Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | 12 Months Ended | ||
Share data in Thousands, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 20, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' | ' |
Entity Registrant Name | ' | 'ING LIFE INSURANCE & ANNUITY CO | ' | ' |
Entity Central Index Key | ' | '0000837010 | ' | ' |
Current Fiscal Year End Date | ' | '--12-31 | ' | ' |
Entity Filer Category | ' | 'Non-accelerated Filer | ' | ' |
Document Type | ' | '10-K | ' | ' |
Document Period End Date | ' | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | ' | '2013 | ' | ' |
Document Fiscal Period Focus | ' | 'FY | ' | ' |
Amendment Flag | ' | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 55 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Public Float | ' | ' | ' | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments: | ' | ' |
Fixed maturities, available-for-sale, at fair value (amortized cost of $19,096.7 at 2013 and $18,458.7 at 2012) | $19,944.40 | $20,690.80 |
Fixed maturities, at fair value using the fair value option | 621.3 | 544.7 |
Equity securities, available-for-sale, at fair value (cost of $119.4 at 2013 and $129.3 at 2012) | 134.9 | 142.8 |
Short-term investments | 15 | 679.8 |
Mortgage loans on real estate, net of valuation allowance of $1.2 at 2013 and $1.3 at 2012 | 3,396.10 | 2,872.70 |
Policy loans | 242 | 240.9 |
Limited partnerships/corporations | 180.9 | 179.6 |
Derivatives | 464.4 | 512.7 |
Securities pledged (amortized cost of $137.9 at 2013 and $207.2 at 2012) | 140.1 | 219.7 |
Total investments | 25,139.10 | 26,083.70 |
Cash and cash equivalents | 378.9 | 363.4 |
Short-term investments under securities loan agreement, including collateral delivered | 135.8 | 186.1 |
Accrued investment income | 285 | 273 |
Receivable for securities sold | 5.5 | 3.9 |
Reinsurance recoverable | 2,016.60 | 2,153.70 |
Deferred policy acquisition costs, Value of business acquired, and Sale inducements to contract owners | 1,189.70 | 695 |
Notes receivable from affiliate | 175 | 175 |
Due from affiliates | 62.9 | 99.8 |
Property and equipment | 78.4 | 81.8 |
Other assets | 108.5 | 101.1 |
Assets held in separate accounts | 60,104.90 | 53,655.30 |
Total assets | 89,680.30 | 83,871.80 |
Liabilities and Shareholder's Equity | ' | ' |
Future policy benefits and contract owner balances | 24,589.60 | 24,191.20 |
Payable for securities purchased | 13.7 | 0 |
Payables under securities loan agreement, including collateral held | 264.4 | 353.2 |
Long-term debt | 4.9 | 4.9 |
Due to affiliates | 121.6 | 95.1 |
Derivatives | 216.6 | 346.8 |
Current income tax payable to Parent | 74.1 | 32.1 |
Deferred income taxes | 190.1 | 507.1 |
Other liabilities | 347 | 424.7 |
Liabilities related to separate accounts | 60,104.90 | 53,655.30 |
Total liabilities | 85,926.90 | 79,610.40 |
Shareholder's equity: | ' | ' |
Common stock (100,000 shares authorized, 55,000 issued and outstanding; $50 per share value) | 2.8 | 2.8 |
Additional paid-in capital | 3,953.30 | 4,217.20 |
Accumulated other comprehensive income | 495.4 | 1,023 |
Retained earnings (deficit) | -698.1 | -981.6 |
Total shareholder's equity | 3,753.40 | 4,261.40 |
Total liabilities and shareholder's equity | $89,680.30 | $83,871.80 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parenthetical (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Fixed maturities, amortized cost | $19,096.70 | $18,458.70 |
Equity securities, cost | 119.4 | 129.3 |
Mortgage loans on real estate valuation allowance | 1.2 | 1.3 |
Securities pledged, amortized costs | $137.90 | $207.20 |
Common stock, par value | $50 | $50 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 55,000 | 55,000 |
Common stock, shares outstanding | 55,000 | 55,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Net investment income | $1,367 | $1,348.80 | $1,420.90 |
Fee income | 744.3 | 648.8 | 614 |
Net premiums | 37.3 | 36 | 33.9 |
Broker-dealer commission revenue | 242.1 | 225.5 | 218.3 |
Net realized capital gains (losses): | ' | ' | ' |
Total other-than-temporary impairments | -9.4 | -14.1 | -116.8 |
Less: Portion of other-than-temporary impairment losses recognized in Other comprehensive income (loss) | -3.5 | -3.2 | -9.5 |
Net other-than-temporary impairments recognized in earnings | -5.9 | -10.9 | -107.3 |
Other net realized capital gains (losses) | -136.3 | 70.2 | -108.5 |
Total net realized capital gains (losses) | -142.2 | 59.3 | -215.8 |
Other revenue | -1.8 | 0 | 14.5 |
Total revenues | 2,246.70 | 2,318.40 | 2,085.80 |
Benefits and expenses: | ' | ' | ' |
Interest credited and other benefits to contract owners/policyholders | 747.1 | 746.7 | 763.4 |
Operating expenses | 707.7 | 696.5 | 692 |
Broker-dealer commission expense | 242.1 | 225.5 | 218.3 |
Net amortization of deferred policy acquisition costs and value of business acquired | 58.3 | 131.1 | 94.2 |
Interest expense | 1 | 2 | 2.6 |
Total benefits and expenses | 1,756.20 | 1,801.80 | 1,770.50 |
Income (loss) before income taxes | 490.5 | 516.6 | 315.3 |
Income tax expense (benefit) | 207 | 191.2 | -5 |
Net income (loss) | $283.50 | $325.40 | $320.30 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $283.50 | $325.40 | $320.30 |
Other comprehensive income (loss), before tax: | ' | ' | ' |
Unrealized gains/losses on securities | -907.4 | 408.7 | 483.8 |
Other-than-temporary impairments | 2.7 | 10.6 | 21.3 |
Pension and other post-employment benefits liability | -2.2 | -2.2 | 7.6 |
Other comprehensive income (loss), before tax | -906.9 | 417.1 | 512.7 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | -379.3 | 141.6 | 155.7 |
Other comprehensive income (loss), after tax | -527.6 | 275.5 | 357 |
Comprehensive income (loss) | ($244.10) | $600.90 | $677.30 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Changes in Shareholder's Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) |
In Millions, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2010 | $3,092 | $2.80 | $4,326 | $390.50 | ($1,627.30) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | 320.3 | ' | ' | ' | 320.3 |
Comprehensive income: | ' | ' | ' | ' | ' |
Other comprehensive income (loss), after tax | 357 | ' | ' | 357 | ' |
Total comprehensive income (loss) | 677.3 | ' | ' | ' | ' |
Dividends paid and distribution of capital | 0 | ' | 0 | ' | ' |
Contribution of capital | 201 | ' | 201 | ' | ' |
Employee related benefits | 6 | ' | 6 | ' | ' |
Ending Balance at Dec. 31, 2011 | 3,976.30 | 2.8 | 4,533 | 747.5 | -1,307 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | 325.4 | ' | ' | ' | 325.4 |
Comprehensive income: | ' | ' | ' | ' | ' |
Other comprehensive income (loss), after tax | 275.5 | ' | ' | 275.5 | ' |
Total comprehensive income (loss) | 600.9 | ' | ' | ' | ' |
Dividends paid and distribution of capital | -340 | ' | -340 | ' | ' |
Contribution of capital | 0 | ' | 0 | ' | ' |
Employee related benefits | 24.2 | ' | 24.2 | ' | ' |
Ending Balance at Dec. 31, 2012 | 4,261.40 | 2.8 | 4,217.20 | 1,023 | -981.6 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | 283.5 | ' | ' | ' | 283.5 |
Comprehensive income: | ' | ' | ' | ' | ' |
Other comprehensive income (loss), after tax | -527.6 | ' | ' | -527.6 | ' |
Total comprehensive income (loss) | -244.1 | ' | ' | ' | ' |
Dividends paid and distribution of capital | -264 | ' | -264 | ' | ' |
Contribution of capital | 0 | ' | 0 | ' | ' |
Employee related benefits | 0.1 | ' | 0.1 | ' | ' |
Ending Balance at Dec. 31, 2013 | $3,753.40 | $2.80 | $3,953.30 | $495.40 | ($698.10) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Net income (loss) | $283.50 | $325.40 | $320.30 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Capitalization of deferred policy acquisition costs, value of business acquired and sales inducements | -79.5 | -88.1 | -88.9 |
Net amortization of deferred policy acquisition costs, value of business acquired and sales inducements | 60.1 | 133.1 | 97.7 |
Net accretion/amortization of discount/premium | 24.4 | 20.7 | 37 |
Future policy benefits, claims reserves and interest credited | 559.9 | 569.9 | 639 |
Deferred income tax expense (benefit) | 62.3 | 9.5 | -65.3 |
Net realized capital (gains) losses | 142.2 | -59.3 | 215.8 |
Depreciation | 3.6 | 3.5 | 3.5 |
Change in: | ' | ' | ' |
Accrued investment income | -12 | -12.8 | -19.7 |
Reinsurance recoverable | 137.1 | 122.6 | 79.6 |
Other receivables and asset accruals | -7.3 | -44.8 | -3.5 |
Due to/from affiliates | 63.4 | -77.8 | 54.3 |
Other payables and accruals | -35.7 | 125 | -91.9 |
Other, net | -18.5 | 60.9 | -64.8 |
Net cash provided by operating activities | 1,183.50 | 1,087.80 | 1,113.10 |
Proceeds from the sale, maturity, disposal or redemption of: | ' | ' | ' |
Fixed maturities | 3,618.70 | 3,868.70 | 6,468.50 |
Equity securities, available-for-sale | 0.7 | 2.4 | 63.1 |
Mortgage loans on real estate | 270.9 | 492.2 | 332.8 |
Limited partnerships/corporations | 35.1 | 339.4 | 93 |
Acquisition of: | ' | ' | ' |
Fixed maturities | -4,368.60 | -5,484.70 | -7,662 |
Equity securities, available-for-sale | -9.2 | -0.7 | -5.7 |
Mortgage loans on real estate | -794.2 | -991.3 | -863.1 |
Limited partnerships/corporations | -20 | -46.1 | -68.5 |
Derivatives, net | -276.6 | -36.4 | -78.6 |
Policy loans, net | -1.1 | 5 | 7.1 |
Short-term investments, net | 664.9 | -463 | 5.3 |
Loan-Dutch State obligation, net | 0 | 416.8 | 122.4 |
Collateral (delivered) received, net | -38.5 | 57.1 | 105.3 |
Purchases of fixed assets, net | -0.2 | -0.6 | -0.8 |
Net cash used in investing activities | -918.1 | -1,841.20 | -1,481.20 |
Cash Flows from Financing Activities: | ' | ' | ' |
Deposits received for investment contracts | 2,723.40 | 2,884.30 | 3,115.40 |
Maturities and withdrawals from investment contracts | -2,709.30 | -2,292.60 | -2,403.60 |
Short-term loans to affiliates, net | 0 | 648 | -343.9 |
Short-term repayments of repurchase agreements, net | 0 | 0 | -214.7 |
Dividends paid and return of capital distribution | -264 | -340 | 0 |
Capital contribution from parent | 0 | 0 | 201 |
Net cash provided by (used in) financing activities | -249.9 | 899.7 | 354.2 |
Net increase (decrease) in cash and cash equivalents | 15.5 | 146.3 | -13.9 |
Cash and cash equivalents, beginning of year | 363.4 | 217.1 | 231 |
Cash and cash equivalents, end of year | 378.9 | 363.4 | 217.1 |
Supplemental cash flow information: | ' | ' | ' |
Income taxes paid, net | 102.6 | 170.1 | 108.4 |
Interest paid | $0 | $0 | $0.30 |
Business_Basis_of_Presentation
Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Business, Basis of Presentation and Significant Accounting Policies | ' | |
Business | ||
ING Life Insurance and Annuity Company ("ILIAC") is a stock life insurance company domiciled in the State of Connecticut. ILIAC and its wholly owned subsidiaries (collectively, "the Company") provide financial products and services in the United States. ILIAC is authorized to conduct its insurance business in all states and in the District of Columbia. | ||
In 2009, ING Groep N.V. ("ING Group" or "ING"), a global financial services holding company based in The Netherlands, with American Depository Shares listed on the New York Stock Exchange, announced the anticipated separation of its global banking and insurance businesses, including the divestiture of ING U.S., Inc., which together with its subsidiaries, including the Company, constituted ING's U.S.-based retirement, investment management and insurance operations. On May 2, 2013, the common stock of ING U.S., Inc. began trading on the New York Stock Exchange under the symbol "VOYA." On May 7, 2013 and May 31, 2013, ING U.S., Inc. completed its initial public offering of common stock, including the issuance and sale by ING U.S., Inc. of 30,769,230 shares of common stock and the sale by ING Insurance International B.V. ("ING International"), an indirect, wholly owned subsidiary of ING Group and previously the sole stockholder of ING U.S., Inc., of 44,201,773 shares of outstanding common stock of ING U.S., Inc. (collectively, "the IPO"). On September 30, 2013, ING International transferred all of its shares of ING U.S., Inc. common stock to ING Group. | ||
On October 29, 2013, ING Group completed a sale of 37,950,000 shares of common stock of ING U.S., Inc. in a registered public offering, reducing ING Group's ownership of ING U.S., Inc. to 57%. | ||
On March 25, 2014, ING Group completed a sale of 30,475,000 shares of common stock of ING U.S., Inc. in a registered public offering. On March 25, 2014, pursuant to the terms of a share repurchase agreement between ING Group and ING U.S., Inc., ING U.S., Inc. acquired 7,255,853 shares of its common stock from ING Group (the "Direct Share Buyback") (the offering and the Direct Share Buyback collectively, the "Transactions"). Upon completion of the Transactions, ING Group's ownership of ING U.S., Inc. was reduced to approximately 43%. | ||
ILIAC is a direct, wholly owned subsidiary of Lion Connecticut Holdings Inc. ("Lion" or "the Parent"), which is a direct, wholly owned subsidiary of ING U.S., Inc. | ||
On April 11, 2013, ING U.S., Inc. announced plans to rebrand as Voya Financial, and in January 2014, ING U.S., Inc. announced additional details regarding the operational and legal work associated with the rebranding. Based on current expectations, ING U.S., Inc. will change its legal name to Voya Financial, Inc. in April 2014; and in May 2014 its Investment Management and Employee Benefits businesses will begin using the Voya Financial brand. In September 2014, ING U.S.’s remaining businesses will begin using the Voya Financial brand and all remaining ING U.S. legal entities that currently have names incorporating the “ING” brand, including the Company, will change their names to reflect the Voya brand. ING U.S., Inc. anticipates that the process of changing all marketing materials, operating materials and legal entity names containing the word “ING” or “Lion” to the new brand name will take approximately 24 months. | ||
