routinely evaluates these investments for impairments. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. When an other-than-temporary impairment (“OTTI”) has occurred, the impairment loss is recorded within net investment gains (losses). Other investments also include leveraged lease investments which represent the net amount of the estimated residual value of the lease assets, rental receivables and unearned and deferred income to be allocated over the lease term. Prior to the fourth quarter of 2015, it further included investments in life settlement contracts accounted for under the investment method under which the Company recognizes its initial investment in life settlement contracts at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force comprising mainly life insurance premiums, increase the carrying value of the investment while income on individual life settlement contracts are recognized when the insured dies, at an amount equal to the excess of the contract proceeds over the carrying amount of the contract at that time. Contracts were reviewed annually for indications that the expected future proceeds from the contract would not be sufficient to recover estimated future carrying amount of the contract (current carrying amount for the contract plus anticipated undiscounted future premiums and other capitalizable future costs.) Any such contracts identified are written down to estimated fair value. During the second quarter of 2015, as a result of plans to sell or liquidate the life settlement contracts, the Company recorded the life settlement contracts at fair value. In December 2015, the life settlement contracts were sold. See Note 7 to these consolidated financial statements for additional information. Loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. In a troubled debt restructuring where the Company receives assets in full or partial satisfaction of the debt, any specific valuation allowance is reversed and a direct write down of the loan is recorded for the amount of the allowance and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. Any remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. The consolidated financial statements include investments in limited partnerships, certain of which qualify as VIEs. We consolidate those limited partnerships which were determined to be VIEs when we are the primary beneficiary. See Note 7 to these consolidated financial statements for additional information regarding VIEs. Policy Loans Policy loans are carried at their unpaid principal balances and are collateralized by the cash values of the related policies. The majority of policy loans are at variable interest rates that are reset annually on the policy anniversary. Fair Value Instruments Debt securities held at fair value include securities held for which changes in fair values are recorded in earnings. The securities held at fair value are designated as trading securities, as well as those debt securities for which we have elected the fair value option (“FVO”) and certain available-for-sale structured securities held at fair value. The changes in fair value and any interest income of these securities are reflected in earnings as part of “net investment income.” See Note 12 to these consolidated financial statements for additional disclosures related to these securities. Derivative Instruments We recognize derivative instruments on the consolidated balance sheets at fair value. The derivative contracts are reported as assets in derivative instruments or liabilities in other liabilities on the consolidated balance sheets, excluding embedded derivatives. Embedded derivatives, as discussed below, are recorded on the consolidated balance sheets bifurcated from the associated host contract. The Company economically hedges variability of cash flows to be received or paid related to certain recognized assets and/or liabilities. All changes in the fair value of derivatives, including net receipts and payments, are included in net realized investment gains and losses without consideration of changes in the fair value of the economically associated assets or liabilities. We do not designate the purchased derivatives related to living benefits or index credits as hedges for accounting purposes. Short-Term Investments Short-term investments include securities with a maturity of one year or less but greater than three months at a time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Net Investment Income For asset-backed and f |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance We use reinsurance agreements to limit potential losses, reduce exposure to larger risks and provide capital relief with regard to certain reserves. The amount of risk ceded depends on our evaluation of the specific risk and applicable retention limits. For business sold prior to December 31, 2010, our retention limit on any one life is $10 million for single life and joint first-to-die policies and $12 million for joint last-to-die policies. Beginning January 1, 2011, our retention limit on new business is $5 million for single life and joint first-to-die policies and $6 million for second-to-die policies. We also assume reinsurance from other insurers. Our reinsurance program cedes various types of risks to other reinsurers primarily under yearly renewable term and coinsurance agreements. Yearly renewable term and coinsurance agreements result in passing all or a portion of the risk to the reinsurer. Under coinsurance agreements on our traditional and term insurance policies, the reinsurer receives a proportionate amount of the premiums less an allowance for commissions and expenses and is liable for a corresponding proportionate amount of all benefit payments. Under our yearly renewable term agreements, the ceded premium represents a charge for the death benefit coverage. Effective October 1, 2009, PHL Variable and Phoenix Life and Annuity Company coinsured all the benefit risks, net of existing reinsurance, on their term insurance business in force. Trust agreements and irrevocable letters of credit aggregating $46.7 million at December 31, 2015 have been arranged with commercial banks in our favor to collateralize the ceded reserves. This includes $4.4 million of irrevocable letters of credit related to our discontinued group accident and health reinsurance operations. We assume and cede business related to our discontinued group accident and health reinsurance operations. While we are not writing any new contracts, we are contractually obligated to continue to assume and cede premiums related to existing contracts. See Note 22 to these consolidated financial statements for additional information. 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 $590.7 million and $559.1 million as of December 31, 2015 and 2014 , respectively. Other reinsurance activity is shown below. Direct Business and Reinsurance in Continuing Operations: For the years ended December 31, ($ in millions) 2015 2014 2013 Direct premiums $ 454.1 $ 473.2 $ 501.8 Premiums assumed 8.7 9.7 11.8 Premiums ceded [1] (113.7 ) (150.8 ) (162.0 ) Premiums $ 349.1 $ 332.1 $ 351.6 Percentage of amount assumed to net premiums 2.5% 2.9% 3.4% Direct policy benefits incurred $ 1,020.8 $ 785.3 $ 819.1 Policy benefits assumed 41.9 42.5 22.7 Policy benefits ceded (235.1 ) (241.9 ) (265.4 ) Premiums paid [2] 97.3 95.8 83.1 Policy benefits [3] $ 924.9 $ 681.7 $ 659.5 Direct life insurance in force $ 91,469.3 $ 95,811.4 $ 102,405.6 Life insurance in force assumed 1,771.1 1,721.0 1,678.2 Life insurance in force ceded (51,064.8 ) (58,022.4 ) (62,553.8 ) Life insurance in force $ 42,175.6 $ 39,510.0 $ 41,530.0 Percentage of amount assumed to net insurance in force 4.2% 4.4% 4.0% ——————— [1] Primarily represents premiums ceded to reinsurers related to traditional whole 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 consolidated 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 $261.7 million , $437.5 million and $305.6 million , net of reinsurance, for the years ended December 31, 2015 , 2014 and 2013 , 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 December 31, 2015 , five major reinsurance companies account for approximately 68% of the reinsurance recoverable. |
Demutualization and Closed Bloc
Demutualization and Closed Block | 12 Months Ended |
Dec. 31, 2015 | |
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 PNX common stock, 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 December 31, 2015 and 2014 , 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 December 31, ($ in millions) 2015 2014 Inception Available-for-sale debt securities $ 5,285.4 $ 5,877.0 $ 4,773.1 Available-for-sale equity securities 90.1 91.7 — Short-term investments 25.0 — — Limited partnerships and other investments 352.7 343.4 399.0 Policy loans 1,121.0 1,159.1 1,380.0 Fair value investments 53.1 59.8 — Total closed block investments 6,927.3 7,531.0 6,552.1 Cash and cash equivalents 290.8 89.6 — Accrued investment income 75.5 80.7 106.8 Reinsurance recoverable 30.0 19.1 — Deferred income taxes, net 278.7 290.3 389.4 Other closed block assets 53.7 67.4 41.4 Total closed block assets 7,656.0 8,078.1 7,089.7 Policy liabilities and accruals 7,816.5 8,058.2 8,301.7 Policyholder dividends payable 191.1 201.9 325.1 Policy dividend obligation 525.5 714.8 — Other closed block liabilities 46.6 48.0 12.3 Total closed block liabilities 8,579.7 9,022.9 8,639.1 Excess of closed block liabilities over closed block assets [1] 923.7 944.8 $ 1,549.4 Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests (8.1 ) (11.8 ) Excess of closed block liabilities over closed block assets attributable to The Phoenix Companies, Inc. $ 931.8 $ 956.6 ——————— [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 Policyholder Dividend Obligations: For the years ended December 31, ($ in millions) 2015 2014 2013 Closed block revenues Premiums $ 309.2 $ 301.8 $ 317.8 Net investment income 395.0 411.1 409.6 Net realized gains (losses) 1.0 12.8 16.6 Total revenues 705.2 725.7 744.0 Policy benefits 447.3 438.4 464.5 Other operating expenses 3.7 2.7 5.3 Total benefits and expenses 451.0 441.1 469.8 Closed block contribution to income before dividends and income taxes 254.2 284.6 274.2 Policyholder dividends (212.2 ) (244.6 ) (235.7 ) Closed block contribution to income before income taxes 42.0 40.0 38.5 Applicable income tax expense 13.5 13.3 13.4 Closed block contribution to income 28.5 26.7 25.1 Less: Closed block contribution to income attributable to noncontrolling interests 3.5 2.0 0.3 Closed block contribution to income attributable to The Phoenix Companies, Inc. $ 25.0 $ 24.7 $ 24.8 Policyholder dividend obligation Policyholder dividends recorded through earnings $ 212.2 $ 244.6 $ 235.7 Policyholder dividends recorded through OCI (241.4 ) 138.8 (308.4 ) Additions to (reductions of) policyholder dividend liabilities (29.2 ) 383.4 (72.7 ) Policyholder dividends paid (170.9 ) (172.2 ) (178.6 ) Increase (decrease) in policyholder dividend liabilities (200.1 ) 211.2 (251.3 ) Policyholder dividend liabilities, beginning of period 916.7 705.5 956.8 Policyholder dividend liabilities, end of period 716.6 916.7 705.5 Policyholder dividends payable, end of period (191.1 ) (201.9 ) (207.8 ) Policyholder dividend obligation, end of period $ 525.5 $ 714.8 $ 497.7 The policyholder dividend obligation includes approximately $329.3 million and $277.9 million , respectively, for cumulative closed block earnings in excess of expected amounts calculated at the date of demutualization as of December 31, 2015 and 2014 , 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 December 31, 2015 and 2014 , the policyholder dividend obligation also includes $196.2 million and $436.9 million , respectively, of net unrealized gains on investments supporting the closed block liabilities. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The balances of and changes in DAC as of and for the years ended December 31, are as follows: Changes in Deferred Policy Acquisition Costs: For the years ended December 31, ($ in millions) 2015 2014 2013 Balance, beginning of period $ 848.6 $ 947.8 $ 898.1 Policy acquisition costs deferred 87.4 72.9 58.4 Costs amortized to expenses: Recurring costs (86.6 ) (129.5 ) (117.9 ) Assumption unlocking 9.7 (4.4 ) 25.4 Realized investment gains (losses) (0.9 ) 14.3 (10.6 ) Offsets to net unrealized investment gains or losses included in AOCI 82.9 (52.5 ) 94.4 Balance, end of period $ 941.1 $ 848.6 $ 947.8 During the years ended December 31, 2015 , 2014 and 2013 , deferred expenses primarily consisted of third-party commissions related to fixed indexed annuity sales. |
Sales Inducements
Sales Inducements | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Sales Inducements [Abstract] | |
Sales Inducements | Sales Inducements The balances of and changes in sales inducements as of and for the years ended December 31, are as follows: Changes in Deferred Sales Inducement Activity: For the years ended December 31, ($ in millions) 2015 2014 2013 Balance, beginning of period $ 79.4 $ 77.4 $ 63.9 Sales inducements deferred 13.4 17.5 10.6 Amortization charged to income (9.6 ) (8.0 ) (8.5 ) Offsets to net unrealized investment gains or losses included in AOCI 7.9 (7.5 ) 11.4 Balance, end of period $ 91.1 $ 79.4 $ 77.4 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. Assets with fair value and carrying value of $2.8 billion and $2.6 billion at December 31, 2015 and 2014 , respectively, supporting fixed indexed annuities are maintained in accounts that are legally segregated from the other assets of the Company, but policyholders do not direct the investment of those assets and the investment performance does not pass through to the policyholders. These assets supporting fixed indexed annuity contracts are reported within the respective investment line items on the consolidated balance sheets. Separate Account Investments of Account Balances of Variable Annuity Contracts with Insurance Guarantees: As of December 31, ($ in millions) 2015 2014 Debt securities $ 300.5 $ 375.9 Equity funds 1,325.6 1,638.6 Other 43.7 49.9 Total $ 1,669.8 $ 2,064.4 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 on our consolidated statements of operations 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: For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 21.4 $ 17.1 Incurred 0.9 (0.9 ) Paid (2.7 ) (0.6 ) Assumption unlocking 0.6 (6.7 ) Change due to net unrealized gains or losses included in AOCI — — Balance, end of period $ 20.2 $ 8.9 Changes in Guaranteed Insurance Benefit For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 22.7 $ 9.8 Incurred 1.8 2.1 Paid (3.7 ) (0.2 ) Assumption unlocking 0.5 5.4 Change due to net unrealized gains or losses included in AOCI 0.1 — Balance, end of period $ 21.4 $ 17.1 Changes in Guaranteed Insurance Benefit For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 15.9 $ 21.7 Incurred 2.1 (3.6 ) Paid (3.7 ) — Assumption unlocking 8.4 (8.2 ) Change due to net unrealized gains or losses included in AOCI — (0.1 ) Balance, end of period $ 22.7 $ 9.8 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: GMDB and GMIB Benefits by Type: December 31, 2015 ($ in millions) Account Value NAR before Reinsurance NAR after Reinsurance Average Attained Age of Annuitant GMDB return of premium $ 527.5 $ 1.7 $ 1.7 64 GMDB step up 1,453.7 146.5 47.7 65 GMDB earnings enhancement benefit (“EEB”) 24.0 2.6 2.6 65 GMDB greater of annual step up and roll up 19.6 6.1 6.1 70 Total GMDB at December 31, 2015 2,024.8 $ 156.9 $ 58.1 Less: General account value with GMDB 360.8 Subtotal separate account liabilities with GMDB 1,664.0 Separate account liabilities without GMDB 872.4 Total separate account liabilities $ 2,536.4 GMIB [1] at December 31, 2015 $ 253.8 66 GMDB and GMIB Benefits by Type: December 31, 2014 ($ in millions) Account Value NAR before Reinsurance NAR after Reinsurance Average Attained Age of Annuitant GMDB return of premium $ 661.5 $ 1.6 $ 1.6 63 GMDB step up 1,723.2 112.2 13.4 64 GMDB earnings enhancement benefit (“EEB”) 29.1 — — 65 GMDB greater of annual step up and roll up 22.7 4.8 4.8 69 Total GMDB at December 31, 2014 2,436.5 $ 118.6 $ 19.8 Less: General account value with GMDB 378.6 Subtotal separate account liabilities with GMDB 2,057.9 Separate account liabilities without GMDB 962.8 Total separate account liabilities $ 3,020.7 GMIB [1] at December 31, 2014 $ 319.6 65 ——————— [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 to GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. Return of Premium: The death benefit is the greater of current account value or premiums paid (less any adjusted partial withdrawals). Step Up: The death benefit is the greater of current account value, premiums paid (less any adjusted partial withdrawals) or the annual step up amount prior to the oldest original owner attaining a certain age. On and after the oldest original owner attains that age, the death benefit is the greater of current account value or the death benefit at the end of the contract year prior to the oldest original owner’s attaining that age plus premium payments (less any adjusted partial withdrawals) made since that date. Earnings Enhancement Benefit: The death benefit is the greater of the premiums paid (less any adjusted partial withdrawals) or the current account value plus the EEB. The EEB is an additional amount designed to reduce the impact of taxes associated with distributing contract gains upon death. Greater of Annual Step Up and Annual Roll Up: The death benefit is the greatest of premium payments (less any adjusted partial withdrawals), the annual step up amount, the annual roll up amount or the current account value prior to the oldest original owner attaining age 81 . On and after the oldest original owner attained age 81 , the death benefit is the greater of current account value or the death benefit at the end of the contract year prior to the oldest original owner’s attained age of 81 plus premium payments (less any adjusted partial withdrawals) made since that date. GMIB : The benefit is a series of monthly fixed annuity payments paid upon election of the rider. The monthly benefit is based on the greater of the sum of premiums (less any adjusted partial withdrawals) accumulated at an effective annual rate on the exercise date or 200% of the premiums paid (less any adjusted partial withdrawals) and a set of annuity payment rates that vary by benefit type and election age. 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 generally 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 GMWB and GMDB ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 147.0 $ 85.4 $ 102.1 Incurred 54.1 33.4 60.8 Paid (0.4 ) (0.3 ) (0.3 ) Assumption unlocking (5.1 ) (7.4 ) (18.7 ) Change due to net unrealized gains or losses included in AOCI (42.8 ) 35.9 (58.5 ) Balance, end of period $ 152.8 $ 147.0 $ 85.4 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 generally consistent with those used for amortizing DAC. Changes in Guaranteed Liability Balances: Universal Life Secondary Guarantees ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 195.8 $ 170.6 $ 138.5 Incurred 45.5 39.9 37.9 Paid (27.9 ) (15.3 ) (14.3 ) Assumption unlocking 0.7 (1.6 ) 10.9 Change due to net unrealized gains or losses included in AOCI (4.0 ) 2.2 (2.4 ) Balance, end of period $ 210.1 $ 195.8 $ 170.6 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 generally consistent with those used for amortizing DAC. Changes in Additional Liability Balances: Universal Life Profits Followed by Losses ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 351.5 $ 249.1 $ 311.7 Incurred 31.5 106.4 66.2 Assumption unlocking 19.7 (13.0 ) (129.9 ) Change due to net unrealized gains or losses included in AOCI (12.1 ) 9.0 1.1 Balance, end of period $ 390.6 $ 351.5 $ 249.1 Embedded derivatives Variable annuity embedded derivatives Certain separate account variable products may contain a GMWB, GMAB and/or COMBO rider. These features are accounted for as embedded derivatives as described below. Embedded Derivatives Non-Insurance Guaranteed Product Features: As of December 31, 2015 ($ in millions) Account Value Average Attained Age of Annuitant GMWB $ 385.1 66 GMAB 223.5 60 COMBO 4.9 65 Balance, end of period $ 613.5 Embedded Derivatives Non-Insurance Guaranteed Product Features: As of December 31, 2014 ($ in millions) Account Value Average Attained Age of Annuitant GMWB $ 496.8 65 GMAB 315.6 59 COMBO 7.1 65 Balance, end of period $ 819.5 The GMWB rider guarantees the contract owner a minimum amount of withdrawals and benefit payments over time, regardless of the investment performance of the contract, subject to an annual limit. Optional resets are available. In addition, these contracts have a feature that allows the contract owner to receive the guaranteed annual withdrawal amount for as long as they are alive. The GMAB rider provides the contract owner with a minimum accumulation of the contract owner’s purchase payments deposited within a specific time period, adjusted for withdrawals, after a specified amount of time determined at the time of issuance of the variable annuity contract. The COMBO rider includes either the GMAB or GMWB rider as well as the GMDB rider at the contract owner’s option. 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 operations 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. Embedded Derivative Liabilities: As of December 31, ($ in millions) 2015 2014 GMWB $ 9.0 $ 7.3 GMAB 0.2 (0.3 ) COMBO (0.1 ) (0.2 ) Total embedded derivative liabilities $ 9.1 $ 6.8 There were no benefit payments made for the GMWB and GMAB during 2015 and 2014 . 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. These index options are 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 deposit funds within the consolidated balance sheets with changes in fair value recorded in realized investment gains, in the consolidated statements of operations and comprehensive income. The fair value of these index options is calculated using the budget method. See Note 12 to these consolidated 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 $156.8 million and $153.9 million as of December 31, 2015 and 2014 , respectively. In order to manage the risk associated with these equity indexed-crediting features, we hedge using equity index options. See Note 11 to these consolidated 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 operations and comprehensive income. Embedded derivatives gains and (losses) recognized in earnings are $(3.1) million , $(45.9) million and $12.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Investing Activities
Investing Activities | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investing Activities | Investing Activities Debt and equity securities The following tables present the debt and equity securities available-for-sale by sector held at December 31, 2015 and 2014 , respectively. The unrealized loss amounts presented below include the non-credit loss component of OTTI losses. We classify these investments into various sectors in line with industry conventions. Fair Value and Cost of Securities: As of December 31, 2015 ($ in millions) Amortized Cost Gross Unrealized Gains [1] Gross Unrealized Losses [1] Fair Value OTTI Recognized in AOCI [2] U.S. government and agency $ 542.0 $ 48.2 $ (0.6 ) $ 589.6 $ — State and political subdivision 510.4 33.7 (6.7 ) 537.4 (1.1 ) Foreign government 224.0 20.8 (1.9 ) 242.9 — Corporate 8,295.0 311.3 (264.1 ) 8,342.2 (6.3 ) Commercial mortgage-backed (“CMBS”) 656.6 30.4 (2.9 ) 684.1 — Residential mortgage-backed (“RMBS”) 1,213.8 45.1 (12.7 ) 1,246.2 (25.4 ) Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) 316.3 1.3 (8.1 ) 309.5 (4.5 ) Other asset-backed (“ABS”) 235.5 7.7 (4.4 ) 238.8 (0.6 ) Available-for-sale debt securities $ 11,993.6 $ 498.5 $ (301.4 ) $ 12,190.7 $ (37.9 ) Amounts applicable to the closed block $ 5,102.1 $ 293.4 $ (110.1 ) $ 5,285.4 $ (8.8 ) Available-for-sale equity securities $ 154.6 $ 28.5 $ (1.1 ) $ 182.0 $ — Amounts applicable to the closed block $ 77.2 $ 13.6 $ (0.7 ) $ 90.1 $ — ——————— [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: As of December 31, 2014 ($ in millions) Amortized Cost Gross Unrealized Gains [1] Gross Unrealized Losses [1] Fair Value OTTI Recognized in AOCI [2] U.S. government and agency $ 388.3 $ 55.2 $ (0.1 ) $ 443.4 $ — State and political subdivision 518.3 42.1 (2.5 ) 557.9 (1.1 ) Foreign government 205.8 26.5 (1.4 ) 230.9 — Corporate 7,942.7 530.0 (74.6 ) 8,398.1 (8.3 ) CMBS 602.9 48.4 (0.1 ) 651.2 (1.2 ) RMBS 1,862.5 81.6 (11.9 ) 1,932.2 (25.5 ) CDO/CLO 197.5 2.7 (3.3 ) 196.9 (13.9 ) Other ABS 260.0 13.4 (4.7 ) 268.7 (1.8 ) Available-for-sale debt securities $ 11,978.0 $ 799.9 $ (98.6 ) $ 12,679.3 $ (51.8 ) Amounts applicable to the closed block $ 5,451.3 $ 458.1 $ (32.4 ) $ 5,877.0 $ (14.7 ) Available-for-sale equity securities $ 156.0 $ 25.1 $ (1.6 ) $ 179.5 $ — Amounts applicable to the closed block $ 80.5 $ 12.3 $ (1.1 ) $ 91.7 $ — ——————— [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: As of December 31, 2015 ($ in millions) Amortized Cost Fair Value Due in one year or less $ 464.3 $ 470.3 Due after one year through five years 1,868.9 1,932.2 Due after five years through ten years 3,603.2 3,563.0 Due after ten years 3,635.0 3,746.6 CMBS/RMBS/ABS/CDO/CLO [1] 2,422.2 2,478.6 Total $ 11,993.6 $ 12,190.7 ——————— [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 December 31, 2015 , 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: As of December 31, ($ in millions) 2015 2014 2013 Debt securities, available-for-sale Proceeds from sales $ 1,021.4 $ 446.1 $ 532.2 Proceeds from maturities/repayments 1,183.3 1,225.3 1,544.0 Gross investment gains from sales, prepayments and maturities 42.5 41.6 45.1 Gross investment losses from sales and maturities (4.7 ) (17.6 ) (2.2 ) Equity securities, available-for-sale Proceeds from sales $ 16.8 $ 24.2 $ 12.7 Gross investment gains from sales 1.7 10.4 4.2 Gross investment losses from sales — (1.0 ) (3.8 ) Aging of Temporarily Impaired Securities: As of December 31, 2015 ($ in millions) Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Debt Securities U.S. government and agency $ 73.8 $ (0.6 ) $ 0.9 $ — $ 74.7 $ (0.6 ) State and political subdivision 62.1 (4.1 ) 36.5 (2.6 ) 98.6 (6.7 ) Foreign government 26.0 (1.9 ) — — 26.0 (1.9 ) Corporate 2,499.3 (135.5 ) 545.2 (128.6 ) 3,044.5 (264.1 ) CMBS 131.7 (2.9 ) 2.3 — 134.0 (2.9 ) RMBS 138.0 (1.6 ) 174.2 (11.1 ) 312.2 (12.7 ) CDO/CLO 207.4 (4.4 ) 80.7 (3.7 ) 288.1 (8.1 ) Other ABS 39.0 (0.2 ) 7.2 (4.2 ) 46.2 (4.4 ) Debt securities 3,177.3 (151.2 ) 847.0 (150.2 ) 4,024.3 (301.4 ) Equity securities 4.1 (1.1 ) 2.6 — 6.7 (1.1 ) Total temporarily impaired securities $ 3,181.4 $ (152.3 ) $ 849.6 $ (150.2 ) $ 4,031.0 $ (302.5 ) Amounts inside the closed block $ 963.9 $ (54.1 ) $ 321.6 $ (56.7 ) $ 1,285.5 $ (110.8 ) Amounts outside the closed block $ 2,217.5 $ (98.2 ) $ 528.0 $ (93.5 ) $ 2,745.5 $ (191.7 ) Debt securities outside the closed block that are below investment grade $ 120.5 $ (14.6 ) $ 77.3 $ (21.8 ) $ 197.8 $ (36.4 ) Number of securities 627 178 805 Unrealized losses on debt securities outside the closed block and inside the closed block with a fair value depressed by more than 20% of amortized cost totaled $85.1 million and $48.4 million , respectively, at December 31, 2015 , of which $ 30.4 million and $1.7 million , respectively, were depressed by more than 20% of amortized cost for more than 12 months. As of December 31, 2015 , available-for-sale securities in an unrealized loss position for over 12 months consisted of 172 debt securities and 6 equity securities. These debt securities primarily relate to corporate securities, RMBS and other ABS, which have depressed values due primarily to an increase in interest rates and credit spreads since the purchase of these securities. Unrealized losses were not recognized in earnings on these debt securities since the Company neither intends to sell the securities nor do we believe that it is more likely than not that it will be required to sell these securities before recovery of their amortized cost basis. Additionally, based on a security-by-security analysis, we expect to recover the entire amortized cost basis of these securities. In our evaluation of each security, management considers the actual recovery periods for these securities in previous periods of broad market declines. For securities with significant declines, individual security level analysis was performed, which considered any credit enhancements, expectations of defaults on underlying collateral and other available market data, including industry analyst reports and forecasts. Similarly, for equity securities in an unrealized loss position for greater than 12 months, management performed an analysis on a security-by-security basis. Although there may be sustained losses for greater than 12 months on these securities, additional information was obtained related to company performance which did not indicate that the additional losses were other-than-temporary. Aging of Temporarily Impaired Securities: As of December 31, 2014 ($ in millions) Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Debt Securities U.S. government and agency $ — $ — $ 2.7 $ (0.1 ) $ 2.7 $ (0.1 ) State and political subdivision 11.6 (0.6 ) 31.1 (1.9 ) 42.7 (2.5 ) Foreign government 15.7 (1.4 ) — — 15.7 (1.4 ) Corporate 643.0 (23.5 ) 654.3 (51.1 ) 1,297.3 (74.6 ) CMBS 12.6 — 10.9 (0.1 ) 23.5 (0.1 ) RMBS 8.4 (0.2 ) 226.7 (11.7 ) 235.1 (11.9 ) CDO/CLO 57.9 (0.5 ) 96.3 (2.8 ) 154.2 (3.3 ) Other ABS 13.8 (0.1 ) 16.0 (4.6 ) 29.8 (4.7 ) Debt securities 763.0 (26.3 ) 1,038.0 (72.3 ) 1,801.0 (98.6 ) Equity securities 5.6 (0.7 ) 15.2 (0.9 ) 20.8 (1.6 ) Total temporarily impaired securities $ 768.6 $ (27.0 ) $ 1,053.2 $ (73.2 ) $ 1,821.8 $ (100.2 ) Amounts inside the closed block $ 266.8 $ (11.7 ) $ 387.8 $ (21.8 ) $ 654.6 $ (33.5 ) Amounts outside the closed block $ 501.8 $ (15.3 ) $ 665.4 $ (51.4 ) $ 1,167.2 $ (66.7 ) Debt securities outside the closed block that are below investment grade $ 84.2 $ (4.1 ) $ 50.4 $ (6.6 ) $ 134.6 $ (10.7 ) Number of securities 158 211 369 Unrealized losses on below-investment-grade debt securities outside the closed block and inside the closed block with a fair value depressed by more than 20% of amortized cost totaled $3.2 million and $1.7 million , respectively, at December 31, 2014 , of which $2.1 million and $0.1 million , respectively, were depressed by more than 20% of amortized cost for more than 12 months. As of December 31, 2014 , available-for-sale securities in an unrealized loss position for over 12 months consisted of 201 debt securities and 10 equity securities. These debt securities primarily relate to corporate securities, RMBS and other ABS, 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 was performed, which considered 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 performed an analysis on a security-by-security basis. Although there may be sustained losses for greater than 12 months on these securities, additional information was obtained related to company performance which did not indicate that the additional losses were 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 December 31, 2015 , 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 for available-for-sale debt and equity securities totaled $22.8 million in 2015 , $8.1 million in 2014 and $11.8 million in 2013 . The impairments were driven primarily by deterioration in issuer credit and liquidity metrics, and business outlook. The following table presents a roll-forward of pre-tax credit losses recognized in earnings related to available-for-sale debt securities for which a portion of the OTTI was recognized in OCI. Credit Losses Recognized in Earnings on Available-for-Sale Debt Securities for which a Portion of the OTTI Loss was Recognized in OCI: As of December 31, ($ in millions) 2015 2014 2013 Balance, beginning of period $ (52.4 ) $ (71.4 ) $ (72.6 ) Add: Credit losses on securities not previously impaired [1] (3.4 ) — (1.1 ) Add: Credit losses on securities previously impaired [1] (2.3 ) — (4.1 ) Less: Credit losses on securities impaired due to intent to sell — — — Less: Credit losses on securities sold 12.5 19.0 6.4 Less: Increases in cash flows expected on previously impaired securities — — — Balance, end of period $ (45.6 ) $ (52.4 ) $ (71.4 ) ——————— [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 consolidated statements of operations and comprehensive income. Limited partnerships and other investments Limited Partnerships and Other Investments: As of December 31, ($ in millions) 2015 2014 Limited partnerships Private equity funds $ 257.0 $ 241.1 Mezzanine funds 159.6 162.4 Infrastructure funds 35.8 38.9 Hedge funds 9.9 10.7 Mortgage and real estate funds 4.6 3.7 Leveraged leases 4.7 11.8 Direct equity investments 44.9 49.6 Life settlements — 22.4 Other alternative assets 2.2 2.2 Limited partnerships and other investments $ 518.7 $ 542.8 Amounts applicable to the closed block $ 352.7 $ 343.4 Equity method investees The Company uses equity method accounting when it has more than a minor interest or influence of the partnership’s or limited liability company’s (“LLCs”) operations but does not have a controlling interest. Equity method income is recognized as earned by the investee. Management views the information reported from the underlying funds as the best information available to record its investments. Further, management is in direct communication with the fund managers to ensure accuracy of ending capital balances. The following tables present the aggregated summarized financial information of certain equity method investees in limited partnerships and LLCs. For all three periods, the equity in earnings that we record through net investment income of these equity method investees in aggregate exceeds 10% of the Company’s income from continuing operations before income taxes. Aggregated Summarized Balance Sheet Information of Equity Method Investees: As of December 31, ($ in millions) 2015 2014 Total assets $ 53,961.0 $ 58,694.1 Total liabilities $ 2,165.3 $ 1,630.2 Aggregated Net Investment Income: For the years ended December 31, ($ in millions) 2015 2014 2013 Total investment revenues $ 2,386.2 $ 2,329.9 $ 2,759.7 Net income $ 5,391.6 $ 5,869.2 $ 9,297.3 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. Leveraged leases The Company records its investment in a leveraged lease net of the nonrecourse debt. The Company recognizes income on the leveraged leases by applying the estimated rate of return to the net investment in the lease. The Company regularly reviews the estimated residual values and, if necessary, impairs them to expected values. Investment in leveraged leases, included in limited partnerships and other investments, consisted of the following: Investment in Leveraged Leases: ($ in millions) 2015 2014 Rental receivables, net $ 2.1 $ 4.9 Estimated residual values 3.0 7.3 Unearned income (0.4 ) (0.4 ) Investment in leveraged leases $ 4.7 $ 11.8 Rental receivables are generally due in periodic installments. The payments are made semi-annually and range from three to five years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or non-performing, which is assessed at least annually. The Company defines non-performing rental receivables as those that are 90 days or more past due. At December 31, 2015 and 2014 , all rental receivables were performing. The deferred income tax liability related to leveraged leases was $6.2 million and $9.5 million at December 31, 2015 and 2014 , respectively. Direct equity investments Direct equity investments are equity interests in LLCs entered into on a co-investment basis with sponsors of private equity funds for strategic and capital appreciation purposes and are accounted for under the equity method. The Company records its share of earnings on a three-month delay when timely financial information is not available and the delivery of investee’s financial reporting occurs after the end of the current reporting period. Further, management has open communication with each fund manager and, to the extent financial information is available, receives quarterly statements from the underlying funds. Management also performed an analysis on the funds’ financial statements to assess reasonableness of information provided by third parties. Income recognized from our other direct equity investments was $(4.0) million , $7.8 million and $7.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. We consolidate those direct equity investments which were determined to be VIE’s when we are the primary beneficiary. Any future investment in these structures is discretionary. The following table presents the carrying value and change in investment balance of non-consolidated direct equity investments: Carrying Value and Change in Investment Balance of Non-Consolidated Direct Equity Investments: ($ in millions) Balance as of December 31, 2013 $ 44.5 Net contributions (distributions) (2.7 ) Net income (loss) 7.8 Balance as of December 31, 2014 49.6 Net contributions (distributions) (0.7 ) Net income (loss) (4.0 ) Balance as of December 31, 2015 $ 44.9 Life settlements During 2015 , 2014 and 2013 , income (losses) recognized on life settlement contracts were $0 , $0 and $0.7 million , respectively. These amounts are included in net investment income in the consolidated statements of operations and comprehensive income. During the second quarter of 2015, as a result of plans to sell or liquidate the life settlement contracts, the Company recorded the life settlement contracts at fair value. The initial reduction of carrying value to fair value and subsequent changes in fair value recorded through income resulted in a loss of $4.9 million for the year ended December 31, 2015 . During December 2015, the Company sold all of its life settlement contracts to an unrelated third party for a purchase price, net of related costs, of $11.4 million . The transaction resulted in a realized loss of $7.1 million . Prior to the Company’s plans to sell the life settlement contracts they were accounted for under the investment method and monitored for impairment on a contract-by-contract basis annually. An investment in a life settlement contract is considered impaired if the undiscounted cash flows from the expected proceeds from the insurance policy are less than the carrying amount of the investment plus the expected costs to keep the policy in force. If an impairment loss is recognized, the investment is written down to fair value. Anticipated policy cash flows are based on the Company’s latest mortality assumptions. Impairment charges on life settlement contracts included in net realized capital gains (losses) totaled $0 , $0 and $0 in 2015 , 2014 and 2013 , respectively. Statutory deposits Pursuant to certain statutory requirements, as of December 31, 2015 and 2014 , our Life Companies had on deposit securities with a fair value of $29.1 million and $30.5 million , respectively, in insurance department special deposit accounts. Our Life Companies are not permitted to remove the securities from these accounts without approval of the regulatory authority. Net investment income Net investment income is comprised primarily of interest income, including amortization of premiums and accretion of discounts, based on yields which are changed due to expectations in projected cash flows, dividend income from common and preferred stock, gains and losses on securities measured at fair value and earnings from investments accounted for under equity method accounting. Sources of Net Investment Income: For the years ended December 31, ($ in millions) 2015 2014 2013 Debt securities [1] $ 595.1 $ 581.6 $ 565.0 Equity securities 6.9 9.2 7.2 Limited partnerships and other investments 58.1 65.3 58.3 Policy loans 170.7 167.4 160.0 Fair value investments 30.3 25.4 14.1 Total investment income 861.1 848.9 804.6 Less: Discontinued operations 1.4 1.1 1.3 Less: Investment expenses 24.8 16.9 13.6 Net investment income $ 834.9 $ 830.9 $ 789.7 Amounts applicable to the closed block $ 395.0 $ 411.1 $ 409.6 ——————— [1] Includes net investment income on short-term investments. Net realized gains (losses) Sources and Types of Net Realized Gains (Losses): For the years ended December 31, ($ in millions) 2015 2014 2013 Total other-than-temporary debt impairments $ (12.0 ) $ (5.6 ) $ (7.0 ) Portion of losses recognized in OCI (2.0 ) (0.4 ) (4.8 ) Net debt impairments recognized in earnings $ (14.0 ) $ (6.0 ) $ (11.8 ) Debt security impairments: U.S. government and agency $ — $ — $ — State and political subdivision — — — Foreign government — — — Corporate (13.8 ) (6.0 ) (3.8 ) CMBS — — (2.7 ) RMBS (0.2 ) — (4.3 ) CDO/CLO — — (1.0 ) Other ABS — — — Net debt security impairments (14.0 ) (6.0 ) (11.8 ) Equity security impairments (8.8 ) (2.1 ) — Limited partnerships and other investment impairments — — — Impairment losses (22.8 ) (8.1 ) (11.8 ) Debt security transaction gains 42.5 41.8 45.3 Debt security transaction losses (5.0 ) (17.7 ) (2.2 ) Equity security transaction gains 1.7 10.4 4.2 Equity security transaction losses — (1.0 ) (3.8 ) Limited partnerships and other investment transaction gains — — 0.8 Limited partnerships and other investment transaction losses (7.1 ) (0.7 ) (4.6 ) Net transaction gains (losses) 32.1 32.8 39.7 Derivative instruments (31.1 ) (20.8 ) (27.7 ) Embedded derivatives [1] (3.1 ) (45.9 ) 12.2 Assets valued at fair value (7.9 ) 0.8 3.6 Net realized gains (losses), excluding impairment losses (10.0 ) (33.1 ) 27.8 Net realized gains (losses), including impairment losses $ (32.8 ) $ (41.2 ) $ 16.0 ——————— [1] Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity riders. See Note 10 to these consolidated financial statements for additional disclosures. Unrealized gains (losses) Sources of Changes in Net Unrealized Gains (Losses): For the years ended December 31, ($ in millions) 2015 2014 2013 Debt securities $ (504.2 ) $ 311.3 $ (538.1 ) Equity securities 3.9 4.8 2.7 Other investments (2.3 ) (4.1 ) 0.6 Net unrealized investment gains (losses) $ (502.6 ) $ 312.0 $ (534.8 ) Net unrealized investment gains (losses) $ (502.6 ) $ 312.0 $ (534.8 ) Applicable to closed block policyholder dividend obligation (241.4 ) 138.8 (308.4 ) Applicable to DAC (82.9 ) 52.5 (94.4 ) Applicable to other actuarial offsets (70.6 ) 54.2 (69.3 ) Applicable to deferred income tax expense (benefit) (71.3 ) 35.7 (20.5 ) Offsets to net unrealized investment gains (losses) (466.2 ) 281.2 (492.6 ) Net unrealized gains (losses) included in OCI $ (36.4 ) $ 30.8 $ (42.2 ) Consolidated variable interest entities 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 if we are the primary beneficiary. When we are the primary beneficiary of the entity we 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 consolidated 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. We consolidate these VIEs using the most recent financial information received from the partnerships. Recognition of operating results is generally on a three-month delay due to the timing of the related financial statements. The following table presents the total assets and total liabilities relating to consolidated VIEs at December 31, 2015 and 2014 . Carrying Value of Assets and Liabilities for Consolidated Variable Interest Entities: December 31, 2015 December 31, 2014 ($ in millions) Assets Liabilities Maximum Exposure to Loss [ 1] Assets Liabilities Maximum Exposure to Loss [ 1] Debt securities, at fair value [2] $ 14.7 $ — $ 10.4 $ 5.5 $ — $ 5.1 Equity securities, at fair value [2] 63.0 — 56.9 35.0 — 30.0 Cash and cash equivalents 6.9 — 6.7 9.4 — 9.3 Investment in partnership interests [2] — — — — — — Investment in single asset LLCs [2] 3.9 — 2.8 50.6 — 36.6 Other assets 5.4 — 4.3 0.6 — 0.5 Total assets of consolidated VIEs $ 93.9 $ — $ 81.1 $ 101.1 $ — $ 81.5 Total liabilities of consolidated VIEs $ — $ 1.1 $ — $ — $ 0.6 $ 0.5 ——————— [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 December 31, 2015 and 2014 excludes unfunded commitments of $6.5 million and $11.9 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. 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 $97.2 million and $151.5 million as of December 31, 2015 and 2014 , respectively. The maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. The Company has not provided nor intends to provide material financial support to these entities unless contractually required. We do not have the contractual option to redeem these limited partnership interests but receive distributions based on the liquidation of the underlying assets. The Company must generally request general partner consent to transfer or sell its fund interests. The Company performs ongoing qualitative analysis of its involvement with VIEs to determine if consolidation is required. Carrying Value of Assets and Liabilities and Maximum Exposure Loss Relating to Variable Interest Entities: December 31, 2015 December 31, 2014 ($ in millions) Assets Liabilities Maximum Exposure to Loss [ 1] Assets Liabilities Maximum Exposure to Loss [ 1] Limited partnerships $ 83.8 $ — $ 132.0 $ 106.0 $ — $ 157.8 LLCs 13.4 — 13.4 45.5 — 45.5 Total $ 97.2 $ — $ 145.4 $ 151.5 $ — $ 203.3 ——————— [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 ABS 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. We classify debt securities into investment grade and below-investment-grade securities based on ratings prescribed by the National Association of Insurance Commissioners (“NAIC”). In a majority of cases, these classifications will coincide with ratings assigned by one or more Nationa |
Financing Activities
Financing Activities | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financing Activities | Financing Activities Indebtedness The carrying value of our debt was as follows: Indebtedness at Carrying Value : As of December 31, ($ in millions) 2015 2014 7.15% surplus notes, due 2034 $ 126.2 $ 126.2 7.45% senior unsecured bonds, due 2032 252.7 252.7 Total indebtedness $ 378.9 $ 378.9 We incurred interest expense of $28.3 million , $28.3 million and $28.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. 7.15% surplus notes Our 7.15% surplus notes are an obligation of Phoenix Life. Interest payments are at an annual rate of 7.15% , require the prior approval of the New York 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. New York Insurance Law provides that the notes are not part of the legal liabilities of Phoenix Life. 7.45% senior unsecured bonds The indenture governing our 7.45% 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 Securities and Exchange Commission (“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 of 1934, as amended (“Exchange Act”). In connection with a restatement of our prior period financial statements, we were unable to file with the SEC certain of our periodic reports and meet the requirement to timely deliver a copy of such reports to the trustee. On February 21, 2014, we executed a supplemental indenture that provided a waiver to extend the date for providing the trustee with the Company’s Quarterly Report on Form 10-Q for the third quarter of 2012, the 2012 Form 10-K, our Quarterly Reports on Form 10-Q for the first, second and third quarters of 2013, the 2013 Form 10-K and our Quarterly Reports on Form 10-Q for the first, second and third quarters of 2014 to March 16, 2015. As a result, any and all defaults and events of default, including the delayed filing of such reports, occurring under the indenture prior to the supplemental indenture were waived. We completed the filing of these reports on November 21, 2014. See Note 26 to these consolidated financial statements for additional information. |
Common Stock and Stock Repurcha
Common Stock and Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2015 | |
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. Through December 31, 2015 , 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 December 31, 2015 , 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 December 31, 2015 , we also had 0.3 million shares reserved for issuance under our stock option plans and 0.1 million shares reserved for issuance under our restricted stock unit (“RSU”) plans. The Company is authorized to repurchase up to an aggregate amount of $25.0 million (not including fees and expenses) of the Company’s outstanding shares of common stocks. 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. There is no time limit placed on the duration of the program, which may be modified, extended or terminated by the Board of Directors at any time. There were no shares repurchased under this authorization. In 2015 , 2014 and 2013 , we did not pay any stockholder dividends. On November 6, 2015, State Farm Mutual Automobile Insurance Company (“State Farm”) filed a Schedule 13G which indicated that they no longer owned any of our outstanding common stock. In 2015 , 2014 and 2013 , we incurred $3.0 million , $2.7 million and $2.6 million , respectively, as compensation costs for the sale of our insurance and annuity products by entities that were either subsidiaries of State Farm or owned by State Farm agents. |
Separate Accounts, Death Benefi
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Separate Accounts Disclosure [Abstract] | |
