Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 25, 2016 | |
Document Document and Entity Information [Abstract] | ||
Entity Registrant Name | Unum Group | |
Trading Symbol | UNM | |
Entity Central Index Key | 5,513 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 232,119,111 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investments | ||
Fixed Maturity Securities - at fair value (amortized cost: $39,625.1; $39,658.7) | $ 46,315.5 | $ 43,354.4 |
Mortgage Loans | 1,970.4 | 1,883.6 |
Policy Loans | 3,432.8 | 3,395.4 |
Other Long-term Investments | 634.3 | 583 |
Short-term Investments | 755.6 | 807.3 |
Total Investments | 53,108.6 | 50,023.7 |
Other Assets | ||
Cash and Bank Deposits | 87.9 | 112.9 |
Accounts and Premiums Receivable | 1,625.9 | 1,598.4 |
Reinsurance Recoverable | 4,845.6 | 4,725.1 |
Accrued Investment Income | 694.4 | 702.8 |
Deferred Acquisition Costs | 2,048.4 | 2,008.5 |
Goodwill | 336.8 | 230.9 |
Property and Equipment | 509.7 | 523.9 |
Other Assets | 647.8 | 637.4 |
Total Assets | 63,905.1 | 60,563.6 |
Liabilities | ||
Policy and Contract Benefits | 1,483.5 | 1,484.6 |
Reserves for Future Policy and Contract Benefits | 45,745.1 | 43,540.6 |
Unearned Premiums | 427.8 | 384.2 |
Other Policyholders' Funds | 1,619.6 | 1,674.6 |
Income Tax Payable | 0 | 6 |
Deferred Income Tax | 358.5 | 91.8 |
Short-term Debt | 0 | 352 |
Long-term Debt | 3,019.8 | 2,449.4 |
Payables for Collateral on Investments | 440.1 | 415.4 |
Other Liabilities | 1,449.5 | 1,501.1 |
Total Liabilities | 54,543.9 | 51,899.7 |
Commitments and Contingent Liabilities - Note 10 | ||
Stockholders' Equity | ||
Common Stock, $0.10 par; authorized: 725,000,000 shares; issued: 303,330,937 and 302,702,811 shares | 30.3 | 30.3 |
Additional Paid-in Capital | 2,263 | 2,247.2 |
Accumulated Other Comprehensive Income | 450.7 | 16.1 |
Retained Earnings | 8,542.4 | 7,995.2 |
Treasury Stock - at cost: 71,235,465 and 61,785,466 shares | (1,925.2) | (1,624.9) |
Total Stockholders' Equity | 9,361.2 | 8,663.9 |
Total Liabilities and Stockholders' Equity | $ 63,905.1 | $ 60,563.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Investments | ||
Fixed Maturity Securities, Amortized Cost | $ 39,625.1 | $ 39,658.7 |
Stockholders' Equity | ||
Common Stock, Par | $ 0.10 | $ 0.10 |
Common Stock, Authorized | 725,000,000 | 725,000,000 |
Common Stock, Issued | 303,330,937 | 302,702,811 |
Treasury Stock, Shares at Cost | 71,235,465 | 61,785,466 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue | ||||
Premium Income | $ 2,089.4 | $ 2,020.8 | $ 6,258.5 | $ 6,044.6 |
Net Investment Income | 611.4 | 612.1 | 1,841.1 | 1,844.8 |
Realized Investment Gain (Loss) | ||||
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0 | (9.4) | (30.5) | (22) |
Net Realized Investment Gain (Loss), Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 11 | (17.2) | 26.3 | (19.1) |
Net Realized Investment Gain (Loss) | 11 | (26.6) | (4.2) | (41.1) |
Other Income | 51.5 | 51.5 | 154.6 | 160.6 |
Total Revenue | 2,763.3 | 2,657.8 | 8,250 | 8,008.9 |
Benefits and Expenses | ||||
Benefits and Change in Reserves for Future Benefits | 1,742.6 | 1,690.9 | 5,205.9 | 5,047.6 |
Commissions | 256.8 | 246.3 | 771.7 | 747.8 |
Interest and Debt Expense | 45.2 | 38.1 | 126.2 | 113.9 |
Deferral of Acquisition Costs | (147.8) | (139.4) | (447) | (425.1) |
Amortization of Deferred Acquisition Costs | 118.8 | 117 | 377.2 | 375.4 |
Compensation Expense | 210.1 | 205.9 | 620.6 | 624 |
Other Expenses | 205.5 | 200.1 | 618.9 | 603.6 |
Total Benefits and Expenses | 2,431.2 | 2,358.9 | 7,273.5 | 7,087.2 |
Income Before Income Tax | 332.1 | 298.9 | 976.5 | 921.7 |
Income Tax | ||||
Current | 84 | 95.1 | 242.7 | 241.6 |
Deferred | 12.1 | 0 | 50.4 | 39.1 |
Total Income Tax | 96.1 | 95.1 | 293.1 | 280.7 |
Net Income | $ 236 | $ 203.8 | $ 683.4 | $ 641 |
Net Income Per Common Share | ||||
Basic | $ 1.01 | $ 0.83 | $ 2.89 | $ 2.58 |
Assuming Dilution | $ 1.01 | $ 0.83 | $ 2.88 | $ 2.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 236 | $ 203.8 | $ 683.4 | $ 641 |
Other Comprehensive Income (Loss) | ||||
Change in Net Unrealized Gain on Securities Before Adjustment (net of tax expense (benefit) of $113.9; $(89.6); $1,008.1; $(561.7)) | 277.2 | (168.5) | 1,999.2 | (1,085.4) |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance (net of tax expense (benefit) of $(51.7); $113.9; $(707.0); $500.8) | (135.1) | 215 | (1,400.3) | 953.7 |
Change in Net Gain on Cash Flow Hedges (net of tax expense (benefit) of $(4.3); $4.7; $(22.3); $7.5) | (8.4) | 13.4 | (42.8) | 14.1 |
Change in Foreign Currency Translation Adjustment (net of tax benefit of $-; $-; $-; $0.1) | (25.8) | (44.1) | (131.6) | (33.2) |
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense of $1.7; $1.4; $5.3; $3.3) | 3 | 2.8 | 10.1 | 6.4 |
Total Other Comprehensive Income (Loss) | 110.9 | 18.6 | 434.6 | (144.4) |
Comprehensive Income | $ 346.9 | $ 222.4 | $ 1,118 | $ 496.6 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in Net Unrealized Gain on Securities Before Adjustment, Tax Expense (Benefit) | $ 113.9 | $ (89.6) | $ 1,008.1 | $ (561.7) |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance, Tax Expense (Benefit) | (51.7) | 113.9 | (707) | 500.8 |
Change in Net Gain on Cash Flow Hedges, Tax Expense (Benefit) | (4.4) | 4.7 | (22.3) | 7.5 |
Change in Foreign Currency Translation Adjustment, Tax Benefit | 0 | 0 | 0 | (0.1) |
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense | $ 1.7 | $ 1.4 | $ 5.3 | $ 3.3 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock |
Balance at Beginning of Year at Dec. 31, 2014 | $ 30.2 | $ 2,221.2 | $ 166.4 | $ 7,302.3 | $ (1,198.2) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Common Stock Activity | 18 | |||||
Other Comprehensive Income (Loss) | $ (144.4) | (144.4) | ||||
Net Income | 641 | 641 | ||||
Dividends to Stockholders (per common share: $0.570; $0.515) | (129.2) | |||||
Purchases of Treasury Stock | (326.2) | (326.2) | ||||
Balance at End of Period at Sep. 30, 2015 | 8,581.1 | 30.2 | 2,239.2 | 22 | 7,814.1 | (1,524.4) |
Balance at Beginning of Year at Dec. 31, 2015 | 8,663.9 | 30.3 | 2,247.2 | 16.1 | 7,995.2 | (1,624.9) |
Increase (Decrease) in Stockholders' Equity | ||||||
Common Stock Activity | 15.8 | |||||
Other Comprehensive Income (Loss) | 434.6 | 434.6 | ||||
Net Income | 683.4 | 683.4 | ||||
Dividends to Stockholders (per common share: $0.570; $0.515) | (136.2) | |||||
Purchases of Treasury Stock | (300.3) | (300.3) | ||||
Balance at End of Period at Sep. 30, 2016 | $ 9,361.2 | $ 30.3 | $ 2,263 | $ 450.7 | $ 8,542.4 | $ (1,925.2) |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Retained Earnings | ||
Dividends to Stockholders, per common share | $ 0.570 | $ 0.515 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net Income | $ 683.4 | $ 641 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||
Change in Receivables | (65.7) | (4.6) |
Change in Deferred Acquisition Costs | (69.8) | (49.7) |
Change in Insurance Reserves and Liabilities | 274.1 | 233.9 |
Change in Income Taxes | (0.8) | 164 |
Change in Other Accrued Liabilities | (37.6) | 5.7 |
Non-cash Components of Net Investment Income | (135) | (139.4) |
Net Realized Investment Loss | 4.2 | 41.1 |
Depreciation | 75.9 | 74 |
Other, Net | 26.2 | 33.4 |
Net Cash Provided by Operating Activities | 754.9 | 999.4 |
Cash Flows from Investing Activities | ||
Proceeds from Sales of Fixed Maturity Securities | 726.6 | 605.1 |
Proceeds from Maturities of Fixed Maturity Securities | 1,504.1 | 1,718.8 |
Proceeds from Sales and Maturities of Other Investments | 257.7 | 243.4 |
Purchases of Fixed Maturity Securities | (2,452.3) | (3,269.5) |
Purchases of Other Investments | (431.4) | (343.1) |
Net Sales of Short-term Investments | 38.6 | 381.5 |
Net Increase in Payables for Collateral on Investments | 24.7 | 336.6 |
Acquisition of Business, Net of Cash Acquired | 128.5 | 54.3 |
Net Purchases of Property and Equipment | (60.1) | (73.3) |
Net Cash Used by Investing Activities | (520.6) | (454.8) |
Cash Flows from Financing Activities | ||
Issuance of Long-term Debt | 609.1 | 0 |
Long-term Debt Repayments | (399) | (62.6) |
Issuance of Common Stock | 3.6 | 3 |
Repurchase of Common Stock | (309.1) | (326.2) |
Dividends Paid to Stockholders | (136.2) | (129.2) |
Other, Net | (27.7) | (22.8) |
Net Cash Used by Financing Activities | (259.3) | (537.8) |
Net Increase (Decrease) in Cash and Bank Deposits | (25) | 6.8 |
Cash and Bank Deposits at Beginning of Year | 112.9 | 102.5 |
Cash and Bank Deposits at End of Period | $ 87.9 | $ 109.3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2015 . In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of full year performance. |
Accounting Developments
Accounting Developments | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Developments | Accounting Developments Accounting Updates Adopted in 2016: Accounting Standards Codification (ASC) Description Date of Adoption Effect on Financial Statements ASC 820 "Fair Value Measurement" This update eliminated the requirement to categorize within the fair value hierarchy table investments whose fair value is measured at net asset value using the practical expedient. Instead, entities are required to disclose the fair value of these investments so that financial statement users can reconcile amounts reported in the fair value hierarchy table to the amounts reported on the consolidated balance sheets. The guidance is to be applied retrospectively. January 1, 2016 The adoption of this update had no effect on our financial position or results of operations but will modify certain of our annual reporting period disclosures for invested assets held in our employee benefit plans. ASC 835 "Interest - Imputation of Interest" This update simplified the presentation of deferred debt issuance costs by requiring these costs to be presented in the balance sheet as a reduction of the carrying amount of the debt liability to which the deferred costs relate, rather than classifying the deferred costs as an asset. This classification is consistent with the treatment of debt discounts. We applied the amendments in the update retrospectively, adjusting all prior periods in our consolidated financial statements and accompanying notes. January 1, 2016 The adoption of this update resulted in the following reclassification adjustments to our consolidated balance sheets but had no effect on our financial position or results of operations. December 31, 2015 Historical Accounting Method As Adjusted Effect of Change (in millions of dollars) Consolidated Balance Sheets Short-term Debt $ 352.4 $ 352.0 $ (0.4 ) Long-term Debt 2,475.1 2,449.4 (25.7 ) Other Assets 663.5 637.4 (26.1 ) Accounting Updates Outstanding: ASC Description Date of Adoption Effect on Financial Statements ASC 944 "Financial Services - Insurance" This update changes the disclosure requirements for certain insurance contracts. These changes include a requirement to disclose the rollforward of the liability for unpaid claims and claim adjustment expenses in both interim and annual reporting periods for long-duration and short-duration insurance contracts. Additional claims disclosures will also be required for short-duration contracts. The guidance is to be applied retrospectively. January 1, 2016 for annual reporting period disclosures and January 1, 2017 for interim reporting period disclosures. The disclosure requirements for annual reporting period 2016 are not applicable to our insurance contracts. We will adopt the interim reporting period disclosures effective January 1, 2017. The adoption of this update will have no effect on our financial position or results of operations. ASC 718 "Compensation - Stock Compensation" This update changes the accounting and disclosure requirements for certain aspects of share-based payments to employees. The update requires all income tax effects of stock-based compensation awards to be recognized in the income statement when the awards vest or are settled. The update also allows an employer to repurchase more of an employee's shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Transition guidance for the amendments varies between the retrospective, modified retrospective, and prospective methods depending on the specific requirement of the update. Early adoption is also permitted. January 1, 2017 The adoption of this update will not have a material effect on our financial position or results of operations. During periods in which the vesting date fair value differs materially from the grant date fair value of certain stock-based compensation awards, we may experience volatility in the income tax recognized in our results of operations. ASC 230 "Statement of Cash Flows" This update provides clarifying guidance intended to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addresses eight specific cash flow issues that relate to various transactions. The guidance is to be applied retrospectively, with early adoption permitted. January 1, 2018 The adoption of this update will result in reclassifications to certain cash receipts and payments within our consolidated statements of cash flows but will have no effect on our financial position or results of operations. ASC 606 "Revenue from Contracts with Customers" This update supersedes virtually all existing guidance regarding the recognition of revenue from customers. Specifically excluded from the scope of this update are insurance contracts, although our fee-based service products are included within the scope. The core principle of this guidance is that revenue recognition should depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance is to be applied retrospectively. January 1, 2018 The adoption of this update will not have a material effect on our financial position or results of operations. ASC Description Date of Adoption Effect on Financial Statements ASC 825 "Financial Instruments - Overall" This update changes the accounting and disclosure requirements for certain financial instruments. These changes include a requirement to measure equity investments, other than those that result in consolidation or are accounted for under the equity method, at fair value through net income unless the investment qualifies for certain practicability exceptions. In addition, the update clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. Changes also include the modification of certain disclosures around the fair value of financial instruments, including the requirement for separate presentation of financial assets and liabilities by measurement category, as well as the elimination of certain disclosures around methods and significant assumptions used to estimate fair value. The guidance is to be applied retrospectively. January 1, 2018 We have not yet determined the expected impact on our financial position or results of operations. ASC 842 "Leases" This update changes the accounting for leases, requiring lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments, and a corresponding asset, adjusted for certain items, is also recorded. Expense recognition for lessees will remain similar to current accounting requirements for capital and operating leases. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period presented. January 1, 2019 We have not yet determined the expected impact on our financial position or results of operations. ASC 326 "Financial Instruments - Credit Losses" This update amends the guidance on the impairment of financial instruments. The update adds an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses and will generally result in earlier recognition of allowances for losses. The current expected credit loss model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. The update also modifies the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. The reversal of previously recognized credit losses on available-for-sale fixed maturity securities is allowed under specified circumstances. Additional disclosures will also be required, including information used to develop the allowance for losses. The guidance is to be applied to most instruments in scope using a modified retrospective approach at the beginning of the earliest comparative period presented. For available-for-sale fixed maturity securities, the update is applied prospectively. Other-than-temporary impairment losses recognized on available-for-sale fixed maturity securities prior to adoption of the update cannot be reversed. January 1, 2020 We have not yet determined the expected impact on our financial position or results of operations. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, and securities lending agreements approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart. September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (in millions of dollars) Assets Fixed Maturity Securities $ 46,315.5 $ 46,315.5 $ 43,354.4 $ 43,354.4 Mortgage Loans 1,970.4 2,137.6 1,883.6 2,013.9 Policy Loans 3,432.8 3,556.7 3,395.4 3,498.0 Other Long-term Investments Derivatives 37.1 37.1 49.8 49.8 Equity Securities 1.2 1.2 1.4 1.4 Miscellaneous Long-term Investments 540.3 540.3 474.4 474.4 Liabilities Policyholders' Funds Deferred Annuity Products $ 602.7 $ 602.7 $ 608.8 $ 608.8 Supplementary Contracts without Life Contingencies 603.7 603.7 641.1 641.1 Short-term Debt — — 352.0 366.2 Long-term Debt 3,019.8 3,319.8 2,449.4 2,645.9 Payables for Collateral on Investments Federal Home Loan Bank (FHLB) Funding Agreements 349.5 349.5 350.0 350.0 Other Liabilities Derivatives 55.7 55.7 50.2 50.2 Embedded Derivative in Modified Coinsurance Arrangement 73.3 73.3 87.6 87.6 Unfunded Commitments to Investment Partnerships 5.4 5.4 5.0 5.0 The methods and assumptions used to estimate fair values of financial instruments are discussed as follows. Fair Value Measurements for Financial Instruments Not Carried at Fair Value Mortgage Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered for similar loans to borrowers with similar credit ratings and maturities. Loans with similar characteristics are aggregated for purposes of the calculations. These financial instruments are assigned a Level 2 within the fair value hierarchy. Policy Loans: Fair values for policy loans, net of reinsurance ceded, are estimated using discounted cash flow analyses and interest rates currently being offered to policyholders with similar policies. Carrying amounts for ceded policy loans, which equal $3,178.8 million and $3,150.1 million as of September 30, 2016 and December 31, 2015 , respectively, approximate fair value and are reported on a gross basis in our consolidated balance sheets. A change in interest rates for ceded policy loans will not impact our financial position because the benefits and risks are fully ceded to reinsuring counterparties. These financial instruments are assigned a Level 3 within the fair value hierarchy. Miscellaneous Long-term Investments: Carrying amounts for tax credit partnerships equal the unamortized balance of our contractual commitments and approximate fair value. Fair values for private equity partnerships are primarily derived from net asset values provided by the general partner in the partnerships' financial statements. Our private equity partnerships represent funds that are primarily invested in railcar leasing, the financial services industry, mezzanine debt, and bank loans. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. As of September 30, 2016 , we estimate that the underlying assets of the funds will be liquidated over the next one to eleven years . These financial instruments are assigned a Level 3 within the fair value hierarchy. Our shares of FHLB common stock are carried at cost, which approximates fair value. These financial instruments are considered restricted investments and are assigned a Level 2 within the fair value hierarchy. Policyholders' Funds: Policyholders' funds are comprised primarily of deferred annuity products and supplementary contracts without life contingencies and represent customer deposits plus interest credited at contract rates. Carrying amounts approximate fair value. These financial instruments are assigned a Level 3 within the fair value hierarchy. Fair values for insurance contracts other than investment contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in our overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts. Short-term Debt: Fair values for short-term debt are determined based on prices from independent pricing services that generally use observable inputs for securities or comparable securities in active markets in their valuation techniques. These financial instruments are assigned a Level 1. Long-term Debt: Fair values for long-term debt are obtained from independent pricing services or discounted cash flow analyses based on current incremental borrowing rates for similar types of borrowing arrangements. Debt instruments which are valued by pricing services using active trades for which there was current market activity in that specific debt instrument have fair values of $1,610.7 million and $956.4 million as of September 30, 2016 and December 31, 2015 , respectively, and are assigned a Level 1 within the fair value hierarchy. Debt instruments which are valued by pricing services that generally use observable inputs for securities or comparable securities in active markets in their valuation techniques have fair values of $1,709.1 million and $1,689.5 million as of September 30, 2016 and December 31, 2015 , respectively, and are assigned a Level 2. FHLB Funding Agreements: Funding agreements with the FHLB represent cash advances used for the purpose of investing in fixed maturity securities. Carrying amounts approximate fair value and are assigned a Level 2 within the fair value hierarchy. Unfunded Commitments to Investment Partnerships: Unfunded equity commitments represent amounts that we have committed to fund certain investment partnerships. These commitments are legally binding, subject to the partnerships meeting specified conditions. Carrying amounts approximate fair value and are assigned a Level 2 within the fair value hierarchy. Fair Value Measurements for Financial Instruments Carried at Fair Value We report fixed maturity securities, derivative financial instruments, and unrestricted equity securities at fair value in our consolidated balance sheets. The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. An active market for a financial instrument is a market in which transactions for an asset or a similar asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and should be used to measure fair value whenever available. Conversely, financial instruments rarely traded or not quoted have less observability and are measured at fair value using valuation techniques that require more judgment. Pricing observability is generally impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, and overall market conditions. Valuation techniques used for assets and liabilities accounted for at fair value are generally categorized into three types. The market approach uses prices and other relevant information from market transactions involving identical or comparable assets or liabilities. The income approach converts future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. The cost approach is based upon the amount that currently would be required to replace the service capacity of an asset, or the current replacement cost. We use valuation techniques that are appropriate in the circumstances and for which sufficient data are available that can be obtained without undue cost and effort. In some cases, a single valuation technique will be appropriate (for example, when valuing an asset or liability using quoted prices in an active market for identical assets or liabilities). In other cases, multiple valuation techniques will be appropriate. If we use multiple valuation techniques to measure fair value, we evaluate and weigh the results, as appropriate, considering the reasonableness of the range indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances. The selection of the valuation method(s) to apply considers the definition of an exit price and depends on the nature of the asset or liability being valued. For assets and liabilities accounted for at fair value, we generally use valuation techniques consistent with the market approach, and to a lesser extent, the income approach. We believe the market approach valuation technique provides more observable data than the income approach, considering the type of investments we hold. Our fair value measurements could differ significantly based on the valuation technique and available inputs. When using a pricing service, we obtain the vendor's pricing documentation to ensure we understand their methodologies. We periodically review and approve the selection of our pricing vendors to ensure we are in agreement with their current methodologies. When markets are less active, brokers may rely more on models with inputs based on the information available only to the broker. Our internal investment management professionals, which include portfolio managers and analysts, monitor securities priced by brokers and evaluate their prices for reasonableness based on benchmarking to available primary and secondary market information. In weighing a broker quote as an input to fair value, we place less reliance on quotes that do not reflect the result of market transactions. We also consider the nature of the quote, particularly whether the quote is a binding offer. If prices in an inactive market do not reflect current prices for the same or similar assets, adjustments may be necessary to arrive at fair value. When relevant market data is unavailable, which may be the case during periods of market uncertainty, the income approach can, in suitable circumstances, provide a more appropriate fair value. During 2016 , we have applied valuation techniques on a consistent basis to similar assets and liabilities and consistent with those techniques used at year end 2015 . We use observable and unobservable inputs in measuring the fair value of our fixed maturity and equity securities. For securities categorized as Level 1, fair values equal active Trade Reporting and Compliance Engine (TRACE) pricing or unadjusted broker market maker prices. For securities categorized as Level 2 or Level 3, inputs that may be used in valuing each class of securities at any given time period are presented as follows. Actual inputs used to determine fair values will vary for each reporting period depending on the availability of inputs which may, at times, be affected by the lack of market liquidity. Level 2 Level 3 Instrument Observable Inputs Unobservable Inputs United States Government and Government Agencies and Authorities Valuation Techniques Principally the market approach Not applicable Key Inputs Prices obtained from external pricing services States, Municipalities, and Political Subdivisions Valuation Techniques Principally the market approach Principally the market approach Key Inputs Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Relevant reports issued by analysts and rating agencies Non-binding broker quotes Audited financial statements Security and issuer level spreads Foreign Governments Valuation Techniques Principally the market approach Principally the market approach Key Inputs Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Non-binding broker quotes Non-binding broker quotes Call provisions Security and issuer level spreads Level 2 Level 3 Instrument Observable Inputs Unobservable Inputs Public Utilities Valuation Techniques Principally the market and income approaches Principally the market and income approaches Key Inputs TRACE pricing Change in benchmark reference Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Non-binding broker quotes Discount for size - illiquidity Benchmark yields Non-binding broker quotes Transactional data for new issuances and secondary trades Lack of marketability Security cash flows and structures Security and issuer level spreads Recent issuance / supply Volatility of credit Security and issuer level spreads Security creditor ratings/maturity/capital structure/optionality Public covenants Comparative