The Company offers qualified and nonqualified annuity contracts and funding agreements that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as nonqualified deferred compensation plans and related services. The Company's products are offered primarily to individuals, pension plans, small businesses and employer-sponsored groups in the health care, government and education markets (collectively "tax exempt markets") and corporate markets. The Company's products are generally distributed through pension professionals, independent agents and brokers, third-party administrators, banks, dedicated career agents and financial planners. | ||
Products offered by the Company include deferred and immediate (i.e., payout) annuity contracts and funding agreements. Company products also include programs offered to qualified retirement plans and nonqualified deferred compensation plans that package administrative and record-keeping services along with a variety of investment options, including affiliated and nonaffiliated mutual funds and variable and fixed investment options. In addition, the Company offers wrapper agreements entered into with retirement plans, which contain certain benefit responsive guarantees (i.e., guarantees of principal and previously accrued interest for benefits paid under the terms of the plan) with respect to portfolios of plan-owned assets not invested with the Company. The Company also offers pension and retirement savings plan administrative services. | ||
The Company has one operating segment. | ||
Basis of Presentation | ||
The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). | ||
The Consolidated Financial Statements include the accounts of ILIAC and its wholly owned subsidiaries, ING Financial Advisers, LLC ("IFA") and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated. | ||
Certain immaterial reclassifications have been made to prior year financial information to conform to the current year classifications. | ||
Significant Accounting Policies | ||
Estimates and Assumptions | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. | ||
The Company has identified the following accounts and policies as the most significant in that they involve a higher degree of judgment, are subject to a significant degree of variability and/or contain significant accounting estimates: | ||
Reserves for future policy benefits, deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA"), valuation of investments and derivatives, impairments, income taxes and contingencies. | ||
Fair Value Measurement | ||
The Company measures the fair value of its financial assets and liabilities based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or nonperformance risk, which is the risk the Company will not fulfill its obligation. The estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability ("exit price") in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability. The Company utilizes a number of valuation sources to determine the fair values of its financial assets and liabilities, including quoted market prices, third-party commercial pricing services, third-party brokers, industry-standard, vendor-provided software that models the value based on market observable inputs and other internal modeling techniques based on projected cash flows. | ||
Investments | ||
The accounting policies for the Company's principal investments are as follows: | ||
Fixed Maturities and Equity Securities: The Company's fixed maturities and equity securities are currently designated as available-for-sale, except those accounted for using the fair value option ("FVO"). Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in Accumulated other comprehensive income (loss) ("AOCI") and presented net of related changes in DAC, VOBA and deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Consolidated Balance Sheets. | ||
The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and valued at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
Purchases and sales of fixed maturities and equity securities, excluding private placements, are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out basis. | ||
Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recorded when declared. Such dividends and interest income are recorded in Net investment income in the Consolidated Statements of Operations. | ||
Included within fixed maturities are loan-backed securities, including residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and asset-backed securities ("ABS"). Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed securities ("MBS") and ABS are estimated by management using inputs obtained from third-party specialists, including broker-dealers, and based on management's knowledge of the current market. For prepayment-sensitive securities such as interest-only and principal-only strips, inverse floaters and credit-sensitive MBS and ABS securities, which represent beneficial interests in securitized financial assets that are not of high credit quality or that have been credit impaired, the effective yield is recalculated on a prospective basis. For all other MBS and ABS, the effective yield is recalculated on a retrospective basis. | ||
Short-term Investments: Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. These investments are stated at fair value. | ||
Assets Held in Separate Accounts: Assets held in separate accounts are reported at the fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments, cash and fixed maturities. | ||
Mortgage Loans on Real Estate: The Company's mortgage loans on real estate are all commercial mortgage loans, which are reported at amortized cost, less impairment write-downs and allowance for losses. If a mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the lower of either the present value of expected cash flows from the loan discounted at the loan's original purchase yield or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing a permanent write-down recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Property obtained from foreclosed mortgage loans is recorded in Other investments on the Consolidated Balance Sheets. | ||
Mortgage loans are evaluated by the Company's investment professionals, including an appraisal of loan-specific credit quality, property characteristics and market trends. Loan performance is continuously monitored on a loan-specific basis throughout the year. The Company's review includes submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review evaluates whether the properties are performing at a consistent and acceptable level to secure the debt. | ||
Mortgages are rated for the purpose of quantifying the level of risk. Those loans with higher risk are placed on a watch list and are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. The Company defines delinquent mortgage loans consistent with industry practice as 60 days past due. | ||
The Company's policy is to recognize interest income until a loan becomes 90 days delinquent or foreclosure proceedings are commenced, at which point interest accrual is discontinued. Interest accrual is not resumed until the loan is brought current. | ||
The Company records an allowance for probable losses incurred on non-impaired loans on an aggregate basis, rather than specifically identified probable losses incurred by individual loan. | ||
Policy Loans: Policy loans are carried at an amount equal to the unpaid balance. Interest income on such loans is recorded as earned in Net investment income using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as these loans are collateralized by the cash surrender value of the associated insurance contracts. Any unpaid principal or interest on the loan is deducted from the account value or the death benefit prior to settlement of the policy. | ||
Limited Partnerships/Corporations: The Company uses the equity method of accounting for investments in limited partnership interests, which consists primarily of private equities and hedge funds. Generally, the Company records its share of earnings using a lag methodology, relying upon the most recent financial information available, generally not to exceed three months. The Company's earnings from limited partnership interests accounted for under the equity method are recorded in Net investment income. | ||
Securities Lending: The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned securities. For certain transactions, a lending agent may be used and the agent may retain some or all of the collateral deposited by the borrower and transfer the remaining collateral to the Company. Collateral retained by the agent is invested in liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. | ||
Other-than-temporary Impairments | ||
The Company periodically evaluates its available-for-sale investments to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. Factors considered in this analysis include, but are not limited to, the length of time and the extent to which the fair value has been less than amortized cost, the issuer's financial condition and near-term prospects, future economic conditions and market forecasts, interest rate changes and changes in ratings of the security. An extended and severe unrealized loss position on a fixed maturity may not have any impact on: (a) the ability of the issuer to service all scheduled interest and principal payments and (b) the evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for certain equity securities, the Company gives greater weight and consideration to a decline in market value and the likelihood such market value decline will recover. | ||
When assessing the Company's intent to sell a security or if it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, management evaluates facts and circumstances such as, but not limited to, decisions to rebalance the investment portfolio and sales of investments to meet cash flow or capital needs. | ||
When the Company has determined it has the intent to sell or if it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis and the fair value has declined below amortized cost ("intent impairment"), the individual security is written down from amortized cost to fair value, and a corresponding charge is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations as an other-than-temporary impairment ("OTTI"). If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, but the Company has determined that there has been an other-than-temporary decline in fair value below the amortized cost basis, the OTTI is bifurcated into the amount representing the present value of the decrease in cash flows expected to be collected ("credit impairment") and the amount related to other factors ("noncredit impairment"). The credit impairment is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations. The noncredit impairment is recorded in Other comprehensive income (loss). | ||
The Company uses the following methodology and significant inputs to determine the amount of the OTTI credit loss: | ||
• | When determining collectability and the period over which the value is expected to recover for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company applies the same considerations utilized in its overall impairment evaluation process, which incorporates information regarding the specific security, the industry and geographic area in which the issuer operates and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from the Company's best estimates of likely scenario-based outcomes, after giving consideration to a variety of variables that includes, but is not limited to: general payment terms of the security; the likelihood that the issuer can service the scheduled interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. | |
• | Additional considerations are made when assessing the unique features that apply to certain structured securities such as subprime, Alt-A, non-agency, RMBS, CMBS and ABS. These additional factors for structured securities include, but are not limited to: the quality of underlying collateral; expected prepayment speeds; loan-to-value ratios; debt service coverage ratios; current and forecasted loss severity; consideration of the payment terms of the underlying assets backing a particular security; and the payment priority within the tranche structure of the security. | |
• | When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, the Company considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process, which incorporates available information and the Company's best estimate of scenario-based outcomes regarding the specific security and issuer; possible corporate restructurings or asset sales by the issuer; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates and the overall macroeconomic conditions. | |
• | The Company performs a discounted cash flow analysis comparing the current amortized cost of a security to the present value of future cash flows expected to be received including estimated defaults and prepayments. The discount rate is generally the effective interest rate of the fixed maturity prior to impairment. | |
In periods subsequent to the recognition of the credit related impairment components of OTTI on a fixed maturity, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into net investment income over the remaining term of the fixed maturity in a prospective manner based on the amount and timing of estimated future cash flows. | ||
Derivatives | ||
The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. | ||
The Company enters into interest rate, equity market, credit default and currency contracts, including swaps, futures, forwards, caps, floors and options, to reduce and manage various risks associated with changes in value, yield, price, cash flow or exchange rates of assets or liabilities held or intended to be held, or to assume or reduce credit exposure associated with a referenced asset, index, or pool. The Company also utilizes options and futures on equity indices to reduce and manage risks associated with its annuity products. Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge as either (a) a hedge of the exposure to changes in the estimated fair value of a recognized asset or liability or an identified portion thereof that is attributable to a particular risk ("fair value hedge") or (b) a hedge of a forecasted transaction or of the variability of cash flows that is attributable to interest rate risk to be received or paid related to a recognized asset or liability ("cash flow hedge"). In this documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. | ||