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives | Sales Inducements The balances of and changes in sales inducements as of and for the years ended December 31, are as follows: Changes in Deferred Sales Inducement Activity: For the years ended December 31, ($ in millions) 2015 2014 2013 Balance, beginning of period $ 79.4 $ 77.4 $ 63.9 Sales inducements deferred 13.4 17.5 10.6 Amortization charged to income (9.6 ) (8.0 ) (8.5 ) Offsets to net unrealized investment gains or losses included in AOCI 7.9 (7.5 ) 11.4 Balance, end of period $ 91.1 $ 79.4 $ 77.4 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. Assets with fair value and carrying value of $2.8 billion and $2.6 billion at December 31, 2015 and 2014 , respectively, supporting fixed indexed annuities are maintained in accounts that are legally segregated from the other assets of the Company, but policyholders do not direct the investment of those assets and the investment performance does not pass through to the policyholders. These assets supporting fixed indexed annuity contracts are reported within the respective investment line items on the consolidated balance sheets. Separate Account Investments of Account Balances of Variable Annuity Contracts with Insurance Guarantees: As of December 31, ($ in millions) 2015 2014 Debt securities $ 300.5 $ 375.9 Equity funds 1,325.6 1,638.6 Other 43.7 49.9 Total $ 1,669.8 $ 2,064.4 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 on our consolidated statements of operations 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: For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 21.4 $ 17.1 Incurred 0.9 (0.9 ) Paid (2.7 ) (0.6 ) Assumption unlocking 0.6 (6.7 ) Change due to net unrealized gains or losses included in AOCI — — Balance, end of period $ 20.2 $ 8.9 Changes in Guaranteed Insurance Benefit For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 22.7 $ 9.8 Incurred 1.8 2.1 Paid (3.7 ) (0.2 ) Assumption unlocking 0.5 5.4 Change due to net unrealized gains or losses included in AOCI 0.1 — Balance, end of period $ 21.4 $ 17.1 Changes in Guaranteed Insurance Benefit For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 15.9 $ 21.7 Incurred 2.1 (3.6 ) Paid (3.7 ) — Assumption unlocking 8.4 (8.2 ) Change due to net unrealized gains or losses included in AOCI — (0.1 ) Balance, end of period $ 22.7 $ 9.8 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: GMDB and GMIB Benefits by Type: December 31, 2015 ($ in millions) Account Value NAR before Reinsurance NAR after Reinsurance Average Attained Age of Annuitant GMDB return of premium $ 527.5 $ 1.7 $ 1.7 64 GMDB step up 1,453.7 146.5 47.7 65 GMDB earnings enhancement benefit (“EEB”) 24.0 2.6 2.6 65 GMDB greater of annual step up and roll up 19.6 6.1 6.1 70 Total GMDB at December 31, 2015 2,024.8 $ 156.9 $ 58.1 Less: General account value with GMDB 360.8 Subtotal separate account liabilities with GMDB 1,664.0 Separate account liabilities without GMDB 872.4 Total separate account liabilities $ 2,536.4 GMIB [1] at December 31, 2015 $ 253.8 66 GMDB and GMIB Benefits by Type: December 31, 2014 ($ in millions) Account Value NAR before Reinsurance NAR after Reinsurance Average Attained Age of Annuitant GMDB return of premium $ 661.5 $ 1.6 $ 1.6 63 GMDB step up 1,723.2 112.2 13.4 64 GMDB earnings enhancement benefit (“EEB”) 29.1 — — 65 GMDB greater of annual step up and roll up 22.7 4.8 4.8 69 Total GMDB at December 31, 2014 2,436.5 $ 118.6 $ 19.8 Less: General account value with GMDB 378.6 Subtotal separate account liabilities with GMDB 2,057.9 Separate account liabilities without GMDB 962.8 Total separate account liabilities $ 3,020.7 GMIB [1] at December 31, 2014 $ 319.6 65 ——————— [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 to GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. Return of Premium: The death benefit is the greater of current account value or premiums paid (less any adjusted partial withdrawals). Step Up: The death benefit is the greater of current account value, premiums paid (less any adjusted partial withdrawals) or the annual step up amount prior to the oldest original owner attaining a certain age. On and after the oldest original owner attains that age, the death benefit is the greater of current account value or the death benefit at the end of the contract year prior to the oldest original owner’s attaining that age plus premium payments (less any adjusted partial withdrawals) made since that date. Earnings Enhancement Benefit: The death benefit is the greater of the premiums paid (less any adjusted partial withdrawals) or the current account value plus the EEB. The EEB is an additional amount designed to reduce the impact of taxes associated with distributing contract gains upon death. Greater of Annual Step Up and Annual Roll Up: The death benefit is the greatest of premium payments (less any adjusted partial withdrawals), the annual step up amount, the annual roll up amount or the current account value prior to the oldest original owner attaining age 81 . On and after the oldest original owner attained age 81 , the death benefit is the greater of current account value or the death benefit at the end of the contract year prior to the oldest original owner’s attained age of 81 plus premium payments (less any adjusted partial withdrawals) made since that date. GMIB : The benefit is a series of monthly fixed annuity payments paid upon election of the rider. The monthly benefit is based on the greater of the sum of premiums (less any adjusted partial withdrawals) accumulated at an effective annual rate on the exercise date or 200% of the premiums paid (less any adjusted partial withdrawals) and a set of annuity payment rates that vary by benefit type and election age. 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 generally 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 GMWB and GMDB ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 147.0 $ 85.4 $ 102.1 Incurred 54.1 33.4 60.8 Paid (0.4 ) (0.3 ) (0.3 ) Assumption unlocking (5.1 ) (7.4 ) (18.7 ) Change due to net unrealized gains or losses included in AOCI (42.8 ) 35.9 (58.5 ) Balance, end of period $ 152.8 $ 147.0 $ 85.4 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 generally consistent with those used for amortizing DAC. Changes in Guaranteed Liability Balances: Universal Life Secondary Guarantees ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 195.8 $ 170.6 $ 138.5 Incurred 45.5 39.9 37.9 Paid (27.9 ) (15.3 ) (14.3 ) Assumption unlocking 0.7 (1.6 ) 10.9 Change due to net unrealized gains or losses included in AOCI (4.0 ) 2.2 (2.4 ) Balance, end of period $ 210.1 $ 195.8 $ 170.6 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 generally consistent with those used for amortizing DAC. Changes in Additional Liability Balances: Universal Life Profits Followed by Losses ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 351.5 $ 249.1 $ 311.7 Incurred 31.5 106.4 66.2 Assumption unlocking 19.7 (13.0 ) (129.9 ) Change due to net unrealized gains or losses included in AOCI (12.1 ) 9.0 1.1 Balance, end of period $ 390.6 $ 351.5 $ 249.1 Embedded derivatives Variable annuity embedded derivatives Certain separate account variable products may contain a GMWB, GMAB and/or COMBO rider. These features are accounted for as embedded derivatives as described below. Embedded Derivatives Non-Insurance Guaranteed Product Features: As of December 31, 2015 ($ in millions) Account Value Average Attained Age of Annuitant GMWB $ 385.1 66 GMAB 223.5 60 COMBO 4.9 65 Balance, end of period $ 613.5 Embedded Derivatives Non-Insurance Guaranteed Product Features: As of December 31, 2014 ($ in millions) Account Value Average Attained Age of Annuitant GMWB $ 496.8 65 GMAB 315.6 59 COMBO 7.1 65 Balance, end of period $ 819.5 The GMWB rider guarantees the contract owner a minimum amount of withdrawals and benefit payments over time, regardless of the investment performance of the contract, subject to an annual limit. Optional resets are available. In addition, these contracts have a feature that allows the contract owner to receive the guaranteed annual withdrawal amount for as long as they are alive. The GMAB rider provides the contract owner with a minimum accumulation of the contract owner’s purchase payments deposited within a specific time period, adjusted for withdrawals, after a specified amount of time determined at the time of issuance of the variable annuity contract. The COMBO rider includes either the GMAB or GMWB rider as well as the GMDB rider at the contract owner’s option. 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 operations 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. Embedded Derivative Liabilities: As of December 31, ($ in millions) 2015 2014 GMWB $ 9.0 $ 7.3 GMAB 0.2 (0.3 ) COMBO (0.1 ) (0.2 ) Total embedded derivative liabilities $ 9.1 $ 6.8 There were no benefit payments made for the GMWB and GMAB during 2015 and 2014 . 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. These index options are 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 deposit funds within the consolidated balance sheets with changes in fair value recorded in realized investment gains, in the consolidated statements of operations and comprehensive income. The fair value of these index options is calculated using the budget method. See Note 12 to these consolidated 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 $156.8 million and $153.9 million as of December 31, 2015 and 2014 , respectively. In order to manage the risk associated with these equity indexed-crediting features, we hedge using equity index options. See Note 11 to these consolidated 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 operations and comprehensive income. Embedded derivatives gains and (losses) recognized in earnings are $(3.1) million , $(45.9) million and $12.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 surplus hedging as well as hedging of our fixed indexed annuity (“FIA”) exposure. From time to time, the Company uses forward starting swaps to lock-in interest rates on future bond purchases. 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 FIA 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. Counterparties or central clearinghouses may require cash to be posted as collateral or margin. As of December 31, 2015 and 2014 , $20.6 million and $18.6 million respectively, of cash and cash equivalents were held as collateral by a third party related to our derivative transactions. Our derivatives are not designated as hedges for accounting purposes. The following tables summarize the balance sheet classification of the Company’s gross derivative asset and liability fair value amounts. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the tables below to quantify the volume of the Company’s derivative activity. Derivative Instruments: Maturity Notional Amount Fair Value as of ($ in millions) Assets Liabilities [1] Interest rate swaps 2018 - 2035 $ 159.0 $ 2.8 $ 0.5 Variance swaps 2016 - 2017 0.7 — 6.5 Swaptions 2016 2,790.0 10.4 3.6 Put options 2016 - 2022 800.4 31.3 6.0 Call options [2] 2016 - 2020 2,502.1 57.5 32.3 Cross currency swaps 2016 10.0 1.5 — Equity futures 2016 31.8 — 0.4 Total derivative instruments $ 6,294.0 $ 103.5 $ 49.3 ——————— [1] Derivative liabilities are included in other liabilities on the consolidated balance sheets. [2] Includes a contingent receivable of $1.5 million . Derivative Instruments: Maturity Notional Amount Fair Value as of ($ in millions) Assets Liabilities [1] Interest rate swaps 2016 - 2029 $ 114.0 $ 9.7 $ 1.9 Variance swaps 2015 - 2017 0.9 — 8.6 Swaptions 2024 - 2025 777.0 0.1 — Put options 2015 - 2022 692.5 31.1 — Call options [2] 2015 - 2019 2,019.2 119.8 74.6 Cross currency swaps 2016 10.0 0.6 — Equity futures 2015 4.1 — 0.5 Total derivative instruments $ 3,617.7 $ 161.3 $ 85.6 ——————— [1] Derivative liabilities are included in other liabilities on the consolidated balance sheets. [2] Includes a contingent receivable of $1.5 million . Derivative Instrument Gains (Losses) Recognized in Realized Investment Gains (Losses): For the years ended December 31, ($ in millions) 2015 2014 2013 Interest rate swaps $ 4.8 $ 11.0 $ (11.4 ) Variance swaps (0.9 ) (0.7 ) (3.6 ) Swaptions (4.1 ) (30.6 ) 17.3 Put options (9.2 ) (4.8 ) (42.3 ) Call options (22.2 ) 18.5 59.3 Cross currency swaps 0.8 1.3 (0.5 ) Equity futures (0.3 ) (15.5 ) (46.5 ) Embedded derivatives (3.1 ) (45.9 ) 12.2 Total derivative instrument gains (losses) recognized in realized investment gains (losses) $ (34.2 ) $ (66.7 ) $ (15.5 ) Interest Rate Swaps We maintain an overall interest rate risk management strategy that primarily incorporates the use of interest rate swaps as hedges of our exposure to changes in interest rates. Our exposure to changes in interest rates primarily results from our commitments to fund interest-sensitive insurance liabilities, as well as from our significant holdings of fixed rate financial instruments. We use interest rate swaps that effectively convert variable rate cash flows to fixed cash flows in order to hedge the interest rate risks associated with guaranteed minimum living benefit (GMAB/GMWB) rider liabilities. Interest Rate Options We use interest rate options, such as swaptions, to hedge against market risks to assets or liabilities from substantial changes in interest rates. An interest rate swaption gives us the right but not the obligation to enter into an underlying swap. Swaptions are options on interest rate swaps. All of our swaption contracts are receiver swaptions, which give us the right to enter into a swap where we will receive the agreed-upon fixed rate and pay the floating rate. If the market conditions are favorable and the swap is needed to continue hedging our in force liability business, we will exercise the swaption and enter into a fixed rate swap. If a swaption contract is not exercised by its option maturity date, it expires with no value. Exchange Traded Future Contracts We use equity index futures to hedge the market risks from changes in the value of equity indices, such as S&P 500, associated with guaranteed minimum living benefit (GMAB/GMWB) rider liabilities. Positions are short-dated, exchange-traded futures with maturities of three months. Equity Index Options We use equity indexed options to hedge against market risks from changes in equity markets, volatility and interest rates. An equity index option affords us the right to make or receive payments based on a specified future level of an equity market index. We may use exchange-trade or OTC options. Generally, we have used a combination of equity index futures, interest rate swaps, variance swaps and long-dated put options to hedge our GMAB and GMWB liabilities and equity index call options to hedge our indexed annuity option liabilities. Cross Currency Swaps We use cross currency swaps to hedge against market risks from changes in foreign currency exchange rates. Currency swaps are used to swap bond asset cash flows denominated in a foreign currency back to U.S. dollars. Under foreign currency swaps, we agree with another party (referred to as the counterparty) to exchange principal and periodic interest payments denominated in foreign currency for payments in U.S. dollars. 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. Offsetting of Derivative Assets/Liabilities: As of December 31, 2015 ($ in millions) Gross amounts recognized [1] Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral pledged [2] Total derivative assets $ 103.5 $ — $ 103.5 $ (47.4 ) $ — $ 56.1 Total derivative liabilities $ (49.3 ) $ — $ (49.3 ) $ 47.4 $ 1.9 $ — Offsetting of Derivative Assets/Liabilities: As of December 31, 2014 ($ in millions) Gross amounts recognized [1] Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral pledged [2] Total derivative assets $ 161.3 $ — $ 161.3 $ (82.5 ) $ — $ 78.8 Total derivative liabilities $ (85.6 ) $ — $ (85.6 ) $ 82.5 $ 3.1 $ — ——————— [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 consolidated balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $18.7 million and $15.5 million as of December 31, 2015 and 2014 , respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. Contingent features Derivative counterparty agreements may contain certain provisions that require our insurance companies’ financial strength rating to be above a certain threshold. If our financial strength ratings were to fall below a specified rating threshold, certain derivative counterparties could request immediate payment or demand immediate and ongoing full collateralization on derivative instruments in net liability positions, or trigger a termination of existing derivatives and/or future derivative transactions. In certain derivative counterparty agreements, our financial strength ratings are below the specified threshold levels. However, the Company held no derivative instruments as of December 31, 2015 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 Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments U.S. GAAP 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. Investments for which fair value is based upon unadjusted quoted market prices are reported as Level 1. The number of quotes the issuer obtains per instrument will vary depending on the security type and availability of pricing data from independent third-party, nationally recognized pricing vendors. The Company has defined a pricing hierarchy among pricing vendors to determine ultimate value used and also reviews significant discrepancies among pricing vendors to determine final value used. Prices from pricing services are not adjusted, but the Company may obtain a broker quote or use an internal model to price a security if it believes vendor prices do not reflect fair value. When quoted prices are not available, we use these pricing vendors to give an estimated fair value. If quoted prices, or an estimated price from our pricing vendors are not available or we determine that the price is based on disorderly transactions or in inactive markets, fair value is based upon internally developed models or obtained from an independent third-party broker. We primarily use market-based or independently sourced market parameters, including interest rate yield curves, option volatilities and currency rates. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments include amounts to reflect counterparty credit quality, our own creditworthiness, liquidity and unobservable parameters that are applied consistently over time. Management is responsible for the fair value of investments and the methodologies and assumptions used to estimate fair value. The fair value process is evaluated quarterly by the Pricing Committee, which is comprised of the Chief Investment Officer, Chief Accounting Officer and the Head of Investment Accounting. The purpose of the committee is to ensure the Company follows objective and reliable valuation practices, as well as approving changes to valuation methodologies and pricing sources. Using professional judgment and experience, we evaluate and weigh the relevance and significance of all readily available market information to determine the best estimate of fair value. Management reviews all Level 2 and Level 3 market prices on a quarterly basis. During the fourth quarter of 2015, management implemented new diligence procedures to evaluate the pricing inputs and methodologies used by the primary pricing vendors. This analysis allowed the Company to conclude that fair value estimates received from these pricing vendors are derived from observable inputs. As a result, investments recorded using these vendor’s prices are included in Level 2. Prior to implementing these diligence procedures, the Company included many of these investments within Level 3. This enhancement to our pricing process resulted in the large transfers of investments from Level 3 to Level 2 shown in the tables below. As part of this policy refinement, the Company also reassessed the classification of short-term investments previously classified in Level 1. The Company determined that, while pricing inputs are observable and these securities are highly liquid, the comparability to peer companies’ disclosure is maximized by assigning the short-term investments to Level 2. The following is a description of our valuation methodologies for assets and liabilities measured at fair value. Such valuation methodologies were applied to all of the assets and liabilities carried at fair value in each respective classification. Debt securities We use pricing vendors to estimate fair value for the majority of our public debt securities. The pricing vendors’ estimates are based on market data and use pricing models that vary by asset class and incorporate available trade, bid and other market information. The methodologies used by these vendors are reviewed and understood by management through discussion with and information provided by these vendors. The Company assesses the reasonableness of individual security values received from valuation pricing vendors through various analytical techniques. Management also assesses whether the assumptions used appear reasonable and consistent with the objective of determining fair value. When our pricing vendors are unable to obtain evaluations based on market data, fair value is determined by obtaining a direct broker quote. Management reviews these broker quotes and valuation techniques to determine whether they are appropriate and consistently applied. Broker quotes are evaluated based on the Company’s assessment of the broker’s knowledge of, and history in trading, the security and the Company’s understanding of inputs used to derive the broker quote. Management also assesses reasonableness of individual security values similar to the vendor pricing review noted above. For our private placement investments, we estimated fair value using internal models. Private placement securities are generally valued using a matrix pricing approach which categorizes these securities into groupings using remaining average life and credit rating as the two criteria to determine a grouping. The Company obtains current credit spread information from private placement dealers based on the criteria described and adds that spread information to U.S. Treasury rates corresponding to the life of each security to determine a discount rate for pricing. A small number of private placement securities are internally valued using models or analyst judgment. Fair values determined internally are also subject to management review to ensure that valuation models and inputs appear reasonable. U.S. Government and Agency Securities We value public U.S. government and agency debt by obtaining fair value estimates from our pricing vendors. For our private placement government and agency debt, our fair value is based on internal models using either a discounted cash flow or spread matrix which incorporates U.S. Treasury yields, market spreads and average life calculations. For short-term investments, we equate fair value to amortized cost due to their relatively short duration and limited exposure to credit risk. State and Political Subdivisions Public state and political subdivision debt is valued by obtaining fair value estimates from our pricing vendors. For our private placement debt securities, our fair value is based on internal models using either a discounted cash flow or spread matrix which incorporates U.S. Treasury yields, market spreads and average life calculations. Foreign Government We obtain fair value estimates from our pricing vendor to value foreign government debt. Corporate Bonds For the majority of our public corporate debt, we obtain fair value estimates from our pricing vendors. For public corporate debt in which we cannot obtain fair value estimates from our pricing vendors, we receive a direct quote from a broker. In most cases, we will obtain a direct broker quote from the broker that facilitated the deal. For our private placement debt securities, our fair value is based on internal models using either a discounted cash flow or spread matrix which incorporates U.S. Treasury yields, market spreads and average life calculations. For private fixed maturities, fair value is determined using a discounted cash flow model, which utilizes a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions and takes into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. In determining the fair value of certain debt securities, the discounted cash flow model may also use unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the security. RMBS, CMBS, CDO/CLO and Other ABS For structured securities, the majority of the fair value estimates are provided by our pricing vendors. When a fair value estimate is not available from the pricing vendors, we estimate fair value using direct broker quotes or internal models which use a discounted cash flow technique. These models consider the best estimate of cash flows until maturity to determine our ability to collect principal and interest and compare this to the anticipated cash flows when the security was purchased. In addition, management judgment is used to assess the probability of collecting all amounts contractually due to us. After consideration is given to the available estimates relevant to assessing the collectibility, including historical events, current conditions and reasonable forecasts, an estimate of future cash flows is determined. This includes evaluating the remaining payment terms, prepayment speeds, the underlying collateral, expected defaults using current default data and the financial condition of the issuer. Other factors considered are composite credit ratings, industry forecast, analyst reports and other relevant market data, similar to those the Company believes market participants would use. Equity securities Private Equity Investments The fair value of non-public private equity is estimated using the valuation of the lead investor (“sponsor value”), typically a general partner of an investment in a limited partnership in which we invest. The sponsors, or lead investors/underwriters of these investments, account for them on an equity basis. The Company will then obtain securities fair value from these sponsors to infer the appropriate fair value for its holdings in the same or similar investment. If we cannot determine a price using the sponsor value, we estimate the fair value using management’s professional judgment. Management evaluates many inputs including, but not limited to, current operating performance, future expectations of the investment, industry valuations of comparable public companies and changes in market outlook and third-party financing environment over time. Financial information for these investments is reported on a three-month delay due to the timing of financial statements as of the current reporting period. Public Equity Our publicly held common equity securities are generally obtained through the initial public offering of privately-held equity investments and are reported at the estimated fair value determined based on quoted prices in active markets. To the extent these securities have readily determinable exchange based prices, the securities are categorized as Level 1 of our hierarchy. If management determines there are liquidity concerns or exchange based information for the specific securities in our portfolio is not available, the securities are categorized as Level 2. For our preferred equity securities, we obtain fair value estimates from our pricing vendors. In addition, management will consistently monitor these holdings and prices will be modified for any pertinent and/or significant events that would result in a valuation adjustment, including an analysis for potential credit-related events or impairments. Separate account assets Our separate account assets consist primarily of mutual funds that are frequently traded. These securities are valued using the market approach in which unadjusted market quotes are used. We include these securities in Level 1 of our hierarchy. Derivatives Exchange-traded derivatives are valued using quoted prices and are classified within Level 1 of the valuation hierarchy. However, few classes of derivative contracts are listed on an exchange. Therefore, the majority of our derivative positions are OTC derivative financial instruments, valued using third-party vendor derivative valuation systems that use as their basis readily observable market parameters, such as swap rates and volatility assumptions. These positions are classified within Level 2 of the valuation hierarchy. Such OTC derivatives include vanilla interest rate swaps, equity index options, swaptions, variance swaps and cross currency swaps. Nevertheless, we review and validate the resulting fair values against those provided to us monthly by the derivative counterparties for reasonableness. Fair values for OTC derivative financial instruments, mostly options and swaps, represent the present value of amounts estimated to be received from or paid to a marketplace participant in exchange of these instruments (i.e., the amount we would expect to receive in a derivative asset assignment or would expect to pay to have a derivative liability assumed). These derivatives are valued using third-party derivative valuation models which take into account the net present value of estimated future cash flows and capital market assumptions which are derived from directly observable prices from other OTC trades and exchange-traded derivatives. Such assumptions include swap rates and swaption volatility obtained from Bloomberg, as well as equity index volatility and dividend yields provided by OTC derivative dealers. The fair value of OTC derivative financial instruments is also adjusted for the credit risk of the counterparty in cases in which there are no collateral offsets. To estimate the impact on fair value of a market participant’s view of counterparty non-performance risk we use a credit default swap (“CDS”) based approach in measuring this counterparty non-performance risk by looking at the cost of obtaining credit protection in the CDS market for the aggregate fair value exposure amount over the remaining life of derivative contracts, given the counterparty’s rating. The resulting upfront CDS premium, calculated using Bloomberg analytics, serves as a reasonable estimate of the default provision for the non-performance risk or counterparty valuation adjustment to the fair valuation of non-collateralized OTC derivative financial instruments. Certain new and/or complex instruments may have immature or limited markets or require more sophistication in derivative valuation methodology. As a result, the pricing models used for valuation of these instruments often incorporate significant estimates and assumptions that market participants would use in pricing the instrument, which may impact the results of operations reported in the consolidated financial statements. Hence, instead of valuing these instruments using third-party vendor valuation systems, we rely on the fair market valuations reported to us monthly by the derivative counterparties. Fair values for OTC derivatives are verified using observed estimates about the costs of hedging the risk and other trades in the market. As the markets for these products develop, we continually refine our pricing models to correlate more closely to the market risk of these instruments. Valuation of embedded derivatives We make guarantees on certain variable annuity contracts, including those with GMAB, GMWB and COMBO riders. We also provide credits based on the performance of certain indices (“index credits”) on our fixed indexed annuity contracts. Both contract types have features that meet the definition of an embedded derivative. The GMAB, GMWB and COMBO embedded derivative liabilities associated with our variable annuity contracts are accounted for at fair value using a risk neutral stochastic valuation methodology with changes in fair value recorded in realized investment gains. The inputs to our fair value methodology include estimates derived from the asset derivatives market, including equity volatilities and the swap curves. Several additional inputs are not obtained from independent sources, but instead reflect our internally developed assumptions related to mortality rates, lapse rates and other policyholder behavior. The fair value of the embedded derivative liabilities associated with the index credits on our fixed indexed annuity contracts is calculated using the budget method with changes in fair value recorded in realized investment gains. Under the budget method, the value of the initial index option is based on the fair value of the option purchased to hedge the index. The value of the index credits paid in future years is estimated to be the annual budgeted amount. Budgeted amounts are estimated based on available investment income using assumed investment returns and projected liability values. As there are significant unobservable inputs included in our fair value methodology for these embedded derivative liabilities, we consider the methods as described above as a whole to be Level 3 within the fair value hierarchy. Our fair value calculation of embedded derivative liabilities includes a credit standing adjustment (the “CSA”). The CSA represents the adjustment that market participants would make to reflect the risk that guaranteed benefit obligations may not be fulfilled (“non-performance risk”). We estimate our CSA using the credit spread (based on publicly available credit spread indices) for financial services companies similar to the Company’s life insurance subsidiaries. The CSA is updated every quarter and, therefore, the fair value will change with the passage of time even in the absence of any other changes that would affect the valuation. 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 December 31, 2015 and 2014 , respectively. Fair Values of Financial Instruments by Level: As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total Assets Available-for-sale debt securities U.S. government and agency [1] $ — $ 128.7 $ 460.9 $ 589.6 State and political subdivision — 357.5 179.9 537.4 Foreign government — 234.5 8.4 242.9 Corporate — 4,933.6 3,408.6 8,342.2 CMBS — 662.1 22.0 684.1 RMBS — 1,223.9 22.3 1,246.2 CDO/CLO — 308.3 1.2 309.5 Other ABS — 161.5 77.3 238.8 Total available-for-sale debt securities — 8,010.1 4,180.6 12,190.7 Available-for-sale equity securities — 97.2 84.8 182.0 Short-term investments — 159.8 5.0 164.8 Derivative assets — 103.5 — 103.5 Fair value investments [2] 18.8 57.9 88.3 165.0 Separate account assets 2,536.4 — — 2,536.4 Total assets $ 2,555.2 $ 8,428.5 $ 4,358.7 $ 15,342.4 Liabilities Derivative liabilities $ 0.4 $ 48.9 $ — $ 49.3 Embedded derivatives — — 165.9 165.9 Total liabilities $ 0.4 $ 48.9 $ 165.9 $ 215.2 ——————— [1] Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. [2] Fair value investments at December 31, 2015 include $59.0 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 $18.8 million , which are Level 1 securities. Changes in the fair value of these assets are recorded through net investment income. Additionally, $87.2 million of assets relate to investment holdings of consolidated VIEs held at fair value. All short-term investments were transfered from Level 1 to Level 2 in the fourth quarter of 2015. There were no other transfers of assets between Level 1 and Level 2 during the year ended December 31, 2015 . Fair Values of Financial Instruments by Level: As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total Assets Available-for-sale debt securities U.S. government and agency [1] $ — $ 81.2 $ 362.2 $ 443.4 State and political subdivision — 157.7 400.2 557.9 Foreign government — 177.3 53.6 230.9 Corporate — 3,994.2 4,403.9 8,398.1 CMBS — 498.4 152.8 651.2 RMBS — 1,461.9 470.3 1,932.2 CDO/CLO — — 196.9 196.9 Other ABS — 23.6 245.1 268.7 Total available-for-sale debt securities — 6,394.3 6,285.0 12,679.3 Available-for-sale equity securities — — 179.5 179.5 Short-term investments 149.7 — — 149.7 Derivative assets — 161.3 — 161.3 Fair value investments [2] 32.4 13.0 190.0 235.4 Separate account assets 3,020.7 — — 3,020.7 Total assets $ 3,202.8 $ 6,568.6 $ 6,654.5 $ 16,425.9 Liabilities Derivative liabilities $ 0.5 $ 85.1 $ — $ 85.6 Embedded derivatives — — 160.7 160.7 Total liabilities $ 0.5 $ 85.1 $ 160.7 $ 246.3 ——————— [1] Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. [2] Fair value investments at December 31, 2014 include $111.9 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 $23.5 million as of December 31, 2014 . Changes in the fair value of these assets are recorded through net investment income. Additionally, $100.0 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.8 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, 2014 . Available-for-sale debt securities as of December 31, 2015 and 2014 , respectively, are reported net of $28.2 million and $27.8 million of Level 2 investments included in discontinued operations assets on the consolidated balance sheets. The following tables present corporates carried at fair value and on a recurring basis by sector. Fair Values of Corporates by Level and Sector: As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total Corporates Consumer $ — $ 895.6 $ 1,249.6 $ 2,145.2 Energy — 636.4 293.2 929.6 Financial services — 1,773.8 354.0 2,127.8 Capital goods — 521.2 262.8 784.0 Transportation — 175.9 284.5 460.4 Utilities — 417.5 700.1 1,117.6 Other — 513.2 264.4 777.6 Total corporates $ — $ 4,933.6 $ 3,408.6 $ 8,342.2 Fair Values of Corporates by Level and Sector: As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total Corporates Consumer $ — $ 593.0 $ 1,266.6 $ 1,859.6 Energy — 534.6 472.8 1,007.4 Financial services — 1,617.3 967.9 2,585.2 Capital goods — 398.1 384.8 782.9 Transportation — 104.7 305.8 410.5 Utilities — 348.1 683.4 1,031.5 Other — 398.4 322.6 721.0 Total corporates $ — $ 3,994.2 $ 4,403.9 $ 8,398.1 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. Transfers in and out of Level 3 occur at the beginning of each period. The securities which were transferred into Level 3 for the years ended December 31, 2015 and 2014 were due to decreased market observability of similar assets and/or changes to significant inputs. Transfers out of Level 3 for the year ended December 31, 2015 were due to the implementation of due diligence procedures which allowed for a refinement of the analysis of observable inputs as described in more detail above. Transfers out of Level 3 for the year ended December 31, 2014 were due to increased market activity for comparable instruments or observability of inputs. Level 3 Financial Assets: As of December 31, 2015 ($ in millions) Balance, beginning of period Purchases Sales Transfers into Level 3 Transfers out of Level 3 Realized and unrealized gains (losses) included in income [1] Unrealized gains (losses) included in OCI Total Assets Available-for-sale debt securities U.S. government and agency [2] $ 362.2 $ 25.1 $ (23.8 ) $ 117.0 $ (6.3 ) $ 2.3 $ (15.6 ) $ 460.9 State and political subdivision 400.2 41.1 (14.1 ) — (238.7 ) 2.7 (11.3 ) 179.9 Foreign government 53.6 — (0.3 ) 14.8 (61.0 ) (0.3 ) 1.6 8.4 Corporate 4,403.9 690.4 (532.9 ) 354.0 (1,328.3 ) (48.1 ) (130.4 ) 3,408.6 CMBS 152.8 30.1 (5.6 ) 25.6 (176.8 ) 0.2 (4.3 ) 22.0 RMBS 470.3 0.7 (73.8 ) — (368.7 ) (1.1 ) (5.1 ) 22.3 CDO/CLO 196.9 166.2 (58.2 ) — (304.5 ) 0.2 0.6 1.2 Other ABS 245.1 4.5 (27.6 ) — (139.8 ) (0.1 ) (4.8 ) 77.3 Total available-for-sale debt securities 6,285.0 958.1 (736.3 ) 511.4 (2,624.1 ) (44.2 ) (169.3 ) 4,180.6 Available-for-sale equity securities 179.5 20.2 (14.9 ) — (92.6 ) (9.5 ) 2.1 84.8 Short-term investments — 5.0 — — — — — 5.0 Fair value investments 190.0 11.7 (79.4 ) — (44.9 ) 10.9 — 88.3 Total assets $ 6,654.5 $ 995.0 $ (830.6 ) $ 511.4 $ (2,761.6 ) $ (42.8 ) $ (167.2 ) $ 4,358.7 ——————— [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: As of December 31, 2014 ($ in millions) Balance, beginning of period Purchases Sales Transfers into Level 3 Transfers out of Level 3 Realized and unrealized gains (losses) included in income [1] Unrealized gains (losses) included in OCI Total Assets Available-for-sale debt securities U.S. government and agency [2] $ 327.2 $ 40.0 $ (26.7 ) $ — $ — $ — $ 21.7 $ 362.2 State and political subdivision 269.1 106.5 (6.5 ) 11.3 — — 19.8 400.2 Foreign government 15.9 7.4 — 28.5 — — 1.8 53.6 Corporate 3,893.8 710.9 (428.9 ) 244.0 (97.9 ) 4.6 77.4 4,403.9 CMBS 113.7 25.1 (36.6 ) 71.1 (30.4 ) 1.4 8.5 152.8 RMBS 552.7 3.1 (75.5 ) — (4.3 ) 3.1 (8.8 ) 470.3 CDO/CLO 224.1 41.4 (61.6 ) — — 2.7 (9.7 ) 196.9 Other ABS 247.7 26.1 (40.0 ) 17.6 — 1.7 (8.0 ) 245.1 Total available-for-sale 5,644.2 960.5 (675.8 ) 372.5 (132.6 ) 13.5 102.7 6,285.0 Available-for-sale equity securities 135.2 65.0 (21.2 ) — — 3.7 (3.2 ) 179.5 Short-term investments 0.9 — (0.5 ) — — (0.4 ) — Fair value investments 169.9 14.4 (22.2 ) — — 27.9 — 190.0 Total assets $ 5,950.2 $ 1,039.9 $ (719.7 ) $ 372.5 $ (132.6 ) $ 44.7 $ 99.5 $ 6,654.5 ——————— [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 Liabilities: Embedded Derivatives ($ in millions) For the years ended December 31, 2015 2014 Balance, beginning of period $ 160.7 $ 87.8 Net purchases / settlements 2.1 27.1 Transfers into Level 3 — — Transfers out of Level 3 — — Realized (gains) losses 3.1 45.8 Balance, end of period $ 165.9 $ 160.7 Significant unobservable inputs used in the fair value measurement of Level 3 assets are yield, prepayment rate, default rate and recovery rate. 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 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 tables present quantitative estimates about unobservable inputs used in the fair value measurement of significant categories of internally priced assets. Level 3 Assets: [1] As of December 31, 2015 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) U.S. government and agency $ 459.9 Discounted cash flow Yield 1.44% - 4.83% (3.52%) State and political subdivision $ 179.9 Discounted cash flow Yield 2.04% - 14.79% (4.14%) Foreign government $ 4.1 Discounted cash flow Yield 2.06% Corporate $ 3,135.8 Discounted cash flow Yield 1.11% - 11.20% (3.75%) Other ABS $ 34.4 Discounted cash flow Yield 1.07% - 3.20% (2.14%) Fair value investments $ 6.6 Discounted cash flow Default rate 0.15% Recovery rate 43.00% ——————— [1] Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. Level 3 Assets: [1] As of December 31, 2014 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) U.S. government and agency $ 362.2 Discounted cash flow Yield 0.99% - 4.27% (3.17%) State and political subdivision $ 159.1 Discounted cash flow Yield 2.15% - 4.50% (3.22%) Corporate $ 3,116.6 Discounted cash flow Yield 0.93% - 6.88% (3.24%) Other ABS $ 39.3 Discounted cash flow Yield 0.60% - 4.00% (1.92%) Fair value investments $ 6.3 Discounted cash flow Default rate 0.17% Recovery rate 44.00% ——————— [1] Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. Significant unobservable inputs used in the fair value measurement of variable annuity (“VA”) GMAB and GMWB type 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 credit standing adjustment (“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, future option budget, 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 tables present quantitative estimates about unobservable inputs used in the fair value measurement of internally priced liabilities. Level 3 Liabilities: As of December 31, 2015 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range Embedded derivatives (FIA) $ 156.8 Budget method Swap curve 0.55% - 2.46% Mortality rate 100% or 90% 2012 IAM basic table Lapse rate 0.50% - 32.50% CSA 4.45% Embedded derivatives (GMAB / GMWB / COMBO) $ 9.1 Risk neutral stochastic Volatility surface 4.80% - 72.02% Swap curve 0.57% - 2.68% Mortality rate 110% 2012 IAM basic table Lapse rate 0.00% - 53.00% CSA 4.45% Level 3 Liabilities: As of December 31, 2014 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range Embedded derivatives (FIA) $ 153.9 Budget method Swap curve 0.24% - 2.55% Mortality rate 105% or 97% 2012 IAM basic table Lapse rate 0.04% - 46.44% CSA 3.08% Embedded derivatives (GMAB / GMWB / COMBO) $ 6.8 Risk neutral stochastic Volatility surface 9.89% - 67.34% Swap curve 0.21% - 2.76% Mortality rate 105% 2012 IAM basic table Lapse rate 0.00% - 40.00% CSA 3.08% Level 3 Assets and Liabilities by Pricing Source: As of December 31, 2015 ($ in millions) Internal [1] External [2] Total Assets Available-for-sale debt securities U.S. government and agency [3] $ 459.9 $ 1.0 $ 460 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Phoenix and its subsidiaries file a consolidated U.S. Federal income tax return. The Company also files combined, unitary and separate income tax returns in various states. Significant Components of Income Taxes from Continuing Operations: For the years ended December 31, ($ in millions) 2015 2014 2013 Current U.S. $ (34.3 ) $ 10.5 $ 8.5 Foreign — — — Deferred U.S. — — — Foreign — — — Total income tax expense (benefit) $ (34.3 ) $ 10.5 $ 8.5 Reconciliation of Effective Income Tax Rate: For the years ended December 31, ($ in millions) 2015 2014 2013 Income (loss) from continuing operations before income taxes: U.S. $ (159.3 ) $ (195.2 ) $ 38.1 Foreign — — — Total $ (159.3 ) $ (195.2 ) $ 38.1 Income tax expense (benefit) at statutory rate of 35% $ (55.8 ) $ (68.3 ) $ 13.3 Dividend received deduction (3.5 ) (3.0 ) (2.3 ) Expiration of tax attribute carryovers 12.9 7.4 4.5 Impact of deferred tax validation — 0.5 — Noncontrolling interest (2.4 ) (1.4 ) (0.2 ) Valuation allowance increase (release) 21.3 79.3 (4.1 ) State income taxes (benefit) (5.3 ) (4.3 ) (2.8 ) Other, net (1.5 ) 0.3 0.1 Income tax expense (benefit) applicable to continuing operations $ (34.3 ) $ 10.5 $ 8.5 Effective income tax rates 21.5% (5.4%) 22.3% Allocation of Income Taxes: For the years ended December 31, ($ in millions) 2015 2014 2013 Income tax expense (benefit) from continuing operations $ (34.3 ) $ 10.5 $ 8.5 Income tax from OCI: Unrealized investment (gains) losses (71.3 ) 35.7 (20.5 ) Pension — — — Policy dividend obligation and DAC — — — Other — — — Income tax benefit from discontinued operations (0.1 ) (0.4 ) (0.3 ) Total income tax recorded to all components of income $ (105.7 ) $ 45.8 $ (12.3 ) Deferred Income Tax Balances Attributable to Temporary Differences: As of December 31, ($ in millions) 2015 2014 Deferred income tax assets Future policyholder benefits $ 748.1 $ 792.0 Employee benefits 128.9 124.4 Net operating and capital loss carryover benefits 222.4 198.5 Foreign tax credits carryover benefits 1.6 2.3 Alternative minimum tax credits 12.9 12.9 General business tax credits 35.4 17.7 Other 9.9 32.8 Available-for-sale debt securities 105.5 34.2 Subtotal 1,264.7 1,214.8 Valuation allowance (599.7 ) (613.0 ) Total deferred income tax assets, net of valuation allowance 665.0 601.8 Deferred tax liabilities DAC 227.4 188.1 Investments 181.1 241.7 Accrued liabilities 151.0 137.8 Gross deferred income tax liabilities 559.5 567.6 Net deferred income tax assets $ 105.5 $ 34.2 As of December 31, 2015 , we performed our assessment of the realization of deferred tax assets. This assessment included consideration of all available evidence - both positive and negative - weighted to the extent the evidence was objectively verifiable. In performing this assessment, management considered tax law which generally requires the Company to compute taxable income separately for its life and non-life entities. This guidance impacts our ability to use tax loss carryovers. As part of this assessment, the Company considered the existence of cumulative GAAP pre-tax losses in both the life and non-life subgroups. Management considers this significant negative evidence in its assessment of the realization of deferred tax assets. Due to the significance of the negative evidence as well as the weight given to the objective nature of the cumulative losses in recent years, and after consideration of all available evidence, we concluded that our estimates of future taxable income, timing of the reversal of existing taxable temporary differences and certain tax planning strategies did not provide sufficient positive evidence to assert that it is more likely than not that certain deferred tax assets would be realizable. To the extent the Company can demonstrate the ability to generate sustained profitability in the future, the valuation allowance could potentially be reversed resulting in a benefit to income tax expense. Accordingly, a valuation allowance of $599.7 million has been recorded on net deferred tax assets of $705.2 million . The remaining deferred tax asset of $105.5 million attributable to available-for-sale debt securities with gross unrealized losses does not require a valuation allowance due to our ability and intent to hold these securities until recovery of principal value through sale or contractual maturity, thereby avoiding the realization of taxable losses. This conclusion is consistent with prior periods. The impact of the valuation allowance on the allocation of tax to the components of the financial statements included an increase of $21.3 million in continuing operations, a decrease of $35.2 million in OCI-related deferred tax balances and an increase of $0.6 million recorded to discontinued operations. The tax provision reported in continuing operations of $34.3 million consists primarily of a current tax benefit related to the taxable losses recorded by the life group in 2015. As of December 31, 2015 , the Company has $222.4 million of net operating loss carryovers. Of this amount, $201.2 million related to $574.9 million of federal net operating losses that are scheduled to expire between the years 2021 and 2035. The remaining amount of $21.2 million is attributable to state income tax net operating losses. As of December 31, 2015 , we had deferred income tax assets of $35.4 million related to general business tax credit carryovers, which are expected to expire between the years 2022 and 2031. Additionally, we had deferred income tax assets of $12.9 million related to alternative minimum tax credit carryovers which do not expire. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2013. The IRS audit for 2011 and 2012 tax years closed in 2015. The Company believes no material unanticipated assessments have been identified, and we believe no adjustment to our liability for uncertain tax positions for prior year periods is required. There were no unrecognized tax benefits for the years ended December 31, 2015 , 2014 and 2013 . Management believes that adequate provisions have been made in the financial statements for any potential assessments that may result from tax examinations and other tax related matters for all open tax years. 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. The Company has recorded $1.0 million and $0 of interest for the years ended December 31, 2015 and 2014 . No penalties have been paid or accrued for the years ended December 31, 2015 and 2014 . As part of the intercompany tax sharing agreement, the holding company is required to hold funds in escrow for the benefit of Phoenix Life in the event Phoenix Life incurs future taxable losses. In accordance with its regulatory obligation, the Company funded the escrow with $76.2 million of assets including treasury stock, a surplus note issued by PHL Variable and $23.8 million of cash from the holding company in the fourth quarter of 2015. The escrow amount is primarily attributable to cash due to the holding company for losses utilized and benefited in the 2013 tax return. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Changes in each component of AOCI attributable to the Company for the years ended December 31 are as follows below (net of tax): Accumulated Other Comprehensive Income (Loss) Attributable to The Phoenix Companies, Inc.: ($ in millions) Net Unrealized Gains / (Losses) on Investments where Credit-related OTTI was Recognized Net Unrealized Gains / (Losses) on All Other Investments [1] Net Pension Liability Adjustments Total Balance as of December 31, 2013 $ 7.0 $ 26.9 $ (218.9 ) $ (185.0 ) Change in component during the period before reclassifications 9.5 37.9 (84.8 ) (37.4 ) Amounts reclassified from AOCI (6.6 ) (10.0 ) 4.6 (12.0 ) Balance as of December 31, 2014 9.9 54.8 (299.1 ) (234.4 ) Change in component during the period before reclassifications (10.4 ) (15.3 ) (1.8 ) (27.5 ) Amounts reclassified from AOCI 4.8 (15.5 ) 6.4 (4.3 ) Balance as of December 31, 2015 $ 4.3 $ 24.0 $ (294.5 ) $ (266.2 ) ——————— [1] See Note 7 to these consolidated 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 Operations and Comprehensive Income ($ in millions) For the years ended December 31, 2015 2014 2013 Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: Available-for-sale securities $ (7.4 ) $ 10.1 $ (5.3 ) Net realized capital gains (losses) (7.4 ) 10.1 (5.3 ) Total before income taxes (2.6 ) 3.5 (1.8 ) Income tax expense (benefit) $ (4.8 ) $ 6.6 $ (3.5 ) Net income (loss) Net unrealized gains / (losses) on all other investments: Available-for-sale securities $ 23.8 $ 15.3 $ 37.0 Net realized capital gains (losses) 23.8 15.3 37.0 Total before income taxes 8.3 5.3 12.9 Income tax expense (benefit) $ 15.5 $ 10.0 $ 24.1 Net income (loss) Net pension liability adjustments: Amortization of actuarial gains (losses) $ (11.1 ) $ (8.2 ) $ (11.5 ) Other operating expense Amortization of prior service costs 1.2 1.1 1.2 Other operating expense (9.9 ) (7.1 ) (10.3 ) Total before income taxes (3.5 ) (2.5 ) (3.6 ) Income tax expense (benefit) $ (6.4 ) $ (4.6 ) $ (6.7 ) Net income (loss) Total amounts reclassified from AOCI $ 4.3 $ 12.0 $ 13.9 Net income (loss) |