bond analysis Relevant reports issued by analysts and rating agencies Audited financial statements Mortgage/Asset-Backed Securities Valuation Techniques Principally the market and income approaches Principally the market approach Key Inputs Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Non-binding broker quotes Non-binding broker quotes Security cash flows and structures Security and issuer level spreads Underlying collateral Prepayment speeds/loan performance/delinquencies Relevant reports issued by analysts and rating agencies Audited financial statements All Other Corporate Bonds Valuation Techniques Principally the market and income approaches Principally the market and income approaches Key Inputs TRACE pricing Change in benchmark reference Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Non-binding broker quotes Discount for size - illiquidity Benchmark yields Non-binding broker quotes Transactional data for new issuances and secondary trades Lack of marketability Security cash flows and structures Security and issuer level spreads Recent issuance / supply Volatility of credit Security and issuer level spreads Security creditor ratings/maturity/capital structure/optionality Public covenants Comparative bond analysis Level 2 Level 3 Instrument Observable Inputs Unobservable Inputs Relevant reports issued by analysts and rating agencies Audited financial statements Redeemable Preferred Stocks Valuation Techniques Principally the market approach Principally the market approach Key Inputs Non-binding broker quotes Non-binding broker quotes Benchmark yields Comparative bond analysis Call provisions Relevant reports issued by analysts and rating agencies Audited financial statements Equity Securities Valuation Techniques Principally the market approach Principally the market and income approaches Key Inputs Prices obtained from external pricing services Financial statement analysis Non-binding broker quotes Non-binding broker quotes The management of our investment portfolio includes establishing pricing policy and reviewing the reasonableness of sources and inputs used in developing pricing. We review all prices obtained to ensure they are consistent with a variety of observable market inputs and to verify the validity of a security's price. In the event we receive a vendor's market price that does not appear reasonable based on our market analysis, we may challenge the price and request further information about the assumptions and methodologies used by the vendor to price the security. We may change the vendor price based on a better data source such as an actual trade. We also review all price changes from the prior month which fall outside a predetermined corridor. The overall valuation process for determining fair values may include adjustments to valuations obtained from our pricing sources when they do not represent a valid exit price. These adjustments may be made when, in our judgment and considering our knowledge of the financial conditions and industry in which the issuer operates, certain features of the financial instrument require that an adjustment be made to the value originally obtained from our pricing sources. These features may include the complexity of the financial instrument, the market in which the financial instrument is traded, counterparty credit risk, credit structure, concentration, or liquidity. Additionally, an adjustment to the price derived from a model typically reflects our judgment of the inputs that other participants in the market for the financial instrument being measured at fair value would consider in pricing that same financial instrument. In the event an asset is sold, we test the validity of the fair value determined by our valuation techniques by comparing the selling price to the fair value determined for the asset in the immediately preceding month end reporting period. The parameters and inputs used to validate a price on a security may be adjusted for assumptions about risk and current market conditions on a quarter to quarter basis, as certain features may be more significant drivers of valuation at the time of pricing. Changes to inputs in valuations are not changes to valuation methodologies; rather, the inputs are modified to reflect direct or indirect impacts on asset classes from changes in market conditions. Fair values for derivatives other than embedded derivatives in modified coinsurance arrangements are based on market quotes or pricing models and represent the net amount of cash we would have paid or received if the contracts had been settled or closed as of the last day of the period. We analyze credit default swap spreads relative to the average credit spread embedded within the LIBOR-setting syndicate in determining the effect of credit risk on our derivatives' fair values. If net counterparty credit risk for a derivative asset is determined to be material and is not adequately reflected in the LIBOR-based fair value obtained from our pricing sources, we adjust the valuations obtained from our pricing sources. For purposes of valuing net counterparty risk, we measure the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position or transfer a net short position for a particular risk exposure in an orderly transaction between market participants at the measurement date under current market conditions. In regard to our own credit risk component, we adjust the valuation of derivative liabilities wherein the counterparty is exposed to our credit risk when the LIBOR-based valuation of our derivatives obtained from pricing sources does not effectively include an adequate credit component for our own credit risk. Fair values for our embedded derivative in a modified coinsurance arrangement are estimated using internal pricing models and represent the hypothetical value of the duration mismatch of assets and liabilities, interest rate risk, and third party credit risk embedded in the modified coinsurance arrangement. Certain of our investments do not have readily determinable market prices and/or observable inputs or may at times be affected by the lack of market liquidity. For these securities, we use internally prepared valuations combining matrix pricing with vendor purchased software programs, including valuations based on estimates of future profitability, to estimate the fair value. Additionally, we may obtain prices from independent third-party brokers to aid in establishing valuations for certain of these securities. Key assumptions used by us to determine fair value for these securities include risk free interest rates, risk premiums, performance of underlying collateral (if any), and other factors involving significant assumptions which may or may not reflect those of an active market. At September 30, 2016 , approximately 19.8 percent of our fixed maturity securities were valued using active trades from TRACE pricing or broker market maker prices for which there was current market activity in that specific security (comparable to receiving one binding quote). The prices obtained were not adjusted, and the assets were classified as Level 1, the highest category of the three-level fair value hierarchy classification wherein inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities. The remaining 80.2 percent of our fixed maturity securities were valued based on non-binding quotes or other observable and unobservable inputs, as discussed below. • Approximately 66.0 percent of our fixed maturity securities were valued based on prices from pricing services that generally use observable inputs such as prices for securities or comparable securities in active markets in their valuation techniques. These assets were classified as Level 2. Level 2 assets or liabilities are those valued using inputs (other than prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. • Approximately 3.3 percent of our fixed maturity securities were valued based on one or more non-binding broker quotes, if validated by observable market data, or on TRACE prices for identical or similar assets absent current market activity. When only one price is available, it is used if observable inputs and analysis confirms that it is appropriate. These assets, for which we were able to validate the price using other observable market data, were classified as Level 2. • Approximately 10.9 percent of our fixed maturity securities were valued based on prices of comparable securities, matrix pricing, market models, and/or internal models or were valued based on non-binding quotes with no other observable market data. These assets were classified as either Level 2 or Level 3, with the categorization dependent on whether there was other observable market data. Level 3 is the lowest category of the fair value hierarchy and reflects the judgment of management regarding what market participants would use in pricing assets or liabilities at the measurement date. Financial assets and liabilities categorized as Level 3 are generally those that are valued using unobservable inputs to extrapolate an estimated fair value. We consider transactions in inactive or disorderly markets to be less representative of fair value. We use all available observable inputs when measuring fair value, but when significant other unobservable inputs and adjustments are necessary, we classify these assets or liabilities as Level 3. Fair value measurements by input level for financial instruments carried at fair value are as follows: September 30, 2016 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 285.5 $ 1,166.7 $ — $ 1,452.2 States, Municipalities, and Political Subdivisions — 2,204.6 92.1 2,296.7 Foreign Governments — 981.7 — 981.7 Public Utilities 632.5 7,385.8 404.3 8,422.6 Mortgage/Asset-Backed Securities — 2,386.2 — 2,386.2 All Other Corporate Bonds 8,234.9 21,521.3 972.9 30,729.1 Redeemable Preferred Stocks — 23.5 23.5 47.0 Total Fixed Maturity Securities 9,152.9 35,669.8 1,492.8 46,315.5 Other Long-term Investments Derivatives Interest Rate Swaps — 3.2 — 3.2 Foreign Exchange Contracts — 33.9 — 33.9 Total Derivatives — 37.1 — 37.1 Equity Securities — — 1.2 1.2 Liabilities Other Liabilities Derivatives Interest Rate Swaps $ — $ 6.1 $ — $ 6.1 Foreign Exchange Contracts — 49.2 — 49.2 Credit Default Swaps — 0.4 — 0.4 Embedded Derivative in Modified Coinsurance Arrangement — — 73.3 73.3 Total Derivatives — 55.7 73.3 129.0 December 31, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 97.3 $ 1,367.9 $ — $ 1,465.2 States, Municipalities, and Political Subdivisions — 1,994.9 122.2 2,117.1 Foreign Governments — 998.7 52.9 1,051.6 Public Utilities 59.1 7,687.2 274.1 8,020.4 Mortgage/Asset-Backed Securities — 2,481.5 — 2,481.5 All Other Corporate Bonds 2,770.4 23,992.8 1,408.2 28,171.4 Redeemable Preferred Stocks — 23.4 23.8 47.2 Total Fixed Maturity Securities 2,926.8 38,546.4 1,881.2 43,354.4 Other Long-term Investments Derivatives Interest Rate Swaps — 2.4 — 2.4 Foreign Exchange Contracts — 47.4 — 47.4 Total Derivatives — 49.8 — 49.8 Equity Securities — — 1.4 1.4 Liabilities Other Liabilities Derivatives Interest Rate Swaps $ — $ 12.3 $ — $ 12.3 Foreign Exchange Contracts — 37.6 — 37.6 Credit Default Swaps — 0.3 — 0.3 Embedded Derivative in Modified Coinsurance Arrangement — — 87.6 87.6 Total Derivatives — 50.2 87.6 137.8 Transfers of assets between Level 1 and Level 2 are as follows: Three Months Ended September 30 2016 2015 Transfers into Level 1 from Level 2 Level 2 from Level 1 Level 1 from Level 2 Level 2 from Level 1 (in millions of dollars) Fixed Maturity Securities United States Government and Government Agencies and Authorities $ — $ 418.1 $ — $ — States, Municipalities, and Political Subdivisions — 79.0 — — Public Utilities 316.7 487.5 157.2 231.8 All Other Corporate Bonds 2,618.6 3,461.3 2,128.2 2,933.6 Total Fixed Maturity Securities $ 2,935.3 $ 4,445.9 $ 2,285.4 $ 3,165.4 Nine Months Ended September 30 2016 2015 Transfers into Level 1 from Level 2 from Level 1 from Level 2 from (in millions of dollars) Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 25.0 $ — $ 219.7 $ — Public Utilities 469.5 29.3 306.1 57.0 All Other Corporate Bonds 4,688.2 957.0 3,665.3 1,156.9 Total Fixed Maturity Securities $ 5,182.7 $ 986.3 $ 4,191.1 $ 1,213.9 Transfers between Level 1 and Level 2 occurred due to the change in availability of either a TRACE or broker market maker price. Depending on current market conditions, the availability of these Level 1 prices can vary from period to period. For fair value measurements of financial instruments that were transferred either into or out of Level 1 or 2, we reflect the transfers using the fair value at the beginning of the period. Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows: Three Months Ended September 30, 2016 Total Realized and Unrealized Investment Gains (Losses) Included in Beginning of Period Earnings Other Comprehensive Income or Loss Purchases Sales Level 3 Transfers End of Period Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 61.6 $ — $ 0.1 $ — $ — $ 30.4 $ — $ 92.1 Public Utilities 453.5 — (3.2 ) — (0.3 ) 62.1 (107.8 ) 404.3 All Other Corporate Bonds 1,359.6 0.8 8.0 — (24.0 ) 326.2 (697.7 ) 972.9 Redeemable Preferred Stocks 23.6 — (0.1 ) — — — 23.5 Total Fixed Maturity Securities 1,898.3 0.8 4.8 — (24.3 ) 418.7 (805.5 ) 1,492.8 Equity Securities 1.2 — — — — — — 1.2 Embedded Derivative in Modified Coinsurance Arrangement (83.0 ) 9.7 — — — — — (73.3 ) Three Months Ended September 30, 2015 Total Realized and Unrealized Investment Gains (Losses) Included in Beginning of Period Earnings Other Comprehensive Income or Loss Purchases Sales Level 3 Transfers End of Period Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 136.7 $ — $ (2.4 ) $ — $ — $ — $ (7.7 ) $ 126.6 Foreign Governments 69.8 — (1.5 ) — — — — 68.3 Public Utilities 357.8 — 1.3 40.0 — 9.0 (88.6 ) 319.5 All Other Corporate Bonds 1,321.9 — (13.9 ) — (61.9 ) 225.1 (456.1 ) 1,015.1 Redeemable Preferred Stocks 24.8 — — — — — — 24.8 Total Fixed Maturity Securities 1,911.0 — (16.5 ) 40.0 (61.9 ) 234.1 (552.4 ) 1,554.3 Equity Securities 1.4 — 0.1 — — — — 1.5 Embedded Derivative in Modified Coinsurance Arrangement (55.8 ) (27.3 ) — — — — — (83.1 ) Nine Months Ended September 30, 2016 Total Realized and Beginning Earnings Other Purchases Sales Level 3 Transfers End of Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 122.2 $ — $ 4.2 $ — $ (0.3 ) $ — $ (34.0 ) $ 92.1 Foreign Governments 52.9 — — — — — (52.9 ) — Public Utilities 274.1 — 3.9 — (0.7 ) 276.9 (149.9 ) 404.3 All Other Corporate Bonds 1,408.2 1.4 52.7 20.0 (61.8 ) 381.4 (829.0 ) 972.9 Redeemable Preferred Stocks 23.8 — (0.3 ) — — — — 23.5 Total Fixed Maturity Securities 1,881.2 1.4 60.5 20.0 (62.8 ) 658.3 (1,065.8 ) 1,492.8 Equity Securities 1.4 — 0.1 — (0.3 ) — — 1.2 Embedded Derivative in Modified Coinsurance Arrangement (87.6 ) 14.3 — — — — — (73.3 ) Nine Months Ended September 30, 2015 Total Realized and Beginning Earnings Other Purchases Sales Level 3 Transfers End of Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 140.1 $ — $ (4.7 ) $ — $ (0.8 ) $ — $ (8.0 ) $ 126.6 Foreign Governments 69.3 — (1.0 ) — — — — 68.3 Public Utilities 315.0 — (2.9 ) 40.0 (2.3 ) 70.7 (101.0 ) 319.5 All Other Corporate Bonds 1,425.3 2.1 (35.8 ) 25.0 (142.2 ) 307.1 (566.4 ) 1,015.1 Redeemable Preferred Stocks 24.9 — (0.1 ) — — — — 24.8 Total Fixed Maturity Securities 1,974.6 2.1 (44.5 ) 65.0 (145.3 ) 377.8 (675.4 ) 1,554.3 Equity Securities 1.4 — 0.1 — — — — 1.5 Embedded Derivative in Modified Coinsurance Arrangement (49.9 ) (33.2 ) — — — — — (83.1 ) Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains (losses) which are included in earnings and are attributable to the change in fair value of assets or liabilities valued using significant unobservable inputs and still held at period end were $9.7 million and $14.3 million for the three and nine months ended September 30, 2016 , respectively, and $(27.3) million and $(33.2) million for the three and nine months ended September 30, 2015 . These amounts relate entirely to the change in fair value of an embedded derivative in a modified coinsurance arrangement and are reported as a component of realized investment gains and losses. The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources. September 30, 2016 Fair Value Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities All Other Corporate Bonds - Private $ 143.4 Comparability Adjustment (b) 0.50% - 0.50% / 0.50% Equity Securities - Private 1.1 Market Convention (f) Priced at Cost or Owner's Equity Embedded Derivative in Modified Coinsurance Arrangement (73.3 ) Projected Liability Cash Flows (g) Actuarial Assumptions December 31, 2015 Fair Value Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions - Private |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 65% <= 75% 962.6 842.5 > 75% <= 85% 73.1 88.4 > 85% 45.6 15.5 Total $ 1,970.4 $ 1,883.6 During the third quarter of 2016 we foreclosed on a mortgage loan with a carrying value of $5.4 million . We did not recognize a loss at foreclosure as the value of the underlying property exceeded the carrying value of the loan. There have been no other troubled debt restructurings during 2016 and there were no troubled debt restructurings during the three and nine months ended September 30, 2015. At September 30, 2016 and December 31, 2015 , we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. There have been no changes to our accounting policies or methodology from the prior period regarding estimating the allowance for credit losses on our mortgage loans. As of September 30, 2016 and December 31, 2015, we had no allowance for credit losses, and there has been no activity in the allowance for credit losses during 2016. The balance in our allowance for credit losses was $1.5 million at the beginning of 2015. During the second quarter of 2015, we increased the provision by $0.5 million , resulting in a total allowance for credit losses of $2.0 million . The loan was repaid during the three months ended September 30, 2015, with a corresponding release of the $2.0 million allowance for credit losses and an additional de minimis loss recognized at repayment. Our average investment in impaired mortgage loans was $3.6 million and $3.0 million for the three and nine months ended September 30, 2016 , respectively, and $8.4 million and $11.5 million for the three and nine months ended September 30, 2015 , respectively. We did not recognize any interest income on mortgage loans subsequent to impairment during the three and nine months ended September 30, 2016 , respectively, and interest income recognized on mortgage loans subsequent to impairment was $0.2 million and $0.6 million for the three and nine months ended September 30, 2015 , respectively. At September 30, 2016 , we had commitments of $38.0 million to fund certain commercial mortgage loans, the amount of which may or may not be funded. Transfers of Financial Assets To manage our cash position more efficiently, we may enter into repurchase agreements with unaffiliated financial institutions. We generally use repurchase agreements as a means to finance the purchase of invested assets or for short-term general business purposes until projected cash flows become available from our operations or existing investments. Our repurchase agreements are typically outstanding for less than 30 days . We post collateral through our repurchase agreement transactions whereby the counterparty commits to purchase securities with the agreement to resell them to us at a later, specified date. The fair value of collateral posted is generally 102 percent of the cash received. Our investment policy also permits us to lend fixed maturity securities to unaffiliated financial institutions in short-term securities lending agreements. These agreements increase our investment income with minimal risk. Our securities lending policy requires that a minimum of 102 percent of the fair value of the securities loaned be maintained as collateral. We may receive cash and/or securities as collateral under these agreements. Cash received as collateral is typically reinvested in short-term investments. If securities are received as collateral, we are not permitted to sell or re-post them. As of September 30, 2016 , the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $210.0 million , for which we received collateral in the form of cash and securities of $56.6 million and $161.3 million , respectively. As of December 31, 2015 , the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $181.6 million , for which we received collateral in the form of cash and securities of $29.0 million and $159.3 million , respectively. We had no outstanding repurchase agreements at September 30, 2016 or December 31, 2015 . The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows: September 30, 2016 December 31, 2015 Overnight and Continuous (in millions of dollars) United States Government and Government Agencies and Authorities $ 9.8 $ 1.2 Public Utilities 4.0 4.0 All Other Corporate Bonds 42.8 23.8 Total Borrowings 56.6 29.0 Gross Amount of Recognized Liability for Securities Lending Transactions 56.6 29.0 Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein $ — $ — Certain of our U.S. insurance subsidiaries are members of regional FHLBs. Membership, which requires that we purchase a minimum amount of FHLB common stock on which we receive dividends, provides access to low-cost funding. As of September 30, 2016 and December 31, 2015 , we owned $31.6 million and $30.9 million of FHLB common stock, respectively. Advances from the regional FHLBs for the purpose of purchasing fixed maturity securities totaled $349.5 million and $350.0 million as of September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016 , the carrying value of fixed maturity securities and commercial mortgage loans posted as collateral to the regional FHLBs was $329.2 million and $81.1 million , respectively. As of December 31, 2015 , the carrying value of fixed maturity securities and commercial mortgage loans posted as collateral to the regional FHLBs was $317.2 million and $96.0 million , respectively. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. Offsetting of Financial Instruments We enter into master netting agreements with each of our derivatives counterparties. These agreements provide for conditional rights of set-off upon the occurrence of an early termination event. An early termination event is considered a default, and it allows the non-defaulting party to offset its contracts in a loss position against any gain positions or payments due to the defaulting party. Under our agreements, default type events are defined as failure to pay or deliver as contractually agreed, misrepresentation, bankruptcy, or merger without assumption. See Note 5 for further discussion of collateral related to our derivative contracts. We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities. A right of set-off exists that allows us to keep and apply collateral received in the event of default by the counterparty. Default within a securities lending agreement would typically occur if the counterparty failed to return the securities borrowed from us as contractually agreed. In addition, if we default by not returning collateral received, the counterparty has a right of set-off against our securities or any other amounts due to us. Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties. September 30, 2016 Gross Amount Gross Amount Not of Recognized Gross Amount Net Amount Offset in Balance Sheet Financial Offset in Presented in Financial Cash Net Instruments Balance Sheet Balance Sheet Instruments Collateral Amount (in millions of dollars) Financial Assets: Derivatives $ 37.1 $ — $ 37.1 $ (8.2 ) $ (28.8 ) $ 0.1 Securities Lending 210.0 — 210.0 (153.4 ) (56.6 ) — Total $ 247.1 $ — $ 247.1 $ (161.6 ) $ (85.4 ) $ 0.1 Financial Liabilities: Derivatives $ 55.7 $ — $ 55.7 $ (41.5 ) $ — $ 14.2 Securities Lending 56.6 — 56.6 (56.6 ) — — Total $ 112.3 $ — $ 112.3 $ (98.1 ) $ — $ 14.2 December 31, 2015 Gross Amount Gross Amount Not of Recognized Gross Amount Net Amount Offset in Balance Sheet Financial Offset in Presented in Financial Cash Net Instruments Balance Sheet Balance Sheet Instruments Collateral Amount (in millions of dollars) Financial Assets: Derivatives $ 49.8 $ — $ 49.8 $ (12.8 ) $ (36.4 ) $ 0.6 Securities Lending 181.6 — 181.6 (152.6 ) (29.0 ) — Total $ 231.4 $ — $ 231.4 $ (165.4 ) $ (65.4 ) $ 0.6 Financial Liabilities: Derivatives $ 50.2 $ — $ 50.2 $ (35.6 ) $ — $ 14.6 Securities Lending 29.0 — 29.0 (29.0 ) — — Total $ 79.2 $ — $ 79.2 $ (64.6 ) $ — $ 14.6 Net Investment Income Net investment income reported in our consolidated statements of income is as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Fixed Maturity Securities $ 573.2 $ 573.3 $ 1,716.6 $ 1,732.4 Derivatives 12.6 11.3 36.9 33.7 Mortgage Loans 30.6 26.8 87.6 82.5 Policy Loans 4.4 4.2 12.8 12.4 Other Long-term Investments (0.9 ) 7.1 15.4 15.9 Short-term Investments 2.4 0.7 6.0 2.4 Gross Investment Income 622.3 623.4 1,875.3 1,879.3 Less Investment Expenses 7.4 7.7 23.5 23.5 Less Investment Income on Participation Fund Account Assets 3.5 3.6 10.7 11.0 Net Investment Income $ 611.4 $ 612.1 $ 1,841.1 $ 1,844.8 Realized Investment Gain and Loss Realized investment gains and losses are as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Fixed Maturity Securities Gross Gains on Sales $ 1.6 $ 12.4 $ 29.4 $ 19.8 Gross Losses on Sales (0.4 ) (4.4 ) (14.0 ) (12.0 ) Other-Than-Temporary Impairment Loss — (9.4 ) (30.5 ) (22.0 ) Mortgage Loans and Other Invested Assets Gross Gains on Sales 0.2 5.1 4.0 14.0 Gross Losses on Sales — — (0.7 ) — Impairment Loss — (1.1 ) (3.1 ) (4.8 ) Embedded Derivative in Modified Coinsurance Arrangement 9.7 (27.3 ) 14.3 (33.2 ) All Other Derivatives 0.1 (1.0 ) (3.5 ) (1.3 ) Foreign Currency Transactions (0.2 ) (0.9 ) (0.1 ) (1.6 ) Net Realized Investment Gain (Loss) $ 11.0 $ (26.6 ) $ (4.2 ) $ (41.1 )" id="sjs-B4">Fixed Maturity Securities At September 30, 2016 and December 31, 2015 , all fixed maturity securities were classified as available-for-sale. The amortized cost and fair values of securities by security type are shown as follows: September 30, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (in millions of dollars) United States Government and Government Agencies and Authorities $ 1,194.7 $ 257.5 $ — $ 1,452.2 States, Municipalities, and Political Subdivisions 1,832.5 464.4 0.2 2,296.7 Foreign Governments 749.0 232.7 — 981.7 Public Utilities 6,904.0 1,519.9 1.3 8,422.6 Mortgage/Asset-Backed Securities 2,178.8 207.7 0.3 2,386.2 All Other Corporate Bonds 26,722.1 4,088.8 81.8 30,729.1 Redeemable Preferred Stocks 44.0 3.5 0.5 47.0 Total Fixed Maturity Securities $ 39,625.1 $ 6,774.5 $ 84.1 $ 46,315.5 December 31, 2015 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (in millions of dollars) United States Government and Government Agencies and Authorities $ 1,265.8 $ 207.3 $ 7.9 $ 1,465.2 States, Municipalities, and Political Subdivisions 1,828.3 293.4 4.6 2,117.1 Foreign Governments 897.2 154.4 — 1,051.6 Public Utilities 6,979.3 1,057.4 16.3 8,020.4 Mortgage/Asset-Backed Securities 2,318.6 167.6 4.7 2,481.5 All Other Corporate Bonds 26,325.5 2,454.1 608.2 28,171.4 Redeemable Preferred Stocks 44.0 3.8 0.6 47.2 Total Fixed Maturity Securities $ 39,658.7 $ 4,338.0 $ 642.3 $ 43,354.4 The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position. September 30, 2016 Less Than 12 Months 12 Months or Greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of dollars) States, Municipalities, and Political Subdivisions $ 21.1 $ 0.2 $ 1.0 $ — Public Utilities 64.5 1.0 16.9 0.3 Mortgage/Asset-Backed Securities 9.3 0.2 0.9 0.1 All Other Corporate Bonds 311.5 8.0 932.3 73.8 Redeemable Preferred Stocks 12.7 0.3 10.8 0.2 Total Fixed Maturity Securities $ 419.1 $ 9.7 $ 961.9 $ 74.4 December 31, 2015 Less Than 12 Months 12 Months or Greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of dollars) United States Government and Government Agencies and Authorities $ 213.5 $ 7.9 $ — $ — States, Municipalities, and Political Subdivisions 112.3 4.3 3.3 0.3 Public Utilities 408.4 14.4 10.3 1.9 Mortgage/Asset-Backed Securities 504.3 4.6 9.0 0.1 