Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 14, 2016 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ANTM | |
Entity Registrant Name | Anthem, Inc. | |
Entity Central Index Key | 1,156,039 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 262,840,916 | 262,953,003 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,676 | $ 2,113.5 |
Investments available-for-sale, at fair value: | ||
Fixed maturity securities (amortized cost of $18,057.2 and $16,950.0) | 18,355.4 | 16,920 |
Equity securities (cost of $1,269.1 and $1,055.8) | 1,593.8 | 1,441.8 |
Other invested assets, current | 19.4 | 19.1 |
Accrued investment income | 171.8 | 170.8 |
Premium and self-funded receivables | 4,998.4 | 4,602.8 |
Other receivables | 2,200.9 | 2,421.4 |
Income taxes receivable | 0 | 316.6 |
Securities lending collateral | 1,455.2 | 1,300.4 |
Other current assets | 2,494.1 | 1,555.7 |
Total current assets | 32,965 | 30,862.1 |
Long-term investments available-for-sale, at fair value: | ||
Fixed maturity securities (amortized cost of $494.6 and $550.4) | 507.8 | 558.2 |
Equity securities (cost of $27.0 and $27.3) | 29.7 | 31 |
Other invested assets, long-term | 2,078.3 | 2,041.1 |
Property and equipment, net | 1,998.3 | 2,019.8 |
Goodwill | 17,562.2 | 17,562.2 |
Other intangible assets | 8,107.6 | 8,158 |
Other noncurrent assets | 609.8 | 485.4 |
Total assets | 63,858.7 | 61,717.8 |
Liabilities and shareholders' equity | ||
Medical claims payable | 7,403.1 | 7,569.8 |
Reserves for future policy benefits | 69.6 | 71.9 |
Other policyholder liabilities | 2,376.7 | 2,256.5 |
Total policy liabilities | 9,849.4 | 9,898.2 |
Unearned income | 1,021.3 | 1,145.5 |
Accounts payable and accrued expenses | 4,164.5 | 3,318.8 |
Income taxes payable | 163.5 | 0 |
Security trades pending payable | 333.2 | 73.1 |
Securities lending payable | 1,455.3 | 1,300.9 |
Short-term borrowings | 540 | 540 |
Current portion of long-term debt | 399.2 | 0 |
Other current liabilities | 2,883.9 | 2,816.1 |
Total current liabilities | 20,810.3 | 19,092.6 |
Long-term debt, less current portion | 14,864.5 | 15,324.5 |
Reserves for future policy benefits, noncurrent | 653.3 | 631.7 |
Deferred tax liabilities, net | 2,663.6 | 2,630.6 |
Other noncurrent liabilities | 1,319.9 | 994.3 |
Total liabilities | $ 40,311.6 | $ 38,673.7 |
Commitment and contingencies – Note 10 | ||
Shareholders' equity | ||
Preferred stock, without par value, shares authorized – 100,000,000; shares issued and outstanding – none | $ 0 | $ 0 |
Common stock, par value $0.01, shares authorized – 900,000,000; shares issued and outstanding – 262,840,916 and 261,238,188 | 2.6 | 2.6 |
Additional paid-in capital | 8,616.5 | 8,555.6 |
Retained earnings | 15,310.4 | 14,778.5 |
Accumulated other comprehensive loss | (382.4) | (292.6) |
Total shareholders' equity | 23,547.1 | 23,044.1 |
Total liabilities and shareholders' equity | $ 63,858.7 | $ 61,717.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Available-for-sale fixed maturity securities investments, current, amortized cost | $ 18,057.2 | $ 16,950 |
Available-for-sale equity securities investments, current, cost | 1,269.1 | 1,055.8 |
Available-for-sale fixed maturity securities investments, long-term, amortized cost | 494.6 | 550.4 |
Available-for-sale equity securities investments, long-term, cost | $ 27 | $ 27.3 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 262,840,916 | 261,238,188 |
Common stock, shares outstanding | 262,840,916 | 261,238,188 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Premiums | $ 18,988.9 | $ 17,610.5 |
Administrative fees | 1,311 | 1,227.1 |
Other revenue | 9.5 | 13.8 |
Total operating revenue | 20,309.4 | 18,851.4 |
Net investment income | 171.1 | 167.6 |
Net realized (losses) gains on investments | (125.1) | 46.5 |
Other-than-temporary impairment losses on investments: | ||
Total other-than-temporary impairment losses on investments | (85.2) | (15.4) |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | 18.3 | 1.4 |
Other-than-temporary impairment losses recognized in income | (66.9) | (14) |
Total revenues | 20,288.5 | 19,051.5 |
Expenses | ||
Benefit expense | 15,538.8 | 14,126.9 |
Selling, general and administrative expense: | ||
Selling expense | 349.9 | 368.2 |
General and administrative expense | 2,850.3 | 2,777 |
Total selling, general and administrative expense | 3,200.2 | 3,145.2 |
Interest expense | 187.1 | 154.4 |
Amortization of other intangible assets | 50.4 | 52.5 |
Loss on extinguishment of debt | 0 | 3.4 |
Total expenses | 18,976.5 | 17,482.4 |
Income before income tax expense | 1,312 | 1,569.1 |
Income tax expense | 609 | 703.9 |
Net income | $ 703 | $ 865.2 |
Net income per share | ||
Basic net income per share | $ 2.69 | $ 3.25 |
Diluted net income per share | 2.63 | 3.09 |
Dividends per share | $ 0.650 | $ 0.625 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 703 | $ 865.2 |
Other comprehensive (loss) income, net of tax: | ||
Change in net unrealized gains/losses on investments | 172.3 | 60.4 |
Change in non-credit component of other-than-temporary impairment losses on investments | (1.7) | 3.5 |
Change in net unrealized gains/losses on cash flow hedges | (265.5) | 0.9 |
Change in net periodic pension and postretirement costs | 3.8 | 4.7 |
Foreign currency translation adjustments | 1.3 | (3.5) |
Other comprehensive (loss) income | (89.8) | 66 |
Total comprehensive income | $ 613.2 | $ 931.2 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net income | $ 703 | $ 865.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized (losses) gains on investments | 125.1 | (46.5) |
Other-than-temporary impairment losses recognized in income | 66.9 | 14 |
Loss on extinguishment of debt | 0 | 3.4 |
Loss on disposal of assets | 0.2 | 0.9 |
Deferred income taxes | 73.3 | 70.6 |
Amortization, net of accretion | 199.7 | 189.2 |
Depreciation expense | 25.6 | 25.1 |
Share-based compensation | 37.6 | 27.1 |
Excess tax benefits from share-based compensation | (39.8) | (68.8) |
Changes in operating assets and liabilities: | ||
Receivables, net | (170.5) | (429.6) |
Other invested assets | (5.3) | (10.1) |
Other assets | (117.4) | (191) |
Policy liabilities | (27.2) | 382.9 |
Unearned income | (124.2) | (31.8) |
Accounts payable and accrued expenses | 10.8 | (189.4) |
Other liabilities | 39.5 | 401.1 |
Income taxes | 507.7 | 635 |
Other, net | (0.7) | 3.2 |
Net cash provided by operating activities | 1,304.3 | 1,650.5 |
Investing activities | ||
Purchases of fixed maturity securities | (3,287.1) | (3,273.3) |
Proceeds from fixed maturity securities: | ||
Sales | 2,507 | 2,065 |
Maturities, calls and redemptions | 249.3 | 270.4 |
Purchases of equity securities | (747.1) | (1,051.5) |
Proceeds from sales of equity securities | 206.5 | 575.5 |
Purchases of other invested assets | (146.4) | (48.1) |
Proceeds from sales of other invested assets | 99.3 | 15 |
Settlement of non-hedging derivatives | (0.6) | (32) |
Changes in securities lending collateral | (154.4) | (508) |
Purchase of subsidiary, net of cash acquired | 0 | (635.8) |
Purchases of property and equipment | (117.5) | (88.8) |
Net cash used in investing activities | (1,391) | (2,711.6) |
Financing activities | ||
Net (repayments of) proceeds from commercial paper borrowings | (77.3) | 638.8 |
Repayments of long-term borrowings | 0 | (16.4) |
Proceeds from short-term borrowings | 980 | 850 |
Repayments of short-term borrowings | (980) | (800) |
Changes in securities lending payable | 154.4 | 508.1 |
Changes in bank overdrafts | (113.2) | (105.9) |
Premiums paid on equity call options | 0 | (12.8) |
Proceeds from sale of put options | 0 | 12.7 |
Repurchase and retirement of common stock | 0 | (774.1) |
Collateral payments for debt-related derivatives | (237.1) | 0 |
Cash dividends | (170.7) | (166.6) |
Proceeds from issuance of common stock under employee stock plans | 50.9 | 109.3 |
Excess tax benefits from share-based compensation | 39.8 | 68.8 |
Net cash (used in) provided by financing activities | (353.2) | 311.9 |
Effect of foreign exchange rates on cash and cash equivalents | 2.4 | (5.5) |
Change in cash and cash equivalents | (437.5) | (754.7) |
Cash and cash equivalents at beginning of period | 2,113.5 | 2,151.7 |
Cash and cash equivalents at end of period | $ 1,676 | $ 1,397 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Balance at Dec. 31, 2014 | $ 24,251.3 | $ 2.7 | $ 10,062.3 | $ 14,014.4 | $ 171.9 |
Balance (in shares) at Dec. 31, 2014 | 268.1 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 865.2 | 865.2 | |||
Other comprehensive income (loss) | 66 | 66 | |||
Premiums paid on equity options | $ (12.8) | (12.8) | |||
Repurchase and retirement of common stock, shares | (5.7) | (5.7) | |||
Repurchase and retirement of common stock, value | $ (774.1) | $ (0.1) | (212.4) | (561.6) | |
Dividends and dividend equivalents | (167.9) | (167.9) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 2.5 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 106.6 | 106.6 | |||
Balance at Mar. 31, 2015 | 24,334.3 | $ 2.6 | 9,943.7 | 14,150.1 | 237.9 |
Balance (in shares) at Mar. 31, 2015 | 264.9 | ||||
Balance at Dec. 31, 2015 | 23,044.1 | $ 2.6 | 8,555.6 | 14,778.5 | (292.6) |
Balance (in shares) at Dec. 31, 2015 | 261.2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 703 | 703 | |||
Other comprehensive income (loss) | (89.8) | (89.8) | |||
Dividends and dividend equivalents | (171.1) | (171.1) | |||
Issuance of common stock under employee stock plans, net of related tax benefits, Shares | 1.6 | ||||
Issuance of common stock under employee stock plans, net of related tax benefits | 60.6 | 60.6 | |||
Equity Units issuance costs | 0.3 | 0.3 | |||
Balance at Mar. 31, 2016 | $ 23,547.1 | $ 2.6 | $ 8,616.5 | $ 15,310.4 | $ (382.4) |
Balance (in shares) at Mar. 31, 2016 | 262.8 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization References to the terms “we”, “our”, “us”, “Anthem” or the “Company” used throughout these Notes to Consolidated Financial Statements refer to Anthem, Inc., an Indiana corporation, and unless the context otherwise requires, its direct and indirect subsidiaries. We are one of the largest health benefits companies in terms of medical membership in the United States, serving 39.6 medical members through our affiliated health plans as of March 31, 2016 . We offer a broad spectrum of network-based managed care plans to large and small employer, individual, Medicaid and Medicare markets. Our managed care plans include: preferred provider organizations, or PPOs; health maintenance organizations, or HMOs; point-of-service, or POS, plans; traditional indemnity plans and other hybrid plans, including consumer-driven health plans, or CDHPs; and hospital only and limited benefit products. In addition, we provide a broad array of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services. We provide an array of specialty and other insurance products and services such as dental, vision, life and disability insurance benefits, radiology benefit management and analytics-driven personal health care. We also provide services to the federal government in connection with the Federal Employee Program, or FEP. We are an independent licensee of the Blue Cross and Blue Shield Association, or BCBSA, an association of independent health benefit plans. We serve our members as the Blue Cross licensee for California and as the Blue Cross and Blue Shield, or BCBS, licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as BCBS in 10 New York City metropolitan and surrounding counties, and as Blue Cross or BCBS in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.) and Wisconsin. In a majority of these service areas we do business as Anthem Blue Cross, Anthem Blue Cross and Blue Shield, Blue Cross and Blue Shield of Georgia, and Empire Blue Cross Blue Shield, or Empire Blue Cross (in our New York service areas). We also conduct business through an arrangement with another BCBS licensee in South Carolina. We conduct business through our AMERIGROUP Corporation, or Amerigroup, subsidiary, in Florida, Georgia, Iowa, Kansas, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, Tennessee, Texas and Washington. In addition, we conduct business through our Simply Healthcare Holdings, Inc., or Simply Healthcare, subsidiary in Florida. We also serve customers throughout the country as HealthLink, UniCare (including a non-risk arrangement with Massachusetts), and in certain Arizona, California, Nevada and Virginia markets through our CareMore Health Group, Inc., or CareMore, subsidiary. We are licensed to conduct insurance operations in all 50 states through our subsidiaries. |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our 2015 Annual Report on Form 10-K, unless the information contained in those disclosures materially changed or is required by GAAP. Certain prior year amounts have been reclassified to conform to the current year presentation. In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three months ended March 31, 2016 and 2015 have been recorded. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016 . These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2015 included in our 2015 Annual Report on Form 10-K. Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S. dollar, or USD. We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period. We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period. The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income. Additionally, we control a number of bank accounts that are used exclusively to hold customer funds for the administration of customer benefits. At March 31, 2016 and December 31, 2015 , we held $113.2 and $122.6 , respectively, of customer funds with an offsetting liability in other current liabilities. Recently Adopted Accounting Guidance: In April 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , or ASU 2015-05. This amendment provides guidance to help entities determine whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software or as a service contract. ASU 2015-05 became effective January 1, 2016 and we elected to adopt the provisions of the new guidance prospectively to all arrangements entered into or materially modified on or after January 1, 2016. The adoption of ASU 2015-05 did not have an impact on our consolidated financial position, results of operations or cash flows. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , or ASU 2015-02. ASU 2015-02 amended the consolidation guidance by modifying the evaluation criteria for whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affecting the consolidation analysis of reporting entities that are involved with variable interest entities. We adopted the provisions of ASU 2015-02 effective January 1, 2016 and re-evaluated all legal entity investments under the revised consolidation model. The adoption of ASU 2015-02 did not have a material impact on our consolidated financial position, results of operations or cash flows. Recent Accounting Guidance Not Yet Adopted: In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , or ASU 2016-10. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross verses Net) , or ASU 2016-08. These amendments provide additional clarification and implementation guidance on the previously issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) , or ASU 2014-09. The amendments in ASU 2016-10 provide clarifying guidance on materiality of performance obligations; evaluating distinct performance obligations; treatment of shipping and handling costs; and determining whether an entity's promise to grant a license provides a customer with either a right to use an entity's intellectual property or a right to access an entity's intellectual property. The amendments in ASU 2016-08 clarify how an entity should identify the specified good or service for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. The adoption of ASU 2016-10 and ASU 2016-08 is to coincide with an entity's adoption of ASU 2014-09, which we intend to adopt for interim and annual reporting periods beginning after December 15, 2017. We are currently evaluating the impact that these standards will have on our results of operations, cash flows, consolidated financial position and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , or ASU 2016-09. The amendments in this update simplify several aspects of accounting for and reporting on share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in ASU 2016-09 are effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The various amendments are to be applied differently upon adoption with certain amendments being applied prospectively, retrospectively and under a modified retrospective transition method. We are currently evaluating the effects the adoption of ASU 2016-09 will have on our consolidated financial statements, results of operations and cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) , or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in Topic 840, Leases . Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. We are currently evaluating the effects the adoption of ASU 2016-02 will have on our consolidated financial statements, results of operations and cash flows. There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2015 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations or cash flows. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Pending Acquisition of Cigna Corporation On July 24, 2015, we and Cigna Corporation, or Cigna, announced that we entered into an Agreement and Plan of Merger, or Merger Agreement, dated as of July 23, 2015, by and among Anthem, Cigna and Anthem Merger Sub Corp., a Delaware corporation and our direct wholly-owned subsidiary, pursuant to which we will acquire all outstanding shares of Cigna, or the Acquisition. The Acquisition will further our goal of creating a premier health benefits company with critical diversification and scale to lead the transformation of health care delivery for consumers. Cigna is a global health services organization that delivers affordable and personalized products and services to customers through employer-based, government-sponsored and individual coverage arrangements. All of Cigna's products and services are provided exclusively by or through its operating subsidiaries, including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America and Cigna Life Insurance Company of New York. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products including group life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions. Under the terms of the Merger Agreement, Cigna’s shareholders will receive $103.40 in cash and 0.5152 shares of our common stock for each Cigna common share outstanding. The value of the transaction is estimated to be approximately $53,000.0 based on the closing price of our common stock on the New York Stock Exchange on July 23, 2015. The final purchase price will be determined based on our closing stock price on the date of closing of the Acquisition. The combined company will reflect a pro forma equity ownership comprised of approximately 67% Anthem shareholders and approximately 33% Cigna shareholders. We expect to finance the cash portion of the Acquisition through available cash on hand and the issuance of new debt. We entered into a bridge facility commitment letter and a joinder agreement with a group of lenders which will provide up to $22,500.0 under a 364 -day senior unsecured bridge term loan credit facility to finance the Acquisition in the event that we have not received proceeds from any combination of (i) senior unsecured term loans, (ii) common or preferred equity or equity-linked securities and/or (iii) senior unsecured notes in a public offering or private placement in an aggregate principal amount of at least $22,500.0 prior to the consummation of the Acquisition. In addition, in August 2015, we entered into a term loan facility which will provide up to $4,000.0 to finance a portion of the Acquisition. The commitment of the lenders to provide the bridge facility and the term loan facility is subject to several conditions, including the completion of the Acquisition. Acquisition of Simply Healthcare On February 17, 2015, we completed our acquisition of Simply Healthcare, a leading managed care company for people enrolled in Medicaid and Medicare programs in Florida. The excess of the consideration transferred over the fair value of net assets acquired resulted in non-tax-deductible goodwill of $474.7 . There were no additional measurement period adjustments to the provisional amounts recorded at December 31, 2015. The results of operations of Simply Healthcare are included in our consolidated financial statements within our Government Business segment for the periods following February 17, 2015. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2016 | |
Investments [Abstract] | |