• | Fair Value Hedge: For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the hedged item, to the extent of the risk being hedged, are recognized in Other net realized capital gains (losses). | |
• | Cash Flow Hedge: For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same periods during which the hedged transaction impacts earnings in the same line item associated with the forecasted transaction. The ineffective portion of the derivative's change in value, if any, along with any of the derivative's change in value that is excluded from the assessment of hedge effectiveness, are recorded in Other net realized capital gains (losses). | |
When hedge accounting is discontinued because it is determined that the derivative is no longer expected to be highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with subsequent changes in estimated fair value recognized immediately in Other net realized capital gains (losses). The carrying value of the hedged asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in Other comprehensive income (loss) related to discontinued cash flow hedges are released into the Consolidated Statements of Operations when the Company's earnings are affected by the variability in cash flows of the hedged item. | ||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with changes in estimated fair value recognized immediately in Other net realized capital gains (losses). Derivative gains and losses recorded in Other comprehensive income (loss) pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in Other net realized capital gains (losses). | ||
The Company also has investments in certain fixed maturities and has issued certain annuity products that contain embedded derivatives whose fair value is at least partially determined by levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity markets or credit ratings/spreads. Embedded derivatives within fixed maturities are included with the host contract on the Consolidated Balance Sheets and changes in fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Embedded derivatives within certain annuity products are included in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
In addition, the Company has entered into a reinsurance agreement, accounted for under the deposit method, that contains an embedded derivative, the fair value of which is based on the change in the fair value of the underlying assets held in trust. The embedded derivative is included in Other liabilities on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivative are recorded in Interest credited and other benefit to contract owners/policyholders in the Consolidated Statements of Operations. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash on hand, amounts due from banks and other highly liquid investments, such as money market instruments and debt instruments with maturities of three months or less at the time of purchase. Cash and cash equivalents are stated at fair value. | ||
Property and Equipment | ||
Property and equipment are carried at cost, less accumulated depreciation and included in Other assets on the Consolidated Balance Sheets. Expenditures for replacements and major improvements are capitalized; maintenance and repair expenditures are expensed as incurred. Depreciation on property and equipment is provided on a straight-line basis over the estimated useful lives of the assets with the exception of land and artwork, which are not depreciated as follows: | ||
Estimated Useful Lives | ||
Buildings | 40 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | 10 years, or the life of the lease, whichever is shorter | |
Equipment | 3 years | |
Deferred Policy Acquisition Costs and Value of Business Acquired | ||
DAC represents policy acquisition costs that have been capitalized and are subject to amortization and interest. Capitalized costs are incremental, direct costs of contract acquisition and certain costs related directly to successful acquisition activities. Such costs consist principally of commissions, underwriting, sales and contract issuance and processing expenses directly related to the successful acquisition of new and renewal business. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. VOBA represents the outstanding value of in force business acquired and is subject to amortization and interest. The value is based on the present value of estimated net cash flows embedded in the insurance contracts at the time of the acquisition and increased for subsequent deferrable expenses on purchased policies. | ||
Amortization Methodologies | ||
The Company amortizes DAC and VOBA related to fixed and variable deferred annuity contracts over the estimated lives of the contracts in relation to the emergence of estimated gross profits. Assumptions as to mortality, persistency, interest crediting rates, fee income, returns associated with separate account performance, impact of hedge performance, expenses to administer the business and certain economic variables, such as inflation, are based on the Company's experience and overall capital markets. At each valuation date, estimated gross profits, are updated with actual gross profits and the assumptions underlying future estimated gross profits are evaluated for continued reasonableness. Adjustments to estimated gross profits require that amortization rates be revised retroactively to the date of the contract issuance ("unlocking"). | ||
Recoverability testing is performed for current issue year products to determine if gross revenues are sufficient to cover DAC and VOBA estimated benefits and expenses. In subsequent years, the Company performs testing to assess the recoverability of DAC and VOBA balances on an annual basis, or more frequently if circumstances indicate a potential loss recognition issue exists. If DAC or VOBA are not deemed recoverable from future gross profits, changes will be applied against DAC or VOBA balances before an additional reserve is established. | ||
Internal Replacements | ||
Contract owners may periodically exchange one contract for another, or make modifications to an existing contract. These transactions are identified as internal replacements. Internal replacements that are determined to result in substantially unchanged contracts are accounted for as continuations of the replaced contracts. Any costs associated with the issuance of the new contracts are considered maintenance costs and expensed as incurred. Unamortized DAC and VOBA related to the replaced contracts continue to be deferred and amortized in connection with the new contracts. Internal replacements that are determined to result in contracts that are substantially changed are accounted for as extinguishments of the replaced contracts, and any unamortized DAC and VOBA related to the replaced contracts are written off to Net amortization of deferred policy acquisition costs and value of business acquired in the Consolidated Statements of Operations. | ||
Assumptions | ||
Changes in assumptions can have a significant impact on DAC and VOBA balances, amortization rates and results of operations. Assumptions are management's best estimate of future outcome. | ||
Several assumptions are considered significant in the estimation of gross profits associated with the Company's variable products. One significant assumption is the assumed return associated with the variable account performance. To reflect the volatility in the equity markets, this assumption involves a combination of near-term expectations and long-term assumptions regarding market performance. The overall return on the variable account is dependent on multiple factors, including the relative mix of the underlying sub-accounts among bond funds and equity funds, as well as equity sector weightings. The Company's practice assumes that intermediate-term appreciation in equity markets reverts to the long-term appreciation in equity markets ("reversion to the mean"). The Company monitors market events and only changes the assumption when sustained deviations are expected. This methodology incorporates a 9% long-term equity return assumption, a 14% cap and a five-year look-forward period. | ||
Other significant assumptions used in the estimation of gross profits for products with credited rates include interest spreads and credit losses. Estimated gross profits of variable annuity contracts are sensitive to estimated policyholder behavior assumptions, such as surrender, lapse and annuitization rates. | ||
Future Policy Benefits and Contract Owner Accounts | ||
Future Policy Benefits | ||
The Company establishes and carries actuarially-determined reserves that are calculated to meet its future obligations. Reserves also include estimates of unpaid claims, as well as claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. The principal assumptions used to establish liabilities for future policy benefits are based on Company experience and periodically reviewed against industry standards. These assumptions include mortality, morbidity, policy lapse, contract renewal, payment of subsequent premiums or deposits by the contract owner, retirement, investment returns, inflation, benefit utilization and expenses. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations. | ||
Reserves for payout contracts with life contingencies are equal to the present value of expected future payments. Assumptions as to interest rates, mortality, and expenses are based on the Company's experience at the period the policy is sold or acquired, including a provision for adverse deviation. Such assumptions generally vary by annuity plan type, year of issue and policy duration. Interest rates used to calculate the present value of future benefits ranged from 3.0% to 8.3%. | ||
Although assumptions are "locked-in" upon the issuance of payout contracts with life contingencies, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are determined based on best estimate assumptions that exist at the time the premium deficiency reserve is established and do not include a provision for adverse deviation. | ||
Contract Owner Account Balances | ||
Contract owner account balances relate to investment-type contracts and certain annuity product guarantees, as follows: | ||
• | Account balances for fixed annuities and payout contracts without life contingencies are equal to cumulative deposits, less charges and withdrawals, plus credited interest thereon. Credited interest rates vary by product and ranged up to 8.0% for the years 2013, 2012 and 2011. Account balances for group immediate annuities without life contingent payouts are equal to the discounted value of the payment at the implied break-even rate. | |
• | For fixed-indexed annuity contracts ("FIAs"), the aggregate initial liability is equal to the deposit received, plus a bonus, if applicable, and is split into a host component and an embedded derivative component. Thereafter, the host liability accumulates at a set interest rate, and the embedded derivative liability is recognized at fair value. | |
Product Guarantees and Additional Reserves | ||
The Company calculates additional reserve liabilities for certain variable annuity guaranteed benefits and variable funding agreements. The Company periodically evaluates its estimates and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations. | ||
GMDB: Reserves for annuity guaranteed minimum death benefits ("GMDB") are determined by estimating the value of expected benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. Expected experience is based on a range of scenarios. Assumptions used, such as the long-term equity market return, lapse rate and mortality, are consistent with assumptions used in estimating gross profits for purposes of amortizing DAC. The assumptions of investment performance and volatility are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor's ("S&P") 500 Index. Reserves for GMDB are recorded in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets. Changes in reserves for GMDB are reported in Interest credited and other benefits to contract owner/policyholders in the Consolidated Statements of Operations. | ||
FIA: FIAs contain embedded derivatives that are measured at estimated fair value separately from the host contracts. Such embedded derivatives are recorded in Future policy benefits and contract owner account balances, with changes in estimated fair value, along with attributed fees collected or payments made, are reported in Other net realized capital gains (losses) in the Statements of Operations. | ||
The estimated fair value of the FIA contracts is based on the present value of the excess of interest payments to the contract owners over the growth in the minimum guaranteed contract value. The excess interest payments are determined as the excess of projected index driven benefits over the projected guaranteed benefits. The projection horizon is over the anticipated life of the related contracts, which takes into account best estimate actuarial assumptions, such as partial withdrawals, full surrenders, deaths, annuitizations and maturities. | ||
Stabilizer and MCG: Products with guaranteed credited rates treat the guarantee as an embedded derivative for Stabilizer products and a stand-alone derivative for managed custody guarantee products ("MCG"). These derivatives are measured at estimated fair value and recorded in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets. Changes in estimated fair value along with attributed fees collected are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
The estimated fair value of the Stabilizer and MCG contracts is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are projected under multiple capital market scenarios using observable risk-free rates and other best estimate assumptions. | ||