All Other Corporate Bonds 6,155.0 464.2 554.7 144.0 Redeemable Preferred Stocks 10.4 0.6 — — Total Fixed Maturity Securities $ 7,403.9 $ 496.0 $ 577.3 $ 146.3 The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for possible calls or prepayments. September 30, 2016 Total Amortized Cost Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 1,313.5 $ 26.9 $ 1,333.6 $ 0.1 $ 6.7 Over 1 year through 5 years 6,304.0 634.1 6,693.0 13.3 231.8 Over 5 years through 10 years 11,073.3 1,269.9 11,663.0 44.6 635.6 Over 10 years 18,755.5 4,635.9 22,868.9 25.8 496.7 37,446.3 6,566.8 42,558.5 83.8 1,370.8 Mortgage/Asset-Backed Securities 2,178.8 207.7 2,376.0 0.3 10.2 Total Fixed Maturity Securities $ 39,625.1 $ 6,774.5 $ 44,934.5 $ 84.1 $ 1,381.0 December 31, 2015 Total Amortized Cost Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 1,112.2 $ 20.6 $ 1,098.8 $ 0.2 $ 33.8 Over 1 year through 5 years 6,514.0 554.4 6,649.5 49.8 369.1 Over 5 years through 10 years 10,519.3 746.3 7,124.4 320.5 3,820.7 Over 10 years 19,194.6 2,849.1 18,532.3 267.1 3,244.3 37,340.1 4,170.4 33,405.0 637.6 7,467.9 Mortgage/Asset-Backed Securities 2,318.6 167.6 1,968.2 4.7 513.3 Total Fixed Maturity Securities $ 39,658.7 $ 4,338.0 $ 35,373.2 $ 642.3 $ 7,981.2 At September 30, 2016 , the fair value of investment-grade fixed maturity securities was $42,704.1 million , with a gross unrealized gain of $6,608.9 million and a gross unrealized loss of $15.7 million . The gross unrealized loss on investment-grade fixed maturity securities was 18.7 percent of the total gross unrealized loss on fixed maturity securities. Unrealized losses on investment-grade fixed maturity securities principally relate to changes in interest rates or changes in market or sector credit spreads which occurred subsequent to the acquisition of the securities. At September 30, 2016 , the fair value of below-investment-grade fixed maturity securities was $3,611.4 million , with a gross unrealized gain of $165.6 million and a gross unrealized loss of $68.4 million . The gross unrealized loss on below-investment-grade fixed maturity securities was 81.3 percent of the total gross unrealized loss on fixed maturity securities. Generally, below-investment-grade fixed maturity securities are more likely to develop credit concerns than investment-grade securities. At September 30, 2016 , the unrealized losses in our below-investment-grade fixed maturity securities were generally due to credit spreads in certain industries or sectors and, to a lesser extent, credit concerns related to specific securities. For each specific security in an unrealized loss position, we believe that there are positive factors which mitigate credit concerns and that the securities for which we have not recorded an other-than-temporary impairment will recover in value. As of September 30, 2016 , we held 147 individual investment-grade fixed maturity securities and 55 individual below-investment-grade fixed maturity securities that were in an unrealized loss position, of which 17 investment-grade fixed maturity securities and 43 below-investment-grade fixed maturity securities had been in an unrealized loss position continuously for over one year. Of the 147 individual investment-grade securities in an unrealized loss position, 113 are held in the portfolio acquired through our purchase of H&J Capital, L.L.C., parent of Starmount Life Insurance Company and AlwaysCare Benefits (which collectively we refer to as Starmount) in the third quarter of 2016. The fair value of the Starmount portfolio was $39.3 million and had a net unrealized loss of $0.2 million at September 30, 2016. See Note 7 of the "Notes to Consolidated Financial Statements" contained herein in Item 1 for further information. In determining when a decline in fair value below amortized cost of a fixed maturity security is other than temporary, we evaluate the following factors: • Whether we expect to recover the entire amortized cost basis of the security • Whether we intend to sell the security or will be required to sell the security before the recovery of its amortized cost basis • Whether the security is current as to principal and interest payments • The significance of the decline in value • The time period during which there has been a significant decline in value • Current and future business prospects and trends of earnings • The valuation of the security's underlying collateral • Relevant industry conditions and trends relative to their historical cycles • Market conditions • Rating agency and governmental actions • Bid and offering prices and the level of trading activity • Adverse changes in estimated cash flows for securitized investments • Changes in fair value subsequent to the balance sheet date • Any other key measures for the related security While determining other-than-temporary impairments is a judgmental area, we utilize a formal, well-defined, and disciplined process to monitor and evaluate our fixed income investment portfolio, supported by issuer specific research and documentation as of the end of each period. The process results in a thorough evaluation of problem investments and the recording of losses on a timely basis for investments determined to have an other-than-temporary impairment. We held no fixed maturity securities as of September 30, 2016 or December 31, 2015 for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive income. At September 30, 2016 , we had commitments of $75.5 million to fund private placement fixed maturity securities, the amount of which may or may not be funded. Variable Interest Entities We invest in variable interests issued by variable interest entities. These investments include tax credit partnerships, private equity partnerships, and special purpose entities. For those variable interests that are not consolidated in our financial statements, we are not the primary beneficiary because we have neither the power to direct the activities that are most significant to economic performance nor the responsibility to absorb a majority of the expected losses. The determination of whether we are the primary beneficiary is performed at the time of our initial investment and at the date of each subsequent reporting period. As of September 30, 2016 , the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $507.9 million , comprised of $174.4 million of tax credit partnerships and $333.5 million of private equity partnerships. These variable interest entity investments are reported as other long-term investments in our consolidated balance sheets. The Company invests in tax credit partnerships primarily for the receipt of income tax credits and tax benefits derived from passive losses on the investments. Amounts recognized in the consolidated statements of income are as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Income Tax Credits $ 10.4 $ 10.4 $ 31.3 $ 31.4 Amortization, net of tax (5.8 ) (5.9 ) (17.4 ) (17.5 ) Income Tax Benefit $ 4.6 $ 4.5 $ 13.9 $ 13.9 Contractually, we are a limited partner in these tax credit partnerships, and our maximum exposure to loss is limited to the carrying value of our investment, which includes $4.8 million of unfunded unconditional commitments at September 30, 2016 . At September 30, 2016, we also have unfunded unconditional commitments of $0.6 million to fund certain private equity partnerships as well as commitments of $260.4 million , the amount of which may or may not be funded. We are the sole beneficiary of a special purpose entity which is consolidated in our financial statements. This entity is a securitized asset trust containing a highly rated bond for principal protection and a private equity partnership investment which we contributed into the trust at the time it was established. There are no restrictions on the assets held in this trust, and the trust is free to dispose of the assets at any time. The fair values of the bond and partnership were $153.7 million and $0.9 million , respectively, as of September 30, 2016 . The bond is reported as a component of fixed maturity securities, and the partnership is reported as a component of other long-term investments in our consolidated balance sheets. At September 30, 2016 , we had no commitments to fund the underlying partnership, nor did we fund any amounts to the partnership during the nine months ended September 30, 2016 and 2015 . Mortgage Loans Our mortgage loan portfolio is well diversified by both geographic region and property type to reduce risk of concentration. All of our mortgage loans are collateralized by commercial real estate. When issuing a new loan, our general policy is not to exceed a loan-to-value ratio, or the ratio of the loan balance to the estimated fair value of the underlying collateral, of 75 percent. We update the loan-to-value ratios at least every three years for each loan, and properties undergo a general inspection at least every two years. Our general policy for newly issued loans is to have a debt service coverage ratio greater than 1.25 times on a normalized 25 year amortization period. We update our debt service coverage ratios annually. Mortgage loans by property type and geographic region are presented below. September 30, 2016 December 31, 2015 (in millions of dollars) Carrying Percent of Carrying Percent of Amount Total Amount Total Property Type Apartment $ 245.7 12.5 % $ 130.6 6.9 % Industrial 591.5 30.0 574.1 30.5 Office 701.1 35.6 764.7 40.6 Retail 410.6 20.8 392.3 20.8 Other 21.5 1.1 21.9 1.2 Total $ 1,970.4 100.0 % $ 1,883.6 100.0 % Region New England $ 73.6 3.7 % $ 97.6 5.2 % Mid-Atlantic 113.7 5.8 128.8 6.9 East North Central 215.3 10.9 186.4 9.9 West North Central 173.6 8.8 162.6 8.6 South Atlantic 417.6 21.2 409.3 21.7 East South Central 97.9 5.0 79.1 4.2 West South Central 250.7 12.7 237.6 12.6 Mountain 209.2 10.6 196.5 10.4 Pacific 418.8 21.3 385.7 20.5 Total $ 1,970.4 100.0 % $ 1,883.6 100.0 % We evaluate each of our mortgage loans individually for impairment and assign an internal credit quality rating based on a comprehensive rating system used to evaluate the credit risk of the loan. The factors we use to derive our internal credit ratings may include the following: • Loan-to-value ratio • Debt service coverage ratio based on current operating income • Property location, including regional economics, trends and demographics • Age, condition, and construction quality of property • Current and historical occupancy of property • Lease terms relative to market • Tenant size and financial strength • Borrower's financial strength • Borrower's equity in transaction • Additional collateral, if any Although all available and applicable factors are considered in our analysis, loan-to-value and debt service coverage ratios are the most critical factors in determining whether we will initially issue the loan and also in assigning values and determining impairment. We assign an overall rating to each loan using an internal rating scale of Aa (highest quality) to B (lowest quality). We review and adjust, as needed, our internal credit quality ratings on an annual basis. This review process is performed more frequently for mortgage loans deemed to have a higher risk of delinquency. Mortgage loans, sorted by the applicable credit quality indicators, are as follows: September 30 December 31 (in millions of dollars) Internal Rating Aa $ 0.8 $ 1.1 A 488.3 586.6 Baa 1,445.1 1,285.8 Ba 36.2 10.1 Total $ 1,970.4 $ 1,883.6 Loan-to-Value Ratio <= 65% $ 889.1 $ 937.2 > 65% <= 75% 962.6 842.5 > 75% <= 85% 73.1 88.4 > 85% 45.6 15.5 Total $ 1,970.4 $ 1,883.6 During the third quarter of 2016 we foreclosed on a mortgage loan with a carrying value of $5.4 million . We did not recognize a loss at foreclosure as the value of the underlying property exceeded the carrying value of the loan. There have been no other troubled debt restructurings during 2016 and there were no troubled debt restructurings during the three and nine months ended September 30, 2015. At September 30, 2016 and December 31, 2015 , we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. There have been no changes to our accounting policies or methodology from the prior period regarding estimating the allowance for credit losses on our mortgage loans. As of September 30, 2016 and December 31, 2015, we had no allowance for credit losses, and there has been no activity in the allowance for credit losses during 2016. The balance in our allowance for credit losses was $1.5 million at the beginning of 2015. During the second quarter of 2015, we increased the provision by $0.5 million , resulting in a total allowance for credit losses of $2.0 million . The loan was repaid during the three months ended September 30, 2015, with a corresponding release of the $2.0 million allowance for credit losses and an additional de minimis loss recognized at repayment. Our average investment in impaired mortgage loans was $3.6 million and $3.0 million for the three and nine months ended September 30, 2016 , respectively, and $8.4 million and $11.5 million for the three and nine months ended September 30, 2015 , respectively. We did not recognize any interest income on mortgage loans subsequent to impairment during the three and nine months ended September 30, 2016 , respectively, and interest income recognized on mortgage loans subsequent to impairment was $0.2 million and $0.6 million for the three and nine months ended September 30, 2015 , respectively. At September 30, 2016 , we had commitments of $38.0 million to fund certain commercial mortgage loans, the amount of which may or may not be funded. Transfers of Financial Assets To manage our cash position more efficiently, we may enter into repurchase agreements with unaffiliated financial institutions. We generally use repurchase agreements as a means to finance the purchase of invested assets or for short-term general business purposes until projected cash flows become available from our operations or existing investments. Our repurchase agreements are typically outstanding for less than 30 days . We post collateral through our repurchase agreement transactions whereby the counterparty commits to purchase securities with the agreement to resell them to us at a later, specified date. The fair value of collateral posted is generally 102 percent of the cash received. Our investment policy also permits us to lend fixed maturity securities to unaffiliated financial institutions in short-term securities lending agreements. These agreements increase our investment income with minimal risk. Our securities lending policy requires that a minimum of 102 percent of the fair value of the securities loaned be maintained as collateral. We may receive cash and/or securities as collateral under these agreements. Cash received as collateral is typically reinvested in short-term investments. If securities are received as collateral, we are not permitted to sell or re-post them. As of September 30, 2016 , the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $210.0 million , for which we received collateral in the form of cash and securities of $56.6 million and $161.3 million , respectively. As of December 31, 2015 , the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $181.6 million , for which we received collateral in the form of cash and securities of $29.0 million and $159.3 million , respectively. We had no outstanding repurchase agreements at September 30, 2016 or December 31, 2015 . The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows: September 30, 2016 December 31, 2015 Overnight and Continuous (in millions of dollars) United States Government and Government Agencies and Authorities $ 9.8 $ 1.2 Public Utilities 4.0 4.0 All Other Corporate Bonds 42.8 23.8 Total Borrowings 56.6 29.0 Gross Amount of Recognized Liability for Securities Lending Transactions 56.6 29.0 Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein $ — $ — Certain of our U.S. insurance subsidiaries are members of regional FHLBs. Membership, which requires that we purchase a minimum amount of FHLB common stock on which we receive dividends, provides access to low-cost funding. As of September 30, 2016 and December 31, 2015 , we owned $31.6 million and $30.9 million of FHLB common stock, respectively. Advances from the regional FHLBs for the purpose of purchasing fixed maturity securities totaled $349.5 million and $350.0 million as of September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016 , the carrying value of fixed maturity securities and commercial mortgage loans posted as collateral to the regional FHLBs was $329.2 million and $81.1 million , respectively. As of December 31, 2015 , the carrying value of fixed maturity securities and commercial mortgage loans posted as collateral to the regional FHLBs was $317.2 million and $96.0 million , respectively. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. Offsetting of Financial Instruments We enter into master netting agreements with each of our derivatives counterparties. These agreements provide for conditional rights of set-off upon the occurrence of an early termination event. An early termination event is considered a default, and it allows the non-defaulting party to offset its contracts in a loss position against any gain positions or payments due to the defaulting party. Under our agreements, default type events are defined as failure to pay or deliver as contractually agreed, misrepresentation, bankruptcy, or merger without assumption. See Note 5 for further discussion of collateral related to our derivative contracts. We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities. A right of set-off exists that allows us to keep and apply collateral received in the event of default by the counterparty. Default within a securities lending agreement would typically occur if the counterparty failed to return the securities borrowed from us as contractually agreed. In addition, if we default by not returning collateral received, the counterparty has a right of set-off against our securities or any other amounts due to us. Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties. September 30, 2016 Gross Amount Gross Amount Not of Recognized Gross Amount Net Amount Offset in Balance Sheet Financial Offset in Presented in Financial Cash Net Instruments Balance Sheet Balance Sheet Instruments Collateral Amount (in millions of dollars) Financial Assets: Derivatives $ 37.1 $ — $ 37.1 $ (8.2 ) $ (28.8 ) $ 0.1 Securities Lending 210.0 — 210.0 (153.4 ) (56.6 ) — Total $ 247.1 $ — $ 247.1 $ (161.6 ) $ (85.4 ) $ 0.1 Financial Liabilities: Derivatives $ 55.7 $ — $ 55.7 $ (41.5 ) $ — $ 14.2 Securities Lending 56.6 — 56.6 (56.6 ) — — Total $ 112.3 $ — $ 112.3 $ (98.1 ) $ — $ 14.2 December 31, 2015 Gross Amount Gross Amount Not of Recognized Gross Amount Net Amount Offset in Balance Sheet Financial Offset in Presented in Financial Cash Net Instruments Balance Sheet Balance Sheet Instruments Collateral Amount (in millions of dollars) Financial Assets: Derivatives $ 49.8 $ — $ 49.8 $ (12.8 ) $ (36.4 ) $ 0.6 Securities Lending 181.6 — 181.6 (152.6 ) (29.0 ) — Total $ 231.4 $ — $ 231.4 $ (165.4 ) $ (65.4 ) $ 0.6 Financial Liabilities: Derivatives $ 50.2 $ — $ 50.2 $ (35.6 ) $ — $ 14.6 Securities Lending 29.0 — 29.0 (29.0 ) — — Total $ 79.2 $ — $ 79.2 $ (64.6 ) $ — $ 14.6 Net Investment Income Net investment income reported in our consolidated statements of income is as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Fixed Maturity Securities $ 573.2 $ 573.3 $ 1,716.6 $ 1,732.4 Derivatives 12.6 11.3 36.9 33.7 Mortgage Loans 30.6 26.8 87.6 82.5 Policy Loans 4.4 4.2 12.8 12.4 Other Long-term Investments (0.9 ) 7.1 15.4 15.9 Short-term Investments 2.4 0.7 6.0 2.4 Gross Investment Income 622.3 623.4 1,875.3 1,879.3 Less Investment Expenses 7.4 7.7 23.5 23.5 Less Investment Income on Participation Fund Account Assets 3.5 3.6 10.7 11.0 Net Investment Income $ 611.4 $ 612.1 $ 1,841.1 $ 1,844.8 Realized Investment Gain and Loss Realized investment gains and losses are as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Fixed Maturity Securities Gross Gains on Sales $ 1.6 $ 12.4 $ 29.4 $ 19.8 Gross Losses on Sales (0.4 ) (4.4 ) (14.0 ) (12.0 ) Other-Than-Temporary Impairment Loss — (9.4 ) (30.5 ) (22.0 ) Mortgage Loans and Other Invested Assets Gross Gains on Sales 0.2 5.1 4.0 14.0 Gross Losses on Sales — — (0.7 ) — Impairment Loss — (1.1 ) (3.1 ) (4.8 ) Embedded Derivative in Modified Coinsurance Arrangement 9.7 (27.3 ) 14.3 (33.2 ) All Other Derivatives 0.1 (1.0 ) (3.5 ) (1.3 ) Foreign Currency Transactions (0.2 ) (0.9 ) (0.1 ) (1.6 ) Net Realized Investment Gain (Loss) $ 11.0 $ (26.6 ) $ (4.2 ) $ (41.1 ) |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements [Abstract] | |
Derivative Financial Instruments | Purpose of Derivatives We are exposed to certain risks relating to our ongoing business operations. The primary risks managed by using derivative instruments are interest rate risk, risk related to matching duration for our assets and liabilities, foreign currency risk, and credit risk. Historically, we have utilized current and forward interest rate swaps and options on forward interest rate swaps and U.S. Treasury rates, current and forward currency swaps, forward treasury locks, currency forward contracts, forward contracts on specific fixed income securities, and credit default swaps. Transactions hedging interest rate risk are primarily associated with our individual and group long-term care and individual and group disability products. All other product portfolios are periodically reviewed to determine if hedging strategies would be appropriate for risk management purposes. We do not use derivative financial instruments for speculative purposes. Derivatives designated as cash flow hedges and used to reduce our exposure to interest rate and duration risk are as follows: • Interest rate swaps are used to hedge interest rate risks and to improve the matching of assets and liabilities. An interest rate swap is an agreement in which we agree with other parties to exchange, at specified intervals, the difference between fixed rate and variable rate interest amounts. We use interest rate swaps to hedge the anticipated purchase of fixed maturity securities thereby protecting us from the potential adverse impact of declining interest rates on the associated policy reserves. We also use interest rate swaps to hedge the potential adverse impact of rising interest rates in anticipation of issuing fixed rate long-term debt. • Forward treasury locks are used to minimize interest rate risk associated with the anticipated purchase or disposal of fixed maturity securities. A forward treasury lock is a derivative contract without an initial investment where we and the counterparty agree to purchase or sell a specific U.S. Treasury bond at a future date at a pre-determined price. Derivatives designated as fair value hedges and used to reduce our exposure to interest rate and duration risk are as follows: • Interest rate swaps are used to effectively convert certain of our fixed rate securities into floating rate securities which are used to fund our floating rate long-term debt. Under these swap agreements, we receive a variable rate of interest and pay a fixed rate of interest. Additionally, we use interest rate swaps to effectively convert certain fixed rate, long-term debt into floating rate long-term debt. Under these swap agreements, we receive a fixed rate of interest and pay a variable rate of interest. Derivatives designated as cash flow hedges and used to reduce our exposure to foreign currency risk are as follows: • Foreign currency interest rate swaps have historically been used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification and to hedge the currency risk associated with certain of the principal and interest payments of the U.S. dollar-denominated debt issued by one of our U.K. subsidiaries. For hedges of fixed maturity securities, we agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. For hedges of debt issued, we paid, at specified intervals, fixed rate foreign currency-denominated principal and interest payments to the counterparty in exchange for fixed rate U.S. dollar-denominated principal and interest payments. Derivatives not designated as hedging instruments and used to reduce our exposure to foreign currency risk, credit losses on securities owned, and interest rate risk are as follows: • Foreign currency interest rate swaps previously designated as hedges were used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification. We agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. We hold offsetting swaps wherein we agree to pay fixed rate principal and interest payments in the functional currency of the operating segment in exchange for fixed rate foreign currency-denominated payments. • Credit default swaps are used as economic hedges against credit risk but do not qualify for hedge accounting. A credit default swap is an agreement in which we agree with another party to pay, at specified intervals, a fixed-rate fee in exchange for insurance against a credit event on a specific investment. If a defined credit event occurs, our counterparty may either pay us a net cash settlement or we may surrender the specific investment to them in exchange for cash equal to the full notional amount of the swap. Credit events typically include events such as bankruptcy, failure to pay, or certain types of debt restructuring. • Interest rate swap is used to effectively convert certain of our floating rate, long-term debt into fixed rate long-term debt. Under this swap agreement, we receive a variable rate of interest and pay a fixed rate of interest. Derivative Risks The basic types of risks associated with derivatives are market risk (that the value of the derivative will be adversely impacted by changes in the market, primarily the change in interest and exchange rates) and credit risk (that the counterparty will not perform according to the terms of the contract). The market risk of the derivatives should generally offset the market risk associated with the hedged financial instrument or liability. To help limit the credit exposure of the derivatives, we enter into master netting agreements with our counterparties whereby contracts in a gain position can be offset against contracts in a loss position. We also typically enter into bilateral, cross-collateralization agreements with our counterparties to help limit the credit exposure of the derivatives. These agreements require the counterparty in a loss position to submit acceptable collateral with the other counterparty in the event the net loss position meets or exceeds an agreed upon amount. Our current credit exposure on derivatives, which is limited to the value of those contracts in a net gain position, including accrued interest receivable less collateral held, was $0.1 million at September 30, 2016 . We held $34.0 million and $36.4 million cash collateral from our counterparties at September 30, 2016 and December 31, 2015 , respectively. We post either fixed maturity securities or cash as collateral to our counterparties. The carrying value of fixed maturity securities posted as collateral to our counterparties was $39.0 million and $27.3 million at September 30, 2016 and December 31, 2015 , respectively. We had no cash posted as collateral to our counterparties at September 30, 2016 or December 31, 2015 . See Note 4 for further discussion of our master netting agreements. The majority of our derivative instruments contain provisions that require us to maintain specified issuer credit ratings and financial strength ratings. Should our ratings fall below these specified levels, we would be in violation of the provisions, and our derivatives counterparties could terminate our contracts and request immediate payment. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position was $55.7 million and $50.2 million at September 30, 2016 and December 31, 2015 , respectively. Derivative Transactions The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated. Swaps Receive Variable/Pay Fixed Receive Fixed/Pay Fixed Receive Fixed/Pay Variable Credit Default Forwards Total (in millions of dollars) Balance at June 30, 2015 $ 150.0 $ 816.7 $ 600.0 $ 72.0 $ — $ 1,638.7 Additions — — — — 67.0 67.0 Terminations — 3.5 — 2.0 — 5.5 Balance at September 30, 2015 $ 150.0 $ 813.2 $ 600.0 $ 70.0 $ 67.0 $ 1,700.2 Balance at December 31, 2014 $ 150.0 $ 840.4 $ 600.0 $ 97.0 $ — $ 1,687.4 Additions — — — 2.0 94.0 96.0 Terminations — 27.2 — 29.0 27.0 83.2 Balance at September 30, 2015 $ 150.0 $ 813.2 $ 600.0 $ 70.0 $ 67.0 $ 1,700.2 Balance at June 30, 2016 $ 126.0 $ 644.5 $ 600.0 $ 70.0 $ — $ 1,440.5 Additions 3.5 — — — — 3.5 Terminations — 7.1 350.0 — — 357.1 Balance at September 30, 2016 $ 129.5 $ 637.4 $ 250.0 $ 70.0 $ — $ 1,086.9 Balance at December 31, 2015 $ 150.0 $ 650.3 $ 600.0 $ 70.0 $ — $ 1,470.3 Additions 3.5 — — — — 3.5 Terminations 24.0 12.9 350.0 — — 386.9 Balance at September 30, 2016 $ 129.5 $ 637.4 $ 250.0 $ 70.0 $ — $ 1,086.9 Cash Flow Hedges As of September 30, 2016 and December 31, 2015 , we had $415.0 million and $427.9 million , respectively, notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities. For the three and nine months ended September 30, 2016 and 2015 , there was no material ineffectiveness related to our cash flow hedges, and no component of the derivative instruments' gain or loss was excluded from the assessment of hedge effectiveness. As of September 30, 2016 , we expect to amortize approximately $56.8 million of net deferred gains on derivative instruments during the next twelve months. This amount will be reclassified from accumulated other comprehensive income into earnings and reported on the same income statement line item as the hedged item. The income statement line items that will be affected by this amortization are net investment income and interest and debt expense. Additional amounts that may be reclassified from accumulated other comprehensive income into earnings to offset the earnings impact of foreign currency translation of hedged items are not estimable. As of September 30, 2016 , we are hedging the variability of future cash flows associated with forecasted transactions through the year 2038. Fair Value Hedges As of September 30, 2016 and December 31, 2015 , we had $126.0 million and $150.0 million , respectively, notional amount of receive variable, pay fixed interest rate swaps to hedge the changes in fair value of certain fixed rate securities held. These swaps effectively convert the associated fixed rate securities into floating rate securities, which are used to fund our floating rate long-term debt. The change in fair value of the hedged fixed maturity securities attributable to the hedged benchmark interest rate resulted in a loss of $1.7 million and $4.6 million for the three and nine months ended September 30, 2016 , respectively, and $0.7 million and $2.8 million for the three and nine months ended September 30, 2015 , respectively, with an offsetting gain on the related interest rate swaps. During the first quarter of 2016, we terminated $24.0 million notional amount of receive variable, pay fixed interest rate swaps in connection with the sale of the hedged securities and recorded a loss on the swap terminations of $1.2 million in our consolidated statements of income as a component of net realized investment gains and losses. As of September 30, 2016 and December 31, 2015 , we had $250.0 million and $600.0 million , respectively, notional amount of receive fixed, pay variable interest rate swaps to hedge the changes in the fair value of certain fixed rate long-term debt. These swaps effectively convert the associated fixed rate long-term debt into floating rate debt and provide for a better matching of interest rates with our short-term investments, which have frequent interest rate resets similar to a floating rate security. The change in fair value of the hedged debt attributable to the hedged benchmark interest rate resulted in a gain (loss) of $3.1 million and $(3.5) million for the three and nine months ended September 30, 2016 , respectively, and $(4.7) million and $(5.1) million for the three and nine months ended September 30, 2015 , respectively, with an offsetting gain or loss on the related interest rate swaps. During the third quarter of 2016, $350.0 million notional amount of receive fixed, pay variable interest rate swaps matured in conjunction with the maturity of the $350.0 million hedged fixed rate debt. See Note 11 of the "Notes to Consolidated Financial Statements" contained herein in Item 1 for further information. For the three and nine months ended September 30, 2016 , and 2015 , there was no material ineffectiveness related to our fair value hedges, and no component of the derivative instruments' gain or loss was excluded from the assessment of hedge effectiveness. There were no instances wherein we discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. Derivatives not Designated as Hedging Instruments As of September 30, 2016 and December 31, 2015 , we held $222.4 million notional amount of receive fixed, pay fixed, foreign currency interest rate swaps. These derivatives were not designated as hedges, and as such, changes in fair value related to these derivatives will be reported in earnings as a component of net realized investment gain or loss. As of September 30, 2016 and December 31, 2015 , we held $70.0 million notional amount of single name credit default swaps. We entered into these swaps in order to mitigate the credit risk associated with specific securities owned. As of September 30, 2016, we held $3.5 million notional amount of a receive variable, pay fixed interest rate swap acquired through our purchase of Starmount in the third quarter of 2016. This swap effectively converts Starmount's floating rate long-term debt of $3.5 million into fixed rate debt. See Note 7 of the "Notes to Consolidated Financial Statements" contained herein in Item 1 for further information. We have an embedded derivative in a modified coinsurance arrangement for which we include in our realized investment gains and losses a calculation intended to estimate the value of the option of our reinsurance counterparty to cancel the reinsurance contract with us. However, neither party can unilaterally terminate the reinsurance agreement except in extreme circumstances resulting from regulatory supervision, delinquency proceedings, or other direct regulatory action. Cash settlements or collateral related to this embedded derivative are not required at any time during the reinsurance contract or at termination of the reinsurance contract. There are no credit-related counterparty triggers, and any accumulated embedded derivative gain or loss reduces to zero over time as the reinsured business winds down. Locations and Amounts of Derivative Financial Instruments The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets. September 30, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (in millions of dollars) Designated as Hedging Instruments Interest Rate Swaps Other L-T Investments $ 3.2 Other Liabilities $ 5.1 Foreign Exchange Contracts Other L-T Investments 33.9 Other Liabilities 15.9 Total $ 37.1 $ 21.0 Not Designated as Hedging Instruments Credit Default Swaps Other Liabilities $ 0.4 Interest Rate Swaps Other Liabilities 1.0 Foreign Exchange Contracts Other Liabilities 33.3 Embedded Derivative in Modified Coinsurance Arrangement Other Liabilities 73.3 Total $ 108.0 December 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (in millions of dollars) Designated as Hedging Instruments Interest Rate Swaps Other L-T Investments $ 2.4 Other Liabilities $ 12.3 Foreign Exchange Contracts Other L-T Investments 47.4 Other Liabilities 6.0 Total $ 49.8 $ 18.3 Not Designated as Hedging Instruments Credit Default Swaps Other Liabilities $ 0.3 Foreign Exchange Contracts Other Liabilities 31.6 Embedded Derivative in Modified Coinsurance Arrangement Other Liabilities 87.6 Total $ 119.5 The following table summarizes the location of gains and losses on the effective portion of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of income and consolidated statements of comprehensive income. Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Forwards $ — $ (0.8 ) $ — $ (0.8 ) Foreign Exchange Contracts 0.3 33.5 (24.2 ) 59.9 Total $ 0.3 $ 32.7 $ (24.2 ) $ 59.1 Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Net Investment Income Interest Rate Swaps and Forwards $ 13.8 $ 12.8 $ 40.6 $ 38.3 Foreign Exchange Contracts (0.3 ) (0.3 ) (0.8 ) (1.3 ) Net Realized Investment Gain (Loss) Interest Rate Swaps — 0.3 3.2 0.6 Foreign Exchange Contracts — (0.2 ) (0.5 ) — Interest and Debt Expense Interest Rate Swaps (0.5 ) (0.5 ) (1.4 ) (1.4 ) Total $ 13.0 $ 12.1 $ 41.1 $ 36.2 The following table summarizes the location of gains and losses on our derivatives not designated as hedging instruments, as reported in our consolidated statements of income. Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Net Realized Investment Gain (Loss) Credit Default Swaps $ (0.3 ) $ 0.1 $ (0.7 ) $ (0.5 ) Interest Rate Swaps 0.1 — 0.1 — Foreign Exchange Contracts 0.3 (1.1 ) (1.7 ) (0.8 ) Embedded Derivative in Modified Coinsurance Arrangement 9.7 (27.3 ) 14.3 (33.2 ) Total $ 9.8 $ (28.3 ) $ 12.0 $ (34.5 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Components of our accumulated other comprehensive income, after tax, and related changes are as follows: Net Unrealized Gain on Securities Net Gain on Cash Flow Hedges Foreign Currency Translation Adjustment Unrecognized Pension and Postretirement Benefit Costs Total (in millions of dollars) Balance at June 30, 2016 $ 661.1 $ 343.6 $ (279.4 ) $ (385.5 ) $ 339.8 Other Comprehensive Income (Loss) Before Reclassifications 143.0 0.1 (25.8 ) 0.4 117.7 Amounts Reclassified from Accumulated Other Comprehensive Income or Loss (0.9 ) (8.5 ) — 2.6 (6.8 ) Net Other Comprehensive Income (Loss) 142.1 (8.4 ) (25.8 ) 3.0 110.9 Balance at September 30, 2016 $ 803.2 $ 335.2 $ (305.2 ) $ (382.5 ) $ 450.7 Balance at June 30, 2015 $ 112.1 $ 391.7 $ (102.5 ) $ (397.9 ) $ 3.4 Other Comprehensive Income (Loss) Before Reclassifications 47.0 21.3 (44.1 ) 0.9 25.1 Amounts Reclassified from Accumulated Other Comprehensive Income or Loss (0.5 ) (7.9 ) — 1.9 (6.5 ) Net Other Comprehensive Income (Loss) 46.5 13.4 (44.1 ) 2.8 18.6 Balance at September 30, 2015 $ 158.6 $ 405.1 $ (146.6 ) $ (395.1 ) $ 22.0 Balance at December 31, 2015 $ 204.3 $ 378.0 $ (173.6 ) $ (392.6 ) $ 16.1 Other Comprehensive Income (Loss) Before Reclassifications 588.9 (16.0 ) (131.6 ) 2.4 443.7 Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 10.0 (26.8 ) — 7.7 (9.1 ) Net Other Comprehensive Income (Loss) 598.9 (42.8 ) (131.6 ) 10.1 434.6 Balance at September 30, 2016 $ 803.2 $ 335.2 $ (305.2 ) $ (382.5 ) $ 450.7 Balance at December 31, 2014 $ 290.3 $ 391.0 $ (113.4 ) $ (401.5 ) $ 166.4 Other Comprehensive Income (Loss) Before Reclassifications (137.6 ) 37.9 (33.2 ) 0.7 (132.2 ) Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 5.9 (23.8 ) — 5.7 (12.2 ) Net Other Comprehensive Income (Loss) (131.7 ) 14.1 (33.2 ) 6.4 (144.4 ) Balance at September 30, 2015 $ 158.6 $ 405.1 $ (146.6 ) $ (395.1 ) $ 22.0 The net unrealized gain on securities consists of the following components: Change at September 30, 2016 September 30 June 30 December 31 Three Months Nine Months 2016 2016 2015 Ended Ended (in millions of dollars) Fixed Maturity Securities $ 6,690.4 $ 6,299.5 $ 3,695.7 $ 390.9 $ 2,994.7 Other Investments (21.1 ) (21.3 ) (33.7 ) 0.2 12.6 Deferred Acquisition Costs (56.1 ) (52.5 ) (29.4 ) (3.6 ) (26.7 ) Reserves for Future Policy and Contract Benefits (5,775.5 ) (5,578.6 ) (3,578.4 ) (196.9 ) (2,197.1 ) Reinsurance Recoverable 379.7 366.0 263.2 13.7 116.5 Income Tax (414.2 ) (352.0 ) (113.1 ) (62.2 ) (301.1 ) Total $ 803.2 $ 661.1 $ 204.3 $ 142.1 $ 598.9 Change at September 30, 2015 September 30 June 30 December 31 Three Months Nine Months 2015 2015 2014 Ended Ended (in millions of dollars) Fixed Maturity Securities $ 4,663.4 $ 4,901.2 $ 6,261.5 $ (237.8 ) $ (1,598.1 ) Other Investments (35.1 ) (14.8 ) 13.9 (20.3 ) (49.0 ) Deferred Acquisition Costs (40.0 ) (41.8 ) (50.8 ) 1.8 10.8 Reserves for Future Policy and Contract Benefits (4,649.7 ) (4,981.6 ) (6,150.3 ) 331.9 1,500.6 Reinsurance Recoverable 308.1 312.9 365.0 (4.8 ) (56.9 ) Income Tax (88.1 ) (63.8 ) (149.0 ) (24.3 ) 60.9 Total $ 158.6 $ 112.1 $ 290.3 $ 46.5 $ (131.7 ) Amounts reclassified from accumulated other comprehensive income or loss were recognized in our consolidated statements of income as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Net Unrealized Gain on Securities Net Realized Investment Gain (Loss) Net Gain on Sales of Securities and Other Invested Assets $ 1.1 $ 10.2 $ 14.8 $ 12.4 Other-Than-Temporary Impairment Loss — (9.4 ) (30.5 ) (22.0 ) 1.1 0.8 (15.7 ) (9.6 ) Income Tax Expense (Benefit) 0.2 0.3 (5.7 ) (3.7 ) Total $ 0.9 $ 0.5 $ (10.0 ) $ (5.9 ) Net Gain on Cash Flow Hedges Net Investment Income Gain on Interest Rate Swaps and Forwards $ 13.8 $ 12.8 $ 40.6 $ 38.3 Loss on Foreign Exchange Contracts (0.3 ) (0.3 ) (0.8 ) (1.3 ) Net Realized Investment Gain (Loss) Gain on Interest Rate Swaps — 0.3 3.2 0.6 Loss on Foreign Exchange Contracts — (0.2 ) (0.5 ) — Interest and Debt Expense Loss on Interest Rate Swaps (0.5 ) (0.5 ) (1.4 ) (1.4 ) 13.0 12.1 41.1 36.2 Income Tax Expense 4.5 4.2 14.3 12.4 Total $ 8.5 $ 7.9 $ 26.8 $ 23.8 Unrecognized Pension and Postretirement Benefit Costs Other Expenses Amortization of Net Actuarial Loss $ (4.1 ) $ (3.0 ) $ (12.2 ) $ (8.9 ) Amortization of Prior Service Credit — — 0.2 0.1 (4.1 ) (3.0 ) (12.0 ) (8.8 ) Income Tax Benefit (1.5 ) (1.1 ) (4.3 ) (3.1 ) Total $ (2.6 ) $ (1.9 ) $ (7.7 ) $ (5.7 ) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | We have three principal operating business segments: Unum US, Unum UK, and Colonial Life. Our other segments are Closed Block and Corporate. Business Acquired On August 1, 2016 , we acquired 100 percent of the shares and voting interests in Starmount, for an initial cash purchase price of $140.1 million plus contingent cash consideration of $10.0 million to be paid in two increments of $5.0 million each, at 18 and 24 months from the date of acquisition upon satisfaction of certain conditions. Starmount Life Insurance Company is an independent provider of dental and vision insurance in the U.S. workplace, and AlwaysCare Benefits is a nationally licensed, third-party administrator. The acquisition of Starmount will broaden our employee benefit offerings in the U.S. Starmount's dental and vision products and new dental and vision products to be marketed by Unum US are reported in our Unum US segment within our supplemental and voluntary product lines. Colonial Life dental and vision products are expected to be introduced in 2018. Starmount's revenues totaled $129.9 million in 2015. Total assets were valued at approximately $93.0 million as of the acquisition date and were primarily comprised of bonds, cash, accounts receivable, and intangible assets attributable to the value of business acquired and the value of existing state licenses. Total liabilities were valued at approximately $56.0 million as of the acquisition date and were primarily comprised of outstanding claim liabilities and reserves for future claims. The purchase price exceeded the fair value of the identifiable net assets by approximately $111.0 million and has been identified as goodwill, primarily attributable to the value of adding dental and vision to our current employee benefit offerings. Goodwill was allocated to the reporting units expected to benefit from the acquisition. Approximately 75 percent was allocated to our Unum US supplemental and voluntary product lines and approximately 25 percent to Colonial Life. The goodwill is not deductible for income tax purposes except upon disposition of the acquired entity. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, is not expected to have a material impact on revenue or results of operations for 2016. Segment information is as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Premium Income Unum US Group Disability Group Long-term Disability $ 428.1 $ 414.3 $ 1,291.6 $ 1,229.0 Group Short-term Disability 155.5 153.2 469.2 452.5 Group Life and Accidental Death & Dismemberment Group Life 353.4 336.5 1,053.6 1,007.5 Accidental Death & Dismemberment 35.3 32.1 104.8 98.0 Supplemental and Voluntary Individual Disability 125.6 119.6 374.4 355.9 Voluntary Benefits 197.1 186.1 602.1 565.5 Dental and Vision 20.0 — 20.0 — 1,315.0 1,241.8 3,915.7 3,708.4 Unum UK Group Long-term Disability 85.5 100.6 274.1 296.5 Group Life 24.9 29.7 80.9 90.6 Supplemental 16.9 14.3 52.4 38.7 127.3 144.6 407.4 425.8 Colonial Life Accident, Sickness, and Disability 207.7 196.5 619.2 591.1 Life 68.0 62.5 203.4 188.1 Cancer and Critical Illness 78.4 74.1 234.1 222.0 354.1 333.1 1,056.7 1,001.2 Closed Block Individual Disability 129.9 142.2 394.0 433.0 Long-term Care 161.4 158.6 482.0 475.0 All Other 1.7 0.5 2.7 1.2 293.0 301.3 878.7 909.2 Total Premium Income $ 2,089.4 $ 2,020.8 $ 6,258.5 $ 6,044.6 Unum US Unum UK Colonial Life Closed Block Corporate Total (in millions of dollars) Three Months Ended September 30, 2016 Premium Income $ 1,315.0 $ 127.3 $ 354.1 $ 293.0 $ — $ 2,089.4 Net Investment Income 207.3 28.5 36.1 334.1 5.4 611.4 Other Income 28.7 — 0.4 21.5 0.9 51.5 Operating Revenue $ 1,551.0 $ 155.8 $ 390.6 $ 648.6 $ 6.3 $ 2,752.3 Operating Income (Loss) $ 231.0 $ 28.2 $ 79.0 $ 28.6 $ (41.6 ) $ 325.2 Three Months Ended September 30, 2015 Premium Income $ 1,241.8 $ 144.6 $ 333.1 $ 301.3 $ — $ 2,020.8 Net Investment Income 214.3 28.0 35.9 327.5 6.4 612.1 Other Income 28.1 — 0.1 21.5 1.8 51.5 Operating Revenue $ 1,484.2 $ 172.6 $ 369.1 $ 650.3 $ 8.2 $ 2,684.4 Operating Income (Loss) $ 218.7 $ 32.7 $ 76.3 $ 27.7 $ (26.9 ) $ 328.5 Unum US Unum UK Colonial Life Closed Block Corporate Total (in millions of dollars) Nine Months Ended September 30, 2016 Premium Income $ 3,915.7 $ 407.4 $ 1,056.7 $ 878.7 $ — $ 6,258.5 Net Investment Income 622.4 89.3 105.7 1,008.6 15.1 1,841.1 Other Income 85.6 0.2 1.0 65.3 2.5 154.6 Operating Revenue $ 4,623.7 $ 496.9 $ 1,163.4 $ 1,952.6 $ 17.6 $ 8,254.2 Operating Income (Loss) $ 674.1 $ 98.7 $ 234.3 $ 94.9 $ (109.1 ) $ 992.9 Nine Months Ended September 30, 2015 Premium Income $ 3,708.4 $ 425.8 $ 1,001.2 $ 909.2 $ — $ 6,044.6 Net Investment Income 645.0 90.1 109.8 979.6 20.3 1,844.8 Other Income 90.4 — 0.1 67.5 2.6 160.6 Operating Revenue $ 4,443.8 $ 515.9 $ 1,111.1 $ 1,956.3 $ 22.9 $ 8,050.0 Operating Income (Loss) $ 635.8 $ 103.6 $ 231.5 $ 91.0 $ (90.2 ) $ 971.7 September 30 December 31 2016 2015 (in millions of dollars) Assets Unum US $ 18,465.8 $ 18,242.4 Unum UK 3,396.0 3,432.4 Colonial Life 3,940.5 3,776.8 Closed Block 34,821.9 33,000.9 Corporate 3,280.9 2,111.1 Total Assets $ 63,905.1 $ 60,563.6 We measure and analyze our segment performance on the basis of "operating revenue" and "operating income" or "operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and non-operating retirement-related gains or losses as specified in the reconciliations below. We believe operating revenue and operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income. Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses. Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities. The amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pensions and other postretirement benefit plans, is driven by market performance as well as plan amendments and is not indicative of the operational results of our businesses. We believe that excluding the amortization of prior period gains or losses from operating income or loss provides investors with additional information for comparison and analysis of our operating results. Although we manage our non-operating retirement-related gains or losses separately from the operational performance of our business, these gains or losses impact the overall profitability of our company and have historically increased or decreased over time, depending on plan amendments and market conditions and the resulting impact on the actuarial gains or losses in our pensions and other postretirement benefit plans. A reconciliation of total revenue to "operating revenue" and income before income tax to "operating income" is as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Total Revenue $ 2,763.3 $ 2,657.8 $ 8,250.0 $ 8,008.9 Excluding: Net Realized Investment Gain (Loss) 11.0 (26.6 ) (4.2 ) (41.1 ) Operating Revenue $ 2,752.3 $ 2,684.4 $ 8,254.2 $ 8,050.0 Income Before Income Tax $ 332.1 $ 298.9 $ 976.5 $ 921.7 Excluding: Net Realized Investment Gain (Loss) 11.0 (26.6 ) (4.2 ) (41.1 ) Non-operating Retirement-related Loss (4.1 ) (3.0 ) (12.2 ) (8.9 ) Operating Income $ 325.2 $ 328.5 $ 992.9 $ 971.7 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Defined Benefit Pension and Other Postretirement Benefit (OPEB) Plans We sponsor several defined benefit pension and OPEB plans for our employees, including non-qualified pension plans. We maintain a separate defined benefit plan for eligible employees in our U.K. operation. The U.S. defined benefit pension plans were closed to new entrants and amended to freeze participation and benefit accruals for existing participants effective December 31, 2013. The U.K. defined benefit plan was closed to new entrants effective December 31, 2002 and was amended to freeze participation for existing participants effective June 30, 2014. Effective August 1, 2016, we amended the retiree medical benefits portion of our OPEB plan to transition a majority of participants to a private exchange for their health insurance coverage. Prior to the plan amendment, participants paid a subsidized premium for their health insurance coverage, but if they elect to continue participation in the plan they will now purchase coverage on a private exchange and will subsequently be reimbursed through a Health Reimbursement Account (HRA) for an amount equivalent to the subsidy that was previously provided. Participants who continue in the plan will receive a one-time subsidy to minimize the initial out-of-pocket cost of purchasing health insurance. The amendment did not materially change the benefit obligation of the plan. The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans. Three Months Ended September 30 Pension Benefits U.S. Plans U.K. Plan OPEB 2016 2015 2016 2015 2016 2015 (in millions of dollars) Service Cost $ 1.7 $ 1.0 $ — $ — $ — $ — Interest Cost 21.3 20.5 1.7 2.0 1.8 1.7 Expected Return on Plan Assets (25.7 ) (27.3 ) (2.5 ) (3.1 ) (0.2 ) (0.1 ) Amortization of: Net Actuarial Loss 4.0 3.0 0.1 — — — Total $ 1.3 $ (2.8 ) $ (0.7 ) $ (1.1 ) $ 1.6 $ 1.6 Nine Months Ended September 30 Pension Benefits U.S. Plans U.K. Plan OPEB 2016 2015 2016 2015 2016 2015 (in millions of dollars) Service Cost $ 5.2 $ 2.9 $ — $ — $ — $ — Interest Cost 63.9 61.6 5.4 5.9 5.4 5.3 Expected Return on Plan Assets (77.1 ) (81.7 ) (7.9 ) (9.3 ) (0.5 ) (0.4 ) Amortization of: Net Actuarial Loss 12.1 8.7 0.1 0.2 — — Prior Service Credit (0.1 ) — — — (0.1 ) (0.1 ) Plan Amendment — — — — 0.9 — Total $ 4.0 $ (8.5 ) $ (2.4 ) $ (3.2 ) $ 5.7 $ 4.8 |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity and Earnings Per Common Share [Abstract] | |
Earnings Per Share Disclosure | Net income per common share is determined as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars, except share data) Numerator Net Income $ 236.0 $ 203.8 $ 683.4 $ 641.0 Denominator (000s) Weighted Average Common Shares - Basic 233,752.0 245,400.0 236,744.3 248,372.9 Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards 461.5 924.4 399.5 855.2 Weighted Average Common Shares - Assuming Dilution 234,213.5 246,324.4 237,143.8 249,228.1 Net Income Per Common Share Basic $ 1.01 $ 0.83 $ 2.89 $ 2.58 Assuming Dilution $ 1.01 $ 0.83 $ 2.88 $ 2.57 We use the treasury stock method to account for the effect of outstanding stock options, nonvested restricted stock units, and nonvested performance share units on the computation of diluted earnings per share. Under this method, these potential common shares will each have a dilutive effect, as individually measured, when the average market price of Unum Group common stock during the period exceeds the exercise price of the stock options and the grant price of the nonvested restricted stock units and the nonvested performance share units. The outstanding stock options have exercise prices ranging from $11.37 to $26.29 , the nonvested restricted stock units have grant prices ranging from $27.85 to $36.36 , and the nonvested performance share units have grant prices ranging from $27.85 to $34.08 . In computing earnings per share assuming dilution, only potential common shares that are dilutive (those that reduce earnings per share) are included. For the three and nine months ended September 30, 2016 , there were approximately 0.5 million potential common shares that were excluded in the computation of diluted earnings per share because the impact would be antidilutive, based on then current market prices. There were approximately 0.1 million and 0.3 million potential common shares that were antidilutive for the three and nine months ended September 30, 2015, respectively. |