Employee Benefit Plans and Empl
Employee Benefit Plans and Employment Agreements | 12 Months Ended |
Dec. 31, 2015 | |
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. We have three defined benefit plans. The employee pension plan (“Employee Plan”) provides benefits not to exceed the amount allowed under the Internal Revenue Code. Two supplemental plans (“Supplemental Plans”) provide benefits in excess of the Employee Plan. Retirement benefits under the plans are a function of years of service and compensation. Effective March 31, 2010, all benefit accruals under these defined benefit plans were frozen. We have historically provided certain health care, dental and life insurance benefits (“Other Post-Employment Benefits Plan”) for eligible retired employees. In December 2009, we announced the decision to eliminate retiree medical coverage for active employees whose age plus years of service did not equal at least 65 as of March 31, 2010. Employees who remain eligible must still meet certain other defined criteria to receive benefits. In addition, the cap on the Company’s contribution of retiree medical costs for retirees under the age of 65 was reduced beginning with the 2011 plan year. In October 2012, we announced that effective January 1, 2013, the Company’s contribution for pre-65 retiree medical and for post-65 retiree medical was reduced per covered member. In October 2015, we announced that retiree medical benefits were eliminated for grandfathered active employees who had not met the criteria to retire as of March 31, 2016. In addition, we announced that effective January 1, 2016, the Company’s contribution for pre-65 retiree medical and for post-65 medical was further reduced per covered member. These decisions affected retiree medical contributions for both past service and active employees. Curtailments and plan amendments were recognized as a result of the plan changes. Assumptions Related to Pension and Other Post-Employment Employee Benefit Plans Pursuant to accounting principles related to the Company’s pension and other post-employment obligations to employees under its various benefit plans, the Company is required to make assumptions in order to calculate the related liabilities and expenses each period. The two economic assumptions that have the most impact on pension and other post-employment expense are the weighted-average discount rate and the expected long-term rate of return on plan assets. The weighted-average discount rate assumption is developed using a yield curve approach based upon future pension and other post-employment obligations and currently available market and industry data. The yield curve utilized is comprised of bonds rated Aa/AA or higher by Moody’s Investor Services, Standard & Poor’s and Fitch Ratings Ltd. with maturities between one and fifteen or more years. We use a building block approach in estimating the expected long-term rate of return for plan assets. Historical returns are determined by asset class. The historical relationships between equities, fixed income and other asset classes are reviewed. We apply long-term asset return estimates to the Employee Plan’s target asset allocation to determine the weighted-average long-term return. The Company applied a consistent approach to the determination of the expected rate of return for 2016 . The expected rate of return for 2016 is 7.5% for the Employee Plan. Our long-term asset allocation was determined through modeling long-term returns and asset return volatilities. The allocation reflects proper diversification and was reviewed against other corporate pension plans for reasonability and appropriateness. We use a December 31 measurement date for our pension and other post-employment benefits. The weighted-average assumptions used in calculating the benefit obligations and the net amount recognized for the years ended December 31, 2015 , 2014 and 2013 are presented in the following tables. Principal Rates and Assumptions: For the years ended December 31, 2015 2014 2013 Assumptions Used to Determine Benefit Obligations Discount rate – Employee Plan 4.54 % 4.10 % 4.84 % Discount rate – Supplemental Plans 4.43 % 3.97 % 4.69 % Discount rate – Other Post-Employment Benefits Plan 4.10 % 3.62 % 4.21 % Future compensation increase rate N/A [1] N/A [1] N/A [1] Deferred investment gain/loss amortization corridor – Employee Plan 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Supplemental Plans 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Other Post-Employment Benefits Plan 10.00 % 10.00 % 10.00 % Assumptions Used to Determine Benefit Expense Discount rate – Employee Plan 4.10 % 4.84 % 3.98 % Discount rate – Supplemental Plans 3.97 % 4.69 % 3.81 % Discount rate – Other Post-Employment Benefits Plan 3.62 % 4.21 % 3.37 % Future compensation increase rate N/A [1] N/A [1] N/A [1] Expected long-term rate of return - Employee Plan 7.50 % 7.50 % 7.75 % Deferred investment gain/loss amortization corridor – Employee Plan 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Supplemental Plans 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Other Post-Employment Benefits Plan 10.00 % 10.00 % 10.00 % ——————— [1] The Employee Plan was frozen effective March 31, 2010. For periods subsequent to the plan freeze, salary scale is not applicable. The change in health care cost trend rate does not affect the liabilities or expense associated with retiree medical (due to the cap) or life insurance plans. A one-percentage point change in the dental trend rate would have an insignificant effect on the dental liabilities or expenses. Employee Plan The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation and fair value of plan assets, as well as the funded status and AOCI of the Company’s Employee Plan, for the years ended December 31, 2015 and 2014 . Obligations and Funded Status: Employee Plan ($ in millions) For the years ended December 31, 2015 2014 Change in Benefit Obligation Benefit obligation, beginning of period $ 714.9 $ 638.5 Service cost 3.0 2.3 Interest cost 28.7 30.1 Net actuarial (gain) loss (37.3 ) 79.7 Benefits paid (36.8 ) (35.7 ) Benefit obligation, end of period 672.5 714.9 Change in Plan Assets Fair value of plan assets, beginning of period 540.4 516.5 Plan assets’ actual return (10.2 ) 47.8 Employer contributions — 11.8 Benefits paid (36.8 ) (35.7 ) Fair value of plan assets, end of period 493.4 540.4 Under funded status, end of period [1] $ (179.1 ) $ (174.5 ) AOCI Net actuarial gain (loss) $ (240.2 ) $ (236.4 ) AOCI before income taxes $ (240.2 ) $ (236.4 ) Accumulated benefit obligation $ 672.5 $ 714.9 ——————— [1] Funded status as recognized in the consolidated balance sheets. The Employee Plan is a qualified plan that is funded with assets held in a trust. It is the Company’s practice to make contributions to the qualified pension plan at least sufficient to avoid benefit restrictions under funding requirements of the Pension Protection Act of 2006. This generally requires the Company to maintain assets that are at least 80% of the plan’s liabilities as calculated under the applicable regulations at the end of the prior year. Under these regulations, the qualified pension plan is currently funded above 80% of the funding target liabilities as of December 31, 2015 . To meet the above funding objectives, we made contributions to the pension plan totaling $0 and $11.8 million during 2015 and 2014 , respectively. On August 8, 2014, the Highway and Transportation Funding Act of 2014 was enacted into law, effective immediately. The law extends certain pension funding provisions originally included in the Moving Ahead for Progress in the 21st Century Act (MAP-21). The Company took advantage of this in September of 2014, which resulted in the Company not making any further contributions for the remainder of 2014 and 2015 . We expect to make no contributions over the next 12 months. The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: Components of Pension Benefit Expense: For the years ended December 31, ($ in millions) 2015 2014 2013 Net periodic benefit costs Service cost $ 3.0 $ 2.3 $ 2.1 Interest cost 28.7 30.1 27.0 Plan assets expected return (39.0 ) (37.5 ) (36.1 ) Net loss amortization 8.3 5.9 8.6 Net periodic benefit costs (credit) 1.0 0.8 1.6 Other changes in plan assets and benefit obligations recognized in OCI Deferrals for the period – net actuarial (gain) loss 11.9 69.7 (77.7 ) Amortization for the period – net actuarial gain (loss) (8.3 ) (5.9 ) (8.6 ) Total recognized in OCI 3.6 63.8 (86.3 ) Total recognized in net periodic benefit costs and OCI $ 4.6 $ 64.6 $ (84.7 ) The estimated net actuarial loss that will be expected to be recognized from AOCI into net periodic benefit cost during 2016 is $8.8 million . Employee Plan Assets Our investment policy and strategy employs a total return approach combining equities, fixed income, real estate and other assets to maximize the long-term return of the plan assets for a prudent level of risk. Risk tolerance is determined based on consideration of plan liabilities and plan-funded status. The investment portfolio contains a diversified blend of equity, fixed income, real estate and alternative investments. The equity investments are diversified across domestic and foreign markets, across market capitalizations (large, mid and small cap), as well as growth, value and blend. Derivative instruments are not typically used for implementing asset allocation decisions and are not used in conjunction with leverage. Investment performance is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurement and periodic presentations by asset managers included in the plan. Employee Plan Asset Allocation: As of December 31, 2015 2014 Asset Category Equity securities 53 % 52 % Debt securities 40 % 40 % Real estate — % 2 % Other 7 % 6 % Total 100 % 100 % See Note 12 to these consolidated financial statements for a discussion of the methods employed by us to measure the fair value of invested assets. The following discussion of fair value measurements applies exclusively to our Employee Plan assets. The valuation of the Mercer Group Trust and the Virtus Real Estate Investment Trust are valued based upon the net asset value of the trusts. These investments are classified as Level 2. The valuation of the limited partnerships and real estate investments is based upon the capital value we obtain from the financial statements we receive from the general partner which is deemed an appropriate approximation of the fair value as described in Note 12. These significant valuation inputs are unobservable and these investments are classified as Level 3. The following tables present the level within the fair value hierarchy at which the financial assets of the Employee Plan are measured on a recurring basis at December 31, 2015 and 2014 . Fair Value of Assets by Type and Level: As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total Mercer Group Trust $ — $ 440.9 $ — $ 440.9 Virtus Real Estate Securities Trust — 14.7 — 14.7 Limited partnerships and real estate investments — — 33.3 33.3 Total assets at fair value [1] $ — $ 455.6 $ 33.3 $ 488.9 ——————— [1] Excludes $4.5 million in other assets. Fair Value of Assets by Type and Level: As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total Mercer Group Trust $ — $ 464.0 $ — $ 464.0 Virtus Real Estate Securities Trust — 14.3 — 14.3 Limited partnerships and real estate investments — — 57.6 57.6 Total assets at fair value [1] $ — $ 478.3 $ 57.6 $ 535.9 ——————— [1] Excludes $4.5 million in other assets. Level 3 Financial Assets: For the years ended December 31, ($ in millions) 2015 2014 Balance, beginning of period $ 57.6 $ 55.3 Purchases 4.3 3.4 Sales (34.4 ) (4.2 ) Net appreciation on limited partnerships 5.8 3.1 Balance, end of period $ 33.3 $ 57.6 Supplemental Plans The Company also has two supplemental plans that provide benefits to certain executives in excess of the Employee Plan. These plans are unfunded and represent general obligations of the Company. We fund periodic benefit payments under these plans from cash flow from operations as they become due. The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation, as well as the funded status and AOCI of the Company’s Supplemental Plans, for the years ended December 31, 2015 and 2014 . Obligations and Funded Status: Supplemental Plans ($ in millions) For the years ended December 31, 2015 2014 Change in Benefit Obligation Benefit obligation, beginning of period $ 153.7 $ 137.4 Interest cost 5.9 6.4 Net actuarial (gain) loss (7.7 ) 18.6 Benefits paid (9.2 ) (8.7 ) Benefit obligation, end of period $ 142.7 $ 153.7 Under funded status, end of period [1] $ (142.7 ) $ (153.7 ) AOCI Net actuarial gain (loss) $ (68.7 ) $ (79.5 ) AOCI before income taxes $ (68.7 ) $ (79.5 ) Accumulated benefit obligation $ 142.7 $ 153.7 ——————— [1] Funded status as recognized in the consolidated balance sheets. The components of net periodic benefit costs and other changes in benefit obligations recognized in OCI were as follows: Components of Supplemental Plans Benefit Expense: For the years ended December 31, ($ in millions) 2015 2014 2013 Net periodic benefit costs Service cost $ — $ — $ — Interest cost 5.9 6.4 5.6 Plan assets expected return — — — Net loss amortization 3.1 2.6 2.9 Prior service cost amortization — — — Net periodic benefit costs (credit) 9.0 9.0 8.5 Other changes in benefit obligations recognized in OCI Deferrals for the period – net actuarial (gain) loss (7.7 ) 18.6 (10.8 ) Amortization for the period – net actuarial gain (loss) (3.1 ) (2.6 ) (2.9 ) Total recognized in OCI (10.8 ) 16.0 (13.7 ) Total recognized in net periodic benefit costs and OCI $ (1.8 ) $ 25.0 $ (5.2 ) The estimated net actuarial loss that will be expected to be recognized from AOCI into net periodic benefit cost during 2016 is $2.7 million . Other Post-Employment Benefits Plan We have historically provided our employees with certain health care, dental and life insurance benefits under the plan. The plan is unfunded and represents general obligations of the Company. We fund periodic benefit payments under this plan from cash flow from operations as they become due. The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation, as well as the funded status and AOCI of the Company’s Other Post-Employment Benefit Plan, for the years ended December 31, 2015 and 2014 . Obligations and Funded Status: Other Post-Employment Benefit Plan ($ in millions) For the years ended December 31, 2015 2014 Change in Benefit Obligation Benefit obligation, beginning of period $ 33.4 $ 36.5 Service and interest cost 1.2 1.5 Net actuarial (gain) loss (1.6 ) (0.7 ) Benefits paid (3.4 ) (3.9 ) Plan amendments (6.1 ) — Curtailment (0.6 ) — Benefit obligation, end of period $ 22.9 $ 33.4 Under funded status, end of period [1] $ (22.9 ) $ (33.4 ) AOCI Net actuarial gain (loss) $ 8.2 $ 6.9 Prior service credit (cost) 6.1 9.7 AOCI before income taxes $ 14.3 $ 16.6 Accumulated benefit obligation $ 22.9 $ 33.4 ——————— [1] Funded status as recognized in the consolidated balance sheets. The components of net periodic benefit costs and other changes in benefit obligations recognized in OCI were as follows: Components of Other Post-Employment Benefits Expense: For the years ended December 31, ($ in millions) 2015 2014 2013 Net periodic benefit costs Service cost $ 0.1 $ 0.1 $ 0.2 Interest cost 1.1 1.4 1.3 Net gain amortization (0.3 ) (0.3 ) — Prior service cost amortization (1.2 ) (1.1 ) (1.2 ) Curtailment (9.1 ) — — Net periodic benefit costs (credit) (9.4 ) 0.1 0.3 Other changes in benefit obligations recognized in OCI Deferrals for the period – net actuarial (gain) loss (1.6 ) (0.7 ) (2.2 ) Amortization for the period – net actuarial gain (loss) 0.3 0.3 — Deferrals for prior service credit (cost) (6.1 ) — — Amortization for prior service credit (cost) 9.6 1.1 1.2 Total recognized in OCI 2.2 0.7 (1.0 ) Total recognized in net periodic benefit costs and OCI $ (7.2 ) $ 0.8 $ (0.7 ) The estimated net gain that will be expected to be recognized from AOCI into net periodic benefit cost during 2016 is $1.0 million , of which $0.5 million relates to prior service cost and $0.5 million relates to net actuarial gain (loss). Benefit Payments The following table sets forth amounts of benefits expected to be paid over the next ten years from the Company’s Employee Plan, Supplemental Plans and Other Post-Employment Benefit Plan as of December 31, 2015 : 10-Year Benefit Payout Projection: ($ in millions) Employee Plan Supplemental Plans Other Total 2016 $ 36.4 $ 9.5 $ 2.5 $ 48.4 2017 36.7 9.6 2.3 48.6 2018 37.2 9.6 2.2 49.0 2019 37.7 9.6 2.1 49.4 2020 38.3 9.4 2.0 49.7 2021 to 2025 204.0 46.9 8.1 259.0 401(k) Plan The Company’s employees are eligible to participate in a 401(k) plan. Under this plan, employees may contribute up to 60% of eligible base salary, and then the Company matches employee’s contributions at certain percentage levels based on years of service. Certain employees can elect to defer a certain percentage of their base pay into the Company’s Non-Qualified Excess Investment Plan and receive a Company match based upon the same formula in our 401(k) plan. All balances under this plan are unfunded general obligations of the Company, which the Company hedges by making contributions to a trust subject to the claims of our creditors in certain circumstances. Expense recognized related to the 401(k) plan was $4.4 million , $4.3 million and $4.0 million in 2015 , 2014 and 2013 , respectively. Additional Retirement Benefits We have agreements with certain of our employees that provide for additional retirement benefits. As of December 31, 2015 and 2014 , the estimated liability for these agreements was $16.9 million and $18.1 million , respectively. We fund periodic benefit payments under this plan from cash flows from operations as they become due. Employment Agreements We have entered into agreements with certain key executives of the Company that will, in certain circumstances, provide separation benefits upon the termination of the executive’s employment by the Company for reasons other than death, disability, cause or retirement, or by the executive for “good reason,” as defined in the agreements. The agreements provide this protection only if the termination occurs following (or is effectively connected with) the occurrence of a change of control, as defined in the agreements. As soon as reasonably possible upon a change in control, as so defined, we are required to make an irrevocable contribution to a trust in an amount sufficient to pay benefits due under these agreements. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments We provide share-based compensation to certain of our employees and non-employee directors, as further described below. The compensation cost that has been charged against income for these plans is summarized in the following table: Share-Based Compensation Plans: For the years ended December 31, ($ in millions) 2015 2014 2013 Compensation cost charged to income from continuing operations $ 2.8 $ 3.0 $ 4.6 Income tax expense (benefit) before valuation allowance $ (1.0 ) $ (1.0 ) $ (1.6 ) We did not capitalize any cost of stock-based compensation during the three years ended December 31, 2015 . Stock options Under its Stock Incentive Plan, the Company is authorized to issue share options equal to approximately 315,000 shares of common stock to officers and employees, less the number of share options issuable under the Directors’ Stock Plan. The Directors’ Stock Plan authorizes the issuance of share options equal to approximately 51,250 shares of common stock. Each option, once vested, entitles the holder to purchase one share of our common stock. The employees’ options vest over a three -year period while the directors’ options vest immediately. Once vested, options become exercisable. For stock options awarded, we recognize expense over the vesting period equal to their fair value at issuance. We calculate the fair value of options using the Black-Scholes option valuation model. A summary of the stock option activity as of and for the year ended December 31, 2015 is as follows: Summary of Stock Option Activity: For the years ended December 31, 2015 ($ in millions, except share data) Common Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, beginning of period 50,367 $ 187.38 2.52 $ 0.10 Granted — — — — Exercised — — — — Forfeited — — — — Canceled/expired (15,957 ) 202.94 — — Outstanding, end of period 34,410 $ 180.17 2.13 $ — Vested and exercisable, end of period 34,410 $ 180.17 2.13 $ — We did not grant any options for the years ended December 31, 2015 , 2014 and 2013 and all options outstanding at December 31, 2015 and 2014 were previously vested. There were 0 , 1,472 and 0 options exercised for the years ended December 31, 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , there were no unrecognized compensation costs related to non-vested stock options. Restricted stock units and Restricted stock We have restricted stock plans under which we grant RSUs to employees and non-employee directors. RSUs granted to employees are performance-vested, time-vested or a combination thereof. Each RSU, once vested, entitles the holder to one share of our common stock when the restriction expires. We recognize compensation expense over the vesting period of the RSUs, which is generally three years for each award. A summary of the RSU activity as of and for the year ended December 31, 2015 is as follows: Summary of RSU Activity: For the years ended Time-Vested Number Weighted- Average Grant Date Fair Value Outstanding, beginning of period 96,087 $ 49.25 Awarded 68,506 24.00 Adjustment for performance results — — Conversion of performance-contingent awards — — Converted to common shares (19,278 ) 41.93 Forfeited (5,137 ) 19.23 Outstanding, end of period 140,178 $ 39.01 The shares underlying these awards will be issued upon vesting unless the participant elects to defer receipt. Deferred awards will be issued on each employee’s and each director’s respective termination or retirement. RSUs Awarded: For the years ended December 31, 2015 2014 2013 Number Weighted- Average Grant Date Fair Value Number Weighted- Average Grant Date Fair Value Number Weighted- Average Grant Date Fair Value Time-vested RSUs awarded 68,506 $ 24.00 13,063 $ 55.81 18,251 $ 33.76 RSU Values: For the years ended December 31, ($ in millions) 2015 2014 2013 Intrinsic value of RSUs converted $ 0.3 $ 0.2 $ 2.3 Total grant date fair value of RSUs vested converted to common shares $ 0.8 $ 0.2 $ 3.6 There are no RSUs subject to future issuance based on the achievement of market criteria established under certain of our incentive plans. Liability Awards The Company issues cash-settled awards with payouts linked to the performance of the Company’s stock to certain employees and executive officers. Each recipient is granted a base cash payout that is adjusted according to a formula that measures the performance of the Company’s stock relative to the performance of a specified benchmark index over the measurement period. The fair value of the unsettled liability awards is remeasured at each reporting date with changes in fair value recognized as expense ratably over the measurement period. As of December 31, 2015 and 2014 , a liability of $2.6 million and $1.4 million , respectively, was accrued for these awards. Cash payments of $0 and $4.7 million were made related to these awards for the years ended December 31, 2015 and 2014 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
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: For the years ended December 31, (shares in thousands) 2015 2014 2013 Weighted-average common shares outstanding 5,751 5,748 5,735 Weighted-average effect of dilutive potential common shares: Restricted stock units 26 5 27 Employee stock options — 2 2 Potential common shares 26 7 29 Less: Potential common shares excluded from calculation due to net losses (26 ) (7 ) — Dilutive potential common shares — — 29 Weighted-average common shares outstanding, including dilutive potential common shares 5,751 5,748 5,764 As a result of the net loss from continuing operations for the years ended December 31, 2015 and 2014 , 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 RSUs and options would have been anti-dilutive to the earnings per share calculation. During 2013 , we reported net income from continuing operations and included all potentially dilutive common shares in the calculation of diluted earnings per share. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Life and Annuity derives revenue from premiums, fee income and cost of insurance (“COI”) charges, net investment income and realized gains (losses). Saybrus derives revenue primarily from fees collected for advisory and distribution services. Segment Information on Revenues: For the years ended December 31, ($ in millions) 2015 2014 2013 Life and Annuity $ 1,664.1 $ 1,640.8 $ 1,689.6 Saybrus Partners [1] 43.3 37.5 26.8 Less: Intercompany revenues [2] 12.6 11.4 8.8 Total revenues $ 1,694.8 $ 1,666.9 $ 1,707.6 ——————— [1] Includes intercompany commission revenue of $12.6 million , $11.5 million and $9.2 million for the years ended December 31, 2015 , 2014 and 2013 . [2] All intercompany balances are eliminated in consolidating the financial statements. Operating income is a non-U.S. GAAP financial measure. Management believes that these measures provide additional insight into the underlying trends in our operations however, our non-U.S. GAAP financial measures should not be considered as substitutes for net income or measures that are derived from or incorporate net income and may be different from similarly titled measures of other companies. Investors should evaluate both U.S. GAAP and non-U.S. GAAP financial measures when reviewing our performance. Operating income is calculated by excluding realized investment gains (losses) as their amount and timing may be subject to management’s investment decisions. Results of Operations by Segment as Reconciled to Consolidated Net Income (Loss): For the years ended December 31, ($ in millions) 2015 2014 2013 Life and Annuity operating income (loss) $ (134.8 ) $ (160.2 ) $ 19.0 Saybrus Partners operating income (loss) 8.3 6.2 3.1 Less: Applicable income tax expense (benefit) (34.3 ) 10.5 8.5 Income (loss) from discontinued operations, net of income taxes (2.0 ) (3.5 ) (2.9 ) Net realized investment gains (losses) (32.8 ) (41.2 ) 16.0 Less: Net income (loss) attributable to noncontrolling interests 6.7 4.0 0.7 Net income (loss) $ (133.7 ) $ (213.2 ) $ 26.0 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 | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations 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. Our total policy liabilities and accruals were $35.9 million and $39.3 million as of December 31, 2015 and 2014 , respectively. Our total amounts recoverable from retrocessionaires related to paid losses were $0.7 million and $0.1 million as of December 31, 2015 and 2014 , respectively. Losses of $1.8 million in 2015 , $3.4 million in 2014 and $1.9 million in 2013 were recognized primarily related to adverse developments which occurred during these respective years. See Note 22 to these consolidated financial statements for additional discussion on remaining liabilities of our discontinued reinsurance operations. |
Statutory Financial Information
Statutory Financial Information and Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulated Operations [Abstract] | |
Statutory Financial Information and Regulatory Matters | Statutory Financial Information and Regulatory Matters Our insurance subsidiaries are required to file, with state regulatory authorities, annual statements prepared on an accounting basis prescribed or permitted by such authorities. As of December 31, 2015 , statutory surplus differs from equity reported in accordance with U.S. GAAP for life insurance companies primarily as follows: • policy acquisition costs are expensed when incurred; • surplus notes are included in surplus rather than debt; • post-employment benefit expense allocated to Phoenix Life relate only to vested participants and expense is based on different assumptions and reflect a different method of adoption; • life insurance reserves are based on different assumptions; and • deferred tax assets are limited to amounts reversing in a specified period with an additional limitation based upon 10% or 15% of statutory surplus, dependent on meeting certain risk-based capital (“RBC”) thresholds. The information below is taken from the annual statement filed with state regulatory authorities. Statutory Financial Data: [1] As of or for the years ended December 31, ($ in millions) 2015 2014 2013 Statutory capital, surplus and AVR Phoenix Life [2][4] $ 535.3 $ 752.2 $ 735.2 PHL Variable [5] 209.3 213.7 235.2 Other 27.3 37.5 37.5 Total statutory capital, surplus and AVR $ 771.9 Statutory net income (loss) Phoenix Life [3][4] $ (660.7 ) $ 132.5 $ (21.0 ) PHL Variable [5] (14.0 ) (41.1 ) (86.1 ) Other (0.2 ) (0.3 ) (1.0 ) Total statutory net income (loss) $ (674.9 ) $ 91.1 $ (108.1 ) ——————— [1] Amounts in statements filed with state regulatory authorities differ from audited financial statements. [2] Prior to July 1, 2015, the effective date of the de-stack, Phoenix Life’s capital and surplus included the capital and surplus of its subsidiaries. [3] Phoenix Life’s 2015 statutory net loss includes $687.9 million of realized losses relating to the de-stacking of Phoenix Life’s life subsidiaries. There was an offsetting unrealized capital gain for the same amount, resulting in no impact to capital and surplus. [4] Statutory capital, surplus and AVR reflected in the annual audited financial statements for Phoenix Life for the years ended December 31, 2014 and December 31, 2013 was $666.6 million and $713.2 million , and statutory net income (loss) for those same periods was $116.3 million and $(17.8) million . The primary difference between the annual statement filed and the audited financial statements in 2014 was the impact of the COI settlement, which due to the timing of the settlement in the second quarter of 2015 was not reflected in the annual statement filed with the state regulatory authorities but was recorded in the audited financial statements. [5] Statutory capital, surplus and AVR reflected in the annual audited financial statements for PHL Variable for the years ended December 31, 2014 and December 31, 2013 was $156.5 million and $259.9 million , and statutory net income (loss) for those same periods was $(88.3) million and $(65.4) million . The primary difference between the annual statement filed and the audited financial statements in 2014 was the impact of the COI settlement, which due to the timing of the settlement in the second quarter of 2015 was not reflected in the annual statement filed with the state regulatory authorities but was recorded in the audited financial statements As a result of discussions with its regulators related to the intercompany reinsurance treaty between Phoenix Life and PHL Variable executed in the second quarter of 2015, the Company’s operating subsidiaries were de-stacked, effective July 1, 2015. The impact of the de-stack on Phoenix Life’s capital and surplus was $262.2 million , which included $228.2 million for the reduction in subsidiary investment and $34.0 million for the related decrease in admitted deferred tax assets. Phoenix Life’s statutory basis capital and surplus (including AVR) decreased from $752.2 million at December 31, 2014 to $535.3 million at December 31, 2015 . Prior to the de-stacking, Phoenix Life’s surplus decreased as a result of the $48.5 million COI settlement in the first quarter of 2015, and increased $153.5 million as a result of the execution of an intercompany reinsurance treaty in the second quarter. In the third quarter, Phoenix Life’s surplus decreased by $262.2 million as a result of the de-stacking. During 2015 , Phoenix Life also declared and paid $59.9 million of dividends to Phoenix. PHL Variable’s statutory basis capital and surplus decreased from $213.7 million at December 31, 2014 to $209.3 million at December 31, 2015 . Reductions in surplus were driven primarily by worse than expected mortality in the universal life business and the impact of PHL Variable’s $36.4 million portion of the COI settlement in the first quarter of 2015. The reductions in PHL Variable’s surplus were partially offset by the increase in surplus of $52.5 million as a result of the execution of the intercompany reinsurance treaty in the second quarter and $33.1 million in capital contributions from Phoenix. Regulatory Capital Requirements The Company’s insurance companies’ states of domicile require reporting of RBC. RBC is based on a formula calculated by applying factors to various assets, premium and statutory reserve items taking into account the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk and business risk. The insurance laws give the states explicit regulatory authority to require various actions by, or take various actions against, insurers whose total adjusted capital does not exceed certain RBC levels. All of the Company’s statutory subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. As of December 31, 2015 and 2014 , Phoenix Life’s RBC was in excess of 400% of Company Action Level (“CAL” or the level where a life insurance enterprise must submit a comprehensive plan to state insurance regulators), PHL Variable RBC was 200% of CAL, and each of its other insurance subsidiaries were at least 200% . Dividend Restrictions Dividends to Phoenix from its insurance subsidiaries are restricted by insurance regulation. The payment of dividends by Phoenix Life is limited under the insurance company laws of New York, and the payment of dividends by PHL Variable is limited under the insurance company laws of Connecticut. In addition to the statutory limitations on paying dividends, the Company also considers the level of statutory capital and RBC of the entity and other liquidity requirements. New York Insurance Law allows a domestic stock life insurer to distribute an ordinary dividend where the aggregate amount of such dividend in any calendar year does not exceed the greater of 10% of its surplus to policyholders as of the immediately preceding calendar year or its net gain from operations for the immediately preceding calendar year, not including realized capital gains, not to exceed 30% of its surplus to policyholders as of the immediately preceding calendar year. The foregoing ordinary dividend can only be paid out of earned surplus, which is defined as an insurer’s positive unassigned funds, excluding 85% of the change in net unrealized gains or losses less capital gains tax for the preceding year. Under this section, an insurer cannot distribute an ordinary dividend in the calendar year immediately following a calendar year for which the insurer’s net gain from operations, not including realized capital gains, was negative. If a company does not have sufficient positive earned surplus to pay an ordinary dividend, an ordinary dividend can still be paid where the aggregate amount is the lesser of 10% of its surplus to policyholders as of the immediately preceding calendar year or its net gain from operations for the immediately preceding calendar year, not including realized capital gains. Based on this calculation, Phoenix Life would be able to pay a dividend of $37.2 million in 2016 . During the year ended December 31, 2015 , Phoenix Life declared and paid $59.9 million in dividends. Phoenix Life may have less flexibility to pay dividends to the parent company if we experience declines in either statutory capital or RBC in the future. As of December 31, 2015 , we had $535.3 million of statutory capital, surplus and AVR. In Connecticut, without prior approval by the insurance commissioner, the aggregate amount of dividends during any twelve month period shall not exceed the greater of (i) 10% of surplus to policyholders for the preceding calendar year or (ii) net gain from operations for such year. Connecticut law states that no dividend or other distribution exceeding an amount equal to an insurance company’s earned surplus may be paid without prior approval of the insurance commissioner. Based on this calculation, PHL Variable has no dividend capacity in 2016 . |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment are included in other assets in our consolidated balance sheets. Cost and Carrying Value of Premises and Equipment: As of December 31, ($ in millions) 2015 2014 Cost Carrying Value Cost Carrying Value Real estate $ 100.5 $ 31.7 $ 99.8 $ 32.6 Equipment and software 76.1 11.5 73.8 12.2 Leasehold improvements 3.0 2.8 0.4 0.2 Premises and equipment cost and carrying value 179.6 $ 46.0 174.0 $ 45.0 Accumulated depreciation and amortization (133.6 ) (129.0 ) Premises and equipment $ 46.0 $ 45.0 Depreciation and amortization expense for premises and equipment for 2015 , 2014 and 2013 totaled $5.5 million , $6.0 million and $8.2 million , respectively. Rental expenses for operating leases, principally with respect to buildings, amounted to $0.8 million , $0.6 million and $0.6 million in 2015 , 2014 and 2013 , respectively. Future minimum rental payments under non-cancelable operating leases were $6.0 million as of December 31, 2015 , payable as follows: in 2016 , $0.8 million ; in 2017 , $0.8 million ; in 2018 , $0.8 million ; in 2019 , $0.5 million ; in 2020 , $0.3 million and thereafter, $2.8 million . All future obligations for leased property of our discontinued operations were assumed by the buyer upon the completion of the sale on June 23, 2010. See Note 19 to these consolidated financial statements for additional information. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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 ultimate 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 beyond the amounts already reported in these financial statements. 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 Phoenix and PHL Variable are subject to a Securities and Exchange Commission (the “SEC”) 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, which was approved by the SEC in March 2014 (the “March 2014 Order”) and was subsequently amended by an amended SEC administrative order approved by the SEC in August 2014 (the March 2014 Order, as amended, the “Amended Order”). The Amended Order and the March 2014 Order (collectively, the “Orders”), directed Phoenix and PHL Variable 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 remain subject to these obligations. Pursuant to the Orders, Phoenix and PHL Variable were required to file certain periodic SEC reports in accordance with the timetables set forth in the Orders. All of such filings have been made. Phoenix and PHL Variable paid civil monetary penalties to the SEC in the aggregate amount of $1.1 million pursuant to the terms of the Orders in 2014. Cases Brought by Policy Investors 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 and PHL Variable 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 On November 18, 2011, Martin Fleisher and another plaintiff (the “Fleisher Litigation”), on behalf of themselves and others similarly situated, filed suit against Phoenix Life 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.)) challenging COI rate adjustments implemented by Phoenix Life in 2010 and 2011 in certain universal life insurance policies. The complaint sought damages for breach of contract. The class certified by the court was limited to holders of Phoenix Life policies issued in New York subject to New York law and subject to Phoenix Life’s 2011 COI rate adjustment. PHL Variable has been named as a defendant in six actions challenging its COI rate adjustments in certain universal life insurance policies implemented concurrently with the Phoenix Life adjustments. Phoenix Life and PHL Variable are referred to as the “Phoenix Life Companies.” Five cases have been brought against PHL Variable, while one case has been brought against both PHL Variable and Phoenix Life. These six cases, only one of which is styled as a class action, have been brought 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”); (2-5) 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”); (4: C.A. No. 3:14-cv-00555-WWE; U.S. Dist. Ct; D. Conn., complaint originally filed on March 6, 2013, in the District of Delaware and transferred by order dated April 22, 2014, to the District of Connecticut; and 5: C.A. No. 3:14-cv-01398-WWE, U.S. Dist. Ct; D. Conn., complaint filed on September 23, 2014, and amended on October 16, 2014, to add Phoenix Life as a defendant, and consolidated with No. 3:14-cv-00555-WWE (collectively the “U.S. Bank Conn. Litigations”)); and (6) SPRR LLC (C.A. No. 1:14-cv-8714-CM; U.S. Dist. Ct.; S.D.N.Y., complaint filed on October 31, 2014; the “SPRR Litigation”). SPRR LLC filed suit against PHL Variable, on behalf of itself and others similarly situated, challenging COI rate adjustments implemented by PHL Variable in 2011. The Tiger Capital Litigation, the two U.S. Bank N.Y. Litigations and the SPRR Litigation were assigned or reassigned to the same judge as the Fleisher Litigation. The plaintiff in the Tiger Capital Litigation sought damages for breach of contract and declaratory relief. The plaintiff in the U.S. Bank N.Y. Litigations and the U.S. Bank Conn. Litigations sought damages and attorneys’ fees for breach of contract and other common law and statutory claims. The plaintiff in the SPRR Litigation sought damages for breach of contract for a nationwide class of policyholders. The Phoenix Life Companies reached an agreement as of April 30, 2015, memorialized in a formal settlement agreement executed on May 29, 2015, with SPRR, LLC, Martin Fleisher, as trustee of the Michael Moss Irrevocable Life Insurance Trust II, and Jonathan Berck, as trustee of the John L. Loeb, Jr. Insurance Trust (collectively, the SPRR Litigation and the Fleisher Litigation plaintiffs referred to as the “Plaintiffs”), to resolve the Fleisher Litigation and SPRR Litigation (the “Settlement”). A motion for preliminary approval of the Settlement was filed with the United States District Court for the Southern District of New York on May 29, 2015 and on June 3, 2015, the court granted preliminary approval of the Settlement and ordered notice be given to class members. The proposed Settlement class consists of all policyholders that were subject to the 2010 or 2011 COI rate adjustments (collectively, the “Settlement Class”), including the policies within the above-named COI cases. The Phoenix Life Companies agreed to pay a total of $48.5 million , as reduced for any opt-outs, in connection with the Settlement. The Phoenix Life Companies agreed not to impose additional increases to COI rates on policies participating in the Settlement Class through the end of 2020, and not to challenge the validity of policies participating in the Settlement Class for lack of insurable interest or misrepresentations in the policy applications. Under the Settlement, policyholders are members of the Settlement Class, including those which have filed individual actions relating to COI rate adjustments, may opt out of the Settlement and separately litigate their claims. The opt-out period expired on July 17, 2015 and opt-out notices have been received by the Phoenix Life Companies, including from U.S. Bank, a party to four COI cases. On September 9, 2015, the judge in the Fleisher and SPRR Litigations entered an order approving of the Settlement and final judgment was entered on December 9, 2015. On June 3, 2015, the parties to the Tiger Capital Litigation advised the court of a settlement of the Tiger Capital Litigation, which includes Tiger Capital, LLC’s participation in the class Settlement. The settlement of the Tiger Capital Litigation was on a basis that will not have a material impact on the Company’s financial statements. The Tiger Capital Litigation was closed by the court on October 21, 2015. On September 28, 2015, the Plaintiff in the U.S. Bank N.Y. Litigations and PHL Variable filed a joint stipulation of dismissal of the U.S. Bank N.Y. Litigations with prejudice pursuant to an agreement to settle. The U.S. Bank Conn. Litigations are proceeding, and the Plaintiff seeks damages and attorney’s fees for breach of contract and other common law and statutory claims. During the third quarter, the Company recorded additional litigation charges related to these matters. In addition, the Company has adjusted its actuarial reserves to reflect the estimated impact on future revenues of these settlement activities. 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. On March 23, 2015, an Administrative Law Judge (“ALJ”) in Wisconsin ordered PHL Variable to pay restitution to current and former owners of seven policies and imposed a fine on PHL Variable which, in a total amount, does not have a material impact on PHL Variable’s financial position (Office of the Commissioner of Insurance Case No. 13- C35362). PHL Variable disagrees with the ALJ’s determination and has appealed the order. For any cases or regulatory directives not resolved by the Settlement, 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, including by appeal if necessary. For any matters not resolved by the Settlement, the outcome is uncertain and any potential losses cannot be reasonably estimated. Cases Brought by Policyholders On October 30, 2009, Brian S. Shevlin, Keith P. Shevlin, and Erin Taylor (the “Shevlins” or “Plaintiffs”) brought a purported class action suit against Phoenix Life and Phoenix (collectively “Defendants”) in the Superior Court of New Jersey, Mercer County, Brian S. Shevlin at al. v. Phoenix Life Insurance et al., Docket No. MER-L-2792-09. The Shevlins, on behalf of themselves and a class of owners of closed block policies established upon the demutualization of Phoenix Life in 2001, challenged the reduction of dividends on those policies following 2006 and 2009 dividend scale changes. Defendants removed the suit to the United States District Court for the District of New Jersey (Case No. 09-cv-06323). On August 24, 2010, the District Court partially granted and partially denied Defendants’ motion to dismiss, and shortly thereafter Plaintiffs filed a Second Amended Complaint. Plaintiffs allege that the reduction of dividends breached the terms of their policies with Phoenix Life, and unjustly enriched Phoenix. On June 30, 2014, the court denied Phoenix’s motion for summary judgment, and instructed the parties to proceed to brief class certification. On February 9, 2016, the court denied the pending motion for class certification without prejudice to renew it if a planned mediation was unsuccessful in resolving the action. Following a mediation session that did not resolve the action, the plaintiffs refiled their motion for class certification. The Company believes that it has meritorious defenses to the plaintiffs’ claims and intends to defend this matter vigorously. The outcome of this litigation and any potential award of damages are uncertain. Shareholder Litigation On September 28, 2015, Phoenix entered into a definitive merger agreement to be acquired by Nassau. On October 26, 2015, a putative class action lawsuit was filed by a purported shareholder of Phoenix in the Superior Court of the State of Connecticut challenging the proposed merger transaction. The lawsuit alleges that the individual members of Phoenix’s Board of Directors breached their fiduciary duties to the Phoenix shareholder by agreeing to the proposed merger transaction for inadequate consideration and through an allegedly flawed sales process, and that the defendant companies – Phoenix, Nassau and Davero Merger Sub Corp. (a wholly owned subsidiary of Nassau) – aided and abetted such alleged breaches. The plaintiff in the action, which was styled Thomas White v. The Phoenix Companies, Inc., et. al., No. HHD-CV15--6063180-S (Conn. Super. Ct., Hartford), sought, among other things, an order enjoining the merger and, in the event the merger is completed, rescission and/or damages as a result of the alleged violations of law, as well as fees and costs. From late November to early December 2015, Phoenix and the plaintiff engaged in arm’s-length negotiations for the expedited production of certain documents. On December 10, 2015, Phoenix and the other defendants executed a Memorandum of Understanding (“MOU”) with the plaintiff providing for settlement of the suit based on certain supplemental disclosures to be released to Phoenix shareholders in advance of the December 17, 2015 shareholder vote. The settlement reflected in the MOU is subject to certain confirmatory discovery by the plaintiffs in the litigation and subject to the approval of the Court, among other things. The defendants have vigorously denied, and continue vigorously to deny, that they have committed any violation of law or engaged in any of the wrongful acts that were alleged in the litigation. The MOU outlines the terms of the agreement in principle to settle and release all claims which were or could have been asserted in the litigation. The parties to the MOU will seek to enter into a stipulation of settlement that will be presented to the Court for final approval. The stipulation of settlement will be subject to customary conditions, including approval by the Court, which will consider the fairness, reasonableness and adequacy of the settlement. The stipulation of settlement will provide for, among other things, the conditional certification of the Litigation as a non opt-out class action. The stipulation of settlement will provide for the release of any and all claims arising from the merger, subject to approval by the Court. The release will not become effective until the stipulation of settlement is approved by the Court. In connection with the settlement, subject to the ultimate determination of the Court, counsel for plaintiff may receive an award of reasonable fees. Neither this payment nor the settlement will affect the consideration to be received by Phoenix stockholders in the merger or the timing of the anticipated closing of the merger. There can be no assurance that the settling parties will ultimately enter into a stipulation of settlement or that the Court will approve the settlement even if the settling parties were to enter into the stipulation. In such event, or if the merger is not consummated for any reason, the proposed settlement will be null and void and of no force and effect. In January 2016, named-plaintiff, Thomas White, and non-party, Stephen Bushansky, a member of the putative class, moved to substitute Stephen Bushansky as plaintiff, which motion was granted. Consent Solicitation Litigation On February 8, 2016, plaintiff Kenneth Roth filed a putative class action complaint (“Complaint”) in New York Supreme Court (New York County) (the “Court”) against The Phoenix Companies, Inc. (“Phoenix”) and U.S. Bank National Association in its capacity as indenture trustee (the “Trustee”), Index No. 650634/2016 (the “Litigation”), relating to a January 7, 2016 consent solicitation launched by Phoenix in connection with its 7.45% Quarterly Interest Bonds due 2032 (the “Consent Solicitation”). The Complaint asserts claims against Phoenix for breach of contract, breach of the covenant of good faith and fair dealing, negligent misrepresentation, a temporary restraining order, a preliminary and permanent injunction, and a declaratory judgment. In addition to damages, costs, and attorneys’ fees, the Complaint asks the Court to temporarily restrain, and preliminarily and permanently enjoin the Consent Solicitation or, alternatively, declare that the proposed supplemental indenture is null and void. The Complaint further alleges that the Trustee breached its fiduciary duty to bondholders by, inter alia , allowing the Consent Solicitation to be issued. Phoenix believes that the lawsuit is without merit and that no additional or amended disclosure is required to supplement the Consent Solicitation, and that no changes to the proposed supplemental indenture are required, under applicable laws; however, to eliminate the burden, expense and uncertainties inherent in such litigation, and without admitting any liability or wrongdoing, Phoenix agreed, pursuant to the terms of a MOU, to: (a) revise the proposed Fourth Supplemental Indenture to make available to bondholders certain information in connection with Phoenix’s reporting obligations under Section 704, as amended by the Fourth Supplemental Indenture, (b) make available financial statements and related information of Phoenix not only to current bondholders but also to prospective bondholders, securities analysts and market makers, as detailed in the supplemental disclosures to the Consent Solicitation, and (c) make certain other supplemental disclosures to the Consent Solicitation. On February 24, 2016, the parties to the Litigation (the “Settling Parties”) entered into the MOU providing for the settlement of the Litigation, subject to the approval of the Court, among other things. The defendants have vigorously denied, and continue vigorously to deny, that they have committed any violation of law or engaged in any of the wrongful acts that were alleged in the Litigation. The MOU outlines the terms of the Settling Parties’ agreement in principle to settle and release all claims which were or could have been asserted in the Litigation. The parties to the MOU will seek to enter into a stipulation of settlement that will be presented to the Court for final approval. The stipulation of settlement will be subject to customary conditions, including approval by the Court, which will consider the fairness, reasonableness and adequacy of the settlement. The stipulation of settlement will provide for, among other things, the release of any and all claims arising from or relating to the Consent Solicitation, subject to approval by the Court. The release will not become effective until the stipulation of settlement is approved by the Court. In connection with the settlement, subject to the ultimate determination of the Court, counsel for plaintiff may receive an award of reasonable fees. Neither this payment nor the settlement will affect the consent fee to be received by consenting Phoenix bondholders in the Consent Solicitation. There can be no assurance that the Settling Parties will ultimately enter into a stipulation of settlement or that the Court will approve the settlement even if the Settling Parties were to enter into the stipulation. In such event the proposed settlement will be null and void and of no force and effect. Regulatory matters State regulatory bodies, the SEC, the Financial Industry Regulatory Authority (“FINRA”), the Internal Revenue Service (“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 restatements of its prior period financial statements 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 final 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 and its market conduct examination on December 29, 2014. Unclaimed Property Inquiries 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 consolidated 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. See Note 19 to these consolidated financial statements for additional information regarding discontinued operations. |