The FIA and Stabilizer embedded derivative liabilities and the stand-alone derivative for MCG include a risk margin to capture uncertainties related to policyholder behavior assumptions. The margin represents additional compensation a market participant would require to assume these risks. | ||
The discount rate used to determine the fair value of FIA and Stabilizer embedded derivative liabilities and the stand-alone derivative for MCG includes an adjustment to reflect the risk that these obligations will not be fulfilled ("nonperformance risk"). | ||
Separate Accounts | ||
Separate account assets and liabilities generally represent funds maintained to meet specific investment objectives of contract owners or participants who bear the investment risk, subject, in limited cases, to minimum guaranteed rates. Investment income and investment gains and losses generally accrue directly to such contract owners. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company or its affiliates. | ||
Separate account assets supporting variable options under variable annuity contracts are invested, as designated by the contract owner or participant under a contract, in shares of mutual funds that are managed by the Company or its affiliates, or in other selected mutual funds not managed by the Company or its affiliates. | ||
The Company reports separately, as assets and liabilities, investments held in the separate accounts and liabilities of separate accounts if: | ||
• | Such separate accounts are legally recognized; | |
• | Assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; | |
• | Investments are directed by the contract owner or participant; and | |
• | All investment performance, net of contract fees and assessments, is passed through to the contract owner. | |
The Company reports separate account assets that meet the above criteria at fair value on the Consolidated Balance Sheets based on the fair value of the underlying investments. Separate account liabilities equal separate account assets. Investment income and net realized and unrealized capital gains (losses) of the separate accounts, however, are not reflected in the Consolidated Statements of Operations. The Consolidated Statements of Cash Flows do not reflect investment activity of the separate accounts. | ||
Long-term Debt | ||
Long-term debt carried at an amount equal to the unpaid principal balance, net of any remaining unamortized discount or premium attributable to issuance. Direct and incremental costs to issue the debt are recorded in Other assets on the Consolidated Balance Sheets and are recognized as a component of Interest expense in the Consolidated Statements of Operations over the life of the debt, using the effective interest method of amortization. | ||
Repurchase Agreements | ||
The Company engages in dollar repurchase agreements with MBS ("dollar rolls") and repurchase agreements with other collateral types to increase its return on investments and improve liquidity. Such arrangements meet the requirements to be accounted for as financing arrangements. | ||
The Company enters into dollar roll transactions by selling existing MBS and concurrently entering into an agreement to repurchase similar securities within a short time frame at a lower price. Under repurchase agreements, the Company borrows cash from a counterparty at an agreed upon interest rate for an agreed upon time frame and pledges collateral in the form of securities. At the end of the agreement, the counterparty returns the collateral to the Company, and the Company, in turn, repays the loan amount along with the additional agreed upon interest. | ||
Company policy requires that at all times during the term of the dollar roll and repurchase agreements that cash or other collateral types obtained is sufficient to allow the Company to fund substantially all of the cost of purchasing replacement assets. Cash received is invested in Short-term investments, with the offsetting obligation to repay the loan included as an Other liability on the Consolidated Balance Sheets. The carrying value of the securities pledged in dollar rolls and repurchase agreement transactions and the related repurchase obligation are included in Securities pledged and Short-term debt, respectively, on the Consolidated Balance Sheets. | ||
The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments. The Company believes the counterparties to the dollar rolls and repurchase agreements are financially responsible and that the counterparty risk is minimal. | ||
Recognition of Insurance Revenue and Related Benefits | ||
Premiums related to payouts contracts with life contingencies are recognized in Premiums in the Consolidated Statements of Operations when due from the contract owner. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded in Interest credited and other benefits to contract owners in the Consolidated Statements of Operations when incurred. | ||
Amounts received as payment for investment-type, fixed annuities, payout contracts without life contingencies and FIA contracts are reported as deposits to contract owner account balances. Revenues from these contracts consist primarily of fees assessed against the contract owner account balance for mortality and policy administration charges and are reported in Fee income. Surrender charges are reported in Other revenue. In addition, the Company earns investment income from the investment of contract deposits in the Company's general account portfolio, which is reported in Net investment income in the Consolidated Statements of Operations. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are deferred and amortized into revenue over the expected life of the related contracts in proportion to estimated gross profits in a manner consistent with DAC for these contracts. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration and interest credited to contract owner account balances. | ||
Income Taxes | ||
The Company uses certain assumptions and estimates in determining the income taxes payable or refundable to/from ING U.S., Inc. for the current year, the deferred income tax liabilities and assets for items recognized differently in its financial statements from amounts shown on its income tax returns and the federal income tax expense. Determining these amounts requires analysis and interpretation of current tax laws and regulations, including the loss limitation rules associated with change in control. Management exercises considerable judgment in evaluating the amount and timing of recognition of the resulting income tax liabilities and assets. These judgments and estimates are reevaluated on a continual basis as regulatory and business factors change. | ||
The Company's deferred tax assets and liabilities resulting from temporary differences between financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. | ||
Deferred tax assets represent the tax benefit of future deductible temporary differences and operating loss and tax credit carryforwards. The Company evaluates and tests the recoverability of its deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: | ||
• | The nature and character of the deferred tax assets and liabilities; | |
• | Taxable income in prior carryback years; | |
• | Projected future taxable income, exclusive of reversing temporary differences and carryforwards; | |
• | Projected future reversals of existing temporary differences; | |
• | The length of time carryforwards can be utilized; | |
• | Prudent and feasible tax planning strategies the Company would employ to avoid a tax benefit from expiring unused; | |
• | The nature, frequency and severity of cumulative U.S. GAAP losses in recent years; and | |
• | Tax rules that would impact the utilization of the deferred tax assets. | |
In establishing unrecognized tax benefits, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. The Company also considers positions that have been reviewed and agreed to as part of an examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized. Tax positions that meet this standard are recognized in the Consolidated Financial Statements. The Company measures the tax position as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate resolution with the tax authority that has full knowledge of all relevant information. | ||
Certain changes or future events, such as changes in tax legislation, completion of tax audits, planning opportunities and expectations about future outcome could have an impact on the Company's estimates of valuation allowances, deferred taxes, tax provisions and effective tax rates. | ||
Reinsurance | ||
The Company utilizes reinsurance agreements in most aspects of its insurance business to reduce its exposure to large losses. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured. | ||
For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk. The Company reviews all contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. The assumptions used to account for long-duration reinsurance agreements are consistent with those used for the underlying contracts. Ceded future policy benefits and contract owner account balances are reported gross on the Consolidated Balance Sheets. | ||
Long-duration: For reinsurance of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid and benefits received related to the underlying contracts is included in the expected net cost of reinsurance which is recorded as a component of the reinsurance asset or liability. Any difference between actual and expected net cost of reinsurance is recognized in the current period and included as a component of profits used to amortize DAC. | ||
If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Interest is recorded as Other revenues or Other expenses, as appropriate. | ||
Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance. The Company also evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the Company's Consolidated Balance Sheets and are stated net of allowances for uncollectible reinsurance. Amounts currently recoverable and payable under reinsurance agreements are included in Reinsurance recoverable and Other liabilities, respectively. Such assets and liabilities relating to reinsurance agreements with the same reinsurer are recorded net on the Consolidated Balance Sheets if a right of offset exists within the reinsurance agreement. | ||
Premiums, Fee income and Policyholder benefits are reported net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in Other revenue. | ||
The Company utilizes a reinsurance agreement, accounted for under the deposit method, to manage reserve and capital requirements in connection with a portion of its deferred annuities business. The agreement contains and embedded derivative whose carrying value is estimated based on the change in the fair value of the assets supporting the funds withheld under the agreement. | ||
The Company currently has a significant concentration of ceded reinsurance with a subsidiary of Lincoln National Corporation ("Lincoln") arising from the disposition of its individual life insurance business. | ||
Contingencies | ||
A loss contingency is an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur. Examples of loss contingencies include pending or threatened adverse litigation, threat of expropriation of assets and actual or possible claims and assessments. Amounts related to loss contingencies are accrued and recorded in Other liabilities on the Consolidated Balance Sheets if it is probable that a loss has been incurred and the amount can be reasonably estimated, based on the Company's best estimate of the ultimate outcome. If determined to meet the criteria for a reserve, the Company also evaluates whether there are external legal or other costs directly associated with the resolution of the matter and accrues such costs if estimable. | ||
Adoption of New Pronouncements | ||
Financial Instruments | ||
Derivatives and Hedging | ||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-10, "Derivatives and Hedging (Accounting Standards Codification ("ASC")Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes" ("ASU 2013-10"), which permits an entity to use the Fed Funds Effective Swap Rate ("OIS") to be used as a U.S. benchmark interest rate for hedge accounting purposes. In addition, the guidance removes the restriction on using different benchmark rates for similar hedges. | ||
The provisions of ASU 2013-10 were adopted by the Company on July 17, 2013 for qualifying new or redesigned hedges entered into on or after that date. The adoption had no effect on the Company's financial condition, results of operations or cash flows. | ||
Deferred Policy Acquisition Costs | ||
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts | ||
In October 2010, the FASB issued ASU 2010-26, "Financial Services - Insurance (ASC Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts" ("ASU 2010-26"), which clarifies what costs relating to the acquisition of new or renewal insurance contracts qualify for deferral. Costs that should be capitalized include (1) incremental direct costs of successful contract acquisition and (2) certain costs related directly to successful acquisition activities (underwriting, policy issuance and processing, medical and inspection and sales force contract selling) performed by the insurer for the contract. Advertising costs should be included in deferred acquisition costs only if the capitalization criteria in the U.S. GAAP direct-response advertising guidance are met. All other acquisition-related costs should be charged to expense as incurred. | ||
The provisions of ASU 2010-26 were adopted retrospectively by the Company on January 1, 2012. As a result of implementing ASU 2010-26, the Company recognized a cumulative effect of change in accounting principle of $375.9, net of income taxes of $202.4, as a reduction to January 1, 2010 Retained earnings (deficit). In addition, the Company recognized a $13.9 increase to AOCI. | ||
Presentation and Disclosure | ||
Disclosures about Offsetting Assets and Liabilities | ||
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (ASC Topic 210): Disclosures about Offsetting Assets and Liabilities" (ASU 2011-11), which requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position, as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. | ||
