Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-11294 | |
Entity Registrant Name | Unum Group | |
Entity Central Index Key | 0000005513 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 62-1598430 | |
Entity Address, Address Line One | 1 Fountain Square | |
Entity Address, City or Town | Chattanooga, | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37402 | |
City Area Code | 423 | |
Local Phone Number | 294-1011 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 201,094,534 | |
NEW YORK STOCK EXCHANGE, INC. | Common Class A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.10 par value | |
Trading Symbol | UNM | |
Security Exchange Name | NYSE | |
NEW YORK STOCK EXCHANGE, INC. | 6.250% Junior Subordinated Notes due 2058 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.250% Junior Subordinated Notes due 2058 | |
Trading Symbol | UNMA | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments | ||
Fixed Maturity Securities - at fair value (amortized cost of $37,669.7; $37,386.7; allowance for credit losses of $4.1; $—) | $ 39,946 | $ 43,336 |
Mortgage Loans (net of allowance for credit losses of $7.9; $8.3) | 2,529.5 | 2,560.4 |
Policy Loans | 3,573.5 | 3,662.9 |
Other Long-term Investments | 1,280.4 | 1,203 |
Short-term Investments | 1,295.5 | 1,388 |
Total Investments | 48,624.9 | 52,150.3 |
Other Assets | ||
Cash and Bank Deposits | 106.6 | 75 |
Accounts and Premiums Receivable (net of allowance for credit losses of $35.0; $34.2) | 1,571.6 | 1,519.9 |
Reinsurance Recoverable (net of allowance for credit losses of $2.3; $2.3) | 10,640.3 | 10,919.3 |
Accrued Investment Income | 658.5 | 602.7 |
Deferred Acquisition Costs | 2,229.2 | 2,207.9 |
Goodwill | 350.8 | 352.2 |
Property and Equipment | 454.9 | 462.7 |
Other Assets | 1,834.9 | 1,825.6 |
Total Assets | 66,471.7 | 70,115.6 |
Liabilities | ||
Policy and Contract Benefits | 1,874.2 | 1,907.7 |
Reserves for Future Policy and Contract Benefits | 45,258 | 48,007.5 |
Unearned Premiums | 431.9 | 347.5 |
Other Policyholders' Funds | 1,816.9 | 1,790.9 |
Income Tax Payable | 227.2 | 159.1 |
Deferred Income Tax | 202.8 | 458.4 |
Long-term Debt | 3,442.9 | 3,442.2 |
Other Liabilities | 2,594.7 | 2,585.9 |
Total Liabilities | 55,848.6 | 58,699.2 |
Commitments and Contingent Liabilities - Note 11 | ||
Stockholders' Equity | ||
Common Stock, $0.10 par; authorized: 725,000,000 shares; issued: 308,030,461 and 307,334,853 shares | 30.8 | 30.7 |
Additional Paid-in Capital | 2,395.8 | 2,408.1 |
Accumulated Other Comprehensive Income (Loss) | (580.1) | 354.1 |
Retained Earnings | 12,043.8 | 11,853.2 |
Treasury Stock - at cost: 106,163,793 and 104,820,670 shares | (3,267.2) | (3,229.7) |
Total Stockholders' Equity | 10,623.1 | 11,416.4 |
Total Liabilities and Stockholders' Equity | $ 66,471.7 | $ 70,115.6 |
Treasury Stock, Shares at Cost | 106,163,793 | 104,820,670 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments | ||
Amortized Cost of Fixed Maturity Securities | $ 37,669.7 | $ 37,386.7 |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 4.1 | 0 |
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 7.9 | 8.3 |
Other Assets | ||
Accounts Receivable, after Allowance for Credit Loss | 35 | 34.2 |
Reinsurance Recoverable, Allowance for Credit Loss | $ 2.3 | $ 2.3 |
Stockholders' Equity | ||
Common Stock, Par Value (in dollars per share) | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 725,000,000 | 725,000,000 |
Common Stock, Shares Issued | 308,030,461 | 307,334,853 |
Treasury Stock, Shares at Cost | 106,163,793 | 104,820,670 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Premium Income | $ 2,403.3 | $ 2,378.3 |
Net Investment Income | 527.2 | 548.7 |
Net Investment Gain (Loss) | (13.8) | 84.6 |
Other Income | 65.8 | 60.4 |
Total Revenue | 2,982.5 | 3,072 |
Benefits and Expenses | ||
Benefits and Change in Reserves for Future Benefits | 1,843.9 | 2,051.2 |
Commissions | 273.2 | 259.9 |
Interest and Debt Expense | 46.9 | 44.4 |
Deferral of Acquisition Costs | (141.8) | (130.6) |
Amortization of Deferred Acquisition Costs | 156.1 | 166.4 |
Compensation Expense | 248.3 | 236.9 |
Other Expenses | 243.8 | 245 |
Total Benefits and Expenses | 2,670.4 | 2,873.2 |
Income Before Income Tax | 312.1 | 198.8 |
Income Tax Expense (Benefit) | ||
Current | 83.3 | 67.5 |
Deferred | (24.7) | (21.7) |
Total Income Tax Expense | 58.6 | 45.8 |
Net Income | $ 253.5 | $ 153 |
Net Income Per Common Share | ||
Basic | $ 1.25 | $ 0.75 |
Assuming Dilution | $ 1.25 | $ 0.75 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 253.5 | $ 153 |
Other Comprehensive Income (Loss) | ||
Change in Net Unrealized Gain on Securities Before Adjustment (net of tax benefit of $775.1; $434.2) | (2,893.8) | (1,646) |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance (net of tax expense of $536.9; $331.8) | 1,997.7 | 1,256.5 |
Change in Net Gain on Hedges (net of tax benefit of $2.9; $5.4) | (10.4) | (20.7) |
Change in Foreign Currency Translation Adjustment (net of tax expense of $0.8; $1.8) | (31.9) | 7.3 |
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense of $0.9; $1.2) | (4.2) | (3.8) |
Total Other Comprehensive Loss | (934.2) | (399.1) |
Comprehensive Loss | $ (680.7) | $ (246.1) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Change in Net Unrealized Gain on Securities Before Adjustment, Tax Benefit | $ (775.1) | $ (434.2) |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance, Tax Expense | 536.9 | 331.8 |
Change in Net Gain on Hedges, Tax Benefit | (2.9) | (5.4) |
Change in Foreign Currency Translation Adjustment, Tax Expense | 0.8 | 1.8 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0.9 | $ 1.2 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Balance at Beginning of Year at Dec. 31, 2020 | $ 30.7 | $ 2,376.2 | $ 374.2 | $ 11,269.6 | $ (3,179.7) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Common Stock Activity | 0 | 4.6 | ||||
Other Comprehensive Loss | $ (399.1) | (399.1) | ||||
Net Income | 153 | 153 | ||||
Dividends to Stockholders (per common share: $0.300; $0.285) | (59.4) | |||||
Balance at End of Year at Mar. 31, 2021 | 10,570.1 | 30.7 | 2,380.8 | (24.9) | 11,363.2 | (3,179.7) |
Increase (Decrease) in Stockholders' Equity | ||||||
Cost of Shares Repurchased | 0 | 0 | 0 | |||
Balance at Beginning of Year at Dec. 31, 2021 | 11,416.4 | 30.7 | 2,408.1 | 354.1 | 11,853.2 | (3,229.7) |
Increase (Decrease) in Stockholders' Equity | ||||||
Common Stock Activity | 0.1 | 0.2 | ||||
Other Comprehensive Loss | (934.2) | (934.2) | ||||
Net Income | 253.5 | 253.5 | ||||
Dividends to Stockholders (per common share: $0.300; $0.285) | (62.9) | |||||
Balance at End of Year at Mar. 31, 2022 | 10,623.1 | $ 30.8 | 2,395.8 | $ (580.1) | $ 12,043.8 | (3,267.2) |
Increase (Decrease) in Stockholders' Equity | ||||||
Cost of Shares Repurchased | $ (37.5) | $ (12.5) | $ (37.5) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends to Stockholders (per common share: $0.300; $0.285) | $ 0.300 | $ 0.285 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net Income | $ 253.5 | $ 153 |
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities | ||
Change in Receivables | 239.2 | 4.5 |
Change in Deferred Acquisition Costs | 14.3 | 35.8 |
Change in Insurance Reserves and Liabilities | (38.3) | 259.3 |
Change in Income Taxes | 58.3 | 44.9 |
Change in Other Accrued Liabilities | (127.1) | (72.4) |
Non-cash Components of Net Investment Income | (111.3) | (108) |
Net Investment (Gain) Loss | 13.8 | (84.6) |
Depreciation | 30 | 29.3 |
Cash Related to Reinsurance Agreement | 0 | (456.8) |
Amortization of the Cost of Reinsurance | (16.7) | (20) |
Other, Net | (23.3) | (18.8) |
Net Cash Provided (Used) by Operating Activities | 325.8 | (193.8) |
Cash Flows from Investing Activities | ||
Proceeds from Sales of Fixed Maturity Securities | 171.9 | 157.4 |
Proceeds from Maturities of Fixed Maturity Securities | 427.1 | 856.3 |
Proceeds from Sales and Maturities of Other Investments | 102 | 68.2 |
Purchases of Fixed Maturity Securities | (931.9) | (1,185) |
Purchases of Other Investments | (128.6) | (62.5) |
Net Sales and Maturities of Short-term Investments | 190.2 | 769 |
Net Increase (Decrease) in Payables for Collateral on Investments | (1.3) | 16.1 |
Net Purchases of Property and Equipment | (21.8) | (30.9) |
Net Cash Provided (Used) by Investing Activities | (192.4) | 588.6 |
Cash Flows from Financing Activities | ||
Issuance of Common Stock | 0.6 | 0.8 |
Repurchase of Common Stock | (50) | 0 |
Dividends Paid to Stockholders | (62) | (58.4) |
Proceeds from Policyholder Account Deposits | 31.2 | 33.9 |
Payments for Policyholder Account Withdrawals | (21.6) | (24.2) |
Cash Received Related to Active Life Volatility Cover Agreement | 0 | 17.9 |
Net Cash Used by Financing Activities | (101.8) | (30) |
Net Increase in Cash and Bank Deposits | 31.6 | 364.8 |
Cash and Bank Deposits at Beginning of Year | 75 | 197 |
Cash and Bank Deposits at End of Period | $ 106.6 | $ 561.8 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting policies and error corrections [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, 2021. In 2021, we changed the presentation of policyholder account deposits and withdrawals related to our universal life products to present the activity on a gross basis within the financing activities section of the Consolidated Statements of Cash Flows. As a result of this change, we determined that certain historical adjustments related to the cost of insurance, policy administration expenses and surrender charges for these products were incorrectly presented as a component of net cash used by financing activities rather than as a component of net cash provided by operating activities. We determined that the impact of the error to the previously issued Consolidated Statements of Cash Flows was not material and we have corrected the error. The impact of this correction for the three months ended March 31, 2021 was a decrease to the change in insurance reserves and liabilities within net cash used by operating activities of $31.8 million, with a corresponding decrease to net cash used by financing activities. Within net cash used by financing activities, the other, net line item was adjusted as a result of the error correction to separately present proceeds from policyholder account deposits and payments for policyholder account withdrawals. The error had no impact on our financial position or our results of operations. 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, particularly when considering the risks and uncertainties associated with the coronavirus disease 2019 (COVID-19) and the impacts it may have on our financial position, results of operations, liquidity and capital resources, and overall business operations. |
Accounting Developments
Accounting Developments | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Developments [Abstract] | |
Accounting Developments | Accounting Developments Accounting Updates Adopted in 2022: Standard Description Date of Adoption Effect on Financial Statements Accounting Standards Update (ASU) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity The amendments in this update simplified the accounting for convertible instruments by removing certain separation models in the guidance related to convertible instruments and expanded related disclosure requirements. The amendments also revised the requirements for a contract or embedded derivative that is potentially settled in an entity's own stock to be classified as equity and also amended certain guidance related to the computations of earnings per share for convertible instruments and contracts in an entity's own stock. This guidance was applied in the period of adoption. January 1, 2022 The adoption of this update did not have an effect on our financial position or results of operations, and did not expand our disclosures. Accounting Updates Outstanding: Standard Description Date of Adoption Effect on Financial Statements ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and related amendments The amendments in this update provide optional guidance, for a limited period of time, to ease the potential burden in accounting for and recognizing the effects of reference rate reform on financial reporting. The guidance allows for various practical expedients and exceptions when applying GAAP to contracts, hedging relationships, and other transactions affected either by discontinued rates as a direct result of reference rate reform or a market-wide change in interest rates used for discounting, margining or contract price alignment, if certain criteria are met. Specifically, the guidance provides certain practical expedients for contract modifications, fair value hedges, and cash flow hedges, and also provides certain exceptions related to changes in the critical terms of a hedging relationship. The guidance also allows for a one-time election to sell or transfer debt securities that were both classified as held-to-maturity prior to January 1, 2020 and reference a rate affected by the reform. Adoption is permitted as of the beginning of the interim period that includes March 12, 2020 (the issuance date of the update), or any date thereafter, through December 31, 2022, at which point the guidance will sunset. We do not anticipate needing to adopt this guidance, but we will continue to monitor our contracts and hedging relationships throughout the adoption period. Standard Description Date of Adoption Effect on Financial Statements ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments This update significantly amends the accounting and disclosure requirements for long-duration insurance contracts. These changes include a requirement to review, and if necessary, update cash flow assumptions used to measure the liability for future policy benefits for traditional and limited-payment contracts at least annually, with changes recognized in earnings. In addition, an entity will be required to update the discount rate assumption at each reporting date using a yield that is reflective of an upper-medium grade fixed-income instrument, with changes recognized in other comprehensive income. These changes result in the elimination of the provision for risk of adverse deviation and premium deficiency (or loss recognition) testing. The update also requires that an entity measure all market risk benefits associated with deposit contracts at fair value, with changes recognized in earnings except for the portion attributable to a change in the instrument-specific credit risk, which is to be recognized in other comprehensive income. This update also simplifies the amortization of deferred acquisition costs by requiring amortization on a constant level basis over the expected term of the related contracts. Deferred acquisition costs are required to be written off for unexpected contract terminations but are no longer subject to an impairment test. Significant additional disclosures will also be required, which include disaggregated rollforwards of certain liability balances and the disclosure of qualitative and quantitative information about expected cash flows, estimates, and assumptions. The application of this guidance will vary based upon the specific requirements of the update but will generally result in either a modified retrospective or full retrospective approach with changes applied as of the beginning of the earliest period presented. Early adoption is permitted. January 1, 2023 We will adopt this update effective January 1, 2023 using the modified retrospective approach with changes applied as of the beginning of the earliest period presented or January 1, 2021, also referred to as the transition date. We are continuing to evaluate the effects of implementing this update. We expect that the most significant impact at the transition date will be the requirement to update the discount rate assumption to reflect an upper-medium grade fixed-income instrument, which will be generally equivalent to a single-A interest rate matched to the duration of our insurance liabilities and will result in a decrease to accumulated other comprehensive income within our total stockholders’ equity balance of approximately $6.5 billion to $7 billion. After the transition date, we will be required to update the discount rate each subsequent reporting period with changes recorded in other comprehensive income (OCI) and expect that this could have a material impact on OCI. We also expect that the adoption will have a material impact on our results of operations and will significantly expand our disclosures. We do not have products with market risk benefits. Standard Description Date of Adoption Effect on Financial Statements ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The amendments in this update eliminate the troubled debt restructuring recognition and measurement guidance and instead require that an entity evaluate whether the modification represents a new loan or the continuation of an existing loan. The amendments also enhance the disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. In addition, the amendments in this update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases. The amendments in this update should be applied prospectively, except for the transition method related to the recognition and measurement of troubled debt restructurings, for which an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. January 1, 2023 We do not anticipate that the adoption of this update will have an effect on our financial position or results of operations but will expand our disclosures. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended | |
Mar. 31, 2022 | ||
Fair Value Disclosures [Abstract] | ||
Fair Values of Financial Instruments | Fair Value Measurements for Financial Instruments Carried at Fair Value We report fixed maturity securities, which are classified as available-for-sale securities, derivative financial instruments, and unrestricted equity securities at fair value in our consolidated balance sheets. We report our investments in private equity partnerships at our share of the partnerships' net asset value per share or its equivalent (NAV) as a practical expedient for fair value. 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. We classify financial instruments in accordance with a fair value hierarchy consisting of three levels based on the observability of valuation inputs: • Level 1 - the highest category of the fair value hierarchy classification wherein inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 - 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. • Level 3 - 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. Valuation Methodologies of Financial Instruments Measured at Fair Value 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 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 it is a bid or market quote. 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 2022, we have applied valuation approaches and techniques on a consistent basis to similar assets and liabilities and consistent with those approaches and techniques used at year end 2021. Fixed Maturity and Equity Securities 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 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 disclosed below. 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 Method Principally the market approach Not applicable Valuation Techniques / Inputs Prices obtained from external pricing services States, Municipalities, and Political Subdivisions Valuation Method Principally the market approach Principally the market approach Valuation Techniques / Inputs Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Relevant reports issued by analysts and rating agencies Audited financial statements Foreign Governments Valuation Method Principally the market approach Principally the market approach Valuation Techniques / Inputs Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Non-binding broker quotes Call provisions Public Utilities Valuation Method Principally the market and income approaches Principally the market and income approaches Valuation Techniques / Inputs Prices obtained from external pricing services Change in benchmark reference Level 2 Level 3 Instrument Observable Inputs Unobservable Inputs Public Utilities - Continued Non-binding broker quotes Analysis of similar bonds, adjusted for comparability Benchmark yields Discount for size - illiquidity Transactional data for new issuances and secondary trades Volatility of credit Security cash flows and structures Lack of marketability Recent issuance / supply Audited financial statements 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 Mortgage/Asset-Backed Securities Valuation Method Principally the market and income approaches Principally the market approach Valuation Techniques / Inputs Prices obtained from external pricing services Analysis of similar bonds, adjusted for comparability Non-binding broker quotes Prices obtained from external pricing services Security cash flows and structures Underlying collateral Prepayment speeds/loan performance/delinquencies Relevant reports issued by analysts and rating agencies Audited financial statements All Other Corporate Bonds Valuation Method Principally the market and income approaches Principally the market and income approaches Valuation Techniques / Inputs Prices obtained from external pricing services Change in benchmark reference Non-binding broker quotes Discount for size - illiquidity Benchmark yields Volatility of credit Transactional data for new issuances and secondary trades Lack of marketability Security cash flows and structures Prices obtained from external pricing services Recent issuance / supply Security and issuer level spreads Level 2 Level 3 Instrument Observable Inputs Unobservable Inputs All Other Corporate Bonds - Continued Security creditor ratings/maturity/capital structure/optionality Public covenants Comparative bond analysis Relevant reports issued by analysts and rating agencies Audited financial statements Redeemable Preferred Stocks Valuation Method Principally the market approach Principally the market approach Valuation Techniques / Inputs Non-binding broker quotes Financial statement analysis Benchmark yields Comparative bond analysis Call provisions Relevant reports issued by analysts and rating agencies Audited financial statements Perpetual Preferred and Equity Securities Valuation Method Principally the market approach Principally the market and income approaches Valuation Techniques / Inputs Prices obtained from external pricing services Financial statement analysis 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 that vary between multiple pricing vendors by a threshold that is outside a normal market range for the asset type. 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 prices that did not change from the prior month to ensure that these prices are within our expectations. 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. 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, 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. 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. At March 31, 2022, approximately 20.7 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 remaining 79.3 percent of our fixed maturity securities were valued based on non-binding quotes or other observable and unobservable inputs, as discussed below: • 63.0 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. • 15.1 percent of our fixed maturity securities were valued based on one or more non-binding broker quotes, if validated by observable market data. 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. • 1.2 percent of our fixed maturity securities were valued based on prices of comparable securities, internal models, or pricing services or other 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. Derivatives 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. Credit risk related to the counterparty and the Company is considered in determining the fair values of these derivatives. However, since the Company has collateralization agreements in place with each counterparty which limit the Company’s exposure, any credit risk is immaterial. Therefore, the Company determined that no adjustments for credit risk were required as of March 31, 2022 or December 31, 2021. 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. We consider transactions in inactive markets to be less representative of fair value. We use all available observable inputs when measuring fair value, but when significant unobservable inputs are used, we classify these assets or liabilities as Level 3. Private Equity Partnerships Our private equity partnerships represent funds that are primarily invested in private credit, private equity, and real assets, as described below. