Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ASSURANT INC | |
Entity Central Index Key | 0001267238 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Trading Symbol | AIZ | |
Entity Common Stock, Shares Outstanding | 61,474,682 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Investments: | |||
Fixed maturity securities available for sale, at fair value (amortized cost - $11,042.5 and $10,834.0 at March 31, 2019 and December 31, 2018, respectively) | $ 11,834.6 | $ 11,257.1 | |
Equity securities at fair value | 388.4 | 378.8 | |
Commercial mortgage loans on real estate, at amortized cost | 758.1 | 759.6 | |
Short-term investments | 343.9 | 373.2 | |
Other investments | 658.7 | 635.2 | |
Total investments | 13,983.7 | 13,403.9 | |
Cash and cash equivalents | 1,274.2 | 1,254 | |
Premiums and accounts receivable, net | 1,695.5 | 1,643.5 | |
Reinsurance recoverables | 9,061.6 | 9,166 | |
Accrued investment income | 130.8 | 125.5 | |
Deferred acquisition costs | 5,371.5 | 5,103 | |
Property and equipment, at cost less accumulated depreciation | 409.8 | 392.5 | |
Tax receivable | 10.7 | 36.3 | |
Goodwill | 2,331.2 | 2,321.8 | |
Value of business acquired | 2,858.1 | 3,157.8 | |
Other intangible assets, net | 606.5 | 622.4 | |
Other assets | 644.6 | 567.5 | |
Assets held in separate accounts | 1,801.1 | 1,609.7 | |
Assets of consolidated investment entities | [1] | 2,057.7 | 1,685.4 |
Total assets | 42,237 | 41,089.3 | |
Liabilities | |||
Future policy benefits and expenses | 9,310.8 | 9,240.9 | |
Unearned premiums | 15,638.7 | 15,648 | |
Claims and benefits payable | 2,750.6 | 2,813.7 | |
Commissions payable | 336.4 | 338.6 | |
Reinsurance balances payable | 319.3 | 330.9 | |
Funds held under reinsurance | 294 | 272 | |
Deferred gains on disposal of businesses | 45.4 | 53.1 | |
Accounts payable and other liabilities | 2,461.2 | 2,187.4 | |
Debt | 2,006.6 | 2,006 | |
Liabilities related to separate accounts | 1,801.1 | 1,609.7 | |
Liabilities of consolidated investment entities | [1] | 1,801.2 | 1,455.1 |
Total liabilities | 36,765.3 | 35,955.4 | |
Commitments and contingencies (Note 17) | |||
Stockholders’ equity | |||
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, 2,875,000 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018 | 2.9 | 2.9 | |
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 161,448,903 and 161,153,454 shares issued and 61,678,749 and 61,908,979 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 1.6 | 1.6 | |
Additional paid-in capital | 4,496 | 4,495.6 | |
Retained earnings | 5,879.7 | 5,759.7 | |
Accumulated other comprehensive income (loss) | 103.4 | (155.4) | |
Treasury stock, at cost; 99,659,705 and 99,244,475 shares at March 31, 2019 and December 31, 2018, respectively | (5,043) | (4,992.4) | |
Total Assurant, Inc. stockholders’ equity | 5,440.6 | 5,112 | |
Non-controlling interests | 31.1 | 21.9 | |
Total equity | 5,471.7 | 5,133.9 | |
Total liabilities and equity | $ 42,237 | $ 41,089.3 | |
[1] | The following table presents information on assets and liabilities related to consolidated investment entities as of March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 (in millions) Assets Cash and cash equivalents $ 110.4 $ 62.6 Investments, at fair value 1,909.2 1,576.2 Other receivables 38.1 46.6 Total assets $ 2,057.7 $ 1,685.4 Liabilities Collateralized loan obligation notes, at fair value 1,603.6 1,316.7 Other liabilities 197.6 138.4 Total liabilities $ 1,801.2 $ 1,455.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Assets | |||
Cash and cash equivalents | $ 110.4 | $ 62.6 | |
Investments, at fair value | 1,909.2 | 1,576.2 | |
Other receivables | 38.1 | 46.6 | |
Total assets | [1] | 2,057.7 | 1,685.4 |
Liabilities | |||
Collateralized loan obligation notes, at fair value | 1,603.6 | 1,316.7 | |
Other liabilities | 197.6 | 138.4 | |
Total liabilities | [1] | 1,801.2 | 1,455.1 |
Fixed maturity securities available for sale, amortized cost | $ 11,042.5 | $ 10,834 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |
Common Stock, Shares, Issued | 161,448,903 | 161,153,454 | |
Common stock, shares outstanding (in shares) | 61,678,749 | 61,908,979 | |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 2,875,000 | 2,875,000 | |
Preferred stock, shares issued (in shares) | 2,875,000 | 2,875,000 | |
Preferred stock, shares outstanding (in shares) | 2,875,000 | 2,875,000 | |
Treasury stock, at cost (in shares) | 99,659,705 | 99,244,475 | |
Preferred Stock | |||
Liabilities | |||
Share interest rate | 6.50% | ||
[1] | The following table presents information on assets and liabilities related to consolidated investment entities as of March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 (in millions) Assets Cash and cash equivalents $ 110.4 $ 62.6 Investments, at fair value 1,909.2 1,576.2 Other receivables 38.1 46.6 Total assets $ 2,057.7 $ 1,685.4 Liabilities Collateralized loan obligation notes, at fair value 1,603.6 1,316.7 Other liabilities 197.6 138.4 Total liabilities $ 1,801.2 $ 1,455.1 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Net earned premiums | $ 1,904.4 | $ 1,124.9 |
Fees and other income | 328.3 | 364.5 |
Net investment income | 166.3 | 130.2 |
Net realized gains on investments, excluding other-than-temporary impairment losses | 29.1 | 0.5 |
Other-than-temporary impairment losses recognized in earnings | 0.3 | 0 |
Amortization of deferred gains on disposal of businesses | 7.8 | 18.5 |
Total revenues | 2,435.6 | 1,638.6 |
Benefits, losses and expenses | ||
Policyholder benefits | 614.7 | 414.6 |
Amortization of deferred acquisition costs and value of business acquired | 777.3 | 346.4 |
Underwriting, general and administrative expenses | 800.1 | 719.6 |
Interest expense | 26.5 | 21.5 |
Total benefits, losses and expenses | 2,218.6 | 1,502.1 |
Income before provision for income taxes | 217 | 136.5 |
Provision for income taxes | 48.4 | 30.5 |
Net income | 168.6 | 106 |
Less: Net income attributable to non-controlling interests | (2.9) | 0 |
Net income attributable to stockholders | 165.7 | 106 |
Less: Preferred stock dividends | (4.7) | 0 |
Net income attributable to common stockholders | $ 161 | $ 106 |
Earnings Per Common Share | ||
Basic (in dollars per share) | $ 2.57 | $ 1.99 |
Diluted (in dollars per share) | $ 2.52 | $ 1.96 |
Share Data | ||
Weighted average common shares outstanding used in basic per common share calculations (in shares) | 62,594,828 | 53,169,358 |
Plus: Dilutive securities (in shares) | 3,183,117 | 1,020,140 |
Weighted average common shares used in diluted earnings per common share calculations (in shares) | 65,777,945 | 54,189,498 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 168.6 | $ 106 |
Other comprehensive income (loss): | ||
Change in unrealized gains on securities, net of taxes of $(69.0) and $47.8 for the three months ended March 31, 2019 and 2018, respectively | 248.9 | (175.2) |
Change in unrealized gains on derivative transactions, net of taxes of $0.2 and $(5.6) for the three months ended March 31, 2019 and 2018, respectively | (0.3) | 21.1 |
Change in other-than-temporary impairment losses, net of taxes of $0.1 and $0.9 for the three months ended March 31, 2019 and 2018, respectively | (0.2) | (3.5) |
Change in foreign currency translation, net of taxes of $(0.6) and $0.5 for the three months ended March 31, 2019 and 2018, respectively | 10.2 | 9.2 |
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(0.1) for the three months ended March 31, 2019 | 0.2 | 0 |
Total other comprehensive income (loss) | 258.8 | (148.4) |
Total comprehensive income (loss) | 427.4 | (42.4) |
Less: Comprehensive income attributable to non-controlling interests | (2.9) | 0 |
Total comprehensive income (loss) attributable to common stockholders | $ 424.5 | $ (42.4) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Change in unrealized gains on securities, tax | $ (69) | $ 47.8 |
Change in unrealized gains on derivative transactions, tax | 0.2 | (5.6) |
Change in other-than-temporary impairment gains, tax | 0.1 | 0.9 |
Change in foreign currency transaction, tax | (0.6) | $ 0.5 |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, tax | $ (0.1) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Non-controlling Interests | Preferred Stock | Preferred StockAdditional Paid-in Capital |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of change in accounting principles, net of taxes | Accounting Standards Update 2016-01 and 2014-09 | $ 7.5 | $ 41.4 | $ (33.9) | |||||||
Beginning balance at Dec. 31, 2017 | 4,281.5 | $ 0 | $ 1.5 | $ 3,197.9 | 5,697.3 | 234 | $ (4,860.1) | $ 10.9 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock plan exercises | (2.2) | (2.2) | ||||||||
Stock plan compensation expense | 9.6 | 9.6 | ||||||||
Dividends, Common Stock | (29.7) | (29.7) | ||||||||
Net income | 106 | 106 | ||||||||
Issuance of preferred stock | 2.9 | $ 276.4 | $ 273.5 | |||||||
Change in equity of non-controlling interests | 0.3 | 0.3 | ||||||||
Other comprehensive loss | (148.4) | (148.4) | ||||||||
Ending balance at Mar. 31, 2018 | 4,501 | 2.9 | 1.5 | 3,478.8 | 5,815 | 51.7 | (4,860.1) | 11.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of change in accounting principles, net of taxes | (33.9) | |||||||||
Beginning balance at Dec. 31, 2018 | 5,133.9 | 2.9 | 1.6 | 4,495.6 | 5,759.7 | (155.4) | (4,992.4) | 21.9 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock plan exercises | (11.1) | (11.1) | ||||||||
Stock plan compensation expense | 11.5 | 11.5 | ||||||||
Dividends, Common Stock | (37.4) | (37.4) | ||||||||
Acquisition of common stock | (50.6) | (50.6) | ||||||||
Net income | 168.6 | 165.7 | 2.9 | |||||||
Preferred stock dividends | (4.7) | (4.7) | ||||||||
Change in equity of non-controlling interests | 2.7 | (3.6) | 6.3 | |||||||
Other comprehensive loss | 258.8 | 258.8 | ||||||||
Ending balance at Mar. 31, 2019 | $ 5,471.7 | $ 2.9 | $ 1.6 | $ 4,496 | $ 5,879.7 | $ 103.4 | $ (5,043) | $ 31.1 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends (usd per share) | $ 0.60 | $ 0.56 |
Preferred stock dividends (usd per share) | $ 1.63 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Cash Flows [Abstract] | |||
Net income attributable to stockholders | $ 165.7 | $ 106 | |
Noncash revenues, expenses, gains and losses included in income: | |||
Deferred tax expense | 36.6 | 13.5 | |
Amortization of deferred gains on disposal of businesses | (7.8) | (18.5) | |
Depreciation and amortization | 29.7 | 30 | |
Net realized gains on investments | (29.6) | (0.5) | |
Stock based compensation expense | 11.5 | 9.6 | |
Income from real estate joint ventures | (3.3) | (3.6) | |
Changes in operating assets and liabilities: | |||
Change in insurance policy reserves and expenses | 34.9 | (579.4) | |
Change in premiums and accounts receivable | (43.3) | 4.8 | |
Change in reinsurance recoverable | 200.9 | 479.5 | |
Change in reinsurance balance payable | (13.6) | (20.4) | |
Change in funds withheld under reinsurance | 21.2 | (4.8) | |
Change in deferred acquisition costs and value of business acquired | (158) | (43.3) | |
Change in other assets and other liabilities | 17.3 | (202.3) | |
Change in taxes payable | 25.7 | 94 | |
Other | (41.2) | 59.7 | |
Net cash provided by (used in) operating activities | 246.7 | (75.7) | |
Sales of: | |||
Fixed maturity securities available for sale | 597.6 | 742.5 | |
Equity securities | 41.6 | 42.3 | |
Other invested assets | 10.2 | 31.8 | |
Maturities, calls, prepayments, and scheduled redemption of: | |||
Fixed maturity securities available for sale | 135.1 | 156.7 | |
Commercial mortgage loans on real estate | 14 | 56.4 | |
Purchases of: | |||
Fixed maturity securities available for sale | (873) | (723.2) | |
Payments To Acquire Equity Securities | 32.8 | 39.2 | |
Commercial mortgage loans on real estate | (10.7) | (70.4) | |
Other invested assets | (11.2) | (18.5) | |
Property and equipment and other | (32.4) | (16.5) | |
Consolidated investment entities | |||
Purchases of investments | [1] | (489.3) | (301.5) |
Sale of investments | [1] | 172.8 | 106.1 |
Change in short-term investments | 30.6 | 116 | |
Other | 0.3 | (3.4) | |
Net cash (used in) provided by investing activities | (447.2) | 79.1 | |
Financing activities | |||
Issuance of mandatory convertible preferred stock, net of issuance costs | [2] | 0 | 276.4 |
Issuance of debt, net of issuance costs | [3] | 0 | 1,285.8 |
Repayment of debt | [3] | 0 | (350) |
Issuance of collateralized loan obligation notes | [1] | 418.5 | 0 |
Issuance of debt for consolidated investment entities | [1] | 189.1 | 156.6 |
Repayment of debt for consolidated investment entities | [1] | (317.4) | 0 |
Acquisition of common stock | (50) | (7) | |
Common stock dividends paid | (37.4) | (29.7) | |
Preferred stock dividends paid | (4.7) | 0 | |
Withholding on stock based compensation | 13.6 | 6.6 | |
Non-controlling interest | 9.2 | 0.3 | |
Other | 0 | 5 | |
Net cash provided by financing activities | 220.9 | 1,344 | |
Effect of exchange rate changes on cash and cash equivalents | (0.2) | (2.2) | |
Change in cash and cash equivalents | 20.2 | 1,345.2 | |
Cash and cash equivalents at beginning of period | 1,254 | 996.8 | |
Cash and cash equivalents at end of period | $ 1,274.2 | $ 2,342 | |
[1] | Relates to cash flows from our variable interest entities. Refer to Note 8 for further information. | ||
[2] | Refer to Note 14 for additional information. | ||
[3] | Refer to Note 11 for additional information. |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Assurant, Inc. (the “Company”) is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy. The Company operates in North America, Latin America, Europe and Asia Pacific through three operating segments: Global Housing, Global Lifestyle and Global Preneed. The Company partners with clients who are leaders in their industries to provide consumers a diverse range of protection products and services. Through its Global Housing segment, the Company provides lender-placed homeowners insurance; renters insurance and related products (referred to as “Multifamily Housing”); manufactured housing and flood insurance and other specialty products (referred to as “Specialty and Other”). Through its Global Lifestyle segment, the Company provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance (referred to as “Global Financial Services and Other”). Through its Global Preneed segment, the Company provides pre-funded funeral insurance and annuity products. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. The interim financial data as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The unaudited interim Consolidated Financial Statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Lease accounting: On January 1, 2019, the Company adopted the new lease guidance on a modified retrospective basis and therefore did not restate comparative periods. The new guidance requires that entities recognize assets and liabilities associated with leases on the balance sheet and disclose key information about leasing arrangements. The Company and its subsidiaries lease office space and equipment under operating lease arrangements for which the Company is the lessee. Therefore, the primary change at the time of adoption involved the recognition of right-of-use assets and lease liabilities related to operating leases with terms in excess of 12 months in which the Company is the lessee. Upon adoption, the Company elected the package of practical expedients permitted under the transition guidance, which allowed the carryforward of 1) historical lease classifications, 2) the prior assessment on whether a contract is or contains a lease, and 3) initial direct costs for any leases that existed prior to adoption. As of January 1, 2019, the new lease liability and right-of-use asset was $85.3 million and $78.0 million , respectively. Deferred rent liability of $7.3 million , which was required under the previous guidance, was reversed. There was an immaterial impact to equity upon adoption. As of March 31, 2019, the lease liability and right-of-use asset was $81.3 million and $73.0 million , respectively. These balances are included in accounts payable and other liabilities and other assets, respectively, in the consolidated balance sheets. For the three months ended March 31, 2019, the operating lease cost recognized for leases with terms in excess of 12 months was $5.8 million and related cash outflows reducing the lease liability was $5.1 million . At March 31, 2019, the weighted average remaining lease term and discount rate was 6.8 years and 4.5% , respectively. Not Yet Adopted Reporting credit losses of assets held at amortized cost : In June 2016, the FASB issued amended guidance on reporting credit losses for assets held at amortized cost and available for sale debt securities. For assets held at amortized cost, the amended guidance eliminates the probable recognition threshold and instead requires an entity to reflect the current estimate of all expected credit losses. For available for sale debt securities, credit losses will be measured in a manner similar to current accounting requirements; however, the amended guidance requires that credit losses be presented as an allowance rather than as a permanent impairment. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company expects to adopt the amended guidance on its effective date of January 1, 2020. The Company is evaluating the requirements of this amended guidance and the potential impact on the Company’s financial position and results of operations. While the Company expects an increase in its allowances for credit losses related to financial assets within scope of the standard, principally reinsurance receivables and commercial mortgage loans on real estate, the amount of the allowance will be dependent on the asset composition and economic conditions at that time of adoption. Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract : In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. For these arrangements, the guidance also limits the period to expense capitalized implementation costs based on the term of the hosting agreement, including the noncancellable period of the arrangement plus periods covered by options to extend the arrangement that are reasonably certain of exercise. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The guidance is required to be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is evaluating the requirements of this guidance and the potential impact on the Company’s financial position and results of operations. Targeted improvements to the accounting for long-duration contracts : In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on an upper-medium grade (low credit risk) fixed-income instruments instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions TWG Acquisition On May 31, 2018 (the “Acquisition Date”), the Company acquired TWG for total consideration of $2.47 billion . This amount included $894.9 million in cash, the repayment of TWG’s $595.9 million pre-existing debt and issuance of $975.5 million of Assurant, Inc. common stock. As a result, the equityholders of TWG, including TPG Capital, received a total of 10.4 million shares of Assurant, Inc. common stock. TWG specializes in the underwriting, administration and marketing of service contracts on a wide variety of consumer goods, including automobiles, consumer electronics and major home appliances. Fair Value of Net Assets Acquired and Liabilities Assumed The fair values listed below are estimates and are subject to adjustment, including assessment of the value of business acquired (“VOBA”) and other intangible assets, as well as certain components of deferred tax liabilities included within accounts payable and other liabilities. The initial accounting included certain provisional amounts recorded as of June 30, 2018 (the end of the reporting period in which the acquisition occurred). During the measurement period (which includes the period from June 1, 2018 to March 31, 2019), the Company made adjustments to the provisional amounts to reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, which, if known, would have affected the measurement of the amounts recognized as of that date. Such adjustments impacted certain identifiable assets acquired and liabilities assumed, resulting in a net increase to total identifiable net assets acquired and a corresponding decrease in goodwill of $36.1 million . The adjustments to income that would have been recognized in previous periods if the measurement period adjustments had been completed as of the Acquisition Date were immaterial. The Company may recognize additional measurement period adjustments to the provisional amounts in future periods, but no later than one year from the Acquisition Date. Assets acquired and (liabilities) assumed (updated as of March 31, 2019) Fixed maturity securities available for sale $ 2,268.8 Equity securities 49.4 Short-term investments 165.5 Other investments 100.9 Cash and cash equivalents 380.1 Premiums and accounts receivable, net 285.7 Reinsurance recoverables 1,916.9 Accrued investment income 31.6 Property and equipment 15.4 Value of business acquired 3,973.0 Other intangible assets 459.7 Other assets 200.5 Unearned premiums and contract fees (7,521.3 ) Claims and benefits payable (418.2 ) Reinsurance balances payable (186.1 ) Funds held under reinsurance (202.2 ) Accounts payable and other liabilities (479.3 ) Non-controlling interest (1.8 ) Total identifiable net assets acquired 1,038.6 Goodwill 1,427.7 Total acquisition consideration $ 2,466.3 Total goodwill of $1.43 billion is mainly attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. VOBA and Other Intangible Assets The following table shows the preliminary purchase price allocation to VOBA and other intangible assets, including the effect of measurement period adjustments to provisional estimates as described above. Amount Value of business acquired (1) $ 3,973.0 Finite life (1): Customer related intangibles (distribution network) $ 390.3 Technology based intangibles 57.8 Total finite life other intangible assets 448.1 Indefinite life: Contract based intangibles 11.6 Total other intangible assets $ 459.7 (1) Refer to future estimated amortization table below for the amortization pattern of VOBA and other intangible assets with finite lives. Total amortization of VOBA related to TWG was $298.4 million for the three months ended March 31, 2019. Total amortization of other intangible assets related to TWG was $4.5 million for the three months ended March 31, 2019. At March 31, 2019, the estimated amortization of VOBA and other intangible assets with finite lives related to TWG for the remainder of 2019, the next five years and thereafter is as follows: Year VOBA Other Intangible Assets (with Finite Lives) April 1 - December 31, 2019 $ 785.3 $ 14.0 2020 822.0 26.2 2021 576.0 31.0 2022 353.8 35.0 2023 218.8 36.1 2024 79.0 36.6 Thereafter 7.5 254.2 Total $ 2,842.4 $ 433.1 Acquisition-related Costs Transaction costs related to the acquisition were expensed as incurred. These costs include advisory, legal, accounting, valuation and other professional or consulting fees, as well as general and administrative costs. Transaction costs incurred to date in connection with the acquisition of TWG totaled $40.2 million , including $0.3 million and $5.2 million for the three months ended March 31, 2019 and 2018, respectively, which were reported through the underwriting, general and administrative expenses line item in the consolidated statements of operations. As a part of the ongoing integration of TWG’s operations, the Company has incurred, and will continue to incur, costs associated with restructuring systems, processes and workforce. These costs include such items as severance, retention, facilities and consulting. Integration costs incurred to date in connection with the acquisition of TWG totaled $40.9 million , including $10.4 million and $2.3 million |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of March 31, 2019, the Company had four reportable segments, which are defined based on the manner in which our chief operating decision maker, the Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and align to the nature of the products and services offered: • Global Housing: provides lender-placed homeowners insurance; renters insurance and related products (referred to as “Multifamily Housing”); and manufactured housing and flood insurance and other specialty products (referred to as “Specialty and Other”); • Global Lifestyle: provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance (referred to as “Global Financial Services and Other”); • Global Preneed: provides pre-funded funeral insurance and annuity products; and • Corporate and Other: Corporate and Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments, interest income earned from short-term investments held and income (expenses) primarily related to the Company’s frozen benefit plans. Corporate and Other also includes the amortization of deferred gains associated with the sales of businesses through reinsurance agreements, expenses related to the acquisition of TWG, foreign currency gains (losses) from remeasurement of monetary assets and liabilities, the gain or loss on the sale of businesses and other unusual or infrequent items. Additionally, the Corporate and Other segment includes amounts related to the runoff of the Assurant Health business. The following tables summarize selected financial information by segment: Three Months Ended March 31, 2019 Global Housing Global Lifestyle Global Preneed Corporate and Other Consolidated Revenues Net earned premiums $ 460.1 $ 1,428.5 $ 15.8 $ — $ 1,904.4 Fees and other income 39.9 253.1 33.3 2.0 328.3 Net investment income 25.4 58.9 69.1 12.9 166.3 Net realized gains on investments — — — 28.8 28.8 Amortization of deferred gains on disposal of businesses — — — 7.8 7.8 Total revenues 525.4 1,740.5 118.2 51.5 2,435.6 Benefits, losses and expenses Policyholder benefits 198.9 347.2 68.6 — 614.7 Amortization of deferred acquisition costs and value of business acquired 53.9 705.8 17.6 — 777.3 Underwriting, general and administrative expenses 180.7 555.8 16.9 46.7 800.1 Interest expense — — — 26.5 26.5 Total benefits, losses and expenses 433.5 1,608.8 103.1 73.2 2,218.6 Segment income (loss) before provision (benefit) for income tax 91.9 131.7 15.1 (21.7 ) 217.0 Provision (benefit) for income taxes 19.2 31.1 3.3 (5.2 ) 48.4 Segment income (loss) after taxes 72.7 100.6 11.8 (16.5 ) 168.6 Less: Net income attributable to non-controlling interests — — — (2.9 ) (2.9 ) Net income (loss) attributable to stockholders 72.7 100.6 11.8 (19.4 ) 165.7 Less: Preferred stock dividends — — — (4.7 ) (4.7 ) Net income (loss) attributable to common stockholders $ 72.7 $ 100.6 $ 11.8 $ (24.1 ) $ 161.0 As of March 31, 2019 Segment assets: $ 3,937.1 $ 21,635.0 $ 7,135.5 $ 9,529.4 $ 42,237.0 Three Months Ended March 31, 2018 Global Housing Global Lifestyle Global Preneed Corporate and Other Consolidated Revenues Net earned premiums $ 436.4 $ 673.6 $ 14.6 $ 0.3 $ 1,124.9 Fees and other income 86.7 244.9 31.6 1.3 364.5 Net investment income 20.2 32.1 65.8 12.1 130.2 Net realized gains on investments — — — 0.5 0.5 Amortization of deferred gains on disposal of businesses — — — 18.5 18.5 Total revenues 543.3 950.6 112.0 32.7 1,638.6 Benefits, losses and expenses Policyholder benefits 169.1 181.6 66.7 (2.8 ) 414.6 Amortization of deferred acquisition costs and value of business acquired 49.6 280.3 16.5 — 346.4 Underwriting, general and administrative expenses 234.9 415.8 16.2 52.7 719.6 Interest expense — — — 21.5 21.5 Total benefits, losses and expenses 453.6 877.7 99.4 71.4 1,502.1 Segment income (loss) before provision for income tax 89.7 72.9 12.6 (38.7 ) 136.5 Provision (benefit) for income taxes 18.5 17.1 2.8 (7.9 ) 30.5 Segment income (loss) after taxes $ 71.2 $ 55.8 $ 9.8 $ (30.8 ) $ 106.0 |
Contract Revenues
Contract Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contracts Revenues | Contract Revenues The Company partners with clients to provide consumers a diverse range of protection products and services. The Company’s revenues from protection products are accounted for as insurance contracts. Revenue from service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expect to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred. The disaggregated revenues included in fees and other income on the consolidated statement of operations are $30.2 million and $76.1 million for Global Housing and $207.6 million and $173.6 million for Global Lifestyle for the three months ended March 31, 2019 and 2018, respectively. Global Housing In the Company’s Global Housing segment, revenues from service contracts and sales of products are primarily from the Company’s Lender-placed Insurance business. Under the Company’s Lender-placed Insurance business, the Company provides loan and claim payment tracking services for lenders. Until the sale of the Mortgage Solutions business on August 1, 2018, the Company previously offered valuation and title services and products across the origination, home equity and default markets, as well as field services, inspection services, restoration and real estate owned (“REO”) asset management services to mortgage servicing clients and investors. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer. Global Lifestyle In the Company’s Global Lifestyle segment, revenue from service contracts and sales of products is primarily from the Company’s Connected Living business. Through partnerships with mobile carriers, the Company provides administrative services related to its mobile device protection products including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer. The Company also sells repaired or refurbished mobile and other electronic devices. Revenue from products sold is recognized when risk of ownership transfers to customers, generally upon shipment. Each product has a standalone selling price that is determined through analysis of various factors including market data, historical costs and product lifecycle status. Payments are generally due prior to shipment or within a short-term period. Contract Balances The receivables and unearned revenue under these contracts were $169.0 million and $95.4 million , respectively, as of March 31, 2019, and $183.7 million and $88.7 million , respectively, as of December 31, 2018. These balances are included in premiums and accounts receivable and the accounts payable and other liabilities, respectively, in the consolidated balance sheets. Revenue from service contracts and sales of products recognized during the three months ended March 31, 2019 that was included in unearned revenue as of December 31, 2018 was $15.6 million . In certain circumstances, the Company defers upfront commissions and other costs in connection with client contracts in excess of one year where the Company can demonstrate future economic benefit. For these contracts, expense is recognized as revenues are earned. The Company periodically assesses recoverability based on the performance of the related contracts. As of March 31, 2019 and December 31, 2018, the Company has approximately $27.6 million and $29.0 million |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) included within AOCI of the Company’s fixed maturity securities as of the dates indicated: March 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (1) Fixed maturity securities: U.S. government and government agencies and authorities $ 308.0 $ 5.3 $ (0.6 ) $ 312.7 $ — States, municipalities and political subdivisions 236.5 21.8 (0.1 ) 258.2 — Foreign governments 877.7 84.1 (0.7 ) 961.1 — Asset-backed 485.9 0.7 (4.1 ) 482.5 — Commercial mortgage-backed 206.8 6.6 (1.6 ) 211.8 — Residential mortgage-backed 1,242.1 33.0 (5.8 ) 1,269.3 4.4 U.S. corporate 5,587.2 490.1 (12.0 ) 6,065.3 14.4 Foreign corporate 2,098.3 178.3 (2.9 ) 2,273.7 — Total fixed maturity securities $ 11,042.5 $ 819.9 $ (27.8 ) $ 11,834.6 $ 18.8 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (1) Fixed maturity securities: U.S. government and government agencies and authorities $ 381.4 $ 4.4 $ (1.2 ) $ 384.6 $ — States, municipalities and political subdivisions 238.9 17.6 (0.3 ) 256.2 — Foreign governments 856.3 58.8 (3.0 ) 912.1 — Asset-backed 513.6 0.5 (9.6 ) 504.5 — Commercial mortgage-backed 79.1 2.2 (1.6 ) 79.7 — Residential mortgage-backed 1,399.1 21.5 (14.8 ) 1,405.8 5.0 U.S. corporate 5,337.0 315.7 (59.7 ) 5,593.0 14.1 Foreign corporate 2,028.6 110.7 (18.1 ) 2,121.2 — Total fixed maturity securities $ 10,834.0 $ 531.4 $ (108.3 ) $ 11,257.1 $ 19.1 (1) Represents the amount of OTTI recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date. The Company’s state, municipality and political subdivision holdings are highly diversified across the U.S., with no individual state, municipality or political subdivision exposure (including both general obligation and revenue securities) exceeding 0.3% and 0.4% of the overall investment portfolio as of March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019 and December 31, 2018, the securities included general obligation and revenue bonds issued by states, cities, counties, school districts and similar issuers, including $58.9 million and $58.4 million , respectively, of advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded bonds”), which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest. As of March 31, 2019 and December 31, 2018, revenue bonds accounted for 56% of the holdings. Excluding pre-refunded revenue bonds, the activities supporting the income streams of the Company’s revenue bonds are across a broad range of sectors, primarily water, airport and marina, specifically pledged tax revenues, leases and other miscellaneous sources such as bond banks, finance authorities and appropriations. The Company’s investments in foreign government fixed maturity securities are held mainly in countries and currencies where the Company has policyholder liabilities, to facilitate matching of assets to the related liabilities. As of March 31, 2019, approximately 55% , 19% and 7% of the foreign government securities were held in Canadian government/provincials and the governments of Brazil and the United Kingdom, respectively. As of December 31, 2018, approximately 55% , 18% and 8% of the foreign government securities were held in Canadian government/provincials and the governments of Brazil and the United Kingdom, respectively. No other country represented more than 6% of the Company’s foreign government securities as of March 31, 2019 and December 31, 2018. The Company had European investment exposure in its corporate fixed maturity securities of $813.6 million with a net unrealized gain of $46.4 million as of March 31, 2019 and $800.9 million with a net unrealized gain of $27.7 million as of December 31, 2018. Approximately 28% and 27% of the corporate fixed maturity European exposure was held in the financial industry as of March 31, 2019 and December 31, 2018, respectively. The Company’s largest European country exposure (the United Kingdom) represented approximately 4% and 5% of the fair value of the Company’s corporate fixed maturity securities as of March 31, 2019 and December 31, 2018, respectively. The Company’s international investments are managed as part of the overall portfolio with the same approach to risk management and focus on diversification. The cost or amortized cost and fair value of fixed maturity securities as of March 31, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Cost or Amortized Cost Fair Value Due in one year or less $ 334.7 $ 336.5 Due after one year through five years 2,724.5 2,783.3 Due after five years through ten years 2,290.5 2,406.6 Due after ten years 3,758.0 4,344.6 Total 9,107.7 9,871.0 Asset-backed 485.9 482.5 Commercial mortgage-backed 206.8 211.8 Residential mortgage-backed 1,242.1 1,269.3 Total $ 11,042.5 $ 11,834.6 The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations for the periods indicated: Three Months Ended March 31, 2019 2018 Net realized gains (losses) related to sales and other: Fixed maturity securities $ (0.3 ) $ (2.6 ) Equity securities (1) 29.9 2.2 Other investments (0.1 ) 1.3 Consolidated investment entities (2) (0.4 ) (0.4 ) Total net realized gains related to sales and other 29.1 0.5 Net realized losses related to other-than-temporary impairments: Fixed maturity securities (0.3 ) — Total net realized gains $ 28.8 $ 0.5 (1) Three months ended March 31, 2019 and 2018 includes $10.4 million and $7.8 million , respectively, of gains on equity investment holdings accounted for under the measurement alternative. (2) Consists of net realized gains (losses) from the change in fair value of the Company’s direct investment in collateralized loan obligations (“CLOs”). Refer to Note 8 for additional information. The following table sets forth the portion of unrealized gains (losses) related to equity securities during the three months ended March 31, 2019: Three Months Ended March 31, 2019 2018 Net gains recognized on equity securities $ 29.9 $ 2.2 Less: Net realized gains (losses) related to sales of equity securities (1.0 ) 2.0 Total net unrealized gains on equity securities held $ 30.9 $ 0.2 The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. government and government agencies and authorities $ — $ — $ 72.8 $ (0.6 ) $ 72.8 $ (0.6 ) States, municipalities and political subdivisions — — 3.3 (0.1 ) 3.3 (0.1 ) Foreign governments 88.5 (0.7 ) — — 88.5 (0.7 ) Asset-backed 282.1 (3.7 ) 47.5 (0.4 ) 329.6 (4.1 ) Commercial mortgage-backed — — 20.0 (1.6 ) 20.0 (1.6 ) Residential mortgage-backed 18.6 (0.1 ) 346.2 (5.7 ) 364.8 (5.8 ) U.S. corporate 232.8 (6.0 ) 206.8 (6.0 ) 439.6 (12.0 ) Foreign corporate 102.8 (1.4 ) 69.6 (1.5 ) 172.4 (2.9 ) Total fixed maturity securities $ 724.8 $ (11.9 ) $ 766.2 $ (15.9 ) $ 1,491.0 $ (27.8 ) December 31, 2018 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. government and government agencies and authorities $ 11.2 $ (0.1 ) $ 89.5 $ (1.1 ) $ 100.7 $ (1.2 ) States, municipalities and political subdivisions 31.5 (0.1 ) 3.1 (0.2 ) 34.6 (0.3 ) Foreign governments 136.4 (2.8 ) 9.2 (0.2 ) 145.6 (3.0 ) Asset-backed 370.6 (9.6 ) — — 370.6 (9.6 ) Commercial mortgage-backed 29.4 (0.7 ) 12.4 (0.9 ) 41.8 (1.6 ) Residential mortgage-backed 378.2 (3.7 ) 309.6 (11.1 ) 687.8 (14.8 ) U.S. corporate 1,860.4 (49.5 ) 173.1 (10.2 ) 2,033.5 (59.7 ) Foreign corporate 706.6 (12.9 ) 149.5 (5.2 ) 856.1 (18.1 ) Total fixed maturity securities $ 3,524.3 $ (79.4 ) $ 746.4 $ (28.9 ) $ 4,270.7 $ (108.3 ) Total gross unrealized losses represented approximately 2% and 3% of the aggregate fair value of the related securities as of March 31, 2019 and December 31, 2018, respectively. Approximately 43% and 73% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of March 31, 2019 and December 31, 2018, respectively. The total gross unrealized losses are comprised of 899 and 2,642 individual securities as of March 31, 2019 and December 31, 2018, respectively. In accordance with its policy, the Company concluded that for these securities, other-than-temporary impairments of the gross unrealized losses was not warranted as of March 31, 2019 and December 31, 2018. The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. and Canada. As of March 31, 2019, approximately 34% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Oregon, and the Canadian province of Ontario. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from $0.1 million to $12.4 million as of March 31, 2019 and from $0.1 million to $12.5 million |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities In the normal course of business, the Company is involved with various types of investment entities that may be considered variable interest entities (“VIEs”). The Company evaluates its involvement with each entity to determine whether consolidation is required. The Company’s maximum risk of loss is limited to the carrying value and unfunded commitments of its investments in the VIEs. Consolidated VIEs One of the Company’s subsidiaries is registered with the U.S. Securities and Exchange Commission (the “SEC”) as an investment adviser. The subsidiary (or one of its affiliates) manages and invests in CLOs and real estate funds and may conduct other forms of investment activities. The Company has determined that the CLOs and real estate fund are VIEs and consolidated each because the Company was deemed to be the primary beneficiary of these entities due to (i) its role a s collateral manager, which gives it the power to direct the activities that most significantly impact the economic performance of the e ntities, and (ii) its economic interest in the entities, which exposes it to losses and the right to receive benefits that could potentially be significant to the entities. In connection with the formation of CLO structures, the Company forms special purpose entities capitalized by contributions from the Company’s wholly owned subsidiaries. Subsequent to capitalization, the special purpose entities purchase senior secured leveraged loans funded by contributions from the Company and a short-term warehousing credit facility. Borrowings from the warehousing credit facility are non-recourse to the Company and are fully repaid once the CLO closes. Additionally, the amounts contributed by the Company to fund the initial capitalization are returned after the CLO closes. The Company may elect to use the return of capital to purchase a direct investment in the CLO. Collateralized Loan Obligations: The CLO entities are collateralized financing entities. The carrying value of the CLO debt equals the fair value of the CLO assets (senior secured leveraged loans) as the assets have more observable fair values. The CLO liabilities are reduced by the beneficial interests the Company retains in the CLO. CLO earnings attributable to the Company’s shareholders are measured by the change in the fair value of the Company’s CLO investments, net investment income earned and investment management and contingent performance fees earned. Investment management fees are reported as a reduction to investment expenses in the consolidated statements of operations. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle the obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligations to satisfy the liabilities of the CLOs. As of March 31, 2019, the Company and its subsidiaries held a range of 43.8% to 100.0% of the most subordinated debt tranches of four CLO entities and 5.0% of senior debt tranches in one CLO entity, which represents a range of 6.0% to 8.8% overall ownership in each of the CLO entities. As of March 31, 2019, a fifth CLO structure was funded with $20.0 million in contributions from the Company’s wholly owned subsidiaries. The carrying value of the Company’s investment in the CLOs that have closed was $90.4 million and $55.2 million in subordinated debt tranches and $21.2 million and $21.0 million in senior debt tranches as of March 31, 2019 and December 31, 2018, respectively. Real Estate Fund: The Company’s real estate fund includes contributions from third party investors, which are recorded as non-controlling interest. Real estate fund earnings attributable to the Company’s shareholders are measured by the net investment income of the real estate fund, which includes the change in fair value of the Company’s investments in the real estate fund and investment management fees earned. The Company has a majority investment in the real estate fund in the form of an equity interest. The carrying value of the Company’s investment in the real estate fund was $99.1 million and $91.5 million as of March 31, 2019 and December 31, 2018, respectively. The Company’s unfunded commitment in the real estate fund was $4.2 million as of March 31, 2019. For all consolidated investment entities, intercompany transactions are eliminated upon consolidation. Fair Value of VIE Assets and Liabilities The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 9 for the definition of the three levels of the fair value hierarchy. The following table presents the Company’s fair value hierarchy for financial assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis as of the dates indicated: March 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 110.4 $ 110.4 (1) $ — $ — Corporate debt securities 1,787.8 — 1,787.8 — Real estate fund 121.4 — — 121.4 Total financial assets $ 2,019.6 $ 110.4 $ 1,787.8 $ 121.4 Financial Liabilities Collateralized loan obligation notes $ 1,603.6 $ — $ 1,603.6 $ — Total financial liabilities $ 1,603.6 $ — $ 1,603.6 $ — December 31, 2018 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 62.6 $ 62.6 (1) $ — $ — Corporate debt securities 1,464.2 — 1,464.2 — Real estate fund 112.0 — — 112.0 Total financial assets $ 1,638.8 $ 62.6 $ 1,464.2 $ 112.0 Financial Liabilities Collateralized loan obligation notes $ 1,316.7 $ — $ 1,316.7 $ — Total financial liabilities $ 1,316.7 $ — $ 1,316.7 $ — (1) Amounts consist of money market funds. Level 2 Securities Corporate debt securities: These assets are comprised of senior secured leveraged loans. The Company values these securities using estimates of fair value from a pricing service which utilizes the market valuation technique. The primary observable market inputs used by the pricing service are prices of reported trades from dealers. The fair value is calculated using a simple average of the prices received. Collateralized loan obligation notes: As the Company elected the measurement alternative, the carrying value of the CLO debt is set equal to the fair value of the CLO assets. The CLO notes are classified within Level 2 of the fair value hierarchy, consistent with the classification of the majority of the CLO financial assets. Level 3 Securities Real estate fund: These assets are comprised of investments in limited partnerships whose underlying investments are real estate properties. The market, income and cost approach valuation techniques are used to calculate fair value as appropriate given the type of real estate property, as well as the use of independent external appraisals. Significant unobservable inputs, including capitalization rates, discount rates, market comparables, expense growth rates, leasing assumptions and replacement costs, are used as appropriate to calculate fair value. The following table summarizes the change in balance sheet carrying value associated with Level 3 assets held by consolidated investment entities measured at fair value during the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 2018 Balance, beginning of period $ 112.0 $ 84.7 Total income included in earnings 9.4 2.1 Balance, end of period $ 121.4 $ 86.8 |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with this guidance, the Company has categorized its recurring fair value basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and takes into account factors specific to the asset or liability. The levels of the fair value hierarchy are described below: • Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access. • Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability. • Level 3 inputs are unobservable but are significant to the fair value measurement for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. In such instances, the transfer between levels is reported as of the beginning of the reporting period. The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018. The amounts presented below for short-term investments, other investments, cash equivalents, other receivables, other assets, assets and liabilities held in separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan (“AIP”), American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives. The fair value amount and the majority of the associated levels presented for other investments and assets and liabilities held in separate accounts are received directly from third parties. March 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 312.7 $ — $ 312.7 $ — States, municipalities and political subdivisions 258.2 — 258.2 — Foreign governments 961.1 0.5 960.6 — Asset-backed 482.5 — 457.6 24.9 Commercial mortgage-backed 211.8 — 170.4 41.4 Residential mortgage-backed 1,269.3 — 1,269.3 — U.S. corporate 6,065.3 — 6,053.4 11.9 Foreign corporate 2,273.7 — 2,221.2 52.5 Equity securities: Mutual funds 45.7 45.7 — — Common stocks 20.7 20.0 0.7 — Non-redeemable preferred stocks 322.0 — 319.8 2.2 Short-term investments 305.3 189.4 (2) 115.9 — Other investments 229.9 65.9 (1) 163.6 (3) 0.4 (4) Cash equivalents 507.6 503.6 (2) 4.0 (3) — Other receivables 5.0 — — 5.0 (6) Other assets 1.3 — — 1.3 (5) Assets held in separate accounts 1,766.9 1,587.4 (1) 179.5 (3) — Total financial assets $ 15,039.0 $ 2,412.5 $ 12,486.9 $ 139.6 Financial Liabilities Other liabilities $ 108.0 $ 66.0 (1) $ 0.7 (5) $ 41.3 (6) Liabilities related to separate accounts 1,766.9 1,587.4 (1) 179.5 (3) — Total financial liabilities $ 1,874.9 $ 1,653.4 $ 180.2 $ 41.3 December 31, 2018 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 384.6 $ — $ 384.6 $ — States, municipalities and political subdivisions 256.2 — 256.2 — Foreign governments 912.1 0.5 911.6 — Asset-backed 504.5 — 504.5 — Commercial mortgage-backed 79.7 — 40.8 38.9 Residential mortgage-backed 1,405.8 — 1,405.8 — U.S. corporate 5,593.0 — 5,580.3 12.7 Foreign corporate 2,121.2 — 2,071.7 49.5 Equity securities: Mutual funds 45.0 45.0 — — Common stocks 15.3 14.6 0.7 — Non-redeemable preferred stocks 318.5 — 316.3 2.2 Short-term investments 336.0 188.9 (2) 147.1 — Other investments 224.9 62.9 (1) 161.5 (3) 0.5 (4) Cash equivalents 527.7 523.6 (2) 4.1 (3) — Other receivables 5.0 — — 5.0 (6) Other assets 2.6 — — 2.6 (5) Assets held in separate accounts 1,575.7 1,400.1 (1) 175.6 (3) — Total financial assets $ 14,307.8 $ 2,235.6 $ 11,960.8 $ 111.4 Financial Liabilities Other liabilities $ 104.8 $ 62.9 (1) $ 0.7 (5) $ 41.2 (6) Liabilities related to separate accounts 1,575.7 1,400.1 (1) 175.6 (3) — Total financial liabilities $ 1,680.5 $ 1,463.0 $ 176.3 $ 41.2 (1) Primarily includes mutual funds and related obligations. (2) Primarily includes money market funds. (3) Primarily includes fixed maturity securities and related obligations. (4) Primarily includes fixed maturity securities and other derivatives. (5) Primarily includes other derivative assets and liabilities. (6) Primarily includes contingent consideration receivables/liabilities related to business combinations and dispositions and derivatives. The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated: March 31, 2019 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 758.1 $ 760.6 $ — $ — $ 760.6 Other investments 141.9 141.9 33.6 — 108.3 Other assets 42.4 42.4 — — 42.4 Total financial assets $ 942.4 $ 944.9 $ 33.6 $ — $ 911.3 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 567.6 $ 556.7 $ — $ — $ 556.7 Funds withheld under reinsurance 294.0 294.0 294.0 — — Debt 2,006.6 2,097.3 — 2,097.3 — Total financial liabilities $ 2,868.2 $ 2,948.0 $ 294.0 $ 2,097.3 $ 556.7 December 31, 2018 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 759.6 $ 735.1 $ — $ — $ 735.1 Other investments 124.9 124.9 33.9 — 91.0 Other assets 43.0 43.0 — — 43.0 Total financial assets $ 927.5 $ 903.0 $ 33.9 $ — $ 869.1 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 570.6 $ 556.8 $ — $ — $ 556.8 Funds withheld under reinsurance 272.0 272.0 272.0 — — Debt 2,006.0 2,058.7 — 2,058.7 — Total financial liabilities $ 2,848.6 $ 2,887.5 $ 272.0 $ 2,058.7 $ 556.8 (1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above. Reinsurance Recoverables Credit Disclosures A key credit quality indicator for reinsurance is the A.M. Best financial strength rating of the reinsurer. The A.M. Best ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for new reinsurance agreements where there is material credit exposure are reviewed at the time of execution. The A.M. Best ratings for existing reinsurance agreements are reviewed on a quarterly basis, or sooner based on developments. The A.M. Best ratings have not changed significantly since December 31, 2018. An allowance for doubtful accounts for reinsurance recoverables is recorded on the basis of periodic evaluations of balances due from reinsurers (net of collateral), reinsurer solvency, management’s experience and current economic conditions. The Company carried an allowance for doubtful accounts for reinsurance recoverables of $0.3 million |
Reserves
Reserves | 3 Months Ended |
Mar. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserves | Reserves Reserve Roll Forward The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves. Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively. The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented. For the Three Months Ended March 31, 2019 2018 Claims and benefits payable, at beginning of period $ 2,813.7 $ 3,782.2 Less: Reinsurance ceded and other (2,053.7 ) (3,193.3 ) Net claims and benefits payable, at beginning of period 760.0 588.9 Incurred losses and loss adjustment expenses related to: Current year 645.3 440.4 Prior years (30.4 ) (24.1 ) Total incurred losses and loss adjustment expenses 614.9 416.3 Paid losses and loss adjustment expenses related to: Current year 311.7 213.5 Prior years 300.0 239.3 Total paid losses and loss adjustment expenses 611.7 452.8 Net claims and benefits payable, at end of period 763.2 552.4 Plus: Reinsurance ceded and other (1) 1,987.4 2,642.4 Claims and benefits payable, at end of period (1) (2) $ 2,750.6 $ 3,194.8 (1) Includes reinsurance recoverables and claims and benefits payable of $85.7 million and $121.8 million as of March 31, 2019 and 2018, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. (2) Claims and benefits payable and related reinsurance ceded were reduced by $730.0 million on December 3, 2018 as result of the sale of Time Insurance Company, a legal entity associated with the previously exited Assurant Health business. The Company experienced favorable development in both periods presented in the roll forward table above. Global Lifestyle contributed $31.2 million and $15.4 million to the net favorable development during the three months ended March 31, 2019 and 2018, respectively. The increase in net favorable development in 2019 was primarily attributable to mobile device protection products and business acquired from TWG. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable. Global Housing contributed $2.9 million of net unfavorable development during the three months ended March 31, 2019 and contributed $6.2 million of net favorable development for the three months ended March 31, 2018. The net unfavorable development in 2019 was primarily driven by $3.6 million in adverse development from Hurricanes Michael, Florence and Maria. For the three months ended March 31, 2018, Global Housing experienced net favorable development of $0.7 million from prior catastrophes. Global Preneed, Assurant Health and other contributed $2.1 million and $2.5 million |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized discount and issuance costs as applicable, as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal Amount Carrying Value Floating Rate Senior Notes due March 2021 (1) $ 300.0 $ 298.2 $ 298.1 4.00% Senior Notes due March 2023 350.0 348.2 348.1 4.20% Senior Notes due September 2023 300.0 296.9 296.8 4.90% Senior Notes due March 2028 300.0 297.7 297.6 6.75% Senior Notes due February 2034 375.0 371.0 370.9 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2) 400.0 394.6 394.5 Total debt $ 2,006.6 $ 2,006.0 (1) Bears floating interest at a rate equal to three-month LIBOR plus 1.25% . (2) Bears a 7.00% annual interest rate from March 2018 to March 2028 and annual interest rate equal to three-month LIBOR plus 4.135% thereafter. 2021, 2023 and 2028 Senior Notes: In March 2018, the Company issued three series of senior notes with an aggregate principal amount of $900.0 million . • 2021 Senior Notes : The first series of senior notes is $300.0 million in principal amount, bears floating interest rate equal to three-month LIBOR plus 1.25% ( 4.06% as of March 31, 2019) and is payable in a single installment due March 2021 (“2021 Senior Notes”). Interest on the 2021 Senior Notes is payable quarterly. Commencing on or after March 2019, the Company may redeem the 2021 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. • 2023 Senior Notes : The second series of senior notes is $300.0 million in principal amount, bears interest at 4.20% per year, is payable in a single installment due September 2023 and was issued at a 0.233% discount (“2023 Senior Notes”). Interest on the 2023 Senior Notes is payable semi-annually. Prior to August 2023, the Company may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. • 2028 Senior Notes : The third series of senior notes is $300.0 million in principal amount, bears interest at 4.90% per year, is payable in a single installment due March 2028 and was issued at a 0.383% discount (“2028 Senior Notes”). Interest on the 2028 Senior Notes is payable semi-annually. Prior to December 2027, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part of a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. The interest rate payable on each of the 2021 Senior Notes, the 2023 Senior Notes and the 2028 Senior Notes will be subject to adjustment from time to time, if either Moody’s Investor Service, Inc (“Moody’s”). or S&P Global Ratings (“S&P”) downgrades the credit rating assigned to such series of senior notes to Ba1 or below or to BB+ or below, respectively, or subsequently upgrades the credit ratings once the senior notes are at or below such levels. The following table details the increase in interest rate over the issuance rate by rating with the impact equal to the sum of the number of basis points next to such rating for a maximum increase of 200 basis points over the issuance rate: Rating Agencies Rating Levels Moody’s (1) S&P (1) Interest Rate Increase (2) 1 Ba1 BB+ 25 basis points 2 Ba2 BB 50 basis points 3 Ba3 BB- 75 basis points 4 B1 or below B+ or below 100 basis points (1) Including the equivalent ratings of any substitute rating agency. (2) Applies to each rating agency individually. Subordinated Notes In March 2018, the Company issued fixed-to-floating rate subordinated notes due March 2048 with principal amount of $400.0 million (the “Subordinated Notes”) which bear interest from March 2018 to March 2028, at an annual rate of 7.00% , payable semi-annually. The Subordinated Notes will bear interest at an annual rate equal to three-month LIBOR plus 4.135% , payable quarterly, beginning in June 2028. On or after March 2028, the Company may redeem the Subordinated Notes, in whole at any time or in part from time to time at a redemption price equal to their principal amount plus accrued and unpaid interest; provided that if