Investments | Investments We evaluate our investment securities for other-than-temporary declines based on qualitative and quantitative factors. Other-than-temporary impairment losses recognized in income totaled $66.9 and $14.0 for the three months ended March 31, 2016 and 2015 , respectively. There were no individually significant other-than-temporary impairment losses on investments by issuer during the three months ended March 31, 2016 and 2015 . We continue to review our investment portfolios under our impairment review policy. Given the inherent uncertainty of changes in market conditions and the significant judgments involved, there is a continuing risk that further declines in fair value may occur and additional material other-than-temporary impairment losses on investments may be recorded in future periods. A summary of current and long-term investments, available-for-sale, at March 31, 2016 and December 31, 2015 is as follows: Non-Credit Component of Other-Than- Cost or Gross Gross Unrealized Losses Estimated Less than 12 Months 12 Months or Greater March 31, 2016 Fixed maturity securities: United States Government securities $ 424.1 $ 8.3 $ — $ — $ 432.4 $ — Government sponsored securities 52.6 1.0 — — 53.6 — States, municipalities and political subdivisions, tax-exempt 5,904.3 327.6 (1.0 ) (5.9 ) 6,225.0 — Corporate securities 9,270.3 159.6 (116.0 ) (89.2 ) 9,224.7 (18.3 ) Residential mortgage-backed securities 1,780.4 49.5 (3.2 ) (7.0 ) 1,819.7 — Commercial mortgage-backed securities 358.2 2.8 (4.0 ) (0.5 ) 356.5 — Other debt securities 761.9 3.0 (9.8 ) (3.8 ) 751.3 — Total fixed maturity securities 18,551.8 551.8 (134.0 ) (106.4 ) 18,863.2 $ (18.3 ) Equity securities 1,296.1 356.2 (28.8 ) — 1,623.5 Total investments, available-for-sale $ 19,847.9 $ 908.0 $ (162.8 ) $ (106.4 ) $ 20,486.7 December 31, 2015 Fixed maturity securities: United States Government securities $ 349.5 $ 2.0 $ (1.6 ) $ — $ 349.9 $ — Government sponsored securities 75.6 0.5 (0.1 ) (0.1 ) 75.9 — States, municipalities and political subdivisions, tax-exempt 5,976.7 284.1 (4.0 ) (5.2 ) 6,251.6 — Corporate securities 8,209.7 61.1 (267.2 ) (110.5 ) 7,893.1 (15.4 ) Residential mortgage-backed securities 1,724.5 41.2 (7.6 ) (7.2 ) 1,750.9 — Commercial mortgage-backed securities 407.6 1.4 (4.3 ) (0.4 ) 404.3 — Other debt securities 756.8 4.1 (5.8 ) (2.6 ) 752.5 — Total fixed maturity securities 17,500.4 394.4 (290.6 ) (126.0 ) 17,478.2 $ (15.4 ) Equity securities 1,083.1 420.6 (30.9 ) — 1,472.8 Total investments, available-for-sale $ 18,583.5 $ 815.0 $ (321.5 ) $ (126.0 ) $ 18,951.0 At March 31, 2016 and December 31, 2015 , we held $727.4 and $777.2 , respectively, of energy sector fixed maturity securities within our available-for-sale investment portfolio. These energy sector securities had accumulated net unrealized losses at March 31, 2016 and December 31, 2015 of $78.6 and $172.0 , respectively. For available-for-sale securities in an unrealized loss position at March 31, 2016 and December 31, 2015 , the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: Less than 12 Months 12 Months or Greater (Securities are whole amounts) Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss March 31, 2016 Fixed maturity securities: United States Government securities 5 $ 64.3 $ — 2 $ 1.0 $ — Government sponsored securities 1 0.1 — 2 2.5 — States, municipalities and political subdivisions, tax-exempt 97 179.8 (1.0 ) 63 131.6 (5.9 ) Corporate securities 1,301 2,509.2 (116.0 ) 478 768.3 (89.2 ) Residential mortgage-backed securities 122 201.0 (3.2 ) 155 266.7 (7.0 ) Commercial mortgage-backed securities 45 143.4 (4.0 ) 18 39.4 (0.5 ) Other debt securities 159 452.5 (9.8 ) 34 86.6 (3.8 ) Total fixed maturity securities 1,730 3,550.3 (134.0 ) 752 1,296.1 (106.4 ) Equity securities 862 265.9 (28.8 ) 2 — — Total fixed maturity and equity securities 2,592 $ 3,816.2 $ (162.8 ) 754 $ 1,296.1 $ (106.4 ) December 31, 2015 Fixed maturity securities: United States Government securities 48 $ 248.4 $ (1.6 ) 2 $ 0.9 $ — Government sponsored securities 13 18.3 (0.1 ) 6 8.2 (0.1 ) States, municipalities and political subdivisions, tax-exempt 198 467.8 (4.0 ) 43 83.0 (5.2 ) Corporate securities 2,492 4,912.3 (267.2 ) 372 447.0 (110.5 ) Residential mortgage-backed securities 298 668.3 (7.6 ) 119 186.3 (7.2 ) Commercial mortgage-backed securities 66 263.0 (4.3 ) 17 38.5 (0.4 ) Other debt securities 153 488.2 (5.8 ) 28 77.0 (2.6 ) Total fixed maturity securities 3,268 7,066.3 (290.6 ) 587 840.9 (126.0 ) Equity securities 792 261.1 (30.9 ) — — — Total fixed maturity and equity securities 4,060 $ 7,327.4 $ (321.5 ) 587 $ 840.9 $ (126.0 ) The amortized cost and fair value of available-for-sale fixed maturity securities at March 31, 2016 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations. Amortized Cost Estimated Fair Value Due in one year or less $ 353.6 $ 355.4 Due after one year through five years 4,997.4 5,001.0 Due after five years through ten years 5,398.9 5,536.7 Due after ten years 5,663.3 5,793.9 Mortgage-backed securities 2,138.6 2,176.2 Total available-for-sale fixed maturity securities $ 18,551.8 $ 18,863.2 Proceeds from fixed maturity securities, equity securities and other invested assets and the related gross realized gains and gross realized losses for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended 2016 2015 Proceeds $ 3,062.1 $ 2,925.9 Gross realized gains 121.4 133.7 Gross realized losses (92.7 ) (87.2 ) In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to: (i) changes in the investment environment; (ii) expectation that the fair value could deteriorate further; (iii) desire to reduce exposure to an issuer or an industry; (iv) changes in credit quality; or (v) changes in expected cash flow. All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold. Securities Lending Programs We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. The fair value of the collateral received at the time of the transactions amounted to $1,455.3 and $1,300.9 at March 31, 2016 and December 31, 2015 , respectively. The value of the collateral represented 103% of the market value of the securities on loan at March 31, 2016 and December 31, 2015 . Under FASB guidance related to accounting for transfers and servicing of financial assets and extinguishments of liabilities, we recognize the collateral as an asset, which is reported as “Securities lending collateral” on our consolidated balance sheets and we record a corresponding liability for the obligation to return the collateral to the borrower, which is reported as “Securities lending payable.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets. Unrealized gains or losses on securities lending collateral are included in accumulated other comprehensive income as a separate component of shareholders’ equity. The remaining contractual maturity of our securities lending agreements at March 31, 2016 is as follows: Overnight and Continuous Less than 30 days 30-90 days Greater Than 90 days Total Securities lending transactions United States Government securities $ 58.1 $ 0.5 $ 20.5 $ 94.7 $ 173.8 Corporate securities 852.4 — — — 852.4 Equity securities 323.5 — 0.1 0.7 324.3 Other debt securities 104.8 — — — 104.8 Total $ 1,338.8 $ 0.5 $ 20.6 $ 95.4 $ 1,455.3 The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities' value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments. |
Derivative Financial Instrument
Derivative Financial Instruments Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We primarily invest in the following types of derivative financial instruments: interest rate swaps, forward contracts, put and call options, swaptions, embedded derivatives and warrants. We also enter into master netting agreements which reduce credit risk by permitting net settlement of transactions. At March 31, 2016 we had posted collateral of $327.6 and received collateral of $46.8 related to our derivative financial instruments. A summary of the aggregate contractual or notional amounts and estimated fair values related to derivative financial instruments at March 31, 2016 and December 31, 2015 is as follows: Contractual/ Notional Amount Balance Sheet Location Estimated Fair Value Asset (Liability) March 31, 2016 Hedging instruments Interest rate swaps - fixed to floating $ 1,385.0 Other assets/other liabilities $ 17.8 $ — Interest rate swaps - forward starting pay fixed 5,000.0 Other assets/other liabilities — (484.9 ) Subtotal hedging 6,385.0 Subtotal hedging 17.8 (484.9 ) Non-hedging instruments Interest rate swaps 324.0 Equity securities — (20.5 ) Options 19,107.7 Other assets/other liabilities 269.2 (355.1 ) Futures 142.2 Equity securities 0.3 (0.3 ) Subtotal non-hedging 19,573.9 Subtotal non-hedging 269.5 (375.9 ) Total derivatives $ 25,958.9 Total derivatives 287.3 (860.8 ) Amounts netted (136.1 ) 136.1 Net derivatives $ 151.2 $ (724.7 ) December 31, 2015 Hedging instruments Interest rate swaps - fixed to floating $ 1,385.0 Other assets/other liabilities $ 7.0 $ (0.8 ) Interest rate swaps - forward starting pay fixed 4,650.0 Other assets/other liabilities 15.7 (90.9 ) Subtotal hedging 6,035.0 Subtotal hedging 22.7 (91.7 ) Non-hedging instruments Interest rate swaps 271.7 Equity securities 1.2 (6.0 ) Options 16,917.4 Other assets/other liabilities 305.7 (332.1 ) Futures 152.0 Equity securities 0.1 (0.2 ) Subtotal non-hedging 17,341.1 Subtotal non-hedging 307.0 (338.3 ) Total derivatives $ 23,376.1 Total derivatives 329.7 (430.0 ) Amounts netted (170.6 ) 170.6 Net derivatives $ 159.1 $ (259.4 ) Fair Value Hedges We have entered into various interest rate swap contracts to convert a portion of our interest rate exposure on our long-term debt from fixed rates to floating rates. The floating rates payable on all of our fair value hedges are benchmarked to LIBOR. A summary of our outstanding fair value hedges at March 31, 2016 and December 31, 2015 is as follows: Type of Fair Value Hedges Year Entered Into Outstanding Notional Amount Interest Rate Received Expiration Date March 31, 2016 December 31, 2015 Interest rate swap 2015 $ 200.0 $ 200.0 4.350 % August 15, 2020 Interest rate swap 2014 150.0 150.0 4.350 August 15, 2020 Interest rate swap 2013 10.0 10.0 4.350 August 15, 2020 Interest rate swap 2012 200.0 200.0 4.350 August 15, 2020 Interest rate swap 2012 625.0 625.0 1.875 January 15, 2018 Interest rate swap 2012 200.0 200.0 2.375 February 15, 2017 Total notional amount outstanding $ 1,385.0 $ 1,385.0 A summary of the effect of fair value hedges on our income statement for the three months ended March 31, 2016 and 2015 is as follows: Type of Fair Value Hedges Income Statement Location of Hedge Gain Hedge Gain Recognized Hedged Item Income Statement Location of Hedged Item Loss Hedged Item Loss Recognized Three months ended March 31, 2016 Interest rate swaps Interest expense $ 2.4 Fixed rate debt Interest expense $ (2.4 ) Three months ended March 31, 2015 Interest rate swaps Interest expense $ 2.8 Fixed rate debt Interest expense $ (2.8 ) Cash Flow Hedges We have entered into a series of forward starting pay fixed interest rate swaps in the notional amount of $5,000.0, with the objective of eliminating the variability of cash flows in the interest payments on anticipated future financings. We had $5,000.0 and $ 4,650.0 outstanding under these swaps at March 31, 2016 and December 31, 2015, respectively. The unrecognized loss for all outstanding and terminated cash flow hedges included in accumulated other comprehensive income, net of tax, was $346.5 and $ 81.1 at March 31, 2016 and December 31, 2015 , respectively. As of March 31, 2016 , the total amount of amortization over the next twelve months for all cash flow hedges will increase interest expense by approximately $14.3 . A summary of the effect of cash flow hedges on our financial statements for the three months ended March 31, 2016 and 2015 is as follows: Effective Portion Pretax Hedge Income Statement Hedge Loss Ineffective Portion Type of Cash Flow Hedge Income Statement Location of Loss Recognized Hedge Loss Recognized Three months ended March 31, 2016 Forward starting pay fixed swaps $ (409.8 ) Interest expense $ (1.4 ) None $ — Three months ended March 31, 2015 Forward starting pay fixed swaps $ — Interest expense $ (1.4 ) None $ — We test for cash flow hedge effectiveness at hedge inception and re-assess at the end of each reporting period. No amounts were excluded from the assessment of hedge effectiveness. Non-Hedging Derivatives A summary of the effect of non-hedging derivatives on our income statement for the three months ended March 31, 2016 and 2015 is as follows: Type of Non-hedging Derivatives Income Statement Location of Gain (Loss) Recognized Derivative Gain (Loss) Recognized Three months ended March 31, 2016 Interest rate swaps Net realized (losses) gains on investments $ (16.9 ) Options Net realized (losses) gains on investments (136.4 ) Futures Net realized (losses) gains on investments (0.5 ) Total $ (153.8 ) Three months ended March 31, 2015 Derivatives embedded in convertible fixed maturity securities Net realized (losses) gains on investments $ (23.0 ) Interest rate swaps Net realized (losses) gains on investments (4.6 ) Options Net realized (losses) gains on investments 7.2 Futures Net realized (losses) gains on investments (1.6 ) Total $ (22.0 ) |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by FASB guidance for fair value measurements and disclosures, are as follows: Level Input Input Definition Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following methods, assumptions and inputs were used to determine the fair value of each class of the following assets and liabilities recorded at fair value in the consolidated balance sheets: Cash equivalents: Cash equivalents primarily consist of highly rated money market funds with maturities of three months or less and are purchased daily at par value with specified yield rates. Due to the high ratings and short-term nature of the funds, we designate all cash equivalents as Level I. Fixed maturity securities, available-for-sale: Fair values of available-for-sale fixed maturity securities are based on quoted market prices, where available. These fair values are obtained primarily from third party pricing services, which generally use Level I or Level II inputs for the determination of fair value to facilitate fair value measurements and disclosures. Level I securities primarily include United States Government securities, certain corporate securities and certain other asset backed securities. Level II securities primarily include corporate securities, securities from states, municipalities and political subdivisions, mortgage-backed securities and certain other asset backed securities. For securities not actively traded, the pricing services may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. We have controls in place to review the pricing services’ qualifications and procedures used to determine fair values. In addition, we periodically review the pricing services’ pricing methodologies, data sources and pricing inputs to ensure the fair values obtained are reasonable. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates and prepayment speeds. We also have certain fixed maturity securities, primarily corporate debt securities, that are designated Level III securities. For these securities, the valuation methodologies may incorporate broker quotes or discounted cash flow analyses using assumptions for inputs such as expected cash flows, benchmark yields, credit spreads, default rates and prepayment speeds that are not observable in the markets. Equity securities, available-for-sale: Fair values of equity securities are generally designated as Level I and are based on quoted market prices. For certain equity securities, quoted market prices for the identical security are not always available and the fair value is estimated by reference to similar securities for which quoted prices are available. These securities are designated Level II. We also have certain equity securities, including private equity securities, for which the fair value is estimated based on each security’s current condition and future cash flow projections. Such securities are designated Level III. The fair values of these private equity securities are generally based on either broker quotes or discounted cash flow projections using assumptions for inputs such as the weighted-average cost of capital, long-term revenue growth rates and earnings before interest, taxes, depreciation and amortization, or EBITDA, and/or revenue multiples that are not observable in the markets. Other invested assets, current: Other invested assets, current include securities held in rabbi trusts that are classified as trading. These securities are designated Level I securities as fair values are based on quoted market prices. Securities lending collateral: Fair values of securities lending collateral are based on quoted market prices, where available. These fair values are obtained primarily from third party pricing services, which generally use Level I or Level II inputs for the determination of fair value, to facilitate fair value measurements and disclosures. Derivatives: Fair values are based on the quoted market prices by the financial institution that is the counterparty to the derivative transaction. We independently verify prices provided by the counterparties using valuation models that incorporate market observable inputs for similar derivative transactions. Derivatives are designated as Level II securities. Derivatives presented within the fair value hierarchy table below are presented on a gross basis and not on a master netting basis by counterparty. A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 is as follows: Level I Level II Level III Total March 31, 2016 Assets: Cash equivalents $ 666.1 $ — $ — $ 666.1 Investments available-for-sale: Fixed maturity securities: United States Government securities 432.4 — — 432.4 Government sponsored securities — 53.6 — 53.6 States, municipalities and political subdivisions, tax-exempt — 6,225.0 — 6,225.0 Corporate securities 223.8 8,768.7 232.2 9,224.7 Residential mortgage-backed securities — 1,819.7 — 1,819.7 Commercial mortgage-backed securities — 356.5 — 356.5 Other debt securities 56.7 659.8 34.8 751.3 Total fixed maturity securities 712.9 17,883.3 267.0 18,863.2 Equity securities 1,386.0 93.0 144.5 1,623.5 Other invested assets, current 19.4 — — 19.4 Securities lending collateral 874.0 581.3 — 1,455.3 Derivatives (reported with other assets) — 287.3 — 287.3 Total assets $ 3,658.4 $ 18,844.9 $ 411.5 $ 22,914.8 Liabilities: Derivatives (reported with other liabilities) $ — $ (860.8 ) $ — $ (860.8 ) Total liabilities $ — $ (860.8 ) $ — $ (860.8 ) December 31, 2015 Assets: Cash equivalents $ 701.0 $ — $ — $ 701.0 Investments available-for-sale: Fixed maturity securities: United States Government securities 349.9 — — 349.9 Government sponsored securities — 75.9 — 75.9 States, municipalities and political subdivisions, tax-exempt — 6,251.6 — 6,251.6 Corporate securities 77.6 7,629.3 186.2 7,893.1 Residential mortgage-backed securities — 1,750.9 — 1,750.9 Commercial mortgage-backed securities — 402.4 1.9 404.3 Other debt securities 55.7 671.2 25.6 752.5 Total fixed maturity securities 483.2 16,781.3 213.7 17,478.2 Equity securities 1,253.8 116.9 102.1 1,472.8 Other invested assets, current 19.1 — — 19.1 Securities lending collateral 708.1 592.3 — 1,300.4 Derivatives (reported with other assets) — 329.7 — 329.7 Total assets $ 3,165.2 $ 17,820.2 $ 315.8 $ 21,301.2 Liabilities: Derivatives (reported with other liabilities) $ — $ (430.0 ) $ — $ (430.0 ) Total liabilities $ — $ (430.0 ) $ — $ (430.0 ) A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended March 31, 2016 and 2015 is as follows: Corporate Securities Commercial Mortgage- backed Securities Other Debt Securities Equity Securities Total Three Months Ended March 31, 2016 Beginning balance at January 1, 2016 $ 186.2 $ 1.9 $ 25.6 $ 102.1 $ 315.8 Total (losses) gains: Recognized in net income (0.9 ) — — 2.2 1.3 Recognized in accumulated other comprehensive income (1.5 ) — (0.4 ) (1.6 ) (3.5 ) Purchases 58.0 — — 44.2 102.2 Sales (1.0 ) — — (2.4 ) (3.4 ) Settlements (10.9 ) — — — (10.9 ) Transfers into Level III 2.3 — 9.6 — 11.9 Transfers out of Level III — (1.9 ) — — (1.9 ) Ending balance at March 31, 2016 $ 232.2 $ — $ 34.8 $ 144.5 $ 411.5 Change in unrealized losses included in net income related to assets still held for the three months ended March 31, 2016 $ (1.7 ) $ — $ — $ — $ (1.7 ) Three Months Ended March 31, 2015 Beginning balance at January 1, 2015 $ 144.6 $ 3.3 $ 6.6 $ 48.3 $ 202.8 Total (losses) gains: Recognized in net income (0.2 ) — 0.2 (0.8 ) (0.8 ) Recognized in accumulated other comprehensive income 1.6 — (0.2 ) 1.3 2.7 Purchases 32.4 — — 7.5 39.9 Sales — — (0.9 ) (4.5 ) (5.4 ) Settlements (13.6 ) (0.1 ) (0.1 ) — (13.8 ) Transfers into Level III 0.7 — — — 0.7 Transfers out of Level III — — (3.0 ) — (3.0 ) Ending balance at March 31, 2015 $ 165.5 $ 3.2 $ 2.6 $ 51.8 $ 223.1 Change in unrealized losses included in net income related to assets still held for the three months ended March 31, 2015 $ (0.6 ) $ — $ — $ (0.8 ) $ (1.4 ) Transfers between levels, if any, are recorded as of the beginning of the reporting period. There were no material transfers between levels during the three months ended March 31, 2016 or 2015 . Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. As disclosed in Note 3, “Business Acquisitions,” we completed our acquisition of Simply Healthcare on February 17, 2015. The values of net assets acquired in our acquisition of Simply Healthcare and resulting goodwill and other intangible assets were recorded at fair value primarily using Level III inputs. The majority of Simply Healthcare's assets acquired and liabilities assumed were recorded at their carrying values as of the respective date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in our acquisition of Simply Healthcare were internally estimated based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets could be expected to generate in the future. We developed internal estimates for the expected cash flows and discount rate in the present value calculation. Other than the assets acquired and liabilities assumed in our acquisition of Simply Healthcare described above, there were no other assets or liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2016 or 2015 . Our valuation policy is determined by members of our treasury and accounting departments. Whenever possible, our policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes or other valuation techniques. These techniques are significantly affected by our assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. Our valuation policy is generally to obtain only one quoted price for each security from third party pricing services, which are derived through recently reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. When broker quotes are used, we generally obtain only one broker quote per security. As we are responsible for the determination of fair value, we perform monthly analysis on the prices received from the pricing services to determine whether the prices are reasonable estimates of fair value. This analysis is performed by our internal treasury personnel who are familiar with our investment portfolios, the pricing services engaged and the valuation techniques and inputs used. Our analysis includes a review of month-to-month price fluctuations. If unusual fluctuations are noted in this review, we may obtain additional information from other pricing services to validate the quoted price. There were no adjustments to quoted market prices obtained from the pricing services during the three months ended March 31, 2016 or 2015 . In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets. Non-financial instruments such as real estate, property and equipment, other current assets, deferred income taxes, intangible assets and certain financial instruments, such as policy liabilities, are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value. The carrying amounts reported in the consolidated balance sheets for cash, accrued investment income, premium and self-funded receivables, other receivables, unearned income, accounts payable and accrued expenses, income taxes receivable/payable, security trades pending payable, securities lending payable and certain other current liabilities approximate fair value because of the short term nature of these items. These assets and liabilities are not listed in the table below. The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument that is recorded at its carrying value on the consolidated balance sheets: Other invested assets, long-term : Other invested assets, long-term include primarily our investments in limited partnerships, joint ventures and other non-controlled corporations, as well as the cash surrender value of corporate-owned life insurance policies. Investments in limited partnerships, joint ventures and other non-controlled corporations are carried at our share in the entities’ undistributed earnings, which approximates fair value. The carrying value of corporate-owned life insurance policies represents the cash surrender value as reported by the respective insurer, which approximates fair value. Short-term borrowings : The fair value of our short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices were available, on the current market interest rates estimated to be available to us for debt of similar terms and remaining maturities. Long-term debt – commercial paper: The carrying amount for commercial paper approximates fair value as the underlying instruments have variable interest rates at market value. Long-term debt – senior unsecured notes, remarketable subordinated notes and surplus notes : The fair values of our notes are based on quoted market prices in active markets for the same or similar debt, or, if no quoted market prices are available, on the current market observable rates estimated to be available to us for debt of similar terms and remaining maturities. Long-term debt – senior unsecured convertible debentures : The fair value of our convertible debentures is based on the market price in the active private market in which the convertible debentures trade. A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at March 31, 2016 and December 31, 2015 are as follows: Carrying Value Estimated Fair Value Level I Level II Level III Total March 31, 2016 Assets: Other invested assets, long-term $ 2,078.3 $ — $ — $ 2,078.3 $ 2,078.3 Liabilities: Debt: Short-term borrowings 540.0 — 540.0 — 540.0 Commercial paper 604.9 — 604.9 — 604.9 Notes 14,327.3 — 14,923.5 — 14,923.5 Convertible debentures 331.5 — 983.0 — 983.0 December 31, 2015 Assets: Other invested assets, long-term $ 2,041.1 $ — $ — $ 2,041.1 $ 2,041.1 Liabilities: Debt: Short-term borrowings 540.0 — 540.0 — 540.0 Commercial paper 682.2 — 682.2 — 682.2 Notes 14,311.6 — 14,523.2 — 14,523.2 Convertible debentures 330.7 — 980.1 — 980.1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended March 31, 2016 and 2015 , we recognized income tax expense of $609.0 and $703.9 , respectively, which represents effective tax rates of 46.4% and 44.9% , respectively. The decrease in income tax expense was primarily due to decreased income before income tax expense and the decrease to our portion of the non-tax deductible Health Insurance Provider Fee, or HIP Fee. For the three months ended March 31, 2016 and 2015 , the HIP Fee resulted in additional income tax expense of $104.1 and $113.3 , respectively. The increase in the effective tax rate was primarily due to the discrete tax adjustment in 2016 related to net realized investment losses, largely as a result of losses recognized on options entered into to hedge the variability of cash flows in the interest payments on anticipated future financings. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic (benefit credit) benefit cost included in the consolidated statements of income for the three months ended March 31, 2016 and 2015 are as follows: Pension Benefits Other Benefits Three Months Ended March 31 Three Months Ended 2016 2015 2016 2015 Service cost $ 2.8 $ 3.3 $ 0.4 $ 0.5 Interest cost 17.3 17.0 5.6 5.9 Expected return on assets (36.7 ) (35.7 ) (5.6 ) (5.9 ) Recognized actuarial loss 4.4 6.4 3.1 3.8 Settlement loss 2.4 1.3 — — Amortization of prior service credit (0.1 ) (0.2 ) (3.5 ) (3.6 ) Net periodic (benefit credit) benefit cost $ (9.9 ) $ (7.9 ) $ — $ 0.7 For the year ending December 31, 2016 , no material contributions are expected to be necessary to meet the Employee Retirement Income Security Act, or ERISA, required funding levels; however, we may elect to make discretionary contributions up to the maximum amount deductible for income tax purposes. No contributions were made to our retirement benefit plans during the three months ended March 31, 2016 or 2015 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt We generally issue senior unsecured notes for long-term borrowing purposes. At March 31, 2016 , we had $13,065.7 outstanding under these notes. On May 12, 2015, we issued 25.0 Equity Units, pursuant to an underwriting agreement dated May 6, 2015, in an aggregate principal amount of $1,250.0 . Each Equity Unit has a stated amount of $50 (whole dollars) and consists of a purchase contract obligating the holder to purchase a certain number of shares of our common stock on May 1, 2018, subject to earlier termination or settlement, for a price in cash of $50 (whole dollars); and a 5% undivided beneficial ownership interest in $1,000 (whole dollars) principal amount of our 1.900% remarketable subordinated notes, or RSNs, due 2028. On May 1, 2018, if the applicable market value of our common stock is equal to or greater than $207.805 per share, the settlement rate will be 0.2406 shares of our common stock. If the applicable market value of our common stock is less than $207.805 per share but greater than $143.865 per share, the settlement rate will be a number of shares of our common stock equal to $50 (whole dollars) divided by the applicable market value of our common stock. If the applicable market value of common stock is less than or equal to $143.865, the settlement rate will be 0.3476 shares of our common stock. Holders of the Equity Units may elect early settlement at a minimum settlement rate of 0.2406 shares of our common stock for each purchase contract being settled. The RSNs are pledged as collateral to secure the purchase of common stock under the related stock purchase contracts. Quarterly interest payments on the RSNs commenced August 1, 2015. The RSNs are scheduled to be remarketed during the five business day period ending on April 26, 2018 and may be remarketed earlier, at our election, during the period from January 30, 2018 through April 12, 2018. Following the re-marketing, the interest rate on the RSNs will be set to current market rates and interest will be payable semi-annually. At March 31, 2016 , the present value of the stock purchase contract liability was $92.3 and is included in other current liabilities and other noncurrent liabilities with a corresponding offset to additional paid-in capital in our consolidated balance sheet. Contract adjustment payments commenced on August 1, 2015 at a rate of 3.350% per annum on the stated amount per Equity Unit. Subject to certain specified terms and conditions, we have the right to defer payments on all or part the contract adjustment payments but not beyond the contract settlement date and we have the right to defer payment of interest on the RSNs but not beyond the purchase contract settlement date or maturity date. At March 31, 2016 , we have $1,236.7 outstanding under these RSNs. We have an unsecured surplus note with an outstanding principal balance of $24.9 at March 31, 2016 . We have a senior revolving credit facility, or the Facility, with a group of lenders for general corporate purposes. The Facility provides credit up to $3,500.0 and matures on August 25, 2020 . There were no amounts outstanding under the Facility at any time during the three months ended March 31, 2016 . We have an authorized commercial paper program of up to $2,500.0 , the proceeds of which may be used for general corporate purposes. At March 31, 2016 , we had $604.9 outstanding under this program. We have outstanding senior unsecured convertible debentures due 2042, or the Debentures, which are governed by an indenture between us and The Bank of New York Mellon Trust Company, N.A., as trustee. We have accounted for the Debentures in accordance with the cash conversion guidance in FASB guidance for debt with conversion and other options. As a result, the value of the embedded conversion option has been bifurcated from its debt host and recorded as a component of additional paid-in capital (net of deferred taxes and equity issuance costs) in our consolidated balance sheets. The following table summarizes at March 31, 2016 the related balances, conversion rate and conversion price of the Debentures: Outstanding principal amount $ 513.4 Unamortized debt discount $ 176.0 Net debt carrying amount $ 331.5 Equity component carrying amount $ 186.1 Conversion rate (shares of common stock per $1,000 of principal amount) 13.5254 Effective conversion price (per $1,000 of principal amount) $ 73.9342 We have $540.0 in outstanding short-term borrowings from various Federal Home Loan Banks, or FHLBs, at March 31, 2016 with fixed interest rates of 0.438% . During the year ended December 31, 2015, we entered into a bridge facility commitment letter and a joinder agreement, and a term loan facility, to finance a portion of the pending acquisition of Cigna. We paid $106.6 in fees in connection with the bridge facility which were capitalized in other current assets and are amortized as interest expense over the term of the facility. We recorded $31.6 of amortization of the bridge facility fees during the three months ended March 31, 2016. The commitment of the lenders to provide the bridge facility and term loan facility is subject to several conditions, including the completion of the Acquisition. For additional information, see the “ Pending Acquisition of Cigna Corporation ” section of Note 3, “Business Acquisitions.” All debt is a direct obligation of Anthem, Inc., except for the surplus note and the FHLB borrowings. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, we are defendants in, or parties to, a number of pending or threatened legal actions or proceedings. To the extent a plaintiff or plaintiffs in the following cases have specified in their complaint or in other court filings the amount of damages being sought, we have noted those alleged damages in the descriptions below. With respect to the cases described below, we contest liability and/or the amount of damages in each matter and believe we have meritorious defenses. We are defending a certified class action filed as a result of the 2001 demutualization of Anthem Insurance. The lawsuit names Anthem Insurance as well as Anthem, Inc. and is captioned Ronald Gold, et al. v. Anthem, Inc. et al. Anthem Insurance’s 2001 Plan of Conversion, or the Plan, provided for the conversion of Anthem Insurance from a mutual insurance company into a stock insurance company pursuant to Indiana law. Under the Plan, Anthem Insurance distributed the fair value of the company at the time of conversion to its Eligible Statutory Members, or ESMs, in the form of cash or Anthem common stock in exchange for their membership interests in the mutual company. Plaintiffs in Gold allege that Anthem Insurance distributed value to the wrong ESMs. A trial on liability was held in October 2014. In June 2015, the court entered judgment for Anthem Insurance on all issues, finding that (1) Anthem Insurance correctly determined the State of Connecticut to be an ESM, not Plaintiffs; (2) Anthem Insurance acted in good faith in making this determination, while Plaintiffs failed to present sufficient evidence to override a presumption that Anthem Insurance’s ESM determination was correct; and (3) Plaintiffs failed to prove the breach of any contractual obligation. In July 2015, Plaintiffs filed a notice of appeal from the judgment entered for Anthem Insurance. In December 2015, the Connecticut Supreme Court decided it would hear the appeal directly rather than the appeal going to the intermediate appellate court. A date for argument has not been set. We intend to vigorously seek the affirmation of the trial court's judgment; however, the suit's ultimate outcome cannot be presently determined. We are currently a defendant in eleven putative class actions relating to out-of-network, or OON, reimbursement that were consolidated into a single multi-district lawsuit called In re WellPoint, Inc. (n/k/a Anthem, Inc.) Out-of-Network “UCR” Rates Litigation that is pending in the United States District Court for the Central District of California. The lawsuits were filed in 2009. The plaintiffs include current and former members on behalf of a putative class of members who received OON services for which the defendants paid less than billed charges, the American Medical Association, four state medical associations, OON physicians, OON non-physician providers, the American Podiatric Medical Association, California Chiropractic Association and the California Psychological Association on behalf of putative classes of OON physicians and all OON non-physician health care providers. The plaintiffs filed several amended complaints alleging that the defendants violated the Racketeer Influenced and Corrupt Organizations Act, or RICO, the Sherman Antitrust Act, ERISA, federal regulations, and state law by using an OON reimbursement database called Ingenix and by using non-Ingenix OON reimbursement methodologies. We filed motions to dismiss in response to each of those amended complaints, which were granted in part and denied in part. The most recent pleading filed by the plaintiffs is a Fourth Amended Complaint to which we filed a motion to dismiss most, but not all, of the claims. In July 2013 the court issued an order granting in part and denying in part our motion. The court held that the state and federal anti-trust claims along with the RICO claims should be dismissed in their entirety with prejudice. The court further found that the ERISA claims, to the extent they involved non-Ingenix methodologies, along with those that involved our alleged non-disclosures should be dismissed with prejudice. The court also dismissed most of the plaintiffs’ state law claims with prejudice. The only claims that remain after the court’s decision are an ERISA benefits claim relating to claims priced based on Ingenix, a breach of contract claim on behalf of one subscriber plaintiff, a breach of implied covenant claim on behalf of one subscriber plaintiff, and one subscriber plaintiff’s claim under the California Unfair Competition Law. The plaintiffs filed a motion for reconsideration of the motion to dismiss order, which the court granted in part and denied in part. The court ruled that the plaintiffs adequately allege that one Georgia provider plaintiff is deemed to have exhausted administrative remedies regarding non-Ingenix methodologies based on the facts alleged regarding that plaintiff. Fact discovery is complete. The plaintiffs filed a motion for class certification in November 2013 seeking six different classes. Following oral argument, the court denied the plaintiffs' motion for class certification in late 2014. The California subscriber plaintiffs filed a motion for leave to file a renewed motion for class certification with more narrowly defined proposed classes, which the court denied. All but two of the individually named subscribers and all of the providers and medical associations dismissed their claims with prejudice. We filed a motion for summary judgment in March 2016. We intend to vigorously defend these suits; however, their ultimate outcome cannot be presently determined. We are a defendant in multiple lawsuits that were initially filed in 2012 against the BCBSA as well as Blue Cross and/or Blue Shield licensees across the country. The cases were consolidated into a single multi-district lawsuit called In re Blue Cross Blue Shield Antitrust Litigation that is pending in the United States District Court for the Northern District of Alabama. Generally, the suits allege that the BCBSA and the Blue plans have engaged in a conspiracy to horizontally allocate geographic markets through license agreements, best efforts rules (which limit the percentage of non-Blue revenue of each plan), restrictions on acquisitions and other arrangements in violation of the Sherman Antitrust Act and related state laws. The cases were brought by two putative nationwide classes of plaintiffs, health plan subscribers and providers. Subscriber and provider plaintiffs each filed consolidated amended complaints in July 2013. The consolidated amended subscriber complaint was also brought on behalf of putative state classes of health plan subscribers in Alabama, Arkansas, California, Florida, Hawaii, Illinois, Louisiana, Michigan, Mississippi, Missouri, New Hampshire, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, and Texas. Defendants filed motions to dismiss in September 2013, which were argued in April 2014. In June 2014, the court denied the majority of the motions, ruling that plaintiffs had alleged sufficient facts at this stage of the litigation to avoid dismissal of their claims. Following the subsequent filing of amended complaints by each of the subscriber and provider plaintiffs, we filed our answer and asserted our affirmative defenses in