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. There is generally not a public market for these investments. The following tables present additional information about our private equity partnerships, including commitments for additional investments which may or may not be funded: March 31, 2022 Investment Category Fair Value Redemption Term / Redemption Notice Unfunded Commitments (in millions of dollars) (in millions of dollars) Private Credit (a) $ 255.1 Not redeemable $ 127.4 36.5 Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice 11.3 Total Private Credit 291.6 138.7 Private Equity (b) 402.6 Not redeemable 277.1 21.8 Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice 45.9 Total Private Equity 424.4 323.0 Real Assets (c) 271.0 Not redeemable 299.0 58.9 Quarterly / 90 days notice — Total Real Assets 329.9 299.0 Total Partnerships $ 1,045.9 $ 760.7 December 31, 2021 Investment Category Fair Value Redemption Term / Redemption Notice Unfunded Commitments (in millions of dollars) (in millions of dollars) Private Credit (a) $ 240.6 Not redeemable $ 143.7 38.8 Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice 6.8 Total Private Credit 279.4 150.5 Private Equity (b) 365.8 Not redeemable 274.3 18.8 Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice 50.3 Total Private Equity 384.6 324.6 Real Assets (c) 256.2 Not redeemable 278.1 58.4 Quarterly / 90 days notice — Total Real Assets 314.6 278.1 Total Partnerships $ 978.6 $ 753.2 (a) Private Credit - The limited partnerships described in this category employ various investment strategies, generally providing direct lending or other forms of debt financing including first-lien, second-lien, mezzanine, and subordinated loans. The limited partnerships have credit exposure to corporates, physical assets, and/or financial assets within a variety of industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail) in North America and, to a lesser extent, outside of North America. As of March 31, 2022, the estimated remaining life of the investments that do not allow for redemptions is approximately 36 percent in the next 3 years, 52 percent during the period from 3 to 5 years, 10 percent during the period from 5 to 10 years, and 2 percent during the period from 10 to 15 years. (b) Private Equity - The limited partnerships described in this category employ various strategies generally investing in controlling or minority control equity positions directly in companies and/or assets across various industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail), primarily in private markets within North America and, to a lesser extent, outside of North America. As of March 31, 2022, the estimated remaining life of the investments that do not allow for redemptions is approximately 33 percent in the next 3 years, 16 percent during the period from 3 to 5 years, 49 percent during the period from 5 to 10 years, and 2 percent during the period from 10 to 15 years. (c) Real Assets - The limited partnerships described in this category employ various strategies, which include investing in the equity and/or debt financing of physical assets, including infrastructure (energy, power, water/wastewater, communications), transportation (including airports, ports, toll roads, aircraft, railcars) and real estate in North America, Europe, South America, and Asia. As of March 31, 2022, the estimated remaining life of the investments that do not allow for redemptions is approximately 9 percent in the next 3 years, 47 percent during period from 3 to 5 years, 39 percent during the period from 5 to 10 years, and 5 percent during the period from 10 to 15 years. We record changes in our share of net asset value of the partnerships in net investment income. We receive financial information related to our investments in partnerships and generally record investment income on a one-quarter lag in accordance with our accounting policy. The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used: March 31, 2022 Level 1 Level 2 Level 3 NAV Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 93.1 $ 444.2 $ — $ — $ 537.3 States, Municipalities, and Political Subdivisions 10.5 4,296.8 — — 4,307.3 Foreign Governments — 1,044.3 20.4 — 1,064.7 Public Utilities 530.1 5,304.8 13.7 — 5,848.6 Mortgage/Asset-Backed Securities — 509.3 49.8 — 559.1 All Other Corporate Bonds 7,637.8 19,906.7 80.7 — 27,625.2 Redeemable Preferred Stocks — 3.8 — — 3.8 Total Fixed Maturity Securities 8,271.5 31,509.9 164.6 — 39,946.0 Other Long-term Investments Derivatives Foreign Exchange Contracts — 47.3 — — 47.3 Total Derivatives — 47.3 — — 47.3 Perpetual Preferred and Equity Securities — 27.5 10.5 — 38.0 Private Equity Partnerships — — — 1,045.9 1,045.9 Total Other Long-term Investments — 74.8 10.5 1,045.9 1,131.2 Total Financial Instrument Assets Carried at Fair Value $ 8,271.5 $ 31,584.7 $ 175.1 $ 1,045.9 $ 41,077.2 Liabilities Other Liabilities Derivatives Forwards $ — $ 1.0 $ — $ — $ 1.0 Foreign Exchange Contracts — 34.4 — — 34.4 Embedded Derivative in Modified Coinsurance Arrangement — — 33.5 — 33.5 Total Derivatives — 35.4 33.5 — 68.9 Total Financial Instrument Liabilities Carried at Fair Value $ — $ 35.4 $ 33.5 $ — $ 68.9 December 31, 2021 Level 1 Level 2 Level 3 NAV Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ — $ 580.1 $ — $ — $ 580.1 States, Municipalities, and Political Subdivisions — 4,714.1 13.4 — 4,727.5 Foreign Governments — 1,125.8 20.8 — 1,146.6 Public Utilities 230.8 6,140.7 44.5 — 6,416.0 Mortgage/Asset-Backed Securities — 451.1 187.2 — 638.3 All Other Corporate Bonds 3,288.7 25,673.2 861.5 — 29,823.4 Redeemable Preferred Stocks — 4.1 — — 4.1 Total Fixed Maturity Securities 3,519.5 38,689.1 1,127.4 — 43,336.0 Other Long-term Investments Derivatives Foreign Exchange Contracts — 39.5 — — 39.5 Total Derivatives — 39.5 — — 39.5 Perpetual Preferred and Equity Securities 27.9 5.8 — 33.7 Private Equity Partnerships — — — 978.6 978.6 Total Other Long-term Investments — 67.4 5.8 978.6 1,051.8 Total Financial Instrument Assets Carried at Fair Value $ 3,519.5 $ 38,756.5 $ 1,133.2 $ 978.6 $ 44,387.8 Liabilities Other Liabilities Derivatives Foreign Exchange Contracts $ — $ 35.0 $ — $ — $ 35.0 Embedded Derivative in Modified Coinsurance Arrangement — — 30.1 — 30.1 Total Derivatives — 35.0 30.1 — 65.1 Total Financial Instrument Liabilities Carried at Fair Value $ — $ 35.0 $ 30.1 $ — $ 65.1 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 March 31, 2022 Fair Value Beginning of Year Total Realized Level 3 Transfers Fair Value End of Period Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in Earnings OCI (1) Purchases Sales Into Out of OCI Earnings (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 13.4 $ — $ — $ — $ — $ — $ (13.4) $ — $ — $ — Foreign Governments 20.8 — (0.4) — — — — 20.4 (0.4) — Public Utilities 44.5 (4.1) 2.2 — — 15.6 (44.5) 13.7 2.2 — Mortgage/Asset-Backed Securities 187.2 — (9.2) 7.3 — — (135.5) 49.8 (9.2) — All Other Corporate Bonds 861.5 — (5.7) 2.6 — 13.2 (790.9) 80.7 (5.7) — Total Fixed Maturity Securities 1,127.4 (4.1) (13.1) 9.9 — 28.8 (984.3) 164.6 (13.1) — Perpetual Preferred and Equity Securities 5.8 2.8 — 1.9 — — — 10.5 — 2.8 Embedded Derivative in Modified Coinsurance Arrangement (30.1) (3.4) — — — — — (33.5) — (3.4) (1) Other Comprehensive Income (Loss) Three Months Ended March 31, 2021 Fair Value Beginning of Year Total Realized Level 3 Transfers Fair Value End of Period Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in Earnings OCI Purchases Sales Into Out of OCI Earnings (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 15.5 $ — $ — $ — $ — $ — $ (15.5) $ — $ — $ — Foreign Governments 21.8 — (0.1) — — — — 21.7 (0.1) — Public Utilities 185.7 — (4.6) — — 36.0 (113.7) 103.4 (4.6) — Mortgage/Asset-Backed Securities 81.3 — (34.5) — (32.6) 86.1 (23.1) 77.2 (34.5) — All Other Corporate Bonds 943.1 — (13.8) — — — (430.1) 499.2 (13.8) — Total Fixed Maturity Securities 1,247.4 — (53.0) — (32.6) 122.1 (582.4) 701.5 (53.0) — Perpetual Preferred and Equity Securities 4.7 — — — — 0.5 — 5.2 — — Embedded Derivative in Modified Coinsurance Arrangement (39.8) 16.9 — — — — — (22.9) — 16.9 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. The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Unobservable inputs for fixed maturity securities are weighted by the fair value of the securities. 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. March 31, 2022 Fair Value Valuation Method Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities Public Utilities $ 13.7 Discounted Cash Flows Projected Liability Cash Flows (a) Investment Analyst Assumptions All Other Corporate Bonds - Private 17.4 Market Approach Volatility of Credit Market Convention (c) (d) 5.61% - 5.61% / 5.61% Priced at Par Value Perpetual Preferred and Equity Securities 10.5 Market Approach Market Convention (d) Priced at Cost, Owner's Equity, or Most Recent Round Embedded Derivative in Modified Coinsurance Arrangement (33.5) Discounted Cash Flows Projected Liability Cash Flows Weighted Spread of Swap Curve (e) Actuarial Assumptions 0.8% December 31, 2021 Fair Value Valuation Method Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities All Other Corporate Bonds - Private $ 111.8 Market Approach Lack of Marketability Volatility of Credit (b) (c) 0.14% - 0.73% / 0.51% 6.30% - 6.30% / 6.30% Perpetual Preferred and Equity Securities 5.8 Market Approach Market Convention (d) Priced at Cost or Owner's Equity Embedded Derivative in Modified Coinsurance Arrangement (30.1) Discounted Cash Flows Projected Liability Cash Flows Weighted Spread of Swap Curve (e) Actuarial Assumptions 0.7% (a) Represents a decision to price based on discounted expected future cash flows (b) Represents basis point adjustments to apply a discount due to the illiquidity of an investment (c) Represents basis point adjustments for credit-specific factors (d) Represents a decision to price based on par value, cost, owner's equity, or the price of the most recent capital funding round when limited data is available (e) Represents various actuarial assumptions required to derive the liability cash flows. Fair value of embedded derivative is most often driven by the change in the weighted average credit spread to the swap curve for the assets backing the hypothetical loan Other than market convention, the impact of isolated decreases in unobservable inputs will result in a higher estimated fair value, where as isolated increases in unobservable inputs will result in a lower estimated fair value. The unobservable input for market convention is not sensitive to input movements. The projected liability cash flows used in the fair value measurement of our Level 3 embedded derivative are based on expected claim payments. If claim payments increase, the projected liability cash flows will increase, resulting in a decrease in the fair value of the embedded derivative. Decreases in projected liability cash flows will result in an increase in the fair value of the embedded derivative. Fair Value Measurements for Financial Instruments Not Carried at Fair Value The methods and assumptions used to estimate fair values of financial instruments not carried at fair value are discussed as follows: Mortgage Loans: Fair value of newly originated, seasoned performing, or sub-performing but likely to continue cash flowing loans are calculated using a discounted cash flow analysis. Loans’ cash flows are modeled and appropriately discounted by a rate based on current yields and credit spreads. For sub and non-performing loans where there is some probability the loan will not continue to pay, a price based approach would be used to estimate the loan’s value in the open market utilizing current transaction information from similar loans. 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 $3,283.0 million and $3,373.7 million as of March 31, 2022 and December 31, 2021, 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. Miscellaneous Long-term Investments: Carrying amounts for tax credit partnerships equal the unamortized balance of our contractual commitments and approximate fair value. Our shares of FHLB common stock are carried at cost, which approximates fair value. 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. Federal Home Loan Bank (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. 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 of these financial instruments approximate fair value. The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: March 31, 2022 Estimated Fair Value Level 1 Level 2 Level 3 Total Carrying Value (in millions of dollars) Assets Mortgage Loans $ — $ 2,517.7 $ — $ 2,517.7 $ 2,529.5 Policy Loans — — 3,680.8 3,680.8 3,573.5 Other Long-term Investments Miscellaneous Long-term Investments — 23.3 7.5 30.8 30.8 Total Financial Instrument Assets Not Carried at Fair Value $ — $ 2,541.0 $ 3,688.3 $ 6,229.3 $ 6,133.8 Liabilities Long-term Debt $ 3,036.2 $ 499.9 $ | [1] |
[1] | Real Assets - The limited partnerships described in this category employ various strategies, which include investing in the equity and/or debt financing of physical assets, including infrastructure (energy, power, water/wastewater, communications), transportation (including airports, ports, toll roads, aircraft, railcars) and real estate in North America, Europe, South America, and Asia. As of March 31, 2022, the estimated remaining life of the investments that do not allow for redemptions is approximately 9 percent in the next 3 years, 47 percent during period from 3 to 5 years, 39 percent during the period from 5 to 10 years, and 5 percent during the period from 10 to 15 years. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 65% <= 75% 1,070.6 42.3 1,076.8 42.0 > 75% <= 85% 124.1 4.9 114.9 4.5 > 85% 12.4 0.5 22.6 0.9 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property The followin g tables present the amortized cost of our mortgage loans by year of origination and internal quality indicators at March 31, 2022 and December 31, 2021, respectively : March 31, 2022 Prior to 2018 2018 2019 2020 2021 2022 Total (in millions of dollars) Internal Mortgage Rating AA $ 3.3 $ 23.9 $ — $ — $ — $ — $ 27.2 A 489.6 78.6 28.6 17.5 81.4 7.9 703.6 BBB 722.9 273.9 330.1 162.1 270.3 26.3 1,785.6 BB 15.0 6.0 — — — — 21.0 Total Amortized Cost 1,230.8 382.4 358.7 179.6 351.7 34.2 2,537.4 Allowance for credit losses (3.6) (1.4) (1.4) (0.6) (0.8) (0.1) (7.9) Carrying Amount $ 1,227.2 $ 381.0 $ 357.3 $ 179.0 $ 350.9 $ 34.1 $ 2,529.5 Loan-to-Value Ratio (1) <=65% $ 887.9 $ 171.0 $ 80.2 $ 53.9 $ 123.9 $ 7.9 $ 1,324.8 >65<=75% 211.4 205.4 278.5 125.7 227.8 26.3 1,075.1 >75%<=85% 124.8 — — — — — 124.8 >85% 6.7 6.0 — — — — 12.7 Total Amortized Cost 1,230.8 382.4 358.7 179.6 351.7 34.2 2,537.4 Allowance for credit losses (3.6) (1.4) (1.4) (0.6) (0.8) (0.1) (7.9) Carrying Amount $ 1,227.2 $ 381.0 $ 357.3 $ 179.0 $ 350.9 $ 34.1 $ 2,529.5 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property December 31, 2021 Prior to 2017 2017 2018 2019 2020 2021 Total (in millions of dollars) Internal Mortgage Rating AA $ 3.3 $ — $ 24.0 $ — $ — $ — $ 27.3 A 414.6 68.0 71.1 28.9 17.6 110.6 710.8 BBB 561.2 227.3 283.3 331.9 163.1 242.6 1,809.4 BB 5.0 10.2 6.0 — — — 21.2 Total Amortized Cost 984.1 305.5 384.4 360.8 180.7 353.2 2,568.7 Allowance for credit losses (2.6) (1.4) (1.4) (1.4) (0.7) (0.8) (8.3) Carrying Amount $ 981.5 $ 304.1 $ 383.0 $ 359.4 $ 180.0 $ 352.4 $ 2,560.4 Loan-to-Value Ratio (1) <=65% $ 779.1 $ 146.9 $ 163.0 $ 80.7 $ 54.3 $ 124.7 $ 1,348.7 >65<=75% 115.7 115.4 215.4 280.1 126.4 228.5 1,081.5 >75%<=85% 89.3 26.3 — — — — 115.6 >85% — 16.9 6.0 — — — 22.9 Total Amortized Cost 984.1 305.5 384.4 360.8 180.7 353.2 2,568.7 Allowance for credit losses (2.6) (1.4) (1.4) (1.4) (0.7) (0.8) (8.3) Carrying Amount $ 981.5 $ 304.1 $ 383.0 $ 359.4 $ 180.0 $ 352.4 $ 2,560.4 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property The following table presents a roll-forward of allowance for expected credit losses by loan-to-value ratio for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 Beginning of Year Current Period Provisions Write-Offs Recoveries End of Period (in millions of dollars) Loan-to-Value Ratio (1) <=65% $ 2.6 $ (0.2) $ — $ — $ 2.4 >65<=75% 4.7 (0.2) — — 4.5 >75%<=85% 0.7 — — — 0.7 >85% 0.3 — — — 0.3 Total $ 8.3 $ (0.4) $ — $ — $ 7.9 Three Months Ended March 31, 2021 Beginning of Year Current Period Provisions Write-Offs Recoveries End of Period (in millions of dollars) Loan-to-Value Ratio (1) <=65% $ 3.4 $ (0.4) $ — $ — $ 3.0 >65<=75% 7.3 (1.0) — — 6.3 >75%<=85% 1.3 (0.1) — — 1.2 >85% 1.1 (0.1) — — 1.0 Total $ 13.1 $ (1.6) $ — $ — $ 11.5 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property The decrease in our estimate of expected losses during the first quarter of 2022 is primarily due to improved economic conditions and recovery from COVID-19, specifically as it relates to underlying commercial real estate values, and reflects market conditions as of March 31, 2022. There were no troubled debt restructurings during the three months ended March 31, 2022 and 2021. At March 31, 2022 and December 31, 2021, we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. We had no loan foreclosures for the three months ended March 31, 2022 and 2021. We had no impaired mortgage loans during three months ended March 31, 2022, or 2021, nor did we recognize any interest income on mortgage loans subsequent to impairment. At March 31, 2022, we had commitments of $26.5 million to fund certain commercial mortgage loans. Consistent with how we determine the estimate of current expected credit losses for our funded mortgage loans each period, we estimate expected credit losses for loans that have not been funded but we are committed to fund at the end of each period. At both March 31, 2022 and December 31, 2021, we had $0.1 million of expected credit losses related to unfunded commitments on our consolidated balance sheets. Investment Real Estate In the first quarter of 2022, we reclassified property previously held for the production of income to property held for sale. The carrying value of the property was $40.0 million and $40.9 million as of March 31, 2022 and December 31, 2021, respectively, and is primarily recorded within our Corporate segment. The estimated fair value less costs to sell is above the carrying value of the property and we expect to close the sale of the property in 2022. 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 March 31, 2022, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $240.7 million, for which we received collateral in the form of cash and securities of $73.3 million and $176.0 million, respectively. As of December 31, 2021, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $283.7 million, for which we received collateral in the form of cash and securities of $94.8 million and $198.6 million, respectively. We had no outstanding repurchase agreements at March 31, 2022 or December 31, 2021. The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows: March 31, 2022 December 31, 2021 Overnight and Continuous (in millions of dollars) Borrowings United States Government and Government Agencies and Authorities $ 0.4 $ 0.1 State, Municipalities, and Political Subdivisions 0.6 0.1 Public Utilities 4.3 3.1 All Other Corporate Bonds 68.0 91.5 Total Borrowings $ 73.3 $ 94.8 Gross Amount of Recognized Liability for Securities Lending Transactions 73.3 94.8 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. Advances received from the FHLB are used for the purchase of short-term investments or fixed maturity securities. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. The carrying value of common stock owned, collateral posted, and advances received are as follows: March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Value of FHLB Common Stock $ 23.3 $ 22.1 Advances from FHLB 178.2 160.9 Carrying Value of Collateral Posted to FHLB Fixed Maturity Securities $ 640.9 $ 786.1 Commercial Mortgage Loans 886.7 930.0 Total Carrying Value of Collateral Posted to FHLB $ 1,527.6 $ 1,716.1 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. March 31, 2022 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 $ 47.3 $ — $ 47.3 $ (13.0) $ (32.6) $ 1.7 Securities Lending 240.7 — 240.7 (167.4) (73.3) — Total $ 288.0 $ — $ 288.0 $ (180.4) $ (105.9) $ 1.7 Financial Liabilities: Derivatives $ 35.4 $ — $ 35.4 $ (35.2) $ — $ 0.2 Securities Lending 73.3 — 73.3 (73.3) — — Total $ 108.7 $ — $ 108.7 $ (108.5) $ — $ 0.2 December 31, 2021 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 $ 39.5 $ — $ 39.5 $ (9.8) $ (28.4) $ 1.3 Securities Lending 283.7 — 283.7 (188.9) (94.8) — Total $ 323.2 $ — $ 323.2 $ (198.7) $ (123.2) $ 1.3 Financial Liabilities: Derivatives $ 35.0 $ — $ 35.0 $ (34.0) $ — $ 1.0 Securities Lending 94.8 — 94.8 (94.8) — — Total $ 129.8 $ — $ 129.8 $ (128.8) $ — $ 1.0 Net Investment Income Net investment income reported in our consolidated statements of income is presented below. Three Months Ended March 31 2022 2021 (in millions of dollars) Fixed Maturity Securities $ 455.5 $ 469.8 Derivatives 14.4 16.2 Mortgage Loans 27.0 26.3 Policy Loans 4.7 4.8 Other Long-term Investments Perpetual Preferred Securities 1 2.9 3.6 Private Equity Partnerships 2 32.4 35.9 Other 2.1 2.1 Short-term Investments 0.8 0.6 Gross Investment Income 539.8 559.3 Less Investment Expenses 9.6 7.5 Less Investment Income on Participation Fund Account Assets 3.0 3.1 Net Investment Income $ 527.2 $ 548.7 1 The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2022 related to perpetual preferred securities still held at March 31, 2022 was $2.4 million. The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2021 related to perpetual preferred securities still held at March 31, 2021 was $2.7 million. 2 The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2022 related to private equity partnerships still held at March 31, 2022 was $16.3 million. The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2021 related to private equity partnerships still held at March 31, 2021 was $27.0 million. See Note 3 for further discussion of private equity partnerships. Investment Gain and Loss Investment gains and losses are as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Fixed Maturity Securities Gross Gains on Sales 1 $ 0.3 $ 71.3 Gross Losses on Sales (8.8) (1.1) Credit Losses (4.1) (8.3) Mortgage Loans and Other Invested Assets Gross Gains on Sales 1.4 2.5 Gross Losses on Sales — — Change in Allowance for Credit Losses 0.5 1.7 Embedded Derivative in Modified Coinsurance Arrangement (3.4) 16.9 All Other Derivatives 1.8 1.7 Foreign Currency Transactions (1.5) (0.1) Net Investment Gain (Loss) $ (13.8) $ 84.6 1 Gross gains on sales of fixed maturity securities for the three months ended March 31, 2021 includes gains of $67.6 million as a result of the second phase of the reinsurance transaction that we completed during the first quarter of 2021. See Note 12 for further discussion." id="sjs-B4">Fixed Maturity Securities At March 31, 2022 and December 31, 2021, 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: March 31, 2022 Amortized ACL (1) Gross Gross Fair (in millions of dollars) United States Government and Government Agencies and Authorities $ 461.8 $ — $ 77.0 $ 1.5 $ 537.3 States, Municipalities, and Political Subdivisions 4,223.4 — 307.3 223.4 4,307.3 Foreign Governments 933.7 — 179.2 48.2 1,064.7 Public Utilities 5,235.7 4.1 687.4 70.4 5,848.6 Mortgage/Asset-Backed Securities 536.4 — 23.4 0.7 559.1 All Other Corporate Bonds 26,274.7 — 1,931.0 580.5 27,625.2 Redeemable Preferred Stocks 4.0 — — 0.2 3.8 Total Fixed Maturity Securities $ 37,669.7 $ 4.1 $ 3,205.3 $ 924.9 $ 39,946.0 December 31, 2021 Amortized ACL (1) Gross Gross Fair (in millions of dollars) United States Government and Government Agencies and Authorities $ 460.1 $ — $ 120.1 $ 0.1 $ 580.1 States, Municipalities, and Political Subdivisions 4,150.2 — 584.2 6.9 4,727.5 Foreign Governments 952.0 — 215.3 20.7 1,146.6 Public Utilities 5,266.4 — 1,159.4 9.8 6,416.0 Mortgage/Asset-Backed Securities 587.9 — 50.4 — 638.3 All Other Corporate Bonds 25,966.1 — 3,919.9 62.6 29,823.4 Redeemable Preferred Stocks 4.0 — 0.1 — 4.1 Total Fixed Maturity Securities $ 37,386.7 $ — $ 6,049.4 $ 100.1 $ 43,336.0 (1) Allowance for Credit Losses The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position. March 31, 2022 Less Than 12 Months 12 Months or Greater Fair Gross Fair Gross (in millions of dollars) United States Government and Government Agencies and Authorities $ 24.4 $ 1.4 $ 1.9 $ 0.1 States, Municipalities, and Political Subdivisions 1,958.7 223.2 1.2 0.2 Foreign Governments 196.6 39.2 35.1 9.0 Public Utilities 826.3 59.2 59.2 11.2 Mortgage/Asset-Backed Securities 102.6 0.7 0.1 — All Other Corporate Bonds 7,072.4 516.8 416.1 63.7 Redeemable Preferred Stocks 3.8 0.2 — — Total Fixed Maturity Securities $ 10,184.8 $ 840.7 $ 513.6 $ 84.2 December 31, 2021 Less Than 12 Months 12 Months or Greater Fair Gross Fair Gross (in millions of dollars) United States Government and Government Agencies and Authorities $ 9.3 $ 0.1 $ — $ — States, Municipalities, and Political Subdivisions 326.4 6.9 0.4 — Foreign Governments 234.4 18.9 10.7 1.8 Public Utilities 263.3 9.1 17.6 0.7 Mortgage/Asset-Backed Securities 29.2 — 0.1 — All Other Corporate Bonds 2,146.3 51.6 199.4 11.0 Total Fixed Maturity Securities $ 3,008.9 $ 86.6 $ 228.2 $ 13.5 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. March 31, 2022 Amortized Cost, Net of ACL Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 894.4 $ 16.3 $ 880.1 $ 0.3 $ 30.3 Over 1 year through 5 years 6,651.9 253.2 6,063.1 14.3 827.7 Over 5 years through 10 years 10,860.0 864.3 7,695.0 239.3 3,790.0 Over 10 years 18,722.9 2,048.1 14,153.0 670.3 5,947.7 37,129.2 3,181.9 28,791.2 924.2 10,595.7 Mortgage/Asset-Backed Securities 536.4 23.4 456.4 0.7 102.7 Total Fixed Maturity Securities $ 37,665.6 $ 3,205.3 $ 29,247.6 $ 924.9 $ 10,698.4 December 31, 2021 Amortized Cost, Net of ACL Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 767.3 $ 17.6 $ 756.0 $ 0.1 $ 28.9 Over 1 year through 5 years 6,613.2 540.2 7,050.5 6.0 96.9 Over 5 years through 10 years 10,614.3 1,453.3 10,905.0 26.0 1,136.6 Over 10 years 18,804.0 3,987.9 20,778.4 68.0 1,945.4 36,798.8 5,999.0 39,489.9 100.1 3,207.8 Mortgage/Asset-Backed Securities 587.9 50.4 609.0 — 29.3 Total Fixed Maturity Securities $ 37,386.7 $ 6,049.4 $ 40,098.9 $ 100.1 $ 3,237.1 The following chart depicts an analysis of our fixed maturity security portfolio between investment-grade and below-investment-grade categories as of March 31, 2022: Gross Unrealized Loss Fair Value Gross Unrealized Gain Amount Percent of Total Gross Unrealized Loss (in millions of dollars) Investment-Grade $ 37,423.1 $ 3,132.0 $ 878.9 95.0 % Below-Investment-Grade 2,522.9 73.3 46.0 5.0 Total Fixed Maturity Securities $ 39,946.0 $ 3,205.3 $ 924.9 100.0 % The 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. Below-investment-grade fixed maturity securities are generally more likely to develop credit concerns than investment-grade securities. At March 31, 2022, 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 a credit loss will recover in value. We have the ability and intent to continue to hold these securities to recovery of amortized cost and believe that no credit losses have occurred. As of March 31, 2022, we held 563 individual investment-grade fixed maturity securities and 77 individual below-investment-grade fixed maturity securities that were in an unrealized loss position, of which 48 investment-grade fixed maturity securities and 8 below-investment-grade fixed maturity securities had been in an unrealized loss position continuously for over one year. In determining when a decline in fair value below amortized cost of a fixed maturity security represents a credit loss, 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 • 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 whether a credit loss exists 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 credit losses on a timely basis for investments determined to have a credit loss. As of March 31, 2022, we determined that a credit loss had occurred for securities we own related to one issuer, which are classified as "public utilities" in the preceding tables. We do not intend to sell these securities, and it is not more likely than not that we will be required to sell these securities before recovery of our estimated value. For these securities, we recorded an allowance for credit losses totaling $4.1 million based on the present value of our best estimate of cash flows to be collected, discounted using the effective interest rate implicit in the security at the date of acquisition. When estimating future cash flows, we analyze the strength of the issuer’s balance sheet, its debt obligations and near-term funding arrangements, cash flow and liquidity, the profitability of its core businesses, the availability of marketable assets which could be sold to increase liquidity, its industry fundamentals and regulatory environment, and its access to capital markets. The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities, which were classified as "public utilities" at March 31, 2022 and "all other corporate bonds" at March 31, 2021: Three Months Ended March 31 2022 2021 (in millions of dollars) Balance, beginning of period $ — $ 6.8 Credit losses on securities for which credit losses were not previously recorded 4.1 — Change in allowance on securities with allowance recorded in previous period — 0.5 Balance, end of period $ 4.1 $ 7.3 At March 31, 2022, we had commitments of $44.0 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 March 31, 2022, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $1,053.1 million, comprised of $7.2 million of tax credit partnerships and $1,045.9 million of private equity partnerships. At December 31, 2021, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $987.9 million, comprised of $9.3 million of tax credit partnerships and $978.6 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 March 31 2022 2021 (in millions of dollars) Income Tax Credits $ 2.1 $ 5.4 Amortization, Net of Tax (1.5) (3.7) Income Tax Benefit $ 0.6 $ 1.7 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 $0.7 million of unfunded unconditional commitments at March 31, 2022. See Note 3 for commitments to fund private equity partnerships. 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. We carry our mortgage loans at amortized cost less an allowance for expected credit losses. The amortized cost of our mortgage loans was $2,537.4 million and $2,568.7 million at March 31, 2022 and December 31, 2021, respectively. The allowance for expected credit losses was $7.9 million and $8.3 million at March 31, 2022 and December 31, 2021, respectively. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. We report accrued interest income for our mortgage loans as accrued investment income on our consolidated balance sheets, and the amount of the accrued income was $8.0 million and $8.1 million at March 31, 2022 and December 31, 2021, respectively. The carrying amount of mortgage loans by property type and geographic region are presented below. March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Amount Percent of Total Carrying Amount Percent of Total Property Type Apartment $ 715.6 28.3 % $ 780.0 30.5 % Industrial 746.7 29.5 734.4 28.7 Office 491.4 19.4 467.2 18.2 Retail 530.6 21.0 533.3 20.8 Other 45.2 1.8 45.5 1.8 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % Region New England $ 54.3 2.1 % $ 54.9 2.1 % Mid-Atlantic 194.2 7.7 214.7 8.4 East North Central 314.9 12.4 298.4 11.7 West North Central 186.5 7.4 193.1 7.5 South Atlantic 585.3 23.2 582.1 22.7 East South Central 119.6 4.7 120.7 4.7 West South Central 226.5 9.0 243.2 9.6 Mountain 288.8 11.4 290.6 11.3 Pacific 559.4 22.1 562.7 22.0 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % The risk in our mortgage loan portfolio is primarily related to vacancy rates. Events or developments, such as economic conditions that impact the ability of the borrowers to ensure occupancy of the property, may have a negative effect on our mortgage loan portfolio, particularly to the extent that our portfolio is concentrated in an affected region or property type. An increase in vacancies increases the probability of default, which would negatively affect our expected losses in our mortgage loan portfolio. We evaluate each of our mortgage loans individually for impairment and assign an internal quality rating based on a comprehensive rating system used to evaluate the risk of the loan. The factors we use to derive our internal quality ratings may include the following: • Loan-to-value ratio based on internal appraisal of property • 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 quality ratings on an annual basis. This review process is performed more frequently for mortgage loans deemed to have a higher risk of delinquency. We estimate an allowance for credit losses that we expect to incur over the life of our mortgage loans using a probability of default method. For each loan, we estimate the probability that the loan will default before its maturity (probability of default) and the amount of the loss if the loan defaults (loss given default). These two factors result in an expected loss percentage that is applied to the amortized cost of each loan to determine the expected credit loss. As we are the original underwriter of the mortgage loans, the amortized cost generally equals the principal amount of the loan. We measure losses on defaults of our mortgage loans as the excess amortized cost of the mortgage loan over the fair value of the underlying collateral in the event that we foreclose on the loan or over the expected future cash flows of the loan if we retain the mortgage loan until payoff. We do not purchase mortgage loans with existing credit impairments. In estimating the probability of default, we consider historical experience, current market conditions, and reasonable and supportable forecasts about the future market conditions. We utilize our historical loan experience in combination with a large third-party industry database for a period of time that aligns with the average life of our loans based on the maturity dates of the loans and prepayment experience. Our model utilizes an industry database of the historical loss experience based on our actual portfolio characteristics such as loan-to-value, debt service coverage, collateral type, geography, and late payment history. In addition, because we actively manage our portfolio, we may extend the term of a loan in certain situations and will accordingly extend the maturity date in the estimate of probability of default. In estimating the loss given default, we primarily consider the type and value of collateral and secondarily the expected liquidation costs and time to recovery. The primary market factors that we consider in our forecast of future market conditions are gross domestic product, unemployment rates, interest rates, inflation, commercial real estate values, household formation, and retail sales. We also forecast certain loan specific factors such as growth in the fair value and net operating income of collateral by property type. We include our estimate of these factors over a two-year period and for the remainder of the loans’ estimated lives, adjusted for estimated prepayments. Past the two-year forecast period, we revert to the historical assumptions ratably by the end of the fifth year of the loan after which we utilize only historical assumptions. We utilize various scenarios to estimate our allowance for expected losses ranging from a base case scenario that reflects normal market conditions to a severe case scenario that reflects adverse market conditions. We will adjust our allowance each period to utilize the scenario or weighting of the scenarios that best reflects our view of current market conditions. The following tables present information about mortgage loans by the applicable internal quality indicators: March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Amount Percent of Total Carrying Amount Percent of Total Internal Mortgage Rating AA $ 27.2 1.1 % $ 27.3 1.1 % A 702.4 27.8 709.6 27.7 BBB 1,779.1 70.3 1,802.6 70.4 BB 20.8 0.8 20.9 0.8 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % Loan-to-Value Ratio (1) <= 65% $ 1,322.4 52.3 % $ 1,346.1 52.6 % > 65% <= 75% 1,070.6 42.3 1,076.8 42.0 > 75% <= 85% 124.1 4.9 114.9 4.5 > 85% 12.4 0.5 22.6 0.9 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property The followin g tables present the amortized cost of our mortgage loans by year of origination and internal quality indicators at March 31, 2022 and December 31, 2021, respectively : March 31, 2022 Prior to 2018 2018 2019 2020 2021 2022 Total (in millions of dollars) Internal Mortgage Rating AA $ 3.3 $ 23.9 $ — $ — $ — $ — $ 27.2 A 489.6 78.6 28.6 17.5 81.4 7.9 703.6 BBB 722.9 273.9 330.1 162.1 270.3 26.3 1,785.6 BB 15.0 6.0 — — — — 21.0 Total Amortized Cost 1,230.8 382.4 358.7 179.6 351.7 34.2 2,537.4 Allowance for credit losses (3.6) (1.4) (1.4) (0.6) (0.8) (0.1) (7.9) Carrying Amount $ 1,227.2 $ 381.0 $ 357.3 $ 179.0 $ 350.9 $ 34.1 $ 2,529.5 Loan-to-Value Ratio (1) <=65% $ 887.9 $ 171.0 $ 80.2 $ 53.9 $ 123.9 $ 7.9 $ 1,324.8 >65<=75% 211.4 205.4 278.5 125.7 227.8 26.3 1,075.1 >75%<=85% 124.8 — — — — — 124.8 >85% 6.7 6.0 — — — — 12.7 Total Amortized Cost 1,230.8 382.4 358.7 179.6 351.7 34.2 2,537.4 Allowance for credit losses (3.6) (1.4) (1.4) (0.6) (0.8) (0.1) (7.9) Carrying Amount $ 1,227.2 $ 381.0 $ 357.3 $ 179.0 $ 350.9 $ 34.1 $ 2,529.5 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property December 31, 2021 Prior to 2017 2017 2018 2019 2020 2021 Total (in millions of dollars) Internal Mortgage Rating AA $ 3.3 $ — $ 24.0 $ — $ — $ — $ 27.3 A 414.6 68.0 71.1 28.9 17.6 110.6 710.8 BBB 561.2 227.3 283.3 331.9 163.1 242.6 1,809.4 BB 5.0 10.2 6.0 — — — 21.2 Total Amortized Cost 984.1 305.5 384.4 360.8 180.7 353.2 2,568.7 Allowance for credit losses (2.6) (1.4) (1.4) (1.4) (0.7) (0.8) (8.3) Carrying Amount $ 981.5 $ 304.1 $ 383.0 $ 359.4 $ 180.0 $ 352.4 $ 2,560.4 Loan-to-Value Ratio (1) <=65% $ 779.1 $ 146.9 $ 163.0 $ 80.7 $ 54.3 $ 124.7 $ 1,348.7 >65<=75% 115.7 115.4 215.4 280.1 126.4 228.5 1,081.5 >75%<=85% 89.3 26.3 — — — — 115.6 >85% — 16.9 6.0 — — — 22.9 Total Amortized Cost 984.1 305.5 384.4 360.8 180.7 353.2 2,568.7 Allowance for credit losses (2.6) (1.4) (1.4) (1.4) (0.7) (0.8) (8.3) Carrying Amount $ 981.5 $ 304.1 $ 383.0 $ 359.4 $ 180.0 $ 352.4 $ 2,560.4 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property The following table presents a roll-forward of allowance for expected credit losses by loan-to-value ratio for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 Beginning of Year Current Period Provisions Write-Offs Recoveries End of Period (in millions of dollars) Loan-to-Value Ratio (1) <=65% $ 2.6 $ (0.2) $ — $ — $ 2.4 >65<=75% 4.7 (0.2) — — 4.5 >75%<=85% 0.7 — — — 0.7 >85% 0.3 — — — 0.3 Total $ 8.3 $ (0.4) $ — $ — $ 7.9 Three Months Ended March 31, 2021 Beginning of Year Current Period Provisions Write-Offs Recoveries End of Period (in millions of dollars) Loan-to-Value Ratio (1) <=65% $ 3.4 $ (0.4) $ — $ — $ 3.0 >65<=75% 7.3 (1.0) — — 6.3 >75%<=85% 1.3 (0.1) — — 1.2 >85% 1.1 (0.1) — — 1.0 Total $ 13.1 $ (1.6) $ — $ — $ 11.5 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property The decrease in our estimate of expected losses during the first quarter of 2022 is primarily due to improved economic conditions and recovery from COVID-19, specifically as it relates to underlying commercial real estate values, and reflects market conditions as of March 31, 2022. There were no troubled debt restructurings during the three months ended March 31, 2022 and 2021. At March 31, 2022 and December 31, 2021, we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. We had no loan foreclosures for the three months ended March 31, 2022 and 2021. We had no impaired mortgage loans during three months ended March 31, 2022, or 2021, nor did we recognize any interest income on mortgage loans subsequent to impairment. At March 31, 2022, we had commitments of $26.5 million to fund certain commercial mortgage loans. Consistent with how we determine the estimate of current expected credit losses for our funded mortgage loans each period, we estimate expected credit losses for loans that have not been funded but we are committed to fund at the end of each period. At both March 31, 2022 and December 31, 2021, we had $0.1 million of expected credit losses related to unfunded commitments on our consolidated balance sheets. Investment Real Estate In the first quarter of 2022, we reclassified property previously held for the production of income to property held for sale. The carrying value of the property was $40.0 million and $40.9 million as of March 31, 2022 and December 31, 2021, respectively, and is primarily recorded within our Corporate segment. The estimated fair value less costs to sell is above the carrying value of the property and we expect to close the sale of the property in 2022. 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 March 31, 2022, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $240.7 million, for which we received collateral in the form of cash and securities of $73.3 million and $176.0 million, respectively. As of December 31, 2021, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $283.7 million, for which we received collateral in the form of cash and securities of $94.8 million and $198.6 million, respectively. We had no outstanding repurchase agreements at March 31, 2022 or December 31, 2021. The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows: March 31, 2022 December 31, 2021 Overnight and Continuous (in millions of dollars) Borrowings United States Government and Government Agencies and Authorities $ 0.4 $ 0.1 State, Municipalities, and Political Subdivisions 0.6 0.1 Public Utilities 4.3 3.1 All Other Corporate Bonds 68.0 91.5 Total Borrowings $ 73.3 $ 94.8 Gross Amount of Recognized Liability for Securities Lending Transactions 73.3 94.8 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. Advances received from the FHLB are used for the purchase of short-term investments or fixed maturity securities. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. The carrying value of common stock owned, collateral posted, and advances received are as follows: March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Value of FHLB Common Stock $ 23.3 $ 22.1 Advances from FHLB 178.2 160.9 Carrying Value of Collateral Posted to FHLB Fixed Maturity Securities $ 640.9 $ 786.1 Commercial Mortgage Loans 886.7 930.0 Total Carrying Value of Collateral Posted to FHLB $ 1,527.6 $ 1,716.1 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. March 31, 2022 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 $ 47.3 $ — $ 47.3 $ (13.0) $ (32.6) $ 1.7 Securities Lending 240.7 — 240.7 (167.4) (73.3) — Total $ 288.0 $ — $ 288.0 $ (180.4) $ (105.9) $ 1.7 Financial Liabilities: Derivatives $ 35.4 $ — $ 35.4 $ (35.2) $ — $ 0.2 Securities Lending 73.3 — 73.3 (73.3) — — Total $ 108.7 $ — $ 108.7 $ (108.5) $ — $ 0.2 December 31, 2021 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 $ 39.5 $ — $ 39.5 $ (9.8) $ (28.4) $ 1.3 Securities Lending 283.7 — 283.7 (188.9) (94.8) — Total $ 323.2 $ — $ 323.2 $ (198.7) $ (123.2) $ 1.3 Financial Liabilities: Derivatives $ 35.0 $ — $ 35.0 $ (34.0) $ — $ 1.0 Securities Lending 94.8 — 94.8 (94.8) — — Total $ 129.8 $ — $ 129.8 $ (128.8) $ — $ 1.0 Net Investment Income Net investment income reported in our consolidated statements of income is presented below. Three Months Ended March 31 2022 2021 (in millions of dollars) Fixed Maturity Securities $ 455.5 $ 469.8 Derivatives 14.4 16.2 Mortgage Loans 27.0 26.3 Policy Loans 4.7 4.8 Other Long-term Investments Perpetual Preferred Securities 1 2.9 3.6 Private Equity Partnerships 2 32.4 35.9 Other 2.1 2.1 Short-term Investments 0.8 0.6 Gross Investment Income 539.8 559.3 Less Investment Expenses 9.6 7.5 Less Investment Income on Participation Fund Account Assets 3.0 3.1 Net Investment Income $ 527.2 $ 548.7 1 The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2022 related to perpetual preferred securities still held at March 31, 2022 was $2.4 million. The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2021 related to perpetual preferred securities still held at March 31, 2021 was $2.7 million. 2 The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2022 related to private equity partnerships still held at March 31, 2022 was $16.3 million. The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2021 related to private equity partnerships still held at March 31, 2021 was $27.0 million. See Note 3 for further discussion of private equity partnerships. Investment Gain and Loss Investment gains and losses are as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Fixed Maturity Securities Gross Gains on Sales 1 $ 0.3 $ 71.3 Gross Losses on Sales (8.8) (1.1) Credit Losses (4.1) (8.3) Mortgage Loans and Other Invested Assets Gross Gains on Sales 1.4 2.5 Gross Losses on Sales — — Change in Allowance for Credit Losses 0.5 1.7 Embedded Derivative in Modified Coinsurance Arrangement (3.4) 16.9 All Other Derivatives 1.8 1.7 Foreign Currency Transactions (1.5) (0.1) Net Investment Gain (Loss) $ (13.8) $ 84.6 1 Gross gains on sales of fixed maturity securities for the three months ended March 31, 2021 includes gains of $67.6 million as a result of the second phase of the reinsurance transaction that we completed during the first quarter of 2021. See Note 12 for further discussion. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 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, current and forward currency swaps, forward benchmark interest rate 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 benchmark interest rate locks are used to minimize interest rate risk associated with the anticipated purchase or disposal of fixed maturity securities or the anticipated issuance of fixed rate long term debt. A forward benchmark interest rate lock is a derivative contract without an initial investment where we and the counterparty agree to purchase or sell a specific benchmark interest rate fixed maturity bond at a future date at a pre-determined price or yield. Derivatives designated as fair value hedges and previously used to reduce our exposure to interest rate and duration risk included: • Interest rate swaps were used to effectively convert certain fixed rate, long-term debt into floating rate long-term debt. Under these swap agreements, we received a fixed rate of interest and paid a variable rate of interest. Derivatives designated as either cash flow or fair value hedges and used to reduce our exposure to foreign currency risk are as follows: • Foreign currency interest rate swaps are used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification. Under these swap agreements, 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. Derivatives not designated as hedging instruments and used to reduce our exposure to foreign currency risk, credit losses on securities owned, and volatility of the underlying deferred assets in our non-qualified defined contribution plan 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. These derivatives were effective hedges prior to novation to a new counterparty. In conjunction with the novation, these derivatives were de-designated as hedges. 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. • Foreign currency forward contracts are used to minimize foreign currency risk. A foreign currency forward is a derivative without an initial investment where we and the counterparty agree to exchange a specific amount of currencies, at a specific exchange rate, on a specific date. We use these forward contracts to hedge the currency risk arising from foreign-currency denominated securities. • Total Return Swap s are used to economically hedge a portion of the liability related to our non-qualified defined contribution plan. A total return swap is an agreement in which we pay a floating rate of interest to the counterparty and receive the total return on a portfolio of exchange traded funds. These swaps are cash settled on the last day of every month and the notional is re-established each month based on periodic distributions from and contributions to the plan assets. 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. Credit exposure on derivatives is limited to the value of those contracts in a net gain position, including accrued interest receivable less collateral held. As of March 31, 2022 and December 31, 2021, we had $1.7 million and $1.3 million credit exposure on derivatives, respectively. The table below summarizes the nature and amount of collateral received from and posted to our derivative counterparties. March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Value of Collateral Received from Counterparties Cash $ 35.0 $ 32.0 Carrying Value of Collateral Posted to Counterparties Fixed Maturity Securities $ 27.6 $ 27.6 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 $35.4 million and $35.0 million at March 31, 2022 and December 31, 2021, respectively. Cash Flow Hedges As of March 31, 2022 and December 31, 2021, we had $181.3 million notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities. During the first quarter of 2021, in connection with the Closed Block individual disability reinsurance transaction, we reclassified $0.6 million of deferred gains from accumulated other comprehensive income into earnings included in the net investment gain (loss) line item on our income statement. The deferred gains were related to previously terminated interest rate swaps designated as hedging instruments of fixed maturity securities in the Closed Block individual disability product line. See Note 12 for further discussion. As of March 31, 2022, we expect to amortize approximately $47.6 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 March 31, 2022, we are hedging the variability of future cash flows associated with forecasted transactions through the year 2051. Fair Value Hedges As of March 31, 2022 and December 31, 2021, we had $531.6 million and $498.5 million notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities. The following table summarizes the carrying amount of hedged assets and the related cumulative basis adjustments related to our fair value hedges: Carrying Amount of Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions of dollars) Fixed maturity securities: Receive fixed functional currency interest, pay fixed foreign currency interest $ 466.8 $ 466.3 $ (3.3) $ 2.0 For the three months ended March 31, 2022 and March 31, 2021, $3.3 million and $(7.0) million respectively, of the derivative instruments' gain (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 March 31, 2022 and December 31, 2021, we held $148.2 million notional amount of receive fixed, pay fixed, foreign currency interest rate swaps. These derivatives are not designated as hedges, and as such, changes in fair value related to these derivatives are reported in earnings as a component of net investment gain or loss. As of March 31, 2022 and December 31, 2021, we held $11.3 million and $11.6 million, respectively, 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 March 31, 2022 and December 31, 2021, we held $58.2 million and $41.7 million, respectively, notional amount of foreign currency forwards to mitigate the foreign currency risk associated with specific securities owned. As of March 31, 2022 and December 31, 2021, we held $83.9 million and $89.2 million, respectively, notional amount of total return swaps to mitigate the volatility associated with changes in the fair value of the underlying notional assets in our non-qualified defined contribution plan. This derivative is an economic hedge not designated as a hedging instrument, and changes in fair value are reported as a component of other expenses in our income statement. We have an embedded derivative in a modified coinsurance arrangement for which we include in our 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 fair values and notional amounts of derivative financial instruments, as reported in our consolidated balance sheets. Derivative assets are included in other long-term investments, while derivative liabilities are included in other liabilities within our consolidated balance sheets. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated. March 31, 2022 Derivative Assets Derivative Liabilities Notional Fair Fair (in millions of dollars) Designated as Hedging Instruments Cash Flow Hedges Forward Benchmark Interest Rate Locks $ 15.0 $ — $ 1.0 Foreign Currency Interest Rate Swaps 181.3 14.9 7.8 Total Cash Flow Hedges 196.3 14.9 8.8 Fair Value Hedges Foreign Currency Interest Rate Swaps 531.6 30.4 5.5 Total Designated as Hedging Instruments $ 727.9 $ 45.3 $ 14.3 Not Designated as Hedging Instruments Credit Default Swaps $ 11.3 $ — $ — Foreign Currency Forwards 58.2 — — Foreign Currency Interest Rate Swaps 148.2 2.0 21.1 Total Return Swaps 83.9 — — Embedded Derivative in Modified Coinsurance Arrangement — — 33.5 Total Not Designated as Hedging Instruments $ 301.6 $ 2.0 $ 54.6 Total Derivatives $ 1,029.5 $ 47.3 $ 68.9 December 31, 2021 Derivative Assets Derivative Liabilities Notional Fair Fair (in millions of dollars) Designated as Hedging Instruments Cash Flow Hedges Foreign Currency Interest Rate Swaps $ 181.3 $ 16.2 $ 7.0 Fair Value Hedges Foreign Currency Interest Rate Swaps 498.5 21.9 5.7 Total Designated as Hedging Instruments $ 679.8 $ 38.1 $ 12.7 Not Designated as Hedging Instruments Credit Default Swaps $ 11.6 $ — $ — Foreign Currency Forwards 41.7 — — Foreign Currency Interest Rate Swaps 148.2 1.4 22.3 Total Return Swaps 89.2 — — Embedded Derivative in Modified Coinsurance Arrangement — — 30.1 Total Not Designated as Hedging Instruments $ 290.7 $ 1.4 $ 52.4 Total Derivatives $ 970.5 $ 39.5 $ 65.1 The following tables summarize the location of gains and losses of derivative financial instruments designated as hedging instruments, as reported in our consolidated statements of income. Three Months Ended March 31 2022 2021 Net Investment Income Net Investment Gain (Loss) Interest and Debt Expense Net Investment Income Net Investment Gain (Loss) Interest and Debt Expense (in millions of dollars) Total Income and Expense Presented in the Consolidated Statements of Income of Which Hedged Items are Recorded $ 527.2 $ (13.8) $ 46.9 $ 548.7 $ 84.6 $ 44.4 Gain (Loss) on Cash Flow Hedging Relationships Interest Rate Swaps: Hedged items 50.4 — 0.7 52.0 2.4 7.3 Derivatives Designated as Hedging Instruments 13.4 — — 15.5 1.8 0.1 Foreign Exchange Contracts: Hedged items 2.8 — — 3.1 — — Derivatives Designated as Hedging Instruments 0.2 — — 0.3 — — Gain (Loss) on Fair Value Hedging Relationships Foreign Exchange Contracts Hedged items 2.7 (5.3) — 2.3 (9.5) — Derivatives Designated as Hedging Instruments 1.4 5.3 — 1.0 9.5 — The following table summarizes the location of gains and losses of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of comprehensive income (loss). Three Months Ended March 31 2022 2021 (in millions of dollars) Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Forwards $ (1.0) $ — Foreign Exchange Contracts (2.1) (1.5) Total $ (3.1) $ (1.5) 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 March 31 2022 2021 (in millions of dollars) Net Investment Gain (Loss) Credit Default Swaps $ — $ (0.1) Foreign Exchange Contracts 1.8 1.8 Embedded Derivative in Modified Coinsurance Arrangement (3.4) 16.9 Total $ (1.6) $ 18.6 Other Expenses (Gain) Loss on Total Return Swaps $ 5.7 $ 1.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows: Net Unrealized Gain on Securities Net Gain on Hedges Foreign Currency Translation Adjustment Unrecognized Pension and Postretirement Benefit Costs Total (in millions of dollars) Balance at December 31, 2021 $ 962.2 $ 61.8 $ (273.9) $ (396.0) $ 354.1 Other Comprehensive Income (Loss) Before Reclassifications (906.1) 0.4 (31.9) 1.1 (936.5) Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 10.0 (10.8) — 3.1 2.3 Net Other Comprehensive Income (Loss) (896.1) (10.4) (31.9) 4.2 (934.2) Balance at March 31, 2022 $ 66.1 $ 51.4 $ (305.8) $ (391.8) $ (580.1) Balance at December 31, 2020 $ 1,067.7 $ 97.8 $ (261.3) $ (530.0) $ 374.2 Other Comprehensive Income (Loss) Before Reclassifications (447.2) (6.8) 7.3 (0.5) (447.2) Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 57.7 (13.9) — 4.3 48.1 Net Other Comprehensive Income (Loss) (389.5) (20.7) 7.3 3.8 (399.1) Balance at March 31, 2021 $ 678.2 $ 77.1 $ (254.0) $ (526.2) $ (24.9) The net unrealized gain on securities consists of the following components: March 31 December 31 2022 2021 Change (in millions of dollars) Fixed Maturity Securities $ 2,280.4 $ 5,949.3 $ (3,668.9) Deferred Acquisition Costs (33.6) (70.4) 36.8 Reserves for Future Policy and Contract Benefits (2,104.4) (4,659.5) 2,555.1 Reinsurance Recoverable 74.8 132.1 (57.3) Income Tax (151.1) (389.3) 238.2 Total $ 66.1 $ 962.2 $ (896.1) March 31 December 31 2021 2020 Change (in millions of dollars) Fixed Maturity Securities $ 5,517.4 $ 7,597.6 $ (2,080.2) Deferred Acquisition Costs (66.6) (85.1) 18.5 Reserves for Future Policy and Contract Benefits (4,588.9) (6,225.6) 1,636.7 Reinsurance Recoverable 133.3 200.2 (66.9) Income Tax (317.0) (419.4) 102.4 Total $ 678.2 $ 1,067.7 $ (389.5) Amounts reclassified from accumulated other comprehensive income (loss) were recognized in our consolidated statements of income as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Net Unrealized Gain on Securities Net Investment Gain (Loss) Net Gain (Loss) on Sales of Fixed Maturity Securities $ (8.5) $ 68.3 Credit Losses on Fixed Maturity Securities (4.1) (8.3) Loss on Benefits and Change in Reserves for Future Benefits — (133.1) (12.6) (73.1) Income Tax Benefit (2.6) (15.4) Total $ (10.0) $ (57.7) Net Gain on Hedges Net Investment Income Gain on Interest Rate Swaps $ 13.4 $ 15.3 Gain on Foreign Exchange Contracts 0.3 0.5 Net Investment Gain Gain on Interest Rate Swaps — 1.8 13.7 17.6 Income Tax Expense 2.9 3.7 Total $ 10.8 $ 13.9 Unrecognized Pension and Postretirement Benefit Costs Other Expenses Amortization of Net Actuarial Loss $ (4.0) $ (5.6) Amortization of Prior Service Credit 0.1 0.1 (3.9) (5.5) Income Tax Benefit (0.8) (1.2) Total $ (3.1) $ (4.3) |
Liability for Unpaid Claims and