they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to March 2028, the Company may redeem the Subordinated Notes in whole but not in part after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the global note representing the Subordinated Notes, at a redemption price equal to (i) with respect to the rating agency, 102% of their principal amount and (ii) with respect to a tax event or regulatory capital event, their principal amount plus accrued and unpaid interest. In addition, so long as no event of default with respect to the Subordinated Notes has occurred and is continuing, the Company has the right, on one or more occasions, to defer the payment of interest on the Subordinated Notes for one or more consecutive interest periods for up to five years as described in the global note representing the Subordinated Notes. During a deferral period, interest will continue to accrue on the Subordinated Notes at the then-applicable interest rates. At any time when the Company has given notice of its election to defer interest payments on the Subordinated Notes, the Company generally may not make payments on or redeem or purchase any shares of the Company’s capital stock or any of its debt securities or guarantees that rank upon the Company’s liquidation on a parity with or junior to the Subordinated Notes, subject to certain limited exceptions. The net proceeds from the sale of the Notes were $1.29 billion , after deducting the underwriting discounts and offering expenses. The Company used the proceeds from the 2021 Senior Notes, the 2023 Senior Notes, the 2028 Senior Notes and the Subordinated Notes, together with the proceeds from the issuance of its 6.50% Series D Mandatory Convertible Preferred Stock, par value of $1.00 per share (the “MCPS”), available cash on hand at closing and common stock consideration, to fund the TWG acquisition and pay related fees and expenses. A portion of the aggregate proceeds was used to repay the Company’s then-outstanding $350.0 million of 2.50% Senior Notes upon maturity in March 2018. Other Notes In March 2013, we issued two series of senior notes with an aggregate principal amount of $700.0 million . The first series was $350.0 million in principal amount, bore interest at 2.50% per year and was repaid in a single installment in March 2018. The second series is $350.0 million in principal amount and was issued at a 0.365% discount. This series bears interest at 4.00% per year and is payable in a single installment due March 2023. Interest is payable semi-annually. We may redeem the outstanding series of senior notes in whole or in part at any time and from time to time before maturity at the redemption price set forth in the global note representing the outstanding series of senior notes. In February 2004, we issued senior notes with an aggregate principal amount of $475.0 million at a 0.61% discount, which bear interest at 6.75% per year and are payable in a single installment due February 2034. Interest is payable semiannually. These senior notes are not redeemable prior to maturity. In December 2016, we completed a cash tender offer and purchased $100.0 million in aggregate principal amount of such senior notes. Credit Facility We have a senior unsecured $450.0 million revolving credit agreement (the “Credit Facility”) with a syndicate of banks arranged by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association. The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $450.0 million , which may be increased up to $575.0 million . The Credit Facility is available until December 2022, provided we are in compliance with all covenants. The Credit Facility has a sub-limit for letters of credit issued thereunder of $50.0 million . The proceeds from these loans may be used for our commercial paper program or for general corporate purposes. As of March 31, 2019, no borrowings have been made under the Credit facility, $441.0 million was available under the Credit Facility and $9.0 million letters of credit were outstanding. Interest Rate Derivatives In March 2018, the Company exercised a series of derivative transactions it had entered into in 2017 to hedge the interest rate risk related to expected borrowing to finance the TWG acquisition. The Company determined that the derivatives qualified for hedge accounting as effective cash flow hedges and recognized a deferred gain of $26.7 million upon settlement that was reported through other comprehensive income. The deferred gain is being recognized as a reduction in interest expense related to the 2023 Senior Notes, the 2028 Senior Notes and the Subordinated Notes on an effective yield basis. The amortization of the deferred gain for the three months ended March 31, 2019 was $0.7 million . The remaining deferred gain as of March 31, 2019 was $23.8 million . Additionally, the Company expensed $8.6 million of the premium paid for the derivatives as a component of interest expense for the three months ended March 31, 2018. In March 2018, the Company entered into a three-year interest rate swap under which the Company pays interest on $150.0 million of the 2021 Senior Notes at a fixed rate of 2.72% |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: Three Months Ended March 31, 2019 Foreign currency translation adjustment Net unrealized gains on securities Net unrealized gains on derivative transactions OTTI Unamortized net (losses) on Pension Plans Accumulated other comprehensive income Balance at December 31, 2018 $ (375.6 ) $ 301.0 $ 18.4 $ 15.1 $ (114.3 ) $ (155.4 ) Change in accumulated other comprehensive (loss) income before reclassifications 10.2 247.3 0.3 (0.2 ) — 257.6 Amounts reclassified from accumulated other comprehensive income (loss) — 1.6 (0.6 ) — 0.2 1.2 Net current-period other comprehensive income (loss) 10.2 248.9 (0.3 ) (0.2 ) 0.2 258.8 Balance at March 31, 2019 $ (365.4 ) $ 549.9 $ 18.1 $ 14.9 $ (114.1 ) $ 103.4 Three Months Ended March 31, 2018 Foreign currency translation adjustment Net unrealized gains on securities Net unrealized gains on derivative transactions OTTI Unamortized net (losses) on Pension Plans Accumulated other comprehensive income Balance at December 31, 2017 $ (281.5 ) $ 581.2 $ — $ 17.9 $ (83.6 ) $ 234.0 Change in accumulated other comprehensive (loss) income before reclassifications 9.2 (177.9 ) 21.1 (3.5 ) — (151.1 ) Amounts reclassified from accumulated other comprehensive (loss) income — 2.7 — — — 2.7 Net current-period other comprehensive income (loss) 9.2 (175.2 ) 21.1 (3.5 ) — (148.4 ) Cumulative effect of change in accounting principles (1) — (33.9 ) — — — (33.9 ) Balance at March 31, 2018 $ (272.3 ) $ 372.1 $ 21.1 $ 14.4 $ (83.6 ) $ 51.7 (1) See Note 3 for additional information. The following tables summarize the reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2019 and 2018: Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Three Months Ended March 31, 2019 2018 Net unrealized losses (gains) on securities $ 2.1 $ 3.4 Net realized gains on investments, excluding other-than-temporary impairment losses (0.5 ) (0.7 ) Provision for income taxes $ 1.6 $ 2.7 Net of tax Unrealized gains on derivative transactions $ (0.7 ) $ — Interest Expense 0.1 — Provision for income taxes $ (0.6 ) $ — Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 0.3 $ — (1) (0.1 ) — Provision for income taxes $ 0.2 $ — Net of tax Total reclassifications for the period $ 1.2 $ 2.7 Net of tax (1) |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation Under the Assurant, Inc. 2017 Long-Term Equity Incentive Plan (“ALTEIP”), as amended on May 7, 2019, the Company is authorized to issue up to 1,588,797 new shares of the Company’s common stock to employees, officers and non-employee directors. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights (“SARs”), restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP. Restricted Stock Units The following table shows a summary of RSU activity during the three months ended March 31, 2019 and 2018: Three Months Ended 2019 2018 RSU compensation expense $ 7.0 $ 5.1 Income tax benefit (1.3 ) (0.8 ) RSU compensation expense, net of tax $ 5.7 $ 4.3 RSUs granted 193,842 389,499 Weighted average grant date fair value per unit $ 97.78 $ 90.73 Total fair value of vested RSUs $ 21.8 $ 16.2 As of March 31, 2019, there was $37.2 million of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.5 years. Performance Share Units The following table shows a summary of PSU activity during the three months ended March 31, 2019 and 2018: Three Months Ended 2019 2018 PSU compensation expense $ 4.2 $ 4.2 Income tax benefit (0.6 ) (0.9 ) PSU compensation expense, net of tax $ 3.6 $ 3.3 PSUs granted 246,219 — Weighted average grant date fair value per unit $ 105.23 $ — Total fair value of vested PSUs $ 17.7 $ — As of March 31, 2019, there was $44.3 million of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 1.5 years. |
Equity Transactions
Equity Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |
Equity Transactions | Equity Transactions Stock Repurchase During the three months ended March 31, 2019, the Company repurchased 525,679 shares of the Company’s outstanding common stock at a cost of $50.6 million , exclusive of commissions, leaving $710.6 million remaining under the total repurchase authorization as of March 31, 2019. There were no shares repurchases during the three months ended March 31, 2018. The timing and the amount of future repurchases will depend on market conditions, the Company’s financial condition, results of operations and liquidity and other factors. Issuance of Mandatory Convertible Preferred Stock In March 2018, the Company issued 2,875,000 shares of the MCPS at a public offering price of $100.00 per share. The net proceeds from the sale of the MCPS was $276.4 million after deducting the underwriting discounts and offering expenses. Refer to Note 11 for further details on the use of proceeds from this offering. Each outstanding share of MCPS will convert automatically on March 15, 2021 into between 0.9362 (the “minimum conversion rate”) and 1.1234 shares of common stock, subject to customary anti-dilution adjustments. At any time prior to March 2021, holders may elect to convert each share of MCPS into shares of common stock at the minimum conversion rate or in the event of a fundamental change at the specified rates as defined in the Certificate of Designations of the MCPS. Dividends on our MCPS will be payable on a cumulative basis when, as and if declared, at an annual rate of 6.50% of the liquidation preference of $100.00 per share. The Company may pay declared dividends in cash or, subject to certain limitations, in shares of the Company’s common stock, or in any combination of cash and shares of the Company’s common stock quarterly, commencing in June 2018 and ending in March 2021. No dividend or distribution may be declared or paid on common stock or any other class or series of junior stock, and no common stock or any other class or series of junior stock or parity stock may be purchased, redeemed or otherwise acquired for consideration unless all accumulated and unpaid dividends on the MCPS for all preceding dividend periods have been declared and paid in full, subject to certain limited exceptions. The Company paid preferred stock dividends of $4.7 million |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of PSUs and ESPP using the treasury stock method; and (2) common shares issuable upon conversion of the MCPS using the if-converted method. Refer to Notes 13 and 14 for further information regarding potential common stock issuances. The outstanding RSUs have non-forfeitable rights to dividend equivalents and are therefore included in calculating basic and diluted EPS under the two-class method. Three Months Ended 2019 2018 Numerator Net income attributable to stockholders $ 165.7 $ 106.0 Less: Preferred stock dividends (4.7 ) — Net income attributable to common stockholders 161.0 106.0 Less: Common stock dividends paid (37.4 ) (29.7 ) Undistributed earnings $ 123.6 $ 76.3 Denominator Weighted average common shares outstanding used in basic earnings per common share calculations 62,594,828 53,169,358 Incremental common shares from: PSUs 211,477 308,418 ESPP 1,765 — MCPS 2,969,875 711,722 Weighted average common shares used in diluted earnings per common share calculations 65,777,945 54,189,498 Earnings per common share - Basic Distributed earnings $ 0.60 $ 0.56 Undistributed earnings 1.97 1.43 Net income attributable to common stockholders $ 2.57 $ 1.99 Earnings per common share - Diluted Distributed earnings $ 0.57 $ 0.55 Undistributed earnings 1.95 1.41 Net income attributable to common stockholders $ 2.52 $ 1.96 Average PSUs totaling 102,594 and 4,171 for the three months ended March 31, 2019 and 2018, respectively, and estimated shares issuable under the ESPP of 43,964 |
Retirement and Other Employee B
Retirement and Other Employee Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Retirement and Other Employee Benefits | Retirement and Other Employee Benefits The Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees. The Company also has various non-contributory, non-qualified supplemental plans covering certain employees including the Assurant Executive Pension Plan and the Assurant Supplement Executive Retirement Plan. The qualified and non-qualified plans are referred to as “Pension Benefits” unless otherwise noted. In addition, the Company provides certain life and health care benefits (“Retirement Health Benefits”) for retired employees and their dependents. The Pension Benefits and Retirement Health Benefits (together, the “Plans”) were frozen on March 1, 2016. The following table presents the components of net periodic benefit cost for the Plans for the three months ended March 31, 2019 and 2018: Qualified Pension Benefits Unfunded Non-qualified Pension Benefits Retirement Health Benefits 2019 2018 2019 2018 2019 2018 Interest cost $ 6.5 $ 5.8 $ 0.7 $ 0.7 $ 0.9 $ 0.8 Expected return on plan assets (9.0 ) (9.1 ) — — (0.4 ) (0.5 ) Amortization of net loss — 0.2 0.3 0.5 — — Net periodic benefit cost $ (2.5 ) $ (3.1 ) $ 1.0 $ 1.2 $ 0.5 $ 0.3 The Assurant Pension Plan funded status increased to $70.1 million at March 31, 2019 from $65.1 million (based on the fair value of the assets compared to the accumulated benefit obligation) at December 31, 2018. This equates to a 110% funded status at March 31, 2019 and December 31, 2018. During the first three months of 2019, no cash was contributed to the Assurant Pension Plan. Due to the Assurant Pension Plan’s current funded status, no |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $12.3 million and $13.2 million of letters of credit outstanding as of March 31, 2019 and December 31, 2018, respectively. Legal and Regulatory Matters The Company is involved in a variety of litigation and legal and regulatory proceedings relating to its current and past business operations and, from time to time, it may become involved in other such actions. In particular, the Company is a defendant in class actions in a number of jurisdictions regarding its Lender-placed Insurance programs. These cases assert a variety of claims under a number of legal theories. The plaintiffs typically seek premium refunds and other relief. The Company continues to defend itself vigorously in these class actions. The Company has participated and may participate in settlements on terms that the Company considers reasonable. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. The interim financial data as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The unaudited interim Consolidated Financial Statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Lease accounting: On January 1, 2019, the Company adopted the new lease guidance on a modified retrospective basis and therefore did not restate comparative periods. The new guidance requires that entities recognize assets and liabilities associated with leases on the balance sheet and disclose key information about leasing arrangements. The Company and its subsidiaries lease office space and equipment under operating lease arrangements for which the Company is the lessee. Therefore, the primary change at the time of adoption involved the recognition of right-of-use assets and lease liabilities related to operating leases with terms in excess of 12 months in which the Company is the lessee. Upon adoption, the Company elected the package of practical expedients permitted under the transition guidance, which allowed the carryforward of 1) historical lease classifications, 2) the prior assessment on whether a contract is or contains a lease, and 3) initial direct costs for any leases that existed prior to adoption. As of January 1, 2019, the new lease liability and right-of-use asset was $85.3 million and $78.0 million , respectively. Deferred rent liability of $7.3 million , which was required under the previous guidance, was reversed. There was an immaterial impact to equity upon adoption. As of March 31, 2019, the lease liability and right-of-use asset was $81.3 million and $73.0 million , respectively. These balances are included in accounts payable and other liabilities and other assets, respectively, in the consolidated balance sheets. For the three months ended March 31, 2019, the operating lease cost recognized for leases with terms in excess of 12 months was $5.8 million and related cash outflows reducing the lease liability was $5.1 million . At March 31, 2019, the weighted average remaining lease term and discount rate was 6.8 years and 4.5% , respectively. Not Yet Adopted Reporting credit losses of assets held at amortized cost : In June 2016, the FASB issued amended guidance on reporting credit losses for assets held at amortized cost and available for sale debt securities. For assets held at amortized cost, the amended guidance eliminates the probable recognition threshold and instead requires an entity to reflect the current estimate of all expected credit losses. For available for sale debt securities, credit losses will be measured in a manner similar to current accounting requirements; however, the amended guidance requires that credit losses be presented as an allowance rather than as a permanent impairment. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company expects to adopt the amended guidance on its effective date of January 1, 2020. The Company is evaluating the requirements of this amended guidance and the potential impact on the Company’s financial position and results of operations. While the Company expects an increase in its allowances for credit losses related to financial assets within scope of the standard, principally reinsurance receivables and commercial mortgage loans on real estate, the amount of the allowance will be dependent on the asset composition and economic conditions at that time of adoption. Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract : In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. For these arrangements, the guidance also limits the period to expense capitalized implementation costs based on the term of the hosting agreement, including the noncancellable period of the arrangement plus periods covered by options to extend the arrangement that are reasonably certain of exercise. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The guidance is required to be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is evaluating the requirements of this guidance and the potential impact on the Company’s financial position and results of operations. Targeted improvements to the accounting for long-duration contracts : In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on an upper-medium grade (low credit risk) fixed-income instruments instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | Assets acquired and (liabilities) assumed (updated as of March 31, 2019) Fixed maturity securities available for sale $ 2,268.8 Equity securities 49.4 Short-term investments 165.5 Other investments 100.9 Cash and cash equivalents 380.1 Premiums and accounts receivable, net 285.7 Reinsurance recoverables 1,916.9 Accrued investment income 31.6 Property and equipment 15.4 Value of business acquired 3,973.0 Other intangible assets 459.7 Other assets 200.5 Unearned premiums and contract fees (7,521.3 ) Claims and benefits payable (418.2 ) Reinsurance balances payable (186.1 ) Funds held under reinsurance (202.2 ) Accounts payable and other liabilities (479.3 ) Non-controlling interest (1.8 ) Total identifiable net assets acquired 1,038.6 Goodwill 1,427.7 Total acquisition consideration $ 2,466.3 |