December 2014. Discovery has commenced. We intend to vigorously defend these suits; however, their ultimate outcome cannot be presently determined. Our California affiliate Blue Cross of California, doing business as Anthem Blue Cross, or BCC, has been named as a defendant, along with an unaffiliated entity, in a California taxpayer action filed in Los Angeles County Superior Court, captioned as Michael D. Myers v. State Board of Equalization, et al. , Los Angeles Superior Court Case No. BS143436, Second Appellate District Court Case No. B255455. This action is brought under a California statute that permits an individual taxpayer to sue a governmental agency when the taxpayer believes the agency has failed to enforce governing law. Plaintiff contends that BCC, a licensed Health Care Service Plan, or HCSP, is an “insurer” for purposes of taxation despite acknowledging it is not an “insurer” under regulatory law. Under California law, “insurers” must pay a gross premiums tax, or GPT, calculated as 2.35% on gross premiums. As a licensed HCSP, BCC has paid the California Corporate Franchise Tax, or CFT, the tax paid by California businesses generally. Plaintiff contends that BCC must pay the GPT rather than the CFT. Plaintiff seeks a writ of mandate directing the taxing agencies to collect the GPT, and seeks an order requiring BCC to pay GPT back taxes, interest, and penalties, for a period dating to eight years prior to the July 2013 filing of the complaint. In February 2014, the Superior Court sustained BCC’s demurrer to the complaint, without leave to amend, ruling that BCC is not an “insurer” for purposes of taxation. Plaintiff appealed. In September 2015, the Court of Appeal reversed the Superior Court’s ruling, and remanded. The Court of Appeal held that a HCSP could be an insurer for purposes of taxation if it wrote predominantly “indemnity” products. In October 2015, BCC filed a petition for rehearing in the Court of Appeal which was denied. In November 2015, BCC filed a petition for review with the California Supreme Court which was denied in December 2015. This lawsuit is being coordinated with similar lawsuits filed against other entities. All are set for an initial status conference in May 2016. BCC intends to vigorously defend this suit; however, its ultimate outcome cannot be presently determined. In March 2016, we filed a lawsuit against our vendor for pharmacy benefit management services, captioned Anthem, Inc. v. Express Scripts, Inc. , in the U.S. District Court for the Southern District of New York. The lawsuit seeks to recover damages for pharmacy pricing that is higher than competitive benchmark pricing, damages related to operational breaches and seeks various declarations under the agreement between the parties. Our suit asserts that Express Scripts, Inc.’s, or Express Scripts, current pricing exceeds the competitive benchmark pricing required by the agreement by approximately $13,000.0 over the remaining term of the agreement, and by approximately $1,800.0 through the post-termination transition period. Further, we believe that Express Scripts’ excessive pricing has caused us to lose existing customers and prevented us from gaining new business. In addition to the amounts associated with competitive benchmark pricing, we are seeking over $158.0 in damages associated with operational breaches incurred to date, together with a declaratory judgment that Express Scripts: (1) breached its obligation to negotiate in good faith and to agree in writing to new pricing terms; (2) is required to provide competitive benchmark pricing to us through the term of the agreement; (3) has breached the agreement, and that we can terminate the agreement either due to Express Scripts’ breaches or because we have determined that Express Scripts’ performance with respect to the delegated Medicare Part D functions has been unsatisfactory; and (4) is required under the agreement to provide post-termination services, at competitive benchmark pricing, for one year following any termination. In April 2016, Express Scripts filed an answer to the lawsuit disputing our contractual claims and alleging various defenses and counterclaims. Express Scripts contends that we breached the agreement by failing to negotiate proposed new pricing terms in good faith and that we breached the implied covenant of good faith and fair dealing by disregarding the terms of the transaction. In addition, Express Scripts is seeking declaratory judgments: (1) regarding the timing of the periodic pricing review under the agreement; (2) that it has no obligation to ensure that we receive any specific level of pricing, that we have no contractual right to any change in pricing under the agreement and that its sole obligation is to negotiate proposed pricing terms in good faith; and (3) that we do not have the right to terminate the agreement. In the alternative, Express Scripts claims that we have been unjustly enriched by its payment of $4,675.0 at the time of the agreement. We believe that Express Scripts’ defenses and counterclaims are without merit. We intend to vigorously pursue our claims and defend against any counterclaims; however, the ultimate outcome cannot be presently determined. Where available information indicates that it is probable that a loss has been incurred as of the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many proceedings, however, it is difficult to determine whether any loss is probable or reasonably possible. In addition, even where loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously identified loss contingency, it is not always possible to reasonably estimate the amount of the possible loss or range of loss. With respect to many of the proceedings to which we are a party, we cannot provide an estimate of the possible losses, or the range of possible losses in excess of the amount, if any, accrued, for various reasons, including but not limited to some or all of the following: (i) there are novel or unsettled legal issues presented, (ii) the proceedings are in early stages, (iii) there is uncertainty as to the likelihood of a class being certified or decertified or the ultimate size and scope of the class, (iv) there is uncertainty as to the outcome of pending appeals or motions, (v) there are significant factual issues to be resolved, and/or (vi) in many cases, the plaintiffs have not specified damages in their complaint or in court filings. For those legal proceedings where a loss is probable, or reasonably possible, and for which it is possible to reasonably estimate the amount of the possible loss or range of losses, we currently believe that the range of possible losses, in excess of established reserves, for all of those proceedings is from $0.0 to approximately $250.0 at March 31, 2016 . This estimated aggregate range of reasonably possible losses is based upon currently available information taking into account our best estimate of such losses for which such an estimate can be made. Cyber Attack Incident In February 2015, we reported that we were the target of a sophisticated external cyber attack. The attackers gained unauthorized access to certain of our information technology systems and obtained personal information related to many individuals and employees, such as names, birthdays, health care identification/social security numbers, street addresses, email addresses, phone numbers and employment information, including income data. To date, there is no evidence that credit card or medical information, such as claims, test results or diagnostic codes, were targeted, accessed or obtained, although no assurance can be given that we will not identify additional information that was accessed or obtained. We have continued to implement security enhancements since this incident and are supporting federal law enforcement efforts to identify the responsible parties. Upon discovery of the cyber attack, we took immediate action to remediate the security vulnerability and retained a cybersecurity firm to evaluate our systems and identify solutions based on the evolving landscape. We are providing credit monitoring and identity protection services to those who have been affected by this cyber attack. We have incurred expenses subsequent to the cyber attack to investigate and remediate this matter and expect to continue to incur expenses of this nature in the foreseeable future. We will recognize these expenses in the periods in which they are incurred. Actions have been filed in various federal and state courts and other claims have been or may be asserted against us on behalf of current or former members, current or former employees, other individuals, shareholders or others seeking damages or other related relief, allegedly arising out of the cyber attack. State and federal agencies, including state insurance regulators, state attorneys general, the Health and Human Services Office of Civil Rights and the Federal Bureau of Investigation, are investigating events related to the cyber attack, including how it occurred, its consequences and our responses. Although we are cooperating in these investigations, we may be subject to fines or other obligations, which may have an adverse effect on how we operate our business and our results of operations. With respect to the civil actions, a motion to transfer was filed with the Judicial Panel on Multidistrict Litigation in February 2015 and was subsequently heard by the Panel in May 2015. In June 2015, the Panel entered its order transferring the consolidated matter to the U.S. District Court for the Northern District of California. The U.S. District Court entered its case management order in September 2015. We filed a motion to dismiss ten of the counts that are before the U.S. District Court. In February 2016, the Court issued its order granting in part and denying in part our motion, dismissing three counts with prejudice, four counts without prejudice and allowing three counts to proceed. Plaintiffs filed a second amended complaint in March 2016, and we subsequently filed a second motion to dismiss. There remain a few state court cases that are presently proceeding outside of the Multidistrict Litigation. We have contingency plans and insurance coverage for certain expenses and potential liabilities of this nature. The coverage has been sufficient to cover the majority of claims and liabilities incurred to date. While a loss from these matters is reasonably possible, we cannot reasonably estimate a range of possible losses because our investigation into the matter is ongoing, the proceedings remain in the early stages, alleged damages have not been specified, there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified, and there are significant factual and legal issues to be resolved. Other Contingencies From time to time, we and certain of our subsidiaries are parties to various legal proceedings, many of which involve claims for coverage encountered in the ordinary course of business. We, like HMOs and health insurers generally, exclude certain health care and other services from coverage under our HMO, PPO and other plans. We are, in the ordinary course of business, subject to the claims of our enrollees arising out of decisions to restrict or deny reimbursement for uncovered services. The loss of even one such claim, if it results in a significant punitive damage award, could have a material adverse effect on us. In addition, the risk of potential liability under punitive damage theories may increase significantly the difficulty of obtaining reasonable settlements of coverage claims. In addition to the lawsuits described above, we are also involved in other pending and threatened litigation of the character incidental to our business, and are from time to time involved as a party in various governmental investigations, audits, reviews and administrative proceedings. These investigations, audits, reviews and administrative proceedings include routine and special inquiries by state insurance departments, state attorneys general, the U.S. Attorney General and subcommittees of the U.S. Congress. Such investigations, audits, reviews and administrative proceedings could result in the imposition of civil or criminal fines, penalties, other sanctions and additional rules, regulations or other restrictions on our business operations. Any liability that may result from any one of these actions, or in the aggregate, could have a material adverse effect on our consolidated financial position or results of operations. The National Organization of Life & Health Insurance Guaranty Associations, or NOLHGA, is a voluntary organization consisting of the state life and health insurance guaranty associations located throughout the U.S. Such associations, working together with NOLHGA, provide a safety net for their state’s policyholders, ensuring that they continue to receive coverage, subject to state maximum limits, even if their insurer is declared insolvent. We are aware that the Pennsylvania Insurance Commissioner, or Insurance Commissioner, has placed Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company, or collectively Penn Treaty, in rehabilitation, an intermediate action before insolvency. The state court denied the Insurance Commissioner’s petition for the liquidation of Penn Treaty and ordered the Insurance Commissioner to file an updated plan of rehabilitation. The state court commenced a hearing in connection with the updated plan in July 2015, which has been adjourned. Settlement conferences to resolve outstanding issues with the plan continue to be scheduled by the state court. In the event rehabilitation of Penn Treaty is unsuccessful and Penn Treaty is declared insolvent and placed in liquidation, we and other insurers may be required to pay a portion of their policyholder claims through state guaranty association assessments in future periods. Given the uncertainty around whether Penn Treaty will ultimately be declared insolvent and, if so, the amount of the insolvency, the amount and timing of any associated future guaranty fund assessments, and the availability and amount of any potential premium tax and other offsets, we currently cannot estimate our net exposure, if any, to this potential insolvency. We will continue to monitor the situation and may record a liability and expense in future reporting periods, which could be material to our cash flows and results of operations. Contractual Obligations and Commitments We are a party to an agreement with Express Scripts, whereby Express Scripts is the exclusive provider of certain pharmacy benefit management, or PBM, services to our plans, excluding our CareMore and Simply Healthcare subsidiaries and certain self-insured members, which have exclusive agreements with different PBM service providers. The initial term of this agreement expires on December 31, 2019. Under this agreement, the Express Scripts PBM services include, but are not limited to, pharmacy network management, mail order and specialty drug fulfillment, claims processing, rebate management and specialty pharmaceutical management services. Accordingly, the agreement contains certain financial and operational requirements obligating both Express Scripts and us. Express Scripts’ primary obligations relate to the performance of such services in a compliant manner and meeting certain pricing guarantees and performance standards. Our primary responsibilities relate to formulary management, product and benefit design, provision of data, payment for services, certain minimum volume requirements and oversight. The failure by either party to meet the respective requirements could potentially serve as a basis for financial penalties or early termination of the agreement. In March 2016, we filed a lawsuit against Express Scripts seeking to recover damages for pharmacy pricing that is higher than competitive benchmark pricing, damages related to operational breaches and seeking various declarations under the agreement between the parties. For additional information regarding this lawsuit, refer to the “Litigation” section above. We believe we have appropriately recognized all rights and obligations under this agreement at March 31, 2016 . During November 2015, we entered into an amended and restated agreement with Accenture LLP to provide business process outsourcing services. This new agreement supersedes certain prior agreements, converts certain services to transaction based pricing and also includes provisions for additional services. Our remaining commitment under this agreement at March 31, 2016 was $210.0 through December 31, 2019. We have the ability to terminate this agreement upon the occurrence of certain events, subject to early termination fees. During December 2014, we entered into a new agreement with International Business Machines Corporation to provide information technology infrastructure services. This new agreement supersedes certain prior agreements and also includes provisions for additional services. Our remaining commitment under this agreement at March 31, 2016 was $353.3 through March 31, 2020 . We have the ability to terminate this agreement upon the occurrence of certain events, subject to early termination fees. Vulnerability from Concentrations Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, investment securities, premium receivables and instruments held through hedging activities. All investment securities are managed by professional investment managers within policies authorized by our Board of Directors. Such policies limit the amounts that may be invested in any one issuer and prescribe certain investee company criteria. Concentrations of credit risk with respect to premium receivables are limited due to the large number of employer groups that constitute our customer base in the states in which we conduct business. As of March 31, 2016 , there were no significant concentrations of financial instruments in a single investee, industry or geographic location. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2016 | |
Capital [Abstract] | |