Stockholders' Equity Disclosure | Common Stock During the second quarter of 2016, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 26, 2017. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 21, 2016. The remaining repurchase amount under the new program was $598.6 million at September 30, 2016 . Common stock repurchases, which are accounted for using the cost method and classified as treasury stock until otherwise retired, were as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions) Shares Repurchased 2.9 3.2 9.4 9.4 Cost of Shares Repurchased (1) $ 100.2 $ 115.0 $ 300.3 $ 326.2 (1) Includes commissions of $0.1 million and $0.2 million for the three and nine month period ended September 30, 2016 , respectively, and $0.1 million for the nine months ended September 30, 2015. For the three month period ended September 30, 2015 there was a de minimis amount of commissions. Preferred Stock Unum Group has 25.0 million shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been issued to date. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Contingent Liabilities We are a defendant in a number of litigation matters. In some of these matters, no specified amount is sought. In others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted in the United States courts with respect to requests for monetary damages, including some courts in which no specified amount is required and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on our extensive experience and that of others in the industry with respect to litigating or resolving claims through settlement over an extended period of time, we believe that the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated. Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims Handling Matters We and our insurance subsidiaries, in the ordinary course of our business, are engaged in claim litigation where disputes arise as a result of a denial or termination of benefits. Most typically these lawsuits are filed on behalf of a single claimant or policyholder, and in some of these individual actions punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. For our general claim litigation, we maintain reserves based on experience to satisfy judgments and settlements in the normal course. We expect that the ultimate liability, if any, with respect to general claim litigation, after consideration of the reserves maintained, will not be material to our consolidated financial condition. Nevertheless, given the inherent unpredictability of litigation, it is possible that an adverse outcome in certain claim litigation involving punitive damages could, from time to time, have a material adverse effect on our consolidated results of operations in a period, depending on the results of operations for the particular period. From time to time class action allegations are pursued where the claimant or policyholder purports to represent a larger number of individuals who are similarly situated. Since each insurance claim is evaluated based on its own merits, there is rarely a single act or series of actions which can properly be addressed by a class action. Nevertheless, we monitor these cases closely and defend ourselves appropriately where these allegations are made. Miscellaneous Matters Beginning in 2011, a number of state regulators began requiring insurers to cross-check specified insurance policies with the Social Security Administration’s Death Master File to identify potential matches. If a potential match was identified, insurers were requested to determine if benefits were due, locate beneficiaries, and make payments where appropriate. We initiated this process where requested, and in 2012 we began implementing this process in all states on a forward-looking basis. In addition to implementing this on a forward-looking basis, in 2013 we began an initiative to search for potential claims from previous years. During 2013, we completed our assessment of benefits which we estimate will be paid under this initiative, and as such, established additional reserves for payment of these benefits. Similar to other insurers, we are undergoing an examination by a third party acting on behalf of a number of state treasurers concerning our compliance with the unclaimed property laws of the participating states. We are cooperating fully with this examination, as well as with a Delaware Market Conduct examination involving the same issue. The legal and regulatory environment around unclaimed death benefits continues to evolve. It is possible that the current examination and/or similar investigations by other state jurisdictions may result in additional payments to beneficiaries, the payment of abandoned funds under state law, and/or administrative penalties, the total of which may be in excess of the reserves established. In December 2012, State of West Virginia ex rel. John D. Perdue v. Provident Life and Accident Insurance Company and State of West Virginia ex rel. John D. Perdue v. Colonial Life & Accident Insurance Company were filed in the Circuit Court of Putnam County, West Virginia. These two separate complaints alleged violations of the West Virginia Uniform Unclaimed Property Act by failing to identify and report all unclaimed insurance policy proceeds due to be escheated to West Virginia. The complaints sought to examine company records and assess penalties and costs in an undetermined amount. In December 2013, the court dismissed both complaints, holding that the West Virginia Uniform Unclaimed Property Act does not require insurance companies to periodically search the Social Security Administrations' Death Master File or escheat unclaimed life insurance benefits until a claim has been submitted. In January 2014, the plaintiff appealed the dismissal of both complaints. In June 2015, the appellate court reinstated the case, holding that the West Virginia Uniform Unclaimed Property Act requires insurers to make reasonable efforts to determine whether their insureds are still living. The case was remanded to the trial court where we answered the complaints. In May 2013, a purported class action complaint was filed in the Superior Court of California, County of Los Angeles. The plaintiff sought to represent a class of California insureds who were issued long-term care policies containing an inflation protection feature. The plaintiff alleged we incorrectly administered the inflation protection feature, resulting in an underpayment of benefits. The complaint made allegations against us for breach of contract, bad faith, fraud, violation of Business and Professions Code 17200, and injunctive relief. We removed the case to the United States District Court for the Central District of California, and plaintiff filed an amended complaint on behalf of a nationwide class of insureds who were issued long-term care policies containing an inflation protection feature. After we answered the complaint, the court permitted the plaintiff to file another amended complaint entitled Michael Don, Executor of The Estate of Ruben Don, Leroy Little, by and through his Guardian ad Litem Tamara Pelham, and Carolyn Little v. Unum Group, and Unum Life Insurance Company of America containing similar allegations. In April 2015, we again answered the complaint. The plaintiffs filed a motion seeking certification of five subclasses, and we filed our opposition. In February 2016, the plaintiffs filed a motion for preliminary approval of settlement for a class of certain insureds issued long-term care policies containing an inflation protection feature as well as certain insureds who requested copies of their long-term care policies. In July 2016, the court issued a final order approving the settlement and dismissing the case. We adjusted our previously accrued estimated loss contingency as a result of the final settlement, the amount of which was immaterial to our consolidated financial position and results of operations. Summary Various lawsuits against us, in addition to those discussed above, have arisen in the normal course of business. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning our compliance with applicable insurance and other laws and regulations. Given the complexity and scope of our litigation and regulatory matters, it is not possible to predict the ultimate outcome of all pending investigations or legal proceedings or provide reasonable estimates of potential losses, except if noted in connection with specific matters. It is possible that our results of operations or cash flows in a particular period could be materially affected by an ultimate unfavorable outcome of pending litigation or regulatory matters depending, in part, on our results of operations or cash flows for the particular period. We believe, however, that the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on our financial position. |
Other
Other | 9 Months Ended |
Sep. 30, 2016 | |
Debt and Other Disclosures [Abstract] | |
Debt Disclosure | Debt In September 2016, our $350.0 million 7.125% senior unsecured notes matured. In May 2016, we issued a total of $600.0 million aggregate principal amount of senior notes: (i) $350.0 million aggregate principal amount of senior notes due in 2021 with an annual coupon rate of 3.00% , and (ii) $250.0 million aggregate principal amount of senior notes due in 2042 with an annual coupon rate of 5.75% , pursuant to a reopening of the $250.0 million aggregate principal amount outstanding of our 5.75% senior notes due 2042 issued in 2012. Both issuances are callable at or above par and rank equally in the right of payment with all of our other unsecured and unsubordinated debt. In March 2016, we amended the terms of our five-year $400.0 million credit facility, which was previously set to expire in 2018 , to extend through March 2021. At September 30, 2016, letters of credit totaling $2.1 million had been issued from the credit facility, but there were no borrowed amounts outstanding. During the nine months ended September 30, 2016 , we made principal payments of $49.0 million on our senior secured non-recourse notes issued by Northwind Holdings, LLC. |
Income Tax Disclosure | Income Tax During the third quarter of 2016, the U.K. government enacted an income tax rate reduction that will reduce the rate to 17 percent effective April 2020. Prior to this enactment, the rate had been scheduled to reduce to 18 percent in 2020. We are required to adjust deferred tax assets and liabilities through income on the date of enactment of a rate change. As a result, we recorded income tax benefits of $4.5 million during the third quarter of 2016. We have a net operating loss carryforward for U.S. income tax of $1.0 million and an alternative minimum tax credit carryforward of $0.6 million resulting from our third quarter of 2016 acquisition of Starmount. The alternative minimum tax credit carryforward does not expire, and the net operating loss carryforward will expire between 2020 and 2035 . We have net operating loss carryforwards for state income tax of $156.4 million which will expire between 2016 and 2036. During the third quarter of 2016, we recorded a deferred tax asset for future state income tax benefits of $16.0 million along with a corresponding valuation allowance of $14.1 million to reduce the deferred tax asset to the amount that is more likely than not to be realized. During 2015, we recorded a valuation allowance of $1.3 million related to unrealized tax losses on buildings which we own and occupy in the U.K., the amount of which is unchanged other than for foreign currency translation. In the first quarter of 2015, we reached agreement with the Internal Revenue Service on all outstanding issues related to the examinations for 2009 and 2010 tax years and refund claims filed for tax credits related to tax years 2003 through 2012. As a result of this agreement, we reduced our reserve for uncertain tax positions in our consolidated balance sheet by $19.3 million . We also recognized in our consolidated statements of income a reduction in federal income taxes of $5.8 million . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2015 . |
Accounting Developments (Tables
Accounting Developments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements | Accounting Updates Adopted in 2016: Accounting Standards Codification (ASC) Description Date of Adoption Effect on Financial Statements ASC 820 "Fair Value Measurement" This update eliminated the requirement to categorize within the fair value hierarchy table investments whose fair value is measured at net asset value using the practical expedient. Instead, entities are required to disclose the fair value of these investments so that financial statement users can reconcile amounts reported in the fair value hierarchy table to the amounts reported on the consolidated balance sheets. The guidance is to be applied retrospectively. January 1, 2016 The adoption of this update had no effect on our financial position or results of operations but will modify certain of our annual reporting period disclosures for invested assets held in our employee benefit plans. ASC 835 "Interest - Imputation of Interest" This update simplified the presentation of deferred debt issuance costs by requiring these costs to be presented in the balance sheet as a reduction of the carrying amount of the debt liability to which the deferred costs relate, rather than classifying the deferred costs as an asset. This classification is consistent with the treatment of debt discounts. We applied the amendments in the update retrospectively, adjusting all prior periods in our consolidated financial statements and accompanying notes. January 1, 2016 The adoption of this update resulted in the following reclassification adjustments to our consolidated balance sheets but had no effect on our financial position or results of operations. December 31, 2015 Historical Accounting Method As Adjusted Effect of Change (in millions of dollars) Consolidated Balance Sheets Short-term Debt $ 352.4 $ 352.0 $ (0.4 ) Long-term Debt 2,475.1 2,449.4 (25.7 ) Other Assets 663.5 637.4 (26.1 ) |
Fair Values of Financial Inst23
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Fair Value of Financial Instruments | Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, and securities lending agreements approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart. September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (in millions of dollars) Assets Fixed Maturity Securities $ 46,315.5 $ 46,315.5 $ 43,354.4 $ 43,354.4 Mortgage Loans 1,970.4 2,137.6 1,883.6 2,013.9 Policy Loans 3,432.8 3,556.7 3,395.4 3,498.0 Other Long-term Investments Derivatives 37.1 37.1 49.8 49.8 Equity Securities 1.2 1.2 1.4 1.4 Miscellaneous Long-term Investments 540.3 540.3 474.4 474.4 Liabilities Policyholders' Funds Deferred Annuity Products $ 602.7 $ 602.7 $ 608.8 $ 608.8 Supplementary Contracts without Life Contingencies 603.7 603.7 641.1 641.1 Short-term Debt — — 352.0 366.2 Long-term Debt 3,019.8 3,319.8 2,449.4 2,645.9 Payables for Collateral on Investments Federal Home Loan Bank (FHLB) Funding Agreements 349.5 349.5 350.0 350.0 Other Liabilities Derivatives 55.7 55.7 50.2 50.2 Embedded Derivative in Modified Coinsurance Arrangement 73.3 73.3 87.6 87.6 Unfunded Commitments to Investment Partnerships 5.4 5.4 5.0 5.0 |
Fair Values by Fair Value Heirarchy Input Level | Fair value measurements by input level for financial instruments carried at fair value are as follows: September 30, 2016 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 285.5 $ 1,166.7 $ — $ 1,452.2 States, Municipalities, and Political Subdivisions — 2,204.6 92.1 2,296.7 Foreign Governments — 981.7 — 981.7 Public Utilities 632.5 7,385.8 404.3 8,422.6 Mortgage/Asset-Backed Securities — 2,386.2 — 2,386.2 All Other Corporate Bonds 8,234.9 21,521.3 972.9 30,729.1 Redeemable Preferred Stocks — 23.5 23.5 47.0 Total Fixed Maturity Securities 9,152.9 35,669.8 1,492.8 46,315.5 Other Long-term Investments Derivatives Interest Rate Swaps — 3.2 — 3.2 Foreign Exchange Contracts — 33.9 — 33.9 Total Derivatives — 37.1 — 37.1 Equity Securities — — 1.2 1.2 Liabilities Other Liabilities Derivatives Interest Rate Swaps $ — $ 6.1 $ — $ 6.1 Foreign Exchange Contracts — 49.2 — 49.2 Credit Default Swaps — 0.4 — 0.4 Embedded Derivative in Modified Coinsurance Arrangement — — 73.3 73.3 Total Derivatives — 55.7 73.3 129.0 December 31, 2015 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 97.3 $ 1,367.9 $ — $ 1,465.2 States, Municipalities, and Political Subdivisions — 1,994.9 122.2 2,117.1 Foreign Governments — 998.7 52.9 1,051.6 Public Utilities 59.1 7,687.2 274.1 8,020.4 Mortgage/Asset-Backed Securities — 2,481.5 — 2,481.5 All Other Corporate Bonds 2,770.4 23,992.8 1,408.2 28,171.4 Redeemable Preferred Stocks — 23.4 23.8 47.2 Total Fixed Maturity Securities 2,926.8 38,546.4 1,881.2 43,354.4 Other Long-term Investments Derivatives Interest Rate Swaps — 2.4 — 2.4 Foreign Exchange Contracts — 47.4 — 47.4 Total Derivatives — 49.8 — 49.8 Equity Securities — — 1.4 1.4 Liabilities Other Liabilities Derivatives Interest Rate Swaps $ — $ 12.3 $ — $ 12.3 Foreign Exchange Contracts — 37.6 — 37.6 Credit Default Swaps — 0.3 — 0.3 Embedded Derivative in Modified Coinsurance Arrangement — — 87.6 87.6 Total Derivatives — 50.2 87.6 137.8 |
Transfers of Assets between Level 1 and Level 2 | Transfers of assets between Level 1 and Level 2 are as follows: Three Months Ended September 30 2016 2015 Transfers into Level 1 from Level 2 Level 2 from Level 1 Level 1 from Level 2 Level 2 from Level 1 (in millions of dollars) Fixed Maturity Securities United States Government and Government Agencies and Authorities $ — $ 418.1 $ — $ — States, Municipalities, and Political Subdivisions — 79.0 — — Public Utilities 316.7 487.5 157.2 231.8 All Other Corporate Bonds 2,618.6 3,461.3 2,128.2 2,933.6 Total Fixed Maturity Securities $ 2,935.3 $ 4,445.9 $ 2,285.4 $ 3,165.4 Nine Months Ended September 30 2016 2015 Transfers into Level 1 from Level 2 from Level 1 from Level 2 from (in millions of dollars) Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 25.0 $ — $ 219.7 $ — Public Utilities 469.5 29.3 306.1 57.0 All Other Corporate Bonds 4,688.2 957.0 3,665.3 1,156.9 Total Fixed Maturity Securities $ 5,182.7 $ 986.3 $ 4,191.1 $ 1,213.9 |
Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs | Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows: Three Months Ended September 30, 2016 Total Realized and Unrealized Investment Gains (Losses) Included in Beginning of Period Earnings Other Comprehensive Income or Loss Purchases Sales Level 3 Transfers End of Period Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 61.6 $ — $ 0.1 $ — $ — $ 30.4 $ — $ 92.1 Public Utilities 453.5 — (3.2 ) — (0.3 ) 62.1 (107.8 ) 404.3 All Other Corporate Bonds 1,359.6 0.8 8.0 — (24.0 ) 326.2 (697.7 ) 972.9 Redeemable Preferred Stocks 23.6 — (0.1 ) — — — 23.5 Total Fixed Maturity Securities 1,898.3 0.8 4.8 — (24.3 ) 418.7 (805.5 ) 1,492.8 Equity Securities 1.2 — — — — — — 1.2 Embedded Derivative in Modified Coinsurance Arrangement (83.0 ) 9.7 — — — — — (73.3 ) Three Months Ended September 30, 2015 Total Realized and Unrealized Investment Gains (Losses) Included in Beginning of Period Earnings Other Comprehensive Income or Loss Purchases Sales Level 3 Transfers End of Period Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 136.7 $ — $ (2.4 ) $ — $ — $ — $ (7.7 ) $ 126.6 Foreign Governments 69.8 — (1.5 ) — — — — 68.3 Public Utilities 357.8 — 1.3 40.0 — 9.0 (88.6 ) 319.5 All Other Corporate Bonds 1,321.9 — (13.9 ) — (61.9 ) 225.1 (456.1 ) 1,015.1 Redeemable Preferred Stocks 24.8 — — — — — — 24.8 Total Fixed Maturity Securities 1,911.0 — (16.5 ) 40.0 (61.9 ) 234.1 (552.4 ) 1,554.3 Equity Securities 1.4 — 0.1 — — — — 1.5 Embedded Derivative in Modified Coinsurance Arrangement (55.8 ) (27.3 ) — — — — — (83.1 ) Nine Months Ended September 30, 2016 Total Realized and Beginning Earnings Other Purchases Sales Level 3 Transfers End of Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 122.2 $ — $ 4.2 $ — $ (0.3 ) $ — $ (34.0 ) $ 92.1 Foreign Governments 52.9 — — — — — (52.9 ) — Public Utilities 274.1 — 3.9 — (0.7 ) 276.9 (149.9 ) 404.3 All Other Corporate Bonds 1,408.2 1.4 52.7 20.0 (61.8 ) 381.4 (829.0 ) 972.9 Redeemable Preferred Stocks 23.8 — (0.3 ) — — — — 23.5 Total Fixed Maturity Securities 1,881.2 1.4 60.5 20.0 (62.8 ) 658.3 (1,065.8 ) 1,492.8 Equity Securities 1.4 — 0.1 — (0.3 ) — — 1.2 Embedded Derivative in Modified Coinsurance Arrangement (87.6 ) 14.3 — — — — — (73.3 ) Nine Months Ended September 30, 2015 Total Realized and Beginning Earnings Other Purchases Sales Level 3 Transfers End of Into Out of (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 140.1 $ — $ (4.7 ) $ — $ (0.8 ) $ — $ (8.0 ) $ 126.6 Foreign Governments 69.3 — (1.0 ) — — — — 68.3 Public Utilities 315.0 — (2.9 ) 40.0 (2.3 ) 70.7 (101.0 ) 319.5 All Other Corporate Bonds 1,425.3 2.1 (35.8 ) 25.0 (142.2 ) 307.1 (566.4 ) 1,015.1 Redeemable Preferred Stocks 24.9 — (0.1 ) — — — — 24.8 Total Fixed Maturity Securities 1,974.6 2.1 (44.5 ) 65.0 (145.3 ) 377.8 (675.4 ) 1,554.3 Equity Securities 1.4 — 0.1 — — — — 1.5 Embedded Derivative in Modified Coinsurance Arrangement (49.9 ) (33.2 ) — — — — — (83.1 ) Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains (losses) which are included in earnings and are attributable to the change in fair value of assets or liabilities valued using significant unobservable inputs and still held at period end were $9.7 million and $14.3 million for the three and nine months ended September 30, 2016 , respectively, and $(27.3) million and $(33.2) million for the three and nine months ended September 30, 2015 . These amounts relate entirely to the change in fair value of an embedded derivative in a modified coinsurance arrangement and are reported as a component of realized investment gains and losses. |
Quantitative Information Regarding Significant Unobservable Inputs | The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources. September 30, 2016 Fair Value Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities All Other Corporate Bonds - Private $ 143.4 Comparability Adjustment (b) 0.50% - 0.50% / 0.50% Equity Securities - Private 1.1 Market Convention (f) Priced at Cost or Owner's Equity Embedded Derivative in Modified Coinsurance Arrangement (73.3 ) Projected Liability Cash Flows (g) Actuarial Assumptions December 31, 2015 Fair Value Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions - Private $ 73.3 Change in Benchmark Reference (a) 0.50% - 1.00% / 0.70% States, Municipalities, and Political Subdivisions - Public 12.0 Market Convention (f) Priced at Par All Other Corporate Bonds - Private 151.0 Comparability Adjustment (b) 0.50% - 0.50% / 0.50% All Other Corporate Bonds - Public 36.2 Lack of Marketability (d) 1.00% - 1.00% / 1.00% Equity Securities - Private 1.1 Market Convention (f) Priced at Cost or Owner's Equity Embedded Derivative in Modified Coinsurance Arrangement (87.6 ) Projected Liability Cash Flows (g) Actuarial Assumptions (a) Represents basis point adjustments for changes in benchmark spreads associated with various ratings categories (b) Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors (c) Represents basis point adjustments based on issue/issuer size relative to the benchmark (d) Represents basis point adjustments to apply a discount due to the illiquidity of an investment (e) Represents basis point adjustments for credit-specific factors (f) Represents a decision to price based on par value, cost, or owner's equity when limited data is available (g) Represents various actuarial assumptions required to derive the liability cash flows including incidence, termination, and lapse rates |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | At September 30, 2016 and December 31, 2015 , all fixed maturity securities were classified as available-for-sale. The amortized cost and fair values of securities by security type are shown as follows: September 30, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (in millions of dollars) United States Government and Government Agencies and Authorities $ 1,194.7 $ 257.5 $ — $ 1,452.2 States, Municipalities, and Political Subdivisions 1,832.5 464.4 0.2 2,296.7 Foreign Governments 749.0 232.7 — 981.7 Public Utilities 6,904.0 1,519.9 1.3 8,422.6 Mortgage/Asset-Backed Securities 2,178.8 207.7 0.3 2,386.2 All Other Corporate Bonds 26,722.1 4,088.8 81.8 30,729.1 Redeemable Preferred Stocks 44.0 3.5 0.5 47.0 Total Fixed Maturity Securities $ 39,625.1 $ 6,774.5 $ 84.1 $ 46,315.5 December 31, 2015 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (in millions of dollars) United States Government and Government Agencies and Authorities $ 1,265.8 $ 207.3 $ 7.9 $ 1,465.2 States, Municipalities, and Political Subdivisions 1,828.3 293.4 4.6 2,117.1 Foreign Governments 897.2 154.4 — 1,051.6 Public Utilities 6,979.3 1,057.4 16.3 8,020.4 Mortgage/Asset-Backed Securities 2,318.6 167.6 4.7 2,481.5 All Other Corporate Bonds 26,325.5 2,454.1 608.2 28,171.4 Redeemable Preferred Stocks 44.0 3.8 0.6 47.2 Total Fixed Maturity Securities $ 39,658.7 $ 4,338.0 $ 642.3 $ 43,354.4 |
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position | The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position. September 30, 2016 Less Than 12 Months 12 Months or Greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of dollars) States, Municipalities, and Political Subdivisions $ 21.1 $ 0.2 $ 1.0 $ — Public Utilities 64.5 1.0 16.9 0.3 Mortgage/Asset-Backed Securities 9.3 0.2 0.9 0.1 All Other Corporate Bonds 311.5 8.0 932.3 73.8 Redeemable Preferred Stocks 12.7 0.3 10.8 0.2 Total Fixed Maturity Securities $ 419.1 $ 9.7 $ 961.9 $ 74.4 December 31, 2015 Less Than 12 Months 12 Months or Greater Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in millions of dollars) United States Government and Government Agencies and Authorities $ 213.5 $ 7.9 $ — $ — States, Municipalities, and Political Subdivisions 112.3 4.3 3.3 0.3 Public Utilities 408.4 14.4 10.3 1.9 Mortgage/Asset-Backed Securities 504.3 4.6 9.0 0.1 All Other Corporate Bonds 6,155.0 464.2 554.7 144.0 Redeemable Preferred Stocks 10.4 0.6 — — Total Fixed Maturity Securities $ 7,403.9 $ 496.0 $ 577.3 $ 146.3 |
Distribution of the Maturity Dates for Fixed Maturity Securities | The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for possible calls or prepayments. September 30, 2016 Total Amortized Cost Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 1,313.5 $ 26.9 $ 1,333.6 $ 0.1 $ 6.7 Over 1 year through 5 years 6,304.0 634.1 6,693.0 13.3 231.8 Over 5 years through 10 years 11,073.3 1,269.9 11,663.0 44.6 635.6 Over 10 years 18,755.5 4,635.9 22,868.9 25.8 496.7 37,446.3 6,566.8 42,558.5 83.8 1,370.8 Mortgage/Asset-Backed Securities 2,178.8 207.7 2,376.0 0.3 10.2 Total Fixed Maturity Securities $ 39,625.1 $ 6,774.5 $ 44,934.5 $ 84.1 $ 1,381.0 December 31, 2015 Total Amortized Cost Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 1,112.2 $ 20.6 $ 1,098.8 $ 0.2 $ 33.8 Over 1 year through 5 years 6,514.0 554.4 6,649.5 49.8 369.1 Over 5 years through 10 years 10,519.3 746.3 7,124.4 320.5 3,820.7 Over 10 years 19,194.6 2,849.1 18,532.3 267.1 3,244.3 37,340.1 4,170.4 33,405.0 637.6 7,467.9 Mortgage/Asset-Backed Securities 2,318.6 167.6 1,968.2 4.7 513.3 Total Fixed Maturity Securities $ 39,658.7 $ 4,338.0 $ 35,373.2 $ 642.3 $ 7,981.2 |
Low Income Housing Tax Credits | The Company invests in tax credit partnerships primarily for the receipt of income tax credits and tax benefits derived from passive losses on the investments. Amounts recognized in the consolidated statements of income are as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Income Tax Credits $ 10.4 $ 10.4 $ 31.3 $ 31.4 Amortization, net of tax (5.8 ) (5.9 ) (17.4 ) (17.5 ) Income Tax Benefit $ 4.6 $ 4.5 $ 13.9 $ 13.9 |
Mortgage Loans by Property Type and Geographic Region | Mortgage loans by property type and geographic region are presented below. September 30, 2016 December 31, 2015 (in millions of dollars) Carrying Percent of Carrying Percent of Amount Total Amount Total Property Type Apartment $ 245.7 12.5 % $ 130.6 6.9 % Industrial 591.5 30.0 574.1 30.5 Office 701.1 35.6 764.7 40.6 Retail 410.6 20.8 392.3 20.8 Other 21.5 1.1 21.9 1.2 Total $ 1,970.4 100.0 % $ 1,883.6 100.0 % Region New England $ 73.6 3.7 % $ 97.6 5.2 % Mid-Atlantic 113.7 5.8 128.8 6.9 East North Central 215.3 10.9 186.4 9.9 West North Central 173.6 8.8 162.6 8.6 South Atlantic 417.6 21.2 409.3 21.7 East South Central 97.9 5.0 79.1 4.2 West South Central 250.7 12.7 237.6 12.6 Mountain 209.2 10.6 196.5 10.4 Pacific 418.8 21.3 385.7 20.5 Total $ 1,970.4 100.0 % $ 1,883.6 100.0 % |
Mortgage Loans by Internal Credit Ratings and Loan-to-Value Ratios | Mortgage loans, sorted by the applicable credit quality indicators, are as follows: September 30 December 31 (in millions of dollars) Internal Rating Aa $ 0.8 $ 1.1 A 488.3 586.6 Baa 1,445.1 1,285.8 Ba 36.2 10.1 Total $ 1,970.4 $ 1,883.6 Loan-to-Value Ratio <= 65% $ 889.1 $ 937.2 > 65% <= 75% 962.6 842.5 > 75% <= 85% 73.1 88.4 > 85% 45.6 15.5 Total $ 1,970.4 $ 1,883.6 |
Remaining Contractual Maturity of Securities Lending Agreements | The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows: September 30, 2016 December 31, 2015 Overnight and Continuous (in millions of dollars) United States Government and Government Agencies and Authorities $ 9.8 $ 1.2 Public Utilities 4.0 4.0 All Other Corporate Bonds 42.8 23.8 Total Borrowings 56.6 29.0 Gross Amount of Recognized Liability for Securities Lending Transactions 56.6 29.0 Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein $ — $ — |
Schedule of Financial Instrument and Derivative Offsetting | Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties. September 30, 2016 Gross Amount Gross Amount Not of Recognized Gross Amount Net Amount Offset in Balance Sheet Financial Offset in Presented in Financial Cash Net Instruments Balance Sheet Balance Sheet Instruments Collateral Amount (in millions of dollars) Financial Assets: Derivatives $ 37.1 $ — $ 37.1 $ (8.2 ) $ (28.8 ) $ 0.1 Securities Lending 210.0 — 210.0 (153.4 ) (56.6 ) — Total $ 247.1 $ — $ 247.1 $ (161.6 ) $ (85.4 ) $ 0.1 Financial Liabilities: Derivatives $ 55.7 $ — $ 55.7 $ (41.5 ) $ — $ 14.2 Securities Lending 56.6 — 56.6 (56.6 ) — — Total $ 112.3 $ — $ 112.3 $ (98.1 ) $ — $ 14.2 December 31, 2015 Gross Amount Gross Amount Not of Recognized Gross Amount Net Amount Offset in Balance Sheet Financial Offset in Presented in Financial Cash Net Instruments Balance Sheet Balance Sheet Instruments Collateral Amount (in millions of dollars) Financial Assets: Derivatives $ 49.8 $ — $ 49.8 $ (12.8 ) $ (36.4 ) $ 0.6 Securities Lending 181.6 — 181.6 (152.6 ) (29.0 ) — Total $ 231.4 $ — $ 231.4 $ (165.4 ) $ (65.4 ) $ 0.6 Financial Liabilities: Derivatives $ 50.2 $ — $ 50.2 $ (35.6 ) $ — $ 14.6 Securities Lending 29.0 — 29.0 (29.0 ) — — Total $ 79.2 $ — $ 79.2 $ (64.6 ) $ — $ 14.6 |
Net Investment Income | Net Investment Income Net investment income reported in our consolidated statements of income is as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Fixed Maturity Securities $ 573.2 $ 573.3 $ 1,716.6 $ 1,732.4 Derivatives 12.6 11.3 36.9 33.7 Mortgage Loans 30.6 26.8 87.6 82.5 Policy Loans 4.4 4.2 12.8 12.4 Other Long-term Investments (0.9 ) 7.1 15.4 15.9 Short-term Investments 2.4 0.7 6.0 2.4 Gross Investment Income 622.3 623.4 1,875.3 1,879.3 Less Investment Expenses 7.4 7.7 23.5 23.5 Less Investment Income on Participation Fund Account Assets 3.5 3.6 10.7 11.0 Net Investment Income $ 611.4 $ 612.1 $ 1,841.1 $ 1,844.8 |