In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (ASC Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities" ("ASU 2013-01"), which clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with ASU Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. | ||
The provisions of ASU 2013-01 and ASU 2011-11 were adopted retrospectively by the Company on January 1, 2013. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the pronouncement only pertains to additional disclosure. The disclosures required by ASU 2011-11 and ASU 2013-01 are included in "Note 3. Derivative Financial Instruments." | ||
Disclosures about Amounts Reclassified out of Accumulated Other Comprehensive Income | ||
In January 2013, the FASB issued ASU 2013-02, "Comprehensive Income (ASC Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02"), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income, in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. | ||
The provisions of ASU 2013-02 were adopted by the Company on January 1, 2013. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the pronouncement only pertains to additional disclosure. The disclosures required by ASU 2013-02, including comparative period disclosures, are included in "Note 9. Accumulated Other Comprehensive Income (Loss)." | ||
Future Adoption of Accounting Pronouncements | ||
Income Taxes | ||
In July 2013, the FASB issued ASU 2013-11, "Income Taxes (ASC Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"), which clarifies that: | ||
• | An unrecognized tax benefit should be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, except, | |
• | An unrecognized tax benefit should be presented as a liability and not be combined with a deferred tax asset (i) to the extent a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or (ii) the tax law does not require the entity to use, or the entity does not intend to use, the deferred tax asset for such a purpose. | |
• | The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. | |
The provisions of ASU 2013-11 are effective for years, and interim periods within those years, beginning after December 15, 2013, and should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The Company does not expect ASU 2013-11 to have an impact on its financial condition, results of operations or cash flows, as the guidance is consistent with that currently applied. | ||
Joint and Several Liability Arrangements | ||
In February 2013, the FASB issued ASU 2013-04, "Liabilities (ASC Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date" ("ASU 2013-04"), which requires an entity to measure obligations resulting from joint and several liable arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount it expects to pay on behalf of its co-obligors. ASU 2013-04 also requires an entity to disclose the nature and amount of the obligation, as well as other information about those obligations. | ||
The provisions of ASU 2013-04 are effective for years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied retrospectively for those obligations resulting from joint and several liability arrangements that exist at the beginning of an entity's year of adoption. The Company does not expect ASU 2013-04 to have an impact on its financial condition, results of operations or cash flows, as the Company does not have any fixed obligations under joint and several liable arrangements as of December 31, 2013. | ||
Fees Paid to the Federal Government by Health Insurers | ||
In July 2011, the FASB issued ASU 2011-06, "Other Expenses (Topic 720): Fees Paid to the Federal Government by Health Insurers" ("ASU 2011-06"), which specifies how health insurers should recognize and classify the annual fee imposed by the Patient Protection and Affordable Care Act as amended by the Health Care Education Reconciliation Act (the "Acts"). The liability for the fee should be estimated and recorded in full at the time the entity provides qualifying health insurance in the year in which the fee is payable, with a corresponding deferred cost that is amortized to expense. | ||
The provisions of ASU 2011-06 are effective for calendar years beginning after December 31, 2013, when the fee initially becomes effective. The Company does not expect ASU 2011-06 to have an impact on its financial condition, results of operations or cash flows, as the amount of net premium written for qualifying health insurance by the Company is expected to be below the $25.0 threshold as defined by the Acts and, thus, not subject to the fee. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||||||||||
Fixed Maturities and Equity Securities | ||||||||||||||||||||||||||||||||
Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Embedded Derivatives(2) | Fair | OTTI(3) | |||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||
Capital | Capital | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 636.5 | $ | 36.5 | $ | 2.9 | $ | — | $ | 670.1 | $ | — | ||||||||||||||||||||
U.S. Government agencies and authorities | 237.1 | 5 | — | — | 242.1 | — | ||||||||||||||||||||||||||
State, municipalities and political subdivisions | 77.2 | 5.9 | 0.1 | — | 83 | — | ||||||||||||||||||||||||||
U.S. corporate securities | 10,326.00 | 581 | 238.8 | — | 10,668.20 | 1.9 | ||||||||||||||||||||||||||
Foreign securities:(1) | ||||||||||||||||||||||||||||||||
Government | 422.9 | 25.2 | 16.5 | — | 431.6 | — | ||||||||||||||||||||||||||
Other | 5,149.60 | 272.9 | 83.5 | — | 5,339.00 | — | ||||||||||||||||||||||||||
Total foreign securities | 5,572.50 | 298.1 | 100 | — | 5,770.60 | — | ||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency | 1,638.20 | 121.9 | 17.9 | 16.9 | 1,759.10 | 0.2 | ||||||||||||||||||||||||||
Non-Agency | 278.1 | 55.2 | 4.8 | 12.1 | 340.6 | 15.1 | ||||||||||||||||||||||||||
Total Residential mortgage-backed securities | 1,916.30 | 177.1 | 22.7 | 29 | 2,099.70 | 15.3 | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | 624.5 | 68.1 | 0.9 | — | 691.7 | 4.4 | ||||||||||||||||||||||||||
Other asset-backed securities | 465.8 | 18 | 3.4 | — | 480.4 | 3.2 | ||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 19,855.90 | 1,189.70 | 368.8 | 29 | 20,705.80 | 24.8 | ||||||||||||||||||||||||||
Less: Securities pledged | 137.9 | 5.9 | 3.7 | — | 140.1 | — | ||||||||||||||||||||||||||
Total fixed maturities | 19,718.00 | 1,183.80 | 365.1 | 29 | 20,565.70 | 24.8 | ||||||||||||||||||||||||||
Equity securities | 119.4 | 15.8 | 0.3 | — | 134.9 | — | ||||||||||||||||||||||||||
Total fixed maturities and equity securities investments | $ | 19,837.40 | $ | 1,199.60 | $ | 365.4 | $ | 29 | $ | 20,700.60 | $ | 24.8 | ||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
(3) Represents OTTI reported as a component of Other comprehensive income. | ||||||||||||||||||||||||||||||||
Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2012: | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Embedded Derivatives(2) | Fair | OTTI(3) | |||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||
Capital | Capital | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 1,011.50 | $ | 135.6 | $ | 0.5 | $ | — | $ | 1,146.60 | $ | — | ||||||||||||||||||||
U.S. Government agencies and authorities | 379.4 | 17.6 | — | — | 397 | — | ||||||||||||||||||||||||||
State, municipalities and political subdivisions | 77.2 | 15.9 | — | — | 93.1 | — | ||||||||||||||||||||||||||
U.S. corporate securities | 9,438.00 | 1,147.40 | 11.1 | — | 10,574.30 | 2 | ||||||||||||||||||||||||||
Foreign securities:(1) | ||||||||||||||||||||||||||||||||
Government | 439.7 | 57.4 | 1.1 | — | 496 | — | ||||||||||||||||||||||||||
Other | 4,570.00 | 501.3 | 15.3 | — | 5,056.00 | — | ||||||||||||||||||||||||||
Total foreign securities | 5,009.70 | 558.7 | 16.4 | — | 5,552.00 | — | ||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency | 1,679.50 | 181.5 | 3.4 | 33.7 | 1,891.30 | 0.6 | ||||||||||||||||||||||||||
Non-Agency | 390.9 | 70 | 14.7 | 20 | 466.2 | 17.4 | ||||||||||||||||||||||||||
Total Residential mortgage-backed securities | 2,070.40 | 251.5 | 18.1 | 53.7 | 2,357.50 | 18 | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | 748.7 | 90.6 | 0.2 | — | 839.1 | 4.4 | ||||||||||||||||||||||||||
Other asset-backed securities | 475.7 | 26.6 | 6.7 | — | 495.6 | 3.1 | ||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 19,210.60 | 2,243.90 | 53 | 53.7 | 21,455.20 | 27.5 | ||||||||||||||||||||||||||
Less: Securities pledged | 207.2 | 13 | 0.5 | — | 219.7 | — | ||||||||||||||||||||||||||
Total fixed maturities | 19,003.40 | 2,230.90 | 52.5 | 53.7 | 21,235.50 | 27.5 | ||||||||||||||||||||||||||
Equity securities | 129.3 | 13.6 | 0.1 | — | 142.8 | — | ||||||||||||||||||||||||||
Total fixed maturities and equity securities investments | $ | 19,132.70 | $ | 2,244.50 | $ | 52.6 | $ | 53.7 | $ | 21,378.30 | $ | 27.5 | ||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
(3) Represents OTTI reported as a component of Other comprehensive income. | ||||||||||||||||||||||||||||||||
The amortized cost and fair value of fixed maturities, including securities pledged, as of December 31, 2013, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid. MBS and Other ABS are shown separately because they are not due at a single maturity date. | ||||||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||||||||||
One year or less | $ | 612.5 | $ | 629.7 | ||||||||||||||||||||||||||||
After one year through five years | 3,846.60 | 4,103.60 | ||||||||||||||||||||||||||||||
After five years through ten years | 6,488.80 | 6,646.50 | ||||||||||||||||||||||||||||||
After ten years | 5,901.40 | 6,054.20 | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 2,540.80 | 2,791.40 | ||||||||||||||||||||||||||||||
Other asset-backed securities | 465.8 | 480.4 | ||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 19,855.90 | $ | 20,705.80 | ||||||||||||||||||||||||||||
The investment portfolio is monitored to maintain a diversified portfolio on an ongoing basis. Credit risk is mitigated by monitoring concentrations by issuer, sector and geographic stratification and limiting exposure to any one issuer. | ||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company did not have any investments in a single issuer, other than obligations of the U.S. Government and government agencies with a carrying value in excess of 10% of the Company's consolidated Shareholder's equity. | ||||||||||||||||||||||||||||||||
The following tables set forth the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated: | ||||||||||||||||||||||||||||||||
Amortized | Gross Unrealized Capital Gains | Gross Unrealized Capital Losses | Fair Value | |||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Communications | $ | 1,315.90 | $ | 81.5 | $ | 36.8 | $ | 1,360.60 | ||||||||||||||||||||||||
Financial | 2,114.70 | 166.9 | 20.2 | 2,261.40 | ||||||||||||||||||||||||||||
Industrial and other companies | 8,878.50 | 423.5 | 213.1 | 9,088.90 | ||||||||||||||||||||||||||||
Utilities | 2,726.50 | 159.5 | 42.3 | 2,843.70 | ||||||||||||||||||||||||||||
Transportation | 440 | 22.5 | 9.9 | 452.6 | ||||||||||||||||||||||||||||
Total | $ | 15,475.60 | $ | 853.9 | $ | 322.3 | $ | 16,007.20 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Communications | $ | 1,154.10 | $ | 161.4 | $ | 0.9 | $ | 1,314.60 | ||||||||||||||||||||||||
Financial | 1,859.30 | 240.1 | 10.9 | 2,088.50 | ||||||||||||||||||||||||||||
Industrial and other companies | 7,883.10 | 850.9 | 6.9 | 8,727.10 | ||||||||||||||||||||||||||||
Utilities | 2,715.40 | 349.8 | 7.3 | 3,057.90 | ||||||||||||||||||||||||||||
Transportation | 396.1 | 46.5 | 0.4 | 442.2 | ||||||||||||||||||||||||||||
Total | $ | 14,008.00 | $ | 1,648.70 | $ | 26.4 | $ | 15,630.30 | ||||||||||||||||||||||||
Fixed Maturities and Equity Securities | ||||||||||||||||||||||||||||||||
The Company's fixed maturities and equity securities are currently designated as available-for-sale, except those accounted for using the FVO. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI, and presented net of related changes in DAC, VOBA, and deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||
The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Consolidated Statements of Operations. Certain CMOs, primarily interest-only and principal-only strips, are accounted for as hybrid instruments and valued at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
The Company invests in various categories of CMOs, including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of December 31, 2013 and 2012, approximately 50.4% and 41.8%, respectively, of the Company's CMO holdings, such as interest-only or principal-only strips, were invested in those types of CMOs that are subject to more prepayment and extension risk than traditional CMOs. | ||||||||||||||||||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company did not have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements. | ||||||||||||||||||||||||||||||||
Securities Lending | ||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the fair value of loaned securities was $97.6 and $180.2, respectively, and is included in Securities pledged on the Consolidated Balance Sheets. As of December 31, 2013 and 2012, collateral retained by the lending agent and invested in liquid assets on the Company's behalf was $102.7 and $186.1, respectively, and recorded in Short-term investments under securities loan agreement, including collateral delivered on the Consolidated Balance Sheets. As of December 31, 2013 and 2012, liabilities to return collateral of $102.7 and $186.1, respectively, were included in Payables under securities loan agreement, including collateral held, on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||
Variable Interest Entities ("VIEs") | ||||||||||||||||||||||||||||||||