Capital Stock | Capital Stock Use of Capital – Dividends and Stock Repurchase Program We regularly review the appropriate use of capital, including acquisitions, common stock and debt security repurchases and dividends to shareholders. The declaration and payment of any dividends or repurchases of our common stock or debt is at the discretion of our Board of Directors and depends upon our financial condition, results of operations, future liquidity needs, regulatory and capital requirements and other factors deemed relevant by our Board of Directors. A summary of the cash dividend activity for the three months ended March 31, 2016 and 2015 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Three Months Ended March 31, 2016 February 18, 2016 March 10, 2016 March 25, 2016 $0.650 $170.7 Three Months Ended March 31, 2015 January 27, 2015 March 10, 2015 March 25, 2015 $0.625 $166.6 Under our Board of Directors’ authorization, we maintain a common stock repurchase program. On October 2, 2014, the Board of Directors authorized a $5,000.0 increase to the common stock repurchase program. Repurchases may be made from time to time at prevailing market prices, subject to certain restrictions on volume, pricing and timing. The repurchases are effected from time to time in the open market, through negotiated transactions, including accelerated share repurchase agreements, and through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Our stock repurchase program is discretionary as we are under no obligation to repurchase shares. We repurchase shares under the program when we believe it is a prudent use of capital. The excess cost of the repurchased shares over par value is charged on a pro rata basis to additional paid-in capital and retained earnings. There were no common stock repurchases during the three months ended March 31, 2016 . Total authorization remaining at March 31, 2016 was $4,175.9. A summary of common stock repurchases for the three months ended March 31, 2015 is as follows: Three Months Ended 2015 Shares repurchased 5.7 Average price per share $ 136.88 Aggregate cost $ 774.1 Authorization remaining at the end of the period $ 4,917.6 During the three months ended March 31, 2015, we entered into a series of call and put options with certain counterparties to repurchase shares of our common stock. We exercised call options that enabled us to repurchase 1.8 shares of our common stock at an average strike price of $132.13 . In order to set the call option strike prices below our market price at inception on certain of these options, we sold 4.2 put options containing an average strike price equal to the call options. During the three months ended March 31, 2015, 2.4 put options expired unexercised. Based on FASB guidance, the initial value of the call options was recognized as a reduction of shareholders' equity and the initial value of the put options was recognized as a liability. Equity Units On May 12, 2015, we issued 25.0 Equity Units, pursuant to an underwriting agreement dated May 6, 2015, in an aggregate principal amount of $1,250.0 . For additional information relating to the Equity Units, see Note 9, “Debt.” Stock Incentive Plan s A summary of stock option activity for the three months ended March 31, 2016 is as follows: Number of Shares Weighted- Average Option Price per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2016 6.0 $ 87.23 Granted 1.4 131.83 Exercised (0.8 ) 54.20 Forfeited or expired (0.1 ) 90.69 Outstanding at March 31, 2016 6.5 100.84 5.73 $ 258.9 Exercisable at March 31, 2016 3.7 80.48 3.57 $ 221.3 A summary of the status of nonvested restricted stock activity, including restricted stock units, for the three months ended March 31, 2016 is as follows: Restricted Stock Shares and Units Weighted- Average Grant Date Fair Value per Share Nonvested at January 1, 2016 2.7 $ 101.66 Granted 1.0 131.83 Vested (1.2 ) 82.63 Forfeited (0.1 ) 116.34 Nonvested at March 31, 2016 2.4 123.29 Fair Value We use a binomial lattice valuation model to estimate the fair value of all stock options granted. For a more detailed discussion of our stock incentive plan fair value methodology, see Note 14, “Capital Stock,” to our audited consolidated financial statements as of and for the year ended December 31, 2015 included in our 2015 Annual Report on Form 10-K. The following weighted-average assumptions were used to estimate the fair values of options granted during the three months ended March 31, 2016 and 2015 : Three Months Ended March 31 2016 2015 Risk-free interest rate 1.76 % 1.96 % Volatility factor 32.00 % 31.00 % Quarterly dividend yield 0.491 % 0.425 % Weighted-average expected life (years) 4.10 4.00 The following weighted-average fair values were determined for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31 2016 2015 Options granted during the period $ 30.55 $ 33.95 Restricted stock awards granted during the period 131.83 146.85 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive (Loss) Income A reconciliation of the components of accumulated other comprehensive (loss) income at March 31, 2016 and 2015 is as follows: March 31 2016 2015 Investments: Gross unrealized gains $ 908.0 $ 1,198.8 Gross unrealized losses (269.2 ) (135.5 ) Net pre-tax unrealized gains 638.8 1,063.3 Deferred tax liability (223.2 ) (375.3 ) Net unrealized gains on investments 415.6 688.0 Non-credit components of other-than-temporary impairments on investments: Unrealized losses (18.3 ) (1.4 ) Deferred tax asset 6.6 0.5 Net unrealized non-credit component of other-than-temporary impairments on investments (11.7 ) (0.9 ) Cash flow hedges: Gross unrealized losses (533.2 ) (53.8 ) Deferred tax asset 186.6 18.8 Net unrealized losses on cash flow hedges (346.6 ) (35.0 ) Defined benefit pension plans: Deferred net actuarial loss (628.3 ) (556.1 ) Deferred prior service credits (0.1 ) 2.1 Deferred tax asset 247.8 220.3 Net unrecognized periodic benefit costs for defined benefit pension plans (380.6 ) (333.7 ) Postretirement benefit plans: Deferred net actuarial loss (159.6 ) (194.8 ) Deferred prior service credits 70.1 71.8 Deferred tax asset 35.3 48.8 Net unrecognized periodic benefit costs for postretirement benefit plans (54.2 ) (74.2 ) Foreign currency translation adjustments: Gross unrealized losses (7.5 ) (9.7 ) Deferred tax asset 2.6 3.4 Net unrealized losses on foreign currency translation adjustments (4.9 ) (6.3 ) Accumulated other comprehensive (loss) income $ (382.4 ) $ 237.9 Other comprehensive (loss) income reclassification adjustments for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended March 31 2016 2015 Investments: Net holding gain on investment securities arising during the period, net of tax expense of ($85.4) and ($56.2), respectively $ 147.1 $ 81.5 Reclassification adjustment for net realized loss (gain) on investment securities, net of tax (benefit) expense of ($13.6) and $11.4, respectively 25.2 (21.1 ) Total reclassification adjustment on investments 172.3 60.4 Non-credit component of other-than-temporary impairments on investments: Non-credit component of other-than-temporary impairments on investments, net of tax benefit (expense) of $1.2 and ($1.9), respectively (1.7 ) 3.5 Cash flow hedges: Holding (loss) gain, net of tax benefit (expense) of $142.9 and ($0.5), respectively (265.5 ) 0.9 Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($2.4) and ($3.0), respectively 3.8 4.7 Foreign currency translation adjustment, net of tax (expense) benefit of ($0.7) and $1.9, respectively 1.3 (3.5 ) Net (loss) gain recognized in other comprehensive income, net of tax benefit (expense) of $42.0 and ($48.3), respectively $ (89.8 ) $ 66.0 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The denominator for basic and diluted earnings per share for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended 2016 2015 Denominator for basic earnings per share – weighted-average shares 261.8 266.6 Effect of dilutive securities – employee stock options, non-vested restricted stock awards and convertible debentures 5.7 13.8 Denominator for diluted earnings per share 267.5 280.4 During the three months ended March 31, 2016 and 2015 , weighted-average shares related to certain stock options of 1.7 and 0.4 , respectively, were excluded from the denominator for diluted earnings per share because the stock options were anti-dilutive. The Equity Units are potentially dilutive securities but were excluded from the denominator for diluted earnings per share for the three months ended March 31, 2016 , as the dilutive stock price threshold was not met. During the three months ended March 31, 2016 , we issued approximately 1.0 restricted stock units under our stock incentive plans, 0.5 of which vesting is contingent upon us meeting specified annual earnings targets for the three year period of 2016 through 2018. During the three months ended March 31, 2015 , we issued approximately 0.9 restricted stock units under our stock incentive plans, 0.5 of which vesting is contingent upon us meeting specified annual earnings targets for the three year period of 2015 through 2017. The contingent restricted stock units have been excluded from the denominator for diluted earnings per share and are included only if and when the contingency is met. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The results of our operations are described through three reportable segments: Commercial and Specialty Business, Government Business and Other, as further described in Note 19, “Segment Information,” to our audited consolidated financial statements as of and for the year ended December 31, 2015 included in our 2015 Annual Report on Form 10-K. Financial data by reportable segment for the three months ended March 31, 2016 and 2015 is as follows: Commercial and Specialty Business Government Business Other Total Three Months Ended March 31, 2016 Operating revenue $ 9,509.8 $ 10,793.9 $ 5.7 $ 20,309.4 Operating gain (loss) 1,293.0 325.0 (47.6 ) 1,570.4 Three Months Ended March 31, 2015 Operating revenue $ 9,366.9 $ 9,480.1 $ 4.4 $ 18,851.4 Operating gain (loss) 1,267.0 324.4 (12.1 ) 1,579.3 A reconciliation of reportable segments operating revenues, a non-GAAP measure, to the amounts of total revenues included in the consolidated statements of income for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended 2016 2015 Reportable segments operating revenues $ 20,309.4 $ 18,851.4 Net investment income 171.1 167.6 Net realized (losses) gains on investments (125.1 ) 46.5 Other-than-temporary impairment losses recognized in income (66.9 ) (14.0 ) Total revenues $ 20,288.5 $ 19,051.5 A reconciliation of reportable segments operating gain, a non-GAAP measure, to income before income tax expense included in the consolidated statements of income for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended 2016 2015 Reportable segments operating gain $ 1,570.4 $ 1,579.3 Net investment income 171.1 167.6 Net realized (losses) gains on investments (125.1 ) 46.5 Other-than-temporary impairment losses recognized in income (66.9 ) (14.0 ) Interest expense (187.1 ) (154.4 ) Amortization of other intangible assets (50.4 ) (52.5 ) Loss on extinguishment of debt — (3.4 ) Income before income tax expense $ 1,312.0 $ 1,569.1 |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. We have omitted certain footnote disclosures that would substantially duplicate the disclosures in our 2015 Annual Report on Form 10-K, unless the information contained in those disclosures materially changed or is required by GAAP. Certain prior year amounts have been reclassified to conform to the current year presentation. In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the consolidated financial statements as of and for the three months ended March 31, 2016 and 2015 have been recorded. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016 . These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2015 included in our 2015 Annual Report on Form 10-K. |
Foreign Currency | Certain of our subsidiaries operate outside of the United States and have functional currencies other than the U.S. dollar, or USD. We translate the assets and liabilities of those subsidiaries to USD using the exchange rate in effect at the end of the period. We translate the revenues and expenses of those subsidiaries to USD using the average exchange rates in effect during the period. The net effect of these translation adjustments is included in “Foreign currency translation adjustments” in our consolidated statements of comprehensive income. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance: In April 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , or ASU 2015-05. This amendment provides guidance to help entities determine whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software or as a service contract. ASU 2015-05 became effective January 1, 2016 and we elected to adopt the provisions of the new guidance prospectively to all arrangements entered into or materially modified on or after January 1, 2016. The adoption of ASU 2015-05 did not have an impact on our consolidated financial position, results of operations or cash flows. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , or ASU 2015-02. ASU 2015-02 amended the consolidation guidance by modifying the evaluation criteria for whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affecting the consolidation analysis of reporting entities that are involved with variable interest entities. We adopted the provisions of ASU 2015-02 effective January 1, 2016 and re-evaluated all legal entity investments under the revised consolidation model. The adoption of ASU 2015-02 did not have a material impact on our consolidated financial position, results of operations or cash flows. |
Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Not Yet Adopted: In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , or ASU 2016-10. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross verses Net) , or ASU 2016-08. These amendments provide additional clarification and implementation guidance on the previously issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) , or ASU 2014-09. The amendments in ASU 2016-10 provide clarifying guidance on materiality of performance obligations; evaluating distinct performance obligations; treatment of shipping and handling costs; and determining whether an entity's promise to grant a license provides a customer with either a right to use an entity's intellectual property or a right to access an entity's intellectual property. The amendments in ASU 2016-08 clarify how an entity should identify the specified good or service for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. The adoption of ASU 2016-10 and ASU 2016-08 is to coincide with an entity's adoption of ASU 2014-09, which we intend to adopt for interim and annual reporting periods beginning after December 15, 2017. We are currently evaluating the impact that these standards will have on our results of operations, cash flows, consolidated financial position and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , or ASU 2016-09. The amendments in this update simplify several aspects of accounting for and reporting on share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in ASU 2016-09 are effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The various amendments are to be applied differently upon adoption with certain amendments being applied prospectively, retrospectively and under a modified retrospective transition method. We are currently evaluating the effects the adoption of ASU 2016-09 will have on our consolidated financial statements, results of operations and cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) , or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in Topic 840, Leases . Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. We are currently evaluating the effects the adoption of ASU 2016-02 will have on our consolidated financial statements, results of operations and cash flows. There were no other new accounting pronouncements that were issued or became effective since the issuance of our 2015 Annual Report on Form 10-K that had, or are expected to have, a material impact on our consolidated financial position, results of operations or cash flows. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments [Abstract] | |
Current and Long-Term Investments, Available-For-Sale | A summary of current and long-term investments, available-for-sale, at March 31, 2016 and December 31, 2015 is as follows: Non-Credit Component of Other-Than- Cost or Gross Gross Unrealized Losses Estimated Less than 12 Months 12 Months or Greater March 31, 2016 Fixed maturity securities: United States Government securities $ 424.1 $ 8.3 $ — $ — $ 432.4 $ — Government sponsored securities 52.6 1.0 — — 53.6 — States, municipalities and political subdivisions, tax-exempt 5,904.3 327.6 (1.0 ) (5.9 ) 6,225.0 — Corporate securities 9,270.3 159.6 (116.0 ) (89.2 ) 9,224.7 (18.3 ) Residential mortgage-backed securities 1,780.4 49.5 (3.2 ) (7.0 ) 1,819.7 — Commercial mortgage-backed securities 358.2 2.8 (4.0 ) (0.5 ) 356.5 — Other debt securities 761.9 3.0 (9.8 ) (3.8 ) 751.3 — Total fixed maturity securities 18,551.8 551.8 (134.0 ) (106.4 ) 18,863.2 $ (18.3 ) Equity securities 1,296.1 356.2 (28.8 ) — 1,623.5 Total investments, available-for-sale $ 19,847.9 $ 908.0 $ (162.8 ) $ (106.4 ) $ 20,486.7 December 31, 2015 Fixed maturity securities: United States Government securities $ 349.5 $ 2.0 $ (1.6 ) $ — $ 349.9 $ — Government sponsored securities 75.6 0.5 (0.1 ) (0.1 ) 75.9 — States, municipalities and political subdivisions, tax-exempt 5,976.7 284.1 (4.0 ) (5.2 ) 6,251.6 — Corporate securities 8,209.7 61.1 (267.2 ) (110.5 ) 7,893.1 (15.4 ) Residential mortgage-backed securities 1,724.5 41.2 (7.6 ) (7.2 ) 1,750.9 — Commercial mortgage-backed securities 407.6 1.4 (4.3 ) (0.4 ) 404.3 — Other debt securities 756.8 4.1 (5.8 ) (2.6 ) 752.5 — Total fixed maturity securities 17,500.4 394.4 (290.6 ) (126.0 ) 17,478.2 $ (15.4 ) Equity securities 1,083.1 420.6 (30.9 ) — 1,472.8 Total investments, available-for-sale $ 18,583.5 $ 815.0 $ (321.5 ) $ (126.0 ) $ 18,951.0 |
Aggregate Fair Value and Gross Unrealized Loss of Fixed Maturity Securities and Equity Securities in an Unrealized Loss Position | For available-for-sale securities in an unrealized loss position at March 31, 2016 and December 31, 2015 , the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been in an unrealized loss position: Less than 12 Months 12 Months or Greater (Securities are whole amounts) Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss March 31, 2016 Fixed maturity securities: United States Government securities 5 $ 64.3 $ — 2 $ 1.0 $ — Government sponsored securities 1 0.1 — 2 2.5 — States, municipalities and political subdivisions, tax-exempt 97 179.8 (1.0 ) 63 131.6 (5.9 ) Corporate securities 1,301 2,509.2 (116.0 ) 478 768.3 (89.2 ) Residential mortgage-backed securities 122 201.0 (3.2 ) 155 266.7 (7.0 ) Commercial mortgage-backed securities 45 143.4 (4.0 ) 18 39.4 (0.5 ) Other debt securities 159 452.5 (9.8 ) 34 86.6 (3.8 ) Total fixed maturity securities 1,730 3,550.3 (134.0 ) 752 1,296.1 (106.4 ) Equity securities 862 265.9 (28.8 ) 2 — — Total fixed maturity and equity securities 2,592 $ 3,816.2 $ (162.8 ) 754 $ 1,296.1 $ (106.4 ) December 31, 2015 Fixed maturity securities: United States Government securities 48 $ 248.4 $ (1.6 ) 2 $ 0.9 $ — Government sponsored securities 13 18.3 (0.1 ) 6 8.2 (0.1 ) States, municipalities and political subdivisions, tax-exempt 198 467.8 (4.0 ) 43 83.0 (5.2 ) Corporate securities 2,492 4,912.3 (267.2 ) 372 447.0 (110.5 ) Residential mortgage-backed securities 298 668.3 (7.6 ) 119 186.3 (7.2 ) Commercial mortgage-backed securities 66 263.0 (4.3 ) 17 38.5 (0.4 ) Other debt securities 153 488.2 (5.8 ) 28 77.0 (2.6 ) Total fixed maturity securities 3,268 7,066.3 (290.6 ) 587 840.9 (126.0 ) Equity securities 792 261.1 (30.9 ) — — — Total fixed maturity and equity securities 4,060 $ 7,327.4 $ (321.5 ) 587 $ 840.9 $ (126.0 ) |
Amortized Cost and Fair Value of Fixed Maturity Securities, By Contractual Maturity | The amortized cost and fair value of available-for-sale fixed maturity securities at March 31, 2016 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations. Amortized Cost Estimated Fair Value Due in one year or less $ 353.6 $ 355.4 Due after one year through five years 4,997.4 5,001.0 Due after five years through ten years 5,398.9 5,536.7 Due after ten years 5,663.3 5,793.9 Mortgage-backed securities 2,138.6 2,176.2 Total available-for-sale fixed maturity securities $ 18,551.8 $ 18,863.2 |
Proceeds and Realized Gains and Losses from Investments | Proceeds from fixed maturity securities, equity securities and other invested assets and the related gross realized gains and gross realized losses for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended 2016 2015 Proceeds $ 3,062.1 $ 2,925.9 Gross realized gains 121.4 133.7 Gross realized losses (92.7 ) (87.2 ) |
Securities Lending Programs | The remaining contractual maturity of our securities lending agreements at March 31, 2016 is as follows: Overnight and Continuous Less than 30 days 30-90 days Greater Than 90 days Total Securities lending transactions United States Government securities $ 58.1 $ 0.5 $ 20.5 $ 94.7 $ 173.8 Corporate securities 852.4 — — — 852.4 Equity securities 323.5 — 0.1 0.7 324.3 Other debt securities 104.8 — — — 104.8 Total $ 1,338.8 $ 0.5 $ 20.6 $ 95.4 $ 1,455.3 |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Aggregate Contractual Or Notional Amounts And Estimated Fair Values | A summary of the aggregate contractual or notional amounts and estimated fair values related to derivative financial instruments at March 31, 2016 and December 31, 2015 is as follows: Contractual/ Notional Amount Balance Sheet Location Estimated Fair Value Asset (Liability) March 31, 2016 Hedging instruments Interest rate swaps - fixed to floating $ 1,385.0 Other assets/other liabilities $ 17.8 $ — Interest rate swaps - forward starting pay fixed 5,000.0 Other assets/other liabilities — (484.9 ) Subtotal hedging 6,385.0 Subtotal hedging 17.8 (484.9 ) Non-hedging instruments Interest rate swaps 324.0 Equity securities — (20.5 ) Options 19,107.7 Other assets/other liabilities 269.2 (355.1 ) Futures 142.2 Equity securities 0.3 (0.3 ) Subtotal non-hedging 19,573.9 Subtotal non-hedging 269.5 (375.9 ) Total derivatives $ 25,958.9 Total derivatives 287.3 (860.8 ) Amounts netted (136.1 ) 136.1 Net derivatives $ 151.2 $ (724.7 ) December 31, 2015 Hedging instruments Interest rate swaps - fixed to floating $ 1,385.0 Other assets/other liabilities $ 7.0 $ (0.8 ) Interest rate swaps - forward starting pay fixed 4,650.0 Other assets/other liabilities 15.7 (90.9 ) Subtotal hedging 6,035.0 Subtotal hedging 22.7 (91.7 ) Non-hedging instruments Interest rate swaps 271.7 Equity securities 1.2 (6.0 ) Options 16,917.4 Other assets/other liabilities 305.7 (332.1 ) Futures 152.0 Equity securities 0.1 (0.2 ) Subtotal non-hedging 17,341.1 Subtotal non-hedging 307.0 (338.3 ) Total derivatives $ 23,376.1 Total derivatives 329.7 (430.0 ) Amounts netted (170.6 ) 170.6 Net derivatives $ 159.1 $ (259.4 ) |
Summary Of Outstanding Fair Value Hedges | A summary of our outstanding fair value hedges at March 31, 2016 and December 31, 2015 is as follows: Type of Fair Value Hedges Year Entered Into Outstanding Notional Amount Interest Rate Received Expiration Date March 31, 2016 December 31, 2015 Interest rate swap 2015 $ 200.0 $ 200.0 4.350 % August 15, 2020 Interest rate swap 2014 150.0 150.0 4.350 August 15, 2020 Interest rate swap 2013 10.0 10.0 4.350 August 15, 2020 Interest rate swap 2012 200.0 200.0 4.350 August 15, 2020 Interest rate swap 2012 625.0 625.0 1.875 January 15, 2018 Interest rate swap 2012 200.0 200.0 2.375 February 15, 2017 Total notional amount outstanding $ 1,385.0 $ 1,385.0 |