Liability for Unpaid Claims and Claim Adjustment Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Liability for Unpaid Claims and Claims Adjustment Expenses Disclosure | Changes in the liability for unpaid claims and claim adjustment expenses are as follows: 2022 2021 (in millions of dollars) Balance at January 1 $ 23,664.7 $ 24,180.2 Less Reinsurance Recoverable 8,697.8 8,378.9 Net Balance at January 1 14,966.9 15,801.3 Incurred Related to Current Year 1,856.6 1,870.3 Prior Years Interest 164.0 183.4 All Other Incurred (231.8) (66.0) Foreign Currency (64.0) 17.3 Total Incurred 1,724.8 2,005.0 Paid Related to Current Year (483.7) (472.1) Prior Years (1,337.1) (1,342.5) Total Paid (1,820.8) (1,814.6) Reserves Ceded Pursuant to Reinsurance Transaction — (990.0) Net Balance at March 31 14,870.9 15,001.7 Plus Reinsurance Recoverable 8,535.3 9,225.8 Balance at March 31 $ 23,406.2 $ 24,227.5 Certain prior year amounts were reclassified to conform to current year presentation. The majority of the net balances are related to disability claims with long-tail payouts on which interest earned on assets backing liabilities is an integral part of pricing and reserving. Interest accrued on prior year reserves has been calculated on the opening reserve balance less one-half of the period’s claim payments relative to prior years at our average reserve discount rate for the respective periods. "Incurred Related to Prior Years - All Other Incurred" shown in the preceding chart reflects the current year development of the prior year unpaid claims and claim adjustment expenses. For 2021, this amount includes the increase in benefits and change in reserves for future benefits resulting from the realization of previously unrealized investment gains and losses as a result of the Closed Block individual disability reinsurance transaction which impacts the comparability between the years presented. Excluding that adjustment, the variability exhibited year over year is primarily caused by the level of claim resolutions in the period relative to the long-term expectations reflected in the reserves, primarily in our Unum US group long-term disability and Closed Block long-term care product lines. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the life of the block of business and will vary from actual experience in any one period, both favorably and unfavorably. Closed Block Individual Disability Reinsurance Transaction In connection with the second phase of the Closed Block individual disability transaction that closed in March 2021, we recorded a reinsurance recoverable of $990.0 million representing the ceded reserves related to the cohort of policies on claim status as of January 1, 2021 and an increase in benefits and change in reserves for future benefits of $133.1 million resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income. These impacts are reflected in the chart shown above and the reconciliation shown below. See Note 12 for further discussion regarding the total impacts of the Closed Block individual disability reinsurance transaction. Reconciliation A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows: March 31 2022 2021 (in millions of dollars) Policy and Contract Benefits $ 1,874.2 $ 1,899.3 Reserves for Future Policy and Contract Benefits 45,258.0 48,112.3 Total 47,132.2 50,011.6 Less: Life Reserves for Future Policy and Contract Benefits 8,415.7 8,389.3 Accident and Health Active Life Reserves 13,205.9 12,805.9 Adjustment Related to Unrealized Investment Gains and Losses 2,104.4 4,588.9 Liability for Unpaid Claims and Claim Adjustment Expenses $ 23,406.2 $ 24,227.5 The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income or loss. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | We have three principal operating business segments: Unum US, Unum International, and Colonial Life. Our other segments are Closed Block and Corporate. Segment information is as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Premium Income Unum US Group Disability Group Long-term Disability $ 463.9 $ 457.7 Group Short-term Disability 221.6 215.2 Group Life and Accidental Death & Dismemberment Group Life 412.6 410.0 Accidental Death & Dismemberment 42.1 41.4 Supplemental and Voluntary Voluntary Benefits 220.5 218.7 Individual Disability 113.6 115.7 Dental and Vision 70.6 67.1 1,544.9 1,525.8 Unum International Unum UK Group Long-term Disability 103.4 97.1 Group Life 32.2 27.3 Supplemental 29.0 28.0 Unum Poland 23.2 22.0 187.8 174.4 Colonial Life Accident, Sickness, and Disability 239.7 240.7 Life 101.7 96.6 Cancer and Critical Illness 89.3 89.1 430.7 426.4 Closed Block Long-term Care 174.8 177.4 Individual Disability 63.4 72.1 All Other 1.7 2.2 239.9 251.7 Total Premium Income $ 2,403.3 $ 2,378.3 Unum US Unum International Colonial Life Closed Block Corporate Total (in millions of dollars) Three Months Ended March 31, 2022 Premium Income $ 1,544.9 $ 187.8 $ 430.7 $ 239.9 $ — $ 2,403.3 Net Investment Income 171.0 34.5 38.1 274.8 8.8 527.2 Other Income 47.1 0.2 0.3 16.0 2.2 65.8 Adjusted Operating Revenue $ 1,763.0 $ 222.5 $ 469.1 $ 530.7 $ 11.0 $ 2,996.3 Adjusted Operating Income (Loss) $ 171.6 $ 27.2 $ 90.1 $ 94.1 $ (40.4) $ 342.6 Three Months Ended March 31, 2021 Premium Income $ 1,525.8 $ 174.4 $ 426.4 $ 251.7 $ — $ 2,378.3 Net Investment Income 179.7 26.0 37.7 297.2 8.1 548.7 Other Income 40.4 0.1 0.2 18.4 1.3 60.4 Adjusted Operating Revenue $ 1,745.9 $ 200.5 $ 464.3 $ 567.3 $ 9.4 $ 2,987.4 Adjusted Operating Income (Loss) $ 115.7 $ 26.4 $ 73.3 $ 97.0 $ (38.9) $ 273.5 March 31 December 31 2022 2021 (in millions of dollars) Assets Unum US $ 17,741.1 $ 18,696.3 Unum International 3,872.4 4,086.5 Colonial Life 4,759.5 4,895.9 Closed Block 36,213.4 38,287.9 Corporate 3,885.3 4,149.0 Total Assets $ 66,471.7 $ 70,115.6 We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted 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 investment gains and losses and the amortization of the cost of reinsurance as well as certain other items as specified in the reconciliations below. We believe adjusted operating revenue and adjusted 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. Investment gains or losses primarily include realized investment gains or losses, expected investment credit losses, and gains or losses on derivatives. 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 investment gains or losses. Although we may experience 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. We have exited a substantial portion of our Closed Block individual disability product line through the two phases of the reinsurance transaction that were executed in December 2020 and March 2021. As a result, we exclude the amortization of the cost of reinsurance that was recognized as a result of the exit of the business related to the DLR cohort of policies. We believe that the exclusion of the amortization of the cost of reinsurance provides a better view of our results from our ongoing businesses. See Note 12 for further discussion regarding the total impacts of the Closed Block individual disability reinsurance transaction and the amortization of the cost of reinsurance. We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability. A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Total Revenue $ 2,982.5 $ 3,072.0 Excluding: Net Investment Gain (Loss) (13.8) 84.6 Adjusted Operating Revenue $ 2,996.3 $ 2,987.4 Income Before Income Tax $ 312.1 $ 198.8 Excluding: Net Investment Gains and Losses Net Realized Investment Gain Related to Reinsurance Transaction — 67.6 Net Investment Gain (Loss), Other (13.8) 17.0 Total Net Investment Gain (Loss) (13.8) 84.6 Items Related to Closed Block Individual Disability Reinsurance Transaction Change in Benefit Reserves and Transaction Costs — (139.3) Amortization of the Cost of Reinsurance (16.7) (20.0) Total Items Related to Closed Block Individual Disability Reinsurance Transaction (16.7) (159.3) Adjusted Operating Income $ 342.6 $ 273.5 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | 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. The U.S. qualified and non-qualified defined benefit pension plans comprise the majority of our total benefit obligation and benefit cost. 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 on December 31, 2013, the OPEB plan was closed to new entrants on December 31, 2012, and the U.K. plan was closed to new entrants on December 31, 2002. The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans. Three Months Ended March 31 Pension Benefits U.S. Plans U.K. Plan OPEB 2022 2021 2022 2021 2022 2021 (in millions of dollars) Service Cost $ 1.9 $ 2.4 $ — $ — $ — $ — Interest Cost 16.8 16.3 1.4 1.1 0.7 0.8 Expected Return on Plan Assets (26.5) (25.2) (3.0) (2.5) (0.1) (0.1) Amortization of: Net Actuarial (Gain) Loss 4.1 5.3 0.1 0.3 (0.2) — Prior Service Credit — — — — (0.1) (0.1) Total Net Periodic Benefit Cost (Credit) $ (3.7) $ (1.2) $ (1.5) $ (1.1) $ 0.3 $ 0.6 The service cost component of net periodic pension and postretirement benefit cost (credit) is included as a component of compensation expense in our consolidated statements of income. All other components of net periodic pension and postretirement benefit cost (credit) are included in other expenses. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity and Earnings Per Common Share [Abstract] | |
Earnings Per Share Disclosure | Earnings Per Common Share Net income per common share is determined as follows: Three Months Ended March 31 2022 2021 (in millions of dollars, except share data) Numerator Net Income $ 253.5 $ 153.0 Denominator (000s) Weighted Average Common Shares - Basic 202,628.8 204,133.3 Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards 875.5 604.0 Weighted Average Common Shares - Assuming Dilution 203,504.3 204,737.3 Net Income Per Common Share Basic $ 1.25 $ 0.75 Assuming Dilution $ 1.25 $ 0.75 We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding for the period. In computing earnings per share assuming dilution, we include potential common shares that are dilutive (those that reduce earnings per share). We use the treasury stock method to account for the effect of outstanding stock options, nonvested stock success units, nonvested restricted stock units, and nonvested performance share units on the computation of diluted earnings per share. Under this method, the potential common shares from stock options, nonvested stock success units, and nonvested restricted stock units 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 stock success units and nonvested restricted stock units. The outstanding nonvested stock success units and nonvested restricted stock units have grant prices ranging from $12.45 to $36.62. There were no outstanding stock options as |
Stockholders' Equity Disclosure | Common Stock As part of our capital deployment strategy, we may repurchase shares of Unum Group's common stock, as authorized by our board of directors. During the first quarter of 2021, we did not have an open share repurchase program and did not repurchase any shares. During October 2021, our board of directors authorized the repurchase of up to $250.0 million of Unum Group's outstanding common stock through December 31, 2022, with the timing and amount of repurchase activity to be based on market conditions and other considerations, including the level of available cash, alternative uses for cash, and our stock price. 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 March 31 2022 2021 (in millions) Shares Repurchased 1.3 — Cost of Shares Repurchased $ 37.5 $ — In February 2022, we entered into an accelerated share repurchase agreement with a financial counterparty to repurchase $50.0 million of Unum Group's common stock in aggregate. As part of this transaction, we paid $50.0 million to the financial counterparty and received an initial delivery of 1.3 million shares of our common stock, which represented approximately 75 percent of the total delivery under the agreement. We recorded an increase to treasury stock within stockholders' equity on our consolidated balance sheet for the value of the initial 1.3 million shares received for $37.5 million. We simultaneously entered into a forward contract indexed to the price of Unum Group common stock, which subjected the transaction to a future price adjustment. Under the terms of the share repurchase agreement, we were to receive, or be required to pay, a price adjustment based on the volume weighted average price of Unum Group common stock during the term of the agreement, less a discount. Any price adjustment payable to us was to be settled in shares of Unum Group common stock. Any price adjustment we would have been required to pay would have been settled in either cash or common stock at our option. The final price adjustment settlement, along with the delivery of the remaining shares, occurred in April 2022, resulting in the delivery to us of 0.4 million additional shares. As a result of the final settlement occurring subsequent to March 31, 2022, we recorded a decrease to additional paid-in capital within stockholders' equity on our consolidated balance sheet for the value of the shares held back by the counterparty as of March 31, 2022, which will be reclassified to treasury stock in the second quarter of 2022 in connection with the final settlement of the agreement. In total, we repurchased 1.7 million shares pursuant to the February 2022 accelerated share repurchase agreement. Following the completion of the February 2022 accelerated share repurchase agreement, the remaining repurchase amount under the current share repurchase program was $150.0 million. 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 that have arisen in the normal course of business, including the matters discussed below. 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. 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. |
Other
Other | 3 Months Ended |
Mar. 31, 2022 | |
Other Disclosures [Abstract] | |
Debt | Credit Facility Renewal In April 2022, we amended and restated our existing credit agreement providing for a five-year $500 million senior unsecured revolving credit facility with a syndicate of lenders. The credit facility, which was previously set to expire in April 2024, was extended through April 2027. We may request that the lenders’ aggregate commitments of $500 million under the facility be increased by up to an additional $200 million. Certain of our traditional U.S. life insurance subsidiaries, Unum Life Insurance Company of America, Provident Life and Accident Insurance Company, and Colonial Life & Accident Insurance Company, joined the agreement and may borrow under the credit facility, and we can elect to add additional insurance subsidiaries to the facility at any later date. Any obligation of a subsidiary under the credit facility is several only and not joint and is subject to an unconditional guarantee by Unum Group. We may also request, on up to two occasions, that the lenders' commitment termination dates be extended by one year. Borrowings under the credit facility are subject to financial covenants, negative covenants, and events of default that are customary. The two primary financial covenants include limitations based on our leverage ratio and consolidated net worth. We are also subject to covenants that limit subsidiary indebtedness. The credit facility provides for borrowings at an interest rate based on the prime rate, the federal funds rate or the Secured Overnight Financing Rate. The credit facility also provides for the issuance of letters of credit subject to certain terms and limitations. At March 31, 2022, there were no borrowed amounts outstanding under the credit facility and letters of credit totaling $0.4 million had been issued. |
Allowance for Expected Credit Losses on Premiums Receivable | Allowance for Expected Credit Losses on Premiums Receivable At March 31, 2022 and December 31, 2021, the allowance for expected credit losses on premiums receivables was $35.0 million and $34.2 million, respectively, on gross premiums receivable of $600.9 million and $530.7 million, respectively. The increase in the allowance of $0.8 million during the three months ended March 31, 2022 was driven primarily by an increase in the gross premiums receivable, partially offset by improvements in unemployment levels. At March 31, 2021 and December 31, 2020, the allowance for expected credit losses on premiums receivables was $33.7 million and $38.8 million, respectively, on gross premiums receivable of $602.9 million and $525.8 million, respectively. The decrease in the allowance of $5.1 million during the three months ended March 31, 2021 was driven primarily by improvements in the age of premiums receivable and improvements in unemployment levels. |
Reinsurance | Reinsurance In December 2020, we completed the first phase of a reinsurance transaction, pursuant to which Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company, and Unum Life Insurance Company of America, wholly-owned domestic insurance subsidiaries of Unum Group, and collectively referred to as "the ceding companies", each entered into separate reinsurance agreements with Commonwealth Annuity and Life Insurance Company (Commonwealth), to reinsure on a coinsurance basis effective as of July 1, 2020, approximately 75 percent of the Closed Block individual disability business, primarily direct business written by the ceding companies. On March 31, 2021, we completed the second phase of the reinsurance transaction, pursuant to which the ceding companies and Commonwealth amended and restated their respective reinsurance agreements to reinsure on a coinsurance and modified coinsurance basis effective as of January 1, 2021, a substantial portion of the remaining Closed Block individual disability business that was not ceded in December 2020, primarily business previously assumed by the ceding companies. Commonwealth established and will maintain collateralized trust accounts for the benefit of the ceding companies to secure its obligations under the reinsurance agreements. In December 2020, Provident Life and Casualty Insurance Company (PLC), also a wholly-owned domestic insurance subsidiary of Unum Group, entered into an agreement with Commonwealth whereby PLC will provide a 12-year volatility cover to Commonwealth for the active life cohort (ALR cohort). On March 31, 2021, PLC and Commonwealth amended and restated this agreement to incorporate the ALR cohort related to the additional business that was reinsured between the ceding companies and Commonwealth as part of the second phase of the transaction. As part of the amended and restated volatility cover, PLC received a payment from Commonwealth of $17.9 million. At the end of the 12-year coverage period, Commonwealth will retain the remaining incidence and claims risk on the ALR cohort of the ceded business. In connection with the second phase of the reinsurance transaction, Commonwealth paid a total ceding commission to the ceding companies of $18.2 million. The ceding companies transferred assets of $767.0 million, which consisted primarily of cash and fixed maturity securities. In addition, we recognized the following in the first quarter of 2021 related to the second phase: • Net realized investment gains totaling $67.6 million related to the transfer of investments. • Increase in benefits and change in reserves for future benefits of $133.1 million resulting from the realization of previously unrealized investment gains and losses recorded in accumulated other comprehensive income. • Transaction costs totaling $6.2 million. • Reinsurance recoverable of $990.0 million related to the policies on claim status (DLR cohort). • Payable of $307.2 million related to the portfolio of invested assets associated with the business ceded on a modified coinsurance basis. • Cost of reinsurance, or prepaid reinsurance premium, of $43.1 million related to the DLR cohort. The total cost of reinsurance recognized on a combined basis for the first and second phases was $854.8 million for which we amortized $16.7 million and $20.0 million during the first three months of 2022 and 2021, respectively. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting policies and error corrections [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, 2021. |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | The following tables present additional information about our private equity partnerships, including commitments for additional investments which may or may not be funded: March 31, 2022 Investment Category Fair Value Redemption Term / Redemption Notice Unfunded Commitments (in millions of dollars) (in millions of dollars) Private Credit (a) $ 255.1 Not redeemable $ 127.4 36.5 Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice 11.3 Total Private Credit 291.6 138.7 Private Equity (b) 402.6 Not redeemable 277.1 21.8 Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice 45.9 Total Private Equity 424.4 323.0 Real Assets (c) 271.0 Not redeemable 299.0 58.9 Quarterly / 90 days notice — Total Real Assets 329.9 299.0 Total Partnerships $ 1,045.9 $ 760.7 December 31, 2021 Investment Category Fair Value Redemption Term / Redemption Notice Unfunded Commitments (in millions of dollars) (in millions of dollars) Private Credit (a) $ 240.6 Not redeemable $ 143.7 38.8 Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice 6.8 Total Private Credit 279.4 150.5 Private Equity (b) 365.8 Not redeemable 274.3 18.8 Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice 50.3 Total Private Equity 384.6 324.6 Real Assets (c) 256.2 Not redeemable 278.1 58.4 Quarterly / 90 days notice — Total Real Assets 314.6 278.1 Total Partnerships $ 978.6 $ 753.2 |
Fair Values by Fair Value Hierarchy Input level | The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used: March 31, 2022 Level 1 Level 2 Level 3 NAV Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ 93.1 $ 444.2 $ — $ — $ 537.3 States, Municipalities, and Political Subdivisions 10.5 4,296.8 — — 4,307.3 Foreign Governments — 1,044.3 20.4 — 1,064.7 Public Utilities 530.1 5,304.8 13.7 — 5,848.6 Mortgage/Asset-Backed Securities — 509.3 49.8 — 559.1 All Other Corporate Bonds 7,637.8 19,906.7 80.7 — 27,625.2 Redeemable Preferred Stocks — 3.8 — — 3.8 Total Fixed Maturity Securities 8,271.5 31,509.9 164.6 — 39,946.0 Other Long-term Investments Derivatives Foreign Exchange Contracts — 47.3 — — 47.3 Total Derivatives — 47.3 — — 47.3 Perpetual Preferred and Equity Securities — 27.5 10.5 — 38.0 Private Equity Partnerships — — — 1,045.9 1,045.9 Total Other Long-term Investments — 74.8 10.5 1,045.9 1,131.2 Total Financial Instrument Assets Carried at Fair Value $ 8,271.5 $ 31,584.7 $ 175.1 $ 1,045.9 $ 41,077.2 Liabilities Other Liabilities Derivatives Forwards $ — $ 1.0 $ — $ — $ 1.0 Foreign Exchange Contracts — 34.4 — — 34.4 Embedded Derivative in Modified Coinsurance Arrangement — — 33.5 — 33.5 Total Derivatives — 35.4 33.5 — 68.9 Total Financial Instrument Liabilities Carried at Fair Value $ — $ 35.4 $ 33.5 $ — $ 68.9 December 31, 2021 Level 1 Level 2 Level 3 NAV Total (in millions of dollars) Assets Fixed Maturity Securities United States Government and Government Agencies and Authorities $ — $ 580.1 $ — $ — $ 580.1 States, Municipalities, and Political Subdivisions — 4,714.1 13.4 — 4,727.5 Foreign Governments — 1,125.8 20.8 — 1,146.6 Public Utilities 230.8 6,140.7 44.5 — 6,416.0 Mortgage/Asset-Backed Securities — 451.1 187.2 — 638.3 All Other Corporate Bonds 3,288.7 25,673.2 861.5 — 29,823.4 Redeemable Preferred Stocks — 4.1 — — 4.1 Total Fixed Maturity Securities 3,519.5 38,689.1 1,127.4 — 43,336.0 Other Long-term Investments Derivatives Foreign Exchange Contracts — 39.5 — — 39.5 Total Derivatives — 39.5 — — 39.5 Perpetual Preferred and Equity Securities 27.9 5.8 — 33.7 Private Equity Partnerships — — — 978.6 978.6 Total Other Long-term Investments — 67.4 5.8 978.6 1,051.8 Total Financial Instrument Assets Carried at Fair Value $ 3,519.5 $ 38,756.5 $ 1,133.2 $ 978.6 $ 44,387.8 Liabilities Other Liabilities Derivatives Foreign Exchange Contracts $ — $ 35.0 $ — $ — $ 35.0 Embedded Derivative in Modified Coinsurance Arrangement — — 30.1 — 30.1 Total Derivatives — 35.0 30.1 — 65.1 Total Financial Instrument Liabilities Carried at Fair Value $ — $ 35.0 $ 30.1 $ — $ 65.1 |
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 March 31, 2022 Fair Value Beginning of Year Total Realized Level 3 Transfers Fair Value End of Period Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in Earnings OCI (1) Purchases Sales Into Out of OCI Earnings (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 13.4 $ — $ — $ — $ — $ — $ (13.4) $ — $ — $ — Foreign Governments 20.8 — (0.4) — — — — 20.4 (0.4) — Public Utilities 44.5 (4.1) 2.2 — — 15.6 (44.5) 13.7 2.2 — Mortgage/Asset-Backed Securities 187.2 — (9.2) 7.3 — — (135.5) 49.8 (9.2) — All Other Corporate Bonds 861.5 — (5.7) 2.6 — 13.2 (790.9) 80.7 (5.7) — Total Fixed Maturity Securities 1,127.4 (4.1) (13.1) 9.9 — 28.8 (984.3) 164.6 (13.1) — Perpetual Preferred and Equity Securities 5.8 2.8 — 1.9 — — — 10.5 — 2.8 Embedded Derivative in Modified Coinsurance Arrangement (30.1) (3.4) — — — — — (33.5) — (3.4) (1) Other Comprehensive Income (Loss) Three Months Ended March 31, 2021 Fair Value Beginning of Year Total Realized Level 3 Transfers Fair Value End of Period Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in Earnings OCI Purchases Sales Into Out of OCI Earnings (in millions of dollars) Fixed Maturity Securities States, Municipalities, and Political Subdivisions $ 15.5 $ — $ — $ — $ — $ — $ (15.5) $ — $ — $ — Foreign Governments 21.8 — (0.1) — — — — 21.7 (0.1) — Public Utilities 185.7 — (4.6) — — 36.0 (113.7) 103.4 (4.6) — Mortgage/Asset-Backed Securities 81.3 — (34.5) — (32.6) 86.1 (23.1) 77.2 (34.5) — All Other Corporate Bonds 943.1 — (13.8) — — — (430.1) 499.2 (13.8) — Total Fixed Maturity Securities 1,247.4 — (53.0) — (32.6) 122.1 (582.4) 701.5 (53.0) — Perpetual Preferred and Equity Securities 4.7 — — — — 0.5 — 5.2 — — Embedded Derivative in Modified Coinsurance Arrangement (39.8) 16.9 — — — — — (22.9) — 16.9 |
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. Unobservable inputs for fixed maturity securities are weighted by the fair value of the securities. 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. March 31, 2022 Fair Value Valuation Method Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities Public Utilities $ 13.7 Discounted Cash Flows Projected Liability Cash Flows (a) Investment Analyst Assumptions All Other Corporate Bonds - Private 17.4 Market Approach Volatility of Credit Market Convention (c) (d) 5.61% - 5.61% / 5.61% Priced at Par Value Perpetual Preferred and Equity Securities 10.5 Market Approach Market Convention (d) Priced at Cost, Owner's Equity, or Most Recent Round Embedded Derivative in Modified Coinsurance Arrangement (33.5) Discounted Cash Flows Projected Liability Cash Flows Weighted Spread of Swap Curve (e) Actuarial Assumptions 0.8% December 31, 2021 Fair Value Valuation Method Unobservable Input Range/Weighted Average (in millions of dollars) Fixed Maturity Securities All Other Corporate Bonds - Private $ 111.8 Market Approach Lack of Marketability Volatility of Credit (b) (c) 0.14% - 0.73% / 0.51% 6.30% - 6.30% / 6.30% Perpetual Preferred and Equity Securities 5.8 Market Approach Market Convention (d) Priced at Cost or Owner's Equity Embedded Derivative in Modified Coinsurance Arrangement (30.1) Discounted Cash Flows Projected Liability Cash Flows Weighted Spread of Swap Curve (e) Actuarial Assumptions 0.7% (a) Represents a decision to price based on discounted expected future cash flows (b) Represents basis point adjustments to apply a discount due to the illiquidity of an investment (c) Represents basis point adjustments for credit-specific factors (d) Represents a decision to price based on par value, cost, owner's equity, or the price of the most recent capital funding round when limited data is available (e) Represents various actuarial assumptions required to derive the liability cash flows. Fair value of embedded derivative is most often driven by the change in the weighted average credit spread to the swap curve for the assets backing the hypothetical loan |