The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions, or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company's financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity's economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company provided no non-contractual financial support and its carrying value represents the Company's exposure to loss. The carrying value of the equity tranches of the Collateralized loan obligations ("CLOs") of $1.0 and $1.3 as of December 31, 2013 and 2012, respectively, is included in Limited partnerships/corporations on the Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
On June 4, 2012, the Company entered into an agreement to sell certain general account private equity limited partnership investment interest holdings with a carrying value of $331.9 as of March 31, 2012. These assets were sold to a group of private equity funds that are managed by Pomona Management LLC, an affiliate of the Company. The transaction resulted in a net pre-tax loss of $38.7 in the second quarter of 2012 reported in Net investment income on the Consolidated Statements of Operations. The transaction closed in two tranches with the first tranche closed on June 29, 2012 and the second tranche closed on October 29, 2012. Consideration received included $23.0 of promissory notes due in two equal installments at December 31, 2013 and 2014. In connection with these promissory notes, ING U.S., Inc. unconditionally guarantees payment of the notes in the event of any default of payments due. No additional loss was incurred on the second tranche since the fair value of the alternative investments was reduced to the agreed-upon sales price as of June 30, 2012. | ||||||||||||||||||||||||||||||||
Securitizations | ||||||||||||||||||||||||||||||||
The Company invests in various tranches of securitization entities, including RMBS, CMBS and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and will not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in "Note 1. Business, Basis of Presentation and Significant Accounting Policies" and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS which are accounted for under the FVO for which changes in fair value are reflected in Other net realized gains (losses) in the Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment. | ||||||||||||||||||||||||||||||||
Unrealized Capital Losses | ||||||||||||||||||||||||||||||||
Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Six Months or Less | More Than Six | More Than Twelve | Total | |||||||||||||||||||||||||||||
Below Amortized Cost | Months and Twelve | Months Below | ||||||||||||||||||||||||||||||
Months or Less | Amortized Cost | |||||||||||||||||||||||||||||||
Below Amortized Cost | ||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||
Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | |||||||||||||||||||||||||
U.S. Treasuries | $ | 124.4 | $ | 2.1 | $ | 34.2 | $ | 0.8 | $ | — | $ | — | $ | 158.6 | $ | 2.9 | ||||||||||||||||
U.S. corporate, state and municipalities | 1,002.80 | 22.9 | 2,413.20 | 183.8 | 236.9 | 32.2 | 3,652.90 | 238.9 | ||||||||||||||||||||||||
Foreign | 448.8 | 5.7 | 1,063.90 | 86.4 | 76.2 | 7.9 | 1,588.90 | 100 | ||||||||||||||||||||||||
Residential mortgage-backed | 262.3 | 2.9 | 212.9 | 12 | 105.8 | 7.8 | 581 | 22.7 | ||||||||||||||||||||||||
Commercial mortgage-backed | 77.9 | 0.9 | — | — | — | — | 77.9 | 0.9 | ||||||||||||||||||||||||
Other asset-backed | 38.9 | 0.2 | 30.3 | 0.2 | 26 | 3 | 95.2 | 3.4 | ||||||||||||||||||||||||
Total | $ | 1,955.10 | $ | 34.7 | $ | 3,754.50 | $ | 283.2 | $ | 444.9 | $ | 50.9 | $ | 6,154.50 | $ | 368.8 | ||||||||||||||||
Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2012: | ||||||||||||||||||||||||||||||||
Six Months or Less | More Than Six | More Than Twelve | Total | |||||||||||||||||||||||||||||
Below Amortized Cost | Months and Twelve | Months Below | ||||||||||||||||||||||||||||||
Months or Less | Amortized Cost | |||||||||||||||||||||||||||||||
Below Amortized Cost | ||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||
Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | |||||||||||||||||||||||||
U.S. Treasuries | $ | 300 | $ | 0.5 | $ | — | $ | — | $ | — | $ | — | $ | 300 | $ | 0.5 | ||||||||||||||||
U.S. corporate, state and municipalities | 479.8 | 6.8 | 22.5 | 0.9 | 49.4 | 3.4 | 551.7 | 11.1 | ||||||||||||||||||||||||
Foreign | 166.8 | 4.7 | 7.8 | 0.5 | 87.7 | 11.2 | 262.3 | 16.4 | ||||||||||||||||||||||||
Residential mortgage-backed | 68.7 | 1.6 | 7.2 | 0.3 | 132.4 | 16.2 | 208.3 | 18.1 | ||||||||||||||||||||||||
Commercial mortgage-backed | 7.5 | 0.1 | 1.6 | — | 2.5 | 0.1 | 11.6 | 0.2 | ||||||||||||||||||||||||
Other asset-backed | 15.6 | — | * | — | — | 34.2 | 6.7 | 49.8 | 6.7 | |||||||||||||||||||||||
Total | $ | 1,038.40 | $ | 13.7 | $ | 39.1 | $ | 1.7 | $ | 306.2 | $ | 37.6 | $ | 1,383.70 | $ | 53 | ||||||||||||||||
* Less than $0.1 | ||||||||||||||||||||||||||||||||
Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities was 89.7% and 89.1% of the average book value as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive months as indicated in the tables below, were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Capital Losses | Number of Securities | ||||||||||||||||||||||||||||||
< 20% | > 20% | < 20% | > 20% | < 20% | > 20% | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Six months or less below amortized cost | $ | 2,054.40 | $ | 24.1 | $ | 45.3 | $ | 5.3 | 322 | 7 | ||||||||||||||||||||||
More than six months and twelve months or less below amortized cost | 3,991.40 | 23.5 | 272.6 | 5.8 | 502 | 3 | ||||||||||||||||||||||||||
More than twelve months below amortized cost | 420.4 | 9.5 | 37.3 | 2.5 | 137 | 8 | ||||||||||||||||||||||||||
Total | $ | 6,466.20 | $ | 57.1 | $ | 355.2 | $ | 13.6 | 961 | 18 | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Six months or less below amortized cost | $ | 1,110.80 | $ | 15.2 | $ | 19.3 | $ | 3.9 | 141 | 10 | ||||||||||||||||||||||
More than six months and twelve months or less below amortized cost | 49.5 | 1.5 | 2.6 | 0.4 | 31 | 2 | ||||||||||||||||||||||||||
More than twelve months below amortized cost | 198.1 | 61.6 | 6.2 | 20.6 | 99 | 28 | ||||||||||||||||||||||||||
Total | $ | 1,358.40 | $ | 78.3 | $ | 28.1 | $ | 24.9 | 271 | 40 | ||||||||||||||||||||||
Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Capital Losses | Number of Securities | ||||||||||||||||||||||||||||||
< 20% | > 20% | < 20% | > 20% | < 20% | > 20% | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 161.5 | $ | — | $ | 2.9 | $ | — | 4 | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 3,869.00 | 22.8 | 233.2 | 5.7 | 519 | 2 | ||||||||||||||||||||||||||
Foreign | 1,665.80 | 23.1 | 95 | 5 | 239 | 5 | ||||||||||||||||||||||||||
Residential mortgage-backed | 596.9 | 6.8 | 21 | 1.7 | 162 | 7 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 78.8 | — | 0.9 | — | 12 | — | ||||||||||||||||||||||||||
Other asset-backed | 94.2 | 4.4 | 2.2 | 1.2 | 25 | 4 | ||||||||||||||||||||||||||
Total | $ | 6,466.20 | $ | 57.1 | $ | 355.2 | $ | 13.6 | 961 | 18 | ||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 300.5 | $ | — | $ | 0.5 | $ | — | 2 | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 558.1 | 4.7 | 9.1 | 2 | 82 | 2 | ||||||||||||||||||||||||||
Foreign | 242.7 | 36 | 5.7 | 10.7 | 38 | 8 | ||||||||||||||||||||||||||
Residential mortgage-backed | 201.2 | 25.2 | 10.2 | 7.9 | 124 | 24 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 11.8 | — | 0.2 | — | 8 | — | ||||||||||||||||||||||||||
Other asset-backed | 44.1 | 12.4 | 2.4 | 4.3 | 17 | 6 | ||||||||||||||||||||||||||
Total | $ | 1,358.40 | $ | 78.3 | $ | 28.1 | $ | 24.9 | 271 | 40 | ||||||||||||||||||||||
All investments with fair values less than amortized cost are included in the Company's other-than-temporary impairments analysis and impairments were recognized as disclosed in the "Evaluating Securities for Other-Than-Temporary Impairments" section below. The Company evaluates non-agency RMBS and ABS for other-than-temporary impairments each quarter based on actual and projected cash flows after considering the quality and updated loan-to-value ratios reflecting current home prices of underlying collateral, forecasted loss severity, the payment priority within the tranche structure of the security and amount of any credit enhancements. The Company's assessment of current levels of cash flows compared to estimated cash flows at the time the securities were acquired indicates the amount and the pace of projected cash flows from the underlying collateral has generally been lower and slower, respectively. However, since cash flows are typically projected at a trust level, the impairment review incorporates the security's position within the trust structure as well as credit enhancement remaining in the trust to determine whether an impairment is warranted. Therefore, while lower and slower cash flows will impact the trust, the effect on a particular security within the trust will be dependent upon the trust structure. Where the assessment continues to project full recovery of principal and interest on schedule, the Company has not recorded an impairment. Unrealized losses on below investment grade securities are principally related to RMBS (primarily Alt-A RMBS) and ABS (primarily subprime RMBS) largely due to economic and market uncertainties including concerns over unemployment levels, lower interest rate environment on floating rate securities requiring higher risk premiums since purchase and valuations on residential real estate supporting non-agency RMBS. Based on this analysis, the Company determined that the remaining investments in an unrealized loss position were not other-than-temporarily impaired and therefore no further other-than-temporary impairment was necessary. | ||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | ||||||||||||||||||||||||||||||||
The Company invests in high quality, well performing portfolios of commercial mortgage loans and private placements. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a troubled debt restructuring has occurred. A modification is a troubled debt restructuring when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. A valuation allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. As of December 31, 2013, the Company had no new private placement troubled debt restructurings and had 20 new commercial mortgage loan troubled debt restructurings with a pre-modification and post-modification carrying value of $39.4. The 20 commercial mortgage loans comprise a portfolio of cross-defaulted, cross-collateralized individual loans, which are owned by the same sponsor. Between the date of the troubled debt restructurings and December 31, 2013, these loans have repaid $1.9 in principal. As of December 31, 2012, the Company did not have any new private placement or commercial mortgage loan troubled debt restructurings. | ||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company did not have any commercial mortgage loans or private placements modified in a troubled debt restructuring with a subsequent payment default. | ||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate | ||||||||||||||||||||||||||||||||
The Company's mortgage loans on real estate are all commercial mortgage loans held for investment, which are reported at amortized cost, less impairment write-downs and allowance for losses. The Company diversifies its commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates all mortgage loans based on relevant current information including a review of loan-specific credit quality, property characteristics and market trends. Loan performance is monitored on a loan specific basis through the review of submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review ensures properties are performing at a consistent and acceptable level to secure the debt. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk. | ||||||||||||||||||||||||||||||||
The following table summarizes the Company's investment in mortgage loans as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
Collective valuation allowance | (1.2 | ) | (1.3 | ) | ||||||||||||||||||||||||||||
Total net commercial mortgage loans | $ | 3,396.10 | $ | 2,872.70 | ||||||||||||||||||||||||||||
There were no impairments taken on the mortgage loan portfolio for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||||||||
The following table summarizes the activity in the allowance for losses for all commercial mortgage loans for the periods indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Collective valuation allowance for losses, balance at January 1 | $ | 1.3 | $ | 1.3 | ||||||||||||||||||||||||||||
Addition to (reduction of) allowance for losses | (0.1 | ) | — | |||||||||||||||||||||||||||||
Collective valuation allowance for losses, end of period | $ | 1.2 | $ | 1.3 | ||||||||||||||||||||||||||||
The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Impaired loans with allowances for losses | $ | — | $ | — | ||||||||||||||||||||||||||||
Impaired loans without allowances for losses | 42.9 | 5.6 | ||||||||||||||||||||||||||||||
Subtotal | 42.9 | 5.6 | ||||||||||||||||||||||||||||||
Less: Allowances for losses on impaired loans | — | — | ||||||||||||||||||||||||||||||
Impaired loans, net | $ | 42.9 | $ | 5.6 | ||||||||||||||||||||||||||||
Unpaid principal balance of impaired loans | $ | 44.4 | $ | 7.1 | ||||||||||||||||||||||||||||
The following table presents information on restructured loans as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Troubled debt restructured loans | $ | 37.5 | $ | — | ||||||||||||||||||||||||||||
The Company’s policy is to recognize interest income until a loan becomes 90 days delinquent or foreclosure proceedings are commenced, at which point interest accrual is discontinued. Interest accrual is not resumed until the loan is brought current. | ||||||||||||||||||||||||||||||||
There were no mortgage loans in the Company's portfolio in process of foreclosure as of December 31, 2013 and 2012. There were no loans 90 days or more past due or loans in arrears with respect to principal and interest as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||
The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Impaired loans, average investment during the period (amortized cost)(1) | $ | 24.2 | $ | 5.7 | $ | 7.7 | ||||||||||||||||||||||||||