Effect Of Fair Value Hedges On Income Statement | A summary of the effect of fair value hedges on our income statement for the three months ended March 31, 2016 and 2015 is as follows: Type of Fair Value Hedges Income Statement Location of Hedge Gain Hedge Gain Recognized Hedged Item Income Statement Location of Hedged Item Loss Hedged Item Loss Recognized Three months ended March 31, 2016 Interest rate swaps Interest expense $ 2.4 Fixed rate debt Interest expense $ (2.4 ) Three months ended March 31, 2015 Interest rate swaps Interest expense $ 2.8 Fixed rate debt Interest expense $ (2.8 ) |
Effect Of Cash Flow Hedges On Financial Statements | A summary of the effect of cash flow hedges on our financial statements for the three months ended March 31, 2016 and 2015 is as follows: Effective Portion Pretax Hedge Income Statement Hedge Loss Ineffective Portion Type of Cash Flow Hedge Income Statement Location of Loss Recognized Hedge Loss Recognized Three months ended March 31, 2016 Forward starting pay fixed swaps $ (409.8 ) Interest expense $ (1.4 ) None $ — Three months ended March 31, 2015 Forward starting pay fixed swaps $ — Interest expense $ (1.4 ) None $ — |
Effect Of Non-Hedging Derivatives On Income Statement And Included In Net Realized Gains (Losses) On Investments) | A summary of the effect of non-hedging derivatives on our income statement for the three months ended March 31, 2016 and 2015 is as follows: Type of Non-hedging Derivatives Income Statement Location of Gain (Loss) Recognized Derivative Gain (Loss) Recognized Three months ended March 31, 2016 Interest rate swaps Net realized (losses) gains on investments $ (16.9 ) Options Net realized (losses) gains on investments (136.4 ) Futures Net realized (losses) gains on investments (0.5 ) Total $ (153.8 ) Three months ended March 31, 2015 Derivatives embedded in convertible fixed maturity securities Net realized (losses) gains on investments $ (23.0 ) Interest rate swaps Net realized (losses) gains on investments (4.6 ) Options Net realized (losses) gains on investments 7.2 Futures Net realized (losses) gains on investments (1.6 ) Total $ (22.0 ) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements By Level For Assets Measured At Fair Value On A Recurring Basis | A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 is as follows: Level I Level II Level III Total March 31, 2016 Assets: Cash equivalents $ 666.1 $ — $ — $ 666.1 Investments available-for-sale: Fixed maturity securities: United States Government securities 432.4 — — 432.4 Government sponsored securities — 53.6 — 53.6 States, municipalities and political subdivisions, tax-exempt — 6,225.0 — 6,225.0 Corporate securities 223.8 8,768.7 232.2 9,224.7 Residential mortgage-backed securities — 1,819.7 — 1,819.7 Commercial mortgage-backed securities — 356.5 — 356.5 Other debt securities 56.7 659.8 34.8 751.3 Total fixed maturity securities 712.9 17,883.3 267.0 18,863.2 Equity securities 1,386.0 93.0 144.5 1,623.5 Other invested assets, current 19.4 — — 19.4 Securities lending collateral 874.0 581.3 — 1,455.3 Derivatives (reported with other assets) — 287.3 — 287.3 Total assets $ 3,658.4 $ 18,844.9 $ 411.5 $ 22,914.8 Liabilities: Derivatives (reported with other liabilities) $ — $ (860.8 ) $ — $ (860.8 ) Total liabilities $ — $ (860.8 ) $ — $ (860.8 ) December 31, 2015 Assets: Cash equivalents $ 701.0 $ — $ — $ 701.0 Investments available-for-sale: Fixed maturity securities: United States Government securities 349.9 — — 349.9 Government sponsored securities — 75.9 — 75.9 States, municipalities and political subdivisions, tax-exempt — 6,251.6 — 6,251.6 Corporate securities 77.6 7,629.3 186.2 7,893.1 Residential mortgage-backed securities — 1,750.9 — 1,750.9 Commercial mortgage-backed securities — 402.4 1.9 404.3 Other debt securities 55.7 671.2 25.6 752.5 Total fixed maturity securities 483.2 16,781.3 213.7 17,478.2 Equity securities 1,253.8 116.9 102.1 1,472.8 Other invested assets, current 19.1 — — 19.1 Securities lending collateral 708.1 592.3 — 1,300.4 Derivatives (reported with other assets) — 329.7 — 329.7 Total assets $ 3,165.2 $ 17,820.2 $ 315.8 $ 21,301.2 Liabilities: Derivatives (reported with other liabilities) $ — $ (430.0 ) $ — $ (430.0 ) Total liabilities $ — $ (430.0 ) $ — $ (430.0 ) |
Reconciliation Of The Beginning And Ending Balances Of Assets Measured At Fair Value On A Recurring Basis Using Level III Inputs | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended March 31, 2016 and 2015 is as follows: Corporate Securities Commercial Mortgage- backed Securities Other Debt Securities Equity Securities Total Three Months Ended March 31, 2016 Beginning balance at January 1, 2016 $ 186.2 $ 1.9 $ 25.6 $ 102.1 $ 315.8 Total (losses) gains: Recognized in net income (0.9 ) — — 2.2 1.3 Recognized in accumulated other comprehensive income (1.5 ) — (0.4 ) (1.6 ) (3.5 ) Purchases 58.0 — — 44.2 102.2 Sales (1.0 ) — — (2.4 ) (3.4 ) Settlements (10.9 ) — — — (10.9 ) Transfers into Level III 2.3 — 9.6 — 11.9 Transfers out of Level III — (1.9 ) — — (1.9 ) Ending balance at March 31, 2016 $ 232.2 $ — $ 34.8 $ 144.5 $ 411.5 Change in unrealized losses included in net income related to assets still held for the three months ended March 31, 2016 $ (1.7 ) $ — $ — $ — $ (1.7 ) Three Months Ended March 31, 2015 Beginning balance at January 1, 2015 $ 144.6 $ 3.3 $ 6.6 $ 48.3 $ 202.8 Total (losses) gains: Recognized in net income (0.2 ) — 0.2 (0.8 ) (0.8 ) Recognized in accumulated other comprehensive income 1.6 — (0.2 ) 1.3 2.7 Purchases 32.4 — — 7.5 39.9 Sales — — (0.9 ) (4.5 ) (5.4 ) Settlements (13.6 ) (0.1 ) (0.1 ) — (13.8 ) Transfers into Level III 0.7 — — — 0.7 Transfers out of Level III — — (3.0 ) — (3.0 ) Ending balance at March 31, 2015 $ 165.5 $ 3.2 $ 2.6 $ 51.8 $ 223.1 Change in unrealized losses included in net income related to assets still held for the three months ended March 31, 2015 $ (0.6 ) $ — $ — $ (0.8 ) $ (1.4 ) |
Carrying And Fair Values By Level Of Financial Instruments Not Recorded At Fair Value On Consolidated Balance Sheet | A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at March 31, 2016 and December 31, 2015 are as follows: Carrying Value Estimated Fair Value Level I Level II Level III Total March 31, 2016 Assets: Other invested assets, long-term $ 2,078.3 $ — $ — $ 2,078.3 $ 2,078.3 Liabilities: Debt: Short-term borrowings 540.0 — 540.0 — 540.0 Commercial paper 604.9 — 604.9 — 604.9 Notes 14,327.3 — 14,923.5 — 14,923.5 Convertible debentures 331.5 — 983.0 — 983.0 December 31, 2015 Assets: Other invested assets, long-term $ 2,041.1 $ — $ — $ 2,041.1 $ 2,041.1 Liabilities: Debt: Short-term borrowings 540.0 — 540.0 — 540.0 Commercial paper 682.2 — 682.2 — 682.2 Notes 14,311.6 — 14,523.2 — 14,523.2 Convertible debentures 330.7 — 980.1 — 980.1 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost (Benefit Credit) | The components of net periodic (benefit credit) benefit cost included in the consolidated statements of income for the three months ended March 31, 2016 and 2015 are as follows: Pension Benefits Other Benefits Three Months Ended March 31 Three Months Ended 2016 2015 2016 2015 Service cost $ 2.8 $ 3.3 $ 0.4 $ 0.5 Interest cost 17.3 17.0 5.6 5.9 Expected return on assets (36.7 ) (35.7 ) (5.6 ) (5.9 ) Recognized actuarial loss 4.4 6.4 3.1 3.8 Settlement loss 2.4 1.3 — — Amortization of prior service credit (0.1 ) (0.2 ) (3.5 ) (3.6 ) Net periodic (benefit credit) benefit cost $ (9.9 ) $ (7.9 ) $ — $ 0.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Convertible Debenture Terms | The following table summarizes at March 31, 2016 the related balances, conversion rate and conversion price of the Debentures: Outstanding principal amount $ 513.4 Unamortized debt discount $ 176.0 Net debt carrying amount $ 331.5 Equity component carrying amount $ 186.1 Conversion rate (shares of common stock per $1,000 of principal amount) 13.5254 Effective conversion price (per $1,000 of principal amount) $ 73.9342 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Capital [Abstract] | |
Summary of Cash Dividend Activity | A summary of the cash dividend activity for the three months ended March 31, 2016 and 2015 is as follows: Declaration Date Record Date Payment Date Cash Dividend per Share Total Three Months Ended March 31, 2016 February 18, 2016 March 10, 2016 March 25, 2016 $0.650 $170.7 Three Months Ended March 31, 2015 January 27, 2015 March 10, 2015 March 25, 2015 $0.625 $166.6 |
Summary of Share Repurchases | There were no common stock repurchases during the three months ended March 31, 2016 . Total authorization remaining at March 31, 2016 was $4,175.9. A summary of common stock repurchases for the three months ended March 31, 2015 is as follows: Three Months Ended 2015 Shares repurchased 5.7 Average price per share $ 136.88 Aggregate cost $ 774.1 Authorization remaining at the end of the period $ 4,917.6 |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2016 is as follows: Number of Shares Weighted- Average Option Price per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2016 6.0 $ 87.23 Granted 1.4 131.83 Exercised (0.8 ) 54.20 Forfeited or expired (0.1 ) 90.69 Outstanding at March 31, 2016 6.5 100.84 5.73 $ 258.9 Exercisable at March 31, 2016 3.7 80.48 3.57 $ 221.3 |
Summary of Nonvested Restricted Stock Activity Including Restricted Stock Units | A summary of the status of nonvested restricted stock activity, including restricted stock units, for the three months ended March 31, 2016 is as follows: Restricted Stock Shares and Units Weighted- Average Grant Date Fair Value per Share Nonvested at January 1, 2016 2.7 $ 101.66 Granted 1.0 131.83 Vested (1.2 ) 82.63 Forfeited (0.1 ) 116.34 Nonvested at March 31, 2016 2.4 123.29 |
Summary of Weighted-Average Assumptions Used to Estimate the Fair Value of Options Granted During the Periods | The following weighted-average assumptions were used to estimate the fair values of options granted during the three months ended March 31, 2016 and 2015 : Three Months Ended March 31 2016 2015 Risk-free interest rate 1.76 % 1.96 % Volatility factor 32.00 % 31.00 % Quarterly dividend yield 0.491 % 0.425 % Weighted-average expected life (years) 4.10 4.00 |
Schedule of Weighted-Average Fair Values Determined for the Periods | The following weighted-average fair values were determined for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31 2016 2015 Options granted during the period $ 30.55 $ 33.95 Restricted stock awards granted during the period 131.83 146.85 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components Of Accumulated Other Comprehensive Income | A reconciliation of the components of accumulated other comprehensive (loss) income at March 31, 2016 and 2015 is as follows: March 31 2016 2015 Investments: Gross unrealized gains $ 908.0 $ 1,198.8 Gross unrealized losses (269.2 ) (135.5 ) Net pre-tax unrealized gains 638.8 1,063.3 Deferred tax liability (223.2 ) (375.3 ) Net unrealized gains on investments 415.6 688.0 Non-credit components of other-than-temporary impairments on investments: Unrealized losses (18.3 ) (1.4 ) Deferred tax asset 6.6 0.5 Net unrealized non-credit component of other-than-temporary impairments on investments (11.7 ) (0.9 ) Cash flow hedges: Gross unrealized losses (533.2 ) (53.8 ) Deferred tax asset 186.6 18.8 Net unrealized losses on cash flow hedges (346.6 ) (35.0 ) Defined benefit pension plans: Deferred net actuarial loss (628.3 ) (556.1 ) Deferred prior service credits (0.1 ) 2.1 Deferred tax asset 247.8 220.3 Net unrecognized periodic benefit costs for defined benefit pension plans (380.6 ) (333.7 ) Postretirement benefit plans: Deferred net actuarial loss (159.6 ) (194.8 ) Deferred prior service credits 70.1 71.8 Deferred tax asset 35.3 48.8 Net unrecognized periodic benefit costs for postretirement benefit plans (54.2 ) (74.2 ) Foreign currency translation adjustments: Gross unrealized losses (7.5 ) (9.7 ) Deferred tax asset 2.6 3.4 Net unrealized losses on foreign currency translation adjustments (4.9 ) (6.3 ) Accumulated other comprehensive (loss) income $ (382.4 ) $ 237.9 |
Other Comprehensive Income Reclassification Adjustments | Other comprehensive (loss) income reclassification adjustments for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended March 31 2016 2015 Investments: Net holding gain on investment securities arising during the period, net of tax expense of ($85.4) and ($56.2), respectively $ 147.1 $ 81.5 Reclassification adjustment for net realized loss (gain) on investment securities, net of tax (benefit) expense of ($13.6) and $11.4, respectively 25.2 (21.1 ) Total reclassification adjustment on investments 172.3 60.4 Non-credit component of other-than-temporary impairments on investments: Non-credit component of other-than-temporary impairments on investments, net of tax benefit (expense) of $1.2 and ($1.9), respectively (1.7 ) 3.5 Cash flow hedges: Holding (loss) gain, net of tax benefit (expense) of $142.9 and ($0.5), respectively (265.5 ) 0.9 Other: Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax expense of ($2.4) and ($3.0), respectively 3.8 4.7 Foreign currency translation adjustment, net of tax (expense) benefit of ($0.7) and $1.9, respectively 1.3 (3.5 ) Net (loss) gain recognized in other comprehensive income, net of tax benefit (expense) of $42.0 and ($48.3), respectively $ (89.8 ) $ 66.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Denominator for Basic and Diluted Earnings Per Share | The denominator for basic and diluted earnings per share for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended 2016 2015 Denominator for basic earnings per share – weighted-average shares 261.8 266.6 Effect of dilutive securities – employee stock options, non-vested restricted stock awards and convertible debentures 5.7 13.8 Denominator for diluted earnings per share 267.5 280.4 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial Data By Reportable Segment | Financial data by reportable segment for the three months ended March 31, 2016 and 2015 is as follows: Commercial and Specialty Business Government Business Other Total Three Months Ended March 31, 2016 Operating revenue $ 9,509.8 $ 10,793.9 $ 5.7 $ 20,309.4 Operating gain (loss) 1,293.0 325.0 (47.6 ) 1,570.4 Three Months Ended March 31, 2015 Operating revenue $ 9,366.9 $ 9,480.1 $ 4.4 $ 18,851.4 Operating gain (loss) 1,267.0 324.4 (12.1 ) 1,579.3 |
Reconciliation Of Reportable Segments Operating Revenues To Total Revenues Reported In The Consolidated Statements Of Income | A reconciliation of reportable segments operating revenues, a non-GAAP measure, to the amounts of total revenues included in the consolidated statements of income for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended 2016 2015 Reportable segments operating revenues $ 20,309.4 $ 18,851.4 Net investment income 171.1 167.6 Net realized (losses) gains on investments (125.1 ) 46.5 Other-than-temporary impairment losses recognized in income (66.9 ) (14.0 ) Total revenues $ 20,288.5 $ 19,051.5 |
Reconciliation Of Reportable Segments Operating Gain To Income Before Income Tax Expense Included In The Consolidated Statements Of Income | A reconciliation of reportable segments operating gain, a non-GAAP measure, to income before income tax expense included in the consolidated statements of income for the three months ended March 31, 2016 and 2015 is as follows: Three Months Ended 2016 2015 Reportable segments operating gain $ 1,570.4 $ 1,579.3 Net investment income 171.1 167.6 Net realized (losses) gains on investments (125.1 ) 46.5 Other-than-temporary impairment losses recognized in income (66.9 ) (14.0 ) Interest expense (187.1 ) (154.4 ) Amortization of other intangible assets (50.4 ) (52.5 ) Loss on extinguishment of debt — (3.4 ) Income before income tax expense $ 1,312.0 $ 1,569.1 |
Organization (Details)
Organization (Details) medical_member in Millions | Mar. 31, 2016medical_membercountystates |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of medical members | medical_member | 39.6 |
Number of counties in the Kansas City area the Company does not serve | 30 |
Number of counties in the New York City metropolitan area the Company serves as an independent licensee | 10 |
Number of states in which the Company is licensed to conduct insurance operations | states | 50 |
Basis of Presentation and Signf
Basis of Presentation and Signficant Accounting Policies Basis of Presentation and Significant Acconting Policies (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Customer funds | $ 113.2 | $ 122.6 |
Business Acquisitions Business
Business Acquisitions Business Acquisitions (Assets Liabilities Acquired) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)shares$ / shares | Dec. 31, 2015USD ($) | Jul. 23, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 17,562.2 | $ 17,562.2 | |
Pending Acquisition of Cigna Corporation [Domain] | |||
Business Acquisition [Line Items] | |||
Number of countries and jurisdictions In which acquiree operates | 30 | ||
Cash consideration per share | $ / shares | $ 103.40 | ||
Merger agreement, per share consideration of acquirer stock to be exchanged for acquiree stock | shares | 0.5152 | ||
Merger agreement, approximate purchase price, gross | $ 53,000 | ||
Merger agreement, approximate pro forma equity ownership of acquirer shareholders | 67.00% | ||
Merger agreement, approximate pro forma equity ownership of acquiree shareholders | 33.00% | ||
Bridge facility, maximum borrowing capacity | $ 22,500 | ||
Bridge facility, maximum borrowing term | 364 days | ||
Term loan facility, maximum borrowing capacity | $ 4,000 | ||
Government Business [Member] | Simply Healthcare [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 474.7 |
Investments (Current And Long-T
Investments (Current And Long-Term Investments, Available-For-Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Investments [Line Items] | ||
Cost or Amortized Cost | $ 19,847.9 | $ 18,583.5 |
Gross Unrealized Gains | 908 | 815 |
Gross Unrealized Losses, Less than 12 Months | (162.8) | (321.5) |
Gross Unrealized Losses, 12 Months or Greater | (106.4) | (126) |
Available-for-sale Securities | 20,486.7 | 18,951 |
Equity Securities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 1,296.1 | 1,083.1 |
Gross Unrealized Gains | 356.2 | 420.6 |
Gross Unrealized Losses, Less than 12 Months | (28.8) | (30.9) |
Gross Unrealized Losses, 12 Months or Greater | 0 | 0 |
Available-for-sale Securities | 1,623.5 | 1,472.8 |
Fixed Maturities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 18,551.8 | 17,500.4 |
Gross Unrealized Gains | 551.8 | 394.4 |
Gross Unrealized Losses, Less than 12 Months | (134) | (290.6) |
Gross Unrealized Losses, 12 Months or Greater | (106.4) | (126) |
Available-for-sale Securities | 18,863.2 | 17,478.2 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | (18.3) | (15.4) |
Fixed Maturities [Member] | United States Government Securities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 424.1 | 349.5 |
Gross Unrealized Gains | 8.3 | 2 |
Gross Unrealized Losses, Less than 12 Months | 0 | (1.6) |
Gross Unrealized Losses, 12 Months or Greater | 0 | 0 |
Available-for-sale Securities | 432.4 | 349.9 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 |
Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 52.6 | 75.6 |
Gross Unrealized Gains | 1 | 0.5 |
Gross Unrealized Losses, Less than 12 Months | 0 | (0.1) |
Gross Unrealized Losses, 12 Months or Greater | 0 | (0.1) |
Available-for-sale Securities | 53.6 | 75.9 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 |
Fixed Maturities [Member] | States, Municipalities And Political Subdivisions, Tax-Exempt [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 5,904.3 | 5,976.7 |
Gross Unrealized Gains | 327.6 | 284.1 |
Gross Unrealized Losses, Less than 12 Months | (1) | (4) |
Gross Unrealized Losses, 12 Months or Greater | (5.9) | (5.2) |
Available-for-sale Securities | 6,225 | 6,251.6 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 |
Fixed Maturities [Member] | Corporate Securities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 9,270.3 | 8,209.7 |
Gross Unrealized Gains | 159.6 | 61.1 |
Gross Unrealized Losses, Less than 12 Months | (116) | (267.2) |
Gross Unrealized Losses, 12 Months or Greater | (89.2) | (110.5) |
Available-for-sale Securities | 9,224.7 | 7,893.1 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | (18.3) | (15.4) |
Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 1,780.4 | 1,724.5 |
Gross Unrealized Gains | 49.5 | 41.2 |
Gross Unrealized Losses, Less than 12 Months | (3.2) | (7.6) |
Gross Unrealized Losses, 12 Months or Greater | (7) | (7.2) |