Schedule Of Future Amortization Expense Of VOBA And Intangible Assets Acquired | At March 31, 2019, the estimated amortization of VOBA and other intangible assets with finite lives related to TWG for the remainder of 2019, the next five years and thereafter is as follows: Year VOBA Other Intangible Assets (with Finite Lives) April 1 - December 31, 2019 $ 785.3 $ 14.0 2020 822.0 26.2 2021 576.0 31.0 2022 353.8 35.0 2023 218.8 36.1 2024 79.0 36.6 Thereafter 7.5 254.2 Total $ 2,842.4 $ 433.1 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table shows the preliminary purchase price allocation to VOBA and other intangible assets, including the effect of measurement period adjustments to provisional estimates as described above. Amount Value of business acquired (1) $ 3,973.0 Finite life (1): Customer related intangibles (distribution network) $ 390.3 Technology based intangibles 57.8 Total finite life other intangible assets 448.1 Indefinite life: Contract based intangibles 11.6 Total other intangible assets $ 459.7 (1) Refer to future estimated amortization table below for the amortization pattern of VOBA and other intangible assets with finite lives. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The following tables summarize selected financial information by segment: Three Months Ended March 31, 2019 Global Housing Global Lifestyle Global Preneed Corporate and Other Consolidated Revenues Net earned premiums $ 460.1 $ 1,428.5 $ 15.8 $ — $ 1,904.4 Fees and other income 39.9 253.1 33.3 2.0 328.3 Net investment income 25.4 58.9 69.1 12.9 166.3 Net realized gains on investments — — — 28.8 28.8 Amortization of deferred gains on disposal of businesses — — — 7.8 7.8 Total revenues 525.4 1,740.5 118.2 51.5 2,435.6 Benefits, losses and expenses Policyholder benefits 198.9 347.2 68.6 — 614.7 Amortization of deferred acquisition costs and value of business acquired 53.9 705.8 17.6 — 777.3 Underwriting, general and administrative expenses 180.7 555.8 16.9 46.7 800.1 Interest expense — — — 26.5 26.5 Total benefits, losses and expenses 433.5 1,608.8 103.1 73.2 2,218.6 Segment income (loss) before provision (benefit) for income tax 91.9 131.7 15.1 (21.7 ) 217.0 Provision (benefit) for income taxes 19.2 31.1 3.3 (5.2 ) 48.4 Segment income (loss) after taxes 72.7 100.6 11.8 (16.5 ) 168.6 Less: Net income attributable to non-controlling interests — — — (2.9 ) (2.9 ) Net income (loss) attributable to stockholders 72.7 100.6 11.8 (19.4 ) 165.7 Less: Preferred stock dividends — — — (4.7 ) (4.7 ) Net income (loss) attributable to common stockholders $ 72.7 $ 100.6 $ 11.8 $ (24.1 ) $ 161.0 As of March 31, 2019 Segment assets: $ 3,937.1 $ 21,635.0 $ 7,135.5 $ 9,529.4 $ 42,237.0 Three Months Ended March 31, 2018 Global Housing Global Lifestyle Global Preneed Corporate and Other Consolidated Revenues Net earned premiums $ 436.4 $ 673.6 $ 14.6 $ 0.3 $ 1,124.9 Fees and other income 86.7 244.9 31.6 1.3 364.5 Net investment income 20.2 32.1 65.8 12.1 130.2 Net realized gains on investments — — — 0.5 0.5 Amortization of deferred gains on disposal of businesses — — — 18.5 18.5 Total revenues 543.3 950.6 112.0 32.7 1,638.6 Benefits, losses and expenses Policyholder benefits 169.1 181.6 66.7 (2.8 ) 414.6 Amortization of deferred acquisition costs and value of business acquired 49.6 280.3 16.5 — 346.4 Underwriting, general and administrative expenses 234.9 415.8 16.2 52.7 719.6 Interest expense — — — 21.5 21.5 Total benefits, losses and expenses 453.6 877.7 99.4 71.4 1,502.1 Segment income (loss) before provision for income tax 89.7 72.9 12.6 (38.7 ) 136.5 Provision (benefit) for income taxes 18.5 17.1 2.8 (7.9 ) 30.5 Segment income (loss) after taxes $ 71.2 $ 55.8 $ 9.8 $ (30.8 ) $ 106.0 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI | The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) included within AOCI of the Company’s fixed maturity securities as of the dates indicated: March 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (1) Fixed maturity securities: U.S. government and government agencies and authorities $ 308.0 $ 5.3 $ (0.6 ) $ 312.7 $ — States, municipalities and political subdivisions 236.5 21.8 (0.1 ) 258.2 — Foreign governments 877.7 84.1 (0.7 ) 961.1 — Asset-backed 485.9 0.7 (4.1 ) 482.5 — Commercial mortgage-backed 206.8 6.6 (1.6 ) 211.8 — Residential mortgage-backed 1,242.1 33.0 (5.8 ) 1,269.3 4.4 U.S. corporate 5,587.2 490.1 (12.0 ) 6,065.3 14.4 Foreign corporate 2,098.3 178.3 (2.9 ) 2,273.7 — Total fixed maturity securities $ 11,042.5 $ 819.9 $ (27.8 ) $ 11,834.6 $ 18.8 December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (1) Fixed maturity securities: U.S. government and government agencies and authorities $ 381.4 $ 4.4 $ (1.2 ) $ 384.6 $ — States, municipalities and political subdivisions 238.9 17.6 (0.3 ) 256.2 — Foreign governments 856.3 58.8 (3.0 ) 912.1 — Asset-backed 513.6 0.5 (9.6 ) 504.5 — Commercial mortgage-backed 79.1 2.2 (1.6 ) 79.7 — Residential mortgage-backed 1,399.1 21.5 (14.8 ) 1,405.8 5.0 U.S. corporate 5,337.0 315.7 (59.7 ) 5,593.0 14.1 Foreign corporate 2,028.6 110.7 (18.1 ) 2,121.2 — Total fixed maturity securities $ 10,834.0 $ 531.4 $ (108.3 ) $ 11,257.1 $ 19.1 (1) March 31, 2019 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. government and government agencies and authorities $ — $ — $ 72.8 $ (0.6 ) $ 72.8 $ (0.6 ) States, municipalities and political subdivisions — — 3.3 (0.1 ) 3.3 (0.1 ) Foreign governments 88.5 (0.7 ) — — 88.5 (0.7 ) Asset-backed 282.1 (3.7 ) 47.5 (0.4 ) 329.6 (4.1 ) Commercial mortgage-backed — — 20.0 (1.6 ) 20.0 (1.6 ) Residential mortgage-backed 18.6 (0.1 ) 346.2 (5.7 ) 364.8 (5.8 ) U.S. corporate 232.8 (6.0 ) 206.8 (6.0 ) 439.6 (12.0 ) Foreign corporate 102.8 (1.4 ) 69.6 (1.5 ) 172.4 (2.9 ) Total fixed maturity securities $ 724.8 $ (11.9 ) $ 766.2 $ (15.9 ) $ 1,491.0 $ (27.8 ) December 31, 2018 Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturity securities: U.S. government and government agencies and authorities $ 11.2 $ (0.1 ) $ 89.5 $ (1.1 ) $ 100.7 $ (1.2 ) States, municipalities and political subdivisions 31.5 (0.1 ) 3.1 (0.2 ) 34.6 (0.3 ) Foreign governments 136.4 (2.8 ) 9.2 (0.2 ) 145.6 (3.0 ) Asset-backed 370.6 (9.6 ) — — 370.6 (9.6 ) Commercial mortgage-backed 29.4 (0.7 ) 12.4 (0.9 ) 41.8 (1.6 ) Residential mortgage-backed 378.2 (3.7 ) 309.6 (11.1 ) 687.8 (14.8 ) U.S. corporate 1,860.4 (49.5 ) 173.1 (10.2 ) 2,033.5 (59.7 ) Foreign corporate 706.6 (12.9 ) 149.5 (5.2 ) 856.1 (18.1 ) Total fixed maturity securities $ 3,524.3 $ (79.4 ) $ 746.4 $ (28.9 ) $ 4,270.7 $ (108.3 ) |
Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity | The cost or amortized cost and fair value of fixed maturity securities as of March 31, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Cost or Amortized Cost Fair Value Due in one year or less $ 334.7 $ 336.5 Due after one year through five years 2,724.5 2,783.3 Due after five years through ten years 2,290.5 2,406.6 Due after ten years 3,758.0 4,344.6 Total 9,107.7 9,871.0 Asset-backed 485.9 482.5 Commercial mortgage-backed 206.8 211.8 Residential mortgage-backed 1,242.1 1,269.3 Total $ 11,042.5 $ 11,834.6 |
Net Realized Gains (Losses), Including Other-Than-Temporary Impairments | The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations for the periods indicated: Three Months Ended March 31, 2019 2018 Net realized gains (losses) related to sales and other: Fixed maturity securities $ (0.3 ) $ (2.6 ) Equity securities (1) 29.9 2.2 Other investments (0.1 ) 1.3 Consolidated investment entities (2) (0.4 ) (0.4 ) Total net realized gains related to sales and other 29.1 0.5 Net realized losses related to other-than-temporary impairments: Fixed maturity securities (0.3 ) — Total net realized gains $ 28.8 $ 0.5 (1) Three months ended March 31, 2019 and 2018 includes $10.4 million and $7.8 million , respectively, of gains on equity investment holdings accounted for under the measurement alternative. (2) |
Unrealized Gains on Equity Securities | The following table sets forth the portion of unrealized gains (losses) related to equity securities during the three months ended March 31, 2019: Three Months Ended March 31, 2019 2018 Net gains recognized on equity securities $ 29.9 $ 2.2 Less: Net realized gains (losses) related to sales of equity securities (1.0 ) 2.0 Total net unrealized gains on equity securities held $ 30.9 $ 0.2 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Balances of assets and liabilities held by consolidated investment entities at fair value | The following table presents the Company’s fair value hierarchy for financial assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis as of the dates indicated: March 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 110.4 $ 110.4 (1) $ — $ — Corporate debt securities 1,787.8 — 1,787.8 — Real estate fund 121.4 — — 121.4 Total financial assets $ 2,019.6 $ 110.4 $ 1,787.8 $ 121.4 Financial Liabilities Collateralized loan obligation notes $ 1,603.6 $ — $ 1,603.6 $ — Total financial liabilities $ 1,603.6 $ — $ 1,603.6 $ — December 31, 2018 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 62.6 $ 62.6 (1) $ — $ — Corporate debt securities 1,464.2 — 1,464.2 — Real estate fund 112.0 — — 112.0 Total financial assets $ 1,638.8 $ 62.6 $ 1,464.2 $ 112.0 Financial Liabilities Collateralized loan obligation notes $ 1,316.7 $ — $ 1,316.7 $ — Total financial liabilities $ 1,316.7 $ — $ 1,316.7 $ — (1) March 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 312.7 $ — $ 312.7 $ — States, municipalities and political subdivisions 258.2 — 258.2 — Foreign governments 961.1 0.5 960.6 — Asset-backed 482.5 — 457.6 24.9 Commercial mortgage-backed 211.8 — 170.4 41.4 Residential mortgage-backed 1,269.3 — 1,269.3 — U.S. corporate 6,065.3 — 6,053.4 11.9 Foreign corporate 2,273.7 — 2,221.2 52.5 Equity securities: Mutual funds 45.7 45.7 — — Common stocks 20.7 20.0 0.7 — Non-redeemable preferred stocks 322.0 — 319.8 2.2 Short-term investments 305.3 189.4 (2) 115.9 — Other investments 229.9 65.9 (1) 163.6 (3) 0.4 (4) Cash equivalents 507.6 503.6 (2) 4.0 (3) — Other receivables 5.0 — — 5.0 (6) Other assets 1.3 — — 1.3 (5) Assets held in separate accounts 1,766.9 1,587.4 (1) 179.5 (3) — Total financial assets $ 15,039.0 $ 2,412.5 $ 12,486.9 $ 139.6 Financial Liabilities Other liabilities $ 108.0 $ 66.0 (1) $ 0.7 (5) $ 41.3 (6) Liabilities related to separate accounts 1,766.9 1,587.4 (1) 179.5 (3) — Total financial liabilities $ 1,874.9 $ 1,653.4 $ 180.2 $ 41.3 December 31, 2018 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 384.6 $ — $ 384.6 $ — States, municipalities and political subdivisions 256.2 — 256.2 — Foreign governments 912.1 0.5 911.6 — Asset-backed 504.5 — 504.5 — Commercial mortgage-backed 79.7 — 40.8 38.9 Residential mortgage-backed 1,405.8 — 1,405.8 — U.S. corporate 5,593.0 — 5,580.3 12.7 Foreign corporate 2,121.2 — 2,071.7 49.5 Equity securities: Mutual funds 45.0 45.0 — — Common stocks 15.3 14.6 0.7 — Non-redeemable preferred stocks 318.5 — 316.3 2.2 Short-term investments 336.0 188.9 (2) 147.1 — Other investments 224.9 62.9 (1) 161.5 (3) 0.5 (4) Cash equivalents 527.7 523.6 (2) 4.1 (3) — Other receivables 5.0 — — 5.0 (6) Other assets 2.6 — — 2.6 (5) Assets held in separate accounts 1,575.7 1,400.1 (1) 175.6 (3) — Total financial assets $ 14,307.8 $ 2,235.6 $ 11,960.8 $ 111.4 Financial Liabilities Other liabilities $ 104.8 $ 62.9 (1) $ 0.7 (5) $ 41.2 (6) Liabilities related to separate accounts 1,575.7 1,400.1 (1) 175.6 (3) — Total financial liabilities $ 1,680.5 $ 1,463.0 $ 176.3 $ 41.2 (1) Primarily includes mutual funds and related obligations. (2) Primarily includes money market funds. (3) Primarily includes fixed maturity securities and related obligations. (4) Primarily includes fixed maturity securities and other derivatives. (5) Primarily includes other derivative assets and liabilities. (6) Primarily includes contingent consideration receivables/liabilities related to business combinations and dispositions and derivatives. |
Schedule of carrying values of level 3 assets | The following table summarizes the change in balance sheet carrying value associated with Level 3 assets held by consolidated investment entities measured at fair value during the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 2018 Balance, beginning of period $ 112.0 $ 84.7 Total income included in earnings 9.4 2.1 Balance, end of period $ 121.4 $ 86.8 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Assets and Liabilities | The following table presents the Company’s fair value hierarchy for financial assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis as of the dates indicated: March 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 110.4 $ 110.4 (1) $ — $ — Corporate debt securities 1,787.8 — 1,787.8 — Real estate fund 121.4 — — 121.4 Total financial assets $ 2,019.6 $ 110.4 $ 1,787.8 $ 121.4 Financial Liabilities Collateralized loan obligation notes $ 1,603.6 $ — $ 1,603.6 $ — Total financial liabilities $ 1,603.6 $ — $ 1,603.6 $ — December 31, 2018 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 62.6 $ 62.6 (1) $ — $ — Corporate debt securities 1,464.2 — 1,464.2 — Real estate fund 112.0 — — 112.0 Total financial assets $ 1,638.8 $ 62.6 $ 1,464.2 $ 112.0 Financial Liabilities Collateralized loan obligation notes $ 1,316.7 $ — $ 1,316.7 $ — Total financial liabilities $ 1,316.7 $ — $ 1,316.7 $ — (1) March 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 312.7 $ — $ 312.7 $ — States, municipalities and political subdivisions 258.2 — 258.2 — Foreign governments 961.1 0.5 960.6 — Asset-backed 482.5 — 457.6 24.9 Commercial mortgage-backed 211.8 — 170.4 41.4 Residential mortgage-backed 1,269.3 — 1,269.3 — U.S. corporate 6,065.3 — 6,053.4 11.9 Foreign corporate 2,273.7 — 2,221.2 52.5 Equity securities: Mutual funds 45.7 45.7 — — Common stocks 20.7 20.0 0.7 — Non-redeemable preferred stocks 322.0 — 319.8 2.2 Short-term investments 305.3 189.4 (2) 115.9 — Other investments 229.9 65.9 (1) 163.6 (3) 0.4 (4) Cash equivalents 507.6 503.6 (2) 4.0 (3) — Other receivables 5.0 — — 5.0 (6) Other assets 1.3 — — 1.3 (5) Assets held in separate accounts 1,766.9 1,587.4 (1) 179.5 (3) — Total financial assets $ 15,039.0 $ 2,412.5 $ 12,486.9 $ 139.6 Financial Liabilities Other liabilities $ 108.0 $ 66.0 (1) $ 0.7 (5) $ 41.3 (6) Liabilities related to separate accounts 1,766.9 1,587.4 (1) 179.5 (3) — Total financial liabilities $ 1,874.9 $ 1,653.4 $ 180.2 $ 41.3 December 31, 2018 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 384.6 $ — $ 384.6 $ — States, municipalities and political subdivisions 256.2 — 256.2 — Foreign governments 912.1 0.5 911.6 — Asset-backed 504.5 — 504.5 — Commercial mortgage-backed 79.7 — 40.8 38.9 Residential mortgage-backed 1,405.8 — 1,405.8 — U.S. corporate 5,593.0 — 5,580.3 12.7 Foreign corporate 2,121.2 — 2,071.7 49.5 Equity securities: Mutual funds 45.0 45.0 — — Common stocks 15.3 14.6 0.7 — Non-redeemable preferred stocks 318.5 — 316.3 2.2 Short-term investments 336.0 188.9 (2) 147.1 — Other investments 224.9 62.9 (1) 161.5 (3) 0.5 (4) Cash equivalents 527.7 523.6 (2) 4.1 (3) — Other receivables 5.0 — — 5.0 (6) Other assets 2.6 — — 2.6 (5) Assets held in separate accounts 1,575.7 1,400.1 (1) 175.6 (3) — Total financial assets $ 14,307.8 $ 2,235.6 $ 11,960.8 $ 111.4 Financial Liabilities Other liabilities $ 104.8 $ 62.9 (1) $ 0.7 (5) $ 41.2 (6) Liabilities related to separate accounts 1,575.7 1,400.1 (1) 175.6 (3) — Total financial liabilities $ 1,680.5 $ 1,463.0 $ 176.3 $ 41.2 (1) Primarily includes mutual funds and related obligations. (2) Primarily includes money market funds. (3) Primarily includes fixed maturity securities and related obligations. (4) Primarily includes fixed maturity securities and other derivatives. (5) Primarily includes other derivative assets and liabilities. (6) Primarily includes contingent consideration receivables/liabilities related to business combinations and dispositions and derivatives. |
Carrying Value and Fair Value of the Financial Instruments that are Not recognized or are Not Carried at Fair Value | The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated: March 31, 2019 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 758.1 $ 760.6 $ — $ — $ 760.6 Other investments 141.9 141.9 33.6 — 108.3 Other assets 42.4 42.4 — — 42.4 Total financial assets $ 942.4 $ 944.9 $ 33.6 $ — $ 911.3 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 567.6 $ 556.7 $ — $ — $ 556.7 Funds withheld under reinsurance 294.0 294.0 294.0 — — Debt 2,006.6 2,097.3 — 2,097.3 — Total financial liabilities $ 2,868.2 $ 2,948.0 $ 294.0 $ 2,097.3 $ 556.7 December 31, 2018 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 759.6 $ 735.1 $ — $ — $ 735.1 Other investments 124.9 124.9 33.9 — 91.0 Other assets 43.0 43.0 — — 43.0 Total financial assets $ 927.5 $ 903.0 $ 33.9 $ — $ 869.1 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 570.6 $ 556.8 $ — $ — $ 556.8 Funds withheld under reinsurance 272.0 272.0 272.0 — — Debt 2,006.0 2,058.7 — 2,058.7 — Total financial liabilities $ 2,848.6 $ 2,887.5 $ 272.0 $ 2,058.7 $ 556.8 (1) |
Reserves (Tables)
Reserves (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Roll Forward of Claims and Benefits Payable | The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves. Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively. The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented. For the Three Months Ended March 31, 2019 2018 Claims and benefits payable, at beginning of period $ 2,813.7 $ 3,782.2 Less: Reinsurance ceded and other (2,053.7 ) (3,193.3 ) Net claims and benefits payable, at beginning of period 760.0 588.9 Incurred losses and loss adjustment expenses related to: Current year 645.3 440.4 Prior years (30.4 ) (24.1 ) Total incurred losses and loss adjustment expenses 614.9 416.3 Paid losses and loss adjustment expenses related to: Current year 311.7 213.5 Prior years 300.0 239.3 Total paid losses and loss adjustment expenses 611.7 452.8 Net claims and benefits payable, at end of period 763.2 552.4 Plus: Reinsurance ceded and other (1) 1,987.4 2,642.4 Claims and benefits payable, at end of period (1) (2) $ 2,750.6 $ 3,194.8 (1) Includes reinsurance recoverables and claims and benefits payable of $85.7 million and $121.8 million as of March 31, 2019 and 2018, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. (2) Claims and benefits payable and related reinsurance ceded were reduced by $730.0 million |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized discount and issuance costs as applicable, as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 Principal Amount Carrying Value Floating Rate Senior Notes due March 2021 (1) $ 300.0 $ 298.2 $ 298.1 4.00% Senior Notes due March 2023 350.0 348.2 348.1 4.20% Senior Notes due September 2023 300.0 296.9 296.8 4.90% Senior Notes due March 2028 300.0 297.7 297.6 6.75% Senior Notes due February 2034 375.0 371.0 370.9 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2) 400.0 394.6 394.5 Total debt $ 2,006.6 $ 2,006.0 (1) Bears floating interest at a rate equal to three-month LIBOR plus 1.25% . (2) Bears a 7.00% annual interest rate from March 2018 to March 2028 and annual interest rate equal to three-month LIBOR plus 4.135% |