Interest income recognized on impaired loans, on an accrual basis(1) | 1.4 | 0.4 | 0.6 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on a cash basis(1) | 1.4 | 0.4 | 0.6 | |||||||||||||||||||||||||||||
Interest income recognized on troubled debt restructured loans, on an accrual basis | 1 | — | — | |||||||||||||||||||||||||||||
(1) Includes amounts for Troubled debt restructured loans | ||||||||||||||||||||||||||||||||
Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property's net income to its debt service payments. A DSC ratio of less than 1.0 indicates that property's operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above. | ||||||||||||||||||||||||||||||||
The following table presents the LTV ratios as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Loan-to-Value Ratio: | ||||||||||||||||||||||||||||||||
0% - 50% | $ | 495.7 | $ | 501.3 | ||||||||||||||||||||||||||||
50% - 60% | 894.5 | 768.9 | ||||||||||||||||||||||||||||||
60% - 70% | 1,879.50 | 1,491.60 | ||||||||||||||||||||||||||||||
70% - 80% | 114.9 | 96.4 | ||||||||||||||||||||||||||||||
80% and above | 12.7 | 15.8 | ||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
The following table presents the DSC ratios as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | ||||||||||||||||||||||||||||||||
Greater than 1.5x | $ | 2,388.50 | $ | 2,114.40 | ||||||||||||||||||||||||||||
1.25x - 1.5x | 542.4 | 390.5 | ||||||||||||||||||||||||||||||
1.0x - 1.25x | 275.8 | 293.1 | ||||||||||||||||||||||||||||||
Less than 1.0x | 190.5 | 76 | ||||||||||||||||||||||||||||||
Commercial mortgage loans secured by land or construction loans | 0.1 | — | ||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | |||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | |||||||||||||||||||||||||||||
Commercial Mortgage Loans by U.S. Region: | ||||||||||||||||||||||||||||||||
Pacific | $ | 752.8 | 22.3 | % | $ | 564.1 | 19.6 | % | ||||||||||||||||||||||||
South Atlantic | 707.8 | 20.8 | % | 561 | 19.5 | % | ||||||||||||||||||||||||||
West South Central | 467.1 | 13.7 | % | 460.4 | 16 | % | ||||||||||||||||||||||||||
Middle Atlantic | 411.4 | 12.1 | % | 332.7 | 11.6 | % | ||||||||||||||||||||||||||
East North Central | 383.1 | 11.3 | % | 337.8 | 11.8 | % | ||||||||||||||||||||||||||
Mountain | 263.9 | 7.8 | % | 214.5 | 7.5 | % | ||||||||||||||||||||||||||
West North Central | 224.9 | 6.6 | % | 205.2 | 7.1 | % | ||||||||||||||||||||||||||
New England | 116.7 | 3.4 | % | 119.1 | 4.1 | % | ||||||||||||||||||||||||||
East South Central | 69.6 | 2 | % | 79.2 | 2.8 | % | ||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | 100 | % | $ | 2,874.00 | 100 | % | ||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | |||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | |||||||||||||||||||||||||||||
Commercial Mortgage Loans by Property Type: | ||||||||||||||||||||||||||||||||
Retail | $ | 1,082.10 | 31.9 | % | $ | 824 | 28.7 | % | ||||||||||||||||||||||||
Industrial | 972.6 | 28.6 | % | 1,035.20 | 36 | % | ||||||||||||||||||||||||||
Office | 462.1 | 13.6 | % | 427 | 14.8 | % | ||||||||||||||||||||||||||
Apartments | 445.2 | 13.1 | % | 298.7 | 10.4 | % | ||||||||||||||||||||||||||
Hotel/Motel | 182.8 | 5.4 | % | 92.1 | 3.2 | % | ||||||||||||||||||||||||||
Mixed Use | 70.9 | 2.1 | % | 34.2 | 1.2 | % | ||||||||||||||||||||||||||
Other | 181.6 | 5.3 | % | 162.8 | 5.7 | % | ||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | 100 | % | $ | 2,874.00 | 100 | % | ||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
The following table sets forth the breakdown of mortgages by year of origination as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Year of Origination: | ||||||||||||||||||||||||||||||||
2013 | $ | 785.2 | $ | — | ||||||||||||||||||||||||||||
2012 | 908.1 | 939 | ||||||||||||||||||||||||||||||
2011 | 792.8 | 836.9 | ||||||||||||||||||||||||||||||
2010 | 121.1 | 124 | ||||||||||||||||||||||||||||||
2009 | 68.4 | 73 | ||||||||||||||||||||||||||||||
2008 | 89 | 119 | ||||||||||||||||||||||||||||||
2007 and prior | 632.7 | 782.1 | ||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
Evaluating Securities for Other-Than-Temporary Impairments | ||||||||||||||||||||||||||||||||
The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities and equity securities in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired. | ||||||||||||||||||||||||||||||||
The following table identifies the Company's credit-related and intent-related impairments included in the Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | Impairment | No. of Securities | |||||||||||||||||||||||||||
U.S. corporate | $ | — | — | $ | 2.9 | 3 | $ | 20.4 | 17 | |||||||||||||||||||||||
Foreign(1) | 1.8 | 1 | 0.8 | 3 | 27.8 | 50 | ||||||||||||||||||||||||||
Residential mortgage-backed | 3.4 | 35 | 6 | 33 | 8.2 | 38 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 0.3 | 3 | — | — | 28.2 | 8 | ||||||||||||||||||||||||||
Other asset-backed | 0.3 | 2 | 1.2 | 4 | 22.7 | 53 | ||||||||||||||||||||||||||
Equity securities | 0.1 | 1 | — | — | — | — | ||||||||||||||||||||||||||
Total | $ | 5.9 | 42 | $ | 10.9 | 43 | $ | 107.3 | 166 | |||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
The above tables include $4.8, $9.1 and $17.6 related to credit impairments for the years ended December 31, 2013, 2012 and 2011, respectively, in Other-than-temporary impairments, which are recognized in the Consolidated Statements of Operations. The remaining $1.1, $1.8 and $89.7 for the years ended December 31, 2013, 2012 and 2011, respectively, are related to intent impairments. | ||||||||||||||||||||||||||||||||
The following table summarizes these intent impairments, which are also recognized in earnings, by type for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | Impairment | No. of Securities | |||||||||||||||||||||||||||
U.S. corporate | $ | — | — | $ | 0.2 | 1 | $ | 20.4 | 17 | |||||||||||||||||||||||
Foreign(1) | — | — | 0.8 | 3 | 23.7 | 46 | ||||||||||||||||||||||||||
Residential mortgage-backed | 0.8 | 6 | 0.7 | 3 | 1.6 | 7 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 0.3 | 3 | — | — | 22.9 | 8 | ||||||||||||||||||||||||||
Other asset-backed | — | — | 0.1 | 1 | 21.1 | 50 | ||||||||||||||||||||||||||
Total | $ | 1.1 | 9 | $ | 1.8 | 8 | $ | 89.7 | 128 | |||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities or cost for equity securities. In certain situations, new factors, including changes in the business environment, can change the Company's previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses. | ||||||||||||||||||||||||||||||||
The following table identifies the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Balance at January 1 | $ | 20 | $ | 19.4 | $ | 50.7 | ||||||||||||||||||||||||||
Additional credit impairments: | ||||||||||||||||||||||||||||||||
On securities not previously impaired | 1.1 | 1.5 | 0.9 | |||||||||||||||||||||||||||||
On securities previously impaired | 1.8 | 3.7 | 6.7 | |||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||
Securities intent impaired | — | — | (8.7 | ) | ||||||||||||||||||||||||||||
Securities sold, matured, prepaid or paid down | (3.3 | ) | (4.6 | ) | (30.2 | ) | ||||||||||||||||||||||||||
Balance at December 31 | $ | 19.6 | $ | 20 | $ | 19.4 | ||||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||||||||
The following table summarizes Net investment income for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Fixed maturities | $ | 1,199.40 | $ | 1,222.50 | $ | 1,224.20 | ||||||||||||||||||||||||||
Equity securities, available-for-sale | 2.8 | 7.5 | 13.6 | |||||||||||||||||||||||||||||
Mortgage loans on real estate | 157.1 | 143.5 | 118.1 | |||||||||||||||||||||||||||||
Policy loans | 13.1 | 13.2 | 13.7 | |||||||||||||||||||||||||||||
Short-term investments and cash equivalents | 0.9 | 1.4 | 0.8 | |||||||||||||||||||||||||||||
Other | 42.6 | 6.8 | 95.5 | |||||||||||||||||||||||||||||
Gross investment income | 1,415.90 | 1,394.90 | 1,465.90 | |||||||||||||||||||||||||||||
Less: investment expenses | 48.9 | 46.1 | 45 | |||||||||||||||||||||||||||||
Net investment income | $ | 1,367.00 | $ | 1,348.80 | $ | 1,420.90 | ||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company did not have any investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults. | ||||||||||||||||||||||||||||||||
Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
Net Realized Capital Gains (Losses) | ||||||||||||||||||||||||||||||||
Net realized capital gains (losses) are comprised of the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related other-than-temporary impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within product guarantees and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology. | ||||||||||||||||||||||||||||||||
Net realized capital gains (losses) were as follows for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale, including securities pledged | $ | 0.3 | $ | 67.5 | $ | 112.6 | ||||||||||||||||||||||||||
Fixed maturities, at fair value option | (151.5 | ) | (124.2 | ) | (60.6 | ) | ||||||||||||||||||||||||||
Equity securities, available-for-sale | 0.1 | (0.2 | ) | 7.4 | ||||||||||||||||||||||||||||
Derivatives | (72.1 | ) | 1.3 | (64.3 | ) | |||||||||||||||||||||||||||
Embedded derivatives - fixed maturities | (24.7 | ) | (5.5 | ) | 4.9 | |||||||||||||||||||||||||||
Embedded derivatives - product guarantees | 105.5 | 120.4 | (216.1 | ) | ||||||||||||||||||||||||||||
Other investments | 0.2 | — | 0.3 | |||||||||||||||||||||||||||||
Net realized capital gains (losses) | $ | (142.2 | ) | $ | 59.3 | $ | (215.8 | ) | ||||||||||||||||||||||||
After-tax net realized capital gains (losses) | $ | (160.0 | ) | $ | 38.5 | $ | (53.3 | ) | ||||||||||||||||||||||||
Proceeds from the sale of fixed maturities and equity securities, available-for-sale and the related gross realized gains and losses, before tax were as follows for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Proceeds on sales | $ | 1,830.00 | $ | 2,887.10 | $ | 5,596.30 | ||||||||||||||||||||||||||
Gross gains | 23.8 | 88.7 | 249 | |||||||||||||||||||||||||||||
Gross losses | 22.1 | 12.7 | 33.6 | |||||||||||||||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||
3. Derivative Financial Instruments | ||||||||||||||||||||||||
The Company enters into the following types of derivatives: | ||||||||||||||||||||||||
Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships. | ||||||||||||||||||||||||
Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. | ||||||||||||||||||||||||
Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. | ||||||||||||||||||||||||
Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to or received from the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships. | ||||||||||||||||||||||||
Forwards: The Company uses forward contracts to hedge certain invested assets against movement in interest rates, particularly mortgage rates. The Company uses To Be Announced mortgage-backed securities as an economic hedge against rate movements. The Company utilizes forward contracts in non-qualifying hedging relationships. | ||||||||||||||||||||||||
Futures: The Company uses futures contracts as a hedge against an increase in certain equity indices. Such increases may result in increased payments to the holders of the FIA contracts. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margin with the exchange on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. | ||||||||||||||||||||||||
Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships. | ||||||||||||||||||||||||
Managed custody guarantees ("MCG"): The Company issues certain credited rate guarantees on externally managed variable bond funds that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads. | ||||||||||||||||||||||||
Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain annuity products that contain embedded derivatives whose market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into a reinsurance agreement, accounted for under the deposit method, which contains an embedded derivative whose fair value is based on the change in the fair value of the underlying assets held in trust. The embedded derivatives for certain fixed maturity instruments, certain annuity products and coinsurance with funds withheld arrangements are reported with the host contract in investments, in Future policy benefits and contract owner account balances and Other liabilities, respectively, on the Consolidated Balance Sheets. Changes in the fair value of embedded derivatives within fixed maturity investments and within annuity products are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Changes in fair value of embedded derivatives with reinsurance agreements are reported in Interest credited and other policyholder benefit to contract owners/policyholders in the Consolidated Statements of Operations. | ||||||||||||||||||||||||
The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. | ||||||||||||||||||||||||
The notional amounts and fair values of derivatives were as follows as of the dates indicated: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Notional | Asset | Liability | Notional | Asset | Liability | |||||||||||||||||||
Amount | Fair Value | Fair Value | Amount | Fair Value | Fair Value | |||||||||||||||||||
Derivatives: Qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | 763.3 | $ | 81 | $ | 0.2 | $ | 1,000.00 | $ | 215.4 | $ | — | ||||||||||||
Foreign exchange contracts | 51.2 | 2.2 | 0.6 | — | — | — | ||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Interest rate contracts(2) | 21,442.70 | 367.6 | 206.2 | 18,131.10 | 292.9 | 328.5 | ||||||||||||||||||
Foreign exchange contracts | 145.9 | 5.5 | 9.6 | 161.6 | 0.4 | 18.3 | ||||||||||||||||||
Equity contracts | 9.1 | — | * | — | 14.5 | 0.4 | — | |||||||||||||||||
Credit contracts | 384 | 8.1 | — | 347.5 | 3.6 | — | ||||||||||||||||||
Managed custody guarantees | N/A | — | — | N/A | — | — | ||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments | N/A | 29 | — | N/A | 53.7 | — | ||||||||||||||||||
Within annuity products | N/A | — | 23.1 | N/A | — | 122.4 | ||||||||||||||||||
Within reinsurance agreements | N/A | — | (54.0 | ) | N/A | — | — | |||||||||||||||||