Other Commitments
Other Commitments | 12 Months Ended |
Dec. 31, 2015 | |
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 2018. As of December 31, 2015 , the Company had remaining commitments of $38.6 million . As part of its normal investment activities, the Company enters into agreements to fund limited partnerships that make debt and equity investments. As of December 31, 2015 , the Company had unfunded commitments of $308.2 million under such agreements, of which $66.7 million is expected to be funded by December 31, 2016 . See Note 7 to these consolidated financial statements for additional information on VIEs. On January 5, 2015, the Company committed to purchase $100.0 million in investment grade rated infrastructure bonds through an outside investment advisor. These purchases are expected to be made over 24 months. The arrangement may be terminated prior to funding the committed amount at the discretion of the Company subject to certain standard provisions for notice and immaterial fees. The debt will be held as available-for-sale debt securities on the consolidated balance sheets. As of December 31, 2015 , $13.5 million has been funded. In addition, the Company enters into agreements to purchase private placement investments. As of December 31, 2015 , the Company had open commitments of $150.8 million under such agreements which are expected to be funded by August 15, 2017. |
Condensed Financial Information
Condensed Financial Information of The Phoenix Companies, Inc and Other Supplementary Data | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data | Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data A summary of The Phoenix Companies, Inc. (parent company only) financial information is presented below. See Notes 8 and 15 to these consolidated financial statements for additional information regarding indebtedness and accrued pension and post-employment benefits, respectively. Parent Company Financial Position: As of December 31, ($ in millions) 2015 2014 Assets Available-for-sale debt securities, at fair value $ 1.9 $ 5.1 Affiliate securities 30.0 30.0 Short-term investments 34.9 49.9 Fair value investments 18.8 23.5 Cash and cash equivalents 27.0 11.2 Investments in subsidiaries 724.0 880.8 Advances to subsidiaries 10.0 — Other assets 30.1 30.7 Total assets $ 876.7 $ 1,031.2 Liabilities and Stockholders’ Equity Indebtedness (Note 8) $ 268.6 $ 268.6 Accrued pension and post-employment benefits (Note 15) 361.6 380.0 Due to subsidiaries 3.2 7.3 Capital contribution payable 23.1 — Other liabilities 59.0 48.7 Total liabilities 715.5 704.6 Total stockholders’ equity 161.2 326.6 Total liabilities and stockholders’ equity $ 876.7 $ 1,031.2 Parent Company Results of Operations: For the years ended December 31, ($ in millions) 2015 2014 2013 Revenues Equity in undistributed income (loss) of subsidiaries $ (71.3 ) $ (99.0 ) $ 44.1 Investment income 3.6 4.5 1.2 Net realized investment gains (losses) (1.0 ) 0.6 3.6 Total revenues (68.7 ) (93.9 ) 48.9 Interest expense 20.4 20.4 20.4 Other operating expenses 30.6 102.6 70.7 Total expenses 51.0 123.0 91.1 Income (loss) before income taxes (119.7 ) (216.9 ) (42.2 ) Income tax expense (benefit) 14.0 (3.7 ) (68.7 ) Income (loss) from continuing operations (133.7 ) (213.2 ) 26.5 Income (loss) from discontinued operations of subsidiaries — — (0.5 ) Net income (loss) (133.7 ) (213.2 ) 26.0 Less: Income (loss) attributable to noncontrolling interests — — — Net income (loss) $ (133.7 ) $ (213.2 ) $ 26.0 Parent Company Cash Flows: For the years ended December 31, ($ in millions) 2015 2014 2013 Operating Activities Interest income received $ 3.3 $ 3.7 $ 0.9 Interest paid (20.0 ) (20.0 ) (20.0 ) Taxes paid (3.6 ) — (2.2 ) Taxes received — — 3.5 Payments to/from subsidiaries (27.4 ) (113.4 ) 52.5 Other operating activities, net (13.8 ) (13.8 ) (14.9 ) Cash provided by (used for) operating activities (61.5 ) (143.5 ) 19.8 Purchases of available-for-sale debt securities — — (30.0 ) Purchases of short-term investments (144.6 ) (589.4 ) (579.5 ) Purchases of derivative instruments (0.9 ) — — Sales, repayments and maturities of available-for-sale debt securities 3.2 5.0 1.0 Sales, repayments and maturities of short-term investments 159.7 659.4 564.7 Subsidiary loan payments received — 3.3 3.0 Dividends received from subsidiaries 69.9 56.0 74.2 Capital contributions to subsidiaries (10.0 ) (15.0 ) (45.0 ) Cash provided by (used for) investing activities 77.3 119.3 (11.6 ) Cash provided by (used for) financing activities — — — Change in cash and cash equivalents 15.8 (24.2 ) 8.2 Cash and cash equivalents, beginning of period 11.2 35.4 27.2 Cash and cash equivalents, end of period $ 27.0 $ 11.2 $ 35.4 Other supplementary data related to investments, insurance information, reinsurance, and valuation and qualifying accounts are presented in various locations within the consolidated financial statements and related notes. • Investment information including the amortized cost and fair value of investments is provided in Note 7, Investing Activities, and Note 11, Derivative Instruments. The Company’s invested assets did not include related party investments as of December 31, 2015 . • The Company manages its business by segregating its operations into two reporting segments: Life and Annuity and Saybrus. All insurance information disclosed within the consolidated balance sheets, the consolidated statements of operations and comprehensive income and Note 5, Deferred Policy Acquisition Costs, is applicable to the Life and Annuity segment. Unearned premiums included in policy liabilities and accruals were $77.1 million and $84.8 million as of December 31, 2015 and 2014 , respectively. Saybrus, the Company’s non-insurance segment, had operating expenses of $35.2 million , $31.2 million and $23.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Saybrus did not have any insurance information or investment income as of, and for the years ended December 31, 2015 , 2014 and 2013 . • Information related to reinsurance, including gross, ceded and assumed balances for premiums, policy benefits and life insurance inforce, is provided in Note 3, Reinsurance. • Information about the valuation allowance established for certain deferred tax assets is provided in Note 13, Income Taxes. |
Supplemental Unaudited Quarterl
Supplemental Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Unaudited Quarterly Financial Information | Supplemental Unaudited Quarterly Financial Information The following tables reflect unaudited summarized quarterly financial results during the years ended December 31, 2015 and 2014 . Summarized Selected Quarterly Financial Data: Quarter ended 2015 ($ in millions, except per share amounts) Mar 31, June 30, Sept 30, Dec 31, Revenues $ 405.4 $ 422.0 $ 437.1 $ 430.3 Benefits and expenses $ 480.1 $ 456.8 $ 464.2 $ 453.0 Income tax expense (benefit) $ (2.2 ) $ (13.0 ) $ (17.0 ) $ (2.1 ) Income (loss) from continuing operations $ (72.5 ) $ (21.8 ) $ (10.1 ) $ (20.6 ) Income (loss) from discontinued operations $ (0.5 ) $ (0.6 ) $ (0.1 ) $ (0.8 ) Net income (loss) $ (73.0 ) $ (22.4 ) $ (10.2 ) $ (21.4 ) Less: Net (income) loss attributable to noncontrolling interests $ 1.0 $ 0.2 $ 5.5 $ — Net income (loss) attributable to The Phoenix Companies, Inc. $ (74.0 ) $ (22.6 ) $ (15.7 ) $ (21.4 ) Net income (loss) attributable to The Phoenix Companies, Inc. per share: Basic $ (12.87 ) $ (3.93 ) $ (2.73 ) $ (3.72 ) Diluted $ (12.87 ) $ (3.93 ) $ (2.73 ) $ (3.72 ) Summarized Selected Quarterly Financial Data: Quarter ended 2014 ($ in millions, except per share amounts) Mar 31, June 30, Sept 30, Dec 31, Revenues $ 399.0 $ 413.1 $ 414.4 $ 440.4 Benefits and expenses $ 431.4 $ 454.5 $ 434.0 $ 542.2 Income tax expense (benefit) $ (4.8 ) $ (19.6 ) $ 2.6 $ 32.3 Income (loss) from continuing operations $ (27.6 ) $ (21.8 ) $ (22.2 ) $ (134.1 ) Income (loss) from discontinued operations $ (0.6 ) $ (0.6 ) $ (0.3 ) $ (2.0 ) Net income (loss) $ (28.2 ) $ (22.4 ) $ (22.5 ) $ (136.1 ) Less: Net income (loss) attributable to noncontrolling interests $ (0.1 ) $ — $ (0.1 ) $ 4.2 Net income (loss) attributable to The Phoenix Companies, Inc. $ (28.1 ) $ (22.4 ) $ (22.4 ) $ (140.3 ) Net income (loss) attributable to The Phoenix Companies, Inc. per share: Basic $ (4.89 ) $ (3.90 ) $ (3.90 ) $ (24.40 ) Diluted $ (4.89 ) $ (3.90 ) $ (3.90 ) $ (24.40 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Bond Consent Solicitations On January 7, 2016, we commenced a Consent Solicitation of bondholders (“Holders”) of our 7.45% Quarterly Interest Bonds due 2032 (CUSIP 71902E 20 8) (NYSE: PFX) (“Bonds”) to amend the indenture governing the bonds (the “Indenture”) in connection with the Company’s previously announced agreement to be acquired by Nassau and become its privately held, wholly owned subsidiary. On March 4, 2016, we announced the success of our Consent Solicitation. The consents received represented approximately 72.9% of the outstanding principal amount. On March 9, 2016, the Company and the Trustee executed a fourth supplemental indenture (the “Fourth Supplemental Indenture”) amending the Indenture effective as of such date. During the course of the Consent Solicitation, plaintiff Kenneth Roth filed a putative class action complaint (“Complaint”) in New York Supreme Court (the “Court”) against the Company and the Trustee, Index No. 650634/2016 (the “Litigation”), relating to the Consent Solicitation. On February 24, 2016, the parties to the Litigation (the “Settling Parties”) entered into the Memorandum of Understanding (“MOU”) providing for the settlement of the Litigation, subject to the approval of the Court, among other things. See Note 22 to these consolidated financial statements for a more detailed discussion regarding the consent solicitation litigation. Capital Contributions On February 25, 2016, PHL Variable received approval from the Connecticut Insurance Department to admit $23.1 million of receivables from the Company as an additional capital contribution on its balance sheet as of December 31,2015. On February 26, 2016, the Company made a capital contribution of $23.1 million to PHL Variable. Dividends On March 10, 2016, Phoenix Life declared a $20.0 million dividend to Phoenix. |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
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. |
Use of estimates | Use of estimates In preparing these consolidated 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. Certain of these estimates are particularly sensitive to market conditions and/or volatility in the debt or equity markets which could have a material impact on the consolidated financial statements. Actual results could differ from these estimates. |
Adoption of new accounting standards and Accounting standards not yet adopted | Adoption of new accounting standards Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In April 2014, the Financial Accounting Standards Board (the “FASB”) issued updated guidance that changes the criteria for reporting discontinued operations and introduces new financial statement 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. This new guidance did not have any impact on the Company’s consolidated financial position, results of operations and 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 new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and 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 periods within those annual periods, beginning after December 15, 2014. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and 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 Financial Accounting Standards Board (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 was effective for interim or annual reporting periods beginning after December 15, 2013. This new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. 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. This new guidance was effective for interim or annual reporting periods beginning after December 15, 2013. 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 did not have a material impact on the Company’s consolidated financial position, results of operations and 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 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 new guidance did not have a material impact on the Company’s consolidated financial position, results of operations and financial statement disclosures. Accounting standards not yet adopted Leases In February 2016, the FASB issued updated guidance to improve financial reporting about leasing transactions. The guidance requires lessees to recognize the assets and liabilities arising from leases on the balance sheet. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within the annual reporting period. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued updated guidance affecting the accounting for equity investments, financial liabilities under the fair value options, and the presentation and disclosure requirements for financial instruments. In addition, the update clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. This new guidance may impact our ability to consider our existing deferred tax assets realizable. The impact will depend on the composition of the Company’s investment portfolio in the future and changes in fair value of the Company’s investments. For public business entities, the amendments in the update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim period within those annual periods. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The guidance requires that an entity present separately on the face of the income statements, or disclose in the notes, the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to provisional amounts had been recognized as of the acquisition date. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within the annual reporting period. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Disclosures about Short-Duration Contracts In May 2015, the FASB issued guidance which requires enhanced disclosure requirements for insurers relating to short-duration insurance contracts including claims and the unpaid claims liability rollforward to interim periods. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods within the annual reporting period beginning after December 15, 2016. Early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Fair Value Measurement: Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB issued guidance for investments measured at net asset value (“NAV”), as a practical expedient for fair value, to be excluded from the fair value hierarchy. The new guidance requires reporting entities to reconcile the fair value hierarchy disclosure to the balance sheet by disclosing the amount of investments measured using the practical expedient and to make certain disclosures about the nature and risks of those investments. If the NAV is actually at fair value, then a reporting entity would continue to include the investment in the fair value hierarchy and make all required fair value disclosures. For public business entities, the guidance is effective for annual reporting periods beginning after December 31, 2015, including interim reporting periods within the annual reporting period. The new guidance is retrospective to all periods presented and early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Customer’s Accounting for Fees Paid in a Cloud Computing Agreement In April 2015, the FASB issued new guidance on a customer’s accounting for fees paid in a cloud computing arrangement (“CCA”). Under the new guidance, customers will apply the same criteria as vendors to determine whether a CCA contains a software license or is solely a service contract. The new guidance provides guidance on which existing accounting model should be applied. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within the annual reporting period. Early adoption is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Retirement Benefits - Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Assets In April 2015, the FASB issued guidance for a practical expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Assets. For an entity with a fiscal year-end that does not coincide with a month-end, the new guidance provides for a practical expedient that permits the entity to measure defined benefit assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. In addition, for a significant event such as a plan amendment, settlement or curtailment, the new guidance provides for a practical expedient that permits the entity to remeasure the defined benefit plan assets and obligations using the month-end that is closest to the date of the significant event. An entity is required to disclose the accounting policy election and the date used to measure the defined benefit assets and obligations in accordance with this new guidance. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods within the annual reporting period. Early adoption is permitted and the new guidance should be applied prospectively. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Interest - Imputation of Interest (Simplifying the Presentation of Debt Issuance Costs) In April 2015, the FASB issued guidance that changes the presentation of debt issuance costs in financial statements. Under the new guidance, a company would present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. The recognition and measurement of debt issuance costs is not affected by the new guidance. For revolving debt arrangements, this guidance allows an entity to continue deferring and presenting such costs as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within the annual reporting period. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Amendments to Consolidation Guidance In February 2015, the FASB issued updated consolidation guidance. The amendments revise existing guidance for when to consolidate variable interest entities (“VIEs”) and general partners’ investments in limited partnerships, end the deferral granted for applying the VIE guidance to certain investment companies, and reduce the number of circumstances where a decision maker’s or service provider’s fee arrangement is deemed to be a variable interest in an entity. The updates also modify consolidation guidance for determining whether limited partnerships are VIEs or voting interest entities. This guidance is effective for years beginning after December 31, 2015, and may be applied fully retrospectively or through a cumulative effect adjustment to retain earnings as of the beginning of the year of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Income Statement - Extraordinary and Unusual Items In January 2015, the FASB issued new guidance regarding extraordinary items which eliminates the U.S. GAAP concept of an extraordinary item. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption is permitted if the guidance is applied as of the beginning of the annual period of adoption. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Presentation of Financial Statements - Going Concern In August 2014, the FASB issued guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity In August 2014, the FASB issued guidance allowing (i.e., not requiring) a reporting entity to measure the financial assets and financial liabilities of a consolidated collateralized financing entity, within the scope of the new guidance, based on either the fair value of the financial assets or financial liabilities, whichever is more observable (referred to as a “measurement alternative”). The new guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 for public business entities. Early adoption will be permitted. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance on accounting for revenue recognition. The guidance is based on the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from cost incurred to obtain or fulfill a contract. Revenue recognition for insurance contracts is explicitly scoped out of the guidance. In August 2015, the FASB issued guidance which defers the effective date for Revenue from Contracts with Customers for all entities. For public business entities, the guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within the annual reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the impact of the guidance on its consolidated financial position, results of operations and financial statement disclosures. |
Investments | Investments Debt and Equity Securities Our debt securities classified as available-for-sale include bonds, structured securities and redeemable preferred stock. These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are reported on our consolidated balance sheets at fair value. Fair value is based on quoted market price, where available. When quoted market prices are not available, we estimate fair value by discounting debt security cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality (private placement debt securities), by quoted market prices of comparable instruments (untraded public debt securities) and by independent pricing sources or internally developed pricing models. We recognize unrealized gains and losses on investments in debt and equity securities that we classify as available-for-sale. We report these unrealized investment gains and losses as a component of OCI. Realized investment gains and losses are recognized on a first in first out basis. Limited Partnerships and Other Investments Limited partnerships including private equity and mezzanine funds, infrastructure funds, hedge funds, joint venture interests and direct equity investments in which we do not have voting control or power to direct activities are recorded using the equity method of accounting. The equity method of accounting requires that the investment be initially recorded at cost and the carrying amount of the investment subsequently adjusted to recognize our share of the earnings or losses. We record our equity in the earnings in net investment income using the most recent financial information received from the partnerships. Recognition of net investment income is generally on a three-month delay due to the timing of the related financial statements. The contributions to and distributions from limited partnerships and other investments are classified as investing activities within the statement of cash flows. The Company routinely evaluates these investments for impairments. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. When an other-than-temporary impairment (“OTTI”) has occurred, the impairment loss is recorded within net investment gains (losses). Other investments also include leveraged lease investments which represent the net amount of the estimated residual value of the lease assets, rental receivables and unearned and deferred income to be allocated over the lease term. Prior to the fourth quarter of 2015, it further included investments in life settlement contracts accounted for under the investment method under which the Company recognizes its initial investment in life settlement contracts at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force comprising mainly life insurance premiums, increase the carrying value of the investment while income on individual life settlement contracts are recognized when the insured dies, at an amount equal to the excess of the contract proceeds over the carrying amount of the contract at that time. Contracts were reviewed annually for indications that the expected future proceeds from the contract would not be sufficient to recover estimated future carrying amount of the contract (current carrying amount for the contract plus anticipated undiscounted future premiums and other capitalizable future costs.) Any such contracts identified are written down to estimated fair value. During the second quarter of 2015, as a result of plans to sell or liquidate the life settlement contracts, the Company recorded the life settlement contracts at fair value. In December 2015, the life settlement contracts were sold. See Note 7 to these consolidated financial statements for additional information. Loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. In a troubled debt restructuring where the Company receives assets in full or partial satisfaction of the debt, any specific valuation allowance is reversed and a direct write down of the loan is recorded for the amount of the allowance and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. Any remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. The consolidated financial statements include investments in limited partnerships, certain of which qualify as VIEs. We consolidate those limited partnerships which were determined to be VIEs when we are the primary beneficiary. See Note 7 to these consolidated financial statements for additional information regarding VIEs. Policy Loans Policy loans are carried at their unpaid principal balances and are collateralized by the cash values of the related policies. The majority of policy loans are at variable interest rates that are reset annually on the policy anniversary. Fair Value Instruments Debt securities held at fair value include securities held for which changes in fair values are recorded in earnings. The securities held at fair value are designated as trading securities, as well as those debt securities for which we have elected the fair value option (“FVO”) and certain available-for-sale structured securities held at fair value. The changes in fair value and any interest income of these securities are reflected in earnings as part of “net investment income.” See Note 12 to these consolidated financial statements for additional disclosures related to these securities. Derivative Instruments We recognize derivative instruments on the consolidated balance sheets at fair value. The derivative contracts are reported as assets in derivative instruments or liabilities in other liabilities on the consolidated balance sheets, excluding embedded derivatives. Embedded derivatives, as discussed below, are recorded on the consolidated balance sheets bifurcated from the associated host contract. The Company economically hedges variability of cash flows to be received or paid related to certain recognized assets and/or liabilities. All changes in the fair value of derivatives, including net receipts and payments, are included in net realized investment gains and losses without consideration of changes in the fair value of the economically associated assets or liabilities. We do not designate the purchased derivatives related to living benefits or index credits as hedges for accounting purposes. Short-Term Investments Short-term investments include securities with a maturity of one year or less but greater than three months at a time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. |
Net investment income | Net Investment Income For asset-backed and fixed maturity debt securities, we recognize interest income using a constant effective yield based on estimated cash flow timing and economic lives of the securities. For high credit quality asset-backed securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For asset-backed securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For certain credit impaired asset-backed securities, effective yields are recalculated and adjusted prospectively to reflect significant increases in undiscounted expected future cash flows and changes in the contractual benchmark interest rate on variable rate securities. Any prepayment fees on fixed maturities and mortgage loans are recorded when earned in net investment income. We record the net income from investments in partnerships and joint ventures in net investment income. |
Other-than-temporary impairments on available-for-sale securities | Other-Than-Temporary Impairments on Available-For-Sale Securities We recognize realized investment losses when declines in fair value of debt and equity securities are considered to be an OTTI. For debt securities, the other-than-temporarily impaired amount is separated into the amount related to a credit loss and is reported as net realized investment losses included in earnings and any amounts related to other factors are recognized in OCI. The credit loss component represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in AOCI. Subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the date of impairment at an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. We will continue to estimate the present value of future expected cash flows and, if significantly greater than the new cost basis, we will accrete the difference as investment income on a prospective basis once the Company has determined that the interest income is likely to be collected. In evaluating whether a decline in value is other-than-temporary, we consider several factors including, but not limited to, the following: • the extent and the duration of the decline; • the reasons for the decline in value (credit event, interest related or market fluctuations); • our intent to sell the security, or whether it is more likely than not that we will be required to sell it before recovery; and • the financial condition and near term prospects of the issuer. An impairment of a debt security, or certain equity securities with debt-like characteristics, is deemed other-than-temporary if: • we either intend to sell the security, or it is more likely than not that we will be required to sell the security before recovery; or • it is probable we will be unable to collect cash flows sufficient to recover the amortized cost basis of the security. An equity security impairment is deemed other-than-temporary if: • the security has traded at a significant discount to cost for an extended period of time; or • we determined we may not realize the full recovery on our investment. Equity securities are determined to be other-than-temporarily impaired based on management judgment and the consideration of the issuer’s financial condition along with other relevant facts and circumstances. Those securities which have been in a continuous decline for over twelve months and declines in value that are severe and rapid are considered for reasonability of whether the impairment would be temporary. Although there may be sustained losses for over twelve months or losses that are severe and rapid, additional information related to the issuer performance may indicate that such losses are not other-than-temporary. Impairments due to deterioration in credit that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security are considered other-than-temporary. Other declines in fair value (for example, due to interest rate changes, sector credit rating changes or company-specific rating changes) that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security may also result in a conclusion that an OTTI has occurred. On a quarterly basis, we evaluate securities in an unrealized loss position for potential recognition of an OTTI. In addition, we maintain a watch list of securities in default, near default or otherwise considered by our investment professionals as being distressed, potentially distressed or requiring a heightened level of scrutiny. We also identify securities whose fair value has been below amortized cost on a continuous basis for zero to six months, six months to 12 months and greater than 12 months. We employ a comprehensive process to determine whether or not a security in an unrealized loss position is other-than-temporarily impaired. This assessment is done on a security-by-security basis and involves significant management judgment. The assessment of whether impairments have occurred is based on management’s evaluation of the underlying reasons for the decline in estimated fair value. The Company’s review of its fixed maturity and equity securities for impairments includes an analysis of the total gross unrealized losses by severity and/or age of the gross unrealized loss. An extended and severe decline in value on a fixed maturity security may not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company’s evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for certain equity securities, greater weight and consideration are given by the Company to an extended decline in market value and the likelihood such market value decline will recover. Specifically for structured securities, to determine whether a collateralized security is impaired, we obtain underlying data from the security’s trustee and analyze it for performance trends. A security-specific stress analysis is performed using the most recent trustee information. This analysis forms the basis for our determination of the future expected cash flows to be collected for the security. The closed block policyholder dividend obligation, applicable DAC and applicable income taxes, which offset realized investment gains and losses and OTTIs, are each reported separately as components of net income. |
Cash and cash equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, money market instruments and other debt instruments with original maturities of three months or less. Negative cash balances are reclassified to other liabilities. |
Deferred policy acquisition costs | Deferred Policy Acquisition Costs We defer incremental direct costs related to the successful sale of new or renewal contracts. Incremental direct costs are those costs that result directly from and are essential to the sale of a contract. These costs include principally commissions, underwriting and policy issue expenses, and certain other expenses that are directly related to successfully issued contracts. We amortize DAC based on the related policy’s classification. For individual participating life insurance policies, DAC is amortized in proportion to EGMs arising principally from investment results, mortality, dividends to policyholders and expense margins. For universal life, variable universal life and deferred annuities, DAC is amortized in proportion to EGPs as discussed more fully below. EGPs are also used to amortize other assets and liabilities in the Company’s consolidated balance sheets, such as sales inducement assets (“SIA”) and unearned revenue reserves (“URR”). Components of EGPs are used to determine reserves for universal life and fixed, indexed and variable annuity contracts with death and other insurance benefits such as guaranteed minimum death and guaranteed minimum income benefits. Both EGMs and EGPs are based on historical and anticipated future experience which is updated periodically. In addition, DAC is adjusted through OCI each period as a result of unrealized gains or losses on securities classified as available-for-sale in a process commonly referred to as shadow accounting. This adjustment is required in order to reflect the impact of these unrealized amounts as if these unrealized amounts had been realized. The projection of EGPs and EGMs requires the extensive use of actuarial assumptions, estimates and judgments about the future. Future EGPs and EGMs are generally projected for the estimated lives of the contracts. Assumptions are set separately for each product and are reviewed at least annually based on our current best estimates of future events. The following table summarizes the most significant assumptions used in the categories set forth below: Significant Assumption Product Explanation and Derivation Separate account investment return Variable Annuities (7.7% long-term return assumption) Variable Universal Life (7.9% long-term return assumption) Separate account return assumptions are derived from the long-term returns observed in the asset classes in which the separate accounts are invested. Short-term deviations from the long-term expectations are expected to revert to the long-term assumption over five years. Interest rates and default rates Fixed and Indexed Annuities Universal Life Participating Life Investment returns are based on the current yields and maturities of our fixed income portfolio combined with expected reinvestment rates from current market rates. Reinvestment rates are assumed to revert to long-term rates and long-term default rates over the mean reversion period. Contractually permitted future changes in credited rates are assumed to help support investment margins. Mortality / longevity Universal Life Variable Universal Life Fixed and Indexed Annuities Participating Life Mortality assumptions are based on Company experience over a rolling five-year period plus supplemental data from industry sources and trends. A mortality improvement assumption is also incorporated into the overall mortality table. These assumptions can vary by issue age, gender, underwriting class and policy duration. Policyholder behavior – policy persistency Universal Life Variable Universal Life Variable Annuities Fixed and Indexed Annuities Participating Life Policy persistency assumptions vary by product and policy year and are updated based on recently observed experience. Policyholders are generally assumed to behave rationally; hence rates are typically lower when surrender penalties are in effect or when policy benefits are more valuable. Policyholder behavior – premium persistency Universal Life Variable Universal Life Future premiums and related fees are projected based on contractual terms, product illustrations at the time of sale and expected policy lapses without value. Assumptions are updated based on recently observed experience and include anticipated changes in behavior based on changes in policy charges if the Company has a high degree of confidence that such changes will be implemented (e.g., change in cost of insurance (“COI”) charges). Expenses All products Projected maintenance expenses to administer policies in force are based on annually updated studies of expenses incurred. Reinsurance costs / recoveries Universal Life Variable Universal Life Variable Annuities Participating Life Projected reinsurance costs are based on treaty terms currently in force. Recoveries are based on the Company’s assumed mortality and treaty terms. Treaty recaptures are based on contract provisions and management’s intentions. Annually, we complete a comprehensive assumption review where management makes a determination of best estimate assumptions based on a comprehensive review of recent experience and industry trends. Assumption changes resulting from this review may change our estimates of EGPs in the DAC, SIA, and URR models, as well as projections within the death benefit and other insurance benefit reserving models, the profits followed by losses reserve models, and cost of reinsurance models. Throughout the year, we may also update the assumptions and adjust these balances if emerging data indicates a change is warranted. All assumption changes, whether resulting from the annual comprehensive review or from other periodic assessments, are considered an unlock in the period of revision and adjust the DAC, SIA, URR, death and other insurance benefit reserves, profits followed by losses reserve, and cost of reinsurance balances in the consolidated balance sheets with an offsetting benefit or charge to income to reflect such changes in the period of the revision. An unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being more favorable than previous estimates. An unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being less favorable than previous estimates. Our process to assess the reasonableness of the EGPs uses internally developed models together with consideration of applicable recent experience and analysis of market and industry trends and other events. Actual gross profits that vary from management’s estimates in a given reporting period may also result in increases or decreases in the rate of amortization recorded in the period. An analysis is performed annually to assess if there are sufficient gross profits to recover the DAC associated with business written during the year. If the estimates of gross profits cannot support the recovery of DAC, the amount deferred is reduced to the recoverable amount. The Company has updated a number of assumptions that have resulted in changes to expected future gross profits. The most significant assumption updates made over the last several years resulting in a change to future gross profits and the amortization of DAC, SIA and URR, as well as changes in PFBL and guaranteed benefit liabilities, are related to long-term expected mortality improvement; changes in expected premium persistency; changes in expected separate account investment returns due to changes in equity markets; changes in expected future interest rates and default rates based on continued experience and expected interest rate changes; changes i n lapses and other policyholder behavior assumptions that are updated to reflect more recent policyholder and industry experience; and changes in expected policy administration expenses. |
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 assumptions used in the amortization of the deferred sales inducement assets 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 operations and comprehensive income. |
Premises and equipment | Premises and equipment Premises and equipment, consisting primarily of our main office building, are stated at cost less accumulated depreciation and amortization and are included in other assets. We depreciate the building on the straight-line method over 39 years and equipment on the straight-line method over three to seven years. We amortize leasehold improvements over the terms of the related leases or the useful life of the improvement, whichever is shorter. |
Separate account assets and liabilities | Separate account assets and liabilities Separate account assets related to policyholder funds are carried at fair value with an equivalent amount recorded as separate account liabilities. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues and the related liability increases are excluded from benefits and expenses. Fees assessed to the contract owners for management services are included in revenues when services are rendered. |