Carrying Amount and Fair Value of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: March 31, 2022 Estimated Fair Value Level 1 Level 2 Level 3 Total Carrying Value (in millions of dollars) Assets Mortgage Loans $ — $ 2,517.7 $ — $ 2,517.7 $ 2,529.5 Policy Loans — — 3,680.8 3,680.8 3,573.5 Other Long-term Investments Miscellaneous Long-term Investments — 23.3 7.5 30.8 30.8 Total Financial Instrument Assets Not Carried at Fair Value $ — $ 2,541.0 $ 3,688.3 $ 6,229.3 $ 6,133.8 Liabilities Long-term Debt $ 3,036.2 $ 499.9 $ — $ 3,536.1 $ 3,442.9 Payable for Collateral on FHLB Funding Agreements — 178.2 — 178.2 178.2 Other Liabilities Unfunded Commitments — 0.7 — 0.7 0.7 Total Financial Instrument Liabilities Not Carried at Fair Value $ 3,036.2 $ 678.8 $ — $ 3,715.0 $ 3,621.8 December 31, 2021 Estimated Fair Value Level 1 Level 2 Level 3 Total Carrying Value (in millions of dollars) Assets Mortgage Loans $ — $ 2,677.8 $ — $ 2,677.8 $ 2,560.4 Policy Loans — — 3,807.1 3,807.1 3,662.9 Other Long-term Investments Miscellaneous Long-term Investments — 22.1 9.5 31.6 31.6 Total Financial Instrument Assets Not Carried at Fair Value $ — $ 2,699.9 $ 3,816.6 $ 6,516.5 $ 6,254.9 Liabilities Long-term Debt $ 2,237.3 $ 1,641.8 $ — $ 3,879.1 $ 3,442.2 Payables for Collateral on FHLB Funding Agreements — 160.9 — 160.9 160.9 Other Liabilities Unfunded Commitments — 0.7 — 0.7 0.7 Total Financial Instrument Liabilities Not Carried at Fair Value $ 2,237.3 $ 1,803.4 $ — $ 4,040.7 $ 3,603.8 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of Securities by Security Type | At March 31, 2022 and December 31, 2021, 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: March 31, 2022 Amortized ACL (1) Gross Gross Fair (in millions of dollars) United States Government and Government Agencies and Authorities $ 461.8 $ — $ 77.0 $ 1.5 $ 537.3 States, Municipalities, and Political Subdivisions 4,223.4 — 307.3 223.4 4,307.3 Foreign Governments 933.7 — 179.2 48.2 1,064.7 Public Utilities 5,235.7 4.1 687.4 70.4 5,848.6 Mortgage/Asset-Backed Securities 536.4 — 23.4 0.7 559.1 All Other Corporate Bonds 26,274.7 — 1,931.0 580.5 27,625.2 Redeemable Preferred Stocks 4.0 — — 0.2 3.8 Total Fixed Maturity Securities $ 37,669.7 $ 4.1 $ 3,205.3 $ 924.9 $ 39,946.0 December 31, 2021 Amortized ACL (1) Gross Gross Fair (in millions of dollars) United States Government and Government Agencies and Authorities $ 460.1 $ — $ 120.1 $ 0.1 $ 580.1 States, Municipalities, and Political Subdivisions 4,150.2 — 584.2 6.9 4,727.5 Foreign Governments 952.0 — 215.3 20.7 1,146.6 Public Utilities 5,266.4 — 1,159.4 9.8 6,416.0 Mortgage/Asset-Backed Securities 587.9 — 50.4 — 638.3 All Other Corporate Bonds 25,966.1 — 3,919.9 62.6 29,823.4 Redeemable Preferred Stocks 4.0 — 0.1 — 4.1 Total Fixed Maturity Securities $ 37,386.7 $ — $ 6,049.4 $ 100.1 $ 43,336.0 (1) Allowance for Credit Losses |
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. March 31, 2022 Less Than 12 Months 12 Months or Greater Fair Gross Fair Gross (in millions of dollars) United States Government and Government Agencies and Authorities $ 24.4 $ 1.4 $ 1.9 $ 0.1 States, Municipalities, and Political Subdivisions 1,958.7 223.2 1.2 0.2 Foreign Governments 196.6 39.2 35.1 9.0 Public Utilities 826.3 59.2 59.2 11.2 Mortgage/Asset-Backed Securities 102.6 0.7 0.1 — All Other Corporate Bonds 7,072.4 516.8 416.1 63.7 Redeemable Preferred Stocks 3.8 0.2 — — Total Fixed Maturity Securities $ 10,184.8 $ 840.7 $ 513.6 $ 84.2 December 31, 2021 Less Than 12 Months 12 Months or Greater Fair Gross Fair Gross (in millions of dollars) United States Government and Government Agencies and Authorities $ 9.3 $ 0.1 $ — $ — States, Municipalities, and Political Subdivisions 326.4 6.9 0.4 — Foreign Governments 234.4 18.9 10.7 1.8 Public Utilities 263.3 9.1 17.6 0.7 Mortgage/Asset-Backed Securities 29.2 — 0.1 — All Other Corporate Bonds 2,146.3 51.6 199.4 11.0 Total Fixed Maturity Securities $ 3,008.9 $ 86.6 $ 228.2 $ 13.5 |
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. March 31, 2022 Amortized Cost, Net of ACL Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 894.4 $ 16.3 $ 880.1 $ 0.3 $ 30.3 Over 1 year through 5 years 6,651.9 253.2 6,063.1 14.3 827.7 Over 5 years through 10 years 10,860.0 864.3 7,695.0 239.3 3,790.0 Over 10 years 18,722.9 2,048.1 14,153.0 670.3 5,947.7 37,129.2 3,181.9 28,791.2 924.2 10,595.7 Mortgage/Asset-Backed Securities 536.4 23.4 456.4 0.7 102.7 Total Fixed Maturity Securities $ 37,665.6 $ 3,205.3 $ 29,247.6 $ 924.9 $ 10,698.4 December 31, 2021 Amortized Cost, Net of ACL Unrealized Gain Position Unrealized Loss Position Gross Gain Fair Value Gross Loss Fair Value (in millions of dollars) 1 year or less $ 767.3 $ 17.6 $ 756.0 $ 0.1 $ 28.9 Over 1 year through 5 years 6,613.2 540.2 7,050.5 6.0 96.9 Over 5 years through 10 years 10,614.3 1,453.3 10,905.0 26.0 1,136.6 Over 10 years 18,804.0 3,987.9 20,778.4 68.0 1,945.4 36,798.8 5,999.0 39,489.9 100.1 3,207.8 Mortgage/Asset-Backed Securities 587.9 50.4 609.0 — 29.3 Total Fixed Maturity Securities $ 37,386.7 $ 6,049.4 $ 40,098.9 $ 100.1 $ 3,237.1 |
Distribution by External Credit Rating for Fixed Maturity Securities | The following chart depicts an analysis of our fixed maturity security portfolio between investment-grade and below-investment-grade categories as of March 31, 2022: Gross Unrealized Loss Fair Value Gross Unrealized Gain Amount Percent of Total Gross Unrealized Loss (in millions of dollars) Investment-Grade $ 37,423.1 $ 3,132.0 $ 878.9 95.0 % Below-Investment-Grade 2,522.9 73.3 46.0 5.0 Total Fixed Maturity Securities $ 39,946.0 $ 3,205.3 $ 924.9 100.0 % |
Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities, which were classified as "public utilities" at March 31, 2022 and "all other corporate bonds" at March 31, 2021: Three Months Ended March 31 2022 2021 (in millions of dollars) Balance, beginning of period $ — $ 6.8 Credit losses on securities for which credit losses were not previously recorded 4.1 — Change in allowance on securities with allowance recorded in previous period — 0.5 Balance, end of period $ 4.1 $ 7.3 |
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 March 31 2022 2021 (in millions of dollars) Income Tax Credits $ 2.1 $ 5.4 Amortization, Net of Tax (1.5) (3.7) Income Tax Benefit $ 0.6 $ 1.7 |
Mortgage Loans by Property Type and Geographic Region | The carrying amount of mortgage loans by property type and geographic region are presented below. March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Amount Percent of Total Carrying Amount Percent of Total Property Type Apartment $ 715.6 28.3 % $ 780.0 30.5 % Industrial 746.7 29.5 734.4 28.7 Office 491.4 19.4 467.2 18.2 Retail 530.6 21.0 533.3 20.8 Other 45.2 1.8 45.5 1.8 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % Region New England $ 54.3 2.1 % $ 54.9 2.1 % Mid-Atlantic 194.2 7.7 214.7 8.4 East North Central 314.9 12.4 298.4 11.7 West North Central 186.5 7.4 193.1 7.5 South Atlantic 585.3 23.2 582.1 22.7 East South Central 119.6 4.7 120.7 4.7 West South Central 226.5 9.0 243.2 9.6 Mountain 288.8 11.4 290.6 11.3 Pacific 559.4 22.1 562.7 22.0 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % |
Schedule of Participating Mortgage Loans by Internal Credit Rating and Loan to Value | The following tables present information about mortgage loans by the applicable internal quality indicators: March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Amount Percent of Total Carrying Amount Percent of Total Internal Mortgage Rating AA $ 27.2 1.1 % $ 27.3 1.1 % A 702.4 27.8 709.6 27.7 BBB 1,779.1 70.3 1,802.6 70.4 BB 20.8 0.8 20.9 0.8 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % Loan-to-Value Ratio (1) <= 65% $ 1,322.4 52.3 % $ 1,346.1 52.6 % > 65% <= 75% 1,070.6 42.3 1,076.8 42.0 > 75% <= 85% 124.1 4.9 114.9 4.5 > 85% 12.4 0.5 22.6 0.9 Total $ 2,529.5 100.0 % $ 2,560.4 100.0 % (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property |
Mortgage Loans by Credit Quality Indicators | The followin g tables present the amortized cost of our mortgage loans by year of origination and internal quality indicators at March 31, 2022 and December 31, 2021, respectively : March 31, 2022 Prior to 2018 2018 2019 2020 2021 2022 Total (in millions of dollars) Internal Mortgage Rating AA $ 3.3 $ 23.9 $ — $ — $ — $ — $ 27.2 A 489.6 78.6 28.6 17.5 81.4 7.9 703.6 BBB 722.9 273.9 330.1 162.1 270.3 26.3 1,785.6 BB 15.0 6.0 — — — — 21.0 Total Amortized Cost 1,230.8 382.4 358.7 179.6 351.7 34.2 2,537.4 Allowance for credit losses (3.6) (1.4) (1.4) (0.6) (0.8) (0.1) (7.9) Carrying Amount $ 1,227.2 $ 381.0 $ 357.3 $ 179.0 $ 350.9 $ 34.1 $ 2,529.5 Loan-to-Value Ratio (1) <=65% $ 887.9 $ 171.0 $ 80.2 $ 53.9 $ 123.9 $ 7.9 $ 1,324.8 >65<=75% 211.4 205.4 278.5 125.7 227.8 26.3 1,075.1 >75%<=85% 124.8 — — — — — 124.8 >85% 6.7 6.0 — — — — 12.7 Total Amortized Cost 1,230.8 382.4 358.7 179.6 351.7 34.2 2,537.4 Allowance for credit losses (3.6) (1.4) (1.4) (0.6) (0.8) (0.1) (7.9) Carrying Amount $ 1,227.2 $ 381.0 $ 357.3 $ 179.0 $ 350.9 $ 34.1 $ 2,529.5 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property December 31, 2021 Prior to 2017 2017 2018 2019 2020 2021 Total (in millions of dollars) Internal Mortgage Rating AA $ 3.3 $ — $ 24.0 $ — $ — $ — $ 27.3 A 414.6 68.0 71.1 28.9 17.6 110.6 710.8 BBB 561.2 227.3 283.3 331.9 163.1 242.6 1,809.4 BB 5.0 10.2 6.0 — — — 21.2 Total Amortized Cost 984.1 305.5 384.4 360.8 180.7 353.2 2,568.7 Allowance for credit losses (2.6) (1.4) (1.4) (1.4) (0.7) (0.8) (8.3) Carrying Amount $ 981.5 $ 304.1 $ 383.0 $ 359.4 $ 180.0 $ 352.4 $ 2,560.4 Loan-to-Value Ratio (1) <=65% $ 779.1 $ 146.9 $ 163.0 $ 80.7 $ 54.3 $ 124.7 $ 1,348.7 >65<=75% 115.7 115.4 215.4 280.1 126.4 228.5 1,081.5 >75%<=85% 89.3 26.3 — — — — 115.6 >85% — 16.9 6.0 — — — 22.9 Total Amortized Cost 984.1 305.5 384.4 360.8 180.7 353.2 2,568.7 Allowance for credit losses (2.6) (1.4) (1.4) (1.4) (0.7) (0.8) (8.3) Carrying Amount $ 981.5 $ 304.1 $ 383.0 $ 359.4 $ 180.0 $ 352.4 $ 2,560.4 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property |
Financing Receivable, Allowance for Credit Loss | The following table presents a roll-forward of allowance for expected credit losses by loan-to-value ratio for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 Beginning of Year Current Period Provisions Write-Offs Recoveries End of Period (in millions of dollars) Loan-to-Value Ratio (1) <=65% $ 2.6 $ (0.2) $ — $ — $ 2.4 >65<=75% 4.7 (0.2) — — 4.5 >75%<=85% 0.7 — — — 0.7 >85% 0.3 — — — 0.3 Total $ 8.3 $ (0.4) $ — $ — $ 7.9 Three Months Ended March 31, 2021 Beginning of Year Current Period Provisions Write-Offs Recoveries End of Period (in millions of dollars) Loan-to-Value Ratio (1) <=65% $ 3.4 $ (0.4) $ — $ — $ 3.0 >65<=75% 7.3 (1.0) — — 6.3 >75%<=85% 1.3 (0.1) — — 1.2 >85% 1.1 (0.1) — — 1.0 Total $ 13.1 $ (1.6) $ — $ — $ 11.5 (1) Loan-to Value Ratio utilizes the most recent internal appraisal of the property |
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: March 31, 2022 December 31, 2021 Overnight and Continuous (in millions of dollars) Borrowings United States Government and Government Agencies and Authorities $ 0.4 $ 0.1 State, Municipalities, and Political Subdivisions 0.6 0.1 Public Utilities 4.3 3.1 All Other Corporate Bonds 68.0 91.5 Total Borrowings $ 73.3 $ 94.8 Gross Amount of Recognized Liability for Securities Lending Transactions 73.3 94.8 Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein $ — $ — |
Federal Home Loan Bank Common Stock Carrying Amounts, Amounts Posted, and Advances Received | The carrying value of common stock owned, collateral posted, and advances received are as follows: March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Value of FHLB Common Stock $ 23.3 $ 22.1 Advances from FHLB 178.2 160.9 Carrying Value of Collateral Posted to FHLB Fixed Maturity Securities $ 640.9 $ 786.1 Commercial Mortgage Loans 886.7 930.0 Total Carrying Value of Collateral Posted to FHLB $ 1,527.6 $ 1,716.1 |
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. March 31, 2022 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 $ 47.3 $ — $ 47.3 $ (13.0) $ (32.6) $ 1.7 Securities Lending 240.7 — 240.7 (167.4) (73.3) — Total $ 288.0 $ — $ 288.0 $ (180.4) $ (105.9) $ 1.7 Financial Liabilities: Derivatives $ 35.4 $ — $ 35.4 $ (35.2) $ — $ 0.2 Securities Lending 73.3 — 73.3 (73.3) — — Total $ 108.7 $ — $ 108.7 $ (108.5) $ — $ 0.2 December 31, 2021 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 $ 39.5 $ — $ 39.5 $ (9.8) $ (28.4) $ 1.3 Securities Lending 283.7 — 283.7 (188.9) (94.8) — Total $ 323.2 $ — $ 323.2 $ (198.7) $ (123.2) $ 1.3 Financial Liabilities: Derivatives $ 35.0 $ — $ 35.0 $ (34.0) $ — $ 1.0 Securities Lending 94.8 — 94.8 (94.8) — — Total $ 129.8 $ — $ 129.8 $ (128.8) $ — $ 1.0 |
Net Investment Income | Net Investment Income Net investment income reported in our consolidated statements of income is presented below. Three Months Ended March 31 2022 2021 (in millions of dollars) Fixed Maturity Securities $ 455.5 $ 469.8 Derivatives 14.4 16.2 Mortgage Loans 27.0 26.3 Policy Loans 4.7 4.8 Other Long-term Investments Perpetual Preferred Securities 1 2.9 3.6 Private Equity Partnerships 2 32.4 35.9 Other 2.1 2.1 Short-term Investments 0.8 0.6 Gross Investment Income 539.8 559.3 Less Investment Expenses 9.6 7.5 Less Investment Income on Participation Fund Account Assets 3.0 3.1 Net Investment Income $ 527.2 $ 548.7 1 The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2022 related to perpetual preferred securities still held at March 31, 2022 was $2.4 million. The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2021 related to perpetual preferred securities still held at March 31, 2021 was $2.7 million. |
Investment Gains and Losses Reported in Consolidated Statements of Income | Investment Gain and Loss Investment gains and losses are as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Fixed Maturity Securities Gross Gains on Sales 1 $ 0.3 $ 71.3 Gross Losses on Sales (8.8) (1.1) Credit Losses (4.1) (8.3) Mortgage Loans and Other Invested Assets Gross Gains on Sales 1.4 2.5 Gross Losses on Sales — — Change in Allowance for Credit Losses 0.5 1.7 Embedded Derivative in Modified Coinsurance Arrangement (3.4) 16.9 All Other Derivatives 1.8 1.7 Foreign Currency Transactions (1.5) (0.1) Net Investment Gain (Loss) $ (13.8) $ 84.6 1 Gross gains on sales of fixed maturity securities for the three months ended March 31, 2021 includes gains of $67.6 million as a result of the second phase of the reinsurance transaction that we completed during the first quarter of 2021. See Note 12 for further discussion. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Nature and Amount of Collateral Received From and Posted To Derivative Counterparty | The table below summarizes the nature and amount of collateral received from and posted to our derivative counterparties. March 31, 2022 December 31, 2021 (in millions of dollars) Carrying Value of Collateral Received from Counterparties Cash $ 35.0 $ 32.0 Carrying Value of Collateral Posted to Counterparties Fixed Maturity Securities $ 27.6 $ 27.6 |
Fair Value Hedges Carrying Amount of Hedged Assets and Liabilities and Cumulative Basis Adjustments | The following table summarizes the carrying amount of hedged assets and the related cumulative basis adjustments related to our fair value hedges: Carrying Amount of Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (in millions of dollars) Fixed maturity securities: Receive fixed functional currency interest, pay fixed foreign currency interest $ 466.8 $ 466.3 $ (3.3) $ 2.0 |
Location and Fair Values of Derivative Financial Instruments | The following tables summarize the fair values and notional amounts of derivative financial instruments, as reported in our consolidated balance sheets. Derivative assets are included in other long-term investments, while derivative liabilities are included in other liabilities within our consolidated balance sheets. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated. March 31, 2022 Derivative Assets Derivative Liabilities Notional Fair Fair (in millions of dollars) Designated as Hedging Instruments Cash Flow Hedges Forward Benchmark Interest Rate Locks $ 15.0 $ — $ 1.0 Foreign Currency Interest Rate Swaps 181.3 14.9 7.8 Total Cash Flow Hedges 196.3 14.9 8.8 Fair Value Hedges Foreign Currency Interest Rate Swaps 531.6 30.4 5.5 Total Designated as Hedging Instruments $ 727.9 $ 45.3 $ 14.3 Not Designated as Hedging Instruments Credit Default Swaps $ 11.3 $ — $ — Foreign Currency Forwards 58.2 — — Foreign Currency Interest Rate Swaps 148.2 2.0 21.1 Total Return Swaps 83.9 — — Embedded Derivative in Modified Coinsurance Arrangement — — 33.5 Total Not Designated as Hedging Instruments $ 301.6 $ 2.0 $ 54.6 Total Derivatives $ 1,029.5 $ 47.3 $ 68.9 December 31, 2021 Derivative Assets Derivative Liabilities Notional Fair Fair (in millions of dollars) Designated as Hedging Instruments Cash Flow Hedges Foreign Currency Interest Rate Swaps $ 181.3 $ 16.2 $ 7.0 Fair Value Hedges Foreign Currency Interest Rate Swaps 498.5 21.9 5.7 Total Designated as Hedging Instruments $ 679.8 $ 38.1 $ 12.7 Not Designated as Hedging Instruments Credit Default Swaps $ 11.6 $ — $ — Foreign Currency Forwards 41.7 — — Foreign Currency Interest Rate Swaps 148.2 1.4 22.3 Total Return Swaps 89.2 — — Embedded Derivative in Modified Coinsurance Arrangement — — 30.1 Total Not Designated as Hedging Instruments $ 290.7 $ 1.4 $ 52.4 Total Derivatives $ 970.5 $ 39.5 $ 65.1 |
Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments | The following tables summarize the location of gains and losses of derivative financial instruments designated as hedging instruments, as reported in our consolidated statements of income. Three Months Ended March 31 2022 2021 Net Investment Income Net Investment Gain (Loss) Interest and Debt Expense Net Investment Income Net Investment Gain (Loss) Interest and Debt Expense (in millions of dollars) Total Income and Expense Presented in the Consolidated Statements of Income of Which Hedged Items are Recorded $ 527.2 $ (13.8) $ 46.9 $ 548.7 $ 84.6 $ 44.4 Gain (Loss) on Cash Flow Hedging Relationships Interest Rate Swaps: Hedged items 50.4 — 0.7 52.0 2.4 7.3 Derivatives Designated as Hedging Instruments 13.4 — — 15.5 1.8 0.1 Foreign Exchange Contracts: Hedged items 2.8 — — 3.1 — — Derivatives Designated as Hedging Instruments 0.2 — — 0.3 — — Gain (Loss) on Fair Value Hedging Relationships Foreign Exchange Contracts Hedged items 2.7 (5.3) — 2.3 (9.5) — Derivatives Designated as Hedging Instruments 1.4 5.3 — 1.0 9.5 — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the location of gains and losses of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of comprehensive income (loss). Three Months Ended March 31 2022 2021 (in millions of dollars) Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Forwards $ (1.0) $ — Foreign Exchange Contracts (2.1) (1.5) Total $ (3.1) $ (1.5) |
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 March 31 2022 2021 (in millions of dollars) Net Investment Gain (Loss) Credit Default Swaps $ — $ (0.1) Foreign Exchange Contracts 1.8 1.8 Embedded Derivative in Modified Coinsurance Arrangement (3.4) 16.9 Total $ (1.6) $ 18.6 Other Expenses (Gain) Loss on Total Return Swaps $ 5.7 $ 1.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows: Net Unrealized Gain on Securities Net Gain on Hedges Foreign Currency Translation Adjustment Unrecognized Pension and Postretirement Benefit Costs Total (in millions of dollars) Balance at December 31, 2021 $ 962.2 $ 61.8 $ (273.9) $ (396.0) $ 354.1 Other Comprehensive Income (Loss) Before Reclassifications (906.1) 0.4 (31.9) 1.1 (936.5) Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 10.0 (10.8) — 3.1 2.3 Net Other Comprehensive Income (Loss) (896.1) (10.4) (31.9) 4.2 (934.2) Balance at March 31, 2022 $ 66.1 $ 51.4 $ (305.8) $ (391.8) $ (580.1) Balance at December 31, 2020 $ 1,067.7 $ 97.8 $ (261.3) $ (530.0) $ 374.2 Other Comprehensive Income (Loss) Before Reclassifications (447.2) (6.8) 7.3 (0.5) (447.2) Amounts Reclassified from Accumulated Other Comprehensive Income or Loss 57.7 (13.9) — 4.3 48.1 Net Other Comprehensive Income (Loss) (389.5) (20.7) 7.3 3.8 (399.1) Balance at March 31, 2021 $ 678.2 $ 77.1 $ (254.0) $ (526.2) $ (24.9) |
Schedule of Components of Unrealized Gain (Loss) on Securities | The net unrealized gain on securities consists of the following components: March 31 December 31 2022 2021 Change (in millions of dollars) Fixed Maturity Securities $ 2,280.4 $ 5,949.3 $ (3,668.9) Deferred Acquisition Costs (33.6) (70.4) 36.8 Reserves for Future Policy and Contract Benefits (2,104.4) (4,659.5) 2,555.1 Reinsurance Recoverable 74.8 132.1 (57.3) Income Tax (151.1) (389.3) 238.2 Total $ 66.1 $ 962.2 $ (896.1) March 31 December 31 2021 2020 Change (in millions of dollars) Fixed Maturity Securities $ 5,517.4 $ 7,597.6 $ (2,080.2) Deferred Acquisition Costs (66.6) (85.1) 18.5 Reserves for Future Policy and Contract Benefits (4,588.9) (6,225.6) 1,636.7 Reinsurance Recoverable 133.3 200.2 (66.9) Income Tax (317.0) (419.4) 102.4 Total $ 678.2 $ 1,067.7 $ (389.5) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive income (loss) were recognized in our consolidated statements of income as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Net Unrealized Gain on Securities Net Investment Gain (Loss) Net Gain (Loss) on Sales of Fixed Maturity Securities $ (8.5) $ 68.3 Credit Losses on Fixed Maturity Securities (4.1) (8.3) Loss on Benefits and Change in Reserves for Future Benefits — (133.1) (12.6) (73.1) Income Tax Benefit (2.6) (15.4) Total $ (10.0) $ (57.7) Net Gain on Hedges Net Investment Income Gain on Interest Rate Swaps $ 13.4 $ 15.3 Gain on Foreign Exchange Contracts 0.3 0.5 Net Investment Gain Gain on Interest Rate Swaps — 1.8 13.7 17.6 Income Tax Expense 2.9 3.7 Total $ 10.8 $ 13.9 Unrecognized Pension and Postretirement Benefit Costs Other Expenses Amortization of Net Actuarial Loss $ (4.0) $ (5.6) Amortization of Prior Service Credit 0.1 0.1 (3.9) (5.5) Income Tax Benefit (0.8) (1.2) Total $ (3.1) $ (4.3) |
Liability for Unpaid Claims a_2
Liability for Unpaid Claims and Claim Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Changes in the liability for unpaid claims and claim adjustment expenses are as follows: 2022 2021 (in millions of dollars) Balance at January 1 $ 23,664.7 $ 24,180.2 Less Reinsurance Recoverable 8,697.8 8,378.9 Net Balance at January 1 14,966.9 15,801.3 Incurred Related to Current Year 1,856.6 1,870.3 Prior Years Interest 164.0 183.4 All Other Incurred (231.8) (66.0) Foreign Currency (64.0) 17.3 Total Incurred 1,724.8 2,005.0 Paid Related to Current Year (483.7) (472.1) Prior Years (1,337.1) (1,342.5) Total Paid (1,820.8) (1,814.6) Reserves Ceded Pursuant to Reinsurance Transaction — (990.0) Net Balance at March 31 14,870.9 15,001.7 Plus Reinsurance Recoverable 8,535.3 9,225.8 Balance at March 31 $ 23,406.2 $ 24,227.5 |
Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits to Balance Sheet Amounts | A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows: March 31 2022 2021 (in millions of dollars) Policy and Contract Benefits $ 1,874.2 $ 1,899.3 Reserves for Future Policy and Contract Benefits 45,258.0 48,112.3 Total 47,132.2 50,011.6 Less: Life Reserves for Future Policy and Contract Benefits 8,415.7 8,389.3 Accident and Health Active Life Reserves 13,205.9 12,805.9 Adjustment Related to Unrealized Investment Gains and Losses 2,104.4 4,588.9 Liability for Unpaid Claims and Claim Adjustment Expenses $ 23,406.2 $ 24,227.5 The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income or loss. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Premium Income by Major Line of Business within Each Segment | Segment information is as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Premium Income Unum US Group Disability Group Long-term Disability $ 463.9 $ 457.7 Group Short-term Disability 221.6 215.2 Group Life and Accidental Death & Dismemberment Group Life 412.6 410.0 Accidental Death & Dismemberment 42.1 41.4 Supplemental and Voluntary Voluntary Benefits 220.5 218.7 Individual Disability 113.6 115.7 Dental and Vision 70.6 67.1 1,544.9 1,525.8 Unum International Unum UK Group Long-term Disability 103.4 97.1 Group Life 32.2 27.3 Supplemental 29.0 28.0 Unum Poland 23.2 22.0 187.8 174.4 Colonial Life Accident, Sickness, and Disability 239.7 240.7 Life 101.7 96.6 Cancer and Critical Illness 89.3 89.1 430.7 426.4 Closed Block Long-term Care 174.8 177.4 Individual Disability 63.4 72.1 All Other 1.7 2.2 239.9 251.7 Total Premium Income $ 2,403.3 $ 2,378.3 |
Selected Operating Statement Data by Segment | Unum US Unum International Colonial Life Closed Block Corporate Total (in millions of dollars) Three Months Ended March 31, 2022 Premium Income $ 1,544.9 $ 187.8 $ 430.7 $ 239.9 $ — $ 2,403.3 Net Investment Income 171.0 34.5 38.1 274.8 8.8 527.2 Other Income 47.1 0.2 0.3 16.0 2.2 65.8 Adjusted Operating Revenue $ 1,763.0 $ 222.5 $ 469.1 $ 530.7 $ 11.0 $ 2,996.3 Adjusted Operating Income (Loss) $ 171.6 $ 27.2 $ 90.1 $ 94.1 $ (40.4) $ 342.6 Three Months Ended March 31, 2021 Premium Income $ 1,525.8 $ 174.4 $ 426.4 $ 251.7 $ — $ 2,378.3 Net Investment Income 179.7 26.0 37.7 297.2 8.1 548.7 Other Income 40.4 0.1 0.2 18.4 1.3 60.4 Adjusted Operating Revenue $ 1,745.9 $ 200.5 $ 464.3 $ 567.3 $ 9.4 $ 2,987.4 Adjusted Operating Income (Loss) $ 115.7 $ 26.4 $ 73.3 $ 97.0 $ (38.9) $ 273.5 |
Assets by Segment | March 31 December 31 2022 2021 (in millions of dollars) Assets Unum US $ 17,741.1 $ 18,696.3 Unum International 3,872.4 4,086.5 Colonial Life 4,759.5 4,895.9 Closed Block 36,213.4 38,287.9 Corporate 3,885.3 4,149.0 Total Assets $ 66,471.7 $ 70,115.6 |
Reconciliation of Total Revenue and Income Before Income Tax to Adjusted Operating Revenue and Adjusted Operating Income | A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows: Three Months Ended March 31 2022 2021 (in millions of dollars) Total Revenue $ 2,982.5 $ 3,072.0 Excluding: Net Investment Gain (Loss) (13.8) 84.6 Adjusted Operating Revenue $ 2,996.3 $ 2,987.4 Income Before Income Tax $ 312.1 $ 198.8 Excluding: Net Investment Gains and Losses Net Realized Investment Gain Related to Reinsurance Transaction — 67.6 Net Investment Gain (Loss), Other (13.8) 17.0 Total Net Investment Gain (Loss) (13.8) 84.6 Items Related to Closed Block Individual Disability Reinsurance Transaction Change in Benefit Reserves and Transaction Costs — (139.3) Amortization of the Cost of Reinsurance (16.7) (20.0) Total Items Related to Closed Block Individual Disability Reinsurance Transaction (16.7) (159.3) Adjusted Operating Income $ 342.6 $ 273.5 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net 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 March 31 Pension Benefits U.S. Plans U.K. Plan OPEB 2022 2021 2022 2021 2022 2021 (in millions of dollars) Service Cost $ 1.9 $ 2.4 $ — $ — $ — $ — Interest Cost 16.8 16.3 1.4 1.1 0.7 0.8 Expected Return on Plan Assets (26.5) (25.2) (3.0) (2.5) (0.1) (0.1) Amortization of: Net Actuarial (Gain) Loss 4.1 5.3 0.1 0.3 (0.2) — Prior Service Credit — — — — (0.1) (0.1) Total Net Periodic Benefit Cost (Credit) $ (3.7) $ (1.2) $ (1.5) $ (1.1) $ 0.3 $ 0.6 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity and Earnings Per Common Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Net income per common share is determined as follows: Three Months Ended March 31 2022 2021 (in millions of dollars, except share data) Numerator Net Income $ 253.5 $ 153.0 Denominator (000s) Weighted Average Common Shares - Basic 202,628.8 204,133.3 Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards 875.5 604.0 Weighted Average Common Shares - Assuming Dilution 203,504.3 204,737.3 Net Income Per Common Share Basic $ 1.25 $ 0.75 Assuming Dilution $ 1.25 $ 0.75 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Insurance Reserves and Liabilities | $ (38.3) | $ 259.3 |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Insurance Reserves and Liabilities | $ (31.8) |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments Private Equity Partnerships (Details) - Private Equity Funds - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | $ 1,045.9 | $ 978.6 | |