Available-for-sale Securities | 1,819.7 | 1,750.9 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 |
Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 358.2 | 407.6 |
Gross Unrealized Gains | 2.8 | 1.4 |
Gross Unrealized Losses, Less than 12 Months | (4) | (4.3) |
Gross Unrealized Losses, 12 Months or Greater | (0.5) | (0.4) |
Available-for-sale Securities | 356.5 | 404.3 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | 0 | 0 |
Fixed Maturities [Member] | Other Debt Securities [Member] | ||
Investments [Line Items] | ||
Cost or Amortized Cost | 761.9 | 756.8 |
Gross Unrealized Gains | 3 | 4.1 |
Gross Unrealized Losses, Less than 12 Months | (9.8) | (5.8) |
Gross Unrealized Losses, 12 Months or Greater | (3.8) | (2.6) |
Available-for-sale Securities | 751.3 | 752.5 |
Non-Credit Component of Other-Than-Temporary Impairments Recognized in Accumulated Other Comprehensive Income | $ 0 | $ 0 |
Investments (Aggregate Fair Val
Investments (Aggregate Fair Value And Gross Unrealized Loss Of Fixed Maturity Securities And Equity Securities In An Unrealized Loss Position) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)securities | Dec. 31, 2015USD ($)securities | |
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 2,592 | 4,060 |
Estimated fair value, less than 12 months | $ 3,816.2 | $ 7,327.4 |
Gross unrealized loss, less than 12 months | $ (162.8) | $ (321.5) |
Number of securities, 12 months or greater | securities | 754 | 587 |
Estimated fair value, 12 months or greater | $ 1,296.1 | $ 840.9 |
Gross unrealized loss, 12 months or greater | $ (106.4) | $ (126) |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 862 | 792 |
Estimated fair value, less than 12 months | $ 265.9 | $ 261.1 |
Gross unrealized loss, less than 12 months | $ (28.8) | $ (30.9) |
Number of securities, 12 months or greater | securities | 2 | 0 |
Estimated fair value, 12 months or greater | $ 0 | $ 0 |
Gross unrealized loss, 12 months or greater | $ 0 | $ 0 |
Fixed Maturities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 1,730 | 3,268 |
Estimated fair value, less than 12 months | $ 3,550.3 | $ 7,066.3 |
Gross unrealized loss, less than 12 months | $ (134) | $ (290.6) |
Number of securities, 12 months or greater | securities | 752 | 587 |
Estimated fair value, 12 months or greater | $ 1,296.1 | $ 840.9 |
Gross unrealized loss, 12 months or greater | $ (106.4) | $ (126) |
Fixed Maturities [Member] | United States Government Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 5 | 48 |
Estimated fair value, less than 12 months | $ 64.3 | $ 248.4 |
Gross unrealized loss, less than 12 months | $ 0 | $ (1.6) |
Number of securities, 12 months or greater | securities | 2 | 2 |
Estimated fair value, 12 months or greater | $ 1 | $ 0.9 |
Gross unrealized loss, 12 months or greater | $ 0 | $ 0 |
Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 1 | 13 |
Estimated fair value, less than 12 months | $ 0.1 | $ 18.3 |
Gross unrealized loss, less than 12 months | $ 0 | $ (0.1) |
Number of securities, 12 months or greater | securities | 2 | 6 |
Estimated fair value, 12 months or greater | $ 2.5 | $ 8.2 |
Gross unrealized loss, 12 months or greater | $ 0 | $ (0.1) |
Fixed Maturities [Member] | States, Municipalities And Political Subdivisions, Tax-Exempt [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 97 | 198 |
Estimated fair value, less than 12 months | $ 179.8 | $ 467.8 |
Gross unrealized loss, less than 12 months | $ (1) | $ (4) |
Number of securities, 12 months or greater | securities | 63 | 43 |
Estimated fair value, 12 months or greater | $ 131.6 | $ 83 |
Gross unrealized loss, 12 months or greater | $ (5.9) | $ (5.2) |
Fixed Maturities [Member] | Corporate Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 1,301 | 2,492 |
Estimated fair value, less than 12 months | $ 2,509.2 | $ 4,912.3 |
Gross unrealized loss, less than 12 months | $ (116) | $ (267.2) |
Number of securities, 12 months or greater | securities | 478 | 372 |
Estimated fair value, 12 months or greater | $ 768.3 | $ 447 |
Gross unrealized loss, 12 months or greater | $ (89.2) | $ (110.5) |
Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 122 | 298 |
Estimated fair value, less than 12 months | $ 201 | $ 668.3 |
Gross unrealized loss, less than 12 months | $ (3.2) | $ (7.6) |
Number of securities, 12 months or greater | securities | 155 | 119 |
Estimated fair value, 12 months or greater | $ 266.7 | $ 186.3 |
Gross unrealized loss, 12 months or greater | $ (7) | $ (7.2) |
Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 45 | 66 |
Estimated fair value, less than 12 months | $ 143.4 | $ 263 |
Gross unrealized loss, less than 12 months | $ (4) | $ (4.3) |
Number of securities, 12 months or greater | securities | 18 | 17 |
Estimated fair value, 12 months or greater | $ 39.4 | $ 38.5 |
Gross unrealized loss, 12 months or greater | $ (0.5) | $ (0.4) |
Fixed Maturities [Member] | Other Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Number of securities, less than 12 months | securities | 159 | 153 |
Estimated fair value, less than 12 months | $ 452.5 | $ 488.2 |
Gross unrealized loss, less than 12 months | $ (9.8) | $ (5.8) |
Number of securities, 12 months or greater | securities | 34 | 28 |
Estimated fair value, 12 months or greater | $ 86.6 | $ 77 |
Gross unrealized loss, 12 months or greater | $ (3.8) | $ (2.6) |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Fixed Maturity Securities, By Contractual Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized Cost | $ 19,847.9 | $ 18,583.5 |
Available-for-sale securities, Estimated Fair Value | 20,486.7 | 18,951 |
Fixed Maturities [Member] | ||
Schedule of Investments [Line Items] | ||
Due in one year or less, Amortized Cost | 353.6 | |
Due after one year through five years, Amortized Cost | 4,997.4 | |
Due after five years through ten years, Amortized Cost | 5,398.9 | |
Due after ten years, Amortized Cost | 5,663.3 | |
Mortgage-backed securities, Amortized Cost | 2,138.6 | |
Available-for-sale securities, Amortized Cost | 18,551.8 | 17,500.4 |
Due in one year or less, Estimated Fair Value | 355.4 | |
Due after one year through five years, Estimated Fair Value | 5,001 | |
Due after five years through ten years, Estimated Fair Value | 5,536.7 | |
Due after ten years, Estimated Fair Value | 5,793.9 | |
Mortgage-backed securities, Estimated Fair Value | 2,176.2 | |
Available-for-sale securities, Estimated Fair Value | $ 18,863.2 | $ 17,478.2 |
Investments (Proceeds and Reali
Investments (Proceeds and Realized Gains Losses From Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Investments [Abstract] | ||
Proceeds | $ 3,062.1 | $ 2,925.9 |
Gross realized gains | 121.4 | 133.7 |
Gross realized losses | $ (92.7) | $ (87.2) |
Investments (Securities Lending
Investments (Securities Lending Programs) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | $ 1,455.3 | $ 1,300.9 |
United States Government Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 173.8 | |
Corporate Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 852.4 | |
Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 324.3 | |
Other Debt Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 104.8 | |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 1,338.8 | |
Overnight and Continuous [Member] | United States Government Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 58.1 | |
Overnight and Continuous [Member] | Corporate Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 852.4 | |
Overnight and Continuous [Member] | Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 323.5 | |
Overnight and Continuous [Member] | Other Debt Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 104.8 | |
Less than 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0.5 | |
Less than 30 Days [Member] | United States Government Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0.5 | |
Less than 30 Days [Member] | Corporate Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0 | |
Less than 30 Days [Member] | Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0 | |
Less than 30 Days [Member] | Other Debt Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0 | |
30 to 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 20.6 | |
30 to 90 Days [Member] | United States Government Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 20.5 | |
30 to 90 Days [Member] | Corporate Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0 | |
30 to 90 Days [Member] | Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0.1 | |
30 to 90 Days [Member] | Other Debt Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0 | |
Greater than 90 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 95.4 | |
Greater than 90 Days [Member] | United States Government Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 94.7 | |
Greater than 90 Days [Member] | Corporate Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0 | |
Greater than 90 Days [Member] | Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | 0.7 | |
Greater than 90 Days [Member] | Other Debt Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Collateral received for securities loaned, at carrying value | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | |||
Other-than-temporary impairment losses recognized in income | $ 66.9 | $ 14 | |
Available-for-sale Securities | 20,486.7 | $ 18,951 | |
Fair value of collateral received at time of securities lending transactions | $ 1,455.3 | $ 1,300.9 | |
Securities lending transactions, ratio of fair value of collateral held to securities on loan | 103.00% | 103.00% | |
Securities lending transactions, initial collateral percentage value | 102.00% | 102.00% | |
Energy Sector Fixed Maturity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale Securities | $ 727.4 | $ 777.2 | |
Unrealized Gain (Loss) on Securities | $ (78.6) | $ (172) |
Derivative Financial Instrume41
Derivative Financial Instruments (Notional Amounts, Balance Sheet Location And Estimated Fair Values Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Contractual Notional Amount | $ 25,958.9 | $ 23,376.1 |
Total derivative assets | 287.3 | 329.7 |
Amounts netted | (136.1) | (170.6) |
Net derivative assets | 151.2 | 159.1 |
Total derivative liabilities | (860.8) | (430) |
Amounts netted | 136.1 | 170.6 |
Net derivative liabilities | (724.7) | (259.4) |
Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 1,385 | 1,385 |
Hedging Instrument [Member] | Other Assets/Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 6,385 | 6,035 |
Total derivative assets | 17.8 | 22.7 |
Total derivative liabilities | (484.9) | (91.7) |
Hedging Instrument [Member] | Other Assets/Other Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 1,385 | 1,385 |
Total derivative assets | 17.8 | 7 |
Total derivative liabilities | 0 | (0.8) |
Hedging Instrument [Member] | Other Assets/Other Liabilities [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 5,000 | 4,650 |
Total derivative assets | 0 | 15.7 |
Total derivative liabilities | (484.9) | (90.9) |
Non-Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 19,573.9 | 17,341.1 |
Total derivative assets | 269.5 | 307 |
Total derivative liabilities | (375.9) | (338.3) |
Non-Hedging Instrument [Member] | Other Assets/Other Liabilities [Member] | Options [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 19,107.7 | 16,917.4 |
Total derivative assets | 269.2 | 305.7 |
Total derivative liabilities | (355.1) | (332.1) |
Non-Hedging Instrument [Member] | Equity Securities [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 324 | 271.7 |
Total derivative assets | 0 | 1.2 |
Total derivative liabilities | (20.5) | (6) |
Non-Hedging Instrument [Member] | Equity Securities [Member] | Futures [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 142.2 | 152 |
Total derivative assets | 0.3 | 0.1 |
Total derivative liabilities | $ (0.3) | $ (0.2) |
Derivative Financial Instrume42
Derivative Financial Instruments (Summary Of Outstanding Fair Value Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Contractual Notional Amount | $ 25,958.9 | $ 23,376.1 |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | 1,385 | 1,385 |
Interest Rate Swaps [Member] | 2015 [Member] | Interest Rate Received 4.350% [Member] | Expiration Date August 15, 2020 [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | $ 200 | $ 200 |
Derivative, Fixed Interest Rate | 4.35% | 4.35% |
Investment Options, Expiration Date | Aug. 15, 2020 | Aug. 15, 2020 |
Interest Rate Swaps [Member] | 2014 [Member] | Interest Rate Received 4.350% [Member] | Expiration Date August 15, 2020 [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | $ 150 | $ 150 |
Derivative, Fixed Interest Rate | 4.35% | 4.35% |
Investment Options, Expiration Date | Aug. 15, 2020 | Aug. 15, 2020 |
Interest Rate Swaps [Member] | 2013 [Member] | Interest Rate Received 4.350% [Member] | Expiration Date August 15, 2020 [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | $ 10 | $ 10 |
Derivative, Fixed Interest Rate | 4.35% | 4.35% |
Investment Options, Expiration Date | Aug. 15, 2020 | Aug. 15, 2020 |
Interest Rate Swaps [Member] | 2012 [Member] | Interest Rate Received 4.350% [Member] | Expiration Date August 15, 2020 [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | $ 200 | $ 200 |
Derivative, Fixed Interest Rate | 4.35% | 4.35% |
Investment Options, Expiration Date | Aug. 15, 2020 | Aug. 15, 2020 |
Interest Rate Swaps [Member] | 2012 [Member] | Interest Rate Received 1.875% [Member] | Expiration Date January 15, 2018 [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | $ 625 | $ 625 |
Derivative, Fixed Interest Rate | 1.875% | 1.875% |
Investment Options, Expiration Date | Jan. 15, 2018 | Jan. 15, 2018 |
Interest Rate Swaps [Member] | 2012 [Member] | Interest Rate Received 2.375% [Member] | Expiration Date February 15, 2017 [Member] | ||
Derivative [Line Items] | ||
Contractual Notional Amount | $ 200 | $ 200 |
Derivative, Fixed Interest Rate | 2.375% | 2.375% |
Investment Options, Expiration Date | Feb. 15, 2017 | Feb. 15, 2017 |
Derivative Financial Instrume43
Derivative Financial Instruments (Effect Of Fair Value Hedges On Income Statement) (Details) - Fixed Rate Debt [Member] - Interest Rate Swaps [Member] - Interest Expense [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedge Gain Recognized | $ 2.4 | $ 2.8 |
Hedged Item Loss Recognized | $ (2.4) | $ (2.8) |
Derivative Financial Instrume44
Derivative Financial Instruments (Effect Of Cash Flow Hedges On Financial Statements) (Details) - Forward Starting Pay Fixed Swaps [Member] - Interest Expense [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effective Portion Pretax Hedge Loss Recognized in Other Comprehensive (Loss) Income | $ (409.8) | $ 0 |
Effective Portion Hedge Loss Reclassified from Accumulated Other Comprehensive Income | (1.4) | (1.4) |
Ineffective Portion Hedge Loss Recognized | $ 0 | $ 0 |
Derivative Financial Instrume45
Derivative Financial Instruments (Effect Of Non-Hedging Derivatives On Income Statement And Included In Net Realized Gains (Losses) On Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) Recognized | $ (153.8) | $ (22) |
Derivatives Embedded In Convertible Fixed Maturity Securities | Net Realized Investments Gain Loss [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) Recognized | (23) | |
Interest Rate Swaps [Member] | Net Realized Investments Gain Loss [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) Recognized | (16.9) | (4.6) |
Options [Member] | Net Realized Investments Gain Loss [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) Recognized | (136.4) | 7.2 |
Futures [Member] | Net Realized Investments Gain Loss [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) Recognized | $ (0.5) | $ (1.6) |
Derivative Financial Statement
Derivative Financial Statement (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Collateral posted | $ 327.6 | ||
Collateral received | 46.8 | ||
Contractual Notional Amount | 25,958.9 | $ 23,376.1 | |
Unrecognized loss for all outstanding and terminated cash flow hedges included in accumulated other comprehensive income | 346.6 | $ 35 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Contractual Notional Amount | 5,000 | 4,650 | |
Unrecognized loss for all outstanding and terminated cash flow hedges included in accumulated other comprehensive income | 346.5 | $ 81.1 | |
Total amount of amortization over the next twelve months for all cash flow hedges | $ 14.3 |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements By Level For Assets Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 666.1 | $ 701 |
Available-for-sale Securities | 20,486.7 | 18,951 |
Other invested assets, current | 19.4 | 19.1 |
Securities lending collateral | 1,455.3 | 1,300.4 |
Total assets | 22,914.8 | 21,301.2 |
Total liabilities | (860.8) | (430) |
Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 18,863.2 | 17,478.2 |
Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 432.4 | 349.9 |
Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 53.6 | 75.9 |
Fixed Maturities [Member] | States, Municipalities And Political Subdivisions, Tax-Exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,225 | 6,251.6 |
Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,224.7 | 7,893.1 |
Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,819.7 | 1,750.9 |
Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 356.5 | 404.3 |
Fixed Maturities [Member] | Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 751.3 | 752.5 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,623.5 | 1,472.8 |
Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, current | 19.4 | 19.1 |
Derivatives Excluding Embedded Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives (reported with other assets) | 287.3 | 329.7 |
Derivatives (reported with other liabilities) | (860.8) | (430) |
Level I [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 666.1 | 701 |
Securities lending collateral | 874 | 708.1 |
Total assets | 3,658.4 | 3,165.2 |
Total liabilities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 712.9 | 483.2 |
Level I [Member] | Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 432.4 | 349.9 |
Level I [Member] | Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | States, Municipalities And Political Subdivisions, Tax-Exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 223.8 | 77.6 |
Level I [Member] | Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level I [Member] | Fixed Maturities [Member] | Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 56.7 | 55.7 |
Level I [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,386 | 1,253.8 |
Level I [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, current | 19.4 | 19.1 |
Level I [Member] | Derivatives Excluding Embedded Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives (reported with other assets) | 0 | 0 |
Derivatives (reported with other liabilities) | 0 | 0 |
Level II [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities lending collateral | 581.3 | 592.3 |
Total assets | 18,844.9 | 17,820.2 |
Total liabilities | (860.8) | (430) |
Level II [Member] | Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 17,883.3 | 16,781.3 |
Level II [Member] | Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level II [Member] | Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 53.6 | 75.9 |
Level II [Member] | Fixed Maturities [Member] | States, Municipalities And Political Subdivisions, Tax-Exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,225 | 6,251.6 |
Level II [Member] | Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 8,768.7 | 7,629.3 |
Level II [Member] | Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,819.7 | 1,750.9 |
Level II [Member] | Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 356.5 | 402.4 |
Level II [Member] | Fixed Maturities [Member] | Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 659.8 | 671.2 |
Level II [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 93 | 116.9 |
Level II [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, current | 0 | 0 |
Level II [Member] | Derivatives Excluding Embedded Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives (reported with other assets) | 287.3 | 329.7 |
Derivatives (reported with other liabilities) | (860.8) | (430) |
Level III [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities lending collateral | 0 | 0 |
Total assets | 411.5 | 315.8 |
Total liabilities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 267 | 213.7 |
Level III [Member] | Fixed Maturities [Member] | United States Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | Government Sponsored Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | States, Municipalities And Political Subdivisions, Tax-Exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 232.2 | 186.2 |
Level III [Member] | Fixed Maturities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Level III [Member] | Fixed Maturities [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 1.9 |