Policy liabilities and accruals | Policy liabilities and accruals Policy liabilities and accruals include future benefit liabilities for certain life and annuity products. We establish liabilities in amounts adequate to meet the estimated future obligations of policies in force. Future benefit liabilities for traditional life insurance are computed using the net level premium method on the basis of actuarial assumptions as to mortality rates guaranteed in calculating the cash surrender values described in such contracts, contractual guaranteed rates of interest which range from 2.3% to 6.0% and morbidity. Participating insurance represented 20.3% and 20.7% of direct individual life insurance in force at December 31, 2015 and 2014 , respectively. Generally, future policy benefits are payable over an extended period of time and related liabilities are calculated recognizing future expected benefits, expenses and premiums. Such liabilities are established based on methods and underlying assumptions in accordance with U.S. GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policyholder behavior, investment returns, inflation, expenses and other contingent events as appropriate. These assumptions are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a cohort basis, as appropriate. If experience is less favorable than assumed, additional liabilities may be established, resulting in a charge to policyholder benefits and claims. Additional policyholder liabilities for guaranteed benefits on variable annuity and on fixed index annuity contracts are based on estimates of the expected value of benefits in excess of the projected account balance, recognizing the excess over the accumulation period based on total expected assessments. Because these estimates are sensitive to capital market movements, amounts are calculated using multiple future economic scenarios. Additional policyholder liabilities are established for certain contract features on universal life and variable universal life products that could generate significant reductions to future gross profits (e.g., death benefits when a contract has zero account value and a no-lapse guarantee). The liabilities are accrued over the lifetime of the block based on assessments. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC and are, thus, subject to the same variability and risk. The assumptions of investment performance and volatility for variable and equity index products are consistent with historical experience of the appropriate underlying equity indices. We expect that our universal life block of business will generate profits followed by losses and therefore we establish an additional liability to accrue for the expected losses over the period of expected profits. The assumptions used in estimating these liabilities are consistent with those used for amortizing DAC and are subject to the same variability and risk and the results are very sensitive to interest rates. The liability for universal life-type contracts primarily includes the balance that accrues to the benefit of the policyholders as of the financial statement date, including interest credited at rates which range from 3.0% to 4.5% , amounts that have been assessed to compensate us for services to be performed over future periods, accumulated account deposits, withdrawals and any amounts previously assessed against the policyholder that are refundable. There may also be a liability recorded for contracts that include additional death or other insurance benefit features as discussed above. The Company periodically reviews its estimates of actuarial liabilities for policyholder benefits and compares them with its actual experience. Differences between actual experience and the assumptions used in pricing these policies and guarantees, as well as in the establishment of the related liabilities, result in variances in profit and could result in losses. Policy liabilities and accruals also include liabilities for outstanding claims, losses and loss adjustment expenses based on individual case estimates for reported losses and estimates of unreported losses based on past experience. The Company does not establish claim liabilities until a loss has occurred. However, unreported losses and loss adjustment expenses includes estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. |
Embedded derivatives | Embedded derivatives Certain contracts contain guarantees that are accounted for as embedded derivative instruments. These guarantees are assessed to determine if a separate instrument with the same terms would qualify as a derivative and if they are not clearly and closely related to the economic characteristics of the host contract. Contract guarantees that meet these criteria are reported separately from the host contract and reported at fair value. The guaranteed minimum withdrawal benefit (“GMWB”), guaranteed minimum accumulation benefit (“GMAB”) and combination rider (“COMBO”) represent embedded derivative liabilities in the variable annuity contracts. These liabilities are accounted for at fair value within policyholder deposit funds on the consolidated balance sheets with changes in the fair value of embedded derivatives recorded in realized investment gains on the consolidated statements of operations 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. Fixed indexed annuities offer a variety of index 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 accounted for at fair value within policyholder deposit funds on the consolidated balance sheets with changes in fair value recorded in realized investment gains and losses in the consolidated statements of operations and comprehensive income. The fair value of these index options is based on the impact of projected interest rates and equity markets and is discounted using the projected interest rate. Several additional inputs reflect our internally developed assumptions related to lapse rates and policyholder behavior. See Note 10 to these consolidated financial statements for additional information regarding embedded derivatives. |
Policyholder deposit funds | Policyholder deposit funds Amounts received as payment for certain deferred annuities and other contracts without life contingencies are reported as deposits to policyholder deposit funds. The liability for deferred annuities and other contracts without life contingencies is equal to the balance that accrues to the benefit of the contract owner as of the financial statement date which includes the accumulation of deposits plus interest credited, less withdrawals and amounts assessed through the financial statement date as well as accumulated policyholder dividends and the liability representing the fair value of embedded derivatives associated with those contracts. |
Contingent liabilities | Contingent liabilities Management evaluates each contingent matter separately and in aggregate. Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. |
Demutualization and closed block | Demutualization and closed block The closed block assets, including future assets from cash flows generated by the assets and premiums and other revenues from the policies in the closed block, will benefit only holders of the policies in the closed block. The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, investment purchases and sales, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions, investment income and realized investment gains and losses on investments held outside the closed block that support the closed block business. All of these excluded income and expense items enter into the determination of EGMs of closed block policies for the purpose of amortization of DAC. In our financial statements, we present closed block assets, liabilities, revenues and expenses together with all other assets, liabilities, revenues and expenses. Within closed block liabilities, we have established a policyholder dividend obligation to record an additional liability to closed block policyholders for cumulative closed block earnings in excess of expected amounts calculated at the date of demutualization. These closed block earnings will not inure to shareholders, 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. |
Revenue recognition | Revenue recognition We recognize premiums for participating life insurance products and other life insurance products as revenue when due from policyholders. We match benefits, losses and related expenses with premiums over the related contract periods. Amounts received as payment for universal life, variable universal life and other investment-type contracts are considered deposits and are not included in premiums. Revenues from these products consist primarily of fees assessed during the period against the policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Fees assessed that represent compensation for services to be provided in the future are deferred and amortized into revenue over the life of the related contracts in proportion to EGPs. Certain variable annuity contracts and fixed index annuity contract riders provide the holder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. The fee for these riders is recorded in fee income. These benefits are accounted for as insurance benefits. Certain variable annuity contracts features and fixed index annuity index options are considered embedded derivatives. See Note 10 to these consolidated financial statements for additional information. |
Reinsurance | Reinsurance Premiums, policy benefits and operating expenses related to our traditional life and term insurance policies are stated net of reinsurance ceded to other companies, except for amounts associated with certain modified coinsurance contracts which are reflected in the Company’s financial statements based on the application of the deposit method of accounting. Estimated reinsurance recoverables and the net estimated cost of reinsurance are recognized over the life of the reinsured treaty using assumptions consistent with those used to account for the policies subject to the reinsurance. For universal life and variable universal life contracts, reinsurance premiums and ceded benefits are reflected net within policy benefits. Reinsurance recoverables are recognized in the same period as the related reinsured claim. The net cost or benefit of reinsurance (the present value of all expected ceded premium payments and expected future benefit payments) is recognized over the life of the reinsured treaty using assumptions consistent with those used to account for the policies subject to the reinsurance. |
Income taxes | Income taxes Income tax expense or benefit is recognized based upon amounts reported in the financial statements and the provisions of currently enacted tax laws. Deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. Valuation allowances on deferred tax assets are recorded to the extent that management concludes that it is more likely than not that an asset will not be realized. We recognize current income tax assets and liabilities for estimated income taxes refundable or payable based on the income tax returns. We recognize deferred income tax assets and liabilities for the estimated future income tax effects of temporary differences and carryovers. Temporary differences are the differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as the timing of income or expense recognized for financial reporting and tax purposes of items not related to assets or liabilities. If necessary, we establish valuation allowances to reduce the carrying amount of deferred income tax assets to amounts that are more likely than not to be realized. We periodically review the adequacy of these valuation allowances and record any increase or reduction in allowances in accordance with intraperiod allocation rules. We assess all significant tax positions to determine if a liability for an uncertain tax position is necessary and, if so, the impact on the current or deferred income tax balances. Also, if indicated, we recognize interest or penalties related to income taxes as a component of the income tax provision. |
Pension and other post-employment benefits | Pension and other post-employment benefits We recognize pension and other post-employment benefit costs and obligations over the employees’ expected service periods by discounting an estimate of aggregate benefits. We estimate aggregate benefits by using assumptions for rates of return on pension plan assets and future health care costs. We recognize an expense for differences between actual experience and estimates exceeding a corridor over the average future lifetime of participants. We recognize an expense for our contributions to employee and agent savings plans at the time employees and agents make contributions to the plans. We also recognize the costs and obligations of severance, disability and related life insurance and health care benefits to be paid to inactive or former employees after employment but before retirement. |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Insurance Contract Assumptions Used | The following table summarizes the most significant assumptions used in the categories set forth below: Significant Assumption Product Explanation and Derivation Separate account investment return Variable Annuities (7.7% long-term return assumption) Variable Universal Life (7.9% long-term return assumption) Separate account return assumptions are derived from the long-term returns observed in the asset classes in which the separate accounts are invested. Short-term deviations from the long-term expectations are expected to revert to the long-term assumption over five years. Interest rates and default rates Fixed and Indexed Annuities Universal Life Participating Life Investment returns are based on the current yields and maturities of our fixed income portfolio combined with expected reinvestment rates from current market rates. Reinvestment rates are assumed to revert to long-term rates and long-term default rates over the mean reversion period. Contractually permitted future changes in credited rates are assumed to help support investment margins. Mortality / longevity Universal Life Variable Universal Life Fixed and Indexed Annuities Participating Life Mortality assumptions are based on Company experience over a rolling five-year period plus supplemental data from industry sources and trends. A mortality improvement assumption is also incorporated into the overall mortality table. These assumptions can vary by issue age, gender, underwriting class and policy duration. Policyholder behavior – policy persistency Universal Life Variable Universal Life Variable Annuities Fixed and Indexed Annuities Participating Life Policy persistency assumptions vary by product and policy year and are updated based on recently observed experience. Policyholders are generally assumed to behave rationally; hence rates are typically lower when surrender penalties are in effect or when policy benefits are more valuable. Policyholder behavior – premium persistency Universal Life Variable Universal Life Future premiums and related fees are projected based on contractual terms, product illustrations at the time of sale and expected policy lapses without value. Assumptions are updated based on recently observed experience and include anticipated changes in behavior based on changes in policy charges if the Company has a high degree of confidence that such changes will be implemented (e.g., change in cost of insurance (“COI”) charges). Expenses All products Projected maintenance expenses to administer policies in force are based on annually updated studies of expenses incurred. Reinsurance costs / recoveries Universal Life Variable Universal Life Variable Annuities Participating Life Projected reinsurance costs are based on treaty terms currently in force. Recoveries are based on the Company’s assumed mortality and treaty terms. Treaty recaptures are based on contract provisions and management’s intentions. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Summary of Other Reinsurance Activity | Other reinsurance activity is shown below. Direct Business and Reinsurance in Continuing Operations: For the years ended December 31, ($ in millions) 2015 2014 2013 Direct premiums $ 454.1 $ 473.2 $ 501.8 Premiums assumed 8.7 9.7 11.8 Premiums ceded [1] (113.7 ) (150.8 ) (162.0 ) Premiums $ 349.1 $ 332.1 $ 351.6 Percentage of amount assumed to net premiums 2.5% 2.9% 3.4% Direct policy benefits incurred $ 1,020.8 $ 785.3 $ 819.1 Policy benefits assumed 41.9 42.5 22.7 Policy benefits ceded (235.1 ) (241.9 ) (265.4 ) Premiums paid [2] 97.3 95.8 83.1 Policy benefits [3] $ 924.9 $ 681.7 $ 659.5 Direct life insurance in force $ 91,469.3 $ 95,811.4 $ 102,405.6 Life insurance in force assumed 1,771.1 1,721.0 1,678.2 Life insurance in force ceded (51,064.8 ) (58,022.4 ) (62,553.8 ) Life insurance in force $ 42,175.6 $ 39,510.0 $ 41,530.0 Percentage of amount assumed to net insurance in force 4.2% 4.4% 4.0% ——————— [1] Primarily represents premiums ceded to reinsurers related to traditional whole 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 consolidated 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 $261.7 million , $437.5 million and $305.6 million , net of reinsurance, for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Demutualization and Closed Bl36
Demutualization and Closed Block (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Closed Block Assets and Liabilities | Closed Block Assets and Liabilities: As of December 31, ($ in millions) 2015 2014 Inception Available-for-sale debt securities $ 5,285.4 $ 5,877.0 $ 4,773.1 Available-for-sale equity securities 90.1 91.7 — Short-term investments 25.0 — — Limited partnerships and other investments 352.7 343.4 399.0 Policy loans 1,121.0 1,159.1 1,380.0 Fair value investments 53.1 59.8 — Total closed block investments 6,927.3 7,531.0 6,552.1 Cash and cash equivalents 290.8 89.6 — Accrued investment income 75.5 80.7 106.8 Reinsurance recoverable 30.0 19.1 — Deferred income taxes, net 278.7 290.3 389.4 Other closed block assets 53.7 67.4 41.4 Total closed block assets 7,656.0 8,078.1 7,089.7 Policy liabilities and accruals 7,816.5 8,058.2 8,301.7 Policyholder dividends payable 191.1 201.9 325.1 Policy dividend obligation 525.5 714.8 — Other closed block liabilities 46.6 48.0 12.3 Total closed block liabilities 8,579.7 9,022.9 8,639.1 Excess of closed block liabilities over closed block assets [1] 923.7 944.8 $ 1,549.4 Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests (8.1 ) (11.8 ) Excess of closed block liabilities over closed block assets attributable to The Phoenix Companies, Inc. $ 931.8 $ 956.6 ——————— [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 Policyholder Dividend Obligations | Closed Block Revenues and Expenses and Changes in Policyholder Dividend Obligations: For the years ended December 31, ($ in millions) 2015 2014 2013 Closed block revenues Premiums $ 309.2 $ 301.8 $ 317.8 Net investment income 395.0 411.1 409.6 Net realized gains (losses) 1.0 12.8 16.6 Total revenues 705.2 725.7 744.0 Policy benefits 447.3 438.4 464.5 Other operating expenses 3.7 2.7 5.3 Total benefits and expenses 451.0 441.1 469.8 Closed block contribution to income before dividends and income taxes 254.2 284.6 274.2 Policyholder dividends (212.2 ) (244.6 ) (235.7 ) Closed block contribution to income before income taxes 42.0 40.0 38.5 Applicable income tax expense 13.5 13.3 13.4 Closed block contribution to income 28.5 26.7 25.1 Less: Closed block contribution to income attributable to noncontrolling interests 3.5 2.0 0.3 Closed block contribution to income attributable to The Phoenix Companies, Inc. $ 25.0 $ 24.7 $ 24.8 Policyholder dividend obligation Policyholder dividends recorded through earnings $ 212.2 $ 244.6 $ 235.7 Policyholder dividends recorded through OCI (241.4 ) 138.8 (308.4 ) Additions to (reductions of) policyholder dividend liabilities (29.2 ) 383.4 (72.7 ) Policyholder dividends paid (170.9 ) (172.2 ) (178.6 ) Increase (decrease) in policyholder dividend liabilities (200.1 ) 211.2 (251.3 ) Policyholder dividend liabilities, beginning of period 916.7 705.5 956.8 Policyholder dividend liabilities, end of period 716.6 916.7 705.5 Policyholder dividends payable, end of period (191.1 ) (201.9 ) (207.8 ) Policyholder dividend obligation, end of period $ 525.5 $ 714.8 $ 497.7 |
Deferred Policy Acquisition C37
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | The balances of and changes in DAC as of and for the years ended December 31, are as follows: Changes in Deferred Policy Acquisition Costs: For the years ended December 31, ($ in millions) 2015 2014 2013 Balance, beginning of period $ 848.6 $ 947.8 $ 898.1 Policy acquisition costs deferred 87.4 72.9 58.4 Costs amortized to expenses: Recurring costs (86.6 ) (129.5 ) (117.9 ) Assumption unlocking 9.7 (4.4 ) 25.4 Realized investment gains (losses) (0.9 ) 14.3 (10.6 ) Offsets to net unrealized investment gains or losses included in AOCI 82.9 (52.5 ) 94.4 Balance, end of period $ 941.1 $ 848.6 $ 947.8 |
Sales Inducements (Tables)
Sales Inducements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Sales Inducements [Abstract] | |
Changes in Deferred Sales Inducement Activity | The balances of and changes in sales inducements as of and for the years ended December 31, are as follows: Changes in Deferred Sales Inducement Activity: For the years ended December 31, ($ in millions) 2015 2014 2013 Balance, beginning of period $ 79.4 $ 77.4 $ 63.9 Sales inducements deferred 13.4 17.5 10.6 Amortization charged to income (9.6 ) (8.0 ) (8.5 ) Offsets to net unrealized investment gains or losses included in AOCI 7.9 (7.5 ) 11.4 Balance, end of period $ 91.1 $ 79.4 $ 77.4 |
Investing Activities (Tables)
Investing Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Fair Value and Cost of Securities | Fair Value and Cost of Securities: As of December 31, 2015 ($ in millions) Amortized Cost Gross Unrealized Gains [1] Gross Unrealized Losses [1] Fair Value OTTI Recognized in AOCI [2] U.S. government and agency $ 542.0 $ 48.2 $ (0.6 ) $ 589.6 $ — State and political subdivision 510.4 33.7 (6.7 ) 537.4 (1.1 ) Foreign government 224.0 20.8 (1.9 ) 242.9 — Corporate 8,295.0 311.3 (264.1 ) 8,342.2 (6.3 ) Commercial mortgage-backed (“CMBS”) 656.6 30.4 (2.9 ) 684.1 — Residential mortgage-backed (“RMBS”) 1,213.8 45.1 (12.7 ) 1,246.2 (25.4 ) Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) 316.3 1.3 (8.1 ) 309.5 (4.5 ) Other asset-backed (“ABS”) 235.5 7.7 (4.4 ) 238.8 (0.6 ) Available-for-sale debt securities $ 11,993.6 $ 498.5 $ (301.4 ) $ 12,190.7 $ (37.9 ) Amounts applicable to the closed block $ 5,102.1 $ 293.4 $ (110.1 ) $ 5,285.4 $ (8.8 ) Available-for-sale equity securities $ 154.6 $ 28.5 $ (1.1 ) $ 182.0 $ — Amounts applicable to the closed block $ 77.2 $ 13.6 $ (0.7 ) $ 90.1 $ — ——————— [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: As of December 31, 2014 ($ in millions) Amortized Cost Gross Unrealized Gains [1] Gross Unrealized Losses [1] Fair Value OTTI Recognized in AOCI [2] U.S. government and agency $ 388.3 $ 55.2 $ (0.1 ) $ 443.4 $ — State and political subdivision 518.3 42.1 (2.5 ) 557.9 (1.1 ) Foreign government 205.8 26.5 (1.4 ) 230.9 — Corporate 7,942.7 530.0 (74.6 ) 8,398.1 (8.3 ) CMBS 602.9 48.4 (0.1 ) 651.2 (1.2 ) RMBS 1,862.5 81.6 (11.9 ) 1,932.2 (25.5 ) CDO/CLO 197.5 2.7 (3.3 ) 196.9 (13.9 ) Other ABS 260.0 13.4 (4.7 ) 268.7 (1.8 ) Available-for-sale debt securities $ 11,978.0 $ 799.9 $ (98.6 ) $ 12,679.3 $ (51.8 ) Amounts applicable to the closed block $ 5,451.3 $ 458.1 $ (32.4 ) $ 5,877.0 $ (14.7 ) Available-for-sale equity securities $ 156.0 $ 25.1 $ (1.6 ) $ 179.5 $ — Amounts applicable to the closed block $ 80.5 $ 12.3 $ (1.1 ) $ 91.7 $ — ——————— [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 | Maturities of Debt Securities: As of December 31, 2015 ($ in millions) Amortized Cost Fair Value Due in one year or less $ 464.3 $ 470.3 Due after one year through five years 1,868.9 1,932.2 Due after five years through ten years 3,603.2 3,563.0 Due after ten years 3,635.0 3,746.6 CMBS/RMBS/ABS/CDO/CLO [1] 2,422.2 2,478.6 Total $ 11,993.6 $ 12,190.7 ——————— [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 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: As of December 31, ($ in millions) 2015 2014 2013 Debt securities, available-for-sale Proceeds from sales $ 1,021.4 $ 446.1 $ 532.2 Proceeds from maturities/repayments 1,183.3 1,225.3 1,544.0 Gross investment gains from sales, prepayments and maturities 42.5 41.6 45.1 Gross investment losses from sales and maturities (4.7 ) (17.6 ) (2.2 ) Equity securities, available-for-sale Proceeds from sales $ 16.8 $ 24.2 $ 12.7 Gross investment gains from sales 1.7 10.4 4.2 Gross investment losses from sales — (1.0 ) (3.8 ) |
Aging of Temporarily Impaired Securities | Aging of Temporarily Impaired Securities: As of December 31, 2015 ($ in millions) Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Debt Securities U.S. government and agency $ 73.8 $ (0.6 ) $ 0.9 $ — $ 74.7 $ (0.6 ) State and political subdivision 62.1 (4.1 ) 36.5 (2.6 ) 98.6 (6.7 ) Foreign government 26.0 (1.9 ) — — 26.0 (1.9 ) Corporate 2,499.3 (135.5 ) 545.2 (128.6 ) 3,044.5 (264.1 ) CMBS 131.7 (2.9 ) 2.3 — 134.0 (2.9 ) RMBS 138.0 (1.6 ) 174.2 (11.1 ) 312.2 (12.7 ) CDO/CLO 207.4 (4.4 ) 80.7 (3.7 ) 288.1 (8.1 ) Other ABS 39.0 (0.2 ) 7.2 (4.2 ) 46.2 (4.4 ) Debt securities 3,177.3 (151.2 ) 847.0 (150.2 ) 4,024.3 (301.4 ) Equity securities 4.1 (1.1 ) 2.6 — 6.7 (1.1 ) Total temporarily impaired securities $ 3,181.4 $ (152.3 ) $ 849.6 $ (150.2 ) $ 4,031.0 $ (302.5 ) Amounts inside the closed block $ 963.9 $ (54.1 ) $ 321.6 $ (56.7 ) $ 1,285.5 $ (110.8 ) Amounts outside the closed block $ 2,217.5 $ (98.2 ) $ 528.0 $ (93.5 ) $ 2,745.5 $ (191.7 ) Debt securities outside the closed block that are below investment grade $ 120.5 $ (14.6 ) $ 77.3 $ (21.8 ) $ 197.8 $ (36.4 ) Number of securities 627 178 805 Aging of Temporarily Impaired Securities: As of December 31, 2014 ($ in millions) Less than 12 months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Debt Securities U.S. government and agency $ — $ — $ 2.7 $ (0.1 ) $ 2.7 $ (0.1 ) State and political subdivision 11.6 (0.6 ) 31.1 (1.9 ) 42.7 (2.5 ) Foreign government 15.7 (1.4 ) — — 15.7 (1.4 ) Corporate 643.0 (23.5 ) 654.3 (51.1 ) 1,297.3 (74.6 ) CMBS 12.6 — 10.9 (0.1 ) 23.5 (0.1 ) RMBS 8.4 (0.2 ) 226.7 (11.7 ) 235.1 (11.9 ) CDO/CLO 57.9 (0.5 ) 96.3 (2.8 ) 154.2 (3.3 ) Other ABS 13.8 (0.1 ) 16.0 (4.6 ) 29.8 (4.7 ) Debt securities 763.0 (26.3 ) 1,038.0 (72.3 ) 1,801.0 (98.6 ) Equity securities 5.6 (0.7 ) 15.2 (0.9 ) 20.8 (1.6 ) Total temporarily impaired securities $ 768.6 $ (27.0 ) $ 1,053.2 $ (73.2 ) $ 1,821.8 $ (100.2 ) Amounts inside the closed block $ 266.8 $ (11.7 ) $ 387.8 $ (21.8 ) $ 654.6 $ (33.5 ) Amounts outside the closed block $ 501.8 $ (15.3 ) $ 665.4 $ (51.4 ) $ 1,167.2 $ (66.7 ) Debt securities outside the closed block that are below investment grade $ 84.2 $ (4.1 ) $ 50.4 $ (6.6 ) $ 134.6 $ (10.7 ) Number of securities 158 211 369 |
Credit Losses Recognized in Earnings on Debt Securities | The following table presents a roll-forward of pre-tax credit losses recognized in earnings related to available-for-sale debt securities for which a portion of the OTTI was recognized in OCI. Credit Losses Recognized in Earnings on Available-for-Sale Debt Securities for which a Portion of the OTTI Loss was Recognized in OCI: As of December 31, ($ in millions) 2015 2014 2013 Balance, beginning of period $ (52.4 ) $ (71.4 ) $ (72.6 ) Add: Credit losses on securities not previously impaired [1] (3.4 ) — (1.1 ) Add: Credit losses on securities previously impaired [1] (2.3 ) — (4.1 ) Less: Credit losses on securities impaired due to intent to sell — — — Less: Credit losses on securities sold 12.5 19.0 6.4 Less: Increases in cash flows expected on previously impaired securities — — — Balance, end of period $ (45.6 ) $ (52.4 ) $ (71.4 ) ——————— [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 consolidated statements of operations and comprehensive income. |
Limited Partnerships and Other Investments | Limited partnerships and other investments Limited Partnerships and Other Investments: As of December 31, ($ in millions) 2015 2014 Limited partnerships Private equity funds $ 257.0 $ 241.1 Mezzanine funds 159.6 162.4 Infrastructure funds 35.8 38.9 Hedge funds 9.9 10.7 Mortgage and real estate funds 4.6 3.7 Leveraged leases 4.7 11.8 Direct equity investments 44.9 49.6 Life settlements — 22.4 Other alternative assets 2.2 2.2 Limited partnerships and other investments $ 518.7 $ 542.8 Amounts applicable to the closed block $ 352.7 $ 343.4 |
Aggregated Summarized Balance Sheet Information of Equity Method Investees | The following tables present the aggregated summarized financial information of certain equity method investees in limited partnerships and LLCs. For all three periods, the equity in earnings that we record through net investment income of these equity method investees in aggregate exceeds 10% of the Company’s income from continuing operations before income taxes. Aggregated Summarized Balance Sheet Information of Equity Method Investees: As of December 31, ($ in millions) 2015 2014 Total assets $ 53,961.0 $ 58,694.1 Total liabilities $ 2,165.3 $ 1,630.2 Aggregated Net Investment Income: For the years ended December 31, ($ in millions) 2015 2014 2013 Total investment revenues $ 2,386.2 $ 2,329.9 $ 2,759.7 Net income $ 5,391.6 $ 5,869.2 $ 9,297.3 |
Investment in Leveraged Leases | Investment in leveraged leases, included in limited partnerships and other investments, consisted of the following: Investment in Leveraged Leases: ($ in millions) 2015 2014 Rental receivables, net $ 2.1 $ 4.9 Estimated residual values 3.0 7.3 Unearned income (0.4 ) (0.4 ) Investment in leveraged leases $ 4.7 $ 11.8 |
Carrying value and change in investment balance of non-consolidated direct equity investments | The following table presents the carrying value and change in investment balance of non-consolidated direct equity investments: Carrying Value and Change in Investment Balance of Non-Consolidated Direct Equity Investments: ($ in millions) Balance as of December 31, 2013 $ 44.5 Net contributions (distributions) (2.7 ) Net income (loss) 7.8 Balance as of December 31, 2014 49.6 Net contributions (distributions) (0.7 ) Net income (loss) (4.0 ) Balance as of December 31, 2015 $ 44.9 |
Sources of Net Investment Income | Sources of Net Investment Income: For the years ended December 31, ($ in millions) 2015 2014 2013 Debt securities [1] $ 595.1 $ 581.6 $ 565.0 Equity securities 6.9 9.2 7.2 Limited partnerships and other investments 58.1 65.3 58.3 Policy loans 170.7 167.4 160.0 Fair value investments 30.3 25.4 14.1 Total investment income 861.1 848.9 804.6 Less: Discontinued operations 1.4 1.1 1.3 Less: Investment expenses 24.8 16.9 13.6 Net investment income $ 834.9 $ 830.9 $ 789.7 Amounts applicable to the closed block $ 395.0 $ 411.1 $ 409.6 ——————— [1] Includes net investment income on short-term investments. |
Sources and Types of Net Realized Investment Gains (Losses) | Sources and Types of Net Realized Gains (Losses): For the years ended December 31, ($ in millions) 2015 2014 2013 Total other-than-temporary debt impairments $ (12.0 ) $ (5.6 ) $ (7.0 ) Portion of losses recognized in OCI (2.0 ) (0.4 ) (4.8 ) Net debt impairments recognized in earnings $ (14.0 ) $ (6.0 ) $ (11.8 ) Debt security impairments: U.S. government and agency $ — $ — $ — State and political subdivision — — — Foreign government — — — Corporate (13.8 ) (6.0 ) (3.8 ) CMBS — — (2.7 ) RMBS (0.2 ) — (4.3 ) CDO/CLO — — (1.0 ) Other ABS — — — Net debt security impairments (14.0 ) (6.0 ) (11.8 ) Equity security impairments (8.8 ) (2.1 ) — Limited partnerships and other investment impairments — — — Impairment losses (22.8 ) (8.1 ) (11.8 ) Debt security transaction gains 42.5 41.8 45.3 Debt security transaction losses (5.0 ) (17.7 ) (2.2 ) Equity security transaction gains 1.7 10.4 4.2 Equity security transaction losses — (1.0 ) (3.8 ) Limited partnerships and other investment transaction gains — — 0.8 Limited partnerships and other investment transaction losses (7.1 ) (0.7 ) (4.6 ) Net transaction gains (losses) 32.1 32.8 39.7 Derivative instruments (31.1 ) (20.8 ) (27.7 ) Embedded derivatives [1] (3.1 ) (45.9 ) 12.2 Assets valued at fair value (7.9 ) 0.8 3.6 Net realized gains (losses), excluding impairment losses (10.0 ) (33.1 ) 27.8 Net realized gains (losses), including impairment losses $ (32.8 ) $ (41.2 ) $ 16.0 ——————— [1] Includes the change in fair value of embedded derivatives associated with fixed index annuity indexed crediting feature and variable annuity riders. See Note 10 to these consolidated financial statements for additional disclosures. |
Sources of Changes in Net Unrealized Investment Gains | Sources of Changes in Net Unrealized Gains (Losses): For the years ended December 31, ($ in millions) 2015 2014 2013 Debt securities $ (504.2 ) $ 311.3 $ (538.1 ) Equity securities 3.9 4.8 2.7 Other investments (2.3 ) (4.1 ) 0.6 Net unrealized investment gains (losses) $ (502.6 ) $ 312.0 $ (534.8 ) Net unrealized investment gains (losses) $ (502.6 ) $ 312.0 $ (534.8 ) Applicable to closed block policyholder dividend obligation (241.4 ) 138.8 (308.4 ) Applicable to DAC (82.9 ) 52.5 (94.4 ) Applicable to other actuarial offsets (70.6 ) 54.2 (69.3 ) Applicable to deferred income tax expense (benefit) (71.3 ) 35.7 (20.5 ) Offsets to net unrealized investment gains (losses) (466.2 ) 281.2 (492.6 ) Net unrealized gains (losses) included in OCI $ (36.4 ) $ 30.8 $ (42.2 ) |
Carrying Value of Assets and Liabilities | The following table presents the total assets and total liabilities relating to consolidated VIEs at December 31, 2015 and 2014 . Carrying Value of Assets and Liabilities for Consolidated Variable Interest Entities: December 31, 2015 December 31, 2014 ($ in millions) Assets Liabilities Maximum Exposure to Loss [ 1] Assets Liabilities Maximum Exposure to Loss [ 1] Debt securities, at fair value [2] $ 14.7 $ — $ 10.4 $ 5.5 $ — $ 5.1 Equity securities, at fair value [2] 63.0 — 56.9 35.0 — 30.0 Cash and cash equivalents 6.9 — 6.7 9.4 — 9.3 Investment in partnership interests [2] — — — — — — Investment in single asset LLCs [2] 3.9 — 2.8 50.6 — 36.6 Other assets 5.4 — 4.3 0.6 — 0.5 Total assets of consolidated VIEs $ 93.9 $ — $ 81.1 $ 101.1 $ — $ 81.5 Total liabilities of consolidated VIEs $ — $ 1.1 $ — $ — $ 0.6 $ 0.5 ——————— [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 December 31, 2015 and 2014 excludes unfunded commitments of $6.5 million and $11.9 million , respectively. [2] Included in fair value investments on the consolidated balance sheets. Carrying Value of Assets and Liabilities and Maximum Exposure Loss Relating to Variable Interest Entities: December 31, 2015 December 31, 2014 ($ in millions) Assets Liabilities Maximum Exposure to Loss [ 1] Assets Liabilities Maximum Exposure to Loss [ 1] Limited partnerships $ 83.8 $ — $ 132.0 $ 106.0 $ — $ 157.8 LLCs 13.4 — 13.4 45.5 — 45.5 Total $ 97.2 $ — $ 145.4 $ 151.5 $ — $ 203.3 ——————— [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. |
Financing Activities (Tables)
Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Debt | The carrying value of our debt was as follows: Indebtedness at Carrying Value : As of December 31, ($ in millions) 2015 2014 7.15% surplus notes, due 2034 $ 126.2 $ 126.2 7.45% senior unsecured bonds, due 2032 252.7 252.7 Total indebtedness $ 378.9 $ 378.9 |
Separate Accounts, Death Bene41
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives(Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Separate Accounts Disclosure [Abstract] | |
Separate Account Investments of Account Balances of Variable Annuity Contracts with Guarantees | Separate Account Investments of Account Balances of Variable Annuity Contracts with Insurance Guarantees: As of December 31, ($ in millions) 2015 2014 Debt securities $ 300.5 $ 375.9 Equity funds 1,325.6 1,638.6 Other 43.7 49.9 Total $ 1,669.8 $ 2,064.4 |
Changes in Guaranteed Liability Balances | Changes in Additional Liability Balances: Universal Life Profits Followed by Losses ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 351.5 $ 249.1 $ 311.7 Incurred 31.5 106.4 66.2 Assumption unlocking 19.7 (13.0 ) (129.9 ) Change due to net unrealized gains or losses included in AOCI (12.1 ) 9.0 1.1 Balance, end of period $ 390.6 $ 351.5 $ 249.1 Changes in Guaranteed Liability Balances: Universal Life Secondary Guarantees ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 195.8 $ 170.6 $ 138.5 Incurred 45.5 39.9 37.9 Paid (27.9 ) (15.3 ) (14.3 ) Assumption unlocking 0.7 (1.6 ) 10.9 Change due to net unrealized gains or losses included in AOCI (4.0 ) 2.2 (2.4 ) Balance, end of period $ 210.1 $ 195.8 $ 170.6 Changes in Guaranteed Liability Balances: Fixed Indexed Annuity GMWB and GMDB ($ in millions) For the years ended December 31, 2015 2014 2013 Balance, beginning of period $ 147.0 $ 85.4 $ 102.1 Incurred 54.1 33.4 60.8 Paid (0.4 ) (0.3 ) (0.3 ) Assumption unlocking (5.1 ) (7.4 ) (18.7 ) Change due to net unrealized gains or losses included in AOCI (42.8 ) 35.9 (58.5 ) Balance, end of period $ 152.8 $ 147.0 $ 85.4 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: For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 21.4 $ 17.1 Incurred 0.9 (0.9 ) Paid (2.7 ) (0.6 ) Assumption unlocking 0.6 (6.7 ) Change due to net unrealized gains or losses included in AOCI — — Balance, end of period $ 20.2 $ 8.9 Changes in Guaranteed Insurance Benefit For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 22.7 $ 9.8 Incurred 1.8 2.1 Paid (3.7 ) (0.2 ) Assumption unlocking 0.5 5.4 Change due to net unrealized gains or losses included in AOCI 0.1 — Balance, end of period $ 21.4 $ 17.1 Changes in Guaranteed Insurance Benefit For the year ended ($ in millions) Annuity GMDB Annuity GMIB Balance, beginning of period $ 15.9 $ 21.7 Incurred 2.1 (3.6 ) Paid (3.7 ) — Assumption unlocking 8.4 (8.2 ) Change due to net unrealized gains or losses included in AOCI — (0.1 ) Balance, end of period $ 22.7 $ 9.8 |
Schedule of Net Amount of Risk by Product and Guarantee | Following are the major types of death benefits currently in force: GMDB and GMIB Benefits by Type: December 31, 2015 ($ in millions) Account Value NAR before Reinsurance NAR after Reinsurance Average Attained Age of Annuitant GMDB return of premium $ 527.5 $ 1.7 $ 1.7 64 GMDB step up 1,453.7 146.5 47.7 65 GMDB earnings enhancement benefit (“EEB”) 24.0 2.6 2.6 65 GMDB greater of annual step up and roll up 19.6 6.1 6.1 70 Total GMDB at December 31, 2015 2,024.8 $ 156.9 $ 58.1 Less: General account value with GMDB 360.8 Subtotal separate account liabilities with GMDB 1,664.0 Separate account liabilities without GMDB 872.4 Total separate account liabilities $ 2,536.4 GMIB [1] at December 31, 2015 $ 253.8 66 GMDB and GMIB Benefits by Type: December 31, 2014 ($ in millions) Account Value NAR before Reinsurance NAR after Reinsurance Average Attained Age of Annuitant GMDB return of premium $ 661.5 $ 1.6 $ 1.6 63 GMDB step up 1,723.2 112.2 13.4 64 GMDB earnings enhancement benefit (“EEB”) 29.1 — — 65 GMDB greater of annual step up and roll up 22.7 4.8 4.8 69 Total GMDB at December 31, 2014 2,436.5 $ 118.6 $ 19.8 Less: General account value with GMDB 378.6 Subtotal separate account liabilities with GMDB 2,057.9 Separate account liabilities without GMDB 962.8 Total separate account liabilities $ 3,020.7 GMIB [1] at December 31, 2014 $ 319.6 65 ——————— [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 to GMIB is released. Similarly, when a policy goes into benefit status on a GMIB, its GMDB NAR is released. |
Non-Insurance Guaranteed Product Features | Embedded derivative liabilities for GMWB, GMAB and COMBO are shown in the table below. Embedded Derivative Liabilities: As of December 31, ($ in millions) 2015 2014 GMWB $ 9.0 $ 7.3 GMAB 0.2 (0.3 ) COMBO (0.1 ) (0.2 ) Total embedded derivative liabilities $ 9.1 $ 6.8 These features are accounted for as embedded derivatives as described below. Embedded Derivatives Non-Insurance Guaranteed Product Features: As of December 31, 2015 ($ in millions) Account Value Average Attained Age of Annuitant GMWB $ 385.1 66 GMAB 223.5 60 COMBO 4.9 65 Balance, end of period $ 613.5 Embedded Derivatives Non-Insurance Guaranteed Product Features: As of December 31, 2014 ($ in millions) Account Value Average Attained Age of Annuitant GMWB $ 496.8 65 GMAB 315.6 59 COMBO 7.1 65 Balance, end of period $ 819.5 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables summarize the balance sheet classification of the Company’s gross derivative asset and liability fair value amounts. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the tables below to quantify the volume of the Company’s derivative activity. Derivative Instruments: Maturity Notional Amount Fair Value as of ($ in millions) Assets Liabilities [1] Interest rate swaps 2018 - 2035 $ 159.0 $ 2.8 $ 0.5 Variance swaps 2016 - 2017 0.7 — 6.5 Swaptions 2016 2,790.0 10.4 3.6 Put options 2016 - 2022 800.4 31.3 6.0 Call options [2] 2016 - 2020 2,502.1 57.5 32.3 Cross currency swaps 2016 10.0 1.5 — Equity futures 2016 31.8 — 0.4 Total derivative instruments $ 6,294.0 $ 103.5 $ 49.3 ——————— [1] Derivative liabilities are included in other liabilities on the consolidated balance sheets. [2] Includes a contingent receivable of $1.5 million . Derivative Instruments: Maturity Notional Amount Fair Value as of ($ in millions) Assets Liabilities [1] Interest rate swaps 2016 - 2029 $ 114.0 $ 9.7 $ 1.9 Variance swaps 2015 - 2017 0.9 — 8.6 Swaptions 2024 - 2025 777.0 0.1 — Put options 2015 - 2022 692.5 31.1 — Call options [2] 2015 - 2019 2,019.2 119.8 74.6 Cross currency swaps 2016 10.0 0.6 — Equity futures 2015 4.1 — 0.5 Total derivative instruments $ 3,617.7 $ 161.3 $ 85.6 ——————— [1] Derivative liabilities are included in other liabilities on the consolidated balance sheets. [2] Includes a contingent receivable of $1.5 million . |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Derivative Instrument Gains (Losses) Recognized in Realized Investment Gains (Losses): For the years ended December 31, ($ in millions) 2015 2014 2013 Interest rate swaps $ 4.8 $ 11.0 $ (11.4 ) Variance swaps (0.9 ) (0.7 ) (3.6 ) Swaptions (4.1 ) (30.6 ) 17.3 Put options (9.2 ) (4.8 ) (42.3 ) Call options (22.2 ) 18.5 59.3 Cross currency swaps 0.8 1.3 (0.5 ) Equity futures (0.3 ) (15.5 ) (46.5 ) Embedded derivatives (3.1 ) (45.9 ) 12.2 Total derivative instrument gains (losses) recognized in realized investment gains (losses) $ (34.2 ) $ (66.7 ) $ (15.5 ) |
Offsetting Assets | 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. Offsetting of Derivative Assets/Liabilities: As of December 31, 2015 ($ in millions) Gross amounts recognized [1] Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral pledged [2] Total derivative assets $ 103.5 $ — $ 103.5 $ (47.4 ) $ — $ 56.1 Total derivative liabilities $ (49.3 ) $ — $ (49.3 ) $ 47.4 $ 1.9 $ — Offsetting of Derivative Assets/Liabilities: As of December 31, 2014 ($ in millions) Gross amounts recognized [1] Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral pledged [2] Total derivative assets $ 161.3 $ — $ 161.3 $ (82.5 ) $ — $ 78.8 Total derivative liabilities $ (85.6 ) $ — $ (85.6 ) $ 82.5 $ 3.1 $ — ——————— [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 consolidated balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $18.7 million and $15.5 million as of December 31, 2015 and 2014 , respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. |
Offsetting Liabilities | Offsetting of Derivative Assets/Liabilities: As of December 31, 2015 ($ in millions) Gross amounts recognized [1] Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral pledged [2] Total derivative assets $ 103.5 $ — $ 103.5 $ (47.4 ) $ — $ 56.1 Total derivative liabilities $ (49.3 ) $ — $ (49.3 ) $ 47.4 $ 1.9 $ — Offsetting of Derivative Assets/Liabilities: As of December 31, 2014 ($ in millions) Gross amounts recognized [1] Gross amounts offset in the balance sheet Net amounts presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral pledged [2] Total derivative assets $ 161.3 $ — $ 161.3 $ (82.5 ) $ — $ 78.8 Total derivative liabilities $ (85.6 ) $ — $ (85.6 ) $ 82.5 $ 3.1 $ — ——————— [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 consolidated balance sheets. The Company pledges cash collateral to offset certain individual derivative liability positions with certain counterparties. Cash collateral of $18.7 million and $15.5 million as of December 31, 2015 and 2014 , respectively, that exceeds the net liability resulting from the aggregate derivative positions with a corresponding counterparty is excluded. |
Fair Value of Financial Instr43
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Nonrecurring | The following tables present the financial instruments carried at fair value on a recurring basis by ASC 820-10 valuation hierarchy (as described above). There were no financial instruments carried at fair value on a non-recurring basis as of December 31, 2015 and 2014 , respectively. Fair Values of Financial Instruments by Level: As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total Assets Available-for-sale debt securities U.S. government and agency [1] $ — $ 128.7 $ 460.9 $ 589.6 State and political subdivision — 357.5 179.9 537.4 Foreign government — 234.5 8.4 242.9 Corporate — 4,933.6 3,408.6 8,342.2 CMBS — 662.1 22.0 684.1 RMBS — 1,223.9 22.3 1,246.2 CDO/CLO — 308.3 1.2 309.5 Other ABS — 161.5 77.3 238.8 Total available-for-sale debt securities — 8,010.1 4,180.6 12,190.7 Available-for-sale equity securities — 97.2 84.8 182.0 Short-term investments — 159.8 5.0 164.8 Derivative assets — 103.5 — 103.5 Fair value investments [2] 18.8 57.9 88.3 165.0 Separate account assets 2,536.4 — — 2,536.4 Total assets $ 2,555.2 $ 8,428.5 $ 4,358.7 $ 15,342.4 Liabilities Derivative liabilities $ 0.4 $ 48.9 $ — $ 49.3 Embedded derivatives — — 165.9 165.9 Total liabilities $ 0.4 $ 48.9 $ 165.9 $ 215.2 ——————— [1] Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. [2] Fair value investments at December 31, 2015 include $59.0 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 $18.8 million , which are Level 1 securities. Changes in the fair value of these assets are recorded through net investment income. Additionally, $87.2 million of assets relate to investment holdings of consolidated VIEs held at fair value. All short-term investments were transfered from Level 1 to Level 2 in the fourth quarter of 2015. There were no other transfers of assets between Level 1 and Level 2 during the year ended December 31, 2015 . Fair Values of Financial Instruments by Level: As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total Assets Available-for-sale debt securities U.S. government and agency [1] $ — $ 81.2 $ 362.2 $ 443.4 State and political subdivision — 157.7 400.2 557.9 Foreign government — 177.3 53.6 230.9 Corporate — 3,994.2 4,403.9 8,398.1 CMBS — 498.4 152.8 651.2 RMBS — 1,461.9 470.3 1,932.2 CDO/CLO — — 196.9 196.9 Other ABS — 23.6 245.1 268.7 Total available-for-sale debt securities — 6,394.3 6,285.0 12,679.3 Available-for-sale equity securities — — 179.5 179.5 Short-term investments 149.7 — — 149.7 Derivative assets — 161.3 — 161.3 Fair value investments [2] 32.4 13.0 190.0 235.4 Separate account assets 3,020.7 — — 3,020.7 Total assets $ 3,202.8 $ 6,568.6 $ 6,654.5 $ 16,425.9 Liabilities Derivative liabilities $ 0.5 $ 85.1 $ — $ 85.6 Embedded derivatives — — 160.7 160.7 Total liabilities $ 0.5 $ 85.1 $ 160.7 $ 246.3 ——————— [1] Level 3 includes securities whose underlying collateral is an obligation of a U.S. government entity. [2] Fair value investments at December 31, 2014 include $111.9 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 $23.5 million as of December 31, 2014 . Changes in the fair value of these assets are recorded through net investment income. Additionally, $100.0 million of assets relate to investment holdings of consolidated VIEs held at fair value, $8.8 million of which are Level 1 securities. |
Fair Value, Assets Measured on Recurring Basis | The following tables present corporates carried at fair value and on a recurring basis by sector. Fair Values of Corporates by Level and Sector: As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total Corporates Consumer $ — $ 895.6 $ 1,249.6 $ 2,145.2 Energy — 636.4 293.2 929.6 Financial services — 1,773.8 354.0 2,127.8 Capital goods — 521.2 262.8 784.0 Transportation — 175.9 284.5 460.4 Utilities — 417.5 700.1 1,117.6 Other — 513.2 264.4 777.6 Total corporates $ — $ 4,933.6 $ 3,408.6 $ 8,342.2 Fair Values of Corporates by Level and Sector: As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total Corporates Consumer $ — $ 593.0 $ 1,266.6 $ 1,859.6 Energy — 534.6 472.8 1,007.4 Financial services — 1,617.3 967.9 2,585.2 Capital goods — 398.1 384.8 782.9 Transportation — 104.7 305.8 410.5 Utilities — 348.1 683.4 1,031.5 Other — 398.4 322.6 721.0 Total corporates $ — $ 3,994.2 $ 4,403.9 $ 8,398.1 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | 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. Transfers in and out of Level 3 occur at the beginning of each period. The securities which were transferred into Level 3 for the years ended December 31, 2015 and 2014 were due to decreased market observability of similar assets and/or changes to significant inputs. Transfers out of Level 3 for the year ended December 31, 2015 were due to the implementation of due diligence procedures which allowed for a refinement of the analysis of observable inputs as described in more detail above. Transfers out of Level 3 for the year ended December 31, 2014 were due to increased market activity for comparable instruments or observability of inputs. Level 3 Financial Assets: As of December 31, 2015 ($ in millions) Balance, beginning of period Purchases Sales Transfers into Level 3 Transfers out of Level 3 Realized and unrealized gains (losses) included in income [1] Unrealized gains (losses) included in OCI Total Assets Available-for-sale debt securities U.S. government and agency [2] $ 362.2 $ 25.1 $ (23.8 ) $ 117.0 $ (6.3 ) $ 2.3 $ (15.6 ) $ 460.9 State and political subdivision 400.2 41.1 (14.1 ) — (238.7 ) 2.7 (11.3 ) 179.9 Foreign government 53.6 — (0.3 ) 14.8 (61.0 ) (0.3 ) 1.6 8.4 Corporate 4,403.9 690.4 (532.9 ) 354.0 (1,328.3 ) (48.1 ) (130.4 ) 3,408.6 CMBS 152.8 30.1 (5.6 ) 25.6 (176.8 ) 0.2 (4.3 ) 22.0 RMBS 470.3 0.7 (73.8 ) — (368.7 ) (1.1 ) (5.1 ) 22.3 CDO/CLO 196.9 166.2 (58.2 ) — (304.5 ) 0.2 0.6 1.2 Other ABS 245.1 4.5 (27.6 ) — (139.8 ) (0.1 ) (4.8 ) 77.3 Total available-for-sale debt securities 6,285.0 958.1 (736.3 ) 511.4 (2,624.1 ) (44.2 ) (169.3 ) 4,180.6 Available-for-sale equity securities 179.5 20.2 (14.9 ) — (92.6 ) (9.5 ) 2.1 84.8 Short-term investments — 5.0 — — — — — 5.0 Fair value investments 190.0 11.7 (79.4 ) — (44.9 ) 10.9 — 88.3 Total assets $ 6,654.5 $ 995.0 $ (830.6 ) $ 511.4 $ (2,761.6 ) $ (42.8 ) $ (167.2 ) $ 4,358.7 ——————— [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: As of December 31, 2014 ($ in millions) Balance, beginning of period Purchases Sales Transfers into Level 3 Transfers out of Level 3 Realized and unrealized gains (losses) included in income [1] Unrealized gains (losses) included in OCI Total Assets Available-for-sale debt securities U.S. government and agency [2] $ 327.2 $ 40.0 $ (26.7 ) $ — $ — $ — $ 21.7 $ 362.2 State and political subdivision 269.1 106.5 (6.5 ) 11.3 — — 19.8 400.2 Foreign government 15.9 7.4 — 28.5 — — 1.8 53.6 Corporate 3,893.8 710.9 (428.9 ) 244.0 (97.9 ) 4.6 77.4 4,403.9 CMBS 113.7 25.1 (36.6 ) 71.1 (30.4 ) 1.4 8.5 152.8 RMBS 552.7 3.1 (75.5 ) — (4.3 ) 3.1 (8.8 ) 470.3 CDO/CLO 224.1 41.4 (61.6 ) — — 2.7 (9.7 ) 196.9 Other ABS 247.7 26.1 (40.0 ) 17.6 — 1.7 (8.0 ) 245.1 Total available-for-sale 5,644.2 960.5 (675.8 ) 372.5 (132.6 ) 13.5 102.7 6,285.0 Available-for-sale equity securities 135.2 65.0 (21.2 ) — — 3.7 (3.2 ) 179.5 Short-term investments 0.9 — (0.5 ) — — (0.4 ) — Fair value investments 169.9 14.4 (22.2 ) — — 27.9 — 190.0 Total assets $ 5,950.2 $ 1,039.9 $ (719.7 ) $ 372.5 $ (132.6 ) $ 44.7 $ 99.5 $ 6,654.5 ——————— [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. |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | Level 3 Financial Liabilities: Embedded Derivatives ($ in millions) For the years ended December 31, 2015 2014 Balance, beginning of period $ 160.7 $ 87.8 Net purchases / settlements 2.1 27.1 Transfers into Level 3 — — Transfers out of Level 3 — — Realized (gains) losses 3.1 45.8 Balance, end of period $ 165.9 $ 160.7 |