Alternative Investments, Unfunded Commitments | 760.7 | 753.2 | |
Private Credit | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | [1] | 291.6 | 279.4 |
Alternative Investments, Unfunded Commitments | 138.7 | 150.5 | |
Private Credit | Not Redeemable | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | [1] | 255.1 | 240.6 |
Alternative Investments, Unfunded Commitments | 127.4 | 143.7 | |
Private Credit | Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | [1] | 36.5 | 38.8 |
Alternative Investments, Unfunded Commitments | 11.3 | 6.8 | |
Private Equity Limited Partnership | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | 424.4 | 384.6 | |
Alternative Investments, Unfunded Commitments | 323 | 324.6 | |
Private Equity Limited Partnership | Not Redeemable | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | [2] | 402.6 | 365.8 |
Alternative Investments, Unfunded Commitments | 277.1 | 274.3 | |
Private Equity Limited Partnership | Quarterly after 5.5 year lock with 90 days notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | 21.8 | 18.8 | |
Alternative Investments, Unfunded Commitments | 45.9 | 50.3 | |
Real Assets | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | [3] | 329.9 | 314.6 |
Alternative Investments, Unfunded Commitments | 299 | 278.1 | |
Real Assets | Not Redeemable | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | [3] | 271 | 256.2 |
Alternative Investments, Unfunded Commitments | 299 | 278.1 | |
Real Assets | Quarterly / 90 days notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | |||
Alternative Investments | [3] | 58.9 | 58.4 |
Alternative Investments, Unfunded Commitments | $ 0 | $ 0 | |
[1] | Private Credit - The limited partnerships described in this category employ various investment strategies, generally providing direct lending or other forms of debt financing including first-lien, second-lien, mezzanine, and subordinated loans. The limited partnerships have credit exposure to corporates, physical assets, and/or financial assets within a variety of industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail) in North America and, to a lesser extent, outside of North America. As of March 31, 2022, the estimated remaining life of the investments that do not allow for redemptions is approximately 36 percent in the next 3 years, 52 percent during the period from 3 to 5 years, 10 percent during the period from 5 to 10 years, and 2 percent during the period from 10 to 15 years. | ||
[2] | Private Equity - The limited partnerships described in this category employ various strategies generally investing in controlling or minority control equity positions directly in companies and/or assets across various industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail), primarily in private markets within North America and, to a lesser extent, outside of North America. As of March 31, 2022, the estimated remaining life of the investments that do not allow for redemptions is approximately 33 percent in the next 3 years, 16 percent during the period from 3 to 5 years, 49 percent during the period from 5 to 10 years, and 2 percent during the period from 10 to 15 years. | ||
[3] | Real Assets - The limited partnerships described in this category employ various strategies, which include investing in the equity and/or debt financing of physical assets, including infrastructure (energy, power, water/wastewater, communications), transportation (including airports, ports, toll roads, aircraft, railcars) and real estate in North America, Europe, South America, and Asia. As of March 31, 2022, the estimated remaining life of the investments that do not allow for redemptions is approximately 9 percent in the next 3 years, 47 percent during period from 3 to 5 years, 39 percent during the period from 5 to 10 years, and 5 percent during the period from 10 to 15 years. |
Fair Value Measurements by Inpu
Fair Value Measurements by Input Level (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | $ 39,946 | $ 43,336 |
Derivative Assets | 47.3 | 39.5 |
Equity Securities | 38 | 33.7 |
Other Long-term Investments | 1,280.4 | 1,203 |
Assets, Fair Value Disclosure | 41,077.2 | 44,387.8 |
Liabilities | ||
Derivative Liabilities | 68.9 | 65.1 |
Liabilities, Fair Value Disclosure | 68.9 | 65.1 |
Interest Rate Swaps | ||
Liabilities | ||
Derivative Liabilities | 1 | |
Foreign Exchange Contracts | ||
Liabilities | ||
Derivative Liabilities | 34.4 | 35 |
Embedded Derivative in Modified Coinsurance Arrangement | ||
Liabilities | ||
Derivative Liabilities | 33.5 | 30.1 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure | ||
Other Long-term Investments | 1,131.2 | 1,051.8 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 8,271.5 | 3,519.5 |
Derivative Assets | 0 | 0 |
Equity Securities | 0 | |
Other Long-term Investments | 0 | 0 |
Assets, Fair Value Disclosure | 8,271.5 | 3,519.5 |
Liabilities | ||
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Interest Rate Swaps | ||
Liabilities | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Foreign Exchange Contracts | ||
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Embedded Derivative in Modified Coinsurance Arrangement | ||
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 31,509.9 | 38,689.1 |
Derivative Assets | 47.3 | 39.5 |
Equity Securities | 27.5 | 27.9 |
Other Long-term Investments | 74.8 | 67.4 |
Assets, Fair Value Disclosure | 31,584.7 | 38,756.5 |
Liabilities | ||
Liabilities, Fair Value Disclosure | 35.4 | 35 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest Rate Swaps | ||
Liabilities | ||
Derivative Liabilities | 1 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign Exchange Contracts | ||
Liabilities | ||
Derivative Liabilities | 34.4 | 35 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Embedded Derivative in Modified Coinsurance Arrangement | ||
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 164.6 | 1,127.4 |
Derivative Assets | 0 | 0 |
Equity Securities | 10.5 | 5.8 |
Other Long-term Investments | 10.5 | 5.8 |
Assets, Fair Value Disclosure | 175.1 | 1,133.2 |
Liabilities | ||
Liabilities, Fair Value Disclosure | 33.5 | 30.1 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest Rate Swaps | ||
Liabilities | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Foreign Exchange Contracts | ||
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Embedded Derivative in Modified Coinsurance Arrangement | ||
Liabilities | ||
Derivative Liabilities | 33.5 | 30.1 |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Equity Securities | 0 | 0 |
Other Long-term Investments | 1,045.9 | 978.6 |
Assets, Fair Value Disclosure | 1,045.9 | 978.6 |
Liabilities | ||
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Interest Rate Swaps | ||
Liabilities | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Foreign Exchange Contracts | ||
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | Embedded Derivative in Modified Coinsurance Arrangement | ||
Liabilities | ||
Derivative Liabilities | 0 | 0 |
United States Government and Government Agencies and Authorities | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 537.3 | 580.1 |
United States Government and Government Agencies and Authorities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 93.1 | 0 |
United States Government and Government Agencies and Authorities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 444.2 | 580.1 |
United States Government and Government Agencies and Authorities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
United States Government and Government Agencies and Authorities | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
States, Municipalities, and Political Subdivisions | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 4,307.3 | 4,727.5 |
States, Municipalities, and Political Subdivisions | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 10.5 | 0 |
States, Municipalities, and Political Subdivisions | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 4,296.8 | 4,714.1 |
States, Municipalities, and Political Subdivisions | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 13.4 |
States, Municipalities, and Political Subdivisions | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Foreign Governments | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 1,064.7 | 1,146.6 |
Foreign Governments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Foreign Governments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 1,044.3 | 1,125.8 |
Foreign Governments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 20.4 | 20.8 |
Foreign Governments | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Public Utilities | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 5,848.6 | 6,416 |
Public Utilities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 530.1 | 230.8 |
Public Utilities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 5,304.8 | 6,140.7 |
Public Utilities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 13.7 | 44.5 |
Public Utilities | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Mortgage/Asset-backed Securities | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 559.1 | 638.3 |
Mortgage/Asset-backed Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Mortgage/Asset-backed Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 509.3 | 451.1 |
Mortgage/Asset-backed Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 49.8 | 187.2 |
Mortgage/Asset-backed Securities | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Corporate Debt Securities | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 27,625.2 | 29,823.4 |
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 7,637.8 | 3,288.7 |
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 19,906.7 | 25,673.2 |
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 80.7 | 861.5 |
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Redeemable Preferred Stocks | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 3.8 | 4.1 |
Redeemable Preferred Stocks | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Redeemable Preferred Stocks | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 3.8 | 4.1 |
Redeemable Preferred Stocks | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Redeemable Preferred Stocks | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Fixed Maturity Securities | 0 | 0 |
Foreign Exchange Contracts | ||
Assets, Fair Value Disclosure | ||
Derivative Assets | 47.3 | 39.5 |
Foreign Exchange Contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Derivative Assets | 0 | 0 |
Foreign Exchange Contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Derivative Assets | 47.3 | 39.5 |
Foreign Exchange Contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Derivative Assets | 0 | 0 |
Foreign Exchange Contracts | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Derivative Assets | 0 | 0 |
Private Equity Funds | ||
Assets, Fair Value Disclosure | ||
Alternative Investments | 1,045.9 | 978.6 |
Private Equity Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure | ||
Alternative Investments | 0 | 0 |
Private Equity Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure | ||
Alternative Investments | 0 | 0 |
Private Equity Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure | ||
Alternative Investments | 0 | 0 |
Private Equity Funds | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Assets, Fair Value Disclosure | ||
Alternative Investments | 1,045.9 | 978.6 |
Derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Liabilities | ||
Derivative Liabilities | 35.4 | 35 |
Derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Liabilities | ||
Derivative Liabilities | 33.5 | 30.1 |
Derivatives | Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share | ||
Liabilities | ||
Derivative Liabilities | $ 0 | $ 0 |
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 | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Embedded Derivative in Modified Coinsurance Arrangement | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ 0 | $ 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | (3.4) | 16.9 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (33.5) | (22.9) | $ (30.1) | $ (39.8) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (3.4) | 16.9 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases | 0 | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Sales | 0 | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | 0 | 0 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers out of Level 3 | 0 | 0 | ||
States, Municipalities, and Political Subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | 13.4 | 15.5 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (13.4) | (15.5) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Foreign Governments | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 20.4 | 21.7 | 20.8 | 21.8 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (0.4) | (0.1) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (0.4) | (0.1) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Public Utilities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 13.7 | 103.4 | 44.5 | 185.7 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (4.1) | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 2.2 | (4.6) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 15.6 | 36 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (44.5) | (113.7) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 2.2 | (4.6) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Mortgage/Asset-backed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 49.8 | 77.2 | 187.2 | 81.3 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (9.2) | (34.5) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 7.3 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | (32.6) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 86.1 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (135.5) | (23.1) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (9.2) | (34.5) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Corporate Debt Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 80.7 | 499.2 | 861.5 | 943.1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (5.7) | (13.8) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 2.6 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 13.2 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (790.9) | (430.1) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (5.7) | (13.8) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Fixed Maturity Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 164.6 | 701.5 | 1,127.4 | 1,247.4 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (4.1) | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (13.1) | (53) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 9.9 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | (32.6) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 28.8 | 122.1 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (984.3) | (582.4) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (13.1) | (53) | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Equity Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 10.5 | 5.2 | $ 5.8 | $ 4.7 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 2.8 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 1.9 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0.5 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ 2.8 | $ 0 |
Quantitative Information Regard
Quantitative Information Regarding Significant Unobservable Inputs (Details) $ in Millions | Mar. 31, 2022USD ($)Rate | Dec. 31, 2021USD ($)Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity Securities | $ | $ 38 | $ 33.7 | |
Fair Value, Inputs, Level 3 | Discounted Cash Flow | Embedded Derivative in Modified Coinsurance Arrangement | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded Derivative in Modified Coinsurance Arrangement | $ | (33.5) | (30.1) | |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | Market Approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private | $ | $ 17.4 | $ 111.8 | |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | Market Approach | Minimum | Volatility of Credit | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private, Measurement Input | [1] | 0.0561 | 0.0630 |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | Market Approach | Minimum | Lack of Marketability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private, Measurement Input | 0.0014 | ||
Fair Value, Inputs, Level 3 | Corporate Debt Securities | Market Approach | Maximum | Volatility of Credit | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private, Measurement Input | [1] | 0.0561 | 0.0630 |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | Market Approach | Maximum | Lack of Marketability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private, Measurement Input | 0.0073 | ||
Fair Value, Inputs, Level 3 | Corporate Debt Securities | Market Approach | Weighted Average | Volatility of Credit | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private, Measurement Input | [1] | 0.0561 | 0.0630 |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | Market Approach | Weighted Average | Lack of Marketability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private, Measurement Input | 0.0051 | ||
Fair Value, Inputs, Level 3 | Equity Securities | Market Approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity Securities | $ | $ 10.5 | $ 5.8 | |
Fair Value, Inputs, Level 3 | Public Utilities | Discounted Cash Flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
All Other Corporate Bonds - Private | $ | $ 13.7 | ||
[1] | Represents basis point adjustments for credit-specific factors |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments Carrying Amounts and Estimated Fair value of Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Carrying Amount | $ 2,529.5 | $ 2,560.4 |
Policy Loans | 3,573.5 | 3,662.9 |
Long-term Debt | 3,442.9 | 3,442.2 |
Unfunded Commitments | 0.7 | |
Liabilities, Fair Value Disclosure | 68.9 | 65.1 |
Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 2,517.7 | 2,677.8 |
Mortgage Loans, Carrying Amount | 2,529.5 | 2,560.4 |
Policy Loans, Fair Value Disclosure | 3,680.8 | 3,807.1 |
Policy Loans | 3,573.5 | 3,662.9 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 30.8 | 31.6 |
Miscellaneous Long-Term Investments | 30.8 | 31.6 |
Financial Instruments, Financial Assets Fair Value Disclosure | 6,229.3 | 6,516.5 |
Total Financial Instrument Assets Not Carried at Fair Value | 6,133.8 | 6,254.9 |
Long-term Debt, Fair Value Disclosure | 3,536.1 | 3,879.1 |
Long-term Debt | 3,442.9 | 3,442.2 |
Advances, Fair Value Disclosure | 178.2 | 160.9 |
Federal Home Loan Bank Funding Agreements | 178.2 | 160.9 |
Unfunded Commitments | 0.7 | 0.7 |
Liabilities, Fair Value Disclosure | 3,715 | 4,040.7 |
Total Financial Instrument Liabilities Not Carried at Fair Value | 3,621.8 | 3,603.8 |
Fair Value, Inputs, Level 1 | Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 0 | 0 |
Policy Loans, Fair Value Disclosure | 0 | 0 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 0 | 0 |
Financial Instruments, Financial Assets Fair Value Disclosure | 0 | 0 |
Long-term Debt, Fair Value Disclosure | 3,036.2 | 2,237.3 |
Advances, Fair Value Disclosure | 0 | 0 |
Unfunded Commitments | 0 | 0 |
Liabilities, Fair Value Disclosure | 3,036.2 | 2,237.3 |
Fair Value, Inputs, Level 2 | Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 2,517.7 | 2,677.8 |
Policy Loans, Fair Value Disclosure | 0 | 0 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 23.3 | 22.1 |
Financial Instruments, Financial Assets Fair Value Disclosure | 2,541 | 2,699.9 |
Long-term Debt, Fair Value Disclosure | 499.9 | 1,641.8 |
Advances, Fair Value Disclosure | 178.2 | 160.9 |
Unfunded Commitments | 0.7 | 0.7 |
Liabilities, Fair Value Disclosure | 678.8 | 1,803.4 |
Fair Value, Inputs, Level 3 | Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 0 | 0 |
Policy Loans, Fair Value Disclosure | 3,680.8 | 3,807.1 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 7.5 | 9.5 |
Financial Instruments, Financial Assets Fair Value Disclosure | 3,688.3 | 3,816.6 |
Long-term Debt, Fair Value Disclosure | 0 | 0 |
Advances, Fair Value Disclosure | 0 | 0 |
Unfunded Commitments | 0 | 0 |
Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Ceded Policy Loans | $ 3,283 | $ 3,373.7 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Percentage of Total Fair Value of Fixed Maturities Securities | 20.70% | |
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 | 63.00% | |
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 | 15.10% | |
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 | 79.30% | |
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 | 1.20% |
Amortized Cost and Fair Values
Amortized Cost and Fair Values of Securities by Security Type (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | $ 37,669.7 | $ 37,386.7 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 4.1 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3,205.3 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 924.9 | |||
Debt Securities, Available-for-sale, Total | 39,946 | 43,336 | ||
United States Government and Government Agencies and Authorities | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 461.8 | 460.1 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 77 | 120.1 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1.5 | 0.1 | ||
Debt Securities, Available-for-sale, Total | 537.3 | 580.1 | ||
States, Municipalities, and Political Subdivisions | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 4,223.4 | 4,150.2 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 307.3 | 584.2 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 223.4 | 6.9 | ||
Debt Securities, Available-for-sale, Total | 4,307.3 | 4,727.5 | ||
Foreign Governments | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 933.7 | 952 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 179.2 | 215.3 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 48.2 | 20.7 | ||
Debt Securities, Available-for-sale, Total | 1,064.7 | 1,146.6 | ||
Public Utilities | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 5,235.7 | 5,266.4 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 4.1 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 687.4 | 1,159.4 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 70.4 | 9.8 | ||
Debt Securities, Available-for-sale, Total | 5,848.6 | 6,416 | ||
Mortgage/Asset-backed Securities | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 536.4 | 587.9 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 23.4 | 50.4 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0.7 | 0 | ||
Debt Securities, Available-for-sale, Total | 559.1 | 638.3 | ||
All Other Corporate Bonds | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 26,274.7 | 25,966.1 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0 | 0 | $ 7.3 | $ 6.8 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,931 | 3,919.9 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 580.5 | 62.6 | ||
Debt Securities, Available-for-sale, Total | 27,625.2 | 29,823.4 | ||
Redeemable Preferred Stocks | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 4 | 4 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0.1 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0.2 | 0 | ||
Debt Securities, Available-for-sale, Total | 3.8 | 4.1 | ||
Fixed Maturity Securities | ||||
Debt Securities, Available-for-sale | ||||
Amortized Cost of Fixed Maturity Securities | 37,669.7 | 37,386.7 | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 4.1 | 0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3,205.3 | 6,049.4 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 924.9 | 100.1 | ||
Debt Securities, Available-for-sale, Total | $ 39,946 | $ 43,336 |
Length of Time Fixed Maturity S
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
United States Government and Government Agencies and Authorities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 24.4 | $ 9.3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1.4 | 0.1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 1.9 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.1 | 0 |
States, Municipalities, and Political Subdivisions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1,958.7 | 326.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 223.2 | 6.9 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 1.2 | 0.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.2 | 0 |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 196.6 | 234.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 39.2 | 18.9 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 35.1 | 10.7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 9 | 1.8 |
Public Utilities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 826.3 | 263.3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 59.2 | 9.1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 59.2 | 17.6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 11.2 | 0.7 |
Mortgage/Asset-backed Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 102.6 | 29.2 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.7 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0.1 | 0.1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
All Other Corporate Bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 7,072.4 | 2,146.3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 516.8 | 51.6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 416.1 | 199.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 63.7 | 11 |
Redeemable Preferred Stocks | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 3.8 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.2 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 10,184.8 | 3,008.9 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 840.7 | 86.6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 513.6 | 228.2 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 84.2 | $ 13.5 |
Investments Distribution of the
Investments Distribution of the Maturity Dates for Fixed Maturity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale, Amortized Cost, Net of Allowance for Credit Losses, Fiscal Year Maturity | ||
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One, Net | $ 894.4 | $ 767.3 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five, Net | 6,651.9 | 6,613.2 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10, Net | 10,860 | 10,614.3 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 10, Net | 18,722.9 | 18,804 |
Available for sale Securities Debt Maturities Amortized Cost Gross Subtotal, Net | 37,129.2 | 36,798.8 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost, Net | 536.4 | 587.9 |
Debt Securities, Available-for-sale, Amortized Cost, Net of Allowance for Credit Losses | 37,665.6 | 37,386.7 |
Available for Sale Securities Unrealized Gain Position Gross Gain | ||
Available For Sale Securities Debt Maturities Within One Year Unrealized Gain Position Gross Gain | 16.3 | 17.6 |
Available For Sale Securities Debt Maturities After One Through Five Years Unrealized Gain Position Gross Gain | 253.2 | 540.2 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Unrealized Gain Position Gross Gain | 864.3 | 1,453.3 |