Realized Investment Gains and Losses Reported in Consolidated Statements of Income | Realized Investment Gain and Loss Realized investment gains and losses are as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Fixed Maturity Securities Gross Gains on Sales $ 1.6 $ 12.4 $ 29.4 $ 19.8 Gross Losses on Sales (0.4 ) (4.4 ) (14.0 ) (12.0 ) Other-Than-Temporary Impairment Loss — (9.4 ) (30.5 ) (22.0 ) Mortgage Loans and Other Invested Assets Gross Gains on Sales 0.2 5.1 4.0 14.0 Gross Losses on Sales — — (0.7 ) — Impairment Loss — (1.1 ) (3.1 ) (4.8 ) Embedded Derivative in Modified Coinsurance Arrangement 9.7 (27.3 ) 14.3 (33.2 ) All Other Derivatives 0.1 (1.0 ) (3.5 ) (1.3 ) Foreign Currency Transactions (0.2 ) (0.9 ) (0.1 ) (1.6 ) Net Realized Investment Gain (Loss) $ 11.0 $ (26.6 ) $ (4.2 ) $ (41.1 ) |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements [Abstract] | |
Notional Amounts for Each Category of Derivative Activity | The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated. Swaps Receive Variable/Pay Fixed Receive Fixed/Pay Fixed Receive Fixed/Pay Variable Credit Default Forwards Total (in millions of dollars) Balance at June 30, 2015 $ 150.0 $ 816.7 $ 600.0 $ 72.0 $ — $ 1,638.7 Additions — — — — 67.0 67.0 Terminations — 3.5 — 2.0 — 5.5 Balance at September 30, 2015 $ 150.0 $ 813.2 $ 600.0 $ 70.0 $ 67.0 $ 1,700.2 Balance at December 31, 2014 $ 150.0 $ 840.4 $ 600.0 $ 97.0 $ — $ 1,687.4 Additions — — — 2.0 94.0 96.0 Terminations — 27.2 — 29.0 27.0 83.2 Balance at September 30, 2015 $ 150.0 $ 813.2 $ 600.0 $ 70.0 $ 67.0 $ 1,700.2 Balance at June 30, 2016 $ 126.0 $ 644.5 $ 600.0 $ 70.0 $ — $ 1,440.5 Additions 3.5 — — — — 3.5 Terminations — 7.1 350.0 — — 357.1 Balance at September 30, 2016 $ 129.5 $ 637.4 $ 250.0 $ 70.0 $ — $ 1,086.9 Balance at December 31, 2015 $ 150.0 $ 650.3 $ 600.0 $ 70.0 $ — $ 1,470.3 Additions 3.5 — — — — 3.5 Terminations 24.0 12.9 350.0 — — 386.9 Balance at September 30, 2016 $ 129.5 $ 637.4 $ 250.0 $ 70.0 $ — $ 1,086.9 |
Location and Fair Values of Derivative Financial Instruments | The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets. September 30, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (in millions of dollars) Designated as Hedging Instruments Interest Rate Swaps Other L-T Investments $ 3.2 Other Liabilities $ 5.1 Foreign Exchange Contracts Other L-T Investments 33.9 Other Liabilities 15.9 Total $ 37.1 $ 21.0 Not Designated as Hedging Instruments Credit Default Swaps Other Liabilities $ 0.4 Interest Rate Swaps Other Liabilities 1.0 Foreign Exchange Contracts Other Liabilities 33.3 Embedded Derivative in Modified Coinsurance Arrangement Other Liabilities 73.3 Total $ 108.0 December 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (in millions of dollars) Designated as Hedging Instruments Interest Rate Swaps Other L-T Investments $ 2.4 Other Liabilities $ 12.3 Foreign Exchange Contracts Other L-T Investments 47.4 Other Liabilities 6.0 Total $ 49.8 $ 18.3 Not Designated as Hedging Instruments Credit Default Swaps Other Liabilities $ 0.3 Foreign Exchange Contracts Other Liabilities 31.6 Embedded Derivative in Modified Coinsurance Arrangement Other Liabilities 87.6 Total $ 119.5 |
Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments | The following table summarizes the location of gains and losses on the effective portion of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of income and consolidated statements of comprehensive income. Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Forwards $ — $ (0.8 ) $ — $ (0.8 ) Foreign Exchange Contracts 0.3 33.5 (24.2 ) 59.9 Total $ 0.3 $ 32.7 $ (24.2 ) $ 59.1 Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Net Investment Income Interest Rate Swaps and Forwards $ 13.8 $ 12.8 $ 40.6 $ 38.3 Foreign Exchange Contracts (0.3 ) (0.3 ) (0.8 ) (1.3 ) Net Realized Investment Gain (Loss) Interest Rate Swaps — 0.3 3.2 0.6 Foreign Exchange Contracts — (0.2 ) (0.5 ) — Interest and Debt Expense Interest Rate Swaps (0.5 ) (0.5 ) (1.4 ) (1.4 ) Total $ 13.0 $ 12.1 $ 41.1 $ 36.2 |
Gains and Losses on Derivatives Not Designated as Hedging Instruments | The following table summarizes the location of gains and losses on our derivatives not designated as hedging instruments, as reported in our consolidated statements of income. Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Net Realized Investment Gain (Loss) Credit Default Swaps $ (0.3 ) $ 0.1 $ (0.7 ) $ (0.5 ) Interest Rate Swaps 0.1 — 0.1 — Foreign Exchange Contracts 0.3 (1.1 ) (1.7 ) (0.8 ) Embedded Derivative in Modified Coinsurance Arrangement 9.7 (27.3 ) 14.3 (33.2 ) Total $ 9.8 $ (28.3 ) $ 12.0 $ (34.5 ) |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Components of our accumulated other comprehensive income, after tax, and related changes are as follows: Net Unrealized Gain on Securities Net Gain on Cash Flow Hedges Foreign Currency Translation Adjustment Unrecognized Pension and Postretirement Benefit Costs Total (in millions of dollars) Balance at June 30, 2016 $ 661.1 $ 343.6 $ (279.4 ) $ (385.5 ) $ 339.8 Other Comprehensive Income (Loss) Before Reclassifications 143.0 0.1 (25.8 ) 0.4 117.7 Amounts Reclassified from Accumulated Other Comprehensive Income or Loss (0.9 ) (8.5 ) — 2.6 (6.8 ) Net Other Comprehensive Income (Loss) 142.1 (8.4 ) (25.8 ) 3.0 110.9 Balance at September 30, 2016 $ 803.2 $ 335.2 $ (305.2 ) $ (382.5 ) $ 450.7 Balance at June 30, 2015 $ 112.1 $ 391.7 $ (102.5 ) $ (397.9 ) $ 3.4 Other Comprehensive Income (Loss) Before Reclassifications 47.0 21.3 (44.1 ) 0.9 25.1 Amounts Reclassified from Accumulated Other Comprehensive Income or Loss (0.5 ) (7.9 ) — 1.9 (6.5 ) Net Other Comprehensive Income (Loss) 46.5 13.4 (44.1 ) 2.8 18.6 Balance at September 30, 2015 $ 158.6 $ 405.1 $ (146.6 ) $ (395.1 ) $ 22.0 Balance at December 31, 2015 $ 204.3 $ 378.0 $ (173.6 ) $ (392.6 ) $ 16.1 Other Comprehensive Income (Loss) Before Reclassifications 588.9 (16.0 ) (131.6 ) 2.4 443.7 Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 10.0 (26.8 ) — 7.7 (9.1 ) Net Other Comprehensive Income (Loss) 598.9 (42.8 ) (131.6 ) 10.1 434.6 Balance at September 30, 2016 $ 803.2 $ 335.2 $ (305.2 ) $ (382.5 ) $ 450.7 Balance at December 31, 2014 $ 290.3 $ 391.0 $ (113.4 ) $ (401.5 ) $ 166.4 Other Comprehensive Income (Loss) Before Reclassifications (137.6 ) 37.9 (33.2 ) 0.7 (132.2 ) Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 5.9 (23.8 ) — 5.7 (12.2 ) Net Other Comprehensive Income (Loss) (131.7 ) 14.1 (33.2 ) 6.4 (144.4 ) Balance at September 30, 2015 $ 158.6 $ 405.1 $ (146.6 ) $ (395.1 ) $ 22.0 |
Schedule of Components of Unrealized Gain on Securities | The net unrealized gain on securities consists of the following components: Change at September 30, 2016 September 30 June 30 December 31 Three Months Nine Months 2016 2016 2015 Ended Ended (in millions of dollars) Fixed Maturity Securities $ 6,690.4 $ 6,299.5 $ 3,695.7 $ 390.9 $ 2,994.7 Other Investments (21.1 ) (21.3 ) (33.7 ) 0.2 12.6 Deferred Acquisition Costs (56.1 ) (52.5 ) (29.4 ) (3.6 ) (26.7 ) Reserves for Future Policy and Contract Benefits (5,775.5 ) (5,578.6 ) (3,578.4 ) (196.9 ) (2,197.1 ) Reinsurance Recoverable 379.7 366.0 263.2 13.7 116.5 Income Tax (414.2 ) (352.0 ) (113.1 ) (62.2 ) (301.1 ) Total $ 803.2 $ 661.1 $ 204.3 $ 142.1 $ 598.9 Change at September 30, 2015 September 30 June 30 December 31 Three Months Nine Months 2015 2015 2014 Ended Ended (in millions of dollars) Fixed Maturity Securities $ 4,663.4 $ 4,901.2 $ 6,261.5 $ (237.8 ) $ (1,598.1 ) Other Investments (35.1 ) (14.8 ) 13.9 (20.3 ) (49.0 ) Deferred Acquisition Costs (40.0 ) (41.8 ) (50.8 ) 1.8 10.8 Reserves for Future Policy and Contract Benefits (4,649.7 ) (4,981.6 ) (6,150.3 ) 331.9 1,500.6 Reinsurance Recoverable 308.1 312.9 365.0 (4.8 ) (56.9 ) Income Tax (88.1 ) (63.8 ) (149.0 ) (24.3 ) 60.9 Total $ 158.6 $ 112.1 $ 290.3 $ 46.5 $ (131.7 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive income or loss were recognized in our consolidated statements of income as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Net Unrealized Gain on Securities Net Realized Investment Gain (Loss) Net Gain on Sales of Securities and Other Invested Assets $ 1.1 $ 10.2 $ 14.8 $ 12.4 Other-Than-Temporary Impairment Loss — (9.4 ) (30.5 ) (22.0 ) 1.1 0.8 (15.7 ) (9.6 ) Income Tax Expense (Benefit) 0.2 0.3 (5.7 ) (3.7 ) Total $ 0.9 $ 0.5 $ (10.0 ) $ (5.9 ) Net Gain on Cash Flow Hedges Net Investment Income Gain on Interest Rate Swaps and Forwards $ 13.8 $ 12.8 $ 40.6 $ 38.3 Loss on Foreign Exchange Contracts (0.3 ) (0.3 ) (0.8 ) (1.3 ) Net Realized Investment Gain (Loss) Gain on Interest Rate Swaps — 0.3 3.2 0.6 Loss on Foreign Exchange Contracts — (0.2 ) (0.5 ) — Interest and Debt Expense Loss on Interest Rate Swaps (0.5 ) (0.5 ) (1.4 ) (1.4 ) 13.0 12.1 41.1 36.2 Income Tax Expense 4.5 4.2 14.3 12.4 Total $ 8.5 $ 7.9 $ 26.8 $ 23.8 Unrecognized Pension and Postretirement Benefit Costs Other Expenses Amortization of Net Actuarial Loss $ (4.1 ) $ (3.0 ) $ (12.2 ) $ (8.9 ) Amortization of Prior Service Credit — — 0.2 0.1 (4.1 ) (3.0 ) (12.0 ) (8.8 ) Income Tax Benefit (1.5 ) (1.1 ) (4.3 ) (3.1 ) Total $ (2.6 ) $ (1.9 ) $ (7.7 ) $ (5.7 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Premium Income by Major Line of Business within Each Segment | Segment information is as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Premium Income Unum US Group Disability Group Long-term Disability $ 428.1 $ 414.3 $ 1,291.6 $ 1,229.0 Group Short-term Disability 155.5 153.2 469.2 452.5 Group Life and Accidental Death & Dismemberment Group Life 353.4 336.5 1,053.6 1,007.5 Accidental Death & Dismemberment 35.3 32.1 104.8 98.0 Supplemental and Voluntary Individual Disability 125.6 119.6 374.4 355.9 Voluntary Benefits 197.1 186.1 602.1 565.5 Dental and Vision 20.0 — 20.0 — 1,315.0 1,241.8 3,915.7 3,708.4 Unum UK Group Long-term Disability 85.5 100.6 274.1 296.5 Group Life 24.9 29.7 80.9 90.6 Supplemental 16.9 14.3 52.4 38.7 127.3 144.6 407.4 425.8 Colonial Life Accident, Sickness, and Disability 207.7 196.5 619.2 591.1 Life 68.0 62.5 203.4 188.1 Cancer and Critical Illness 78.4 74.1 234.1 222.0 354.1 333.1 1,056.7 1,001.2 Closed Block Individual Disability 129.9 142.2 394.0 433.0 Long-term Care 161.4 158.6 482.0 475.0 All Other 1.7 0.5 2.7 1.2 293.0 301.3 878.7 909.2 Total Premium Income $ 2,089.4 $ 2,020.8 $ 6,258.5 $ 6,044.6 |
Selected Operating Statement Data by Segment | Unum US Unum UK Colonial Life Closed Block Corporate Total (in millions of dollars) Three Months Ended September 30, 2016 Premium Income $ 1,315.0 $ 127.3 $ 354.1 $ 293.0 $ — $ 2,089.4 Net Investment Income 207.3 28.5 36.1 334.1 5.4 611.4 Other Income 28.7 — 0.4 21.5 0.9 51.5 Operating Revenue $ 1,551.0 $ 155.8 $ 390.6 $ 648.6 $ 6.3 $ 2,752.3 Operating Income (Loss) $ 231.0 $ 28.2 $ 79.0 $ 28.6 $ (41.6 ) $ 325.2 Three Months Ended September 30, 2015 Premium Income $ 1,241.8 $ 144.6 $ 333.1 $ 301.3 $ — $ 2,020.8 Net Investment Income 214.3 28.0 35.9 327.5 6.4 612.1 Other Income 28.1 — 0.1 21.5 1.8 51.5 Operating Revenue $ 1,484.2 $ 172.6 $ 369.1 $ 650.3 $ 8.2 $ 2,684.4 Operating Income (Loss) $ 218.7 $ 32.7 $ 76.3 $ 27.7 $ (26.9 ) $ 328.5 Unum US Unum UK Colonial Life Closed Block Corporate Total (in millions of dollars) Nine Months Ended September 30, 2016 Premium Income $ 3,915.7 $ 407.4 $ 1,056.7 $ 878.7 $ — $ 6,258.5 Net Investment Income 622.4 89.3 105.7 1,008.6 15.1 1,841.1 Other Income 85.6 0.2 1.0 65.3 2.5 154.6 Operating Revenue $ 4,623.7 $ 496.9 $ 1,163.4 $ 1,952.6 $ 17.6 $ 8,254.2 Operating Income (Loss) $ 674.1 $ 98.7 $ 234.3 $ 94.9 $ (109.1 ) $ 992.9 Nine Months Ended September 30, 2015 Premium Income $ 3,708.4 $ 425.8 $ 1,001.2 $ 909.2 $ — $ 6,044.6 Net Investment Income 645.0 90.1 109.8 979.6 20.3 1,844.8 Other Income 90.4 — 0.1 67.5 2.6 160.6 Operating Revenue $ 4,443.8 $ 515.9 $ 1,111.1 $ 1,956.3 $ 22.9 $ 8,050.0 Operating Income (Loss) $ 635.8 $ 103.6 $ 231.5 $ 91.0 $ (90.2 ) $ 971.7 |
Assets by Segment | September 30 December 31 2016 2015 (in millions of dollars) Assets Unum US $ 18,465.8 $ 18,242.4 Unum UK 3,396.0 3,432.4 Colonial Life 3,940.5 3,776.8 Closed Block 34,821.9 33,000.9 Corporate 3,280.9 2,111.1 Total Assets $ 63,905.1 $ 60,563.6 |
Reconciliation of Operating Revenue and Operating Income by Segment to Total Revenue and Income Before Income Tax | A reconciliation of total revenue to "operating revenue" and income before income tax to "operating income" is as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars) Total Revenue $ 2,763.3 $ 2,657.8 $ 8,250.0 $ 8,008.9 Excluding: Net Realized Investment Gain (Loss) 11.0 (26.6 ) (4.2 ) (41.1 ) Operating Revenue $ 2,752.3 $ 2,684.4 $ 8,254.2 $ 8,050.0 Income Before Income Tax $ 332.1 $ 298.9 $ 976.5 $ 921.7 Excluding: Net Realized Investment Gain (Loss) 11.0 (26.6 ) (4.2 ) (41.1 ) Non-operating Retirement-related Loss (4.1 ) (3.0 ) (12.2 ) (8.9 ) Operating Income $ 325.2 $ 328.5 $ 992.9 $ 971.7 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans. Three Months Ended September 30 Pension Benefits U.S. Plans U.K. Plan OPEB 2016 2015 2016 2015 2016 2015 (in millions of dollars) Service Cost $ 1.7 $ 1.0 $ — $ — $ — $ — Interest Cost 21.3 20.5 1.7 2.0 1.8 1.7 Expected Return on Plan Assets (25.7 ) (27.3 ) (2.5 ) (3.1 ) (0.2 ) (0.1 ) Amortization of: Net Actuarial Loss 4.0 3.0 0.1 — — — Total $ 1.3 $ (2.8 ) $ (0.7 ) $ (1.1 ) $ 1.6 $ 1.6 Nine Months Ended September 30 Pension Benefits U.S. Plans U.K. Plan OPEB 2016 2015 2016 2015 2016 2015 (in millions of dollars) Service Cost $ 5.2 $ 2.9 $ — $ — $ — $ — Interest Cost 63.9 61.6 5.4 5.9 5.4 5.3 Expected Return on Plan Assets (77.1 ) (81.7 ) (7.9 ) (9.3 ) (0.5 ) (0.4 ) Amortization of: Net Actuarial Loss 12.1 8.7 0.1 0.2 — — Prior Service Credit (0.1 ) — — — (0.1 ) (0.1 ) Plan Amendment — — — — 0.9 — Total $ 4.0 $ (8.5 ) $ (2.4 ) $ (3.2 ) $ 5.7 $ 4.8 |
Stockholders' Equity and Earn29
Stockholders' Equity and Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity and Earnings Per Common Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Earnings Per Common Share Net income per common share is determined as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions of dollars, except share data) Numerator Net Income $ 236.0 $ 203.8 $ 683.4 $ 641.0 Denominator (000s) Weighted Average Common Shares - Basic 233,752.0 245,400.0 236,744.3 248,372.9 Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards 461.5 924.4 399.5 855.2 Weighted Average Common Shares - Assuming Dilution 234,213.5 246,324.4 237,143.8 249,228.1 Net Income Per Common Share Basic $ 1.01 $ 0.83 $ 2.89 $ 2.58 Assuming Dilution $ 1.01 $ 0.83 $ 2.88 $ 2.57 |
Treasury Stock Transactions | Common Stock During the second quarter of 2016, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 26, 2017. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 21, 2016. The remaining repurchase amount under the new program was $598.6 million at September 30, 2016 . Common stock repurchases, which are accounted for using the cost method and classified as treasury stock until otherwise retired, were as follows: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 (in millions) Shares Repurchased 2.9 3.2 9.4 9.4 Cost of Shares Repurchased (1) $ 100.2 $ 115.0 $ 300.3 $ 326.2 (1) Includes commissions of $0.1 million and $0.2 million for the three and nine month period ended September 30, 2016 , respectively, and $0.1 million for the nine months ended September 30, 2015. For the three month period ended September 30, 2015 there was a de minimis amount of commissions. |
Schedule of New Accounting Pron
Schedule of New Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
Short-term Debt | $ 0 | $ 352 |
Long-term Debt | 3,019.8 | 2,449.4 |
Other Assets | $ 647.8 | 637.4 |
Previously Reported Amount | ||
Consolidated Balance Sheets | ||
Short-term Debt | 352.4 | |
Long-term Debt | 2,475.1 | |
Other Assets | 663.5 | |
Accounting Standards Update 2015-03 | Restatement Adjustment | ||
Consolidated Balance Sheets | ||
Short-term Debt | (0.4) | |
Long-term Debt | (25.7) | |
Other Assets | $ (26.1) |
Carrying Amount and Fair Value
Carrying Amount and Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Fixed Maturity Securities | $ 46,315.5 | $ 43,354.4 |
Mortgage Loans | 1,970.4 | 1,883.6 |
Policy Loans | 3,432.8 | 3,395.4 |
Other Long-term Investments | ||
Derivative Assets | 37.1 | 49.8 |
Equity Securities | 1.2 | 1.4 |
Policyholders' Funds | ||
Long-term Debt | 3,019.8 | 2,449.4 |
Payables for Collateral on Investments | ||
Federal Home Loan Bank (FHLB) Funding Agreements | 349.5 | 350 |
Other Liabilities | ||
Derivative Liabilities | 129 | 137.8 |
Unfunded Commitments to Investment Partnerships | 4.8 | |
Carrying Amount | ||
Assets | ||
Fixed Maturity Securities | 46,315.5 | 43,354.4 |
Mortgage Loans | 1,970.4 | 1,883.6 |
Policy Loans | 3,432.8 | 3,395.4 |
Other Long-term Investments | ||
Derivative Assets | 37.1 | 49.8 |
Equity Securities | 1.2 | 1.4 |
Miscellaneous Long-Term Investments | 540.3 | 474.4 |
Policyholders' Funds | ||
Deferred Annuity Products | 602.7 | 608.8 |
Supplementary Contracts without Life Contingencies | 603.7 | 641.1 |
Short-term Debt | 0 | 352 |
Long-term Debt | 3,019.8 | 2,449.4 |
Payables for Collateral on Investments | ||
Federal Home Loan Bank (FHLB) Funding Agreements | 349.5 | 350 |
Other Liabilities | ||
Derivative Liabilities | 55.7 | 50.2 |
Embedded Derivative in Modified Coinsurance Arrangement | 73.3 | 87.6 |
Unfunded Commitments to Investment Partnerships | 5.4 | 5 |
Fair Value | ||
Assets | ||
Fixed Maturity Securities | 46,315.5 | 43,354.4 |
Mortgage Loans | 2,137.6 | 2,013.9 |
Policy Loans | 3,556.7 | 3,498 |
Other Long-term Investments | ||
Derivative Assets | 37.1 | 49.8 |
Equity Securities | 1.2 | 1.4 |
Miscellaneous Long-Term Investments | 540.3 | 474.4 |
Policyholders' Funds | ||
Deferred Annuity Products | 602.7 | 608.8 |
Supplementary Contracts without Life Contingencies | 603.7 | 641.1 |
Short-term Debt | 0 | 366.2 |
Long-term Debt | 3,319.8 | 2,645.9 |
Payables for Collateral on Investments | ||
Federal Home Loan Bank (FHLB) Funding Agreements | 349.5 | 350 |
Other Liabilities | ||
Derivative Liabilities | 55.7 | 50.2 |
Embedded Derivative in Modified Coinsurance Arrangement | 73.3 | 87.6 |
Unfunded Commitments to Investment Partnerships | $ 5.4 | $ 5 |
Fair Value Measurements by Fair
Fair Value Measurements by Fair Value Heirarchy Input Level (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fixed Maturity Securities | ||
Fixed Maturity Securities | $ 46,315.5 | $ 43,354.4 |
Other Long-term Investments | ||
Derivative Assets | 37.1 | 49.8 |
Equity Securities | 1.2 | 1.4 |
Other Liabilities | ||
Derivative Liabilities | 129 | 137.8 |
Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 9,152.9 | 2,926.8 |
Other Long-term Investments | ||
Derivative Assets | 0 | 0 |
Equity Securities | 0 | 0 |
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 35,669.8 | 38,546.4 |
Other Long-term Investments | ||
Derivative Assets | 37.1 | 49.8 |
Equity Securities | 0 | 0 |
Other Liabilities | ||
Derivative Liabilities | 55.7 | 50.2 |
Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,492.8 | 1,881.2 |
Other Long-term Investments | ||
Derivative Assets | 0 | 0 |
Equity Securities | 1.2 | 1.4 |
Other Liabilities | ||
Derivative Liabilities | 73.3 | 87.6 |
Interest Rate Swaps | ||
Other Long-term Investments | ||
Derivative Assets | 3.2 | 2.4 |
Other Liabilities | ||
Derivative Liabilities | 6.1 | 12.3 |
Interest Rate Swaps | Fair Value, Inputs, Level 1 | ||
Other Long-term Investments | ||
Derivative Assets | 0 | 0 |
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Interest Rate Swaps | Fair Value, Inputs, Level 2 | ||
Other Long-term Investments | ||
Derivative Assets | 3.2 | 2.4 |
Other Liabilities | ||
Derivative Liabilities | 6.1 | 12.3 |
Interest Rate Swaps | Fair Value, Inputs, Level 3 | ||
Other Long-term Investments | ||
Derivative Assets | 0 | 0 |
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Foreign Exchange Contracts | ||
Other Long-term Investments | ||
Derivative Assets | 33.9 | 47.4 |
Other Liabilities | ||
Derivative Liabilities | 49.2 | 37.6 |
Foreign Exchange Contracts | Fair Value, Inputs, Level 1 | ||
Other Long-term Investments | ||
Derivative Assets | 0 | 0 |
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Foreign Exchange Contracts | Fair Value, Inputs, Level 2 | ||
Other Long-term Investments | ||
Derivative Assets | 33.9 | 47.4 |
Other Liabilities | ||
Derivative Liabilities | 49.2 | 37.6 |
Foreign Exchange Contracts | Fair Value, Inputs, Level 3 | ||
Other Long-term Investments | ||
Derivative Assets | 0 | 0 |
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Credit Default Swaps | ||
Other Liabilities | ||
Derivative Liabilities | 0.4 | 0.3 |
Credit Default Swaps | Fair Value, Inputs, Level 1 | ||
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Credit Default Swaps | Fair Value, Inputs, Level 2 | ||
Other Liabilities | ||
Derivative Liabilities | 0.4 | 0.3 |
Credit Default Swaps | Fair Value, Inputs, Level 3 | ||
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Embedded Derivative in Modified Coinsurance Arrangement | ||
Other Liabilities | ||
Derivative Liabilities | 73.3 | 87.6 |
Embedded Derivative in Modified Coinsurance Arrangement | Fair Value, Inputs, Level 1 | ||
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Embedded Derivative in Modified Coinsurance Arrangement | Fair Value, Inputs, Level 2 | ||
Other Liabilities | ||
Derivative Liabilities | 0 | 0 |
Embedded Derivative in Modified Coinsurance Arrangement | Fair Value, Inputs, Level 3 | ||
Other Liabilities | ||
Derivative Liabilities | 73.3 | 87.6 |
United States Government and Government Agencies and Authorities | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,452.2 | 1,465.2 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 285.5 | 97.3 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,166.7 | 1,367.9 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0 | 0 |
States, Municipalities, and Political Subdivisions | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,296.7 | 2,117.1 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0 | 0 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,204.6 | 1,994.9 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 92.1 | 122.2 |
Foreign Governments | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 981.7 | 1,051.6 |
Foreign Governments | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0 | 0 |
Foreign Governments | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 981.7 | 998.7 |
Foreign Governments | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0 | 52.9 |
Public Utilities | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 8,422.6 | 8,020.4 |
Public Utilities | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 632.5 | 59.1 |
Public Utilities | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 7,385.8 | 7,687.2 |
Public Utilities | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 404.3 | 274.1 |
Mortgage/Asset-backed Securities | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,386.2 | 2,481.5 |
Mortgage/Asset-backed Securities | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0 | 0 |
Mortgage/Asset-backed Securities | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,386.2 | 2,481.5 |
Mortgage/Asset-backed Securities | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0 | 0 |
All Other Corporate Bonds | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 30,729.1 | 28,171.4 |
All Other Corporate Bonds | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 8,234.9 | 2,770.4 |
All Other Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 21,521.3 | 23,992.8 |
All Other Corporate Bonds | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 972.9 | 1,408.2 |
Redeemable Preferred Stocks | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 47 | 47.2 |
Redeemable Preferred Stocks | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0 | 0 |
Redeemable Preferred Stocks | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 23.5 | 23.4 |
Redeemable Preferred Stocks | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | $ 23.5 | $ 23.8 |
Transfers of Assets between Lev
Transfers of Assets between Level 1 and Level 2 (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
First, Second, and Third Quarters [Member] [Member] | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | $ 5,182.7 | $ 4,191.1 |
Level 2 from Level 1 | 986.3 | 1,213.9 |
First, Second, and Third Quarters [Member] [Member] | United States Government and Government Agencies and Authorities | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 25 | 219.7 |
Level 2 from Level 1 | 0 | 0 |
First, Second, and Third Quarters [Member] [Member] | Public Utilities | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 469.5 | 306.1 |
Level 2 from Level 1 | 29.3 | 57 |
First, Second, and Third Quarters [Member] [Member] | All Other Corporate Bonds | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 4,688.2 | 3,665.3 |
Level 2 from Level 1 | 957 | 1,156.9 |
Third Quarter [Member] | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 2,935.3 | 2,285.4 |
Level 2 from Level 1 | 4,445.9 | 3,165.4 |
Third Quarter [Member] | United States Government and Government Agencies and Authorities | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 0 | 0 |
Level 2 from Level 1 | 418.1 | 0 |
Third Quarter [Member] | States, Municipalities, and Political Subdivisions | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 0 | 0 |
Level 2 from Level 1 | 79 | 0 |
Third Quarter [Member] | Public Utilities | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 316.7 | 157.2 |
Level 2 from Level 1 | 487.5 | 231.8 |
Third Quarter [Member] | All Other Corporate Bonds | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 | 2,618.6 | 2,128.2 |
Level 2 from Level 1 | $ 3,461.3 | $ 2,933.6 |
Changes in Assets and Liabiliti
Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
States, Municipalities, and Political Subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Assets Measured with Unobservable Inputs, Beginning Balance | $ 61.6 | $ 136.7 | $ 122.2 | $ 140.1 |
Investment Gain (Loss) included in Earnings | 0 | 0 | 0 | 0 |
Investment Gain (Loss) included in OCI | 0.1 | (2.4) | 4.2 | (4.7) |
Investment Purchases | 0 | 0 | 0 | 0 |
Investment Sales | 0 | 0 | (0.3) | (0.8) |
Investment Level 3 Transfers Into | 30.4 | 0 | 0 | 0 |
Investment Level 3 Transfers Out of | 0 | (7.7) | (34) | (8) |
Assets Measured with Unobservable Inputs, Ending Balance | 92.1 | 126.6 | 92.1 | 126.6 |
Foreign Governments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Assets Measured with Unobservable Inputs, Beginning Balance | 69.8 | 52.9 | 69.3 | |
Investment Gain (Loss) included in Earnings | 0 | 0 | 0 | |
Investment Gain (Loss) included in OCI | (1.5) | 0 | (1) | |
Investment Purchases | 0 | 0 | 0 | |
Investment Sales | 0 | 0 | 0 | |
Investment Level 3 Transfers Into | 0 | 0 | 0 | |
Investment Level 3 Transfers Out of | 0 | (52.9) | 0 | |
Assets Measured with Unobservable Inputs, Ending Balance | 0 | 68.3 | 0 | 68.3 |
Public Utilities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Assets Measured with Unobservable Inputs, Beginning Balance | 453.5 | 357.8 | 274.1 | 315 |
Investment Gain (Loss) included in Earnings | 0 | 0 | 0 | 0 |
Investment Gain (Loss) included in OCI | (3.2) | 1.3 | 3.9 | (2.9) |
Investment Purchases | 0 | 40 | 0 | 40 |
Investment Sales | (0.3) | 0 | (0.7) | (2.3) |
Investment Level 3 Transfers Into | 62.1 | 9 | 276.9 | 70.7 |
Investment Level 3 Transfers Out of | (107.8) | (88.6) | (149.9) | (101) |
Assets Measured with Unobservable Inputs, Ending Balance | 404.3 | 319.5 | 404.3 | 319.5 |
All Other Corporate Bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Assets Measured with Unobservable Inputs, Beginning Balance | 1,359.6 | 1,321.9 | 1,408.2 | 1,425.3 |
Investment Gain (Loss) included in Earnings | 0.8 | 0 | 1.4 | 2.1 |
Investment Gain (Loss) included in OCI | 8 | (13.9) | 52.7 | (35.8) |