Fair Value Inputs, Assets, Quantitative Information | The following tables present quantitative estimates about unobservable inputs used in the fair value measurement of significant categories of internally priced assets. Level 3 Assets: [1] As of December 31, 2015 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) U.S. government and agency $ 459.9 Discounted cash flow Yield 1.44% - 4.83% (3.52%) State and political subdivision $ 179.9 Discounted cash flow Yield 2.04% - 14.79% (4.14%) Foreign government $ 4.1 Discounted cash flow Yield 2.06% Corporate $ 3,135.8 Discounted cash flow Yield 1.11% - 11.20% (3.75%) Other ABS $ 34.4 Discounted cash flow Yield 1.07% - 3.20% (2.14%) Fair value investments $ 6.6 Discounted cash flow Default rate 0.15% Recovery rate 43.00% ——————— [1] Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. Level 3 Assets: [1] As of December 31, 2014 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) U.S. government and agency $ 362.2 Discounted cash flow Yield 0.99% - 4.27% (3.17%) State and political subdivision $ 159.1 Discounted cash flow Yield 2.15% - 4.50% (3.22%) Corporate $ 3,116.6 Discounted cash flow Yield 0.93% - 6.88% (3.24%) Other ABS $ 39.3 Discounted cash flow Yield 0.60% - 4.00% (1.92%) Fair value investments $ 6.3 Discounted cash flow Default rate 0.17% Recovery rate 44.00% ——————— [1] Excludes Level 3 assets which are valued based upon non-binding independent third-party valuations or third-party price information for which unobservable inputs are not reasonably available to us. Level 3 Assets and Liabilities by Pricing Source: As of December 31, 2015 ($ in millions) Internal [1] External [2] Total Assets Available-for-sale debt securities U.S. government and agency [3] $ 459.9 $ 1.0 $ 460.9 State and political subdivision 179.9 — 179.9 Foreign government 4.1 4.3 8.4 Corporate 3,135.8 272.8 3,408.6 CMBS — 22.0 22.0 RMBS — 22.3 22.3 CDO/CLO — 1.2 1.2 Other ABS 34.4 42.9 77.3 Total available-for-sale debt securities 3,814.1 366.5 4,180.6 Available-for-sale equity securities — 84.8 84.8 Short-term investments — 5.0 5.0 Fair value investments 6.6 81.7 88.3 Total assets $ 3,820.7 $ 538.0 $ 4,358.7 Liabilities Embedded derivatives $ 165.9 $ — $ 165.9 Total liabilities $ 165.9 $ — $ 165.9 ——————— [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 December 31, 2014 ($ in millions) Internal [1] External [2] Total Assets Available-for-sale debt securities U.S. government and agency [3] $ 362.2 $ — $ 362.2 State and political subdivision 159.1 241.1 400.2 Foreign government — 53.6 53.6 Corporate 3,116.6 1,287.3 4,403.9 CMBS — 152.8 152.8 RMBS — 470.3 470.3 CDO/CLO — 196.9 196.9 Other ABS 39.3 205.8 245.1 Total available-for-sale debt securities 3,677.2 2,607.8 6,285.0 Available-for-sale equity securities — 179.5 179.5 Short-term investments — — — Fair value investments 6.3 183.7 190.0 Total assets $ 3,683.5 $ 2,971.0 $ 6,654.5 Liabilities Embedded derivatives $ 160.7 $ — $ 160.7 Total liabilities $ 160.7 $ — $ 160.7 ——————— [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 Inputs, Liabilities, Quantitative Information | The following tables present quantitative estimates about unobservable inputs used in the fair value measurement of internally priced liabilities. Level 3 Liabilities: As of December 31, 2015 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range Embedded derivatives (FIA) $ 156.8 Budget method Swap curve 0.55% - 2.46% Mortality rate 100% or 90% 2012 IAM basic table Lapse rate 0.50% - 32.50% CSA 4.45% Embedded derivatives (GMAB / GMWB / COMBO) $ 9.1 Risk neutral stochastic Volatility surface 4.80% - 72.02% Swap curve 0.57% - 2.68% Mortality rate 110% 2012 IAM basic table Lapse rate 0.00% - 53.00% CSA 4.45% Level 3 Liabilities: As of December 31, 2014 ($ in millions) Fair Value Valuation Technique(s) Unobservable Input Range Embedded derivatives (FIA) $ 153.9 Budget method Swap curve 0.24% - 2.55% Mortality rate 105% or 97% 2012 IAM basic table Lapse rate 0.04% - 46.44% CSA 3.08% Embedded derivatives (GMAB / GMWB / COMBO) $ 6.8 Risk neutral stochastic Volatility surface 9.89% - 67.34% Swap curve 0.21% - 2.76% Mortality rate 105% 2012 IAM basic table Lapse rate 0.00% - 40.00% CSA 3.08% Level 3 Assets and Liabilities by Pricing Source: As of December 31, 2015 ($ in millions) Internal [1] External [2] Total Assets Available-for-sale debt securities U.S. government and agency [3] $ 459.9 $ 1.0 $ 460.9 State and political subdivision 179.9 — 179.9 Foreign government 4.1 4.3 8.4 Corporate 3,135.8 272.8 3,408.6 CMBS — 22.0 22.0 RMBS — 22.3 22.3 CDO/CLO — 1.2 1.2 Other ABS 34.4 42.9 77.3 Total available-for-sale debt securities 3,814.1 366.5 4,180.6 Available-for-sale equity securities — 84.8 84.8 Short-term investments — 5.0 5.0 Fair value investments 6.6 81.7 88.3 Total assets $ 3,820.7 $ 538.0 $ 4,358.7 Liabilities Embedded derivatives $ 165.9 $ — $ 165.9 Total liabilities $ 165.9 $ — $ 165.9 ——————— [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 December 31, 2014 ($ in millions) Internal [1] External [2] Total Assets Available-for-sale debt securities U.S. government and agency [3] $ 362.2 $ — $ 362.2 State and political subdivision 159.1 241.1 400.2 Foreign government — 53.6 53.6 Corporate 3,116.6 1,287.3 4,403.9 CMBS — 152.8 152.8 RMBS — 470.3 470.3 CDO/CLO — 196.9 196.9 Other ABS 39.3 205.8 245.1 Total available-for-sale debt securities 3,677.2 2,607.8 6,285.0 Available-for-sale equity securities — 179.5 179.5 Short-term investments — — — Fair value investments 6.3 183.7 190.0 Total assets $ 3,683.5 $ 2,971.0 $ 6,654.5 Liabilities Embedded derivatives $ 160.7 $ — $ 160.7 Total liabilities $ 160.7 $ — $ 160.7 ——————— [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, by Balance Sheet Grouping | The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ: Carrying Amounts and Fair Values of Financial Instruments: As of December 31, ($ in millions) Fair Value Hierarchy Level 2015 2014 Carrying Value Fair Value Carrying Value Fair Value Financial assets: Policy loans Level 3 $ 2,382.5 $ 2,368.7 $ 2,352.1 $ 2,339.2 Life settlements Level 3 $ — $ — $ 22.4 $ 17.4 Financial liabilities: Investment contracts Level 3 $ 4,333.2 $ 4,334.6 $ 3,955.0 $ 3,957.3 7.15% Surplus notes Level 3 $ 126.2 $ 91.4 $ 126.2 $ 95.8 7.45% Senior unsecured bonds Level 2 $ 252.7 $ 206.1 $ 252.7 $ 248.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Income Taxes | Significant Components of Income Taxes from Continuing Operations: For the years ended December 31, ($ in millions) 2015 2014 2013 Current U.S. $ (34.3 ) $ 10.5 $ 8.5 Foreign — — — Deferred U.S. — — — Foreign — — — Total income tax expense (benefit) $ (34.3 ) $ 10.5 $ 8.5 |
Reconciliation of Effective Income Tax Rate | Reconciliation of Effective Income Tax Rate: For the years ended December 31, ($ in millions) 2015 2014 2013 Income (loss) from continuing operations before income taxes: U.S. $ (159.3 ) $ (195.2 ) $ 38.1 Foreign — — — Total $ (159.3 ) $ (195.2 ) $ 38.1 Income tax expense (benefit) at statutory rate of 35% $ (55.8 ) $ (68.3 ) $ 13.3 Dividend received deduction (3.5 ) (3.0 ) (2.3 ) Expiration of tax attribute carryovers 12.9 7.4 4.5 Impact of deferred tax validation — 0.5 — Noncontrolling interest (2.4 ) (1.4 ) (0.2 ) Valuation allowance increase (release) 21.3 79.3 (4.1 ) State income taxes (benefit) (5.3 ) (4.3 ) (2.8 ) Other, net (1.5 ) 0.3 0.1 Income tax expense (benefit) applicable to continuing operations $ (34.3 ) $ 10.5 $ 8.5 Effective income tax rates 21.5% (5.4%) 22.3% |
Allocation of Income Taxes | Allocation of Income Taxes: For the years ended December 31, ($ in millions) 2015 2014 2013 Income tax expense (benefit) from continuing operations $ (34.3 ) $ 10.5 $ 8.5 Income tax from OCI: Unrealized investment (gains) losses (71.3 ) 35.7 (20.5 ) Pension — — — Policy dividend obligation and DAC — — — Other — — — Income tax benefit from discontinued operations (0.1 ) (0.4 ) (0.3 ) Total income tax recorded to all components of income $ (105.7 ) $ 45.8 $ (12.3 ) |
Deferred Income Tax | Deferred Income Tax Balances Attributable to Temporary Differences: As of December 31, ($ in millions) 2015 2014 Deferred income tax assets Future policyholder benefits $ 748.1 $ 792.0 Employee benefits 128.9 124.4 Net operating and capital loss carryover benefits 222.4 198.5 Foreign tax credits carryover benefits 1.6 2.3 Alternative minimum tax credits 12.9 12.9 General business tax credits 35.4 17.7 Other 9.9 32.8 Available-for-sale debt securities 105.5 34.2 Subtotal 1,264.7 1,214.8 Valuation allowance (599.7 ) (613.0 ) Total deferred income tax assets, net of valuation allowance 665.0 601.8 Deferred tax liabilities DAC 227.4 188.1 Investments 181.1 241.7 Accrued liabilities 151.0 137.8 Gross deferred income tax liabilities 559.5 567.6 Net deferred income tax assets $ 105.5 $ 34.2 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | Changes in each component of AOCI attributable to the Company for the years ended December 31 are as follows below (net of tax): Accumulated Other Comprehensive Income (Loss) Attributable to The Phoenix Companies, Inc.: ($ in millions) Net Unrealized Gains / (Losses) on Investments where Credit-related OTTI was Recognized Net Unrealized Gains / (Losses) on All Other Investments [1] Net Pension Liability Adjustments Total Balance as of December 31, 2013 $ 7.0 $ 26.9 $ (218.9 ) $ (185.0 ) Change in component during the period before reclassifications 9.5 37.9 (84.8 ) (37.4 ) Amounts reclassified from AOCI (6.6 ) (10.0 ) 4.6 (12.0 ) Balance as of December 31, 2014 9.9 54.8 (299.1 ) (234.4 ) Change in component during the period before reclassifications (10.4 ) (15.3 ) (1.8 ) (27.5 ) Amounts reclassified from AOCI 4.8 (15.5 ) 6.4 (4.3 ) Balance as of December 31, 2015 $ 4.3 $ 24.0 $ (294.5 ) $ (266.2 ) ——————— [1] See Note 7 to these consolidated 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 Operations and Comprehensive Income ($ in millions) For the years ended December 31, 2015 2014 2013 Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: Available-for-sale securities $ (7.4 ) $ 10.1 $ (5.3 ) Net realized capital gains (losses) (7.4 ) 10.1 (5.3 ) Total before income taxes (2.6 ) 3.5 (1.8 ) Income tax expense (benefit) $ (4.8 ) $ 6.6 $ (3.5 ) Net income (loss) Net unrealized gains / (losses) on all other investments: Available-for-sale securities $ 23.8 $ 15.3 $ 37.0 Net realized capital gains (losses) 23.8 15.3 37.0 Total before income taxes 8.3 5.3 12.9 Income tax expense (benefit) $ 15.5 $ 10.0 $ 24.1 Net income (loss) Net pension liability adjustments: Amortization of actuarial gains (losses) $ (11.1 ) $ (8.2 ) $ (11.5 ) Other operating expense Amortization of prior service costs 1.2 1.1 1.2 Other operating expense (9.9 ) (7.1 ) (10.3 ) Total before income taxes (3.5 ) (2.5 ) (3.6 ) Income tax expense (benefit) $ (6.4 ) $ (4.6 ) $ (6.7 ) Net income (loss) Total amounts reclassified from AOCI $ 4.3 $ 12.0 $ 13.9 Net income (loss) |
Employee Benefit Plans and Em46
Employee Benefit Plans and Employment Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Weighted-average Assumptions Used in Calculating Benefit Obligations and Net Amount Recognized | The weighted-average assumptions used in calculating the benefit obligations and the net amount recognized for the years ended December 31, 2015 , 2014 and 2013 are presented in the following tables. Principal Rates and Assumptions: For the years ended December 31, 2015 2014 2013 Assumptions Used to Determine Benefit Obligations Discount rate – Employee Plan 4.54 % 4.10 % 4.84 % Discount rate – Supplemental Plans 4.43 % 3.97 % 4.69 % Discount rate – Other Post-Employment Benefits Plan 4.10 % 3.62 % 4.21 % Future compensation increase rate N/A [1] N/A [1] N/A [1] Deferred investment gain/loss amortization corridor – Employee Plan 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Supplemental Plans 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Other Post-Employment Benefits Plan 10.00 % 10.00 % 10.00 % Assumptions Used to Determine Benefit Expense Discount rate – Employee Plan 4.10 % 4.84 % 3.98 % Discount rate – Supplemental Plans 3.97 % 4.69 % 3.81 % Discount rate – Other Post-Employment Benefits Plan 3.62 % 4.21 % 3.37 % Future compensation increase rate N/A [1] N/A [1] N/A [1] Expected long-term rate of return - Employee Plan 7.50 % 7.50 % 7.75 % Deferred investment gain/loss amortization corridor – Employee Plan 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Supplemental Plans 5.00 % 5.00 % 5.00 % Deferred investment gain/loss amortization corridor – Other Post-Employment Benefits Plan 10.00 % 10.00 % 10.00 % ——————— [1] The Employee Plan was frozen effective March 31, 2010. For periods subsequent to the plan freeze, salary scale is not applicable. |
Reconciliation of Beginning and Ending Balances of Benefit Obligations and Fair Value of Plan Assets and Funded Status | The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation, as well as the funded status and AOCI of the Company’s Supplemental Plans, for the years ended December 31, 2015 and 2014 . Obligations and Funded Status: Supplemental Plans ($ in millions) For the years ended December 31, 2015 2014 Change in Benefit Obligation Benefit obligation, beginning of period $ 153.7 $ 137.4 Interest cost 5.9 6.4 Net actuarial (gain) loss (7.7 ) 18.6 Benefits paid (9.2 ) (8.7 ) Benefit obligation, end of period $ 142.7 $ 153.7 Under funded status, end of period [1] $ (142.7 ) $ (153.7 ) AOCI Net actuarial gain (loss) $ (68.7 ) $ (79.5 ) AOCI before income taxes $ (68.7 ) $ (79.5 ) Accumulated benefit obligation $ 142.7 $ 153.7 ——————— [1] Funded status as recognized in the consolidated balance sheets. The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation, as well as the funded status and AOCI of the Company’s Other Post-Employment Benefit Plan, for the years ended December 31, 2015 and 2014 . Obligations and Funded Status: Other Post-Employment Benefit Plan ($ in millions) For the years ended December 31, 2015 2014 Change in Benefit Obligation Benefit obligation, beginning of period $ 33.4 $ 36.5 Service and interest cost 1.2 1.5 Net actuarial (gain) loss (1.6 ) (0.7 ) Benefits paid (3.4 ) (3.9 ) Plan amendments (6.1 ) — Curtailment (0.6 ) — Benefit obligation, end of period $ 22.9 $ 33.4 Under funded status, end of period [1] $ (22.9 ) $ (33.4 ) AOCI Net actuarial gain (loss) $ 8.2 $ 6.9 Prior service credit (cost) 6.1 9.7 AOCI before income taxes $ 14.3 $ 16.6 Accumulated benefit obligation $ 22.9 $ 33.4 ——————— [1] Funded status as recognized in the consolidated balance sheets. The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation and fair value of plan assets, as well as the funded status and AOCI of the Company’s Employee Plan, for the years ended December 31, 2015 and 2014 . Obligations and Funded Status: Employee Plan ($ in millions) For the years ended December 31, 2015 2014 Change in Benefit Obligation Benefit obligation, beginning of period $ 714.9 $ 638.5 Service cost 3.0 2.3 Interest cost 28.7 30.1 Net actuarial (gain) loss (37.3 ) 79.7 Benefits paid (36.8 ) (35.7 ) Benefit obligation, end of period 672.5 714.9 Change in Plan Assets Fair value of plan assets, beginning of period 540.4 516.5 Plan assets’ actual return (10.2 ) 47.8 Employer contributions — 11.8 Benefits paid (36.8 ) (35.7 ) Fair value of plan assets, end of period 493.4 540.4 Under funded status, end of period [1] $ (179.1 ) $ (174.5 ) AOCI Net actuarial gain (loss) $ (240.2 ) $ (236.4 ) AOCI before income taxes $ (240.2 ) $ (236.4 ) Accumulated benefit obligation $ 672.5 $ 714.9 ——————— [1] Funded status as recognized in the consolidated balance sheets. |
Components of Net Periodic Benefit Costs and Other Changes in Plan Assets and Benefit Obligations Recognized in OCI | The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation, as well as the funded status and AOCI of the Company’s Supplemental Plans, for the years ended December 31, 2015 and 2014 . Obligations and Funded Status: Supplemental Plans ($ in millions) For the years ended December 31, 2015 2014 Change in Benefit Obligation Benefit obligation, beginning of period $ 153.7 $ 137.4 Interest cost 5.9 6.4 Net actuarial (gain) loss (7.7 ) 18.6 Benefits paid (9.2 ) (8.7 ) Benefit obligation, end of period $ 142.7 $ 153.7 Under funded status, end of period [1] $ (142.7 ) $ (153.7 ) AOCI Net actuarial gain (loss) $ (68.7 ) $ (79.5 ) AOCI before income taxes $ (68.7 ) $ (79.5 ) Accumulated benefit obligation $ 142.7 $ 153.7 ——————— [1] Funded status as recognized in the consolidated balance sheets. The components of net periodic benefit costs and other changes in benefit obligations recognized in OCI were as follows: Components of Supplemental Plans Benefit Expense: For the years ended December 31, ($ in millions) 2015 2014 2013 Net periodic benefit costs Service cost $ — $ — $ — Interest cost 5.9 6.4 5.6 Plan assets expected return — — — Net loss amortization 3.1 2.6 2.9 Prior service cost amortization — — — Net periodic benefit costs (credit) 9.0 9.0 8.5 Other changes in benefit obligations recognized in OCI Deferrals for the period – net actuarial (gain) loss (7.7 ) 18.6 (10.8 ) Amortization for the period – net actuarial gain (loss) (3.1 ) (2.6 ) (2.9 ) Total recognized in OCI (10.8 ) 16.0 (13.7 ) Total recognized in net periodic benefit costs and OCI $ (1.8 ) $ 25.0 $ (5.2 ) The estimated net actuarial loss that will be expected to be recognized from AOCI into net periodic benefit cost during 2016 is $2.7 million . The components of net periodic benefit costs and other changes in benefit obligations recognized in OCI were as follows: Components of Other Post-Employment Benefits Expense: For the years ended December 31, ($ in millions) 2015 2014 2013 Net periodic benefit costs Service cost $ 0.1 $ 0.1 $ 0.2 Interest cost 1.1 1.4 1.3 Net gain amortization (0.3 ) (0.3 ) — Prior service cost amortization (1.2 ) (1.1 ) (1.2 ) Curtailment (9.1 ) — — Net periodic benefit costs (credit) (9.4 ) 0.1 0.3 Other changes in benefit obligations recognized in OCI Deferrals for the period – net actuarial (gain) loss (1.6 ) (0.7 ) (2.2 ) Amortization for the period – net actuarial gain (loss) 0.3 0.3 — Deferrals for prior service credit (cost) (6.1 ) — — Amortization for prior service credit (cost) 9.6 1.1 1.2 Total recognized in OCI 2.2 0.7 (1.0 ) Total recognized in net periodic benefit costs and OCI $ (7.2 ) $ 0.8 $ (0.7 ) The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows: Components of Pension Benefit Expense: For the years ended December 31, ($ in millions) 2015 2014 2013 Net periodic benefit costs Service cost $ 3.0 $ 2.3 $ 2.1 Interest cost 28.7 30.1 27.0 Plan assets expected return (39.0 ) (37.5 ) (36.1 ) Net loss amortization 8.3 5.9 8.6 Net periodic benefit costs (credit) 1.0 0.8 1.6 Other changes in plan assets and benefit obligations recognized in OCI Deferrals for the period – net actuarial (gain) loss 11.9 69.7 (77.7 ) Amortization for the period – net actuarial gain (loss) (8.3 ) (5.9 ) (8.6 ) Total recognized in OCI 3.6 63.8 (86.3 ) Total recognized in net periodic benefit costs and OCI $ 4.6 $ 64.6 $ (84.7 ) |
Schedule of Allocation of Plan Assets | Employee Plan Asset Allocation: As of December 31, 2015 2014 Asset Category Equity securities 53 % 52 % Debt securities 40 % 40 % Real estate — % 2 % Other 7 % 6 % Total 100 % 100 % |
Fair Value Measurement of Employee Pension Plan | The following tables present the level within the fair value hierarchy at which the financial assets of the Employee Plan are measured on a recurring basis at December 31, 2015 and 2014 . Fair Value of Assets by Type and Level: As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total Mercer Group Trust $ — $ 440.9 $ — $ 440.9 Virtus Real Estate Securities Trust — 14.7 — 14.7 Limited partnerships and real estate investments — — 33.3 33.3 Total assets at fair value [1] $ — $ 455.6 $ 33.3 $ 488.9 ——————— [1] Excludes $4.5 million in other assets. Fair Value of Assets by Type and Level: As of December 31, 2014 ($ in millions) Level 1 Level 2 Level 3 Total Mercer Group Trust $ — $ 464.0 $ — $ 464.0 Virtus Real Estate Securities Trust — 14.3 — 14.3 Limited partnerships and real estate investments — — 57.6 57.6 Total assets at fair value [1] $ — $ 478.3 $ 57.6 $ 535.9 ——————— [1] Excludes $4.5 million in other assets. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Level 3 Financial Assets: For the years ended December 31, ($ in millions) 2015 2014 Balance, beginning of period $ 57.6 $ 55.3 Purchases 4.3 3.4 Sales (34.4 ) (4.2 ) Net appreciation on limited partnerships 5.8 3.1 Balance, end of period $ 33.3 $ 57.6 |
Schedule of Expected Benefit Payments | The following table sets forth amounts of benefits expected to be paid over the next ten years from the Company’s Employee Plan, Supplemental Plans and Other Post-Employment Benefit Plan as of December 31, 2015 : 10-Year Benefit Payout Projection: ($ in millions) Employee Plan Supplemental Plans Other Total 2016 $ 36.4 $ 9.5 $ 2.5 $ 48.4 2017 36.7 9.6 2.3 48.6 2018 37.2 9.6 2.2 49.0 2019 37.7 9.6 2.1 49.4 2020 38.3 9.4 2.0 49.7 2021 to 2025 204.0 46.9 8.1 259.0 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: For the years ended December 31, ($ in millions) 2015 2014 2013 Compensation cost charged to income from continuing operations $ 2.8 $ 3.0 $ 4.6 Income tax expense (benefit) before valuation allowance $ (1.0 ) $ (1.0 ) $ (1.6 ) |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the stock option activity as of and for the year ended December 31, 2015 is as follows: Summary of Stock Option Activity: For the years ended December 31, 2015 ($ in millions, except share data) Common Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, beginning of period 50,367 $ 187.38 2.52 $ 0.10 Granted — — — — Exercised — — — — Forfeited — — — — Canceled/expired (15,957 ) 202.94 — — Outstanding, end of period 34,410 $ 180.17 2.13 $ — Vested and exercisable, end of period 34,410 $ 180.17 2.13 $ — |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | . RSUs Awarded: For the years ended December 31, 2015 2014 2013 Number Weighted- Average Grant Date Fair Value Number Weighted- Average Grant Date Fair Value Number Weighted- Average Grant Date Fair Value Time-vested RSUs awarded 68,506 $ 24.00 13,063 $ 55.81 18,251 $ 33.76 RSU Values: For the years ended December 31, ($ in millions) 2015 2014 2013 Intrinsic value of RSUs converted $ 0.3 $ 0.2 $ 2.3 Total grant date fair value of RSUs vested converted to common shares $ 0.8 $ 0.2 $ 3.6 A summary of the RSU activity as of and for the year ended December 31, 2015 is as follows: Summary of RSU Activity: For the years ended Time-Vested Number Weighted- Average Grant Date Fair Value Outstanding, beginning of period 96,087 $ 49.25 Awarded 68,506 24.00 Adjustment for performance results — — Conversion of performance-contingent awards — — Converted to common shares (19,278 ) 41.93 Forfeited (5,137 ) 19.23 Outstanding, end of period 140,178 $ 39.01 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | 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: For the years ended December 31, (shares in thousands) 2015 2014 2013 Weighted-average common shares outstanding 5,751 5,748 5,735 Weighted-average effect of dilutive potential common shares: Restricted stock units 26 5 27 Employee stock options — 2 2 Potential common shares 26 7 29 Less: Potential common shares excluded from calculation due to net losses (26 ) (7 ) — Dilutive potential common shares — — 29 Weighted-average common shares outstanding, including dilutive potential common shares 5,751 5,748 5,764 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Segment Information on Revenues: For the years ended December 31, ($ in millions) 2015 2014 2013 Life and Annuity $ 1,664.1 $ 1,640.8 $ 1,689.6 Saybrus Partners [1] 43.3 37.5 26.8 Less: Intercompany revenues [2] 12.6 11.4 8.8 Total revenues $ 1,694.8 $ 1,666.9 $ 1,707.6 ——————— [1] Includes intercompany commission revenue of $12.6 million , $11.5 million and $9.2 million for the years ended December 31, 2015 , 2014 and 2013 . [2] All intercompany balances are eliminated in consolidating the financial statements. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Results of Operations by Segment as Reconciled to Consolidated Net Income (Loss): For the years ended December 31, ($ in millions) 2015 2014 2013 Life and Annuity operating income (loss) $ (134.8 ) $ (160.2 ) $ 19.0 Saybrus Partners operating income (loss) 8.3 6.2 3.1 Less: Applicable income tax expense (benefit) (34.3 ) 10.5 8.5 Income (loss) from discontinued operations, net of income taxes (2.0 ) (3.5 ) (2.9 ) Net realized investment gains (losses) (32.8 ) (41.2 ) 16.0 Less: Net income (loss) attributable to noncontrolling interests 6.7 4.0 0.7 Net income (loss) $ (133.7 ) $ (213.2 ) $ 26.0 |
Statutory Financial Informati50
Statutory Financial Information and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulated Operations [Abstract] | |
Statutory Financial Data | The information below is taken from the annual statement filed with state regulatory authorities. Statutory Financial Data: [1] As of or for the years ended December 31, ($ in millions) 2015 2014 2013 Statutory capital, surplus and AVR Phoenix Life [2][4] $ 535.3 $ 752.2 $ 735.2 PHL Variable [5] 209.3 213.7 235.2 Other 27.3 37.5 37.5 Total statutory capital, surplus and AVR $ 771.9 Statutory net income (loss) Phoenix Life [3][4] $ (660.7 ) $ 132.5 $ (21.0 ) PHL Variable [5] (14.0 ) (41.1 ) (86.1 ) Other (0.2 ) (0.3 ) (1.0 ) Total statutory net income (loss) $ (674.9 ) $ 91.1 $ (108.1 ) ——————— [1] Amounts in statements filed with state regulatory authorities differ from audited financial statements. [2] Prior to July 1, 2015, the effective date of the de-stack, Phoenix Life’s capital and surplus included the capital and surplus of its subsidiaries. [3] Phoenix Life’s 2015 statutory net loss includes $687.9 million of realized losses relating to the de-stacking of Phoenix Life’s life subsidiaries. There was an offsetting unrealized capital gain for the same amount, resulting in no impact to capital and surplus. [4] Statutory capital, surplus and AVR reflected in the annual audited financial statements for Phoenix Life for the years ended December 31, 2014 and December 31, 2013 was $666.6 million and $713.2 million , and statutory net income (loss) for those same periods was $116.3 million and $(17.8) million . The primary difference between the annual statement filed and the audited financial statements in 2014 was the impact of the COI settlement, which due to the timing of the settlement in the second quarter of 2015 was not reflected in the annual statement filed with the state regulatory authorities but was recorded in the audited financial statements. [5] Statutory capital, surplus and AVR reflected in the annual audited financial statements for PHL Variable for the years ended December 31, 2014 and December 31, 2013 was $156.5 million and $259.9 million , and statutory net income (loss) for those same periods was $(88.3) million and $(65.4) million . The primary difference between the annual statement filed and the audited financial statements in 2014 was the impact of the COI settlement, which due to the timing of the settlement in the second quarter of 2015 was not reflected in the annual statement filed with the state regulatory authorities but was recorded in the audited financial statements |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment are included in other assets in our consolidated balance sheets. Cost and Carrying Value of Premises and Equipment: As of December 31, ($ in millions) 2015 2014 Cost Carrying Value Cost Carrying Value Real estate $ 100.5 $ 31.7 $ 99.8 $ 32.6 Equipment and software 76.1 11.5 73.8 12.2 Leasehold improvements 3.0 2.8 0.4 0.2 Premises and equipment cost and carrying value 179.6 $ 46.0 174.0 $ 45.0 Accumulated depreciation and amortization (133.6 ) (129.0 ) Premises and equipment $ 46.0 $ 45.0 |
Condensed Financial Informati52
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
A Summary of The Phoenix Companies, Inc. Financial Information | A summary of The Phoenix Companies, Inc. (parent company only) financial information is presented below. See Notes 8 and 15 to these consolidated financial statements for additional information regarding indebtedness and accrued pension and post-employment benefits, respectively. Parent Company Financial Position: As of December 31, ($ in millions) 2015 2014 Assets Available-for-sale debt securities, at fair value $ 1.9 $ 5.1 Affiliate securities 30.0 30.0 Short-term investments 34.9 49.9 Fair value investments 18.8 23.5 Cash and cash equivalents 27.0 11.2 Investments in subsidiaries 724.0 880.8 Advances to subsidiaries 10.0 — Other assets 30.1 30.7 Total assets $ 876.7 $ 1,031.2 Liabilities and Stockholders’ Equity Indebtedness (Note 8) $ 268.6 $ 268.6 Accrued pension and post-employment benefits (Note 15) 361.6 380.0 Due to subsidiaries 3.2 7.3 Capital contribution payable 23.1 — Other liabilities 59.0 48.7 Total liabilities 715.5 704.6 Total stockholders’ equity 161.2 326.6 Total liabilities and stockholders’ equity $ 876.7 $ 1,031.2 Parent Company Results of Operations: For the years ended December 31, ($ in millions) 2015 2014 2013 Revenues Equity in undistributed income (loss) of subsidiaries $ (71.3 ) $ (99.0 ) $ 44.1 Investment income 3.6 4.5 1.2 Net realized investment gains (losses) (1.0 ) 0.6 3.6 Total revenues (68.7 ) (93.9 ) 48.9 Interest expense 20.4 20.4 20.4 Other operating expenses 30.6 102.6 70.7 Total expenses 51.0 123.0 91.1 Income (loss) before income taxes (119.7 ) (216.9 ) (42.2 ) Income tax expense (benefit) 14.0 (3.7 ) (68.7 ) Income (loss) from continuing operations (133.7 ) (213.2 ) 26.5 Income (loss) from discontinued operations of subsidiaries — — (0.5 ) Net income (loss) (133.7 ) (213.2 ) 26.0 Less: Income (loss) attributable to noncontrolling interests — — — Net income (loss) $ (133.7 ) $ (213.2 ) $ 26.0 Parent Company Cash Flows: For the years ended December 31, ($ in millions) 2015 2014 2013 Operating Activities Interest income received $ 3.3 $ 3.7 $ 0.9 Interest paid (20.0 ) (20.0 ) (20.0 ) Taxes paid (3.6 ) — (2.2 ) Taxes received — — 3.5 Payments to/from subsidiaries (27.4 ) (113.4 ) 52.5 Other operating activities, net (13.8 ) (13.8 ) (14.9 ) Cash provided by (used for) operating activities (61.5 ) (143.5 ) 19.8 Purchases of available-for-sale debt securities — — (30.0 ) Purchases of short-term investments (144.6 ) (589.4 ) (579.5 ) Purchases of derivative instruments (0.9 ) — — Sales, repayments and maturities of available-for-sale debt securities 3.2 5.0 1.0 Sales, repayments and maturities of short-term investments 159.7 659.4 564.7 Subsidiary loan payments received — 3.3 3.0 Dividends received from subsidiaries 69.9 56.0 74.2 Capital contributions to subsidiaries (10.0 ) (15.0 ) (45.0 ) Cash provided by (used for) investing activities 77.3 119.3 (11.6 ) Cash provided by (used for) financing activities — — — Change in cash and cash equivalents 15.8 (24.2 ) 8.2 Cash and cash equivalents, beginning of period 11.2 35.4 27.2 Cash and cash equivalents, end of period $ 27.0 $ 11.2 $ 35.4 |
Supplemental Unaudited Quarte53
Supplemental Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Summarized Selected Quarterly Financial Data | The following tables reflect unaudited summarized quarterly financial results during the years ended December 31, 2015 and 2014 . Summarized Selected Quarterly Financial Data: Quarter ended 2015 ($ in millions, except per share amounts) Mar 31, June 30, Sept 30, Dec 31, Revenues $ 405.4 $ 422.0 $ 437.1 $ 430.3 Benefits and expenses $ 480.1 $ 456.8 $ 464.2 $ 453.0 Income tax expense (benefit) $ (2.2 ) $ (13.0 ) $ (17.0 ) $ (2.1 ) Income (loss) from continuing operations $ (72.5 ) $ (21.8 ) $ (10.1 ) $ (20.6 ) Income (loss) from discontinued operations $ (0.5 ) $ (0.6 ) $ (0.1 ) $ (0.8 ) Net income (loss) $ (73.0 ) $ (22.4 ) $ (10.2 ) $ (21.4 ) Less: Net (income) loss attributable to noncontrolling interests $ 1.0 $ 0.2 $ 5.5 $ — Net income (loss) attributable to The Phoenix Companies, Inc. $ (74.0 ) $ (22.6 ) $ (15.7 ) $ (21.4 ) Net income (loss) attributable to The Phoenix Companies, Inc. per share: Basic $ (12.87 ) $ (3.93 ) $ (2.73 ) $ (3.72 ) Diluted $ (12.87 ) $ (3.93 ) $ (2.73 ) $ (3.72 ) Summarized Selected Quarterly Financial Data: Quarter ended 2014 ($ in millions, except per share amounts) Mar 31, June 30, Sept 30, Dec 31, Revenues $ 399.0 $ 413.1 $ 414.4 $ 440.4 Benefits and expenses $ 431.4 $ 454.5 $ 434.0 $ 542.2 Income tax expense (benefit) $ (4.8 ) $ (19.6 ) $ 2.6 $ 32.3 Income (loss) from continuing operations $ (27.6 ) $ (21.8 ) $ (22.2 ) $ (134.1 ) Income (loss) from discontinued operations $ (0.6 ) $ (0.6 ) $ (0.3 ) $ (2.0 ) Net income (loss) $ (28.2 ) $ (22.4 ) $ (22.5 ) $ (136.1 ) Less: Net income (loss) attributable to noncontrolling interests $ (0.1 ) $ — $ (0.1 ) $ 4.2 Net income (loss) attributable to The Phoenix Companies, Inc. $ (28.1 ) $ (22.4 ) $ (22.4 ) $ (140.3 ) Net income (loss) attributable to The Phoenix Companies, Inc. per share: Basic $ (4.89 ) $ (3.90 ) $ (3.90 ) $ (24.40 ) Diluted $ (4.89 ) $ (3.90 ) $ (3.90 ) $ (24.40 ) |
Organization and Description 54
Organization and Description of Business Narrative (Details) $ / shares in Units, $ in Millions | Sep. 29, 2015USD ($)$ / shares | Dec. 31, 2015segment |
Business Acquisition [Line Items] | ||
Number of business segments (segment) | segment | 2 | |
Nassau Reinsurance Group Holdings L.P. | ||
Business Acquisition [Line Items] | ||
Business acquisition, share price (USD per share) | $ / shares | $ 37.50 | |
Payments to acquire company | $ 217.2 | |
Proceeds from acquiring entity | $ 100 |
Basis of Presentation and Sig55
Basis of Presentation and Significant Accounting Policies - Holding Company Liquidity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||||
Anticipated dividends paid in next fiscal year | $ 37.2 | ||||
Interest paid | 27.9 | $ 27.9 | $ 27.9 | ||
Indebtedness | 378.9 | 378.9 | |||
Capital contributions | 33.1 | 15 | |||
7.45% senior unsecured bonds, due 2032 | Corporate | |||||
Statutory Accounting Practices [Line Items] | |||||
Interest paid | 20 | 20 | 20 | ||
Indebtedness | 268.6 | ||||
Parent Company | |||||
Statutory Accounting Practices [Line Items] | |||||
Liquid assets | 65.8 | 78.3 | |||
Interest paid | 20 | 20 | 20 | ||
Indebtedness | 268.6 | 268.6 | |||
Amount of funds in intercompany tax escrow | 76.2 | $ 76.2 | |||
Increase in restricted cash | 23.8 | $ 23.8 | |||
Operating expenses | 30.6 | $ 102.6 | $ 70.7 | ||
Phoenix Life Insurance Company | |||||
Statutory Accounting Practices [Line Items] | |||||
Dividends | $ 30 | $ 59.9 | |||
Risk-based capital threshold | 400.00% | 400.00% | |||
PHL Variable Insurance Company | |||||
Statutory Accounting Practices [Line Items] | |||||
Risk-based capital threshold | 200.00% | 175.00% | |||
Statutory accounting practices, authorized control level | 400.00% | ||||
Statutory accounting practices, risk based capital requirement, actual percent | 200.00% | 218.00% | |||
Statutory capital surplus, guaranteed risk based capital, percent | 250.00% | ||||
Statutory capital surplus, guaranteed risk based capital, company action level, percent | 125.00% | ||||
PHL Variable Insurance Company | Minimum | |||||
Statutory Accounting Practices [Line Items] | |||||
Risk-based capital threshold | 200.00% |
Basis of Presentation and Sig56
Basis of Presentation and Significant Accounting Policies Schedule of Insurance Contract Assumptions Used (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Term over which short-term deviations from long-term expectations are expected to revert to the long-term assumption | 5 years |
Mortality assumptions, rolling term | 5 years |
Variable Annuity | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Long-term return assumption | 7.70% |
Variable Universal Life | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |
Long-term return assumption | 7.90% |
Basis of Presentation and Sig57
Basis of Presentation and Significant Accounting Policies Premises and equipment Narrative (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 39 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 7 years |
Basis of Presentation and Sig58
Basis of Presentation and Significant Accounting Policies Policy liabilities and accruals Narrative (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Contractual guaranteed interest rate | 2.30% | 6.00% |
Percentage of Participating insurance represent direct individual life insurance | 20.30% | 20.70% |
Minimum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Universal life-type contract interest rate credited | 3.00% | |
Maximum | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Universal life-type contract interest rate credited | 4.50% |
Basis of Presentation and Sig59
Basis of Presentation and Significant Accounting Policies Audit Fees and Other Professional Fees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||
Professional fees associated with restatement | $ 44 | $ 62.9 |
Reinsurance Narrative (Details)
Reinsurance Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)reinsurance_company | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2014USD ($) | |
Reinsurance Retention Policy [Line Items] | ||||
Trust agreements and irrevocable letters of credit | $ 46,700,000 | |||
Irrevocable letters of credit related to discontinued group accident and health reinsurance operations | 4,400,000 | |||
Reinsurance recoverable | $ 590,700,000 | $ 559,100,000 | ||
Reinsurance Recoverable | ||||
Reinsurance Retention Policy [Line Items] | ||||
Number of major reinsurance companies (reinsurance company) | reinsurance_company | 5 | |||
Credit concentration risk | 68.00% | |||
Single Life Policy And Joint First-To-Die | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance retention policy, amount retained | $ 5,000,000 | $ 10,000,000 | ||
Joint Last-To-Die Policy | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance retention policy, amount retained | $ 6,000,000 | $ 12,000,000 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | |||
Direct premiums | $ 454.1 | $ 473.2 | $ 501.8 |
Premiums assumed | 8.7 | 9.7 | 11.8 |
Premiums ceded | (113.7) | (150.8) | (162) |
Premiums | $ 349.1 | $ 332.1 | $ 351.6 |
Percentage of amount assumed to net premiums | 2.50% | 2.90% | 3.40% |
Direct policy benefits incurred | $ 1,020.8 | $ 785.3 | $ 819.1 |
Policy benefits assumed | 41.9 | 42.5 | 22.7 |
Policy benefits ceded | (235.1) | (241.9) | (265.4) |
Premiums paid | 97.3 | 95.8 | 83.1 |
Policy benefits | 924.9 | 681.7 | 659.5 |
Direct life insurance in force | 91,469.3 | 95,811.4 | 102,405.6 |
Life insurance in force assumed | 1,771.1 | 1,721 | 1,678.2 |
Life insurance in force ceded | (51,064.8) | (58,022.4) | (62,553.8) |
Life insurance in force | $ 42,175.6 | $ 39,510 | $ 41,530 |
Percentage of amount assumed to net insurance in force | 4.20% | 4.40% | 4.00% |
Policyholder benefits and claims incurred, life and annuity, changes in reserves, interest credited, and other adjustments | $ 261.7 | $ 437.5 | $ 305.6 |
Demutualization and Closed Bl62
Demutualization and Closed Block Schedule of Closed Block Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 25, 2011 |
Closed Block Assets And Liabilities | ||||
Available-for-sale debt securities | $ 5,285.4 | $ 5,877 | $ 4,773.1 | |
Available-for-sale equity securities | 90.1 | 91.7 | 0 | |
Short-term investments | 25 | 0 | 0 | |
Limited partnerships and other investments | 352.7 | 343.4 | 399 | |
Policy loans | 1,121 | 1,159.1 | 1,380 | |
Fair value investments | 53.1 | 59.8 | 0 | |
Total closed block investments | 6,927.3 | 7,531 | 6,552.1 | |
Cash and cash equivalents | 290.8 | 89.6 | 0 | |
Accrued investment income | 75.5 | 80.7 | 106.8 | |
Reinsurance recoverable | 30 | 19.1 | 0 | |
Deferred income taxes, net | 278.7 | 290.3 | 389.4 | |
Other closed block assets | 53.7 | 67.4 | 41.4 | |
Total closed block assets | 7,656 | 8,078.1 | 7,089.7 | |
Policy liabilities and accruals | 7,816.5 | 8,058.2 | 8,301.7 | |
Policyholder dividends payable | 191.1 | 201.9 | $ 207.8 | 325.1 |
Policy dividend obligation | 525.5 | 714.8 | $ 497.7 | 0 |
Other closed block liabilities | 46.6 | 48 | 12.3 | |
Total closed block liabilities | 8,579.7 | 9,022.9 | 8,639.1 | |
Excess of closed block liabilities over closed block assets | 923.7 | 944.8 | $ 1,549.4 | |
Less: Excess of closed block assets over closed block liabilities attributable to noncontrolling interests | (8.1) | (11.8) | ||
Excess of closed block liabilities over closed block assets attributable to The Phoenix Companies, Inc. | $ 931.8 | $ 956.6 |
Demutualization and Closed Bl63
Demutualization and Closed Block Schedule of Closed Block Revenues and Expenses and Changes in Policyholder Dividend Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Closed block revenues | ||||
Premiums | $ 309.2 | $ 301.8 | $ 317.8 | |
Net investment income | 395 | 411.1 | 409.6 | |
Net realized gains (losses) | 1 | 12.8 | 16.6 | |
Total revenues | 705.2 | 725.7 | 744 | |
Policy benefits | 447.3 | 438.4 | 464.5 | |
Other operating expenses | 3.7 | 2.7 | 5.3 | |
Total benefits and expenses | 451 | 441.1 | 469.8 | |
Closed block contribution to income before dividends and income taxes | 254.2 | 284.6 | 274.2 | |
Policyholder dividends | (212.2) | (244.6) | (235.7) | |
Closed block contribution to income before income taxes | 42 | 40 | 38.5 | |
Applicable income tax expense | 13.5 | 13.3 | 13.4 | |
Closed block contribution to income attributable to The Phoenix Companies, Inc. | 28.5 | 26.7 | 25.1 | |
Less: Closed block contribution to income attributable to noncontrolling interests | 3.5 | 2 | 0.3 | |
Closed block contribution to income attributable to The Phoenix Companies, Inc. | 25 | 24.7 | 24.8 | |
Policyholder dividend obligation | ||||
Policyholder dividends recorded through earnings | 212.2 | 244.6 | 235.7 | |
Applicable to closed block policyholder dividend obligation | (241.4) | 138.8 | (308.4) | |
Additions to (reductions of) policyholder dividend liabilities | (29.2) | 383.4 | (72.7) | |
Policyholder dividends paid | (170.9) | (172.2) | (178.6) | |
Increase (decrease) in policyholder dividend liabilities | (200.1) | 211.2 | (251.3) | |
Policyholder dividend liabilities | 716.6 | 916.7 | 705.5 | $ 956.8 |
Policyholder dividends payable, end of period | (191.1) | (201.9) | (207.8) | |
Policyholder dividend obligation, end of period | $ 525.5 | $ 714.8 | $ 497.7 |
Demutualization and Closed Bl64
Demutualization and Closed Block Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Insurance [Abstract] | ||
Closed block dividend obligation cumulative closed block earnings excess of expected amount | $ 329.3 | $ 277.9 |
Closed block dividend obligation unrealized gains | $ 196.2 | $ 436.9 |
Deferred Policy Acquisition C65
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Policy Acquisition Costs: | |||
Balance, beginning of period | $ 848.6 | $ 947.8 | $ 898.1 |
Policy acquisition costs deferred | 87.4 | 72.9 | 58.4 |
Costs amortized to expenses: | |||
Recurring costs | (86.6) | (129.5) | (117.9) |
Assumption unlocking | 9.7 | (4.4) | 25.4 |
Realized investment gains (losses) | (0.9) | 14.3 | (10.6) |
Offsets to net unrealized investment gains or losses included in AOCI | 82.9 | (52.5) | 94.4 |
Balance, end of period | $ 941.1 | $ 848.6 | $ 947.8 |
Sales Inducements (Details)
Sales Inducements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Balance, beginning of period | $ 79.4 | $ 77.4 | $ 63.9 |
Sales inducements deferred | 13.4 | 17.5 | 10.6 |
Amortization charged to income | (9.6) | (8) | (8.5) |
Offsets to net unrealized investment gains or losses included in AOCI | 7.9 | (7.5) | 11.4 |
Balance, end of period | $ 91.1 | $ 79.4 | $ 77.4 |
Investing Activities Schedule o
Investing Activities Schedule of Fair Value and Cost of Securities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 25, 2011 |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 11,993.6 | $ 11,978 | |
Gross unrealized gains | 498.5 | 799.9 | |
Gross unrealized losses | (301.4) | (98.6) | |
Available for sale securities, fair value | 12,190.7 | 12,679.3 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | (37.9) | (51.8) | |
Amortized Cost - amounts applicable to the closed block | 5,102.1 | 5,451.3 | |
Gross unrealized gains - amounts applicable to the closed block | 293.4 | 458.1 | |
Gross unrealized losses - amounts applicable to the closed block | (110.1) | (32.4) | |
Available-for-sale debt securities | 5,285.4 | 5,877 | $ 4,773.1 |
OTTI recognized in AOCI - amounts applicable to the closed block | (8.8) | (14.7) | |
Amortized cost - available-for-sale equity securities | 154.6 | 156 | |
Gross unrealized gains - available-for-sale equity securities | 28.5 | 25.1 | |
Gross unrealized losses - available-for-sale equity securities | (1.1) | (1.6) | |
Available-for-sale equity securities, at fair value | 182 | 179.5 | |
Amortized cost - amounts applicable to the closed block | 77.2 | 80.5 | |
Gross unrealized gains - amounts applicable to the closed block | 13.6 | 12.3 | |
Gross unrealized losses - amounts applicable to the closed block | (0.7) | (1.1) | |
Fair value - amounts applicable to the closed block | 90.1 | 91.7 | |
U.S. government and agency | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 542 | 388.3 | |
Gross unrealized gains | 48.2 | 55.2 | |
Gross unrealized losses | (0.6) | (0.1) | |
Available for sale securities, fair value | 589.6 | 443.4 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | 0 | 0 | |
State and political subdivision | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 510.4 | 518.3 | |
Gross unrealized gains | 33.7 | 42.1 | |
Gross unrealized losses | (6.7) | (2.5) | |
Available for sale securities, fair value | 537.4 | 557.9 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | (1.1) | (1.1) | |
Foreign government | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 224 | 205.8 | |
Gross unrealized gains | 20.8 | 26.5 | |
Gross unrealized losses | (1.9) | (1.4) | |
Available for sale securities, fair value | 242.9 | 230.9 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | 0 | 0 | |
Corporate | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 8,295 | 7,942.7 | |
Gross unrealized gains | 311.3 | 530 | |
Gross unrealized losses | (264.1) | (74.6) | |
Available for sale securities, fair value | 8,342.2 | 8,398.1 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | (6.3) | (8.3) | |
Commercial mortgage-backed (“CMBS”) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 656.6 | 602.9 | |
Gross unrealized gains | 30.4 | 48.4 | |
Gross unrealized losses | (2.9) | (0.1) | |
Available for sale securities, fair value | 684.1 | 651.2 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | 0 | (1.2) | |
Residential mortgage-backed (“RMBS”) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,213.8 | 1,862.5 | |
Gross unrealized gains | 45.1 | 81.6 | |
Gross unrealized losses | (12.7) | (11.9) | |
Available for sale securities, fair value | 1,246.2 | 1,932.2 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | (25.4) | (25.5) | |
Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 316.3 | 197.5 | |
Gross unrealized gains | 1.3 | 2.7 | |
Gross unrealized losses | (8.1) | (3.3) | |
Available for sale securities, fair value | 309.5 | 196.9 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | (4.5) | (13.9) | |
Other asset-backed (“ABS”) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 235.5 | 260 | |
Gross unrealized gains | 7.7 | 13.4 | |
Gross unrealized losses | (4.4) | (4.7) | |
Available for sale securities, fair value | 238.8 | 268.7 | |
Available-for-sale debt securities, other than temporary impairment, included in AOCI | $ (0.6) | $ (1.8) |
Investing Activities Schedule68
Investing Activities Schedule of Maturities of Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | $ 464.3 | |
Due after one year through five years | 1,868.9 | |
Due after five years through ten years | 3,603.2 | |
Due after ten years | 3,635 | |
CMBS/RMBS/ABS/CDO/CLO | 2,422.2 | |
Amortized Cost | 11,993.6 | $ 11,978 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | 470.3 | |
Due after one year through five years | 1,932.2 | |
Due after five years through ten years | 3,563 | |
Due after ten years | 3,746.6 | |
CMBS/RMBS/ABS/CDO/CLO | 2,478.6 | |
Total | $ 12,190.7 | $ 12,679.3 |
Investing Activities Schedule69
Investing Activities Schedule of Sales of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales | $ 1,021.4 | $ 446.1 | $ 532.2 |
Proceeds from maturities/repayments | 1,183.3 | 1,225.3 | 1,544 |
Gross investment gains from sales, prepayments and maturities | 42.5 | 41.6 | 45.1 |
Gross investment losses from sales and maturities | (4.7) | (17.6) | (2.2) |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales | 16.8 | 24.2 | 12.7 |
Gross investment gains from sales, prepayments and maturities | 1.7 | 10.4 | 4.2 |
Gross investment losses from sales and maturities | $ 0 | $ (1) | $ (3.8) |
Investing Activities Schedule70
Investing Activities Schedule of Aging of Temporary Impaired Securities (Details) $ in Millions | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 3,181.4 | $ 768.6 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (152.3) | (27) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 849.6 | 1,053.2 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (150.2) | (73.2) |
Available-for-sale securities, continuous unrealized loss position, fair value | 4,031 | 1,821.8 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (302.5) | (100.2) |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, less than twelve months, fair value | 963.9 | 266.8 |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, less than twelve months, accumulated loss | (54.1) | (11.7) |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, twelve months or longer, fair value | 321.6 | 387.8 |