Level III [Member] | Fixed Maturities [Member] | Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 34.8 | 25.6 |
Level III [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 144.5 | 102.1 |
Level III [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, current | 0 | 0 |
Level III [Member] | Derivatives Excluding Embedded Options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives (reported with other assets) | 0 | 0 |
Derivatives (reported with other liabilities) | $ 0 | $ 0 |
Fair Value (Reconciliation Of T
Fair Value (Reconciliation Of The Beginning And Ending Balances Of Assets Measured At Fair Value On A Recurring Basis Using Level III Inputs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 315.8 | $ 202.8 |
Total gains (losses) recognized in net income | 1.3 | (0.8) |
Total gains (losses) recognized in accumulated other comprehensive income | (3.5) | 2.7 |
Purchases | 102.2 | 39.9 |
Sales | (3.4) | (5.4) |
Settlements | (10.9) | (13.8) |
Transfers into Level III | 11.9 | 0.7 |
Transfers out of Level III | (1.9) | (3) |
Ending balance | 411.5 | 223.1 |
Change in unrealized losses included in net income related to assets still held | (1.7) | (1.4) |
Corporate Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 186.2 | 144.6 |
Total gains (losses) recognized in net income | (0.9) | (0.2) |
Total gains (losses) recognized in accumulated other comprehensive income | (1.5) | 1.6 |
Purchases | 58 | 32.4 |
Sales | (1) | 0 |
Settlements | (10.9) | (13.6) |
Transfers into Level III | 2.3 | 0.7 |
Transfers out of Level III | 0 | 0 |
Ending balance | 232.2 | 165.5 |
Change in unrealized losses included in net income related to assets still held | (1.7) | (0.6) |
Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1.9 | 3.3 |
Total gains (losses) recognized in net income | 0 | 0 |
Total gains (losses) recognized in accumulated other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | (0.1) |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | (1.9) | 0 |
Ending balance | 0 | 3.2 |
Change in unrealized losses included in net income related to assets still held | 0 | 0 |
Other Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 25.6 | 6.6 |
Total gains (losses) recognized in net income | 0 | 0.2 |
Total gains (losses) recognized in accumulated other comprehensive income | (0.4) | (0.2) |
Purchases | 0 | 0 |
Sales | 0 | (0.9) |
Settlements | 0 | (0.1) |
Transfers into Level III | 9.6 | 0 |
Transfers out of Level III | 0 | (3) |
Ending balance | 34.8 | 2.6 |
Change in unrealized losses included in net income related to assets still held | 0 | 0 |
Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 102.1 | 48.3 |
Total gains (losses) recognized in net income | 2.2 | (0.8) |
Total gains (losses) recognized in accumulated other comprehensive income | (1.6) | 1.3 |
Purchases | 44.2 | 7.5 |
Sales | (2.4) | (4.5) |
Settlements | 0 | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Ending balance | 144.5 | 51.8 |
Change in unrealized losses included in net income related to assets still held | $ 0 | $ (0.8) |
Fair Value (Carrying And Estima
Fair Value (Carrying And Estimated Fair Values by Level Of Financial Instruments Not Recorded At Fair Value On Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, long-term | $ 2,078.3 | $ 2,041.1 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, long-term | 2,078.3 | 2,041.1 |
Short-term borrowings | 540 | 540 |
Commercial paper | 604.9 | 682.2 |
Notes | 14,327.3 | 14,311.6 |
Convertible debentures | 331.5 | 330.7 |
Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, long-term | 2,078.3 | 2,041.1 |
Short-term borrowings | 540 | 540 |
Commercial paper | 604.9 | 682.2 |
Notes | 14,923.5 | 14,523.2 |
Convertible debentures | 983 | 980.1 |
Estimated Fair Value [Member] | Level III [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, long-term | 2,078.3 | 2,041.1 |
Short-term borrowings | 0 | 0 |
Commercial paper | 0 | 0 |
Notes | 0 | 0 |
Convertible debentures | 0 | 0 |
Estimated Fair Value [Member] | Level II [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, long-term | 0 | 0 |
Short-term borrowings | 540 | 540 |
Commercial paper | 604.9 | 682.2 |
Notes | 14,923.5 | 14,523.2 |
Convertible debentures | 983 | 980.1 |
Estimated Fair Value [Member] | Level I [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets, long-term | 0 | 0 |
Short-term borrowings | 0 | 0 |
Commercial paper | 0 | 0 |
Notes | 0 | 0 |
Convertible debentures | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 609 | $ 703.9 |
Effective tax rate | 46.40% | 44.90% |
Health Insurance Provider Fee, increase in nondeductible income tax expense | $ 104.1 | $ 113.3 |
Retirement Benefits (Components
Retirement Benefits (Components Of Net Periodic Benefit (Credit) Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2.8 | $ 3.3 |
Interest cost | 17.3 | 17 |
Expected return on assets | (36.7) | (35.7) |
Recognized actuarial loss | 4.4 | 6.4 |
Settlement loss | 2.4 | 1.3 |
Amortization of prior service credit | (0.1) | (0.2) |
Net periodic (benefit credit) benefit cost | (9.9) | (7.9) |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.4 | 0.5 |
Interest cost | 5.6 | 5.9 |
Expected return on assets | (5.6) | (5.9) |
Recognized actuarial loss | 3.1 | 3.8 |
Settlement loss | 0 | 0 |
Amortization of prior service credit | (3.5) | (3.6) |
Net periodic (benefit credit) benefit cost | $ 0 | $ 0.7 |
Debt (Carrying Value Of Long-te
Debt (Carrying Value Of Long-term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ (399.2) | $ 0 |
Long-term debt, less current portion | $ 14,864.5 | $ 15,324.5 |
Debt (Convertible Debenture Ter
Debt (Convertible Debenture Terms) (Details) - Convertible Debt [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / shares | |
Debt Instrument [Line Items] | |
Outstanding principal amount | $ 513.4 |
Unamortized debt discount | 176 |
Net debt carrying amount | 331.5 |
Equity component carrying amount | $ 186.1 |
Conversion rate (shares of common stock per $1,000 of principal) | 13.5254 |
Effective conversion price (per $1,000 of principal amount) per share | $ / shares | $ 73.9342 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Gain (loss) on extinguishment of debt | $ 0 | $ (3,400,000) | |
Senior revolving credit facility, maximum borrowing capacity | 3,500,000,000 | ||
Repayments of Long-term Debt | 0 | (16,400,000) | |
Derivative, Notional Amount | 25,958,900,000 | $ 23,376,100,000 | |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | (346,600,000) | $ (35,000,000) | |
Equity Unit Purchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Equity Units Issued | 25 | ||
Outstanding principal amount | 1,250,000,000 | ||
Equity Units, stated value per unit (whole dollars) | $ 50 | ||
Equity Units, ownership interest percentage in remarketable subordinated notes | 5.00% | ||
Interest rate, remarketable subordinated notes | 1.90% | ||
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives | On May 1, 2018, if the applicable market value of our common stock is equal to or greater than $207.805 per share, the settlement rate will be 0.2406 shares of our common stock. If the applicable market value of our common stock is less than $207.805 per share but greater than $143.865 per share, the settlement rate will be a number of shares of our common stock equal to $50 (whole dollars) divided by the applicable market value of our common stock. If the applicable market value of common stock is less than or equal to $143.865, the settlement rate will be 0.3476 shares of our common stock. Holders of the Equity Units may elect early settlement at a minimum settlement rate of 0.2406 shares of our common stock for each purchase contract being settled. | ||
Stock purchase contract liability, present value | $ 92,300,000 | ||
Equity Units, contract adjustment payment rate | 3.35% | ||
Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding principal amount | $ 513,400,000 | ||
Bridge Loan [Member] | |||
Debt Instrument [Line Items] | |||
Loan Processing Fee | $ 106,600,000 | ||
Amoritization of bridge facility fees | 31,600,000 | ||
Federal Home Loan Bank Advances [Member] | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank, advances, short-term | $ 540,000,000 | ||
Debt instrument interest rate | 0.438% | ||
Surplus Notes [Member] | Nine Point Zero Zero Zero Percent Due Two Thousand Twenty Seven [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 24,900,000 | ||
Remarketable Subordinated Notes [Member] | One Point Nine Zero Zero Percent Due Two Thousand Twenty Eight [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 1,236,700,000 | ||
Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 13,065,700,000 | ||
Commercial Paper Program | |||
Debt Instrument [Line Items] | |||
Commercial paper authorized | 2,500,000,000 | ||
Commercial paper | $ 604,900,000 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)class_actions | |
Loss Contingencies [Line Items] | |
Gross premium tax rate, state of California | 2.35% |
Possible losses, in excess of established reserves, minimum | $ 0 |
Possible losses, in excess of established reserves, maximum | $ 250 |
In re WellPoint, Inc. Out-of-Network UCR Rates Litigation [Member] | |
Loss Contingency, Quantities [Abstract] | |
Loss Contingency, Pending Claims, Number | class_actions | 11 |
Cyber Attack Incident [Member] | |
Loss Contingency, Quantities [Abstract] | |
Loss Contingency, Pending Claims, Number | 3 |
LossContingencyMotionToDismissNumber | 10 |
Cyber Attack Incident [Member] | Dismissed with prejudice [Member] | |
Loss Contingency, Quantities [Abstract] | |
Loss Contingency, Claims Dismissed, Number | 3 |
Cyber Attack Incident [Member] | Dismissed without prejudice [Member] | |
Loss Contingency, Quantities [Abstract] | |
Loss Contingency, Claims Dismissed, Number | 4 |
Accenture LLP [Member] | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, amount | $ 210 |
International Business Machines Corporation [Member] | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, amount | $ 353.3 |
Capital Stock (Summary of Cash
Capital Stock (Summary of Cash Dividend Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Capital [Abstract] | ||
Declaration date | Feb. 18, 2016 | Jan. 27, 2015 |
Record date | Mar. 10, 2016 | Mar. 10, 2015 |
Payment date | Mar. 25, 2016 | Mar. 25, 2015 |
Common Stock, Dividends, Per Share, Declared | $ 0.650 | $ 0.625 |
Cash dividends per share | $ 0.650 | $ 0.625 |
Total payment | $ 170.7 | $ 166.6 |
Capital Stock (Summary of Share
Capital Stock (Summary of Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased | 5.7 | |
Average price per share | $ 136.88 | |
Aggregate cost | $ 0 | $ 774.1 |
Authorization remaining at the end of each period | $ 4,917.6 |
Capital Stock (Summary of Stock
Capital Stock (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Number of Shares [Roll Forward] | |
Outstanding at beginning of period, Number of Shares | shares | 6 |
Granted, Number of Shares | shares | 1.4 |
Exercised, Number of Shares | shares | (0.8) |
Forfeited or expired, Number of Shares | shares | (0.1) |
Outstanding at end of period, Number of Shares | shares | 6.5 |
Exercisable at end of period, Number of Shares | shares | 3.7 |
Weighted-Average Option Price Per Share [Roll Forward] | |
Outstanding at beginning of period, Weighted-Average Option Price per Share | $ / shares | $ 87.23 |
Granted, Weighted-Average Option Price per Share | $ / shares | 131.83 |
Exercised, Weighted-Average Option Price per Share | $ / shares | 54.20 |
Forfeited or expired, Weighted-Average Option Price per Share | $ / shares | 90.69 |
Outstanding at end of period, Weighted-Average Option Price per Share | $ / shares | 100.84 |
Exercisable at end of period, Weighted-Average Option Price per Share | $ / shares | $ 80.48 |
Outstanding at end of period, Weighted-Average Remaining Contractual Life | 5 years 8 months 23 days |
Exercisable at end of period, Weighted-Average Remaining Contractual Life | 3 years 6 months 25 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 258.9 |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 221.3 |
Capital Stock (Nonvested Restri
Capital Stock (Nonvested Restricted Stock Activity Including Restricted Stock Units) (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restricted Stock Shares and Units [Roll Forward] | ||
Nonvested at Beginning Balance, Restricted Stock Shares and Units | 2.7 | |
Granted, Restricted Stock Shares and Units | 1 | 0.9 |
Vested, Restricted Stock Shares And Units | (1.2) | |
Forfeited, Restricted Stock Shares And Units | (0.1) | |
Nonvested at Ending Balance, Restricted Stock Shares and Units | 2.4 | |
Weighted-Average Grant Date Fair Value Per Share [Roll Forward] | ||
Nonvested at Beginning Balance, Weighted-Average Grant Date Fair Value per Share | $ 101.66 | |
Granted, Weighted-Average Grant Date Fair Value per Share | 131.83 | $ 146.85 |
Vested, Weighted-Average Grant Date Fair Value per Share | 82.63 | |
Forfeited, Weighted-Average Grant Date Fair Value per Share | 116.34 | |
Nonvested at Ending Balance, Weighted-Average Grant Date Fair Value per Share | $ 123.29 |
Capital Stock (Fair Values of O
Capital Stock (Fair Values of Options Granted During The Period Estimated Using Weighted-Average Assumptions) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Capital [Abstract] | ||
Risk-free interest rate | 1.76% | 1.96% |
Volatility factor | 32.00% | 31.00% |
Quarterly dividend yield | 0.491% | 0.425% |
Weighted-average expected life (years) | 4 years 1 month 5 days | 4 years |
Capital Stock (Schedule Of Weig
Capital Stock (Schedule Of Weighted-Average Fair Values Determined For The Periods) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Capital [Abstract] | ||
Options granted during the period | $ 30.55 | $ 33.95 |
Restricted stock awards granted during the period | $ 131.83 | $ 146.85 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Oct. 02, 2014 | |
Option Indexed to Issuer's Equity [Line Items] | ||||
Increase In Stock Repurchase Program Authorization | $ 5,000 | |||
Repurchase and retirement of common stock, shares | 5.7 | |||
Call Option [Member] | ||||
Option Indexed to Issuer's Equity [Line Items] | ||||
Repurchase and retirement of common stock, shares | 1.8 | |||
Average strike price | $ 132.13 | |||
Put Option [Member] | ||||
Option Indexed to Issuer's Equity [Line Items] | ||||
Options indexed to issuer's equity, shares | 4.2 | |||
Options expired unexercised | 2.4 | |||
Equity Unit Purchase Agreements [Member] | ||||
Option Indexed to Issuer's Equity [Line Items] | ||||
Equity Units Issued | 25 | |||
Equity Units, outstanding principal amount | $ 1,250 |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income (Reconciliation Of The Components Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Investments, gross unrealized gains | $ 908 | $ 1,198.8 | |
Investments, gross unrealized losses | (269.2) | (135.5) | |
Investments, net pretax unrealized gains | 638.8 | 1,063.3 | |
Deferred tax liability | (223.2) | (375.3) | |
Net unrealized gains on investments | 415.6 | 688 | |
Non-credit component of other than temporary impairments on investments, unrealized losses | (18.3) | (1.4) | |
Non-credit component of other than temporary impairments on investments, deferred tax asset | 6.6 | 0.5 | |
Net unrealized non-credit component of other than temporary impairments on investments | (11.7) | (0.9) | |
Cash flow hedges, gross unrealized losses | (533.2) | (53.8) | |
Cash flow hedges, deferred tax asset | 186.6 | 18.8 | |
Net unrealized losses on cash flow hedges | (346.6) | (35) | |
Defined benefit pension plans, deferred net actuarial loss | (628.3) | (556.1) | |
Defined benefit pension plans, deferred prior service credits | (0.1) | 2.1 | |
Defined benefit pension plans, deferred tax asset | 247.8 | 220.3 | |
Net unrecognized periodic benefit costs for defined benefit pension plans | (380.6) | (333.7) | |
Postretirement benefit plans, deferred net actuarial loss | (159.6) | (194.8) | |
Postretirement benefit plans, deferred prior service credits | 70.1 | 71.8 | |
Defined benefit pension plans, deferred tax asset | 35.3 | 48.8 | |
Net unrecognized periodic benefit costs for postretirement benefit plans | (54.2) | (74.2) | |
Foreign currency translation adjustments, gross unrealized losses | (7.5) | (9.7) | |
Foreign currency translation adjustments, deferred tax asset | 2.6 | 3.4 | |
Net unrealized losses on foreign currency translation adjustments | (4.9) | (6.3) | |
Accumulated other comprehensive (loss) income | $ (382.4) | $ 237.9 | $ (292.6) |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Other Comprehensive Income (Loss) Reclassification Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net holding gain on investment securities arising during the period, net of tax | $ 147.1 | $ 81.5 |
Reclassification adjustment for net realized loss (gain) on investment securities, net of tax | 25.2 | (21.1) |
Total reclassification adjustment on investments | 172.3 | 60.4 |
Non-credit component of other-than-temporary impairments on investments, net of tax | (1.7) | 3.5 |
Cash flow hedges, holding gain (loss), net of tax | (265.5) | 0.9 |
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax | 3.8 | 4.7 |
Foreign currency translation adjustment, net of tax | 1.3 | (3.5) |
Net (loss) gain recognized in other comprehensive income, net of tax | $ (89.8) | $ 66 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income Reclassification Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) Reclassification Adjustments (Parantheticals) [Abstract] | ||
Net holding gain (loss) on investment securities arising during the period, tax (expense) benefit | $ (85.4) | $ (56.2) |
Reclassification adjustment for net realized gain (loss) on investment securities, tax (expense) benefit | 13.6 | (11.4) |
Non-credit component of other than temporary impairments on investments, tax (expense) benefit | 1.2 | (1.9) |
Cash flow hedges, holding gain (loss), tax (expense) benefit | 142.9 | (0.5) |
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, tax (expense) benefit | (2.4) | (3) |
Foreign currency translation adjustment, tax (expense) benefit | (0.7) | 1.9 |
Net gain recognized in other comprehensive income (loss), tax (expense) benefit | $ 42 | $ (48.3) |
Earnings Per Share (Denominator
Earnings Per Share (Denominator For Basic And Diluted Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Denominator for basic earnings per share - weighted-average shares | 261.8 | 266.6 |
Effect of dilutive securities – employee stock options, non-vested restricted stock awards and convertible debentures | 5.7 | 13.8 |
Denominator for diluted earnings per share | 267.5 | 280.4 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted average shares excluded from denominator for diluted earnings per share because the stock options were anti-dilutive | 1.7 | 0.4 |
Restricted stock units issued under stock incentive plan | 1 | 0.9 |
Restricted stock units excluded from the denominator for diluted earnings per share | 0.5 | 0.5 |
Segment Information (Financial
Segment Information (Financial Data By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Operating revenue | $ 20,309.4 | $ 18,851.4 |
Operating gain (loss) | 1,570.4 | 1,579.3 |
Commercial and Specialty Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating revenue | 9,509.8 | 9,366.9 |
Operating gain (loss) | 1,293 | 1,267 |
Government Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating revenue | 10,793.9 | 9,480.1 |
Operating gain (loss) | 325 | 324.4 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating revenue | 5.7 | 4.4 |
Operating gain (loss) | $ (47.6) | $ (12.1) |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Reportable Segments Operating Revenues To Total Revenues Reported In The Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting [Abstract] | ||
Reportable segments operating revenues | $ 20,309.4 | $ 18,851.4 |
Net investment income | 171.1 | 167.6 |
Net realized (losses) gains on investments | (125.1) | 46.5 |
Other-than-temporary impairment losses recognized in income | (66.9) | (14) |
Total revenues | $ 20,288.5 | $ 19,051.5 |
Segment Information (Reconcil70
Segment Information (Reconciliation Of Reportable Segments Operating Gain To Income Before Income Tax Expense Included In The Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting [Abstract] | ||
Reportable segments operating gain | $ 1,570.4 | $ 1,579.3 |
Net investment income | 171.1 | 167.6 |
Net realized (losses) gains on investments | (125.1) | 46.5 |
Other-than-temporary impairment losses recognized in income | (66.9) | (14) |
Interest expense | (187.1) | (154.4) |
Amortization of other intangible assets | (50.4) | (52.5) |
Loss on extinguishment of debt | 0 | (3.4) |
Income before income tax expense | $ 1,312 | $ 1,569.1 |