Investment Purchases | 0 | 0 | 20 | 25 |
Investment Sales | (24) | (61.9) | (61.8) | (142.2) |
Investment Level 3 Transfers Into | 326.2 | 225.1 | 381.4 | 307.1 |
Investment Level 3 Transfers Out of | (697.7) | (456.1) | (829) | (566.4) |
Assets Measured with Unobservable Inputs, Ending Balance | 972.9 | 1,015.1 | 972.9 | 1,015.1 |
Redeemable Preferred Stocks | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Assets Measured with Unobservable Inputs, Beginning Balance | 23.6 | 24.8 | 23.8 | 24.9 |
Investment Gain (Loss) included in Earnings | 0 | 0 | 0 | 0 |
Investment Gain (Loss) included in OCI | (0.1) | 0 | (0.3) | (0.1) |
Investment Purchases | 0 | 0 | 0 | 0 |
Investment Sales | 0 | 0 | 0 | |
Investment Level 3 Transfers Into | 0 | 0 | 0 | 0 |
Investment Level 3 Transfers Out of | 0 | 0 | 0 | 0 |
Assets Measured with Unobservable Inputs, Ending Balance | 23.5 | 24.8 | 23.5 | 24.8 |
Fixed Maturity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Assets Measured with Unobservable Inputs, Beginning Balance | 1,898.3 | 1,911 | 1,881.2 | 1,974.6 |
Investment Gain (Loss) included in Earnings | 0.8 | 0 | 1.4 | 2.1 |
Investment Gain (Loss) included in OCI | 4.8 | (16.5) | 60.5 | (44.5) |
Investment Purchases | 0 | 40 | 20 | 65 |
Investment Sales | (24.3) | (61.9) | (62.8) | (145.3) |
Investment Level 3 Transfers Into | 418.7 | 234.1 | 658.3 | 377.8 |
Investment Level 3 Transfers Out of | (805.5) | (552.4) | (1,065.8) | (675.4) |
Assets Measured with Unobservable Inputs, Ending Balance | 1,492.8 | 1,554.3 | 1,492.8 | 1,554.3 |
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Assets Measured with Unobservable Inputs, Beginning Balance | 1.2 | 1.4 | 1.4 | 1.4 |
Investment Gain (Loss) included in Earnings | 0 | 0 | 0 | 0 |
Investment Gain (Loss) included in OCI | 0 | 0.1 | 0.1 | 0.1 |
Investment Purchases | 0 | 0 | 0 | 0 |
Investment Sales | 0 | 0 | (0.3) | 0 |
Investment Level 3 Transfers Into | 0 | 0 | 0 | 0 |
Investment Level 3 Transfers Out of | 0 | 0 | 0 | 0 |
Assets Measured with Unobservable Inputs, Ending Balance | 1.2 | 1.5 | 1.2 | 1.5 |
Embedded Derivative in Modified Coinsurance Arrangement | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivatives Measured with Unobservable Inputs, Beginning Balance | (83) | (55.8) | (87.6) | (49.9) |
Derivative Liability Gain (Loss) Included in Earnings | 9.7 | (27.3) | 14.3 | (33.2) |
Derivative Liability Gain (Loss) Included in OCI | 0 | 0 | 0 | 0 |
Derivative Purchases | 0 | 0 | 0 | 0 |
Derivative Sales | 0 | 0 | 0 | 0 |
Derivative Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Derivative Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Derivatives Measured with Unobservable Inputs, Ending Balance | $ (73.3) | $ (83.1) | $ (73.3) | $ (83.1) |
Quantitative Information Regard
Quantitative Information Regarding Significant Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Embedded Derivative Liability | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ (73.3) | $ (87.6) | |
Embedded Derivative Liability | Projected Cash Flows | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [1] | Actuarial Assumptions | Actuarial Assumptions |
States, Municipalities, and Political Subdivisions | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 73.3 | ||
States, Municipalities, and Political Subdivisions | Minimum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Change in Benchmark Reference | [2] | 0.50% | |
States, Municipalities, and Political Subdivisions | Maximum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Change in Benchmark Reference | [2] | 1.00% | |
States, Municipalities, and Political Subdivisions | Weighted Average | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Change in Benchmark Reference | [2] | 0.70% | |
Municipal Bonds [Member] | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 12 | ||
Municipal Bonds [Member] | Market Convention | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [3] | Priced at Par | |
All Other Corporate Bonds - Private | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 143.4 | $ 151 | |
All Other Corporate Bonds - Private | Market Convention | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [3] | Priced at Par | Priced at Par |
All Other Corporate Bonds - Private | Minimum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Comparability Adjustments | [4] | 0.50% | 0.50% |
Discount for Size | [5] | 0.50% | 0.50% |
Lack of Marketability | [6] | 1.00% | |
Volatility of Credit | [7] | 0.25% | 0.25% |
All Other Corporate Bonds - Private | Maximum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Comparability Adjustments | [4] | 0.50% | 0.50% |
Discount for Size | [5] | 0.50% | 0.50% |
Lack of Marketability | [6] | 2.00% | |
Volatility of Credit | [7] | 6.72% | 5.56% |
All Other Corporate Bonds - Private | Weighted Average | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Comparability Adjustments | [4] | 0.50% | 0.50% |
Discount for Size | [5] | 0.50% | 0.50% |
Lack of Marketability | [6] | 1.75% | |
Volatility of Credit | [7] | 0.97% | 0.94% |
All Other Corporate Bonds - Public | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 36.2 | ||
All Other Corporate Bonds - Public | Minimum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Lack of Marketability | [6] | 1.00% | |
All Other Corporate Bonds - Public | Maximum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Lack of Marketability | [6] | 1.00% | |
All Other Corporate Bonds - Public | Weighted Average | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Lack of Marketability | [6] | 1.00% | |
Equity Securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 1.1 | $ 1.1 | |
Equity Securities | Market Convention | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [3] | Priced at Cost or Owner's Equity | Priced at Cost or Owner's Equity |
[1] | Represents various actuarial assumptions required to derive the liability cash flows including incidence, termination, and lapse rates | ||
[2] | Represents basis point adjustments for changes in benchmark spreads associated with various ratings categories | ||
[3] | Represents a decision to price based on par value, cost, or owner's equity when limited data is available | ||
[4] | Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors | ||
[5] | Represents basis point adjustments based on issue/issuer size relative to the benchmark | ||
[6] | Represents basis point adjustments to apply a discount due to the illiquidity of an investment | ||
[7] | Represents basis point adjustments for credit-specific factors |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Ceded Policy Loans | $ 3,178.8 | $ 3,178.8 | $ 3,150.1 | ||
Long-term Debt | 3,019.8 | 3,019.8 | 2,449.4 | ||
Gain (Loss) on Embedded Derivative | 9.7 | $ (27.3) | 14.3 | $ (33.2) | |
Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Long-term Debt | $ 1,610.7 | $ 1,610.7 | 956.4 | ||
Percentage of Total Fair Value of Fixed Maturities Securities | 19.80% | 19.80% | |||
Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Long-term Debt | $ 1,709.1 | $ 1,709.1 | $ 1,689.5 | ||
Fair Value, Inputs, Level 2 | Pricing Service | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 66.00% | 66.00% | |||
Fair Value, Inputs, Level 2 | Other Observable Market Data | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 3.30% | 3.30% | |||
Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Private Equity Partnership Future Liquidation Term | 1 year | ||||
Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Private Equity Partnership Future Liquidation Term | 11 years | ||||
Fair Value Inputs Other Than Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 80.20% | 80.20% | |||
Fair Value Inputs Level 2 Or Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 10.90% | 10.90% |
Amortized Cost and Fair Values
Amortized Cost and Fair Values of Securities by Security Type (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | $ 39,625.1 | $ 39,658.7 |
Fair Value of Fixed Maturity Securities | 46,315.5 | 43,354.4 |
United States Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 1,194.7 | 1,265.8 |
Accumulated Gross Unrealized Gain on Securities | 257.5 | 207.3 |
Accumulated Gross Unrealized Loss on Securities | 0 | 7.9 |
Fair Value of Fixed Maturity Securities | 1,452.2 | 1,465.2 |
States, Municipalities, and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 1,832.5 | 1,828.3 |
Accumulated Gross Unrealized Gain on Securities | 464.4 | 293.4 |
Accumulated Gross Unrealized Loss on Securities | 0.2 | 4.6 |
Fair Value of Fixed Maturity Securities | 2,296.7 | 2,117.1 |
Foreign Governments | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 749 | 897.2 |
Accumulated Gross Unrealized Gain on Securities | 232.7 | 154.4 |
Accumulated Gross Unrealized Loss on Securities | 0 | 0 |
Fair Value of Fixed Maturity Securities | 981.7 | 1,051.6 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 6,904 | 6,979.3 |
Accumulated Gross Unrealized Gain on Securities | 1,519.9 | 1,057.4 |
Accumulated Gross Unrealized Loss on Securities | 1.3 | 16.3 |
Fair Value of Fixed Maturity Securities | 8,422.6 | 8,020.4 |
Mortgage/Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 2,178.8 | 2,318.6 |
Accumulated Gross Unrealized Gain on Securities | 207.7 | 167.6 |
Accumulated Gross Unrealized Loss on Securities | 0.3 | 4.7 |
Fair Value of Fixed Maturity Securities | 2,386.2 | 2,481.5 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 26,722.1 | 26,325.5 |
Accumulated Gross Unrealized Gain on Securities | 4,088.8 | 2,454.1 |
Accumulated Gross Unrealized Loss on Securities | 81.8 | 608.2 |
Fair Value of Fixed Maturity Securities | 30,729.1 | 28,171.4 |
Redeemable Preferred Stocks | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 44 | 44 |
Accumulated Gross Unrealized Gain on Securities | 3.5 | 3.8 |
Accumulated Gross Unrealized Loss on Securities | 0.5 | 0.6 |
Fair Value of Fixed Maturity Securities | 47 | 47.2 |
Fixed Maturity Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 39,625.1 | 39,658.7 |
Accumulated Gross Unrealized Gain on Securities | 6,774.5 | 4,338 |
Accumulated Gross Unrealized Loss on Securities | 84.1 | 642.3 |
Fair Value of Fixed Maturity Securities | $ 46,315.5 | $ 43,354.4 |
Length of Time Fixed Maturity S
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | $ 419.1 | $ 7,403.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 9.7 | 496 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 961.9 | 577.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 74.4 | 146.3 |
United States Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 213.5 | |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 7.9 | |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0 | |
States, Municipalities, and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 21.1 | 112.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 0.2 | 4.3 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 1 | 3.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0 | 0.3 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 64.5 | 408.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 1 | 14.4 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 16.9 | 10.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0.3 | 1.9 |
Mortgage/Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 9.3 | 504.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 0.2 | 4.6 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 0.9 | 9 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0.1 | 0.1 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 311.5 | 6,155 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 8 | 464.2 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 932.3 | 554.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 73.8 | 144 |
Redeemable Preferred Stocks | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 12.7 | 10.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 0.3 | 0.6 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 10.8 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | $ 0.2 | $ 0 |
Distribution of the Maturity Da
Distribution of the Maturity Dates for Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-Sale Securities, Total Amortized Cost | ||
1 year or less | $ 1,313.5 | $ 1,112.2 |
Over 1 year through 5 years | 6,304 | 6,514 |
Over 5 years through 10 years | 11,073.3 | 10,519.3 |
Over 10 years | 18,755.5 | 19,194.6 |
Available-for-sale Securities, Debt Maturities, Gross Subtotal | 37,446.3 | 37,340.1 |
Mortgage/Asset-Backed Securities | 2,178.8 | 2,318.6 |
Amortized Cost of Fixed Maturity Securities | 39,625.1 | 39,658.7 |
Fair Value Maturity Distribution | ||
Total Fixed Maturity Securities | 46,315.5 | 43,354.4 |
Fair Value of Fixed Maturity Securities in Unrealized Gain Position | ||
Available-for-Sale Securities, Unrealized Gain Position, Gross Gain | ||
1 year or less | 26.9 | 20.6 |
Over 1 year through 5 years | 634.1 | 554.4 |
Over 5 years through 10 years | 1,269.9 | 746.3 |
Over 10 years | 4,635.9 | 2,849.1 |
Available-For-Sale Securities, Debt Maturities Unrealized Gain Position, Gross Gain, Gross Subtotal | 6,566.8 | 4,170.4 |
Mortgage/Asset-Backed Securities | 207.7 | 167.6 |
Total Fixed Maturity Securities | 6,774.5 | 4,338 |
Fair Value Maturity Distribution | ||
1 year or less | 1,333.6 | 1,098.8 |
Over 1 year through 5 years | 6,693 | 6,649.5 |
Over 5 years through 10 years | 11,663 | 7,124.4 |
Over 10 years | 22,868.9 | 18,532.3 |
Available-for-sale Securities, Debt Maturities, Fair Value, Gross Subtotal | 42,558.5 | 33,405 |
Mortgage/Asset-Backed Securities | 2,376 | 1,968.2 |
Total Fixed Maturity Securities | 44,934.5 | 35,373.2 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position | ||
Fair Value Maturity Distribution | ||
1 year or less | 6.7 | 33.8 |
Over 1 year through 5 years | 231.8 | 369.1 |
Over 5 years through 10 years | 635.6 | 3,820.7 |
Over 10 years | 496.7 | 3,244.3 |
Available-for-sale Securities, Debt Maturities, Fair Value, Gross Subtotal | 1,370.8 | 7,467.9 |
Mortgage/Asset-Backed Securities | 10.2 | 513.3 |
Total Fixed Maturity Securities | 1,381 | 7,981.2 |
Available-for-Sale Securities, Unrealized Loss Position, Gross Loss | ||
1 year or less | 0.1 | 0.2 |
Over 1 year through 5 years | 13.3 | 49.8 |
Over 5 years through 10 years | 44.6 | 320.5 |
Over 10 years | 25.8 | 267.1 |
Available-For-Sale Securities, Debt Maturities Unrealized Gain Position, Gross Loss, Gross Subtotal | 83.8 | 637.6 |
Mortgage/Asset-Backed Securities | 0.3 | 4.7 |
Total Fixed Maturity Securities | $ 84.1 | $ 642.3 |
Investments Low Income Housing
Investments Low Income Housing Tax Credits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, All Other Investments [Abstract] | ||||
Low Income Housing Tax Credits | $ 10.4 | $ 10.4 | $ 31.3 | $ 31.4 |
Amortization of Low Income Housing Investments | (5.8) | (5.9) | (17.4) | (17.5) |
Tax Benefits from Low Income Housing Investments | $ 4.6 | $ 4.5 | $ 13.9 | $ 13.9 |
Mortgage Loans by Property Type
Mortgage Loans by Property Type and Geographic Region (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 1,970.4 | $ 1,883.6 |
Percent of Total | 100.00% | 100.00% |
New England | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 73.6 | $ 97.6 |
Percent of Total | 3.70% | 5.20% |
Middle Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 113.7 | $ 128.8 |
Percent of Total | 5.80% | 6.90% |
East North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 215.3 | $ 186.4 |
Percent of Total | 10.90% | 9.90% |
West North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 173.6 | $ 162.6 |
Percent of Total | 8.80% | 8.60% |
South Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 417.6 | $ 409.3 |
Percent of Total | 21.20% | 21.70% |
East South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 97.9 | $ 79.1 |
Percent of Total | 5.00% | 4.20% |
West South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 250.7 | $ 237.6 |
Percent of Total | 12.70% | 12.60% |
Mountain | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 209.2 | $ 196.5 |
Percent of Total | 10.60% | 10.40% |
Pacific | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 418.8 | $ 385.7 |
Percent of Total | 21.30% | 20.50% |
Apartment | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 245.7 | $ 130.6 |
Percent of Total | 12.50% | 6.90% |
Industrial | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 591.5 | $ 574.1 |
Percent of Total | 30.00% | 30.50% |
Office | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 701.1 | $ 764.7 |
Percent of Total | 35.60% | 40.60% |
Retail | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 410.6 | $ 392.3 |
Percent of Total | 20.80% | 20.80% |
Other Property | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 21.5 | $ 21.9 |
Percent of Total | 1.10% | 1.20% |
Mortgage Loans Sorted by Applic
Mortgage Loans Sorted by Applicable Internal Credit Ratings and Loan-to-Value Ratios (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment | ||
Mortgage Loans | $ 1,970.4 | $ 1,883.6 |
Aa Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 0.8 | 1.1 |
A Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 488.3 | 586.6 |
Baa Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 1,445.1 | 1,285.8 |
Ba Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 36.2 | 10.1 |
Loan to Value Ratio Below or Equal to 65 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 889.1 | 937.2 |
Loan To Value Ratio Above 65 To 75 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 962.6 | 842.5 |
Loan To Value Ratio Above 75 To 85 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 73.1 | 88.4 |
Loan To Value Ratio Above 85 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | $ 45.6 | $ 15.5 |
Investments Remaining Contractu
Investments Remaining Contractual Maturity of Securities Lending Agreements (Details) - Overnight and Continuous - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 56.6 | $ 29 |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 56.6 | 29 |
Secured Borrowings, Gross, Difference, Amount | 0 | 0 |
United States Government and Government Agencies and Authorities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 9.8 | 1.2 |
Public Utilities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 4 | 4 |
All Other Corporate Bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 42.8 | $ 23.8 |
Schedule of Financial Instrumen
Schedule of Financial Instrument and Derivative Offsetting (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Derivative Assets | ||
Gross Derivative Assets | $ 37.1 | $ 49.8 |
Derivative Liabilities Offsetting Derivative Assets in Balance Sheet | 0 | 0 |
Net Derivative Assets Reported in Balance Sheet | 37.1 | 49.8 |
Securities Received as Collateral on Derivative Assets | (8.2) | (12.8) |
Cash Collateral from Counterparties | (28.8) | (36.4) |
Derivative Assets Net of Collateral | 0.1 | 0.6 |
Offsetting Securities Borrowed | ||
Gross Securities Borrowed | 210 | 181.6 |
Liabilities Offsetting Securities Borrowed in Balance Sheet | 0 | 0 |
Net Securities Borrowed Reported in Balance Sheet | 210 | 181.6 |
Securities Received as Collateral on Securities Borrowed | (153.4) | (152.6) |
Cash Received as Collateral on Securities Borrowed | (56.6) | (29) |
Securities Borrowed Net of Collateral | 0 | 0 |
Offsetting of Derivative Assets and Securities Borrowed | ||
Gross Financial Assets | 247.1 | 231.4 |
Financial Liabilities Offsetting Financial Assets in Balance Sheet | 0 | 0 |
Net Financial Assets Reported in Balance Sheet | 247.1 | 231.4 |
Securities Received as Collateral on Financial Assets | (161.6) | (165.4) |
Cash Received as Collateral on Financial Assets | (85.4) | (65.4) |
Financial Assets Net of Collateral | 0.1 | 0.6 |
Offsetting Derivative Liabilities | ||
Net Derivative Liabilities Reported in Balance Sheet | 129 | 137.8 |
Cash Collateral to Counterparties | 0 | 0 |
Offsetting Securities Loaned | ||
Gross Securities Loaned | 56.6 | 29 |
Assets Offsetting Securities Loaned in Balance Sheet | 0 | 0 |
Net Securities Loaned Reported in Balance Sheet | 56.6 | 29 |
Securities Given as Collateral on Securities Loaned | (56.6) | (29) |
Cash Given as Collateral on Securities Loaned | 0 | 0 |
Securities Loaned Net of Collateral | 0 | 0 |
Derivative Liabilities and Securities Lending Liabilities | ||
Gross Financial Liability | 112.3 | 79.2 |
Financial Assets Offsetting Financial Liabilities in Balance Sheet | 0 | 0 |
Net Financial Liabilities Reported in Balance Sheet | 112.3 | 79.2 |
Securities Given as Collateral on Financial Liabilities | (98.1) | (64.6) |
Cash Given as Collateral on Financial Liabilities | 0 | 0 |
Financial Liabilities Net of Collateral | 14.2 | 14.6 |
Over the Counter | ||
Offsetting Derivative Liabilities | ||
Gross Derivative Liability | 55.7 | 50.2 |
Derivative Assets Offsetting Derivative Liabilities in Balance Sheet | 0 | 0 |
Net Derivative Liabilities Reported in Balance Sheet | 55.7 | 50.2 |
Securities Given as Collateral on Derivative Liabilities | (41.5) | (35.6) |
Cash Collateral to Counterparties | 0 | 0 |
Derivative Liabilities Net of Collateral | $ 14.2 | $ 14.6 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | $ 622.3 | $ 623.4 | $ 1,875.3 | $ 1,879.3 |
Less Investment Expenses | 7.4 | 7.7 | 23.5 | 23.5 |
Less Investment Income on PFA Assets | 3.5 | 3.6 | 10.7 | 11 |
Net Investment Income | 611.4 | 612.1 | 1,841.1 | 1,844.8 |
Fixed Maturity Securities | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 573.2 | 573.3 | 1,716.6 | 1,732.4 |
Derivatives | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 12.6 | 11.3 | 36.9 | 33.7 |
Mortgage Loans | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 30.6 | 26.8 | 87.6 | 82.5 |
Policy Loans | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 4.4 | 4.2 | 12.8 | 12.4 |
Other Long-term Investments | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | (0.9) | 7.1 | 15.4 | 15.9 |
Short-term Investments | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | $ 2.4 | $ 0.7 | $ 6 | $ 2.4 |
Realized Investment Gains and L
Realized Investment Gains and Losses Reported in Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fixed Maturity Securities | ||||
Gross Gains on Sales | $ 1.6 | $ 12.4 | $ 29.4 | $ 19.8 |
Gross Losses on Sales | (0.4) | (4.4) | (14) | (12) |
Other-Than-Temporary Impairment Loss | 0 | (9.4) | (30.5) | (22) |
Mortgage Loans and Other Invested Assets | ||||
Gross Gains on Sales | 0.2 | 5.1 | 4 | 14 |
Gross Losses on Sales | 0 | 0 | (0.7) | 0 |
Impairment Loss | 0 | (1.1) | (3.1) | (4.8) |
Gain (Loss) on Embedded Derivative | 9.7 | (27.3) | 14.3 | (33.2) |
Gain (Loss) on All Other Derivatives | 0.1 | (1) | (3.5) | (1.3) |
Foreign Currency Transactions | (0.2) | (0.9) | (0.1) | (1.6) |
Net Realized Investment Gain (Loss) | $ 11 | $ (26.6) | $ (4.2) | $ (41.1) |
Investments - Additional Inform
Investments - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Investments | ||||||||
Fair Value of Fixed Maturity Securities | $ 46,315,500,000 | $ 46,315,500,000 | $ 43,354,400,000 | |||||
Fixed Maturity Securities Other Than Temporary Impairments in Accumulated Other Comprehensive Income Loss | 0 | 0 | 0 | |||||
Commitment to Fund Private Placement Fixed Maturity Securities | 75,500,000 | 75,500,000 | ||||||
Carrying Amount of Variable Interest Entity Investments | 507,900,000 | 507,900,000 | ||||||
Unfunded Commitments to Investment Partnerships | 4,800,000 | 4,800,000 | ||||||
Unfunded Unconditional Commitment to Fund Private Equity Partnerships | 600,000 | 600,000 | ||||||
Commitment to Fund Partnership Equity Investments | 260,400,000 | 260,400,000 | ||||||
Other Long-term Investments | 634,300,000 | 634,300,000 | $ 583,000,000 | |||||
Commitments to Fund Special Purpose Entities | $ 0 | $ 0 | ||||||
Amount Funded to Special Purpose Entity Partnerships | nor did we fund any amounts to the partnership | nor did we fund any amounts to the partnership | ||||||
Mortgage Loan Policy is not to Exceed a Loan-to-value Ratio, Percent | 75.00% | 75.00% | ||||||
Loan to Value Ratio Update Frequency | 3 years | |||||||
Mortgage Loan Inspection Frequency | 2 years | |||||||
Mortage Loan Policy Debt Service Coverage Ratio Lower Range | 125.00% | 125.00% | ||||||
Mortgage Loans Issuance, Term Years | 25 years | |||||||
Impaired Financing Receivable, Recorded Investment | $ 5,400,000 | $ 5,400,000 | ||||||
Number of Financing Receivables on Nonaccrual Status | 0 | 0 | 0 | |||||
Number of Changes to Accounting Policy for Estimating Credit Losses on Mortgage Loans | 0 | |||||||
Average Recorded Investment in Impaired Mortgage Loans | $ 3,600,000 | $ 8,400,000 | $ 3,000,000 | $ 11,500,000 | ||||
Interest Income on Mortgage Loans Subsequent to Impairment | 200,000 | $ 600,000 | ||||||
Committments to Fund Commercial Mortgage Loans | $ 38,000,000 | $ 38,000,000 | ||||||
Repurchase agreements - Typical Days Outstanding | 30 days | |||||||
Minimum Percent of Fair Value of Securities Loaned or Securities Purchased Under Repurchase Agreements to be Maintained as Collateral | 102.00% | 102.00% | ||||||
Net Securities Borrowed Reported in Balance Sheet | $ 210,000,000 | $ 210,000,000 | $ 181,600,000 | |||||
Outstanding Repurchase Agreements | 0 | 0 | 0 | |||||
Federal Home Loan Bank Stock | 31,600,000 | 31,600,000 | 30,900,000 | |||||
Federal Home Loan Bank (FHLB) Funding Agreements | 349,500,000 | 349,500,000 | 350,000,000 | |||||
Fixed Maturity Securities | ||||||||
Schedule of Investments | ||||||||
Fair Value of Fixed Maturity Securities | 46,315,500,000 | 46,315,500,000 | 43,354,400,000 | |||||
Accumulated Gross Unrealized Gain on Securities | 6,774,500,000 | 6,774,500,000 | 4,338,000,000 | |||||
Accumulated Gross Unrealized Loss on Securities | 84,100,000 | 84,100,000 | 642,300,000 | |||||
Collateral Pledged to Federal Home Loan Bank (FHLB) | 329,200,000 | 329,200,000 | 317,200,000 | |||||
Mortgage Loans as Collateral | ||||||||
Schedule of Investments | ||||||||
Collateral Pledged to Federal Home Loan Bank (FHLB) | 81,100,000 | 81,100,000 | 96,000,000 | |||||
Off Balance Sheet Amount | ||||||||
Schedule of Investments | ||||||||
Cash Collateral for Borrowed Securities | 56,600,000 | 56,600,000 | 29,000,000 | |||||
Securities Received as Collateral | 161,300,000 | 161,300,000 | 159,300,000 | |||||
Commercial Real Estate Portfolio Segment | ||||||||
Schedule of Investments | ||||||||
Financing Receivable, Allowance for Credit Losses | $ 0 | 0 | $ 2,000,000 | $ 0 | ||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 2,000,000 | |||||||
Impaired Financing Receivable, Related Allowance | $ 1,500,000 | |||||||
Provision for Loan and Lease Losses | $ 500,000 | $ 0 | ||||||
Commercial Real Estate Portfolio Segment | ||||||||
Schedule of Investments | ||||||||
Number of Loan Modifications due to Loan Foreclosure | 1 | 0 | 1 | 0 | ||||
Special Purpose Entity | Bonds | ||||||||
Schedule of Investments | ||||||||
Fair Value of Fixed Maturity Securities | $ 153,700,000 | $ 153,700,000 | ||||||
Special Purpose Entity | Partnership Interest | ||||||||
Schedule of Investments | ||||||||
Other Long-term Investments | 900,000 | 900,000 | ||||||
Partnership Interests In Tax Credit Investments | ||||||||
Schedule of Investments | ||||||||
Carrying Amount of Variable Interest Entity Investments | 174,400,000 | 174,400,000 | ||||||
Equity Method Investments | ||||||||
Schedule of Investments | ||||||||
Carrying Amount of Variable Interest Entity Investments | 333,500,000 | 333,500,000 | ||||||
External Credit Rating, Investment Grade | ||||||||
Schedule of Investments | ||||||||
Fair Value of Fixed Maturity Securities | 42,704,100,000 | 42,704,100,000 | ||||||
Accumulated Gross Unrealized Gain on Securities | 6,608,900,000 | 6,608,900,000 | ||||||
Accumulated Gross Unrealized Loss on Securities | $ 15,700,000 | $ 15,700,000 | ||||||
Percent of Fixed Maturity Securities in Unrealized Loss Position | 18.70% | 18.70% | ||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 147 | 147 | ||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One year | 17 | 17 | ||||||
External Credit Rating, Non Investment Grade | ||||||||
Schedule of Investments | ||||||||
Fair Value of Fixed Maturity Securities | $ 3,611,400,000 | $ 3,611,400,000 | ||||||