Available-for-sale securities, continuous unrealized loss position, amounts inside closed block, twelve months or longer, accumulated loss | (56.7) | (21.8) |
Available-for-sale securities, continuous unrealized loss position, amount inside closed block, fair value, total | 1,285.5 | 654.6 |
Available-for-sale securities, amounts inside closed block, continuous unrealized loss position, accumulated loss, total | (110.8) | (33.5) |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, less than twelve months, fair value | 2,217.5 | 501.8 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, less than twelve months, accumulated loss | (98.2) | (15.3) |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, twelve months or longer, fair value | 528 | 665.4 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, twelve months or longer, accumulated loss | (93.5) | (51.4) |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, fair value, total | 2,745.5 | 1,167.2 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, accumulated loss, total | (191.7) | (66.7) |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, less than twelve months, fair value | 120.5 | 84.2 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, less than twelve months, accumulated loss | (14.6) | (4.1) |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, twelve months or longer, fair value | 77.3 | 50.4 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, twelve months or longer, accumulated loss | (21.8) | (6.6) |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, fair value, total | 197.8 | 134.6 |
Available-for-sale securities, continuous unrealized loss position, amounts outside closed block, below investment grade, continuous unrealized loss position, accumulated loss, total | $ (36.4) | $ (10.7) |
Available-for-sale securities, continuous unrealized loss position, less than twelve months, number of securities | security | 627 | 158 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities (security) | security | 178 | 211 |
Number of securities (securities) | security | 805 | 369 |
U.S. government and agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 73.8 | $ 0 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (0.6) | 0 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 0.9 | 2.7 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | (0.1) |
Available-for-sale securities, continuous unrealized loss position, fair value | 74.7 | 2.7 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (0.6) | (0.1) |
State and political subdivision | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 62.1 | 11.6 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (4.1) | (0.6) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 36.5 | 31.1 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (2.6) | (1.9) |
Available-for-sale securities, continuous unrealized loss position, fair value | 98.6 | 42.7 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (6.7) | (2.5) |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 26 | 15.7 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (1.9) | (1.4) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | 0 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | 0 |
Available-for-sale securities, continuous unrealized loss position, fair value | 26 | 15.7 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (1.9) | (1.4) |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 2,499.3 | 643 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (135.5) | (23.5) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 545.2 | 654.3 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (128.6) | (51.1) |
Available-for-sale securities, continuous unrealized loss position, fair value | 3,044.5 | 1,297.3 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (264.1) | (74.6) |
Commercial mortgage-backed (“CMBS”) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 131.7 | 12.6 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (2.9) | 0 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 2.3 | 10.9 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | (0.1) |
Available-for-sale securities, continuous unrealized loss position, fair value | 134 | 23.5 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (2.9) | (0.1) |
Residential mortgage-backed (“RMBS”) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 138 | 8.4 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (1.6) | (0.2) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 174.2 | 226.7 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (11.1) | (11.7) |
Available-for-sale securities, continuous unrealized loss position, fair value | 312.2 | 235.1 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (12.7) | (11.9) |
Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 207.4 | 57.9 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (4.4) | (0.5) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 80.7 | 96.3 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (3.7) | (2.8) |
Available-for-sale securities, continuous unrealized loss position, fair value | 288.1 | 154.2 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (8.1) | (3.3) |
Other asset-backed (“ABS”) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 39 | 13.8 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (0.2) | (0.1) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 7.2 | 16 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (4.2) | (4.6) |
Available-for-sale securities, continuous unrealized loss position, fair value | 46.2 | 29.8 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | (4.4) | (4.7) |
Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 3,177.3 | 763 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (151.2) | (26.3) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 847 | 1,038 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | (150.2) | (72.3) |
Available-for-sale securities, continuous unrealized loss position, fair value | 4,024.3 | 1,801 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ (301.4) | $ (98.6) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities (security) | security | 172 | 201 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 4.1 | $ 5.6 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | (1.1) | (0.7) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 2.6 | 15.2 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | (0.9) |
Available-for-sale securities, continuous unrealized loss position, fair value | 6.7 | 20.8 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ (1.1) | $ (1.6) |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities (security) | security | 6 | 10 |
Investing Activities Debt & Equ
Investing Activities Debt & Equity Securities Narrative (Details) $ in Millions | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
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 | $ 85.1 | $ 3.2 |
Unrealized losses on debt securities held in closed block depressed of amortized cost, amount | 48.4 | 1.7 |
Unrealized losses on debt securities outside closed block depressed of amortized cost for more than 12 month, amount | 30.4 | 2.1 |
Unrealized losses on below-investment-grade debt securities depressed of amortized cost for more than 12 month, amount | $ 1.7 | $ 0.1 |
Unrealized losses on debt securities outside closed block depressed of amortized cost for more than 12 month, percentage | 20.00% | 20.00% |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities (security) | security | 178 | 211 |
Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities (security) | security | 172 | 201 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, number of securities (security) | security | 6 | 10 |
Investing Activities Other-than
Investing Activities Other-than-temporary impairments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Impairment losses | $ 22.8 | $ 8.1 | $ 11.8 |
Investing Activities Schedule73
Investing Activities Schedule of Credit Losses Recognized in Earnings on Debt Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning of period | $ (52.4) | $ (71.4) | $ (72.6) |
Add: Credit losses on securities not previously impaired | (3.4) | 0 | (1.1) |
Add: Credit losses on securities previously impaired | (2.3) | 0 | (4.1) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status | 0 | 0 | 0 |
Less: Credit losses on securities sold | 12.5 | 19 | 6.4 |
Less: Increases in cash flows expected on previously impaired securities | 0 | 0 | 0 |
Balance, end of period | $ (45.6) | $ (52.4) | $ (71.4) |
Investing Activities Schedule74
Investing Activities Schedule of Limited Partnerships and Other Investments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 44.9 | $ 49.6 | $ 44.5 |
Leveraged leases | 4.7 | 11.8 | |
Life settlements | 0 | 22.4 | |
Other alternative assets | 2.2 | 2.2 | |
Limited partnerships and other investments | 518.7 | 542.8 | |
Amounts applicable to the closed block | 352.7 | 343.4 | |
Private equity funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 257 | 241.1 | |
Mezzanine funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 159.6 | 162.4 | |
Infrastructure funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 35.8 | 38.9 | |
Hedge funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 9.9 | 10.7 | |
Mortgage and real estate funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 4.6 | 3.7 | |
Direct equity investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 44.9 | $ 49.6 |
Investing Activities Schedule75
Investing Activities Schedule of Aggregated Summarized Balance Sheet Information of Equity Method Investees (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total assets | $ 21,091.9 | $ 21,745.9 |
Total liabilities | 20,918.1 | 21,399.3 |
Equity Method Investee | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total assets | 53,961 | 58,694.1 |
Total liabilities | $ 2,165.3 | $ 1,630.2 |
Investing Activities Schedule76
Investing Activities Schedule of Aggregated Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||||||||||
Total investment revenues | $ 430.3 | $ 437.1 | $ 422 | $ 405.4 | $ 440.4 | $ 414.4 | $ 413.1 | $ 399 | $ 1,694.8 | $ 1,666.9 | $ 1,707.6 |
Equity Method Investee | |||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||
Total investment revenues | 2,386.2 | 2,329.9 | 2,759.7 | ||||||||
Net income | $ 5,391.6 | $ 5,869.2 | $ 9,297.3 |
Investing Activities Schedule77
Investing Activities Schedule of Investment Leveraged Leases (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Rental receivables, net | $ 2.1 | $ 4.9 |
Estimated residual values | 3 | 7.3 |
Unearned income | (0.4) | (0.4) |
Investment in leveraged leases | $ 4.7 | $ 11.8 |
Investing Activities Leveraged
Investing Activities Leveraged leases Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Deferred income tax liability related to leveraged leases | $ 6.2 | $ 9.5 |
Investing Activities Direct equ
Investing Activities Direct equity investments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Income received from other direct equity investments | $ (4) | $ 7.8 | $ 7 |
Investing Activities Schedule80
Investing Activities Schedule of Carrying value and change in investment balance of non-consolidated direct equity investments(Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Change In Equity Method Investments [Roll Forward] | ||
Beginning balance | $ 49.6 | $ 44.5 |
Net contributions (distributions) | (0.7) | (2.7) |
Net income (loss) | (4) | 7.8 |
Ending balance | $ 44.9 | $ 49.6 |
Investing Activities Life settl
Investing Activities Life settlements Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Income (losses) recognized on life settlement contracts | $ 0 | $ 0 | $ 0.7 |
Life settlement contracts, gain (loss) on change in classification | 4.9 | ||
Proceeds received from sale of life settlement contracts | 11.4 | ||
Gain (loss) on sale of life settlement contracts | 7.1 | ||
Impairment charges on life settlement contracts | $ 0 | $ 0 | $ 0 |
Investing Activities Statutory
Investing Activities Statutory deposits Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Deposit securities fair value | $ 29.1 | $ 30.5 |
Investing Activities Schedule83
Investing Activities Schedule of Sources of Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Investment Income [Line Items] | |||
Investment income | $ 861.1 | $ 848.9 | $ 804.6 |
Less: Discontinued operations | 1.4 | 1.1 | 1.3 |
Less: Investment expenses | 24.8 | 16.9 | 13.6 |
Net investment income | 834.9 | 830.9 | 789.7 |
Amounts applicable to the closed block | 395 | 411.1 | 409.6 |
Debt securities | |||
Net Investment Income [Line Items] | |||
Investment income | 595.1 | 581.6 | 565 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Investment income | 6.9 | 9.2 | 7.2 |
Limited partnerships and other investments | |||
Net Investment Income [Line Items] | |||
Investment income | 58.1 | 65.3 | 58.3 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Investment income | 170.7 | 167.4 | 160 |
Fair value investments | |||
Net Investment Income [Line Items] | |||
Investment income | $ 30.3 | $ 25.4 | $ 14.1 |
Investing Activities Schedule84
Investing Activities Schedule of Sources and Types of Net Realized Investment Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | |||
Total other-than-temporary debt impairments | $ (12) | $ (5.6) | $ (7) |
Portion of losses recognized in OCI | (2) | (0.4) | (4.8) |
Net debt impairments recognized in earnings | (14) | (6) | (11.8) |
Impairment losses | (22.8) | (8.1) | (11.8) |
Limited partnerships and other investment transaction gains | 0 | 0 | 0.8 |
Limited partnerships and other investment transaction losses | (7.1) | (0.7) | (4.6) |
Net transaction gains (losses) | 32.1 | 32.8 | 39.7 |
Derivative instruments | (31.1) | (20.8) | (27.7) |
Embedded derivatives | (3.1) | (45.9) | 12.2 |
Assets valued at fair value | (7.9) | 0.8 | 3.6 |
Net realized gains (losses), excluding impairment losses | (10) | (33.1) | 27.8 |
Net realized gains (losses) | (32.8) | (41.2) | 16 |
U.S. government and agency | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | 0 | 0 | 0 |
State and political subdivision | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | 0 | 0 | 0 |
Foreign government | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | 0 | 0 | 0 |
Corporate | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | (13.8) | (6) | (3.8) |
Commercial mortgage-backed (“CMBS”) | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | 0 | 0 | (2.7) |
Residential mortgage-backed (“RMBS”) | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | (0.2) | 0 | (4.3) |
Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | 0 | 0 | (1) |
Other asset-backed (“ABS”) | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | 0 | 0 | 0 |
Debt securities | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | (14) | (6) | (11.8) |
Debt and equity transaction gains | 42.5 | 41.8 | 45.3 |
Debt and equity transaction losses | (5) | (17.7) | (2.2) |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Net debt impairments recognized in earnings | (8.8) | (2.1) | 0 |
Debt and equity transaction gains | 1.7 | 10.4 | 4.2 |
Debt and equity transaction losses | 0 | (1) | (3.8) |
Limited partnerships and other investments | |||
Gain (Loss) on Investments [Line Items] | |||
Limited partnerships and other investment impairments | $ 0 | $ 0 | $ 0 |
Investing Activities Schedule85
Investing Activities Schedule of Sources of Changes in Net Unrealized Investment Gains (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Other investments | $ (2.3) | $ (4.1) | $ 0.6 |
Net unrealized investment gains (losses) | (502.6) | 312 | (534.8) |
Applicable to closed block policyholder dividend obligation | (241.4) | 138.8 | (308.4) |
Applicable to DAC | (82.9) | 52.5 | (94.4) |
Applicable to other actuarial offsets | (70.6) | 54.2 | (69.3) |
Applicable to deferred income tax expense (benefit) | (71.3) | 35.7 | (20.5) |
Offsets to net unrealized investment gains (losses) | (466.2) | 281.2 | (492.6) |
Net unrealized gains (losses) included in OCI | (36.4) | 30.8 | (42.2) |
Total available-for-sale debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, gross unrealized gain (loss) | (504.2) | 311.3 | (538.1) |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, gross unrealized gain (loss) | $ 3.9 | $ 4.8 | $ 2.7 |
Investing Activities Schedule86
Investing Activities Schedule of Carrying Value of Assets and Liabilities for Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | $ 93.9 | $ 101.1 |
Maximum exposure loss | 145.4 | 203.3 |
Total liabilities of consolidated VIEs | 1.1 | 0.6 |
Unfunded commitments related to VIEs | 6.5 | 11.9 |
Debt securities | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 14.7 | 5.5 |
Maximum exposure loss | 10.4 | 5.1 |
Equity securities | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 63 | 35 |
Maximum exposure loss | 56.9 | 30 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 6.9 | 9.4 |
Maximum exposure loss | 6.7 | 9.3 |
Partnership Interest | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 0 | 0 |
Maximum exposure loss | 0 | 0 |
Single Asset LLC | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 3.9 | 50.6 |
Maximum exposure loss | 2.8 | 36.6 |
Other | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 5.4 | 0.6 |
Maximum exposure loss | 4.3 | 0.5 |
Assets | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure loss | 81.1 | 81.5 |
Liabilities | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure loss | $ 0 | $ 0.5 |
Investing Activities Schedule87
Investing Activities Schedule of Carrying Value of Assets and Liabilities and Maximum Exposure Loss Relating to Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Assets | $ 97.2 | $ 151.5 |
Liabilities | 0 | 0 |
Maximum exposure loss | 145.4 | 203.3 |
Limited partnerships | ||
Variable Interest Entity [Line Items] | ||
Assets | 83.8 | 106 |
Liabilities | 0 | 0 |
Maximum exposure loss | 132 | 157.8 |
LLCs | ||
Variable Interest Entity [Line Items] | ||
Assets | 13.4 | 45.5 |
Liabilities | 0 | 0 |
Maximum exposure loss | $ 13.4 | $ 45.5 |
Investing Activities Issuer and
Investing Activities Issuer and counterparty credit exposure Narrative (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)issuercounterparty | Dec. 31, 2014USD ($) | |
Credit Derivatives [Line Items] | ||
Available-for-sale debt securities, at fair value (cost of $11,993.6 and $11,978.0) | $ 12,190,700,000 | $ 12,679,300,000 |
Credit Concentration Risk | ||
Credit Derivatives [Line Items] | ||
Number of issuers (in issuers) | issuer | 127 | |
Derivative assets, net of liabilities | $ 54,200,000 | |
Number of counterparties (counterparties) | counterparty | 10 | |
Debt securities, fair value | $ 203,800,000 | |
Maximum amount of loss due to credit risk | 258,000,000 | |
External Credit Rating, Non Investment Grade | ||
Credit Derivatives [Line Items] | ||
Available-for-sale debt securities, at fair value (cost of $11,993.6 and $11,978.0) | $ 798,200,000 | $ 848,800,000 |
Financing Activities Schedule o
Financing Activities Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Indebtedness | $ 378.9 | $ 378.9 |
7.15% surplus notes, due 2034 | Surplus Note | ||
Debt Instrument [Line Items] | ||
Indebtedness | 126.2 | 126.2 |
7.45% senior unsecured bonds, due 2032 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 252.7 | $ 252.7 |
Financing Activities Narrative
Financing Activities Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2001 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Interest expense on indebtedness | $ 28.3 | $ 28.3 | $ 28.3 | |
7.15% surplus notes, due 2034 | Surplus Note | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 7.15% | |||
7.45% senior unsecured bonds, due 2032 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 7.45% | |||
Period to file reports with trustee | 15 days |
Common Stock and Stock Repurc91
Common Stock and Stock Repurchase Program (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||
Shares authorized for issuance (in shares) | 50,000,000 | ||
Common stock, shares, issued (shares) | 6,400,000 | ||
Shares held in Rabbi Trust (in shares) | 100,000 | ||
Stockholder dividends paid | $ 0 | $ 0 | $ 0 |
State Farm | |||
Class of Stock [Line Items] | |||
Sales commissions and fees | $ 3,000,000 | $ 2,700,000 | $ 2,600,000 |
Policyholders | |||
Class of Stock [Line Items] | |||
Common stock, shares, issued (shares) | 2,800,000 | ||
Public and Share Based Compensation | |||
Class of Stock [Line Items] | |||
Common stock, shares, issued (shares) | 3,600,000 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 25,000,000 | ||
Employee Stock Option | |||
Class of Stock [Line Items] | |||
Shares reserved for future issuance (shares) | 300,000 | ||
Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Shares reserved for future issuance (shares) | 100,000 |
Separate Accounts Death Benefit
Separate Accounts Death Benefits, Other Insurance Benefit Features and Embedded Product Derivatives Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Assets supporting fixed indexed annuities | $ 2,800 | $ 2,600 | |
Age of oldest original owner | 81 years | ||
Fixed annuity benefit, percentage of premiums paid | 200.00% | ||
Total embedded derivative liabilities | $ 9.1 | 6.8 | |
Embedded derivative, gain (loss) on embedded derivative, net | (3.1) | (45.9) | $ 12.2 |
Fixed Annuity | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Total embedded derivative liabilities | $ 156.8 | $ 153.9 |
Separate Accounts, Death Bene93
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives (Details) - Variable Annuity - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Total | $ 1,669.8 | $ 2,064.4 |
Debt securities | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Total | 300.5 | 375.9 |
Equity securities | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Total | 1,325.6 | 1,638.6 |
Other | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Total | $ 43.7 | $ 49.9 |
Separate Accounts, Death Bene94
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Changes in Guaranteed Liability Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Guaranteed Minimum Death Benefit | Variable Annuity | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | $ 21.4 | $ 22.7 | $ 15.9 |
Incurred | 0.9 | 1.8 | 2.1 |
Paid | (2.7) | (3.7) | (3.7) |
Assumption unlocking | 0.6 | 0.5 | 8.4 |
Change due to net unrealized gains or losses included in AOCI | 0 | 0.1 | 0 |
Balance, end of period | 20.2 | 21.4 | 22.7 |
Guaranteed Minimum Income Benefit | Variable Annuity | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | 17.1 | 9.8 | 21.7 |
Incurred | (0.9) | 2.1 | (3.6) |
Paid | (0.6) | (0.2) | 0 |
Assumption unlocking | (6.7) | 5.4 | (8.2) |
Change due to net unrealized gains or losses included in AOCI | 0 | 0 | (0.1) |
Balance, end of period | 8.9 | 17.1 | 9.8 |
Guaranteed Minimum Withdrawal Benefit And Guaranteed Minimum Death Benefit | Fixed Annuity | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | 147 | 85.4 | 102.1 |
Incurred | 54.1 | 33.4 | 60.8 |
Paid | (0.4) | (0.3) | (0.3) |
Assumption unlocking | (5.1) | (7.4) | (18.7) |
Change due to net unrealized gains or losses included in AOCI | (42.8) | 35.9 | (58.5) |
Balance, end of period | 152.8 | 147 | 85.4 |
Secondary Guarantee | Universal Life | |||
Movement in Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance, beginning of period | 195.8 | 170.6 | 138.5 |
Incurred | 45.5 | 39.9 | 37.9 |
Paid | (27.9) | (15.3) | (14.3) |
Assumption unlocking | 0.7 | (1.6) | 10.9 |
Change due to net unrealized gains or losses included in AOCI | (4) | 2.2 | (2.4) |
Balance, end of period | $ 210.1 | $ 195.8 | $ 170.6 |
Separate Accounts, Death Bene95
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Schedule of Net Amount of Risk by Product and Guarantee (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Subtotal separate account liabilities with GMDB | $ 613.5 | $ 819.5 |
Separate account liabilities | 2,536.4 | 3,020.7 |
Guaranteed Minimum Death Benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net amount at risk by product and guarantee, general and separate account value | 2,024.8 | 2,436.5 |
NAR before Reinsurance | 156.9 | 118.6 |
NAR after Reinsurance | 58.1 | 19.8 |
Less: General account value with GMDB | 360.8 | 378.6 |
Subtotal separate account liabilities with GMDB | 1,664 | 2,057.9 |
Without Guaranteed Minimum Death Benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account liabilities | $ 872.4 | $ 962.8 |
Guaranteed Minimum Income Benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average Attained Age of Annuitant | 66 years | 65 years |
Less: General account value with GMDB | $ 253.8 | $ 319.6 |
Return On Premium | Guaranteed Minimum Death Benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net amount at risk by product and guarantee, general and separate account value | 527.5 | 661.5 |
NAR before Reinsurance | 1.7 | 1.6 |
NAR after Reinsurance | $ 1.7 | $ 1.6 |
Average Attained Age of Annuitant | 64 years | 63 years |
Step Up | Guaranteed Minimum Death Benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net amount at risk by product and guarantee, general and separate account value | $ 1,453.7 | $ 1,723.2 |
NAR before Reinsurance | 146.5 | 112.2 |
NAR after Reinsurance | $ 47.7 | $ 13.4 |
Average Attained Age of Annuitant | 65 years | 64 years |
Extend Earnings Enhancement Benefit | Guaranteed Minimum Death Benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net amount at risk by product and guarantee, general and separate account value | $ 24 | $ 29.1 |
NAR before Reinsurance | 2.6 | 0 |
NAR after Reinsurance | $ 2.6 | $ 0 |
Average Attained Age of Annuitant | 65 years | 65 years |
Extend Annual Step Up or Roll Up | Guaranteed Minimum Death Benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net amount at risk by product and guarantee, general and separate account value | $ 19.6 | $ 22.7 |
NAR before Reinsurance | 6.1 | 4.8 |
NAR after Reinsurance | $ 6.1 | $ 4.8 |
Average Attained Age of Annuitant | 70 years | 69 years |
Separate Accounts, Death Bene96
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Changes in Additional Liability Balances (Details) - Universal Life - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplementary Insurance Information, Liability for Future Policy Benefits, Losses, Claims and Loss Expense Reserves [Roll Forward] | |||
Balance, beginning of period | $ 351.5 | $ 249.1 | $ 311.7 |
Incurred | 31.5 | 106.4 | 66.2 |
Assumption unlocking | 19.7 | (13) | (129.9) |
Change due to net unrealized gains or losses included in AOCI | (12.1) | 9 | 1.1 |
Balance, end of period | $ 390.6 | $ 351.5 | $ 249.1 |
Separate Accounts, Death Bene97
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Non-Insurance Guaranteed Product Features (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account liabilities | $ 613.5 | $ 819.5 |
Variable Annuity | GMWB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account liabilities | $ 385.1 | $ 496.8 |
Average Attained Age of Annuitant | 66 years | 65 years |
Variable Annuity | GMAB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account liabilities | $ 223.5 | $ 315.6 |
Average Attained Age of Annuitant | 60 years | 59 years |
Variable Annuity | COMBO | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account liabilities | $ 4.9 | $ 7.1 |
Average Attained Age of Annuitant | 65 years | 65 years |
Separate Accounts, Death Bene98
Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives Variable Annuity Embedded Derivative Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded derivative liabilities | $ 9.1 | $ 6.8 |
GMWB | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded derivative liabilities | 9 | 7.3 |
GMAB | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded derivative liabilities | 0.2 | (0.3) |
COMBO | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||
Total embedded derivative liabilities | $ (0.1) | $ (0.2) |
Derivative Instruments Narrativ
Derivative Instruments Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability, collateral, cash and cash equivalents | $ 20.6 | $ 18.6 |
Derivative Instruments Schedule
Derivative Instruments Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional Amount | $ 6,294 | $ 3,617.7 |
Fair value of assets | 103.5 | 161.3 |
Derivative liabilities | 49.3 | 85.6 |
Derivative asset, contingent receivable | 1.5 | 1.5 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 159 | 114 |
Fair value of assets | 2.8 | 9.7 |
Derivative liabilities | 0.5 | 1.9 |
Variance swaps | ||
Derivative [Line Items] | ||
Notional Amount | 0.7 | 0.9 |
Fair value of assets | 0 | 0 |
Derivative liabilities | 6.5 | 8.6 |
Swaptions | ||
Derivative [Line Items] | ||
Notional Amount | 2,790 | 777 |
Fair value of assets | 10.4 | 0.1 |
Derivative liabilities | 3.6 | 0 |
Put options | ||
Derivative [Line Items] | ||
Notional Amount | 800.4 | 692.5 |
Fair value of assets | 31.3 | 31.1 |
Derivative liabilities | 6 | 0 |
Call options | ||
Derivative [Line Items] | ||
Notional Amount | 2,502.1 | 2,019.2 |
Fair value of assets | 57.5 | 119.8 |
Derivative liabilities | 32.3 | 74.6 |
Cross currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 10 | 10 |
Fair value of assets | 1.5 | 0.6 |
Derivative liabilities | 0 | 0 |
Equity futures | ||
Derivative [Line Items] | ||
Notional Amount | 31.8 | 4.1 |
Fair value of assets | 0 | 0 |
Derivative liabilities | $ 0.4 | $ 0.5 |
Derivative Instruments Sched101
Derivative Instruments Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ (34.2) | $ (66.7) | $ (15.5) |
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | 4.8 | 11 | (11.4) |
Variance swaps | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | (0.9) | (0.7) | (3.6) |
Swaptions | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | (4.1) | (30.6) | 17.3 |
Put options | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | (9.2) | (4.8) | (42.3) |
Call options | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | (22.2) | 18.5 | 59.3 |
Cross currency swaps | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0.8 | 1.3 | (0.5) |
Equity futures | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | (0.3) | (15.5) | (46.5) |
Embedded derivatives | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ (3.1) | $ (45.9) | $ 12.2 |
Derivative Instruments Offsetti
Derivative Instruments Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Assets [Abstract] | ||
Gross amounts recognized | $ 103.5 | $ 161.3 |
Gross amounts offset in the balance sheet | 0 | 0 |
Derivative instruments | 103.5 | 161.3 |
Derivative, collateral, obligation to return securities | (47.4) | (82.5) |
Net amount | 56.1 | 78.8 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts recognized | (49.3) | (85.6) |
Fair value liabilities | (49.3) | (85.6) |
Derivative, collateral, right to reclaim securities | 47.4 | 82.5 |
Derivative, collateral, right to reclaim cash | 1.9 | 3.1 |
Net amount | 0 | 0 |
Derivative liability, collateral, amount exceeding net liability | $ 18.7 | $ 15.5 |
Fair Value of Financial Inst103
Fair Value of Financial Instruments Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Available for sale securities, fair value | $ 12,190.7 | $ 12,679.3 |
Available-for-sale equity securities, at fair value | 182 | 179.5 |
Fair value investments | 165 | 235.4 |
Separate account assets | 2,536.4 | 3,020.7 |
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 49.3 | 85.6 |
U.S. government and agency | ||
ASSETS: | ||
Available for sale securities, fair value | 589.6 | 443.4 |
State and political subdivision | ||
ASSETS: | ||
Available for sale securities, fair value | 537.4 | 557.9 |
Foreign government | ||
ASSETS: | ||
Available for sale securities, fair value | 242.9 | 230.9 |
Corporate | ||
ASSETS: | ||
Available for sale securities, fair value | 8,342.2 | 8,398.1 |
Commercial mortgage-backed (“CMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 684.1 | 651.2 |
Residential mortgage-backed (“RMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 1,246.2 | 1,932.2 |
Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
ASSETS: | ||
Available for sale securities, fair value | 309.5 | 196.9 |
Other asset-backed (“ABS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 238.8 | 268.7 |
Level 3 | ||
ASSETS: | ||
Total assets | 4,358.7 | 6,654.5 |
Liabilities and Stockholders’ Equity | ||
Total liabilities | 165.9 | 160.7 |
Recurring | ||
ASSETS: | ||
Available for sale securities, fair value | 12,190.7 | 12,679.3 |
Available-for-sale equity securities, at fair value | 182 | 179.5 |
Short-term investments | 164.8 | 149.7 |
Derivative assets | 103.5 | 161.3 |
Fair value investments | 165 | 235.4 |
Separate account assets | 2,536.4 | 3,020.7 |
Total assets | 15,342.4 | 16,425.9 |
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 49.3 | 85.6 |
Total liabilities | 215.2 | 246.3 |
Deferred compensation liabilities | 18.8 | 23.5 |
Recurring | Variable Interest Entity, Primary Beneficiary | ||
ASSETS: | ||
Fair value investments | 87.2 | 100 |
Recurring | Total available-for-sale debt securities | ||
ASSETS: | ||
Fair value investments | 59 | 111.9 |
Recurring | Embedded derivatives | ||
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 165.9 | 160.7 |
Recurring | U.S. government and agency | ||
ASSETS: | ||
Available for sale securities, fair value | 589.6 | 443.4 |
Recurring | State and political subdivision | ||
ASSETS: | ||
Available for sale securities, fair value | 537.4 | 557.9 |
Recurring | Foreign government | ||
ASSETS: | ||
Available for sale securities, fair value | 242.9 | 230.9 |
Recurring | Corporate | ||
ASSETS: | ||
Available for sale securities, fair value | 8,342.2 | 8,398.1 |
Recurring | Commercial mortgage-backed (“CMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 684.1 | 651.2 |
Recurring | Residential mortgage-backed (“RMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 1,246.2 | 1,932.2 |
Recurring | Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
ASSETS: | ||
Available for sale securities, fair value | 309.5 | 196.9 |
Recurring | Other asset-backed (“ABS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 238.8 | 268.7 |
Recurring | Level 1 | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Available-for-sale equity securities, at fair value | 0 | 0 |
Short-term investments | 0 | 149.7 |
Derivative assets | 0 | 0 |
Fair value investments | 18.8 | 32.4 |
Separate account assets | 2,536.4 | 3,020.7 |
Total assets | 2,555.2 | 3,202.8 |
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 0.4 | 0.5 |
Total liabilities | 0.4 | 0.5 |
Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary | ||
ASSETS: | ||
Fair value investments | 8.8 | |
Recurring | Level 1 | Embedded derivatives | ||
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Commercial mortgage-backed (“CMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Residential mortgage-backed (“RMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Other asset-backed (“ABS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 2 | ||
ASSETS: | ||
Available for sale securities, fair value | 8,010.1 | 6,394.3 |
Available-for-sale equity securities, at fair value | 97.2 | 0 |
Short-term investments | 159.8 | 0 |
Derivative assets | 103.5 | 161.3 |
Fair value investments | 57.9 | 13 |
Separate account assets | 0 | 0 |
Total assets | 8,428.5 | 6,568.6 |
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 48.9 | 85.1 |
Total liabilities | 48.9 | 85.1 |
Recurring | Level 2 | Embedded derivatives | ||
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 2 | U.S. government and agency | ||
ASSETS: | ||
Available for sale securities, fair value | 128.7 | 81.2 |
Recurring | Level 2 | State and political subdivision | ||
ASSETS: | ||
Available for sale securities, fair value | 357.5 | 157.7 |
Recurring | Level 2 | Foreign government | ||
ASSETS: | ||
Available for sale securities, fair value | 234.5 | 177.3 |
Recurring | Level 2 | Corporate | ||
ASSETS: | ||
Available for sale securities, fair value | 4,933.6 | 3,994.2 |
Recurring | Level 2 | Commercial mortgage-backed (“CMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 662.1 | 498.4 |
Recurring | Level 2 | Residential mortgage-backed (“RMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 1,223.9 | 1,461.9 |
Recurring | Level 2 | Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
ASSETS: | ||
Available for sale securities, fair value | 308.3 | 0 |
Recurring | Level 2 | Other asset-backed (“ABS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 161.5 | 23.6 |
Recurring | Level 3 | ||
ASSETS: | ||
Available for sale securities, fair value | 4,180.6 | 6,285 |
Available-for-sale equity securities, at fair value | 84.8 | 179.5 |
Short-term investments | 5 | 0 |
Derivative assets | 0 | 0 |
Fair value investments | 88.3 | 190 |
Separate account assets | 0 | 0 |
Total assets | 4,358.7 | 6,654.5 |
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 165.9 | 160.7 |
Recurring | Level 3 | Embedded derivatives | ||
Liabilities and Stockholders’ Equity | ||
Derivative liabilities | 165.9 | 160.7 |
Recurring | Level 3 | U.S. government and agency | ||
ASSETS: | ||
Available for sale securities, fair value | 460.9 | 362.2 |
Recurring | Level 3 | State and political subdivision | ||
ASSETS: | ||
Available for sale securities, fair value | 179.9 | 400.2 |
Recurring | Level 3 | Foreign government | ||
ASSETS: | ||
Available for sale securities, fair value | 8.4 | 53.6 |
Recurring | Level 3 | Corporate | ||
ASSETS: | ||
Available for sale securities, fair value | 3,408.6 | 4,403.9 |
Recurring | Level 3 | Commercial mortgage-backed (“CMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 22 | 152.8 |
Recurring | Level 3 | Residential mortgage-backed (“RMBS”) | ||
ASSETS: | ||
Available for sale securities, fair value | 22.3 | 470.3 |
Recurring | Level 3 | Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
ASSETS: | ||
Available for sale securities, fair value | 1.2 | 196.9 |
Recurring | Level 3 | Other asset-backed (“ABS”) | ||
ASSETS: | ||
Available for sale securities, fair value | $ 77.3 | $ 245.1 |
Fair Value of Financial Inst104
Fair Value of Financial Instruments Beginning of FN through level 3 financial assets Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Disposal group, including discontinued operation, available-for-sale securities, debt securities | $ 28.2 | $ 27.8 |
Fair Value of Financial Inst105
Fair Value of Financial Instruments Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | $ 12,190.7 | $ 12,679.3 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 8,342.2 | 8,398.1 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 12,190.7 | 12,679.3 |
Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 8,342.2 | 8,398.1 |
Recurring | Corporate | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 2,145.2 | 1,859.6 |
Recurring | Corporate | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 929.6 | 1,007.4 |
Recurring | Corporate | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 2,127.8 | 2,585.2 |
Recurring | Corporate | Capital goods | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 784 | 782.9 |
Recurring | Corporate | Transportation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 460.4 | 410.5 |
Recurring | Corporate | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 1,117.6 | 1,031.5 |
Recurring | Corporate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 777.6 | 721 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | Capital goods | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | Transportation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 8,010.1 | 6,394.3 |
Recurring | Level 2 | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 4,933.6 | 3,994.2 |
Recurring | Level 2 | Corporate | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 895.6 | 593 |
Recurring | Level 2 | Corporate | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 636.4 | 534.6 |
Recurring | Level 2 | Corporate | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 1,773.8 | 1,617.3 |
Recurring | Level 2 | Corporate | Capital goods | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 521.2 | 398.1 |
Recurring | Level 2 | Corporate | Transportation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 175.9 | 104.7 |
Recurring | Level 2 | Corporate | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 417.5 | 348.1 |
Recurring | Level 2 | Corporate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 513.2 | 398.4 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 4,180.6 | 6,285 |
Recurring | Level 3 | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 3,408.6 | 4,403.9 |
Recurring | Level 3 | Corporate | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 1,249.6 | 1,266.6 |
Recurring | Level 3 | Corporate | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 293.2 | 472.8 |
Recurring | Level 3 | Corporate | Financial services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 354 | 967.9 |
Recurring | Level 3 | Corporate | Capital goods | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 262.8 | 384.8 |
Recurring | Level 3 | Corporate | Transportation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 284.5 | 305.8 |
Recurring | Level 3 | Corporate | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | 700.1 | 683.4 |
Recurring | Level 3 | Corporate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities, fair value | $ 264.4 | $ 322.6 |
Fair Value of Financial Inst106
Fair Value of Financial Instruments Schedule of Level 3 Financial Assets (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Level 3 Financial Assets: | ||
Balance, beginning of period | $ 6,654.5 | $ 5,950.2 |
Purchases | 995 | 1,039.9 |
Sales | (830.6) | (719.7) |
Transfers into Level 3 | 511.4 | 372.5 |
Transfers out of Level 3 | (2,761.6) | (132.6) |
Realized and unrealized gains (losses) included in income | (42.8) | 44.7 |
Unrealized gains (losses) included in OCI | (167.2) | 99.5 |
Total | 4,358.7 | 6,654.5 |
U.S. government and agency | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 362.2 | 327.2 |
Purchases | 25.1 | 40 |
Sales | (23.8) | (26.7) |
Transfers into Level 3 | 117 | 0 |
Transfers out of Level 3 | (6.3) | 0 |
Realized and unrealized gains (losses) included in income | 2.3 | 0 |
Unrealized gains (losses) included in OCI | (15.6) | 21.7 |
Total | 460.9 | 362.2 |
State and political subdivision | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 400.2 | 269.1 |
Purchases | 41.1 | 106.5 |
Sales | (14.1) | (6.5) |
Transfers into Level 3 | 0 | 11.3 |
Transfers out of Level 3 | (238.7) | 0 |
Realized and unrealized gains (losses) included in income | 2.7 | 0 |
Unrealized gains (losses) included in OCI | (11.3) | 19.8 |
Total | 179.9 | 400.2 |
Foreign government | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 53.6 | 15.9 |
Purchases | 0 | 7.4 |
Sales | (0.3) | 0 |
Transfers into Level 3 | 14.8 | 28.5 |
Transfers out of Level 3 | (61) | 0 |
Realized and unrealized gains (losses) included in income | (0.3) | 0 |
Unrealized gains (losses) included in OCI | 1.6 | 1.8 |
Total | 8.4 | 53.6 |
Corporate | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 4,403.9 | 3,893.8 |
Purchases | 690.4 | 710.9 |
Sales | (532.9) | (428.9) |
Transfers into Level 3 | 354 | 244 |
Transfers out of Level 3 | (1,328.3) | (97.9) |
Realized and unrealized gains (losses) included in income | (48.1) | 4.6 |
Unrealized gains (losses) included in OCI | (130.4) | 77.4 |
Total | 3,408.6 | 4,403.9 |
CMBS | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 152.8 | 113.7 |
Purchases | 30.1 | 25.1 |
Sales | (5.6) | (36.6) |
Transfers into Level 3 | 25.6 | 71.1 |
Transfers out of Level 3 | (176.8) | (30.4) |
Realized and unrealized gains (losses) included in income | 0.2 | 1.4 |
Unrealized gains (losses) included in OCI | (4.3) | 8.5 |
Total | 22 | 152.8 |
RMBS | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 470.3 | 552.7 |
Purchases | 0.7 | 3.1 |
Sales | (73.8) | (75.5) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (368.7) | (4.3) |
Realized and unrealized gains (losses) included in income | (1.1) | 3.1 |
Unrealized gains (losses) included in OCI | (5.1) | (8.8) |
Total | 22.3 | 470.3 |
Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 196.9 | 224.1 |
Purchases | 166.2 | 41.4 |
Sales | (58.2) | (61.6) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (304.5) | 0 |
Realized and unrealized gains (losses) included in income | 0.2 | 2.7 |
Unrealized gains (losses) included in OCI | 0.6 | (9.7) |
Total | 1.2 | 196.9 |
Other asset-backed (“ABS”) | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 245.1 | 247.7 |
Purchases | 4.5 | 26.1 |
Sales | (27.6) | (40) |
Transfers into Level 3 | 0 | 17.6 |
Transfers out of Level 3 | (139.8) | 0 |
Realized and unrealized gains (losses) included in income | (0.1) | 1.7 |
Unrealized gains (losses) included in OCI | (4.8) | (8) |
Total | 77.3 | 245.1 |
Total available-for-sale debt securities | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 6,285 | 5,644.2 |
Purchases | 958.1 | 960.5 |
Sales | (736.3) | (675.8) |
Transfers into Level 3 | 511.4 | 372.5 |
Transfers out of Level 3 | (2,624.1) | (132.6) |
Realized and unrealized gains (losses) included in income | (44.2) | 13.5 |
Unrealized gains (losses) included in OCI | (169.3) | 102.7 |
Total | 4,180.6 | 6,285 |
Equity securities | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 179.5 | 135.2 |
Purchases | 20.2 | 65 |
Sales | (14.9) | (21.2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (92.6) | 0 |
Realized and unrealized gains (losses) included in income | (9.5) | 3.7 |
Unrealized gains (losses) included in OCI | 2.1 | (3.2) |
Total | 84.8 | 179.5 |
Short-term investments | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 0 | 0.9 |
Purchases | 5 | 0 |
Sales | 0 | (0.5) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized and unrealized gains (losses) included in income | 0 | $ (0.4) |
Unrealized gains (losses) included in OCI | 0 | |
Total | 5 | $ 0 |
Fair value investments | ||
Level 3 Financial Assets: | ||
Balance, beginning of period | 190 | 169.9 |
Purchases | 11.7 | 14.4 |
Sales | (79.4) | (22.2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (44.9) | 0 |
Realized and unrealized gains (losses) included in income | 10.9 | 27.9 |
Unrealized gains (losses) included in OCI | 0 | 0 |
Total | $ 88.3 | $ 190 |
Fair Value of Financial Inst107
Fair Value of Financial Instruments Schedule of Level 3 Financial Liabilities - Embedded Derivatives (Details) - Embedded derivatives - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | $ 160.7 | $ 87.8 |
Net purchases / settlements | 2.1 | 27.1 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized (gains) losses | 3.1 | 45.8 |
Balance, end of period | $ 165.9 | $ 160.7 |
Fair Value of Financial Inst108
Fair Value of Financial Instruments Schedule of Quantitative Estimates - Level 3 Assets (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | $ 4,358.7 | $ 6,654.5 |
U.S. government and agency | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | 460.9 | 362.2 |
State and political subdivision | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | 179.9 | 400.2 |
Foreign government | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | 8.4 | 53.6 |
Corporate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | 3,408.6 | 4,403.9 |
Other asset-backed (“ABS”) | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | 77.3 | 245.1 |
Fair value investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | 88.3 | 190 |
Discounted Cash Flow | U.S. government and agency | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | $ 459.9 | $ 362.2 |
Discounted Cash Flow | U.S. government and agency | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 1.44% | 0.99% |
Discounted Cash Flow | U.S. government and agency | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 4.83% | 4.27% |
Discounted Cash Flow | U.S. government and agency | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 3.52% | 3.17% |
Discounted Cash Flow | State and political subdivision | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | $ 179.9 | $ 159.1 |
Discounted Cash Flow | State and political subdivision | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 2.04% | 2.15% |
Discounted Cash Flow | State and political subdivision | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 14.79% | 4.50% |
Discounted Cash Flow | State and political subdivision | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 4.14% | 3.22% |
Discounted Cash Flow | Foreign government | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | $ 4.1 | |
Yield | 2.06% | |
Discounted Cash Flow | Corporate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | $ 3,135.8 | $ 3,116.6 |
Discounted Cash Flow | Corporate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 1.11% | 0.93% |
Discounted Cash Flow | Corporate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 11.20% | 6.88% |
Discounted Cash Flow | Corporate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 3.75% | 3.24% |
Discounted Cash Flow | Other asset-backed (“ABS”) | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | $ 34.4 | $ 39.3 |
Discounted Cash Flow | Other asset-backed (“ABS”) | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 1.07% | 0.60% |
Discounted Cash Flow | Other asset-backed (“ABS”) | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 3.20% | 4.00% |
Discounted Cash Flow | Other asset-backed (“ABS”) | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Yield | 2.14% | 1.92% |
Discounted Cash Flow | Fair value investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets | $ 6.6 | $ 6.3 |
Default rate | 0.15% | 0.17% |
Recovery rate | 43.00% | 44.00% |
Fair Value of Financial Inst109
Fair Value of Financial Instruments Schedule of Quantitative Estimates - Level 3 Liabilities (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | $ 165.9 | $ 160.7 |
Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 165.9 | 160.7 |
Embedded derivatives | Guaranteed Minimum Accumulation Benefit, Guaranteed Minimum Withdrawal Benefit, and Combination Rider | Risk Neutral Stochastic Valuation Methodology | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | $ 9.1 | $ 6.8 |
Fair value inputs, credit standing adjustment rate | 4.45% | 3.08% |
Mortality rate | 110.00% | 105.00% |
Embedded derivatives | Guaranteed Minimum Accumulation Benefit, Guaranteed Minimum Withdrawal Benefit, and Combination Rider | Risk Neutral Stochastic Valuation Methodology | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 0.57% | 0.21% |
Lapse rate | 0.00% | 0.00% |