Schedule of Credit Rating Agencies interest rates | The following table details the increase in interest rate over the issuance rate by rating with the impact equal to the sum of the number of basis points next to such rating for a maximum increase of 200 basis points over the issuance rate: Rating Agencies Rating Levels Moody’s (1) S&P (1) Interest Rate Increase (2) 1 Ba1 BB+ 25 basis points 2 Ba2 BB 50 basis points 3 Ba3 BB- 75 basis points 4 B1 or below B+ or below 100 basis points (1) Including the equivalent ratings of any substitute rating agency. (2) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income, Net of Tax | The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: Three Months Ended March 31, 2019 Foreign currency translation adjustment Net unrealized gains on securities Net unrealized gains on derivative transactions OTTI Unamortized net (losses) on Pension Plans Accumulated other comprehensive income Balance at December 31, 2018 $ (375.6 ) $ 301.0 $ 18.4 $ 15.1 $ (114.3 ) $ (155.4 ) Change in accumulated other comprehensive (loss) income before reclassifications 10.2 247.3 0.3 (0.2 ) — 257.6 Amounts reclassified from accumulated other comprehensive income (loss) — 1.6 (0.6 ) — 0.2 1.2 Net current-period other comprehensive income (loss) 10.2 248.9 (0.3 ) (0.2 ) 0.2 258.8 Balance at March 31, 2019 $ (365.4 ) $ 549.9 $ 18.1 $ 14.9 $ (114.1 ) $ 103.4 Three Months Ended March 31, 2018 Foreign currency translation adjustment Net unrealized gains on securities Net unrealized gains on derivative transactions OTTI Unamortized net (losses) on Pension Plans Accumulated other comprehensive income Balance at December 31, 2017 $ (281.5 ) $ 581.2 $ — $ 17.9 $ (83.6 ) $ 234.0 Change in accumulated other comprehensive (loss) income before reclassifications 9.2 (177.9 ) 21.1 (3.5 ) — (151.1 ) Amounts reclassified from accumulated other comprehensive (loss) income — 2.7 — — — 2.7 Net current-period other comprehensive income (loss) 9.2 (175.2 ) 21.1 (3.5 ) — (148.4 ) Cumulative effect of change in accounting principles (1) — (33.9 ) — — — (33.9 ) Balance at March 31, 2018 $ (272.3 ) $ 372.1 $ 21.1 $ 14.4 $ (83.6 ) $ 51.7 (1) See Note 3 for additional information. |
Reclassification out of Accumulated Other Comprehensive Income | The following tables summarize the reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2019 and 2018: Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Three Months Ended March 31, 2019 2018 Net unrealized losses (gains) on securities $ 2.1 $ 3.4 Net realized gains on investments, excluding other-than-temporary impairment losses (0.5 ) (0.7 ) Provision for income taxes $ 1.6 $ 2.7 Net of tax Unrealized gains on derivative transactions $ (0.7 ) $ — Interest Expense 0.1 — Provision for income taxes $ (0.6 ) $ — Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 0.3 $ — (1) (0.1 ) — Provision for income taxes $ 0.2 $ — Net of tax Total reclassifications for the period $ 1.2 $ 2.7 Net of tax (1) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Based Compensation Activity | The following table shows a summary of RSU activity during the three months ended March 31, 2019 and 2018: Three Months Ended 2019 2018 RSU compensation expense $ 7.0 $ 5.1 Income tax benefit (1.3 ) (0.8 ) RSU compensation expense, net of tax $ 5.7 $ 4.3 RSUs granted 193,842 389,499 Weighted average grant date fair value per unit $ 97.78 $ 90.73 Total fair value of vested RSUs $ 21.8 $ 16.2 Three Months Ended 2019 2018 PSU compensation expense $ 4.2 $ 4.2 Income tax benefit (0.6 ) (0.9 ) PSU compensation expense, net of tax $ 3.6 $ 3.3 PSUs granted 246,219 — Weighted average grant date fair value per unit $ 105.23 $ — Total fair value of vested PSUs $ 17.7 $ — |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS | The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of PSUs and ESPP using the treasury stock method; and (2) common shares issuable upon conversion of the MCPS using the if-converted method. Refer to Notes 13 and 14 for further information regarding potential common stock issuances. The outstanding RSUs have non-forfeitable rights to dividend equivalents and are therefore included in calculating basic and diluted EPS under the two-class method. Three Months Ended 2019 2018 Numerator Net income attributable to stockholders $ 165.7 $ 106.0 Less: Preferred stock dividends (4.7 ) — Net income attributable to common stockholders 161.0 106.0 Less: Common stock dividends paid (37.4 ) (29.7 ) Undistributed earnings $ 123.6 $ 76.3 Denominator Weighted average common shares outstanding used in basic earnings per common share calculations 62,594,828 53,169,358 Incremental common shares from: PSUs 211,477 308,418 ESPP 1,765 — MCPS 2,969,875 711,722 Weighted average common shares used in diluted earnings per common share calculations 65,777,945 54,189,498 Earnings per common share - Basic Distributed earnings $ 0.60 $ 0.56 Undistributed earnings 1.97 1.43 Net income attributable to common stockholders $ 2.57 $ 1.99 Earnings per common share - Diluted Distributed earnings $ 0.57 $ 0.55 Undistributed earnings 1.95 1.41 Net income attributable to common stockholders $ 2.52 $ 1.96 |
Retirement and Other Employee_2
Retirement and Other Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Components of Net Periodic Benefit Cost | The following table presents the components of net periodic benefit cost for the Plans for the three months ended March 31, 2019 and 2018: Qualified Pension Benefits Unfunded Non-qualified Pension Benefits Retirement Health Benefits 2019 2018 2019 2018 2019 2018 Interest cost $ 6.5 $ 5.8 $ 0.7 $ 0.7 $ 0.9 $ 0.8 Expected return on plan assets (9.0 ) (9.1 ) — — (0.4 ) (0.5 ) Amortization of net loss — 0.2 0.3 0.5 — — Net periodic benefit cost $ (2.5 ) $ (3.1 ) $ 1.0 $ 1.2 $ 0.5 $ 0.3 |
Nature of Operations (Details)
Nature of Operations (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Operating Segments | 3 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 81.3 | |
Operating lease, right-of-use asset | 73 | |
Operating lease, cost | 5.8 | |
Cash outflows reducing lease liability | $ 5.1 | |
Weighted average remaining lease term | 6 years 9 months 18 days | |
Weighted average discount rate | 4.50% | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, liability | $ 85.3 | |
Operating lease, right-of-use asset | 78 | |
Deferred Rent Credit | $ 7.3 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) | May 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,331,200,000 | $ 2,321,800,000 | |||
Claims and benefits payable | 2,750,600,000 | $ 2,813,700,000 | $ 3,194,800,000 | $ 3,782,200,000 | |
TWG Holdings Limited | |||||
Business Acquisition [Line Items] | |||||
Total acquisition consideration | $ 2,466,300,000 | ||||
Aggregate cash consideration | 894,900,000 | ||||
Repayment of pre-existing TWG debt | 595,900,000 | ||||
Share issuance consideration | $ 975,500,000 | ||||
Common stock shares issued to TWG equityholders | 10,400,000 | ||||
Goodwill | 36,100,000 | ||||
Goodwill | $ 1,427,700,000 | ||||
Tax-deductible goodwill | $ 0 | ||||
Amortization of value of business acquired (VOBA) | 298,400,000 | ||||
Amortization of intangible assets | $ 4,500,000 |
Acquisitions - Fair Value of Ne
Acquisitions - Fair Value of Net Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | May 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,331.2 | $ 2,321.8 | |
TWG Holdings Limited | |||
Business Acquisition [Line Items] | |||
Fixed maturity securities available for sale | $ 2,268.8 | ||
Equity securities | 49.4 | ||
Short-term investments | 165.5 | ||
Other investments | 100.9 | ||
Cash and cash equivalents | 380.1 | ||
Premiums and accounts receivable, net | 285.7 | ||
Reinsurance recoverables | 1,916.9 | ||
Accrued investment income | 31.6 | ||
Property and equipment | 15.4 | ||
Value of business acquired | 3,973 | ||
Other intangible assets | 459.7 | ||
Other assets | 200.5 | ||
Unearned premiums and contract fees | (7,521.3) | ||
Claims and benefits payable | (418.2) | ||
Reinsurance balances payable | (186.1) | ||
Funds held under reinsurance | (202.2) | ||
Accounts payable and other liabilities | (479.3) | ||
Non-controlling interest | (1.8) | ||
Total identifiable net assets acquired | 1,038.6 | ||
Goodwill | 1,427.7 | ||
Total acquisition consideration | $ 2,466.3 |
Acquisitions - VOBA and Other I
Acquisitions - VOBA and Other Intangible Assets (Details) - TWG Holdings Limited $ in Millions | May 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Value of business acquired | $ 3,973 |
Amortization intangible assets | 448.1 |
Indefinite-lived intangible assets | 11.6 |
Other intangible assets | 459.7 |
Customer related intangibles (distribution network) | |
Business Acquisition [Line Items] | |
Amortization intangible assets | 390.3 |
Technology based intangibles | |
Business Acquisition [Line Items] | |
Amortization intangible assets | $ 57.8 |
Acquisitions - VOBA and Other_2
Acquisitions - VOBA and Other Intangible Assets Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Present Value of Future Insurance Profits, Amortization Expense, Next Five Years [Abstract] | ||
Total | $ 2,858.1 | $ 3,157.8 |
TWG Holdings Limited | ||
Present Value of Future Insurance Profits, Amortization Expense, Next Five Years [Abstract] | ||
April 1 - December 31, 2019 | 785.3 | |
2020 | 822 | |
2021 | 576 | |
2022 | 353.8 | |
2023 | 218.8 | |
2024 | 79 | |
Thereafter | 7.5 | |
Total | 2,842.4 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
April 1 - December 31, 2019 | 14 | |
2020 | 26.2 | |
2021 | 31 | |
2022 | 35 | |
2023 | 36.1 | |
2024 | 36.6 | |
Thereafter | 254.2 | |
Total | $ 433.1 |
Acquisitions - Acquisition-rela
Acquisitions - Acquisition-related Costs (Details) - TWG Holdings Limited - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Transaction costs, incurred to date | $ 40.2 | |
Integration costs, incurred to date | 40.9 | |
Underwriting, general and administrative expense | ||
Business Acquisition [Line Items] | ||
Transaction costs | 0.3 | $ 5.2 |
Integration costs | $ 10.4 | $ 2.3 |
Segment Information (Financial
Segment Information (Financial Information by Segment) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)reportable_segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | reportable_segment | 4 | ||
Revenues | |||
Net earned premiums | $ 1,904.4 | $ 1,124.9 | |
Fees and other income | 328.3 | 364.5 | |
Net investment income | 166.3 | 130.2 | |
Net realized gains on investments | 28.8 | 0.5 | |
Amortization of deferred gains on disposal of businesses | 7.8 | 18.5 | |
Total revenues | 2,435.6 | 1,638.6 | |
Benefits, losses and expenses | |||
Policyholder benefits | 614.7 | 414.6 | |
Amortization of deferred acquisition costs and value of business acquired | 777.3 | 346.4 | |
Underwriting, general and administrative expenses | 800.1 | 719.6 | |
Interest expense | 26.5 | 21.5 | |
Total benefits, losses and expenses | 2,218.6 | 1,502.1 | |
Segment income before provision for income tax | 217 | 136.5 | |
Provision (benefit) for income taxes | 48.4 | 30.5 | |
Net income | 168.6 | 106 | |
Less: Net income attributable to non-controlling interests | (2.9) | 0 | |
Net income attributable to stockholders | 165.7 | 106 | |
Less: Preferred stock dividends | (4.7) | 0 | |
Net income attributable to common stockholders | 161 | 106 | |
Segment assets | 42,237 | $ 41,089.3 | |
Global Housing | |||
Revenues | |||
Net earned premiums | 460.1 | 436.4 | |
Fees and other income | 39.9 | 86.7 | |
Net investment income | 25.4 | 20.2 | |
Net realized gains on investments | 0 | 0 | |
Amortization of deferred gains on disposal of businesses | 0 | 0 | |
Total revenues | 525.4 | 543.3 | |
Benefits, losses and expenses | |||
Policyholder benefits | 198.9 | 169.1 | |
Amortization of deferred acquisition costs and value of business acquired | 53.9 | 49.6 | |
Underwriting, general and administrative expenses | 180.7 | 234.9 | |
Interest expense | 0 | 0 | |
Total benefits, losses and expenses | 433.5 | 453.6 | |
Segment income before provision for income tax | 91.9 | 89.7 | |
Provision (benefit) for income taxes | 19.2 | 18.5 | |
Net income | 72.7 | ||
Less: Net income attributable to non-controlling interests | 0 | ||
Net income attributable to stockholders | 72.7 | 71.2 | |
Less: Preferred stock dividends | 0 | ||
Net income attributable to common stockholders | 72.7 | ||
Segment assets | 3,937.1 | ||
Global Lifestyle | |||
Revenues | |||
Net earned premiums | 1,428.5 | 673.6 | |
Fees and other income | 253.1 | 244.9 | |
Net investment income | 58.9 | 32.1 | |
Net realized gains on investments | 0 | 0 | |
Amortization of deferred gains on disposal of businesses | 0 | 0 | |
Total revenues | 1,740.5 | 950.6 | |
Benefits, losses and expenses | |||
Policyholder benefits | 347.2 | 181.6 | |
Amortization of deferred acquisition costs and value of business acquired | 705.8 | 280.3 | |
Underwriting, general and administrative expenses | 555.8 | 415.8 | |
Interest expense | 0 | 0 | |
Total benefits, losses and expenses | 1,608.8 | 877.7 | |
Segment income before provision for income tax | 131.7 | 72.9 | |
Provision (benefit) for income taxes | 31.1 | 17.1 | |
Net income | 100.6 | ||
Less: Net income attributable to non-controlling interests | 0 | ||
Net income attributable to stockholders | 100.6 | 55.8 | |
Less: Preferred stock dividends | 0 | ||
Net income attributable to common stockholders | 100.6 | ||
Segment assets | 21,635 | ||
Global Preneed | |||
Revenues | |||
Net earned premiums | 15.8 | 14.6 | |
Fees and other income | 33.3 | 31.6 | |
Net investment income | 69.1 | 65.8 | |
Net realized gains on investments | 0 | 0 | |
Amortization of deferred gains on disposal of businesses | 0 | 0 | |
Total revenues | 118.2 | 112 | |
Benefits, losses and expenses | |||
Policyholder benefits | 68.6 | 66.7 | |
Amortization of deferred acquisition costs and value of business acquired | 17.6 | 16.5 | |
Underwriting, general and administrative expenses | 16.9 | 16.2 | |
Interest expense | 0 | 0 | |
Total benefits, losses and expenses | 103.1 | 99.4 | |
Segment income before provision for income tax | 15.1 | 12.6 | |
Provision (benefit) for income taxes | 3.3 | 2.8 | |
Net income | 11.8 | ||
Less: Net income attributable to non-controlling interests | 0 | ||
Net income attributable to stockholders | 11.8 | 9.8 | |
Less: Preferred stock dividends | 0 | ||
Net income attributable to common stockholders | 11.8 | ||
Segment assets | 7,135.5 | ||
Total Corporate and Other | |||
Revenues | |||
Net earned premiums | 0 | 0.3 | |
Fees and other income | 2 | 1.3 | |
Net investment income | 12.9 | 12.1 | |
Net realized gains on investments | 28.8 | 0.5 | |
Amortization of deferred gains on disposal of businesses | 7.8 | 18.5 | |
Total revenues | 51.5 | 32.7 | |
Benefits, losses and expenses | |||
Policyholder benefits | 0 | (2.8) | |
Amortization of deferred acquisition costs and value of business acquired | 0 | 0 | |
Underwriting, general and administrative expenses | 46.7 | 52.7 | |
Interest expense | 26.5 | 21.5 | |
Total benefits, losses and expenses | 73.2 | 71.4 | |
Segment income before provision for income tax | (21.7) | (38.7) | |
Provision (benefit) for income taxes | (5.2) | (7.9) | |
Net income | (16.5) | ||
Less: Net income attributable to non-controlling interests | (2.9) | ||
Net income attributable to stockholders | (19.4) | $ (30.8) | |
Less: Preferred stock dividends | (4.7) | ||
Net income attributable to common stockholders | (24.1) | ||
Segment assets | $ 9,529.4 |
Contract Revenues - Narrative (
Contract Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Upfront costs in connection with client contracts | $ 606.5 | $ 622.4 | |
Global Housing | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregated fee revenues | 30.2 | $ 76.1 | |
Global Lifestyle | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregated fee revenues | 207.6 | $ 173.6 | |
Service contracts and sales | |||
Disaggregation of Revenue [Line Items] | |||
Receivables from contracts with customers | 169 | 183.7 | |
Unearned revenue from contracts with customers | 95.4 | 88.7 | |
Contract with customer, liability, unearned revenue | 15.6 | ||
Upfront costs in connection with client contracts | $ 27.6 | $ 29 |
Investments - Amortized Cost, G
Investments - Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | $ 11,042.5 | $ 10,834 |
Fixed maturity securities, fair value | 11,834.6 | 11,257.1 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 11,042.5 | 10,834 |
Fixed maturity securities, gross unrealized gains | 819.9 | 531.4 |
Fixed maturity securities, gross unrealized losses | (27.8) | (108.3) |
Fixed maturity securities, fair value | 11,834.6 | 11,257.1 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 18.8 | 19.1 |
Fixed maturity securities | U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 308 | 381.4 |
Fixed maturity securities, gross unrealized gains | 5.3 | 4.4 |
Fixed maturity securities, gross unrealized losses | (0.6) | (1.2) |
Fixed maturity securities, fair value | 312.7 | 384.6 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 |
Fixed maturity securities | States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 236.5 | 238.9 |
Fixed maturity securities, gross unrealized gains | 21.8 | 17.6 |
Fixed maturity securities, gross unrealized losses | (0.1) | (0.3) |
Fixed maturity securities, fair value | 258.2 | 256.2 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 |
Fixed maturity securities | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 877.7 | 856.3 |
Fixed maturity securities, gross unrealized gains | 84.1 | 58.8 |
Fixed maturity securities, gross unrealized losses | (0.7) | (3) |
Fixed maturity securities, fair value | 961.1 | 912.1 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 |
Fixed maturity securities | Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 485.9 | 513.6 |
Fixed maturity securities, gross unrealized gains | 0.7 | 0.5 |
Fixed maturity securities, gross unrealized losses | (4.1) | (9.6) |
Fixed maturity securities, fair value | 482.5 | 504.5 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 |
Fixed maturity securities | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 206.8 | 79.1 |
Fixed maturity securities, gross unrealized gains | 6.6 | 2.2 |
Fixed maturity securities, gross unrealized losses | (1.6) | (1.6) |
Fixed maturity securities, fair value | 211.8 | 79.7 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 |
Fixed maturity securities | Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 1,242.1 | 1,399.1 |
Fixed maturity securities, gross unrealized gains | 33 | 21.5 |
Fixed maturity securities, gross unrealized losses | (5.8) | (14.8) |
Fixed maturity securities, fair value | 1,269.3 | 1,405.8 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 4.4 | 5 |
Fixed maturity securities | U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 5,587.2 | 5,337 |
Fixed maturity securities, gross unrealized gains | 490.1 | 315.7 |
Fixed maturity securities, gross unrealized losses | (12) | (59.7) |
Fixed maturity securities, fair value | 6,065.3 | 5,593 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | 14.4 | 14.1 |