Accumulated Gross Unrealized Gain on Securities | 165,600,000 | 165,600,000 | ||||||
Accumulated Gross Unrealized Loss on Securities | $ 68,400,000 | $ 68,400,000 | ||||||
Percent of Fixed Maturity Securities in Unrealized Loss Position | 81.30% | 81.30% | ||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 55 | 55 | ||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One year | 43 | 43 | ||||||
Starmount | ||||||||
Schedule of Investments | ||||||||
Fair Value of Fixed Maturity Securities | $ 39,300,000 | $ 39,300,000 | ||||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 200,000 | $ 200,000 | ||||||
Starmount | External Credit Rating, Investment Grade | ||||||||
Schedule of Investments | ||||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 113 | 113 |
Notional Amounts for Each Categ
Notional Amounts for Each Category of Derivative Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative | ||||
Balance at beginning of period | $ 1,440.5 | $ 1,638.7 | $ 1,470.3 | $ 1,687.4 |
Additions | 3.5 | 67 | 3.5 | 96 |
Terminations | 357.1 | 5.5 | 386.9 | 83.2 |
Balance at ending of period | 1,086.9 | 1,700.2 | 1,086.9 | 1,700.2 |
Swaps | Receive Variable/Pay Fixed | ||||
Derivative | ||||
Balance at beginning of period | 126 | 150 | 150 | 150 |
Additions | 3.5 | 0 | 3.5 | 0 |
Terminations | 0 | 0 | 24 | 0 |
Balance at ending of period | 129.5 | 150 | 129.5 | 150 |
Swaps | Receive Fixed/Pay Fixed | ||||
Derivative | ||||
Balance at beginning of period | 644.5 | 816.7 | 650.3 | 840.4 |
Additions | 0 | 0 | 0 | 0 |
Terminations | 7.1 | 3.5 | 12.9 | 27.2 |
Balance at ending of period | 637.4 | 813.2 | 637.4 | 813.2 |
Swaps | Receive Fixed/Pay Variable | ||||
Derivative | ||||
Balance at beginning of period | 600 | 600 | 600 | 600 |
Additions | 0 | 0 | 0 | 0 |
Terminations | 350 | 0 | 350 | 0 |
Balance at ending of period | 250 | 600 | 250 | 600 |
Swaps | Credit Default Swaps | ||||
Derivative | ||||
Balance at beginning of period | 70 | 72 | 70 | 97 |
Additions | 0 | 0 | 0 | 2 |
Terminations | 0 | 2 | 0 | 29 |
Balance at ending of period | 70 | 70 | 70 | 70 |
Forwards | ||||
Derivative | ||||
Balance at beginning of period | 0 | 0 | 0 | 0 |
Additions | 0 | 67 | 0 | 94 |
Terminations | 0 | 0 | 0 | 27 |
Balance at ending of period | $ 0 | $ 67 | $ 0 | $ 67 |
Location and Fair Values of Der
Location and Fair Values of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative | ||
Asset Derivatives Fair Value | $ 37.1 | $ 49.8 |
Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 37.1 | 49.8 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 21 | 18.3 |
Designated as Hedging Instrument | Interest Rate Swaps | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 3.2 | 2.4 |
Designated as Hedging Instrument | Interest Rate Swaps | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 5.1 | 12.3 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 33.9 | 47.4 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 15.9 | 6 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 108 | 119.5 |
Not Designated as Hedging Instrument | Interest Rate Swaps | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 1 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 33.3 | 31.6 |
Not Designated as Hedging Instrument | Credit Risk Contract | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 0.4 | 0.3 |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | $ 73.3 | $ 87.6 |
Location of Gains and Losses on
Location of Gains and Losses on Derivative Financial Instruments Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 0.3 | $ 32.7 | $ (24.2) | $ 59.1 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 13 | 12.1 | 41.1 | 36.2 |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 0 | (0.8) | 0 | (0.8) |
Interest Rate Swaps | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 13.8 | 12.8 | 40.6 | 38.3 |
Interest Rate Swaps | Net Realized Investments Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0.3 | 3.2 | 0.6 |
Interest Rate Swaps | Interest Expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.5) | (0.5) | (1.4) | (1.4) |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 0.3 | 33.5 | (24.2) | 59.9 |
Foreign Exchange Contracts | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.3) | (0.3) | (0.8) | (1.3) |
Foreign Exchange Contracts | Net Realized Investments Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ (0.2) | $ (0.5) | $ 0 |
Gains and Losses on Derivatives
Gains and Losses on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | $ 0.1 | $ (1) | $ (3.5) | $ (1.3) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | 9.8 | (28.3) | 12 | (34.5) |
Not Designated as Hedging Instrument | Credit Default Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | (0.3) | 0.1 | (0.7) | (0.5) |
Not Designated as Hedging Instrument | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | 0.1 | 0 | 0.1 | 0 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | 0.3 | (1.1) | (1.7) | (0.8) |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | $ 9.7 | $ (27.3) | $ 14.3 | $ (33.2) |
Derivative Financial Instrume52
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative | ||||||||
Derivative Assets | $ 37,100,000 | $ 37,100,000 | $ 49,800,000 | |||||
Cash Collateral from Counterparties | 28,800,000 | 28,800,000 | 36,400,000 | |||||
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | 39,000,000 | 39,000,000 | 27,300,000 | |||||
Cash Collateral to Counterparties | 0 | 0 | 0 | |||||
Aggregate Fair Value of all Derivative Instruments with Credit Risk-related Contingent Features in a Liability Position | 55,700,000 | 55,700,000 | 50,200,000 | |||||
Notional Amount of Derivatives | 1,086,900,000 | $ 1,700,200,000 | 1,086,900,000 | $ 1,700,200,000 | $ 1,440,500,000 | 1,470,300,000 | $ 1,638,700,000 | $ 1,687,400,000 |
Material Ineffectiveness on Cash Flow Hedges | 0 | 0 | 0 | 0 | ||||
Gain from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | 0 | 0 | 0 | 0 | ||||
Approximate Amount of Net Deferred Gains on Derivative Instruments Expected to be Amortized During the Next Twelve Months | 56,800,000 | |||||||
Notional Amount Of Derivatives Terminations | 357,100,000 | 5,500,000 | 386,900,000 | 83,200,000 | ||||
Loss on Derivative Contract Termination | 1,200,000 | |||||||
Material Ineffectiveness on Fair Value Hedges | 0 | 0 | 0 | 0 | ||||
Component of Derivative Gain (Loss) Excluded from the Assessment of Hedge Effectiveness | 0 | 0 | 0 | 0 | ||||
Discontinued Hedge Accounting Due to Instrument No Longer Qualifying as Fair Value Hedge | 0 | |||||||
Derivative, Amount of Hedged Item | 3,500,000 | 3,500,000 | ||||||
Interest Rate Swaps | ||||||||
Derivative | ||||||||
Derivative Assets | 3,200,000 | 3,200,000 | 2,400,000 | |||||
Receive Variable/Pay Fixed | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 126,000,000 | 126,000,000 | 150,000,000 | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 1,700,000 | 700,000 | 4,600,000 | 2,800,000 | ||||
Receive Fixed/Pay Variable | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 250,000,000 | 250,000,000 | 600,000,000 | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 3,100,000 | (4,700,000) | (3,500,000) | (5,100,000) | ||||
Cash Flow Hedging | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 415,000,000 | 415,000,000 | 427,900,000 | |||||
Fair Value Hedging | Receive Fixed/Pay Variable | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives Matured | 350,000,000 | |||||||
Amount of Hedged Item, Matured | 350,000,000 | |||||||
Not Designated as Hedging Instrument | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 222,400,000 | 222,400,000 | 222,400,000 | |||||
Not Designated as Hedging Instrument | Receive Variable/Pay Fixed | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 3,500,000 | 3,500,000 | ||||||
Not Designated as Hedging Instrument | Credit Default Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 70,000,000 | 70,000,000 | 70,000,000 | |||||
Receive Variable/Pay Fixed | Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 129,500,000 | 150,000,000 | 129,500,000 | 150,000,000 | $ 126,000,000 | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 |
Notional Amount Of Derivatives Terminations | 0 | $ 0 | 24,000,000 | $ 0 | ||||
Total Amount | ||||||||
Derivative | ||||||||
Cash Collateral from Counterparties | 34,000,000 | 34,000,000 | ||||||
Credit Exposure | ||||||||
Derivative | ||||||||
Derivative Assets | $ 100,000 | $ 100,000 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | $ 339.8 | $ 3.4 | $ 16.1 | $ 166.4 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 117.7 | 25.1 | 443.7 | (132.2) |
Reclassification from Accumulated Other Comprehensive Income or Loss | (6.8) | (6.5) | (9.1) | (12.2) |
Net Other Comprehensive Income (Loss) | 110.9 | 18.6 | 434.6 | (144.4) |
Balance at End of Period | 450.7 | 22 | 450.7 | 22 |
Net Unrealized Gain on Securities | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | 661.1 | 112.1 | 204.3 | 290.3 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 143 | 47 | 588.9 | (137.6) |
Reclassification from Accumulated Other Comprehensive Income or Loss | (0.9) | (0.5) | 10 | 5.9 |
Net Other Comprehensive Income (Loss) | 142.1 | 46.5 | 598.9 | (131.7) |
Balance at End of Period | 803.2 | 158.6 | 803.2 | 158.6 |
Net Gain on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | 343.6 | 391.7 | 378 | 391 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 0.1 | 21.3 | (16) | 37.9 |
Reclassification from Accumulated Other Comprehensive Income or Loss | (8.5) | (7.9) | (26.8) | (23.8) |
Net Other Comprehensive Income (Loss) | (8.4) | 13.4 | (42.8) | 14.1 |
Balance at End of Period | 335.2 | 405.1 | 335.2 | 405.1 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | (279.4) | (102.5) | (173.6) | (113.4) |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (25.8) | (44.1) | (131.6) | (33.2) |
Reclassification from Accumulated Other Comprehensive Income or Loss | 0 | 0 | 0 | 0 |
Net Other Comprehensive Income (Loss) | (25.8) | (44.1) | (131.6) | (33.2) |
Balance at End of Period | (305.2) | (146.6) | (305.2) | (146.6) |
Unrecognized Pension and Postretirement Benefit Costs | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | (385.5) | (397.9) | (392.6) | (401.5) |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 0.4 | 0.9 | 2.4 | 0.7 |
Reclassification from Accumulated Other Comprehensive Income or Loss | 2.6 | 1.9 | 7.7 | 5.7 |
Net Other Comprehensive Income (Loss) | 3 | 2.8 | 10.1 | 6.4 |
Balance at End of Period | $ (382.5) | $ (395.1) | $ (382.5) | $ (395.1) |
Schedule of Components of Unrea
Schedule of Components of Unrealized Gain (Loss) on Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Change in Components of Net Unrealized Gain on Securities | ||||
Change in Net Unrealized Gain on Securities | $ 277.2 | $ (168.5) | $ 1,999.2 | $ (1,085.4) |
Fixed Maturity Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 6,299.5 | 4,901.2 | 3,695.7 | 6,261.5 |
Change in Net Unrealized Gain on Securities | 390.9 | (237.8) | 2,994.7 | (1,598.1) |
End of Period Balance | 6,690.4 | 4,663.4 | 6,690.4 | 4,663.4 |
Other Investments | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (21.3) | (14.8) | (33.7) | 13.9 |
Change in Net Unrealized Gain on Securities | 0.2 | (20.3) | 12.6 | (49) |
End of Period Balance | (21.1) | (35.1) | (21.1) | (35.1) |
Deferred Acquisition Costs | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (52.5) | (41.8) | (29.4) | (50.8) |
Change in Net Unrealized Gain on Securities | (3.6) | 1.8 | (26.7) | 10.8 |
End of Period Balance | (56.1) | (40) | (56.1) | (40) |
Reserve for Future Policy and Contract Benefits | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (5,578.6) | (4,981.6) | (3,578.4) | (6,150.3) |
Change in Net Unrealized Gain on Securities | (196.9) | 331.9 | (2,197.1) | 1,500.6 |
End of Period Balance | (5,775.5) | (4,649.7) | (5,775.5) | (4,649.7) |
Reinsurance Recoverable | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 366 | 312.9 | 263.2 | 365 |
Change in Net Unrealized Gain on Securities | 13.7 | (4.8) | 116.5 | (56.9) |
End of Period Balance | 379.7 | 308.1 | 379.7 | 308.1 |
Income Tax | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (352) | (63.8) | (113.1) | (149) |
Change in Net Unrealized Gain on Securities | (62.2) | (24.3) | (301.1) | 60.9 |
End of Period Balance | (414.2) | (88.1) | (414.2) | (88.1) |
Net Unrealized Gain on Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 661.1 | 112.1 | 204.3 | 290.3 |
Change in Net Unrealized Gain on Securities | 142.1 | 46.5 | 598.9 | (131.7) |
End of Period Balance | $ 803.2 | $ 158.6 | $ 803.2 | $ 158.6 |
Schedule of Reclassifications O
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain (Loss), Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | $ 11 | $ (17.2) | $ 26.3 | $ (19.1) |
Other-Than-Temporary Impairment Loss | 0 | (9.4) | (30.5) | (22) |
Net Investment Income | 611.4 | 612.1 | 1,841.1 | 1,844.8 |
Interest and Debt Expense | (45.2) | (38.1) | (126.2) | (113.9) |
Other Expenses | (205.5) | (200.1) | (618.9) | (603.6) |
Income Before Income Tax | 332.1 | 298.9 | 976.5 | 921.7 |
Total Income Tax | 96.1 | 95.1 | 293.1 | 280.7 |
Net Income | 236 | 203.8 | 683.4 | 641 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gain on Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain (Loss), Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 1.1 | 10.2 | 14.8 | 12.4 |
Other-Than-Temporary Impairment Loss | 0 | (9.4) | (30.5) | (22) |
Income Before Income Tax | 1.1 | 0.8 | (15.7) | (9.6) |
Total Income Tax | 0.2 | 0.3 | (5.7) | (3.7) |
Net Income | 0.9 | 0.5 | (10) | (5.9) |
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Income Before Income Tax | 13 | 12.1 | 41.1 | 36.2 |
Total Income Tax | 4.5 | 4.2 | 14.3 | 12.4 |
Net Income | 8.5 | 7.9 | 26.8 | 23.8 |
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Cash Flow Hedges | Interest Rate Swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain (Loss), Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0 | 0.3 | 3.2 | 0.6 |
Net Investment Income | 13.8 | 12.8 | 40.6 | 38.3 |
Interest and Debt Expense | (0.5) | (0.5) | (1.4) | (1.4) |
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Cash Flow Hedges | Foreign Exchange Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain (Loss), Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0 | (0.2) | (0.5) | 0 |
Net Investment Income | (0.3) | (0.3) | (0.8) | (1.3) |
Reclassification out of Accumulated Other Comprehensive Income | Net Actuarial Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other Expenses | (4.1) | (3) | (12.2) | (8.9) |
Reclassification out of Accumulated Other Comprehensive Income | Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other Expenses | 0 | 0 | 0.2 | 0.1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrecognized Pension and Postretirement Benefit Costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Income Before Income Tax | (4.1) | (3) | (12) | (8.8) |
Total Income Tax | (1.5) | (1.1) | (4.3) | (3.1) |
Net Income | $ (2.6) | $ (1.9) | $ (7.7) | $ (5.7) |
Premium Income by Major Line of
Premium Income by Major Line of Business within Each Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information | ||||
Premium Income | $ 2,089.4 | $ 2,020.8 | $ 6,258.5 | $ 6,044.6 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,089.4 | 2,020.8 | 6,258.5 | 6,044.6 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,315 | 1,241.8 | 3,915.7 | 3,708.4 |
Operating Segments | Unum US | Group Long term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 428.1 | 414.3 | 1,291.6 | 1,229 |
Operating Segments | Unum US | Group Short term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 155.5 | 153.2 | 469.2 | 452.5 |
Operating Segments | Unum US | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 353.4 | 336.5 | 1,053.6 | 1,007.5 |
Operating Segments | Unum US | Accidental Death Dismemberment | ||||
Segment Reporting Information | ||||
Premium Income | 35.3 | 32.1 | 104.8 | 98 |
Operating Segments | Unum US | Individual Disability | ||||
Segment Reporting Information | ||||
Premium Income | 125.6 | 119.6 | 374.4 | 355.9 |
Operating Segments | Unum US | Voluntary Benefits | ||||
Segment Reporting Information | ||||
Premium Income | 197.1 | 186.1 | 602.1 | 565.5 |
Operating Segments | Unum US | Dental and Vision [Member] | ||||
Segment Reporting Information | ||||
Premium Income | 20 | 0 | 20 | 0 |
Operating Segments | Unum UK | ||||
Segment Reporting Information | ||||
Premium Income | 127.3 | 144.6 | 407.4 | 425.8 |
Operating Segments | Unum UK | Group Long term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 85.5 | 100.6 | 274.1 | 296.5 |
Operating Segments | Unum UK | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 24.9 | 29.7 | 80.9 | 90.6 |
Operating Segments | Unum UK | Supplemental Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 16.9 | 14.3 | 52.4 | 38.7 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 354.1 | 333.1 | 1,056.7 | 1,001.2 |
Operating Segments | Colonial Life | Accident, Sickness, and Disability Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 207.7 | 196.5 | 619.2 | 591.1 |
Operating Segments | Colonial Life | Life Insurance Product Line | ||||
Segment Reporting Information | ||||
Premium Income | 68 | 62.5 | 203.4 | 188.1 |
Operating Segments | Colonial Life | Cancer and Critical Illness Colonial | ||||
Segment Reporting Information | ||||
Premium Income | 78.4 | 74.1 | 234.1 | 222 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 293 | 301.3 | 878.7 | 909.2 |
Operating Segments | Closed Block | Individual Disability Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 129.9 | 142.2 | 394 | 433 |
Operating Segments | Closed Block | Long-term Care | ||||
Segment Reporting Information | ||||
Premium Income | 161.4 | 158.6 | 482 | 475 |
Operating Segments | Closed Block | Other Insurance Product Line | ||||
Segment Reporting Information | ||||
Premium Income | $ 1.7 | $ 0.5 | $ 2.7 | $ 1.2 |
Selected Operating Statement Da
Selected Operating Statement Data by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information | ||||
Premium Income | $ 2,089.4 | $ 2,020.8 | $ 6,258.5 | $ 6,044.6 |
Net Investment Income | 611.4 | 612.1 | 1,841.1 | 1,844.8 |
Other Income | 51.5 | 51.5 | 154.6 | 160.6 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,089.4 | 2,020.8 | 6,258.5 | 6,044.6 |
Net Investment Income | 611.4 | 612.1 | 1,841.1 | 1,844.8 |
Other Income | 51.5 | 51.5 | 154.6 | 160.6 |
Operating Revenue | 2,752.3 | 2,684.4 | 8,254.2 | 8,050 |
Operating Income (Loss) | 325.2 | 328.5 | 992.9 | 971.7 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,315 | 1,241.8 | 3,915.7 | 3,708.4 |
Net Investment Income | 207.3 | 214.3 | 622.4 | 645 |
Other Income | 28.7 | 28.1 | 85.6 | 90.4 |
Operating Revenue | 1,551 | 1,484.2 | 4,623.7 | 4,443.8 |
Operating Income (Loss) | 231 | 218.7 | 674.1 | 635.8 |
Operating Segments | Unum UK | ||||
Segment Reporting Information | ||||
Premium Income | 127.3 | 144.6 | 407.4 | 425.8 |
Net Investment Income | 28.5 | 28 | 89.3 | 90.1 |
Other Income | 0 | 0 | 0.2 | 0 |
Operating Revenue | 155.8 | 172.6 | 496.9 | 515.9 |
Operating Income (Loss) | 28.2 | 32.7 | 98.7 | 103.6 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 354.1 | 333.1 | 1,056.7 | 1,001.2 |
Net Investment Income | 36.1 | 35.9 | 105.7 | 109.8 |
Other Income | 0.4 | 0.1 | 1 | 0.1 |
Operating Revenue | 390.6 | 369.1 | 1,163.4 | 1,111.1 |
Operating Income (Loss) | 79 | 76.3 | 234.3 | 231.5 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 293 | 301.3 | 878.7 | 909.2 |
Net Investment Income | 334.1 | 327.5 | 1,008.6 | 979.6 |
Other Income | 21.5 | 21.5 | 65.3 | 67.5 |
Operating Revenue | 648.6 | 650.3 | 1,952.6 | 1,956.3 |
Operating Income (Loss) | 28.6 | 27.7 | 94.9 | 91 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information | ||||
Premium Income | 0 | 0 | 0 | 0 |
Net Investment Income | 5.4 | 6.4 | 15.1 | 20.3 |
Other Income | 0.9 | 1.8 | 2.5 | 2.6 |
Operating Revenue | 6.3 | 8.2 | 17.6 | 22.9 |
Operating Income (Loss) | $ (41.6) | $ (26.9) | $ (109.1) | $ (90.2) |
Assets by Segment (Detail)
Assets by Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information | ||
Assets | $ 63,905.1 | $ 60,563.6 |
Operating Segments | ||
Segment Reporting Information | ||
Assets | 63,905.1 | 60,563.6 |
Operating Segments | Unum US | ||
Segment Reporting Information | ||
Assets | 18,465.8 | 18,242.4 |
Operating Segments | Unum UK | ||
Segment Reporting Information | ||
Assets | 3,396 | 3,432.4 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Assets | 3,940.5 | 3,776.8 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Assets | 34,821.9 | 33,000.9 |
Operating Segments | Corporate and Other | ||
Segment Reporting Information | ||
Assets | $ 3,280.9 | $ 2,111.1 |
Reconciliation of Operating Rev
Reconciliation of Operating Revenue and Operating Income by Segment to Revenue and Income Before Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Revenue Reconciling Item | ||||
Total Revenue | $ 2,763.3 | $ 2,657.8 | $ 8,250 | $ 8,008.9 |
Net Realized Investment Gain (Loss) | 11 | (26.6) | (4.2) | (41.1) |
Income Before Income Tax | 332.1 | 298.9 | 976.5 | 921.7 |
Net Realized Investment Gain (Loss) | 11 | (26.6) | (4.2) | (41.1) |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total Revenue | 2,763.3 | 2,657.8 | 8,250 | 8,008.9 |
Net Realized Investment Gain (Loss) | 11 | (26.6) | (4.2) | (41.1) |
Operating Revenue | 2,752.3 | 2,684.4 | 8,254.2 | 8,050 |
Income Before Income Tax | 332.1 | 298.9 | 976.5 | 921.7 |
Net Realized Investment Gain (Loss) | 11 | (26.6) | (4.2) | (41.1) |
Non-operating Retirement-related Loss | (4.1) | (3) | (12.2) | (8.9) |
Operating Income | $ 325.2 | $ 328.5 | $ 992.9 | $ 971.7 |
Segment Information Segments -
Segment Information Segments - Additional Information (Detail) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)IntegerRate | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | Rate | 100.00% | |
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 10 | |
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 129.9 | |
Total Acquiree Assets Purchased | 93 | |
Total Acquiree Liabilities Purchased | 56 | |
Goodwill | $ 336.8 | $ 230.9 |
Number of Operating Segments | Integer | 3 | |
Payable due 18 Months After Acquisition | ||
Business Acquisition [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 5 | |
Payable due 24 Months After Acquisition | ||
Business Acquisition [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | 5 | |
Unum US and Colonial | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 111 | |
Unum US | ||
Business Acquisition [Line Items] | ||
Percent of Goodwill Allocated to a Business Segment | Rate | 75.00% | |
Colonial Life | ||
Business Acquisition [Line Items] | ||
Percent of Goodwill Allocated to a Business Segment | Rate | 25.00% |
Employee Benefit Plans Net Peri
Employee Benefit Plans Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. Plans | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | $ 1.7 | $ 1 | $ 5.2 | $ 2.9 |
Interest Cost | 21.3 | 20.5 | 63.9 | 61.6 |
Expected Return on Plan Assets | (25.7) | (27.3) | (77.1) | (81.7) |
Amortization of Net Actuarial Loss | 4 | 3 | 12.1 | 8.7 |
Amortization of Prior Service Credit | (0.1) | 0 | ||
Plan Amendment | 0 | 0 | ||
Net Periodic Benefit Cost | 1.3 | (2.8) | 4 | (8.5) |
U.K. Plans | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | 0 | 0 | 0 | 0 |
Interest Cost | 1.7 | 2 | 5.4 | 5.9 |
Expected Return on Plan Assets | (2.5) | (3.1) | (7.9) | (9.3) |
Amortization of Net Actuarial Loss | 0.1 | 0 | 0.1 | 0.2 |
Amortization of Prior Service Credit | 0 | 0 | ||
Plan Amendment | 0 | 0 | ||
Net Periodic Benefit Cost | (0.7) | (1.1) | (2.4) | (3.2) |
OPEB Plan | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | 0 | 0 | 0 | 0 |
Interest Cost | 1.8 | 1.7 | 5.4 | 5.3 |
Expected Return on Plan Assets | (0.2) | (0.1) | (0.5) | (0.4) |
Amortization of Net Actuarial Loss | 0 | 0 | 0 | 0 |
Amortization of Prior Service Credit | (0.1) | (0.1) | ||
Plan Amendment | 0.9 | 0 | ||
Net Periodic Benefit Cost | $ 1.6 | $ 1.6 | $ 5.7 | $ 4.8 |
Net Income Per Common Share (De
Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator | ||||
Net Income | $ 236 | $ 203.8 | $ 683.4 | $ 641 |
Denominator (000s) | ||||
Weighted Average Common Shares - Basic | 233,752,000 | 245,400,000 | 236,744,300 | 248,372,900 |
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 461,500 | 924,400 | 399,500 | 855,200 |
Weighted Average Common Shares - Assuming Dilution | 234,213,500 | 246,324,400 | 237,143,800 | 249,228,100 |
Net Income Per Common Share | ||||
Basic | $ 1.01 | $ 0.83 | $ 2.89 | $ 2.58 |
Assuming Dilution | $ 1.01 | $ 0.83 | $ 2.88 | $ 2.57 |
Stockholders' Equity and Earn63
Stockholders' Equity and Earnings Per Common Share Treasury Stock Transactions (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Equity, Class of Treasury Stock | ||||
Number of Treasury Shares Repurchased | 2.9 | 3.2 | 9.4 | 9.4 |
Cost of Shares Repurchased | $ 100.2 | $ 115 | $ 300.3 | $ 326.2 |
Commission Paid on Common Stock Repurchased | 0.1 | 0.2 | $ 0.1 | |
Repurchase Program Authorized in May 2016 | ||||
Equity, Class of Treasury Stock | ||||
Authorized Stock Repurchases | 750 | 750 | ||
Remaining Authorized Share Repurchases | 598.6 | 598.6 | ||
Repurchase Program Authorized in May 2015 | ||||
Equity, Class of Treasury Stock | ||||
Authorized Stock Repurchases | $ 750 | $ 750 |
Stockholders' Equity and Earn64
Stockholders' Equity and Earnings Per Common Share - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stockholders Equity and Earnings Per Common Share Additional Information [Abstract] | ||||
Exercise Price Floor on Outstanding Stock Options | $ 11.37 | |||
Exercise Price Ceiling on Outstanding Stock Options | 26.29 | |||
Outstanding Restricted Stock Unit Grant Prices Lower Limit | 27.85 | |||
Outstanding Restricted Stock Unit Grant Prices Upper Limit | 36.36 | |||
Outstanding Performance Share Unit Awards Grant Price Range Lower Limit | 27.85 | |||
Outstanding Performance Share Unit Awards Grant Price Range Upper Limit | $ 34.08 | |||
Number of Antidilutive Securities Excluded from Computation of Earnings Per Share | 500,000 | 100,000 | 500,000 | 300,000 |
Authorized Shares of Preferred Stock | 25,000,000 | 25,000,000 | ||
Par Value Per Share of Preferred Stock | $ 0.1 | $ 0.1 | ||
Issued Shares of Preferred Stock | 0 | 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)Rate | |
Debt Narrative Detail Information | |
Proceeds from Issuance of Debt | $ 600 |
Line of Credit Facility, Maximum Borrowing Capacity | 400 |
Letters of Credit Outstanding, Amount | 2.1 |
Amount Outsanding on Credit Facility | 0 |
Northwind Holdings LLC | |
Debt Narrative Detail Information | |
Principal Payments on Long-term Debt | 49 |
Notes Issued in 2009 | |
Debt Narrative Detail Information | |
Long-term Debt, Current Maturities | $ 350 |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 7.125% |
Notes Payable due 2021 | |
Debt Narrative Detail Information | |
Proceeds from Issuance of Debt | $ 350 |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 3.00% |
Notes Payable due 2042 | |
Debt Narrative Detail Information | |
Proceeds from Issuance of Debt | $ 250 |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 5.75% |
Notes Issued in 2012 | |
Debt Narrative Detail Information | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | 5.75% |
Long-term Debt, Excluding Current Maturities | $ 250 |
Other Income Tax - Additional I
Other Income Tax - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 0.6 | |
Operating Loss Carryforwards | 1 | |
Deferred Tax Assets, Valuation Allowance | $ 1.3 | |
2020 UK Tax Rate | 17.00% | |
2020 UK Tax Rate Prior to 2016 Enactment | 18.00% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 4.5 | |
Reduction in Reserve for Uncertain Tax Positions | $ 19.3 | |
Reduction in Federal Income Taxes | $ 5.8 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards | 156.4 | |
Deferred Tax Assets, Operating Loss Carryforwards | 16 | |
Operating Loss Carryforwards, Valuation Allowance | $ 14.1 | |
Maximum | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2035 | |
Minimum | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2020 |