Volatility surface | 4.80% | 9.89% |
Embedded derivatives | Guaranteed Minimum Accumulation Benefit, Guaranteed Minimum Withdrawal Benefit, and Combination Rider | Risk Neutral Stochastic Valuation Methodology | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 2.68% | 2.76% |
Lapse rate | 53.00% | 40.00% |
Volatility surface | 72.02% | 67.34% |
Embedded derivatives | Fixed Annuity | Budget Method | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | $ 156.8 | $ 153.9 |
Fair value inputs, credit standing adjustment rate | 4.45% | 3.08% |
Embedded derivatives | Fixed Annuity | Budget Method | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 0.55% | 0.24% |
Mortality rate | 90.00% | 97.00% |
Lapse rate | 0.50% | 0.04% |
Embedded derivatives | Fixed Annuity | Budget Method | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap curve | 2.46% | 2.55% |
Mortality rate | 100.00% | 105.00% |
Lapse rate | 32.50% | 46.44% |
Fair Value of Financial Inst110
Fair Value of Financial Instruments Schedule of Level 3 Assets and Liabilities by Pricing Source (Details) - Level 3 - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 4,358.7 | $ 6,654.5 |
Total liabilities | 165.9 | 160.7 |
Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 165.9 | 160.7 |
U.S. government and agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 460.9 | 362.2 |
State and political subdivision | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 179.9 | 400.2 |
Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 8.4 | 53.6 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 3,408.6 | 4,403.9 |
Commercial mortgage-backed (“CMBS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22 | 152.8 |
Residential mortgage-backed (“RMBS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22.3 | 470.3 |
Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1.2 | 196.9 |
Other asset-backed (“ABS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 77.3 | 245.1 |
Total available-for-sale debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 4,180.6 | 6,285 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 84.8 | 179.5 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 5 | 0 |
Fair value investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 88.3 | 190 |
Internal Pricing Source | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 3,820.7 | 3,683.5 |
Total liabilities | 165.9 | 160.7 |
Internal Pricing Source | Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 165.9 | 160.7 |
Internal Pricing Source | U.S. government and agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 459.9 | 362.2 |
Internal Pricing Source | State and political subdivision | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 179.9 | 159.1 |
Internal Pricing Source | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 4.1 | 0 |
Internal Pricing Source | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 3,135.8 | 3,116.6 |
Internal Pricing Source | Commercial mortgage-backed (“CMBS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Internal Pricing Source | Residential mortgage-backed (“RMBS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Internal Pricing Source | Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Internal Pricing Source | Other asset-backed (“ABS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 34.4 | 39.3 |
Internal Pricing Source | Total available-for-sale debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 3,814.1 | 3,677.2 |
Internal Pricing Source | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Internal Pricing Source | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Internal Pricing Source | Fair value investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 6.6 | 6.3 |
External Pricing Source | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 538 | 2,971 |
Total liabilities | 0 | 0 |
External Pricing Source | Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 0 | 0 |
External Pricing Source | U.S. government and agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1 | 0 |
External Pricing Source | State and political subdivision | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 241.1 |
External Pricing Source | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 4.3 | 53.6 |
External Pricing Source | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 272.8 | 1,287.3 |
External Pricing Source | Commercial mortgage-backed (“CMBS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22 | 152.8 |
External Pricing Source | Residential mortgage-backed (“RMBS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22.3 | 470.3 |
External Pricing Source | Collateralized debt obligations (“CDO”) / collateralized loan obligations (“CLO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1.2 | 196.9 |
External Pricing Source | Other asset-backed (“ABS”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 42.9 | 205.8 |
External Pricing Source | Total available-for-sale debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 366.5 | 2,607.8 |
External Pricing Source | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 84.8 | 179.5 |
External Pricing Source | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 5 | 0 |
External Pricing Source | Fair value investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 81.7 | $ 183.7 |
Fair Value of Financial Inst111
Fair Value of Financial Instruments Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans receivable, fair value disclosure | $ 2,382.5 | $ 2,352.1 |
Life settlement contracts, fair value disclosure | 0 | 22.4 |
Investment contract, fair value disclosure | 4,333.2 | 3,955 |
Carrying Value | Level 3 | Surplus Note | 7.15% surplus notes, due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 126.2 | 126.2 |
Carrying Value | Level 2 | Unsecured Debt | 7.45% senior unsecured bonds, due 2032 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 252.7 | 252.7 |
Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans receivable, fair value disclosure | 2,368.7 | 2,339.2 |
Life settlement contracts, fair value disclosure | 0 | 17.4 |
Investment contract, fair value disclosure | 4,334.6 | 3,957.3 |
Fair Value | Level 3 | Surplus Note | 7.15% surplus notes, due 2034 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 91.4 | 95.8 |
Fair Value | Level 2 | Unsecured Debt | 7.45% senior unsecured bonds, due 2032 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 206.1 | $ 248 |
Income Taxes Significant Compon
Income Taxes Significant Components of Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||||||||||
U.S. | $ (34.3) | $ 10.5 | $ 8.5 | ||||||||
Foreign | 0 | 0 | 0 | ||||||||
Deferred | |||||||||||
U.S. | 0 | 0 | 0 | ||||||||
Foreign | 0 | 0 | 0 | ||||||||
Total income tax expense (benefit) | $ (2.1) | $ (17) | $ (13) | $ (2.2) | $ 32.3 | $ 2.6 | $ (19.6) | $ (4.8) | $ (34.3) | $ 10.5 | $ 8.5 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (loss) from continuing operations before income taxes: | |||||||||||
U.S. | $ (159.3) | $ (195.2) | $ 38.1 | ||||||||
Foreign | 0 | 0 | 0 | ||||||||
Total | (159.3) | (195.2) | 38.1 | ||||||||
Income tax expense (benefit) at statutory rate of 35% | (55.8) | (68.3) | 13.3 | ||||||||
Dividend received deduction | (3.5) | (3) | (2.3) | ||||||||
Expiration of tax attribute carryovers | 12.9 | 7.4 | 4.5 | ||||||||
Impact of deferred tax validation | 0 | 0.5 | 0 | ||||||||
Noncontrolling interest | (2.4) | (1.4) | (0.2) | ||||||||
Valuation allowance increase (release) | 21.3 | 79.3 | (4.1) | ||||||||
State income taxes (benefit) | (5.3) | (4.3) | (2.8) | ||||||||
Other, net | (1.5) | 0.3 | 0.1 | ||||||||
Total income tax expense (benefit) | $ (2.1) | $ (17) | $ (13) | $ (2.2) | $ 32.3 | $ 2.6 | $ (19.6) | $ (4.8) | $ (34.3) | $ 10.5 | $ 8.5 |
Effective income tax rates | 21.50% | (5.40%) | 22.30% | ||||||||
Statutory rate | 35.00% | 35.00% | 35.00% |
Income Taxes Allocation of Inco
Income Taxes Allocation of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense (benefit) from continuing operations | $ (2.1) | $ (17) | $ (13) | $ (2.2) | $ 32.3 | $ 2.6 | $ (19.6) | $ (4.8) | $ (34.3) | $ 10.5 | $ 8.5 |
Income tax from OCI: | |||||||||||
Unrealized investment (gains) losses | (71.3) | 35.7 | (20.5) | ||||||||
Pension | 0 | 0 | 0 | ||||||||
Policy dividend obligation and DAC | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Income tax benefit from discontinued operations | (0.1) | (0.4) | (0.3) | ||||||||
Total income tax recorded to all components of income | $ (105.7) | $ 45.8 | $ (12.3) |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Tax Balances Attributable to Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax assets | ||
Future policyholder benefits | $ 748.1 | $ 792 |
Employee benefits | 128.9 | 124.4 |
Net operating and capital loss carryover benefits | 222.4 | 198.5 |
Foreign tax credits carryover benefits | 1.6 | 2.3 |
Alternative minimum tax credits | 12.9 | 12.9 |
General business tax credits | 35.4 | 17.7 |
Other | 9.9 | 32.8 |
Available-for-sale debt securities | 105.5 | 34.2 |
Subtotal | 1,264.7 | 1,214.8 |
Valuation allowance | (599.7) | (613) |
Total deferred income tax assets, net of valuation allowance | 665 | 601.8 |
Deferred tax liabilities | ||
DAC | 227.4 | 188.1 |
Investments | 181.1 | 241.7 |
Accrued liabilities | 151 | 137.8 |
Gross deferred income tax liabilities | 559.5 | 567.6 |
Net deferred income tax assets | $ 105.5 | $ 34.2 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||||||||||
Deferred tax assets, valuation allowance | $ 599,700,000 | $ 613,000,000 | $ 599,700,000 | $ 613,000,000 | ||||||||
Deferred income taxes, net | 705,200,000 | 705,200,000 | ||||||||||
Available-for-sale debt securities | 105,500,000 | 34,200,000 | 105,500,000 | 34,200,000 | ||||||||
Valuation allowance increase (release) | 21,300,000 | 79,300,000 | $ (4,100,000) | |||||||||
Impact of the valuation allowance on OCI-related deferred tax balances | 35,200,000 | 35,200,000 | ||||||||||
Impact of the valuation allowance to discontinued operations | 600,000 | |||||||||||
Income tax expense (benefit) | (2,100,000) | $ (17,000,000) | $ (13,000,000) | $ (2,200,000) | 32,300,000 | $ 2,600,000 | $ (19,600,000) | $ (4,800,000) | (34,300,000) | 10,500,000 | 8,500,000 | |
Net operating and capital loss carryover benefits | 222,400,000 | 198,500,000 | 222,400,000 | 198,500,000 | ||||||||
General business tax credits | 35,400,000 | 17,700,000 | 35,400,000 | 17,700,000 | ||||||||
Alternative minimum tax credits | 12,900,000 | 12,900,000 | 12,900,000 | 12,900,000 | ||||||||
Penalties and interest expense | 1,000,000 | 0 | ||||||||||
Penalties and interest accrued | 0 | $ 0 | 0 | 0 | ||||||||
Parent Company | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Income tax expense (benefit) | 14,000,000 | $ (3,700,000) | $ (68,700,000) | |||||||||
Amount of funds in intercompany tax escrow | 76,200,000 | 76,200,000 | $ 76,200,000 | |||||||||
Increase in restricted cash | 23,800,000 | 23,800,000 | $ 23,800,000 | |||||||||
Internal Revenue Service (IRS) | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Operating loss carryforwards related to DTA that are subject to expiration | 201,200,000 | 201,200,000 | ||||||||||
Operating loss carryforwards | 574,900,000 | 574,900,000 | ||||||||||
State and Local Jurisdiction | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Net operating and capital loss carryover benefits | $ 21,200,000 | $ 21,200,000 |
Accumulated Other Comprehens117
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | $ 326.6 | |
Accumulated other comprehensive income (loss), ending balance | 161.2 | $ 326.6 |
Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: | Available-for-sale equity securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | 9.9 | 7 |
Change in component during the period before reclassifications | (10.4) | 9.5 |
Amounts reclassified from AOCI | 4.8 | (6.6) |
Accumulated other comprehensive income (loss), ending balance | 4.3 | 9.9 |
Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: | Other Investments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | 54.8 | 26.9 |
Change in component during the period before reclassifications | (15.3) | 37.9 |
Amounts reclassified from AOCI | (15.5) | (10) |
Accumulated other comprehensive income (loss), ending balance | 24 | 54.8 |
Net Pension Liability Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | (299.1) | (218.9) |
Change in component during the period before reclassifications | (1.8) | (84.8) |
Amounts reclassified from AOCI | 6.4 | 4.6 |
Accumulated other comprehensive income (loss), ending balance | (294.5) | (299.1) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | (234.4) | (185) |
Change in component during the period before reclassifications | (27.5) | (37.4) |
Amounts reclassified from AOCI | (4.3) | (12) |
Accumulated other comprehensive income (loss), ending balance | $ (266.2) | $ (234.4) |
Accumulated Other Comprehens118
Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized investment gains (losses) | $ (32.8) | $ (41.2) | $ 16 | ||||||||
Total before income taxes | (159.3) | (195.2) | 38.1 | ||||||||
Income tax expense (benefit) | $ (2.1) | $ (17) | $ (13) | $ (2.2) | $ 32.3 | $ 2.6 | $ (19.6) | $ (4.8) | (34.3) | 10.5 | 8.5 |
Net income (loss) | $ (21.4) | $ (10.2) | $ (22.4) | $ (73) | $ (136.1) | $ (22.5) | $ (22.4) | $ (28.2) | (127) | (209.2) | 26.7 |
Amounts Reclassified from AOCI | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income (loss) | 4.3 | 12 | 13.9 | ||||||||
Amounts Reclassified from AOCI | Net unrealized gains / (losses) on investments where credit-related OTTI was recognized: | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized investment gains (losses) | (7.4) | 10.1 | (5.3) | ||||||||
Total before income taxes | (7.4) | 10.1 | (5.3) | ||||||||
Income tax expense (benefit) | (2.6) | 3.5 | (1.8) | ||||||||
Net income (loss) | (4.8) | 6.6 | (3.5) | ||||||||
Amounts Reclassified from AOCI | Net unrealized gains / (losses) on all other investments: | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized investment gains (losses) | 23.8 | 15.3 | 37 | ||||||||
Total before income taxes | 23.8 | 15.3 | 37 | ||||||||
Income tax expense (benefit) | 8.3 | 5.3 | 12.9 | ||||||||
Net income (loss) | 15.5 | 10 | 24.1 | ||||||||
Amounts Reclassified from AOCI | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from accumulated other comprehensive income, current period, before tax | (11.1) | (8.2) | (11.5) | ||||||||
Amounts Reclassified from AOCI | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Including Portion Attributable to Noncontrolling Interest | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from accumulated other comprehensive income, current period, before tax | 1.2 | 1.1 | 1.2 | ||||||||
Amounts Reclassified from AOCI | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from accumulated other comprehensive income, current period, before tax | (9.9) | (7.1) | (10.3) | ||||||||
Income tax expense (benefit) | (3.5) | (2.5) | (3.6) | ||||||||
Net income (loss) | $ (6.4) | $ (4.6) | $ (6.7) |
Employee Benefit Plans and E119
Employee Benefit Plans and Employment Agreements Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015USD ($)assumptionplan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans (plan) | plan | 3 | |||
Age plus years of service threshold | 65 years | |||
Age threshold for company contribution | 65 years | |||
Assumptions used in calculations, number of assumptions with the most impact (assumption) | assumption | 2 | |||
Expected long-term rate of return - Employee Plan | 7.50% | 7.50% | 7.75% | |
Employee pension plan asset allocation | 80.00% | |||
Employer contributions | $ 0 | $ 11,800,000 | ||
Expected contributions over next 12 months | $ 0 | |||
Maximum annual contributions per employee, percent | 60.00% | |||
Cost recognized | $ 4,400,000 | 4,300,000 | $ 4,000,000 | |
Additional benefits due | $ 16,900,000 | 18,100,000 | ||
Scenario, Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected long-term rate of return - Employee Plan | 7.50% | |||
Supplemental Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of plans (plan) | plan | 2 | |||
Estimated loss that will be expected to be recognized from AOCI into net periodic benefit cost in the next 12 months | $ 2,700,000 | |||
Employee Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 0 | $ 11,800,000 | ||
Estimated loss that will be expected to be recognized from AOCI into net periodic benefit cost in the next 12 months | 8,800,000 | |||
Other Post-Employment Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated loss that will be expected to be recognized from AOCI into net periodic benefit cost in the next 12 months | 1,000,000 | |||
Other Post-Employment Benefit Plan | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Including Portion Attributable to Noncontrolling Interest | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated loss that will be expected to be recognized from AOCI into net periodic benefit cost in the next 12 months | 500,000 | |||
Other Post-Employment Benefit Plan | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated loss that will be expected to be recognized from AOCI into net periodic benefit cost in the next 12 months | $ 500,000 |
Employee Benefit Plans and E120
Employee Benefit Plans and Employment Agreements Assumptions Related to Pension and Postretirement Employee Benefit Plans (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions Used to Determine Benefit Expense | |||
Expected long-term rate of return - Employee Plan | 7.50% | 7.50% | 7.75% |
Employee Plan | |||
Assumptions Used to Determine Benefit Obligations | |||
Projected benefit obligation discount rate | 4.54% | 4.10% | 4.84% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 4.10% | 4.84% | 3.98% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Supplemental Plans | |||
Assumptions Used to Determine Benefit Obligations | |||
Projected benefit obligation discount rate | 4.43% | 3.97% | 4.69% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 3.97% | 4.69% | 3.81% |
Deferred investment gain/loss amortization corridor | 5.00% | 5.00% | 5.00% |
Other Post-Employment Benefit Plan | |||
Assumptions Used to Determine Benefit Obligations | |||
Projected benefit obligation discount rate | 4.10% | 3.62% | 4.21% |
Deferred investment gain/loss amortization corridor | 10.00% | 10.00% | 10.00% |
Assumptions Used to Determine Benefit Expense | |||
Projected benefit obligation discount rate | 3.62% | 4.21% | 3.37% |
Deferred investment gain/loss amortization corridor | 10.00% | 10.00% | 10.00% |
Employee Benefit Plans and E121
Employee Benefit Plans and Employment Agreements Changes in Plan Assets and Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Employer contributions | $ 0 | $ 11.8 | |
Employee Plan | |||
Plan Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | 714.9 | 638.5 | |
Service cost | 3 | 2.3 | $ 2.1 |
Interest cost | 28.7 | 30.1 | 27 |
Net actuarial (gain) loss | (37.3) | 79.7 | |
Benefits paid | (36.8) | (35.7) | |
Benefit obligation, end of period | 672.5 | 714.9 | 638.5 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning of period | 540.4 | 516.5 | |
Plan assets’ actual return | (10.2) | 47.8 | |
Employer contributions | 0 | 11.8 | |
Benefits paid | (36.8) | (35.7) | |
Fair value of plan assets, end of period | 493.4 | 540.4 | 516.5 |
Under funded status, end of period | (179.1) | (174.5) | |
Net actuarial gain (loss) | (240.2) | (236.4) | |
AOCI before income taxes | (240.2) | (236.4) | |
Accumulated benefit obligation | 672.5 | 714.9 | |
Supplemental Plans | |||
Plan Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | 153.7 | 137.4 | |
Service cost | 0 | 0 | 0 |
Interest cost | 5.9 | 6.4 | 5.6 |
Net actuarial (gain) loss | (7.7) | 18.6 | |
Benefits paid | (9.2) | (8.7) | |
Benefit obligation, end of period | 142.7 | 153.7 | 137.4 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefits paid | (9.2) | (8.7) | |
Under funded status, end of period | (142.7) | (153.7) | |
Net actuarial gain (loss) | (68.7) | (79.5) | |
AOCI before income taxes | (68.7) | (79.5) | |
Accumulated benefit obligation | 142.7 | 153.7 | |
Other Post-Employment Benefit Plan | |||
Plan Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | 33.4 | 36.5 | |
Service cost | 0.1 | 0.1 | 0.2 |
Interest cost | 1.1 | 1.4 | 1.3 |
Net actuarial (gain) loss | (1.6) | (0.7) | |
Benefits paid | (3.4) | (3.9) | |
Plan amendments | (6.1) | 0 | |
Service and interest cost | 1.2 | 1.5 | |
Curtailment | (0.6) | 0 | |
Benefit obligation, end of period | 22.9 | 33.4 | $ 36.5 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefits paid | (3.4) | (3.9) | |
Under funded status, end of period | (22.9) | (33.4) | |
Net actuarial gain (loss) | 8.2 | 6.9 | |
Prior service credit (cost) | 6.1 | 9.7 | |
AOCI before income taxes | 14.3 | 16.6 | |
Accumulated benefit obligation | $ 22.9 | $ 33.4 |
Employee Benefit Plans and E122
Employee Benefit Plans and Employment Agreements Components of Pension Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 3 | $ 2.3 | $ 2.1 |
Interest cost | 28.7 | 30.1 | 27 |
Plan assets expected return | (39) | (37.5) | (36.1) |
Net loss amortization | 8.3 | 5.9 | 8.6 |
Pension benefit expense | 1 | 0.8 | 1.6 |
Deferrals for the period – net actuarial (gain) loss | 11.9 | 69.7 | (77.7) |
Amortization for the period – net actuarial gain (loss) | (8.3) | (5.9) | (8.6) |
Total recognized in OCI | 3.6 | 63.8 | (86.3) |
Total recognized in net periodic benefit costs and OCI | 4.6 | 64.6 | (84.7) |
Supplemental Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 5.9 | 6.4 | 5.6 |
Plan assets expected return | 0 | 0 | 0 |
Net loss amortization | 3.1 | 2.6 | 2.9 |
Prior service cost amortization | 0 | 0 | 0 |
Pension benefit expense | 9 | 9 | 8.5 |
Deferrals for the period – net actuarial (gain) loss | (7.7) | 18.6 | (10.8) |
Amortization for the period – net actuarial gain (loss) | (3.1) | (2.6) | (2.9) |
Total recognized in OCI | (10.8) | 16 | (13.7) |
Total recognized in net periodic benefit costs and OCI | (1.8) | 25 | (5.2) |
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0.1 | 0.1 | 0.2 |
Interest cost | 1.1 | 1.4 | 1.3 |
Net loss amortization | (0.3) | (0.3) | 0 |
Prior service cost amortization | (1.2) | (1.1) | (1.2) |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | 9.6 | 1.1 | 1.2 |
Curtailment | (9.1) | 0 | 0 |
Pension benefit expense | (9.4) | 0.1 | 0.3 |
Deferrals for the period – net actuarial (gain) loss | (1.6) | (0.7) | (2.2) |
Amortization for the period – net actuarial gain (loss) | 0.3 | 0.3 | 0 |
Deferrals for prior service credit (cost) | (6.1) | 0 | 0 |
Total recognized in OCI | 2.2 | 0.7 | (1) |
Total recognized in net periodic benefit costs and OCI | $ (7.2) | $ 0.8 | $ (0.7) |
Employee Benefit Plans and E123
Employee Benefit Plans and Employment Agreements Employee Pension Plan Asset Allocation (Details) - Employee Plan | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 53.00% | 52.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 40.00% | 40.00% |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 0.00% | 2.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employee pension plan asset allocation | 7.00% | 6.00% |
Employee Benefit Plans and E124
Employee Benefit Plans and Employment Agreements Fair Value Measurement—Employee Pension Plan Assets (Details) - Employee Plan - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | $ 493.4 | $ 540.4 | $ 516.5 |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 488.9 | 535.9 | |
Recurring | Mercer Group Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 440.9 | 464 | |
Recurring | Virtus Real Estate Securities Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 14.7 | 14.3 | |
Recurring | Limited partnerships and real estate investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 33.3 | 57.6 | |
Recurring | Cash and Cash Equivalents and Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 4.5 | 4.5 | |
Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 0 | 0 | |
Recurring | Level 1 | Mercer Group Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 0 | 0 | |
Recurring | Level 1 | Virtus Real Estate Securities Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 0 | 0 | |
Recurring | Level 1 | Limited partnerships and real estate investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 0 | 0 | |
Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 455.6 | 478.3 | |
Recurring | Level 2 | Mercer Group Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 440.9 | 464 | |
Recurring | Level 2 | Virtus Real Estate Securities Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 14.7 | 14.3 | |
Recurring | Level 2 | Limited partnerships and real estate investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 0 | 0 | |
Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 33.3 | 57.6 | |
Recurring | Level 3 | Mercer Group Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 0 | 0 | |
Recurring | Level 3 | Virtus Real Estate Securities Trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | 0 | 0 | |
Recurring | Level 3 | Limited partnerships and real estate investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, end of period | $ 33.3 | $ 57.6 | $ 55.3 |
Employee Benefit Plans and E125
Employee Benefit Plans and Employment Agreements Level 3 Financial Assets - Pension - Limited Partnership Rollforward (Details) - Employee Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | $ 540.4 | $ 516.5 |
Fair value of plan assets, end of period | 493.4 | 540.4 |
Recurring | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | 535.9 | |
Fair value of plan assets, end of period | 488.9 | 535.9 |
Recurring | Limited partnerships and real estate investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | 57.6 | |
Fair value of plan assets, end of period | 33.3 | 57.6 |
Recurring | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | 57.6 | |
Fair value of plan assets, end of period | 33.3 | 57.6 |
Recurring | Level 3 | Limited partnerships and real estate investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of period | 57.6 | 55.3 |
Purchases | 4.3 | 3.4 |
Sales | (34.4) | (4.2) |
Net appreciation on limited partnerships | 5.8 | 3.1 |
Fair value of plan assets, end of period | $ 33.3 | $ 57.6 |
Employee Benefit Plans and E126
Employee Benefit Plans and Employment Agreements Benefits Expected to be Paid Over the Next Ten Year (Details) $ in Millions | Dec. 31, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 48.4 |
2,017 | 48.6 |
2,018 | 49 |
2,019 | 49.4 |
2,020 | 49.7 |
2021 to 2025 | 259 |
Employee Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 36.4 |
2,017 | 36.7 |
2,018 | 37.2 |
2,019 | 37.7 |
2,020 | 38.3 |
2021 to 2025 | 204 |
Supplemental Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 9.5 |
2,017 | 9.6 |
2,018 | 9.6 |
2,019 | 9.6 |
2,020 | 9.4 |
2021 to 2025 | 46.9 |
Other Post-Employment Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 2.5 |
2,017 | 2.3 |
2,018 | 2.2 |
2,019 | 2.1 |
2,020 | 2 |
2021 to 2025 | $ 8.1 |
Share-Based Payments - Expense
Share-Based Payments - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Compensation cost charged to income from continuing operations | $ 2.8 | $ 3 | $ 4.6 |
Income tax expense (benefit) before valuation allowance | $ (1) | $ (1) | $ (1.6) |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2001 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised (shares) | 0 | 1,472 | 0 | |
Granted (shares) | 0 | 0 | 0 | |
Unrecognized compensation costs, stock options | $ 0 | |||
Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (shares) | 315,000 | |||
Directors' Stock Plan | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (shares) | 51,250 | |||
Award vesting period | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Number of common stock entitled to upon vesting (shares) | 1 | |||
Cash Settled Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Liability for awards that are intended to be settled in cash | $ 2,600,000 | $ 1,400,000 | ||
Cash payments made related to settle awards | $ 0 | $ 4,700,000 |
Share-Based Payments - Stock Op
Share-Based Payments - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common shares (in shares): | |||
Outstanding, beginning of period (shares) | 50,367 | ||
Granted (shares) | 0 | 0 | 0 |
Options exercised (shares) | 0 | (1,472) | 0 |
Forfeited (shares) | 0 | ||
Canceled/expired (shares) | (15,957) | ||
Outstanding, end of period (shares) | 34,410 | 50,367 | |
Vested and exercisable, end of period (shares) | 34,410 | ||
Weighted-Average Exercise Price (in dollars per share): | |||
Outstanding, beginning of period (USD per share) | $ 187.38 | ||
Granted (USD per share) | 0 | ||
Exercised (USD per share) | 0 | ||
Forfeited (USD per share) | 0 | ||
Canceled/expired (USD per share) | 202.94 | ||
Outstanding, end of period (USD per share) | 180.17 | $ 187.38 | |
Vested and exercisable, end of period (USD per share) | $ 180.17 | ||
Weighted-average remaining contractual term, outstanding | 2 years 1 month 17 days | 2 years 6 months 7 days | |
Weighted-average remaining contractual term, vested and exercisable | 2 years 1 month 17 days | ||
Aggregate intrinsic value, outstanding | $ 0 | $ 100 | |
Aggregate intrinsic value, vested and exercisable | $ 0 |
Share-Based Payments - RSUs Act
Share-Based Payments - RSUs Activity (Details) - Time-vested RSUs awarded - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding (in shares): | |||
Outstanding, beginning of period (shares) | 96,087 | ||
Awarded (shares) | 68,506 | 13,063 | 18,251 |
Adjustment for performance results (shares) | 0 | ||
Converted to common shares/applied to taxes (shares) | (19,278) | ||
Forfeited (shares) | (5,137) | ||
Outstanding, end of period (shares) | 140,178 | 96,087 | |
Weighted-Average Grant Date Fair Value (in dollars per share): | |||
Outstanding, beginning of period (USD per share) | $ 49.25 | ||
Awarded (USD per share) | 24 | $ 55.81 | $ 33.76 |
Adjustment for performance results (USD per share) | 0 | ||
Converted to common shares/applied to taxes (USD per share) | 41.93 | ||
Forfeited (USD per share) | 19.23 | ||
Outstanding, end of period (USD per share) | $ 39.01 | $ 49.25 |
Share-Based Payments - RSUs Awa
Share-Based Payments - RSUs Awarded (Details) - Time-vested RSUs awarded - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number (shares) | 68,506 | 13,063 | 18,251 |
Weighted-Average grant date fair value (USD per share) | $ 24 | $ 55.81 | $ 33.76 |
Share-Based Payments - RSU Valu
Share-Based Payments - RSU Values (Details) - Restricted Stock Units (RSUs) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of RSUs converted (USD per share) | $ 0.3 | $ 0.2 | $ 2.3 |
Total grant date fair value of RSUs vested converted to common shares | $ 0.8 | $ 0.2 | $ 3.6 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Basic weighted-average common shares outstanding (shares) | 5,751 | 5,748 | 5,735 |
Weighted-average effect of dilutive potential common shares: | |||
Incremental common shares attributable to share based payment arrangements including antidilutive securities excluded from computation of earnings per share (shares) | 26 | 7 | 29 |
Less: Potential common shares excluded from calculation due to net losses (shares) | (26) | (7) | 0 |
Dilutive potential common shares (shares) | 0 | 0 | 29 |
Diluted weighted-average common shares outstanding (in shares) | 5,751 | 5,748 | 5,764 |
Restricted Stock Units (RSUs) | |||
Weighted-average effect of dilutive potential common shares: | |||
Incremental common shares attributable to share based payment arrangements including antidilutive securities excluded from computation of earnings per share (shares) | 26 | 5 | 27 |
Employee Stock Option | |||
Weighted-average effect of dilutive potential common shares: | |||
Incremental common shares attributable to share based payment arrangements including antidilutive securities excluded from computation of earnings per share (shares) | 0 | 2 | 2 |
Segment Information Reconciliat
Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 430.3 | $ 437.1 | $ 422 | $ 405.4 | $ 440.4 | $ 414.4 | $ 413.1 | $ 399 | $ 1,694.8 | $ 1,666.9 | $ 1,707.6 |
Fee income | 543.6 | 545.1 | 550.3 | ||||||||
Operating Segments | Life and Annuity | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,664.1 | 1,640.8 | 1,689.6 | ||||||||
Operating Segments | Saybrus Partners | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 43.3 | 37.5 | 26.8 | ||||||||
Fee income | 12.6 | 11.5 | 9.2 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 12.6 | $ 11.4 | $ 8.8 |
Segment Information Reconcil135
Segment Information Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Income (loss) before income taxes | $ (159.3) | $ (195.2) | $ 38.1 | ||||||||
Less: Applicable income tax expense (benefit) | $ (2.1) | $ (17) | $ (13) | $ (2.2) | $ 32.3 | $ 2.6 | $ (19.6) | $ (4.8) | (34.3) | 10.5 | 8.5 |
Income (loss) from discontinued operations, net of income taxes | (2) | (3.5) | (2.9) | ||||||||
Net realized investment gains (losses) | (32.8) | (41.2) | 16 | ||||||||
Less: Income (loss) attributable to noncontrolling interests | 0 | 5.5 | 0.2 | 1 | 4.2 | (0.1) | 0 | (0.1) | 6.7 | 4 | 0.7 |
Net income (loss) | $ (21.4) | $ (15.7) | $ (22.6) | $ (74) | $ (140.3) | $ (22.4) | $ (22.4) | $ (28.1) | (133.7) | (213.2) | 26 |
Operating Segments | Life and Annuity | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income (loss) before income taxes | (134.8) | (160.2) | 19 | ||||||||
Operating Segments | Saybrus Partners | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income (loss) before income taxes | 8.3 | 6.2 | 3.1 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Less: Applicable income tax expense (benefit) | (34.3) | 10.5 | 8.5 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (2) | (3.5) | (2.9) | ||||||||
Net realized investment gains (losses) | (32.8) | (41.2) | 16 | ||||||||
Less: Income (loss) attributable to noncontrolling interests | $ 6.7 | $ 4 | $ 0.7 |
Discontinued Operations Narrati
Discontinued Operations Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued operations liabilities | $ 37.8 | $ 40.5 | |
Loss from discontinued operations | 2 | 3.5 | $ 2.9 |
Reinsurance Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued operations liabilities | 35.9 | 39.3 | |
Reinsurance recoverable, discontinued operations | 0.7 | 0.1 | |
Loss from discontinued operations | $ 1.8 | $ 3.4 | $ 1.9 |
Statutory Financial Informat137
Statutory Financial Information and Regulatory Matters (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory Accounting Practices [Line Items] | |||
Total statutory capital, surplus and AVR | $ 771.9 | ||
Total statutory net income (loss) | (674.9) | $ 91.1 | $ (108.1) |
Realized loss relating to de-stacking of Phoenix Life's life subsidiaries | 687.9 | ||
Phoenix Life Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory capital, surplus and AVR | 535.3 | 752.2 | 735.2 |
Total statutory net income (loss) | (660.7) | 132.5 | (21) |
Phoenix Life Insurance Company | Scenario, Previously Reported | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory capital, surplus and AVR | 666.6 | 713.2 | |
Total statutory net income (loss) | 116.3 | (17.8) | |
PHL Variable Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory capital, surplus and AVR | 209.3 | 213.7 | 235.2 |
Total statutory net income (loss) | (14) | (41.1) | (86.1) |
PHL Variable Insurance Company | Scenario, Previously Reported | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory capital, surplus and AVR | 156.5 | 259.9 | |
Total statutory net income (loss) | (88.3) | (65.4) | |
PLAC and APLAR | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory capital, surplus and AVR | 27.3 | 37.5 | 37.5 |
Total statutory net income (loss) | $ (0.2) | $ (0.3) | $ (1) |
Statutory Financial Informat138
Statutory Financial Information and Regulatory Matters Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory Accounting Practices [Line Items] | ||||||
Decrease statutory capital, surplus, and AVR | $ 262.2 | |||||
Decrease statutory capital, surplus, and AVR, subsidiary investment | 228.2 | |||||
Decrease statutory capital, surplus, and AVR, admitted deferred tax assets | 34 | |||||
Total statutory capital, surplus and AVR | $ 771.9 | |||||
Total statutory net income (loss) | (674.9) | $ 91.1 | $ (108.1) | |||
Capital contributions | 33.1 | 15 | ||||
Anticipated dividends paid in next fiscal year | 37.2 | |||||
Phoenix Life Insurance Company | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Decrease statutory capital, surplus, and AVR | $ 262.2 | |||||
Total statutory capital, surplus and AVR | 535.3 | 752.2 | 735.2 | |||
Total statutory net income (loss) | (660.7) | $ 132.5 | (21) | |||
Dividends declared | $ 59.9 | |||||
Asset valuation reserve, adjustment | 153.5 | |||||
Risk-based capital threshold | 400.00% | 400.00% | ||||
Dividends | $ 30 | $ 59.9 | ||||
Phoenix Life Insurance Company | COI Rate Adjustments | United States District Court for the Southern District of New York | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Civil monetary penalty fee | $ 48.5 | |||||
PHL Variable Insurance Company | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Total statutory capital, surplus and AVR | 209.3 | $ 213.7 | 235.2 | |||
Total statutory net income (loss) | $ (14) | $ (41.1) | $ (86.1) | |||
Asset valuation reserve, adjustment | $ 52.5 | |||||
Risk-based capital threshold | 200.00% | 175.00% | ||||
PHL Variable Insurance Company | COI Rate Adjustments | United States District Court for the Southern District of New York | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Civil monetary penalty fee | $ 36.4 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | $ 179.6 | $ 174 |
Premises and equipment carrying value | 46 | 45 |
Accumulated depreciation and amortization | (133.6) | (129) |
Premises and equipment | 46 | 45 |
Real estate | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | 100.5 | 99.8 |
Premises and equipment carrying value | 31.7 | 32.6 |
Equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | 76.1 | 73.8 |
Premises and equipment carrying value | 11.5 | 12.2 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment cost | 3 | 0.4 |
Premises and equipment carrying value | $ 2.8 | $ 0.2 |
Premises and Equipment Narrativ
Premises and Equipment Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense for premises and equipment | $ 5.5 | $ 6 | $ 8.2 |
Rental expenses for operating leases | 0.8 | $ 0.6 | $ 0.6 |
Future minimum rental payments under non-cancelable operating leases, current | 6 | ||
Future minimum rental payments under non-cancelable operating leases, 2016 | 0.8 | ||
Future minimum rental payments under non-cancelable operating leases, 2017 | 0.8 | ||
Future minimum rental payments under non-cancelable operating leases, 2018 | 0.8 | ||
Future minimum rental payments under non-cancelable operating leases, 2019 | 0.5 | ||
Future minimum rental payments under non-cancelable operating leases, 2020 | 0.3 | ||
Future minimum rental payments under non-cancelable operating leases, thereafter | $ 2.8 |
Contingent Liabilities (Details
Contingent Liabilities (Details) | Mar. 23, 2015policy | Mar. 31, 2015USD ($) | Dec. 31, 2015casestateclaim | Dec. 31, 2014USD ($) | Dec. 31, 2001 |
Loss Contingencies [Line Items] | |||||
Number of states to perform unclaimed property audits (state) | state | 39 | ||||
Pending Litigation | United States District Court for the Southern District of New York | |||||
Loss Contingencies [Line Items] | |||||
Number of cases named as a defendant (case)) | 6 | ||||
Payments for Legal Matters | Settled Litigation | SEC Cease-and-Desist Order | |||||
Loss Contingencies [Line Items] | |||||
Civil monetary penalty fee | $ | $ 1,100,000 | ||||
COI Rate Adjustments | |||||
Loss Contingencies [Line Items] | |||||
Number of claims settled (policy) | policy | 7 | ||||
COI Rate Adjustments | Pending Litigation | United States District Court for the Southern District of New York | |||||
Loss Contingencies [Line Items] | |||||
Number of claims (claim) | claim | 2 | ||||
Number of states investigating COI rate adjustments (state) | state | 2 | ||||
PHL Variable Insurance Company | Pending Litigation | United States District Court for the Southern District of New York | |||||
Loss Contingencies [Line Items] | |||||
Number of cases named as a defendant (case)) | 5 | ||||
PHL Variable Insurance Company | COI Rate Adjustments | United States District Court for the Southern District of New York | |||||
Loss Contingencies [Line Items] | |||||
Civil monetary penalty fee | $ | $ 36,400,000 | ||||
PHL Variable and Phoenix Life | Pending Litigation | United States District Court for the Southern District of New York | |||||
Loss Contingencies [Line Items] | |||||
Number of cases named as a defendant (case)) | 1 | ||||
7.45% senior unsecured bonds, due 2032 | Unsecured Debt | |||||
Loss Contingencies [Line Items] | |||||
Stated interest rate | 7.45% |
Other Commitments Narrative (De
Other Commitments Narrative (Details) - USD ($) $ in Millions | Jan. 05, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Long-term Purchase Commitment [Line Items] | ||||
Payments to acquire available-for-sale securities, debt | $ 2,196.9 | $ 2,272.6 | $ 2,460.7 | |
Purchase Commitment | ||||
Long-term Purchase Commitment [Line Items] | ||||
Unfunded commitments | 308.2 | |||
Amount of unfunded commitments expected to be funded | 66.7 | |||
Commitments to Extend Credit | Investment Grade Bonds | ||||
Long-term Purchase Commitment [Line Items] | ||||
Unfunded commitments | $ 100 | |||
Long-term purchase commitment, period | 24 months | |||
Commitments to Extend Credit | Investment Grade Bonds | ||||
Long-term Purchase Commitment [Line Items] | ||||
Payments to acquire available-for-sale securities, debt | 13.5 | |||
Private Placement | ||||
Long-term Purchase Commitment [Line Items] | ||||
Unfunded commitments | 150.8 | |||
HP Enterprise Services | Management of Infrastructure | ||||
Long-term Purchase Commitment [Line Items] | ||||
Remaining commitments | $ 38.6 |
Condensed Financial Informat143
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS: | ||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | $ 12,190.7 | $ 12,679.3 | ||
Cash and cash equivalents | 627.3 | 450 | $ 496.4 | $ 246.4 |
Other assets | 361.7 | 311.3 | ||
Total assets | 21,091.9 | 21,745.9 | ||
Liabilities and Stockholders’ Equity | ||||
Indebtedness (Note 8) | 378.9 | 378.9 | ||
Pension and post-employment liabilities | 361.6 | 380 | ||
Other liabilities | 210.7 | 289.8 | ||
Total liabilities | 20,918.1 | 21,399.3 | ||
Total stockholders’ equity | 173.8 | 346.6 | 601.3 | 511.4 |
Total liabilities and stockholders’ equity | 21,091.9 | 21,745.9 | ||
Parent Company | ||||
ASSETS: | ||||
Available-for-sale debt securities, at fair value (amortized cost of $11,978.0 and $11,341.5) | 1.9 | 5.1 | ||
Affiliate securities | 30 | 30 | ||
Short-term investments | 34.9 | 49.9 | ||
Fair value investments | 18.8 | 23.5 | ||
Cash and cash equivalents | 27 | 11.2 | $ 35.4 | $ 27.2 |
Investments in subsidiaries | 724 | 880.8 | ||
Advances to subsidiaries | 10 | 0 | ||
Other assets | 30.1 | 30.7 | ||
Total assets | 876.7 | 1,031.2 | ||
Liabilities and Stockholders’ Equity | ||||
Indebtedness (Note 8) | 268.6 | 268.6 | ||
Pension and post-employment liabilities | 361.6 | 380 | ||
Due to subsidiaries | 3.2 | 7.3 | ||
Capital contribution payable | 23.1 | 0 | ||
Other liabilities | 59 | 48.7 | ||
Total liabilities | 715.5 | 704.6 | ||
Total stockholders’ equity | 161.2 | 326.6 | ||
Total liabilities and stockholders’ equity | $ 876.7 | $ 1,031.2 |
Condensed Financial Informat144
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Investment income | $ 834.9 | $ 830.9 | $ 789.7 | ||||||||
Net realized investment gains (losses) | 32.1 | 32.8 | 39.7 | ||||||||
Total revenues | $ 430.3 | $ 437.1 | $ 422 | $ 405.4 | $ 440.4 | $ 414.4 | $ 413.1 | $ 399 | 1,694.8 | 1,666.9 | 1,707.6 |
Interest expense | 28.3 | 28.3 | 28.3 | ||||||||
Other operating expenses | 349.9 | 350.2 | 337.1 | ||||||||
Total benefits and expenses | 453 | 464.2 | 456.8 | 480.1 | 542.2 | 434 | 454.5 | 431.4 | 1,854.1 | 1,862.1 | 1,669.5 |
Income (loss) before income taxes | (159.3) | (195.2) | 38.1 | ||||||||
Income tax expense (benefit) | (2.1) | (17) | (13) | (2.2) | 32.3 | 2.6 | (19.6) | (4.8) | (34.3) | 10.5 | 8.5 |
Income (loss) from continuing operations | (20.6) | (10.1) | (21.8) | (72.5) | (134.1) | (22.2) | (21.8) | (27.6) | |||
Income (loss) from discontinued operations of subsidiaries | (0.8) | (0.1) | (0.6) | (0.5) | (2) | (0.3) | (0.6) | (0.6) | |||
Net income (loss) | (21.4) | (10.2) | (22.4) | (73) | (136.1) | (22.5) | (22.4) | (28.2) | (127) | (209.2) | 26.7 |
Less: Income (loss) attributable to noncontrolling interests | 0 | 5.5 | 0.2 | 1 | 4.2 | (0.1) | 0 | (0.1) | 6.7 | 4 | 0.7 |
Net income (loss) attributable to The Phoenix Companies, Inc. | $ (21.4) | $ (15.7) | $ (22.6) | $ (74) | $ (140.3) | $ (22.4) | $ (22.4) | $ (28.1) | (133.7) | (213.2) | 26 |
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Equity in undistributed income (loss) of subsidiaries | (71.3) | (99) | 44.1 | ||||||||
Investment income | 3.6 | 4.5 | 1.2 | ||||||||
Net realized investment gains (losses) | (1) | 0.6 | 3.6 | ||||||||
Total revenues | (68.7) | (93.9) | 48.9 | ||||||||
Interest expense | 20.4 | 20.4 | 20.4 | ||||||||
Other operating expenses | 30.6 | 102.6 | 70.7 | ||||||||
Total benefits and expenses | 51 | 123 | 91.1 | ||||||||
Income (loss) before income taxes | (119.7) | (216.9) | (42.2) | ||||||||
Income tax expense (benefit) | 14 | (3.7) | (68.7) | ||||||||
Income (loss) from continuing operations | (133.7) | (213.2) | 26.5 | ||||||||
Income (loss) from discontinued operations of subsidiaries | 0 | 0 | (0.5) | ||||||||
Net income (loss) | (133.7) | (213.2) | 26 | ||||||||
Less: Income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to The Phoenix Companies, Inc. | $ (133.7) | $ (213.2) | $ 26 |
Condensed Financial Informat145
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Interest paid | $ (27.9) | $ (27.9) | $ (27.9) |
Other operating activities, net | (49.7) | 3.4 | 60.1 |
Purchases of available-for-sale debt securities | (2,196.9) | (2,272.6) | (2,460.7) |
Short-term investments | (763.2) | (1,794.4) | (1,559.7) |
Derivative instruments | (35.5) | (62.7) | (101.9) |
Cash and cash equivalents, beginning of period | 450 | 496.4 | 246.4 |
Cash and cash equivalents, end of period | 627.3 | 450 | 496.4 |
Parent Company | |||
Operating Activities | |||
Interest income received | 3.3 | 3.7 | 0.9 |
Interest paid | (20) | (20) | (20) |
Taxes paid | (3.6) | 0 | (2.2) |
Taxes received | 0 | 0 | 3.5 |
Payments to/from subsidiaries | (27.4) | (113.4) | 52.5 |
Other operating activities, net | (13.8) | (13.8) | (14.9) |
Cash used for operating activities | (61.5) | (143.5) | 19.8 |
Purchases of available-for-sale debt securities | 0 | 0 | (30) |
Short-term investments | (144.6) | (589.4) | (579.5) |
Derivative instruments | (0.9) | 0 | 0 |
Sales, repayments and maturities of available-for-sale debt securities | 3.2 | 5 | 1 |
Short-term investments | 159.7 | 659.4 | 564.7 |
Subsidiary loan payments received | 0 | 3.3 | 3 |
Dividends received from subsidiaries | 69.9 | 56 | 74.2 |
Capital contributions to subsidiaries | (10) | (15) | (45) |
Cash provided by (used for) investing activities | 77.3 | 119.3 | (11.6) |
Cash provided by financing activities | 0 | 0 | 0 |
Change in cash and cash equivalents | 15.8 | (24.2) | 8.2 |
Cash and cash equivalents, beginning of period | 11.2 | 35.4 | 27.2 |
Cash and cash equivalents, end of period | $ 27 | $ 11.2 | $ 35.4 |
Condensed Financial Informat146
Condensed Financial Information of The Phoenix Companies, Inc., and Other Supplementary Data (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||
Number of reporting segments (segment) | segment | 2 | ||
Unearned premiums included in policy liabilities and accruals | $ 77.1 | $ 84.8 | |
Non insurance segment operating expenses | $ 35.2 | $ 31.2 | $ 23.3 |
Supplemental Unaudited Quart147
Supplemental Unaudited Quarterly Financial Information Summarized Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 430.3 | $ 437.1 | $ 422 | $ 405.4 | $ 440.4 | $ 414.4 | $ 413.1 | $ 399 | $ 1,694.8 | $ 1,666.9 | $ 1,707.6 |
Benefits and expenses | 453 | 464.2 | 456.8 | 480.1 | 542.2 | 434 | 454.5 | 431.4 | 1,854.1 | 1,862.1 | 1,669.5 |
Income tax expense (benefit) | (2.1) | (17) | (13) | (2.2) | 32.3 | 2.6 | (19.6) | (4.8) | (34.3) | 10.5 | 8.5 |
Income (loss) from continuing operations | (20.6) | (10.1) | (21.8) | (72.5) | (134.1) | (22.2) | (21.8) | (27.6) | |||
Income (loss) from discontinued operations, net of income taxes | (0.8) | (0.1) | (0.6) | (0.5) | (2) | (0.3) | (0.6) | (0.6) | |||
Net income (loss) | (21.4) | (10.2) | (22.4) | (73) | (136.1) | (22.5) | (22.4) | (28.2) | (127) | (209.2) | 26.7 |
Less: Income (loss) attributable to noncontrolling interests | 0 | 5.5 | 0.2 | 1 | 4.2 | (0.1) | 0 | (0.1) | 6.7 | 4 | 0.7 |
Net income (loss) attributable to The Phoenix Companies, Inc. | $ (21.4) | $ (15.7) | $ (22.6) | $ (74) | $ (140.3) | $ (22.4) | $ (22.4) | $ (28.1) | $ (133.7) | $ (213.2) | $ 26 |
Net income (loss) attributable to The Phoenix Companies, Inc. – basic (USD per share) | $ (3.72) | $ (2.73) | $ (3.93) | $ (12.87) | $ (24.40) | $ (23.25) | $ (37.09) | $ 4.53 | |||
Net income (loss) attributable to The Phoenix Companies, Inc. – diluted (USD per share) | $ (3.72) | $ (2.73) | $ (3.93) | $ (12.87) | $ (24.40) | $ (3.90) | $ (3.90) | $ (4.89) | $ (23.25) | $ (37.09) | $ 4.51 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Mar. 10, 2016 | Feb. 26, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Mar. 04, 2016 | Jan. 07, 2016 | Dec. 31, 2001 |
PHL Variable Insurance Company | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Capital contributions to subsidiaries | $ 23.1 | ||||||
Phoenix Life Insurance Company | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared to Phoenix | $ 30 | $ 59.9 | |||||
Phoenix Life Insurance Company | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared to Phoenix | $ 20 | ||||||
Unsecured Debt | 7.45% senior unsecured bonds, due 2032 | |||||||
Subsequent Event [Line Items] | |||||||
Stated interest rate | 7.45% | ||||||
Unsecured Debt | 7.45% senior unsecured bonds, due 2032 | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Stated interest rate | 7.45% | ||||||
Debt instrument, consent solicitation, percentage of debt outstanding | 72.90% |