Available For Sale Securities Debt Maturities After Ten Years Unrealized Gain Position Gross Gain | 2,048.1 | 3,987.9 |
Available For Sale Securities Debt Maturities Unrealized Gain Position Gross Gain Gross Subtotal | 3,181.9 | 5,999 |
Available For Sale Securities Debt Maturities Without Single Maturity Date Unrealized Gain Position Gross Gain | 23.4 | 50.4 |
Available for sale Securities, Debt Maturities Unrealized Gain Position Gross Gain | 3,205.3 | 6,049.4 |
Available for Sale Securities Unrealized Loss Position Gross Loss | ||
Available For Sale Securities Debt Maturities Within One Year Unrealized Loss Position Gross Loss | 0.3 | 0.1 |
Available For Sale Securities Debt Maturities After One Through Five Years Unrealized Loss Position Gross Loss | 14.3 | 6 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Unrealized Loss Position Gross Loss | 239.3 | 26 |
Available For Sale Securities Debt Maturities After Ten Years Unrealized Loss Position Gross Loss | 670.3 | 68 |
Available For Sale Securities Debt Maturities Unrealized Gain Position Gross Loss Gross Subtotal | 924.2 | 100.1 |
Available For Sale Securities Debt Maturities Without Single Maturity Date Unrealized Loss Position Gross Loss | 0.7 | 0 |
Available For Sale Securities Unrealized Loss Position Gross Loss Subtotal | 924.9 | 100.1 |
Fair Value Maturity Distribution [Abstract] | ||
Debt Securities, Available-for-sale, Total | 39,946 | 43,336 |
Available for Sale Securities Unrealized Gain Position Fair Value | ||
Fair Value Maturity Distribution [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 880.1 | 756 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 6,063.1 | 7,050.5 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 7,695 | 10,905 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 14,153 | 20,778.4 |
Available for sale Securities Debt Maturities Fair Value Gross Subtotal | 28,791.2 | 39,489.9 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 456.4 | 609 |
Debt Securities, Available-for-sale, Total | 29,247.6 | 40,098.9 |
Available for Sale Securities Unrealized Loss Position Fair Value | ||
Fair Value Maturity Distribution [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 30.3 | 28.9 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 827.7 | 96.9 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 3,790 | 1,136.6 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 5,947.7 | 1,945.4 |
Available for sale Securities Debt Maturities Fair Value Gross Subtotal | 10,595.7 | 3,207.8 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 102.7 | 29.3 |
Debt Securities, Available-for-sale, Total | $ 10,698.4 | $ 3,237.1 |
Investments Distribution by Ext
Investments Distribution by External Credit Rating for Fixed Maturity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 39,946 | $ 43,336 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3,205.3 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 924.9 | |
Fixed maturity securities in unrealized loss position percent of total | 100.00% | |
External Credit Rating, Investment Grade | ||
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 37,423.1 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3,132 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 878.9 | |
Fixed maturity securities in unrealized loss position percent of total | 95.00% | |
External Credit Rating, Below-Investment-Grade | ||
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 2,522.9 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 73.3 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 46 | |
Fixed maturity securities in unrealized loss position percent of total | 5.00% |
Debt Securities, Available-for-
Debt Securities, Available-for-sale, Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | $ 0 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 4.1 | |
All Other Corporate Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 0 | $ 6.8 |
Debt Securities, Available-for-sale, Credit losses on securities for which credit losses were not previously recorded | 0 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Change in allowance due to change in intent to hold securities to maturity | 0.5 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | 0 | $ 7.3 |
Public Utilities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 0 | |
Debt Securities, Available-for-sale, Credit losses on securities for which credit losses were not previously recorded | 4.1 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Change in allowance due to change in intent to hold securities to maturity | 0 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 4.1 |
Investments Low Income Housing
Investments Low Income Housing Tax Credits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Low Income Housing Tax Credits [Abstract] | ||
Affordable Housing Tax Credits | $ 2.1 | $ 5.4 |
Amortization of Affordable Housing Tax Credit Investments | (1.5) | (3.7) |
Tax Benefits from Low Income Housing Investments | $ 0.6 | $ 1.7 |
Mortgage Loans by Property Type
Mortgage Loans by Property Type and Geographic Region (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 2,529.5 | $ 2,560.4 |
New England | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 54.3 | $ 54.9 |
Mortgage Loans, Percent of Total | 2.10% | 2.10% |
Mid-Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 194.2 | $ 214.7 |
Mortgage Loans, Percent of Total | 7.70% | 8.40% |
East North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 314.9 | $ 298.4 |
Mortgage Loans, Percent of Total | 12.40% | 11.70% |
West North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 186.5 | $ 193.1 |
Mortgage Loans, Percent of Total | 7.40% | 7.50% |
South Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 585.3 | $ 582.1 |
Mortgage Loans, Percent of Total | 23.20% | 22.70% |
East South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 119.6 | $ 120.7 |
Mortgage Loans, Percent of Total | 4.70% | 4.70% |
West South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 226.5 | $ 243.2 |
Mortgage Loans, Percent of Total | 9.00% | 9.60% |
Mountain | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 288.8 | $ 290.6 |
Mortgage Loans, Percent of Total | 11.40% | 11.30% |
Pacific | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 559.4 | $ 562.7 |
Mortgage Loans, Percent of Total | 22.10% | 22.00% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100.00% | 100.00% |
Apartment | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 715.6 | $ 780 |
Mortgage Loans, Percent of Total | 28.30% | 30.50% |
Industrial | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 746.7 | $ 734.4 |
Mortgage Loans, Percent of Total | 29.50% | 28.70% |
Office | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 491.4 | $ 467.2 |
Mortgage Loans, Percent of Total | 19.40% | 18.20% |
Retail | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 530.6 | $ 533.3 |
Mortgage Loans, Percent of Total | 21.00% | 20.80% |
Other Property | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 45.2 | $ 45.5 |
Mortgage Loans, Percent of Total | 1.80% | 1.80% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100.00% | 100.00% |
Schedule of Participating Mortg
Schedule of Participating Mortgage Loans by Internal Credit Rating and Loan to Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 2,529.5 | $ 2,560.4 |
Loan to Value Ratio Below or Equal to 65 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 1,322.4 | $ 1,346.1 |
Mortgage Loans, Percent of Total | 52.30% | 52.60% |
Loan To Value Ratio Above 65 To 75 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 1,070.6 | $ 1,076.8 |
Mortgage Loans, Percent of Total | 42.30% | 42.00% |
Loan To Value Ratio Above 75 To 85 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 124.1 | $ 114.9 |
Mortgage Loans, Percent of Total | 4.90% | 4.50% |
Loan To Value Ratio Above 85 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 12.4 | $ 22.6 |
Mortgage Loans, Percent of Total | 0.50% | 0.90% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100.00% | 100.00% |
AA Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 27.2 | $ 27.3 |
Mortgage Loans, Percent of Total | 1.10% | 1.10% |
A Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 702.4 | $ 709.6 |
Mortgage Loans, Percent of Total | 27.80% | 27.70% |
BBB Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 1,779.1 | $ 1,802.6 |
Mortgage Loans, Percent of Total | 70.30% | 70.40% |
BB Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 20.8 | $ 20.9 |
Mortgage Loans, Percent of Total | 0.80% | 0.80% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100.00% | 100.00% |
Mortgage Loans, Sorted by Appli
Mortgage Loans, Sorted by Applicable Credit Quality Indicators (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | $ 7.9 | $ 8.3 | ||
Mortgage Loans, Carrying Amount | 2,529.5 | 2,560.4 | ||
Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,230.8 | 984.1 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 382.4 | 305.5 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 358.7 | 384.4 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 179.6 | 360.8 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 351.7 | 180.7 | ||
Financing Receivable, Originated in Current Fiscal Year | 34.2 | 353.2 | ||
Financing Receivable, before Allowance for Credit Loss | 2,537.4 | 2,568.7 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 7.9 | 8.3 | ||
Loan to Value Ratio Below or Equal to 65 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 1,322.4 | 1,346.1 | ||
Loan to Value Ratio Below or Equal to 65 Percent | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 887.9 | 779.1 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 171 | 146.9 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 80.2 | 163 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 53.9 | 80.7 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 123.9 | 54.3 | ||
Financing Receivable, Originated in Current Fiscal Year | 7.9 | 124.7 | ||
Financing Receivable, before Allowance for Credit Loss | 1,324.8 | 1,348.7 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 2.4 | 2.6 | $ 3 | $ 3.4 |
Loan To Value Ratio Above 65 To 75 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 1,070.6 | 1,076.8 | ||
Loan To Value Ratio Above 65 To 75 Percent | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 211.4 | 115.7 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 205.4 | 115.4 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 278.5 | 215.4 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 125.7 | 280.1 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 227.8 | 126.4 | ||
Financing Receivable, Originated in Current Fiscal Year | 26.3 | 228.5 | ||
Financing Receivable, before Allowance for Credit Loss | 1,075.1 | 1,081.5 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 4.5 | 4.7 | 6.3 | 7.3 |
Loan To Value Ratio Above 75 To 85 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 124.1 | 114.9 | ||
Loan To Value Ratio Above 75 To 85 Percent | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 124.8 | 89.3 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | 26.3 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | 0 | ||
Financing Receivable, before Allowance for Credit Loss | 124.8 | 115.6 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 0.7 | 0.7 | 1.2 | 1.3 |
Loan To Value Ratio Above 85 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 12.4 | 22.6 | ||
Loan To Value Ratio Above 85 Percent | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 6.7 | 0 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 6 | 16.9 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | 6 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | 0 | ||
Financing Receivable, before Allowance for Credit Loss | 12.7 | 22.9 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 0.3 | 0.3 | $ 1 | $ 1.1 |
Originated Five or More Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 1,227.2 | 981.5 | ||
Originated Five or More Years before Last Fiscal Year | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 3.6 | 2.6 | ||
Originated Four Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 381 | 304.1 | ||
Originated Four Years before Last Fiscal Year | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 1.4 | 1.4 | ||
Originated Three Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 357.3 | 383 | ||
Originated Three Years before Last Fiscal Year | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 1.4 | 1.4 | ||
Originated Two Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 179 | 359.4 | ||
Originated Two Years before Last Fiscal Year | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 0.6 | 1.4 | ||
Originated in Fiscal Year before Latest Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 350.9 | 180 | ||
Originated in Fiscal Year before Latest Fiscal Year | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 0.8 | 0.7 | ||
Originated in Current Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 34.1 | 352.4 | ||
Originated in Current Fiscal Year | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 0.1 | 0.8 | ||
AA Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 27.2 | 27.3 | ||
AA Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 3.3 | 3.3 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 23.9 | 0 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | 24 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | 0 | ||
Financing Receivable, before Allowance for Credit Loss | 27.2 | 27.3 | ||
A Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 702.4 | 709.6 | ||
A Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 489.6 | 414.6 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 78.6 | 68 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 28.6 | 71.1 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 17.5 | 28.9 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 81.4 | 17.6 | ||
Financing Receivable, Originated in Current Fiscal Year | 7.9 | 110.6 | ||
Financing Receivable, before Allowance for Credit Loss | 703.6 | 710.8 | ||
BBB Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 1,779.1 | 1,802.6 | ||
BBB Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 722.9 | 561.2 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 273.9 | 227.3 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 330.1 | 283.3 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 162.1 | 331.9 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 270.3 | 163.1 | ||
Financing Receivable, Originated in Current Fiscal Year | 26.3 | 242.6 | ||
Financing Receivable, before Allowance for Credit Loss | 1,785.6 | 1,809.4 | ||
BB Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 20.8 | 20.9 | ||
BB Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 15 | 5 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 6 | 10.2 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | 6 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | 0 | ||
Financing Receivable, before Allowance for Credit Loss | $ 21 | $ 21.2 |
Mortgage Loans, Allowance for C
Mortgage Loans, Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 8.3 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 7.9 | |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 8.3 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 7.9 | |
Commercial Real Estate | Loan to Value Ratio Below or Equal to 65 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2.6 | $ 3.4 |
Current Period Provisions | (0.2) | (0.4) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2.4 | 3 |
Commercial Real Estate | Loan To Value Ratio Above 65 To 75 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4.7 | 7.3 |
Current Period Provisions | (0.2) | (1) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 4.5 | 6.3 |
Commercial Real Estate | Loan To Value Ratio Above 75 To 85 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 0.7 | 1.3 |
Current Period Provisions | 0 | (0.1) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 0.7 | 1.2 |
Commercial Real Estate | Loan To Value Ratio Above 85 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 0.3 | 1.1 |
Current Period Provisions | 0 | (0.1) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 0.3 | 1 |
Commercial Real Estate | Loan to Value Ratio Total | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 8.3 | 13.1 |
Current Period Provisions | (0.4) | (1.6) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 7.9 | $ 11.5 |
Investments Remaining Contractu
Investments Remaining Contractual Maturity of Security Lending Agreements(Details) - Overnight and Continuous - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
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 | $ 73.3 | $ 94.8 |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 73.3 | 94.8 |
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 | 0.4 | 0.1 |
States, Municipalities, and Political Subdivisions | ||
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 | 0.6 | 0.1 |
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 | 4.3 | 3.1 |
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 | $ 68 | $ 91.5 |
Investments Federal Home Loan B
Investments Federal Home Loan Bank Carrying Amount, Collateral Posted and Advances Received (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Federal Home Loan Bank Common Stock | $ 23.3 | $ 22.1 |
Federal Home Loan Bank, Advances | 178.2 | 160.9 |
Federal Home Loan Bank, Collateral Posted to FHLB | 1,527.6 | 1,716.1 |
Fixed Maturity Securities | ||
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Federal Home Loan Bank, Collateral Posted to FHLB | 640.9 | 786.1 |
Commercial Mortgage Loans | ||
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Federal Home Loan Bank, Collateral Posted to FHLB | $ 886.7 | $ 930 |
Investments Schedule of Financi
Investments Schedule of Financial Instrument and Derivative Offsetting (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting Derivative Assets | ||
Derivative Asset, Fair Value, Gross Asset | $ 47.3 | $ 39.5 |
Derivative Liabilities Offsetting Derivative Assets in Balance Sheet | 0 | 0 |
Net Derivative Assets Reported in Balance Sheet | 47.3 | 39.5 |
Securities Received as Collateral on Derivative Assets | (13) | (9.8) |
Cash Collateral from Counterparties | (32.6) | (28.4) |
Derivative Assets Net of Collateral | 1.7 | 1.3 |
Offsetting Securities Borrowed | ||
Gross Securities Borrowed | 240.7 | 283.7 |
Liabilities Offsetting Securities Borrowed in Balance Sheet | 0 | 0 |
Net Securities Borrowed Reported in Balance Sheet | 240.7 | 283.7 |
Securities Received as Collateral on Securities Borrowed | (167.4) | (188.9) |
Cash Received as Collateral on Securities Borrowed | (73.3) | (94.8) |
Securities Borrowed Net of Collateral | 0 | 0 |
Offsetting Financial Assets | ||
Gross Financial Assets | 288 | 323.2 |
Financial Liabilities Offsetting Financial Assets in Balance Sheet | 0 | 0 |
Net Financial Assets Reported in Balance Sheet | 288 | 323.2 |
Securities Received as Collateral on Financial Assets | (180.4) | (198.7) |
Cash Received as Collateral on Financial Assets | (105.9) | (123.2) |
Financial Assets Net of Collateral | 1.7 | 1.3 |
Offsetting Derivative Liabilities | ||
Net Derivative Liabilities Reported in Balance Sheet | 68.9 | 65.1 |
Offsetting Securities Loaned | ||
Gross Securities Loaned | 73.3 | 94.8 |
Assets Offsetting Securities Loaned in Balance Sheet | 0 | 0 |
Net Securities Loaned Reported in Balance Sheet | 73.3 | 94.8 |
Securities Given as Collateral on Securities Loaned | (73.3) | (94.8) |
Cash Given as Collateral on Securities Loaned | 0 | 0 |
Securities Loaned, Amount Offset Against Collateral | 0 | 0 |
Offsetting Financial Liabilities | ||
Gross Financial Liability | 108.7 | 129.8 |
Financial Assets Offsetting Financial Liabilities in Balance Sheet | 0 | 0 |
Net Financial Liabilities Reported in Balance Sheet | 108.7 | 129.8 |
Securities Given as Collateral on Financial Liabilities | (108.5) | (128.8) |
Cash Given as Collateral on Financial Liabilities | 0 | 0 |
Financial Liabilities Net of Collateral | 0.2 | 1 |
Over the Counter | ||
Offsetting Derivative Liabilities | ||
Gross Derivative Liability | 35.4 | 35 |
Derivative Assets Offsetting Derivative Liabilities in Balance Sheet | 0 | 0 |
Net Derivative Liabilities Reported in Balance Sheet | 35.4 | 35 |
Securities Given as Collateral on Derivative Liabilities | (35.2) | (34) |
Cash Collateral to counterparties | 0 | 0 |
Derivative Liabilities Net of Collateral | $ 0.2 | $ 1 |
Investments Investment Income (
Investments Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Net Investment Income | |||
Investment Income, Interest and Dividend | $ 539.8 | $ 559.3 | |
Less Investment Expenses | 9.6 | 7.5 | |
Less Investment Income on PFA Assets | 3 | 3.1 | |
Net Investment Income | 527.2 | 548.7 | |
Fixed Maturity Securities | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | 455.5 | 469.8 | |
Derivatives | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | 14.4 | 16.2 | |
Mortgage Loans | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | 27 | 26.3 | |
Policy Loans | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | 4.7 | 4.8 | |
Perpetual Preferred Securities | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | [1] | 2.9 | 3.6 |
Private Equity Partnerships | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | [2] | 32.4 | 35.9 |
Other Long-term Investments | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | 2.1 | 2.1 | |
Short-term Investments | |||
Net Investment Income | |||
Investment Income, Interest and Dividend | $ 0.8 | $ 0.6 | |
[1] | The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2022 related to perpetual preferred securities still held at March 31, 2022 was $2.4 million. The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2021 related to perpetual preferred securities still held at March 31, 2021 was $2.7 million. | ||
[2] | The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2022 related to private equity partnerships still held at March 31, 2022 was $16.3 million. The net unrealized gain (loss) recognized in net investment income for the three months ended March 31, 2021 related to private equity partnerships still held at March 31, 2021 was $27.0 million. See Note 3 for further discussion of private equity partnerships. |
Investment Gains and Losses Rep
Investment Gains and Losses Reported in Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Realized Investment Gains and Losses Reported in Consolidated Statements of Income [Abstract] | |||
Embedded Derivative in Modified Coinsurance Arrangement | $ (3.4) | $ 16.9 | |
All Other Derivatives | 1.8 | 1.7 | |
Foreign Currency Transactions | (1.5) | (0.1) | |
Net Investment Gain (Loss) | (13.8) | 84.6 | |
Mortgage Loans and Other Invested Assets | |||
Gross Gains on Sales | 1.4 | 2.5 | |
Gross Losses on Sales | 0 | 0 | |
Credit Losses | 0.5 | 1.7 | |
Fixed Maturity Securities | |||
Gross Gains on Sales | 0.3 | 71.3 | [1] |
Gross Losses on Sales | 8.8 | 1.1 | |
Credit Losses | $ (4.1) | $ (8.3) | |
[1] | Gross gains on sales of fixed maturity securities for the three months ended March 31, 2021 includes gains of $67.6 million as a result of the second phase of the reinsurance transaction that we completed during the first quarter of 2021. See Note 12 for further discussion. |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Schedule of Investments | |||
Commitment to Fund Private Placement Fixed Maturity Securities | $ 44 | ||
Other Long-term Investments | 1,280.4 | $ 1,203 | |
Unfunded Commitments | 0.7 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 7.9 | 8.3 | |
Accrued Investment Income | 658.5 | 602.7 | |
Loan Foreclosure Expense | 0 | $ 0 | |
Commitments to Fund Commercial Mortgage Loans | 26.5 | ||
Real Estate Held-for-sale | $ 40 | 40.9 | |
Repurchase agreements - Typical Days outstanding | 30 | ||
Minimum percent of the fair value of securities loaned or securities purchased under repurchase agreements be maintained as collateral | 102.00% | ||
Gross Securities Borrowed | $ 240.7 | 283.7 | |
Outstanding Repurchase Agreements | 0 | 0 | |
Off Balance Sheet Amount | |||
Schedule of Investments | |||
Cash Collateral for Borrowed Securities | 73.3 | 94.8 | |
Securities Received as Collateral | 176 | 198.6 | |
Commercial Real Estate | |||
Schedule of Investments | |||
Financing Receivable, before Allowance for Credit Loss, Mortgage Loans | 2,537.4 | 2,568.7 | |
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 7.9 | 8.3 | |
Accrued Investment Income | $ 8 | 8.1 | |
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | 0 | |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | $ 0 | |
Unfunded Mortgage Loan Commitments | |||
Schedule of Investments | |||
Allowance for Credit Losses, Unfunded Mortgage Loan Commitments | 0.1 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Schedule of Investments | |||
Other Long-term Investments | 1,053.1 | 987.9 | |
Public Utilities | |||
Schedule of Investments | |||
Debt Securities, Available-for-sale, Credit losses on securities for which credit losses were not previously recorded | 4.1 | ||
Tax Credit Partnership | Variable Interest Entity, Not Primary Beneficiary | |||
Schedule of Investments | |||
Other Long-term Investments | 7.2 | 9.3 | |
Equity Method Investments | Variable Interest Entity, Not Primary Beneficiary | |||
Schedule of Investments | |||
Other Long-term Investments | $ 1,045.9 | $ 978.6 | |
External Credit Rating, Investment Grade | |||
Schedule of Investments | |||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 563 | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | 48 | ||
External Credit Rating, Below-Investment-Grade | |||
Schedule of Investments | |||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 77 | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | 8 |
Derivative Financial Instrume_3
Derivative Financial Instruments Nature and Amount of Collateral Received From and Posted To Our Derivative Counterparties (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative | ||
Cash Collateral from Counterparties | $ 32.6 | $ 28.4 |
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | 13 | 9.8 |
Cash | ||
Derivative | ||
Cash Collateral from Counterparties | 35 | 32 |
Fixed Maturity Securities | ||
Derivative | ||
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | $ 27.6 | $ 27.6 |
Derivative Financial Instrume_4
Derivative Financial Instruments Fair Value Hedges Carrying Amount of Hedged Assets and Cumulative Basis Adjustments (Details) - Interest Rate Swaps - Receive Fixed/Pay Fixed - Designated as Hedging Instrument - Fair Value Hedging - Fixed Maturity Securities - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures | ||
Hedged Asset, Fair Value Hedge | $ 466.8 | $ 466.3 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | $ (3.3) | $ 2 |
Location and Amounts of Derivat
Location and Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative | ||
Derivative, Notional Amount | $ 1,029.5 | $ 970.5 |
Asset Derivatives Fair Value | 47.3 | 39.5 |
Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 47.3 | 39.5 |
Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 68.9 | 65.1 |
Designated as Hedging Instrument | ||
Derivative | ||
Derivative, Notional Amount | 727.9 | 679.8 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative | ||
Derivative, Notional Amount | 196.3 | |
Designated as Hedging Instrument | Forwards | Cash Flow Hedging | ||
Derivative | ||
Derivative, Notional Amount | 15 | |
Designated as Hedging Instrument | Interest Rate Swaps | Cash Flow Hedging | ||
Derivative | ||
Derivative, Notional Amount | 181.3 | 181.3 |
Designated as Hedging Instrument | Interest Rate Swaps | Fair Value Hedging | ||
Derivative | ||
Derivative, Notional Amount | 531.6 | 498.5 |
Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 45.3 | 38.1 |