Fixed maturity securities | Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, cost or amortized cost | 2,098.3 | 2,028.6 |
Fixed maturity securities, gross unrealized gains | 178.3 | 110.7 |
Fixed maturity securities, gross unrealized losses | (2.9) | (18.1) |
Fixed maturity securities, fair value | 2,273.7 | 2,121.2 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)investmentstate | Dec. 31, 2018USD ($)investmentstate | |
Investment [Line Items] | ||
Number of individual states exceeding overall investment portfolio exposure | state | 0 | 0 |
Maximum individual state exposure | 0.30% | 0.40% |
Advance refunded or escrowed-to-maturity securities | $ 58.9 | $ 58.4 |
Percentage of revenue securities | 56.00% | 56.00% |
Investment in securities | $ 11,834.6 | $ 11,257.1 |
Percentage of securities representing gross unrealized losses | 2.00% | 3.00% |
Percentage of gross unrealized losses in a continuous loss position less than twelve months | 43.00% | 73.00% |
Individual securities comprising total gross unrealized losses | investment | 899 | 2,642 |
Percentage of residential mortgage-backed holdings exposure to sub-prime mortgage collateral | 34.00% | |
Minimum | ||
Investment [Line Items] | ||
Outstanding balance of commercial mortgage loans | $ 0.1 | $ 0.1 |
Maximum | ||
Investment [Line Items] | ||
Outstanding balance of commercial mortgage loans | 12.4 | 12.5 |
Europe | Corporate Fixed Maturity and Equity Securities | ||
Investment [Line Items] | ||
Investment in securities | 813.6 | 800.9 |
Unrealized gain (loss) on investments | $ 46.4 | $ 27.7 |
Geographic Concentration Risk | Investments | Canada | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 55.00% | 55.00% |
Geographic Concentration Risk | Investments | Brazil | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 19.00% | 18.00% |
Geographic Concentration Risk | Investments | United Kingdom | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 7.00% | 8.00% |
Geographic Concentration Risk | Investments | United Kingdom | Corporate Fixed Maturity and Equity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 4.00% | 5.00% |
Geographic Concentration Risk | Investments | Other Countries (more than 3%) | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 6.00% | 6.00% |
Financial Services Sector | Investment Sector Concentration Risk | Investments | Europe | Corporate Fixed Maturity and Equity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 28.00% | 27.00% |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Cost or Amortized Cost | ||
Due in one year or less, cost or amortized cost | $ 334.7 | |
Due after one year through five years, cost or amortized cost | 2,724.5 | |
Due after five years through ten years, cost or amortized cost | 2,290.5 | |
Due after ten years, cost or amortized cost | 3,758 | |
Total, cost or amortized cost | 9,107.7 | |
Fixed maturity securities, cost or amortized cost | 11,042.5 | $ 10,834 |
Fair Value | ||
Due in one year or less, fair value | 336.5 | |
Due after one year through five years, fair value | 2,783.3 | |
Due after five years through ten years, fair value | 2,406.6 | |
Due after ten years, fair value | 4,344.6 | |
Total, fair value | 9,871 | |
Fixed maturity securities, fair value | 11,834.6 | $ 11,257.1 |
Commercial mortgage-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 206.8 | |
Fair Value | ||
Fair value | 211.8 | |
Residential mortgage-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 1,242.1 | |
Fair Value | ||
Fair value | 1,269.3 | |
Asset-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 485.9 | |
Fair Value | ||
Fair value | $ 482.5 |
Investments - Net Realized Gain
Investments - Net Realized Gains (Losses), Including Other-Than-Temporary Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | ||
Net realized gains (losses) on investments | $ 29.1 | $ 0.5 |
Net realized losses related to other-than-temporary impairment: | (0.3) | 0 |
Total net realized gains | 28.8 | 0.5 |
Fixed maturity securities | ||
Gain (Loss) on Securities [Line Items] | ||
Net realized gains (losses) on investments | (0.3) | (2.6) |
Net realized losses related to other-than-temporary impairment: | (0.3) | 0 |
Equity securities | ||
Gain (Loss) on Securities [Line Items] | ||
Net realized gains (losses) on investments | 29.9 | 2.2 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net realized gains (losses) on investments | (0.1) | 1.3 |
Consolidated investment entities | ||
Gain (Loss) on Securities [Line Items] | ||
Net realized gains (losses) on investments | (0.4) | (0.4) |
Equity securities | ||
Gain (Loss) on Securities [Line Items] | ||
Carrying value of securities | $ 10.4 | $ 7.8 |
Investments - Unrealized Gains
Investments - Unrealized Gains on Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains recognized on equity securities | $ 29.9 | $ 2.2 |
Less: Net realized gains (losses) related to sales of equity securities | (1) | 2 |
Total unrealized gains on equity securities held | $ 30.9 | $ 0.2 |
Investments - Investment Catego
Investments - Investment Category and Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities (Details) - Fixed maturity securities - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | $ 724.8 | $ 3,524.3 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (11.9) | (79.4) |
Fixed maturity securities, 12 Months or More, Fair Value | 766.2 | 746.4 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (15.9) | (28.9) |
Fixed maturity securities, Total, Fair Value | 1,491 | 4,270.7 |
Fixed maturity securities, Unrealized Losses | (27.8) | (108.3) |
U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 0 | 11.2 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | 0 | (0.1) |
Fixed maturity securities, 12 Months or More, Fair Value | 72.8 | 89.5 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (0.6) | (1.1) |
Fixed maturity securities, Total, Fair Value | 72.8 | 100.7 |
Fixed maturity securities, Unrealized Losses | (0.6) | (1.2) |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 0 | 31.5 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | 0 | (0.1) |
Fixed maturity securities, 12 Months or More, Fair Value | 3.3 | 3.1 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (0.1) | (0.2) |
Fixed maturity securities, Total, Fair Value | 3.3 | 34.6 |
Fixed maturity securities, Unrealized Losses | (0.1) | (0.3) |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 88.5 | 136.4 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (0.7) | (2.8) |
Fixed maturity securities, 12 Months or More, Fair Value | 0 | 9.2 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | 0 | (0.2) |
Fixed maturity securities, Total, Fair Value | 88.5 | 145.6 |
Fixed maturity securities, Unrealized Losses | (0.7) | (3) |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 282.1 | 370.6 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (3.7) | (9.6) |
Fixed maturity securities, 12 Months or More, Fair Value | 47.5 | 0 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (0.4) | 0 |
Fixed maturity securities, Total, Fair Value | 329.6 | 370.6 |
Fixed maturity securities, Unrealized Losses | (4.1) | (9.6) |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 0 | 29.4 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | 0 | (0.7) |
Fixed maturity securities, 12 Months or More, Fair Value | 20 | 12.4 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (1.6) | (0.9) |
Fixed maturity securities, Total, Fair Value | 20 | 41.8 |
Fixed maturity securities, Unrealized Losses | (1.6) | (1.6) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 18.6 | 378.2 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (0.1) | (3.7) |
Fixed maturity securities, 12 Months or More, Fair Value | 346.2 | 309.6 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (5.7) | (11.1) |
Fixed maturity securities, Total, Fair Value | 364.8 | 687.8 |
Fixed maturity securities, Unrealized Losses | (5.8) | (14.8) |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 232.8 | 1,860.4 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (6) | (49.5) |
Fixed maturity securities, 12 Months or More, Fair Value | 206.8 | 173.1 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (6) | (10.2) |
Fixed maturity securities, Total, Fair Value | 439.6 | 2,033.5 |
Fixed maturity securities, Unrealized Losses | (12) | (59.7) |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 102.8 | 706.6 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (1.4) | (12.9) |
Fixed maturity securities, 12 Months or More, Fair Value | 69.6 | 149.5 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (1.5) | (5.2) |
Fixed maturity securities, Total, Fair Value | 172.4 | 856.1 |
Fixed maturity securities, Unrealized Losses | $ (2.9) | $ (18.1) |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | $ 2,057.7 | $ 1,685.4 |
Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Special purpose entities capitalized amount | 20 | ||
Real estate fund | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | 99.1 | 91.5 | |
Unfunded commitments | $ 4.2 | ||
Senior Debt Tranches | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Percentage of investment of senior debt tranche of CLO | 5.00% | ||
Subordinated Debt | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | $ 90.4 | 55.2 | |
Senior Debt | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | $ 21.2 | $ 21 | |
Minimum | Subordinated Debt Tranches | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Investment percentage in most subordinated debt tranche | 43.80% | ||
Minimum | Overall Ownership | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Percentage of investment of overall ownership | 6.00% | ||
Maximum | Subordinated Debt Tranches | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Investment percentage in most subordinated debt tranche | 100.00% | ||
Maximum | Overall Ownership | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Percentage of investment of overall ownership | 8.80% | ||
[1] | The following table presents information on assets and liabilities related to consolidated investment entities as of March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 (in millions) Assets Cash and cash equivalents $ 110.4 $ 62.6 Investments, at fair value 1,909.2 1,576.2 Other receivables 38.1 46.6 Total assets $ 2,057.7 $ 1,685.4 Liabilities Collateralized loan obligation notes, at fair value 1,603.6 1,316.7 Other liabilities 197.6 138.4 Total liabilities $ 1,801.2 $ 1,455.1 |
Variable Interest Entities - Fa
Variable Interest Entities - Fair Value of Financial Assets and Liabilities (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Total financial assets | $ 15,039 | $ 14,307.8 |
Financial liabilities | 1,874.9 | 1,680.5 |
Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 2,019.6 | 1,638.8 |
Financial liabilities | 1,603.6 | 1,316.7 |
Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 1,603.6 | 1,316.7 |
Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 110.4 | 62.6 |
Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 1,787.8 | 1,464.2 |
Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | 121.4 | 112 |
Level 1 | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 2,412.5 | 2,235.6 |
Financial liabilities | 1,653.4 | 1,463 |
Level 1 | Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 110.4 | 62.6 |
Financial liabilities | 0 | 0 |
Level 1 | Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 0 | 0 |
Level 1 | Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 110.4 | 62.6 |
Level 1 | Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | 0 |
Level 2 | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 12,486.9 | 11,960.8 |
Financial liabilities | 180.2 | 176.3 |
Level 2 | Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 1,787.8 | 1,464.2 |
Financial liabilities | 1,603.6 | 1,316.7 |
Level 2 | Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 1,603.6 | 1,316.7 |
Level 2 | Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | 0 |
Level 2 | Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 1,787.8 | 1,464.2 |
Level 2 | Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | 0 |
Level 3 | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 139.6 | 111.4 |
Financial liabilities | 41.3 | 41.2 |
Level 3 | Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 121.4 | 112 |
Financial liabilities | 0 | 0 |
Level 3 | Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 0 | 0 |
Level 3 | Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | 0 |
Level 3 | Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | 0 |
Level 3 | Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 121.4 | $ 112 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying value of level 3 assets (Details) - Real estate fund - Level 3 - Consolidated investment entities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Real Estate Carrying Amount [Roll Forward] | ||
Balance, beginning of period | $ 112 | $ 84.7 |
Total income included in earnings | 9.4 | 2.1 |
Balance, end of period | $ 121.4 | $ 86.8 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 15,039 | $ 14,307.8 |
Other liabilities | 108 | 104.8 |
Liabilities related to separate accounts | 1,766.9 | 1,575.7 |
Total financial liabilities | 1,874.9 | 1,680.5 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2,412.5 | 2,235.6 |
Other liabilities | 66 | 62.9 |
Liabilities related to separate accounts | 1,587.4 | 1,400.1 |
Total financial liabilities | 1,653.4 | 1,463 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 12,486.9 | 11,960.8 |
Other liabilities | 0.7 | 0.7 |
Liabilities related to separate accounts | 179.5 | 175.6 |
Total financial liabilities | 180.2 | 176.3 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 139.6 | 111.4 |
Other liabilities | 41.3 | 41.2 |
Liabilities related to separate accounts | 0 | 0 |
Total financial liabilities | 41.3 | 41.2 |
U.S. government and government agencies and authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 312.7 | 384.6 |
U.S. government and government agencies and authorities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
U.S. government and government agencies and authorities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 312.7 | 384.6 |
U.S. government and government agencies and authorities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 258.2 | 256.2 |
States, municipalities and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
States, municipalities and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 258.2 | 256.2 |
States, municipalities and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 961.1 | 912.1 |
Foreign governments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.5 | 0.5 |
Foreign governments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 960.6 | 911.6 |
Foreign governments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 482.5 | 504.5 |
Asset-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Asset-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 457.6 | 504.5 |
Asset-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 24.9 | 0 |
Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 211.8 | 79.7 |
Commercial mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Commercial mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 170.4 | 40.8 |
Commercial mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 41.4 | 38.9 |
Residential mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,269.3 | 1,405.8 |
Residential mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Residential mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,269.3 | 1,405.8 |
Residential mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 6,065.3 | 5,593 |
U.S. corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
U.S. corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 6,053.4 | 5,580.3 |
U.S. corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 11.9 | 12.7 |
Foreign corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2,273.7 | 2,121.2 |
Foreign corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Foreign corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2,221.2 | 2,071.7 |
Foreign corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 52.5 | 49.5 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 45.7 | 45 |
Mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 45.7 | 45 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Mutual funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 20.7 | 15.3 |
Common Stock | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 20 | 14.6 |
Common Stock | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.7 | 0.7 |
Common Stock | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Non-redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 322 | 318.5 |
Non-redeemable preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Non-redeemable preferred stocks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 319.8 | 316.3 |
Non-redeemable preferred stocks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2.2 | 2.2 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 305.3 | 336 |
Short-term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 189.4 | 188.9 |
Short-term investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 115.9 | 147.1 |
Short-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 229.9 | 224.9 |
Other investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 65.9 | 62.9 |
Other investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 163.6 | 161.5 |
Other investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.4 | 0.5 |
Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 507.6 | 527.7 |
Cash equivalents | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 503.6 | 523.6 |
Cash equivalents | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 4 | 4.1 |
Cash equivalents | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 5 | 5 |
Other receivables | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other receivables | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other receivables | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 5 | 5 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1.3 | 2.6 |
Other assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1.3 | 2.6 |
Assets held in separate accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,766.9 | 1,575.7 |
Assets held in separate accounts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,587.4 | 1,400.1 |
Assets held in separate accounts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 179.5 | 175.6 |
Assets held in separate accounts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 0 | $ 0 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Value and Fair Value of the Financial Instruments that are Not recognized or are Not Carried at Fair Value (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | $ 15,039 | $ 14,307.8 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 2,412.5 | 2,235.6 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 12,486.9 | 11,960.8 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 139.6 | 111.4 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 758.1 | 759.6 |
Other investments | 141.9 | 124.9 |
Other assets | 42.4 | 43 |
Total financial assets | 942.4 | 927.5 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 567.6 | 570.6 |
Funds withheld under reinsurance | 294 | 272 |
Debt | 2,006.6 | 2,006 |
Total financial liabilities | 2,868.2 | 2,848.6 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 760.6 | 735.1 |
Other investments | 141.9 | 124.9 |
Other assets | 42.4 | 43 |
Total financial assets | 944.9 | 903 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 556.7 | 556.8 |
Funds withheld under reinsurance | 294 | 272 |
Debt | 2,097.3 | 2,058.7 |
Total financial liabilities | 2,948 | 2,887.5 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 0 | 0 |
Other investments | 33.6 | 33.9 |
Other assets | 0 | 0 |
Total financial assets | 33.6 | 33.9 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 0 | 0 |
Funds withheld under reinsurance | 294 | 272 |
Debt | 0 | 0 |
Total financial liabilities | 294 | 272 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 0 | 0 |
Other investments | 0 | 0 |
Other assets | 0 | 0 |
Total financial assets | 0 | 0 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 0 | 0 |
Funds withheld under reinsurance | 0 | 0 |
Debt | 2,097.3 | 2,058.7 |
Total financial liabilities | 2,097.3 | 2,058.7 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 760.6 | 735.1 |
Other investments | 108.3 | 91 |
Other assets | 42.4 | 43 |
Total financial assets | 911.3 | 869.1 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 556.7 | 556.8 |
Funds withheld under reinsurance | 0 | 0 |
Debt | 0 | 0 |
Total financial liabilities | $ 556.7 | $ 556.8 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Allowance for doubtful accounts reinsurance recoverable | $ 0.3 | $ 0.3 |
Reserves - Roll Forward of Clai
Reserves - Roll Forward of Claims and Benefits Payable (Details) - USD ($) $ in Millions | Dec. 03, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Liability for unpaid claims and claims adjustment expense, Period Increase (Decrease) | $ (730) | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Claims and benefits payable, at beginning of period | $ 2,813.7 | $ 3,782.2 | |||
Less: Reinsurance ceded and other | (2,053.7) | (3,193.3) | |||
Net claims and benefits payable, at beginning of period | 760 | 588.9 | |||
Incurred losses and loss adjustment expenses related to: | |||||
Current year | 645.3 | 440.4 | |||
Prior years | (30.4) | (24.1) | |||
Total incurred losses and loss adjustment expenses | 614.9 | 416.3 | |||
Paid losses and loss adjustment expenses related to: | |||||
Current year | 311.7 | 213.5 | |||
Prior years | 300 | 239.3 | |||
Total paid losses and loss adjustment expenses | 611.7 | 452.8 | |||
Net claims and benefits payable, at end of period | 763.2 | 552.4 | |||
Reinsurance ceded and other | 2,053.7 | 3,193.3 | $ 1,987.4 | $ 2,642.4 | |
Plus: Reinsurance ceded and other | 1,987.4 | 2,642.4 | |||
Claims and benefits payable, at end of period | $ 2,750.6 | $ 3,194.8 | |||
Ceded To U.S. Government | Not Rated | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Reinsurance recoverables | $ 85.7 | $ 121.8 |
Reserves - Narrative (Details)
Reserves - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior years | $ (30.4) | $ (24.1) |
Hurricane Michael, Florence and Maria | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior years | (3.6) | 0.7 |
Global Lifestyle, Excluding TWG | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior years | 31.2 | 15.4 |
Global Housing | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior years | (2.9) | 6.2 |
Health | Global Preneed and Other | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Prior years | $ 2.1 | $ 2.5 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 27, 2018 | |
Debt Instrument [Line Items] | |||
Debt outstanding | $ 2,006,600,000 | $ 2,006,000,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 900,000,000 | ||
Senior Notes | Floating Rate Senior Notes due March 2021 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | 300,000,000 | $ 300,000,000 | |
Debt outstanding | $ 298,200,000 | 298,100,000 | |
Senior Notes | Floating Rate Senior Notes due March 2021 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Interest rate increase | 1.25% | ||
Interest rate | 4.06% | 1.25% | |
Senior Notes | 4.00% Senior Notes due March 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.00% | ||
Aggregate principal amount | $ 350,000,000 | ||
Debt outstanding | 348,200,000 | 348,100,000 | |
Senior Notes | 4.20% Senior Notes due September 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.20% | ||
Aggregate principal amount | 300,000,000 | $ 300,000,000 | |
Debt outstanding | 296,900,000 | 296,800,000 | |
Senior Notes | 4.90% Senior Notes due March 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.90% | ||
Aggregate principal amount | 300,000,000 | $ 300,000,000 | |
Debt outstanding | $ 297,700,000 | 297,600,000 | |
Senior Notes | 6.75% Senior Notes due February 2034 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.75% | ||
Aggregate principal amount | $ 375,000,000 | ||
Debt outstanding | $ 371,000,000 | 370,900,000 | |
Subordinated notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.00% | 7.00% | |
Aggregate principal amount | $ 400,000,000 | $ 400,000,000 | |
Debt outstanding | $ 394,600,000 | $ 394,500,000 | |
Subordinated notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Interest rate increase | 4.135% | ||
Interest rate | 4.135% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Mar. 27, 2018USD ($)series | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Mar. 15, 2018USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2013USD ($) | Feb. 29, 2004USD ($) | |
Debt Instrument [Line Items] | |||||||||
Debt outstanding | $ 2,006,600,000 | $ 2,006,000,000 | |||||||
Net proceeds from issuance of debt | [1] | 0 | $ 1,285,800,000 | ||||||
Amortization of deferred hedge gains | 700,000 | ||||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of series issued | series | 3 | ||||||||
Aggregate principal amount | $ 900,000,000 | ||||||||
Senior Notes | 4.00% Senior Notes due March 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | 348,200,000 | 348,100,000 | |||||||
Aggregate principal amount | $ 350,000,000 | ||||||||
Interest rate | 4.00% | ||||||||
Discount rate | 0.365% | ||||||||
Senior Notes | Senior Notes2013 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 700,000,000 | ||||||||
Senior Notes | 6.75% Senior Notes due February 2034 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | $ 371,000,000 | 370,900,000 | |||||||
Aggregate principal amount | $ 375,000,000 | ||||||||
Interest rate | 6.75% | ||||||||
Senior Notes | Senior Notes 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | $ 298,200,000 | 298,100,000 | |||||||
Aggregate principal amount | 300,000,000 | 300,000,000 | |||||||
Senior Notes | 4.20% Senior Notes due September 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | 296,900,000 | 296,800,000 | |||||||
Aggregate principal amount | $ 300,000,000 | 300,000,000 | |||||||
Interest rate | 4.20% | ||||||||
Discount rate | 0.233% | ||||||||
Senior Notes | 4.90% Senior Notes due March 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | 297,700,000 | 297,600,000 | |||||||
Aggregate principal amount | $ 300,000,000 | 300,000,000 | |||||||
Interest rate | 4.90% | ||||||||
Discount rate | 0.383% | ||||||||
Senior Notes | Senior Notes 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 350,000,000 | ||||||||
Interest rate | 2.50% | ||||||||
Senior Notes | Senior Notes 2004 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 475,000,000 | ||||||||
Debt instrument, repurchase amount | $ 100,000,000 | ||||||||
Discount rate | 0.61% | ||||||||
Subordinated notes | Subordinated Notes 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | 394,600,000 | $ 394,500,000 | |||||||
Aggregate principal amount | $ 400,000,000 | $ 400,000,000 | |||||||
Interest rate | 7.00% | 7.00% | |||||||
The Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Net proceeds from issuance of debt | $ 1,290,000,000 | ||||||||
London Interbank Offered Rate (LIBOR) | Senior Notes | Senior Notes 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.25% | 4.06% | |||||||
London Interbank Offered Rate (LIBOR) | Subordinated notes | Subordinated Notes 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.135% | ||||||||
Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | $ 9,000,000 | ||||||||
Revolving Credit Facility | Jp Morgan Chase Bank N And Bank Of America N | Credit Facility 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior revolving credit facility | 575,000,000 | ||||||||
Credit facility borrowing capacity | 450,000,000 | ||||||||
Sublimit for letters of credit issued | 50,000,000 | ||||||||
Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, remaining borrowing capacity | $ 441,000,000 | ||||||||
Series D MCPS | |||||||||
Debt Instrument [Line Items] | |||||||||
Share interest rate | 6.50% | ||||||||
Derivative | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative qualified for hedge accounting gain (loss) | $ 26,700,000 | ||||||||
Debt interest expense | 8,600,000 | ||||||||
Derivative | Senior Notes | Senior Notes 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 150,000,000 | ||||||||
Interest rate | 2.72% | ||||||||
Interest Rate Derivatives | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative qualified for hedge accounting gain (loss) | $ 23,800,000 | ||||||||
[1] | Refer to Note 11 for additional information. |
Debt - Rating Agencies interest
Debt - Rating Agencies interest rate (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Maximum | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 2.00% |
BB Plus | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 0.25% |
BB | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 0.50% |
BB- | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 0.75% |
B Plus Or Below | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 1.00% |
Ba1 | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 0.25% |
Ba2 | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 0.50% |
Ba3 | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 0.75% |
B1 or below | |
Financing Receivable, Recorded Investment [Line Items] | |
Interest rate increase | 1.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income, Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 5,112 | ||
Change in accumulated other comprehensive (loss) income before reclassifications | 257.6 | $ (151.1) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 1.2 | 2.7 | |
Total other comprehensive income (loss) | 258.8 | (148.4) | |
Ending balance | 5,440.6 | ||
Accounting Standards Update 2016-01 and 2014-09 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cumulative effect of change in accounting principles | $ 7.5 | ||
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (155.4) | 234 | |
Total other comprehensive income (loss) | 258.8 | (148.4) | |
Cumulative effect of change in accounting principles | (33.9) | ||
Ending balance | 103.4 | 51.7 | |
Accumulated Other Comprehensive Income | Accounting Standards Update 2016-01 and 2014-09 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cumulative effect of change in accounting principles | $ (33.9) | ||
Foreign currency translation adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (375.6) | (281.5) | |
Change in accumulated other comprehensive (loss) income before reclassifications | 10.2 | 9.2 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Total other comprehensive income (loss) | 10.2 | 9.2 | |
Cumulative effect of change in accounting principles | 0 | ||
Ending balance | (365.4) | (272.3) | |
Net unrealized gains on securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 301 | 581.2 | |
Change in accumulated other comprehensive (loss) income before reclassifications | 247.3 | (177.9) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 1.6 | 2.7 | |
Total other comprehensive income (loss) | 248.9 | (175.2) | |
Cumulative effect of change in accounting principles | (33.9) | ||
Ending balance | 549.9 | 372.1 | |
Net unrealized gains on derivative transactions | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 18.4 | 0 | |
Change in accumulated other comprehensive (loss) income before reclassifications | 0.3 | 21.1 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.6) | 0 | |
Total other comprehensive income (loss) | (0.3) | 21.1 | |
Cumulative effect of change in accounting principles | 0 | ||
Ending balance | 18.1 | 21.1 | |
OTTI | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 15.1 | 17.9 | |
Change in accumulated other comprehensive (loss) income before reclassifications | (0.2) | (3.5) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Total other comprehensive income (loss) | (0.2) | (3.5) | |
Cumulative effect of change in accounting principles | 0 | ||
Ending balance | 14.9 | 14.4 | |
Unamortized net (losses) on Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (114.3) | (83.6) | |
Change in accumulated other comprehensive (loss) income before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.2 | 0 | |
Total other comprehensive income (loss) | 0.2 | 0 | |
Cumulative effect of change in accounting principles | 0 | ||
Ending balance | $ (114.1) | $ (83.6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gains on investments, excluding other-than-temporary impairment losses | $ 29.1 | $ 0.5 |
Net of tax | 168.6 | 106 |
Interest expense | (26.5) | (21.5) |
Provision for income taxes | 0.2 | (5.6) |
Total reclassifications for the period, net of tax | 1.2 | 2.7 |
Net unrealized gains on securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 1.6 | 2.7 |
Unamortized net (losses) on Pension Plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 0.2 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | (0.6) | 0 |
Total reclassifications for the period, net of tax | 1.2 | 2.7 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains on securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gains on investments, excluding other-than-temporary impairment losses | 2.1 | 3.4 |
Provision for income taxes | (0.5) | (0.7) |
Net of tax | 1.6 | 2.7 |
Reclassification out of Accumulated Other Comprehensive Income | Unamortized net (losses) on Pension Plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | (0.1) | 0 |
Total reclassifications for the period, net of tax | 0.2 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Settlement gain | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 0.3 | 0 |
Interest Expense | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | (0.7) | 0 |
Provision for income taxes | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | $ 0.1 | $ 0 |
Stock Based Compensation - Long
Stock Based Compensation - Long-Term Equity Incentive Plans (Details) | May 07, 2019shares |
Subsequent Event | Long-Term Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company's common stock authorized to employees (in shares) (up to) | 1,588,797 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Units (Details) - Long-Term Equity Incentive Plan - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 7 | $ 5.1 |
Income tax benefit | (1.3) | (0.8) |
Compensation expense, net of tax | $ 5.7 | $ 4.3 |
RSUs granted (in shares) | 193,842 | 389,499 |
Weighted average grant date fair value per unit (in dollars per share) | $ 97.78 | $ 90.73 |
Total fair value of vested RSUs | $ 21.8 | $ 16.2 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | ||
Unrecognized compensation cost | $ 37.2 | |
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 1 year 6 months |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Stock Units (Details) - Long-Term Equity Incentive Plan - Performance Share Units - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 4.2 | $ 4.2 |
Income tax benefit | (0.6) | (0.9) |
Compensation expense, net of tax | $ 3.6 | $ 3.3 |
PSUs granted (in shares) | 246,219 | 0 |
Weighted average grant date fair value per unit (in dollars per share) | $ 105.23 | $ 0 |
Total fair value of vested PSUs | $ 17.7 | $ 0 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | ||
Unrecognized compensation cost | $ 44.3 | |
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 1 year 6 months |
Equity Transactions - Narrative
Equity Transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||||
Share repurchases (in shares) | 525,679 | 0 | ||
Acquisition of common stock | $ 50.6 | |||
Amount remaining under total repurchase authorization | $ 710.6 | |||
Preferred stock, shares issued (in shares) | 2,875,000 | 2,875,000 | ||
Preferred stock dividends | $ 4.7 | |||
Series D MCPS | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares issued (in shares) | 2,875,000 | 2,875,000 | ||
Public Offering price (in dollars per share) | $ 100 | $ 100 | ||
Net proceeds from sale of stock | $ 276.4 | |||
Share interest rate | 6.50% | |||
Liquidation price (in dollars per share) | $ 100 | |||
Minimum | Series D MCPS | ||||
Class of Stock [Line Items] | ||||
Stock conversion ratio (in shares) | 0.9362 | |||
Maximum | Series D MCPS | ||||
Class of Stock [Line Items] | ||||
Stock conversion ratio (in shares) | 1.1234 |
Earnings Per Common Share - Net
Earnings Per Common Share - Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator | ||
Net income attributable to stockholders | $ 165.7 | $ 106 |
Less: Preferred stock dividends | (4.7) | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | 161 | 106 |
Less: Common stock dividends paid | (37.4) | (29.7) |
Undistributed earnings | $ 123.6 | $ 76.3 |
Denominator | ||
Weighted average common shares outstanding used in basic earnings per common share (in shares) | 62,594,828 | 53,169,358 |
Incremental common shares from: | ||
Weighted average common shares used in diluted earnings per common share calculations (in shares) | 65,777,945 | 54,189,498 |
Earnings per common share - Basic | ||
Distributed earnings (in dollars per share) | $ 0.60 | $ 0.56 |
Undistributed earnings (in dollars per share) | 1.97 | 1.43 |
Net income (in dollars per share) | 2.57 | 1.99 |
Earnings per common share - Diluted | ||
Distributed earnings (in dollars per share) | 0.57 | 0.55 |
Undistributed earning (in dollars per share) | 1.95 | 1.41 |
Net income (in dollars per share) | $ 2.52 | $ 1.96 |
PSUs | ||
Incremental common shares from: | ||
Incremental common shares (in shares) | 211,477 | 308,418 |
ESPP | ||
Incremental common shares from: | ||
Incremental common shares (in shares) | 1,765 | 0 |
Series D MCPS | ||
Incremental common shares from: | ||
Mandatory convertible preferred stock (in shares) | 2,969,875 | 711,722 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding anti-dilutive shares excluded from computation of diluted EPS (in shares) | 102,594 | 4,171 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding anti-dilutive shares excluded from computation of diluted EPS (in shares) | 43,964 |
Retirement and Other Employee_3
Retirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Plan | Qualified Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 6.5 | $ 5.8 |
Expected return on plan assets | (9) | (9.1) |
Amortization of net loss | 0 | 0.2 |
Net periodic benefit cost | (2.5) | (3.1) |
Pension Plan | Unfunded Nonqualified Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.7 | 0.7 |
Expected return on plan assets | 0 | 0 |
Amortization of net loss | 0.3 | 0.5 |
Net periodic benefit cost | 1 | 1.2 |
Retirement Health Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.9 | 0.8 |
Expected return on plan assets | (0.4) | (0.5) |
Amortization of net loss | 0 | 0 |
Net periodic benefit cost | $ 0.5 | $ 0.3 |
Retirement and Other Employee_4
Retirement and Other Employee Benefits - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | ||
Qualified pension benefits plan under-funded amount | $ 70,100,000 | $ 65,100,000 |
Funded status percentage | 110.00% | 110.00% |
Cash contribution to qualified pension benefits plan | $ 0 | |
Cash expected contribution to plan over remainder of fiscal year | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 12.3 | $ 13.2 |