Designated as Hedging Instrument | Other Long-term Investments | Cash Flow Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 14.9 | |
Designated as Hedging Instrument | Other Long-term Investments | Forwards | Cash Flow Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 0 | |
Designated as Hedging Instrument | Other Long-term Investments | Interest Rate Swaps | Cash Flow Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 14.9 | 16.2 |
Designated as Hedging Instrument | Other Long-term Investments | Interest Rate Swaps | Fair Value Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 30.4 | 21.9 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 14.3 | 12.7 |
Designated as Hedging Instrument | Other Liabilities | Cash Flow Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 8.8 | |
Designated as Hedging Instrument | Other Liabilities | Forwards | Cash Flow Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 1 | |
Designated as Hedging Instrument | Other Liabilities | Interest Rate Swaps | Cash Flow Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 7.8 | 7 |
Designated as Hedging Instrument | Other Liabilities | Interest Rate Swaps | Fair Value Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 5.5 | 5.7 |
Not Designated as Hedging Instrument | ||
Derivative | ||
Derivative, Notional Amount | 301.6 | 290.7 |
Not Designated as Hedging Instrument | Credit Default Swaps | ||
Derivative | ||
Derivative, Notional Amount | 11.3 | 11.6 |
Not Designated as Hedging Instrument | Forwards | ||
Derivative | ||
Derivative, Notional Amount | 58.2 | 41.7 |
Not Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative | ||
Derivative, Notional Amount | 148.2 | 148.2 |
Not Designated as Hedging Instrument | Total Return Swap | ||
Derivative | ||
Derivative, Notional Amount | 83.9 | 89.2 |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | ||
Derivative | ||
Derivative, Notional Amount | 0 | 0 |
Not Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 2 | 1.4 |
Not Designated as Hedging Instrument | Other Long-term Investments | Credit Default Swaps | ||
Derivative | ||
Asset Derivatives Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Other Long-term Investments | Forwards | ||
Derivative | ||
Asset Derivatives Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Other Long-term Investments | Interest Rate Swaps | ||
Derivative | ||
Asset Derivatives Fair Value | 2 | 1.4 |
Not Designated as Hedging Instrument | Other Long-term Investments | Total Return Swap | ||
Derivative | ||
Asset Derivatives Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Other Long-term Investments | Embedded Derivative in Modified Coinsurance Arrangement | ||
Derivative | ||
Asset Derivatives Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 54.6 | 52.4 |
Not Designated as Hedging Instrument | Other Liabilities | Credit Default Swaps | ||
Derivative | ||
Liability Derivatives Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Other Liabilities | Forwards | ||
Derivative | ||
Liability Derivatives Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Other Liabilities | Interest Rate Swaps | ||
Derivative | ||
Liability Derivatives Fair Value | 21.1 | 22.3 |
Not Designated as Hedging Instrument | Other Liabilities | Total Return Swap | ||
Derivative | ||
Liability Derivatives Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Other Liabilities | Embedded Derivative in Modified Coinsurance Arrangement | ||
Derivative | ||
Liability Derivatives Fair Value | $ 33.5 | $ 30.1 |
Derivative Financial Instrume_5
Derivative Financial Instruments Location of Gains and Losses Designated as Hedging Instruments, Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) | ||
Net Investment Income | $ 527.2 | $ 548.7 |
Net Investment Gain (Loss) | (13.8) | 84.6 |
Interest and Debt Expense | 46.9 | 44.4 |
Derivative, Gain (Loss) on Derivative, Net | (1.8) | (1.7) |
Designated as Hedging Instrument | Interest Rate Swaps | Net Investment Income | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Net Investment Income | 50.4 | 52 |
Derivative, Gain (Loss) on Derivative, Net | 13.4 | 15.5 |
Designated as Hedging Instrument | Interest Rate Swaps | Net Investment Gain (Loss) | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Net Investment Gain (Loss) | 0 | 2.4 |
Derivative, Gain (Loss) on Derivative, Net | 0 | 1.8 |
Designated as Hedging Instrument | Interest Rate Swaps | Interest and Debt Expense | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Interest and Debt Expense | 0.7 | 7.3 |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0.1 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Investment Income | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Net Investment Income | 2.8 | 3.1 |
Derivative, Gain (Loss) on Derivative, Net | 0.2 | 0.3 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Investment Income | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Net Investment Income | 2.7 | 2.3 |
Derivative, Gain (Loss) on Derivative, Net | 1.4 | 1 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Investment Gain (Loss) | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Net Investment Gain (Loss) | 0 | 0 |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Investment Gain (Loss) | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Net Investment Gain (Loss) | (5.3) | (9.5) |
Derivative, Gain (Loss) on Derivative, Net | 5.3 | 9.5 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Interest and Debt Expense | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Interest and Debt Expense | 0 | 0 |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Interest and Debt Expense | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Interest and Debt Expense | 0 | 0 |
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 |
Location of Gains and Losses on
Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments (Detail) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | $ (3.1) | $ (1.5) |
Forwards | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | (1) | 0 |
Foreign Exchange Contracts | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | $ (2.1) | $ (1.5) |
Gains and Losses on Derivatives
Gains and Losses on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) | ||
Net Gain (Loss) on Derivatives | $ 1.8 | $ 1.7 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) | ||
Net Gain (Loss) on Derivatives | (1.6) | 18.6 |
Credit Default Swaps | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) | ||
Net Gain (Loss) on Derivatives | 0 | (0.1) |
Foreign Exchange Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) | ||
Net Gain (Loss) on Derivatives | 1.8 | 1.8 |
Embedded Derivative in Modified Coinsurance Arrangement | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) | ||
Net Gain (Loss) on Derivatives | (3.4) | 16.9 |
Total Return Swap | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) | ||
Net Gain (Loss) on Derivatives | $ 5.7 | $ 1.3 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative | |||
Aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position | $ 35.4 | $ 35 | |
Derivative, Notional Amount | 1,029.5 | 970.5 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0.6 | ||
Approximate amount of net deferred gains on derivative instruments expected to be amortized during the next twelve months | 47.6 | ||
Component of Derivative Gain (Loss) Excluded from the Assessment of Hedge Effectiveness | 3.3 | (7) | |
Discontinued Hedge Accounting Due to Instrument No Longer Qualifying as Fair Value Hedge | 0 | $ 0 | |
Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 727.9 | 679.8 | |
Not Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 301.6 | 290.7 | |
Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 196.3 | ||
Interest Rate Swaps | Not Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 148.2 | 148.2 | |
Interest Rate Swaps | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 181.3 | 181.3 | |
Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 531.6 | 498.5 | |
Credit Default Swaps | Credit Default Swaps | Not Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 11.3 | 11.6 | |
Forwards | Not Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 58.2 | 41.7 | |
Forwards | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 15 | ||
Additions | 15 | ||
Total Return Swap | Not Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 83.9 | 89.2 | |
Receive Fixed/Pay Fixed | Interest Rate Swaps | Not Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 148.2 | 148.2 | |
Receive Fixed/Pay Fixed | Interest Rate Swaps | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 181.3 | 181.3 | |
Receive Fixed/Pay Fixed | Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | |||
Derivative | |||
Derivative, Notional Amount | 531.6 | 498.5 | |
Credit Exposure | |||
Derivative | |||
Credit Exposure on Derivatives | $ 1.7 | $ 1.3 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||
Balance at Beginning of Year | $ 354.1 | $ 374.2 |
Other Comprehensive Income (Loss) Before Reclassifications | (936.5) | (447.2) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (2.3) | (48.1) |
Total Other Comprehensive Loss | (934.2) | (399.1) |
Balance at End of Period | (580.1) | (24.9) |
Net Unrealized Gain on Securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at Beginning of Year | 962.2 | 1,067.7 |
Other Comprehensive Income (Loss) Before Reclassifications | (906.1) | (447.2) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (10) | (57.7) |
Total Other Comprehensive Loss | (896.1) | (389.5) |
Balance at End of Period | 66.1 | 678.2 |
Net Gain on Hedges | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at Beginning of Year | 61.8 | 97.8 |
Other Comprehensive Income (Loss) Before Reclassifications | 0.4 | (6.8) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 10.8 | 13.9 |
Total Other Comprehensive Loss | (10.4) | (20.7) |
Balance at End of Period | 51.4 | 77.1 |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at Beginning of Year | (273.9) | (261.3) |
Other Comprehensive Income (Loss) Before Reclassifications | (31.9) | 7.3 |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 0 | 0 |
Total Other Comprehensive Loss | (31.9) | 7.3 |
Balance at End of Period | (305.8) | (254) |
Unrecognized Pension and Postretirement Benefit Costs | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at Beginning of Year | (396) | (530) |
Other Comprehensive Income (Loss) Before Reclassifications | 1.1 | (0.5) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (3.1) | (4.3) |
Total Other Comprehensive Loss | 4.2 | 3.8 |
Balance at End of Period | $ (391.8) | $ (526.2) |
Schedule of Components of Unrea
Schedule of Components of Unrealized Gain (Loss) on Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change in Components of Net Unrealized Gain on Securities | ||
Change in Net Unrealized Gain on Securities | $ (2,893.8) | $ (1,646) |
Fixed Maturity Securities | ||
Change in Components of Net Unrealized Gain on Securities | ||
Beginning of Period Balance | 5,949.3 | 7,597.6 |
Change in Net Unrealized Gain on Securities | (3,668.9) | (2,080.2) |
End of Period Balance | 2,280.4 | 5,517.4 |
Deferred Acquisition Costs | ||
Change in Components of Net Unrealized Gain on Securities | ||
Beginning of Period Balance | (70.4) | (85.1) |
Change in Net Unrealized Gain on Securities | 36.8 | 18.5 |
End of Period Balance | (33.6) | (66.6) |
Reserve for Future Policy and Contract Benefits | ||
Change in Components of Net Unrealized Gain on Securities | ||
Beginning of Period Balance | (4,659.5) | (6,225.6) |
Change in Net Unrealized Gain on Securities | 2,555.1 | 1,636.7 |
End of Period Balance | (2,104.4) | (4,588.9) |
Reinsurance Recoverable | ||
Change in Components of Net Unrealized Gain on Securities | ||
Beginning of Period Balance | 132.1 | 200.2 |
Change in Net Unrealized Gain on Securities | (57.3) | (66.9) |
End of Period Balance | 74.8 | 133.3 |
Income Tax | ||
Change in Components of Net Unrealized Gain on Securities | ||
Beginning of Period Balance | (389.3) | (419.4) |
Change in Net Unrealized Gain on Securities | 238.2 | 102.4 |
End of Period Balance | (151.1) | (317) |
Net Unrealized Gain on Securities | ||
Change in Components of Net Unrealized Gain on Securities | ||
Beginning of Period Balance | 962.2 | 1,067.7 |
Change in Net Unrealized Gain on Securities | (896.1) | (389.5) |
End of Period Balance | $ 66.1 | $ 678.2 |
Schedule of Reclassifications O
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Net Investment Gain (Loss) | $ (13.8) | $ 84.6 |
Credit Losses on Fixed Maturity Securities | 4.1 | 8.3 |
Loss on Benefits and Change in Reserves for Future Benefits | (1,843.9) | (2,051.2) |
Net Investment Income | 527.2 | 548.7 |
Other Expenses | (243.8) | (245) |
Income Tax Expense (Benefit) | 58.6 | 45.8 |
Net Income | 253.5 | 153 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net Unrealized Gain on Securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Net Investment Gain (Loss) | (8.5) | 68.3 |
Credit Losses on Fixed Maturity Securities | (4.1) | (8.3) |
Loss on Benefits and Change in Reserves for Future Benefits | 0 | 133.1 |
Income Before Income Tax | (12.6) | (73.1) |
Income Tax Expense (Benefit) | (2.6) | (15.4) |
Net Income | (10) | (57.7) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net Gain on Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Income Before Income Tax | 13.7 | 17.6 |
Income Tax Expense (Benefit) | 2.9 | 3.7 |
Net Income | 10.8 | 13.9 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net Gain on Hedges | Interest Rate Swaps | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Net Investment Gain (Loss) | 0 | 1.8 |
Net Investment Income | 13.4 | 15.3 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net Gain on Hedges | Foreign Exchange Contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Net Investment Income | 0.3 | 0.5 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of Net Actuarial Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Other Expenses | (4) | (5.6) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of Prior Service Credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Other Expenses | 0.1 | 0.1 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Unrecognized Pension and Postretirement Benefit Costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Income Before Income Tax | (3.9) | (5.5) |
Income Tax Expense (Benefit) | (0.8) | (1.2) |
Net Income | $ (3.1) | $ (4.3) |
Liability for Unpaid Claims a_3
Liability for Unpaid Claims and Claims Adjustment Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense | ||
Balance at January 1 | $ 23,664.7 | $ 24,180.2 |
Less Reinsurance Recoverable | 8,697.8 | 8,378.9 |
Net Balance at January 1 | 14,966.9 | 15,801.3 |
Incurred Related to | ||
Current Year | 1,856.6 | 1,870.3 |
Paid Related to | ||
Current Year | (483.7) | (472.1) |
Prior Years | (1,337.1) | (1,342.5) |
Total Paid | (1,820.8) | (1,814.6) |
Reserves Ceded Pursuant to Reinsurance Transaction | 0 | (990) |
Net Balance at March 31 | 14,870.9 | 15,001.7 |
Plus Reinsurance Recoverable | 8,535.3 | 9,225.8 |
Balance at March 31 | 23,406.2 | 24,227.5 |
Amount Related to Interest | ||
Incurred Related to | ||
Prior Years | 164 | 183.4 |
Incurred Claims | ||
Incurred Related to | ||
Prior Years | (231.8) | (66) |
Foreign Currency | ||
Incurred Related to | ||
Prior Years | (64) | 17.3 |
Operating Expense | ||
Incurred Related to | ||
Total Incurred | $ 1,724.8 | $ 2,005 |
Reconciliation of Policy and Co
Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Insurance [Abstract] | ||||
Policy and Contract Benefits | $ 1,874.2 | $ 1,907.7 | $ 1,899.3 | |
Reserves for Future Policy and Contract Benefits | 45,258 | 48,007.5 | 48,112.3 | |
Total Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits | 47,132.2 | 50,011.6 | ||
Life Reserves for Future Policy and Contract Benefits | 8,415.7 | 8,389.3 | ||
Accident and Health Active Life Reserves | 13,205.9 | 12,805.9 | ||
Adjustment Related to Unrealized Investment Gains and Losses | 2,104.4 | 4,588.9 | ||
Liability for Unpaid Claims and Claim Adjustment Expense | $ 23,406.2 | $ 23,664.7 | $ 24,227.5 | $ 24,180.2 |
Liability for Unpaid Claims a_4
Liability for Unpaid Claims and CAE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Unpaid Claims and CAE Narrative Information | ||||
Reinsurance Recoverables, Incurred but Not Reported Claims | $ 8,535.3 | $ 9,225.8 | $ 8,697.8 | $ 8,378.9 |
Closed Block Individual Disability Reinsurance Transaction | Phase 2 | ||||
Liability for Unpaid Claims and CAE Narrative Information | ||||
Increase in Benefits and Change in Reserves for Future Benefits | $ 133.1 | 133.1 | ||
Reinsurance Recoverables, Incurred but Not Reported Claims | $ 990 |
Premium Income by Major Line of
Premium Income by Major Line of Business within Each Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information | ||
Premium Income | $ 2,403.3 | $ 2,378.3 |
Operating Segments | ||
Segment Reporting Information | ||
Premium Income | 2,403.3 | 2,378.3 |
Operating Segments | Unum US | ||
Segment Reporting Information | ||
Premium Income | 1,544.9 | 1,525.8 |
Operating Segments | Unum US | Group Long-term Disability | ||
Segment Reporting Information | ||
Premium Income | 463.9 | 457.7 |
Operating Segments | Unum US | Group Short-term Disability | ||
Segment Reporting Information | ||
Premium Income | 221.6 | 215.2 |
Operating Segments | Unum US | Group Life | ||
Segment Reporting Information | ||
Premium Income | 412.6 | 410 |
Operating Segments | Unum US | Accidental Death & Dismemberment | ||
Segment Reporting Information | ||
Premium Income | 42.1 | 41.4 |
Operating Segments | Unum US | Voluntary Benefits | ||
Segment Reporting Information | ||
Premium Income | 220.5 | 218.7 |
Operating Segments | Unum US | Individual Disability | ||
Segment Reporting Information | ||
Premium Income | 113.6 | 115.7 |
Operating Segments | Unum US | Dental and Vision | ||
Segment Reporting Information | ||
Premium Income | 70.6 | 67.1 |
Operating Segments | Unum International | ||
Segment Reporting Information | ||
Premium Income | 187.8 | 174.4 |
Operating Segments | Unum International | Group Long-term Disability | ||
Segment Reporting Information | ||
Premium Income | 103.4 | 97.1 |
Operating Segments | Unum International | Group Life | ||
Segment Reporting Information | ||
Premium Income | 32.2 | 27.3 |
Operating Segments | Unum International | Supplemental | ||
Segment Reporting Information | ||
Premium Income | 29 | 28 |
Operating Segments | Unum International | Unum Poland | ||
Segment Reporting Information | ||
Premium Income | 23.2 | 22 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Premium Income | 430.7 | 426.4 |
Operating Segments | Colonial Life | Accident, Sickness, and Disability | ||
Segment Reporting Information | ||
Premium Income | 239.7 | 240.7 |
Operating Segments | Colonial Life | Life | ||
Segment Reporting Information | ||
Premium Income | 101.7 | 96.6 |
Operating Segments | Colonial Life | Cancer and Critical Illness Colonial | ||
Segment Reporting Information | ||
Premium Income | 89.3 | 89.1 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Premium Income | 239.9 | 251.7 |
Operating Segments | Closed Block | Individual Disability | ||
Segment Reporting Information | ||
Premium Income | 63.4 | 72.1 |
Operating Segments | Closed Block | Long-term Care | ||
Segment Reporting Information | ||
Premium Income | 174.8 | 177.4 |
Operating Segments | Closed Block | Other Insurance Product Line | ||
Segment Reporting Information | ||
Premium Income | $ 1.7 | $ 2.2 |
Selected Operating Statement Da
Selected Operating Statement Data by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information | ||
Premium Income | $ 2,403.3 | $ 2,378.3 |
Net Investment Income | 527.2 | 548.7 |
Other Income | 65.8 | 60.4 |
Operating Segments | ||
Segment Reporting Information | ||
Premium Income | 2,403.3 | 2,378.3 |
Net Investment Income | 527.2 | 548.7 |
Other Income | 65.8 | 60.4 |
Adjusted Operating Revenue | 2,996.3 | 2,987.4 |
Adjusted Operating Income (Loss) | 342.6 | 273.5 |
Operating Segments | Unum US | ||
Segment Reporting Information | ||
Premium Income | 1,544.9 | 1,525.8 |
Net Investment Income | 171 | 179.7 |
Other Income | 47.1 | 40.4 |
Adjusted Operating Revenue | 1,763 | 1,745.9 |
Adjusted Operating Income (Loss) | 171.6 | 115.7 |
Operating Segments | Unum International | ||
Segment Reporting Information | ||
Premium Income | 187.8 | 174.4 |
Net Investment Income | 34.5 | 26 |
Other Income | 0.2 | 0.1 |
Adjusted Operating Revenue | 222.5 | 200.5 |
Adjusted Operating Income (Loss) | 27.2 | 26.4 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Premium Income | 430.7 | 426.4 |
Net Investment Income | 38.1 | 37.7 |
Other Income | 0.3 | 0.2 |
Adjusted Operating Revenue | 469.1 | 464.3 |
Adjusted Operating Income (Loss) | 90.1 | 73.3 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Premium Income | 239.9 | 251.7 |
Net Investment Income | 274.8 | 297.2 |
Other Income | 16 | 18.4 |
Adjusted Operating Revenue | 530.7 | 567.3 |
Adjusted Operating Income (Loss) | 94.1 | 97 |
Operating Segments | Corporate | ||
Segment Reporting Information | ||
Premium Income | 0 | 0 |
Net Investment Income | 8.8 | 8.1 |
Other Income | 2.2 | 1.3 |
Adjusted Operating Revenue | 11 | 9.4 |
Adjusted Operating Income (Loss) | $ (40.4) | $ (38.9) |
Assets by Segment (Detail)
Assets by Segment (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information | ||
Total Assets | $ 66,471.7 | $ 70,115.6 |
Operating Segments | Unum US | ||
Segment Reporting Information | ||
Total Assets | 17,741.1 | 18,696.3 |
Operating Segments | Unum International | ||
Segment Reporting Information | ||
Total Assets | 3,872.4 | 4,086.5 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Total Assets | 4,759.5 | 4,895.9 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Total Assets | 36,213.4 | 38,287.9 |
Operating Segments | Corporate | ||
Segment Reporting Information | ||
Total Assets | $ 3,885.3 | $ 4,149 |
Reconciliation of Total Revenue
Reconciliation of Total Revenue and Income Before Income Tax to Operating Revenue and Operating Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Revenue Reconciling Item | ||
Total Revenue | $ 2,982.5 | $ 3,072 |
Net Investment Gain (Loss) | (13.8) | 84.6 |
Closed Block Individual Disability Reinsurance Transaction | ||
Segment Reporting, Revenue Reconciling Item | ||
Amortization of the Cost of Reinsurance | 16.7 | 20 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item | ||
Total Revenue | 2,982.5 | 3,072 |
Net Investment Gain (Loss) | (13.8) | 84.6 |
Adjusted Operating Revenue | 2,996.3 | 2,987.4 |
Income Before Income Tax | 312.1 | 198.8 |
Adjusted Operating Income | 342.6 | 273.5 |
Operating Segments | Closed Block Individual Disability Reinsurance Transaction | ||
Segment Reporting, Revenue Reconciling Item | ||
Net Investment Gain (Loss) | 0 | 67.6 |
Change in Benefit Reserves and Transaction Costs | 0 | (139.3) |
Amortization of the Cost of Reinsurance | (16.7) | (20) |
Total Items Related to Closed Block Individual Disability Reinsurance Transaction | (16.7) | (159.3) |
Operating Segments | Unrelated to Significant Transaction | ||
Segment Reporting, Revenue Reconciling Item | ||
Net Investment Gain (Loss) | $ (13.8) | $ 17 |
Segment Information Segments -
Segment Information Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022Integer | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Employee Benefit Plans Net Peri
Employee Benefit Plans Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Plan | UNITED STATES | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service Cost | $ 1.9 | $ 2.4 |
Interest Cost | 16.8 | 16.3 |
Expected Return on Plan Assets | (26.5) | (25.2) |
Amortization of Net Actuarial (Gain) Loss | 4.1 | 5.3 |
Amortization of Prior Service Credit | 0 | 0 |
Net Periodic Benefit Cost (Credit) | (3.7) | (1.2) |
Pension Plan | UNITED KINGDOM | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service Cost | 0 | 0 |
Interest Cost | 1.4 | 1.1 |
Expected Return on Plan Assets | (3) | (2.5) |
Amortization of Net Actuarial (Gain) Loss | 0.1 | 0.3 |
Amortization of Prior Service Credit | 0 | 0 |
Net Periodic Benefit Cost (Credit) | (1.5) | (1.1) |
Other Postretirement Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Service Cost | 0 | 0 |
Interest Cost | 0.7 | 0.8 |
Expected Return on Plan Assets | (0.1) | (0.1) |
Amortization of Net Actuarial (Gain) Loss | (0.2) | 0 |
Amortization of Prior Service Credit | (0.1) | (0.1) |
Net Periodic Benefit Cost (Credit) | $ 0.3 | $ 0.6 |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Net Income | $ 253.5 | $ 153 |
Denominator | ||
Weighted Average Common Shares - Basic | 202,628,800 | 204,133,300 |
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 875,500 | 604,000 |
Weighted Average Common Shares - Assuming Dilution | 203,504,300 | 204,737,300 |
Net Income Per Common Share | ||
Basic | $ 1.25 | $ 0.75 |
Assuming Dilution | $ 1.25 | $ 0.75 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings Per Common Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders Equity and Earnings Per Common Share Additional Information [Abstract] | ||
Outstanding Restricted Stock Unit Grant Prices Lower Limit | $ 12.45 | |
Outstanding Restricted Stock Unit Grant Prices Upper Limit | $ 36.62 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 300,000 | 1,600,000 |
Authorized Amount of Treasury Share Repurchases Under Stock Repurchase Program | $ 250 | |
Expiration Date of Share Repurchase Program Authorized in October 2021 | Dec. 31, 2022 | |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 50 | |
Cost of Shares Repurchased | $ 37.5 | $ 0 |
Number of Treasury Shares Repurchased | 1,300,000 | 0 |
Remaining Amount of Treasury Share Repurchases Authorized Under Stock Repurchase Program | $ 150 | |
Authorized Shares of Preferred Stock | 25,000,000 | |
Par Value Per Share of Preferred Stock | $ 0.10 | |
Issued Shares of Preferred Stock | 0 |
Debt and Other Disclosures (Det
Debt and Other Disclosures (Details) - USD ($) $ in Millions | Apr. 21, 2022 | Mar. 31, 2022 |
Line of Credit Facility [Abstract] | ||
Letters of Credit Outstanding | $ 0.4 | |
Amount Outstanding on Line of Credit | $ 0 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | |
Line of Credit Facility, Additional Borrowing Capacity If Requested | $ 200 |
Premium Receivable, Allowance f
Premium Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||||
Premium Receivable, Allowance for Credit Loss | $ 35 | $ 33.7 | $ 34.2 | $ 38.8 |
Premiums Receivable, Gross | 600.9 | 602.9 | $ 530.7 | $ 525.8 |
Premium Receivable, Credit Loss Expense (Reversal) | $ 0.8 | $ (5.1) |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 16, 2020 | |
Effects of Reinsurance | |||||
Net Investment Gain (Loss) | $ (13.8) | $ 84.6 | |||
Transaction Costs Related to Reinsurance Transaction | 243.8 | 245 | |||
Reinsurance Recoverables, Incurred but Not Reported Claims | 8,535.3 | 9,225.8 | $ 8,697.8 | $ 8,378.9 | |
Closed Block Individual Disability Reinsurance Transaction | |||||
Effects of Reinsurance | |||||
Amortization of the Cost of Reinsurance | 16.7 | 20 | |||
Closed Block Individual Disability Reinsurance Transaction | Phase 2 | |||||
Effects of Reinsurance | |||||
Negative Ceding Commission | (18.2) | ||||
Net Investment Gain (Loss) | 67.6 | ||||
Increase in Benefits and Change in Reserves for Future Benefits | $ 133.1 | 133.1 | |||
Transaction Costs Related to Reinsurance Transaction | 6.2 | ||||
Reinsurance Recoverables, Incurred but Not Reported Claims | 990 | ||||
Prepaid Reinsurance Premiums | 43.1 | ||||
Deposit Contracts, Assets | 5 | ||||
Closed Block Individual Disability Reinsurance Transaction | Phases 1 and 2 | |||||
Effects of Reinsurance | |||||
Prepaid Reinsurance Premiums | 854.8 | $ 854.8 | |||
Deposit Contracts, Assets | $ 91.8 | $ 91.8 |