Total | $ | 493.4 | $ | 185.7 | $ | 566.4 | $ | 469.2 | ||||||||||||||||
* Less than $0.1 | ||||||||||||||||||||||||
-1 | Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. | |||||||||||||||||||||||
(2) | As of December 31, 2013, includes a notional amount, asset fair value and liability fair value for interest rate caps of $11.8 billion, $162.5 and $29.7, respectively. As of December 31, 2012, includes a notional amount, asset fair value and liability fair value for interest rate caps of $4.5 billion, $17.7 and $0.6, respectively. | |||||||||||||||||||||||
N/A - Not Applicable | ||||||||||||||||||||||||
Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify as part of a hedging relationship as of December 31, 2013 and 2012. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being “highly effective” as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments which do not qualify as effective accounting hedges under ASC Topic 815. | ||||||||||||||||||||||||
The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is through the fourth quarter of 2016. | ||||||||||||||||||||||||
Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of OTC and cleared derivatives excluding exchange traded contracts and forward contracts (To Be Announced mortgage-backed securities) are presented in the tables below as of the dates indicated: | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 384 | $ | 8.1 | $ | — | ||||||||||||||||||
Equity contracts | — | — | — | |||||||||||||||||||||
Foreign exchange contracts | 197.1 | 7.7 | 10.2 | |||||||||||||||||||||
Interest rate contracts | 22,206.00 | 448.6 | 206.4 | |||||||||||||||||||||
$ | 464.4 | $ | 216.6 | |||||||||||||||||||||
Counterparty netting(1) | $ | (201.3 | ) | $ | (201.3 | ) | ||||||||||||||||||
Cash collateral netting(1) | (134.0 | ) | (5.4 | ) | ||||||||||||||||||||
Securities collateral netting(1) | (15.9 | ) | (4.8 | ) | ||||||||||||||||||||
Net receivables/payables | $ | 113.2 | $ | 5.1 | ||||||||||||||||||||
(1)Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting rules. | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 347.5 | $ | 3.6 | $ | — | ||||||||||||||||||
Equity contracts | — | — | — | |||||||||||||||||||||
Foreign exchange contracts | 161.6 | 0.4 | 18.3 | |||||||||||||||||||||
Interest rate contracts | 19,131.10 | 508.3 | 328.5 | |||||||||||||||||||||
$ | 512.3 | $ | 346.8 | |||||||||||||||||||||
Counterparty netting(1) | $ | (291.4 | ) | $ | (291.4 | ) | ||||||||||||||||||
Cash collateral netting(1) | (167.1 | ) | — | |||||||||||||||||||||
Securities collateral netting(1) | (3.1 | ) | (35.8 | ) | ||||||||||||||||||||
Net receivables/payables | $ | 50.7 | $ | 19.6 | ||||||||||||||||||||
(1)Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting rules. | ||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||
Under the terms of the Company's Over-The-Counter ("OTC") Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties, collateral to assure that all terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Consolidated Balance Sheets. As of December 31, 2013, the Company held $127.4 and $1.2 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2012, the Company held $167.0 of net cash collateral related to OTC derivative contracts. In addition, as of December 31, 2013 and 2012, the Company delivered securities as collateral of $42.5 and $39.5, respectively. | ||||||||||||||||||||||||
Net realized gains (losses) on derivatives were as follows for the periods indicated: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Derivatives: Qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | 0.2 | $ | — | $ | — | ||||||||||||||||||
Foreign exchange contracts | 0.1 | — | — | |||||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(2) | ||||||||||||||||||||||||
Interest rate contracts | (92.8 | ) | (18.9 | ) | (58.3 | ) | ||||||||||||||||||
Foreign exchange contracts | 10 | 6.9 | (0.7 | ) | ||||||||||||||||||||
Equity contracts | 3.4 | 2 | (0.5 | ) | ||||||||||||||||||||
Credit contracts | 7 | 11.3 | (4.8 | ) | ||||||||||||||||||||
Managed custody guarantees | 0.2 | 1.1 | 1.1 | |||||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments(2) | (24.7 | ) | (5.5 | ) | 4.9 | |||||||||||||||||||
Within annuity products(2) | 105.3 | 119.3 | (217.2 | ) | ||||||||||||||||||||
Within reinsurance agreements(3) | 54 | — | — | |||||||||||||||||||||
Total | $ | 62.7 | $ | 116.2 | $ | (275.5 | ) | |||||||||||||||||
(1) Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Changes in fair value upon disposal for effective cash flow hedges are amortized through Net investment income and the ineffective portion is recorded in the Other net realized capital gains (losses) in the Consolidated Statements of Operations. For the years ended December 31, 2013, 2012 and 2011, ineffective amounts were immaterial. | ||||||||||||||||||||||||
(2) Changes in value are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||||||||||||||||||||||||
(3) Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Consolidated Statements of Operations. | ||||||||||||||||||||||||
Credit Default Swaps | ||||||||||||||||||||||||
The Company has entered into various credit default swaps. When credit default swaps are sold, the Company assumes credit exposure to certain assets that it does not own. Credit default swaps may also be purchased to reduce credit exposure in the Company’s portfolio. Credit default swaps involve a transfer of credit risk from one party to another in exchange for periodic payments. The Company has ISDA agreements with each counterparty with which it conducts business and tracks the collateral positions for each counterparty. To the extent cash collateral is received, it is included in Payables under securities loan agreements, including collateral held, on the Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Consolidated Balance Sheets. As of December 31, 2013, the fair value of credit default swaps of $8.1 were included in Derivatives assets and there were no Derivatives liabilities on the Consolidated Balance Sheets. As of December 31, 2012, the fair value of credit default swaps of $3.6 were included in Derivatives assets and there were no credit default swaps included in Derivatives liabilities, on the Consolidated Balance Sheets. As of December 31, 2013 and 2012, the maximum potential future exposure to the Company was $384.0 and $329.0 in credit default swaps. These instruments are typically written for a maturity period of five years and contain no recourse provisions. If the Company's current debt and claims paying ratings were downgraded in the future, the terms in the Company's derivative agreements may be triggered, which could negatively impact overall liquidity. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||||||||||||||||||||||
The Company categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique, pursuant to the Fair Value Measurements and disclosures of the ASC Topic 820. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the Consolidated Balance Sheets are categorized as follows: | |||||||||||||||||||||||||||||||||||||||||||||
• | Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market. The Company defines an active market as a market in which transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||||||||||||||||||||||||||||||
• | Level 2 - Quoted prices in markets that are not active or valuation techniques that require inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: | ||||||||||||||||||||||||||||||||||||||||||||
a) Quoted prices for similar assets or liabilities in active markets; | |||||||||||||||||||||||||||||||||||||||||||||
b) Quoted prices for identical or similar assets or liabilities in non-active markets; | |||||||||||||||||||||||||||||||||||||||||||||
c) Inputs other than quoted market prices that are observable; and | |||||||||||||||||||||||||||||||||||||||||||||
d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means. | |||||||||||||||||||||||||||||||||||||||||||||
• | Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. | ||||||||||||||||||||||||||||||||||||||||||||
When available, the estimated fair value of financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, including discounted cash flow methodologies, matrix pricing, or other similar techniques. | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 618.8 | $ | 51.3 | $ | — | $ | 670.1 | |||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | — | 237 | 5.1 | 242.1 | |||||||||||||||||||||||||||||||||||||||||
U.S. corporate, state and municipalities | — | 10,605.90 | 145.3 | 10,751.20 | |||||||||||||||||||||||||||||||||||||||||
Foreign(1) | — | 5,727.80 | 42.8 | 5,770.60 | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,076.00 | 23.7 | 2,099.70 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 691.7 | — | 691.7 | |||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | — | 462.7 | 17.7 | 480.4 | |||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 618.8 | 19,852.40 | 234.6 | 20,705.80 | |||||||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 99 | — | 35.9 | 134.9 | |||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 448.6 | — | 448.6 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 7.7 | — | 7.7 | |||||||||||||||||||||||||||||||||||||||||
Equity contracts | — | * | — | — | — | * | |||||||||||||||||||||||||||||||||||||||
Credit contracts | — | 8.1 | — | 8.1 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 529.7 | — | — | 529.7 | |||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 54,715.30 | 5,376.50 | 13.1 | 60,104.90 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 55,962.80 | $ | 25,693.30 | $ | 283.6 | $ | 81,939.70 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
FIA | $ | — | $ | — | $ | 23.1 | $ | 23.1 | |||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 206.4 | — | 206.4 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 10.2 | — | 10.2 | |||||||||||||||||||||||||||||||||||||||||
Embedded derivative on reinsurance | — | (54.0 | ) | — | (54.0 | ) | |||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 162.6 | $ | 23.1 | $ | 185.7 | |||||||||||||||||||||||||||||||||||||
* Less than $0.1. | |||||||||||||||||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as | |||||||||||||||||||||||||||||||||||||||||||||
of December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 1,093.40 | $ | 53.2 | $ | — | $ | 1,146.60 | |||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | — | 397 | — | 397 | |||||||||||||||||||||||||||||||||||||||||
U.S. corporate, state and municipalities | — | 10,512.80 | 154.6 | 10,667.40 | |||||||||||||||||||||||||||||||||||||||||
Foreign(1) | — | 5,527.40 | 24.6 | 5,552.00 | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,348.40 | 9.1 | 2,357.50 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 839.1 | — | 839.1 | |||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | — | 462.4 | 33.2 | 495.6 | |||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 1,093.40 | 20,140.30 | 221.5 | 21,455.20 | |||||||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 125.8 | — | 17 | 142.8 | |||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 508.3 | — | 508.3 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 0.4 | — | 0.4 | |||||||||||||||||||||||||||||||||||||||||
Equity contracts | 0.4 | — | — | 0.4 | |||||||||||||||||||||||||||||||||||||||||
Credit contracts | — | 3.6 | — | 3.6 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 1,229.30 | — | — | 1,229.30 | |||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 47,916.50 | 5,722.50 | 16.3 | 53,655.30 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 50,365.40 | $ | 26,375.10 | $ | 254.8 | $ | 76,995.30 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
FIA | $ | — | $ | — | $ | 20.4 | $ | 20.4 | |||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | 102 | 102 | |||||||||||||||||||||||||||||||||||||||||
Other derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 0.7 | 327.8 | — | 328.5 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 18.3 | — | 18.3 | |||||||||||||||||||||||||||||||||||||||||
Embedded derivative on reinsurance | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 0.7 | $ | 346.1 | $ | 122.4 | $ | 469.2 | |||||||||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||||||||||||||
Valuation of Financial Assets and Liabilities at Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
Certain assets and liabilities are measured at estimated fair value on the Company's Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation techniques when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation techniques and allows for the use of unobservable inputs to the extent that observable inputs are not available. | |||||||||||||||||||||||||||||||||||||||||||||
The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of "exit price" and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades, or monitoring of trading volumes. | |||||||||||||||||||||||||||||||||||||||||||||
The following valuation methods and assumptions were used by the Company in estimating the reported values for the investments and derivatives described below: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities: The fair values for the actively traded marketable bonds are determined based upon the quoted market prices and are classified as Level 1 assets. Assets in this category would primarily include certain U.S. Treasury securities. The fair values for marketable bonds without an active market are obtained through several commercial pricing services which provide the estimated fair values and are classified as Level 2 assets. These services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, broker-dealer quotes, credit quality, issuer spreads, bids, offers and other reference data. This category includes U.S. and foreign corporate bonds, ABS, U.S. agency and government guaranteed securities, CMBS and RMBS, including certain CMO assets. | |||||||||||||||||||||||||||||||||||||||||||||
Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||||||
Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades, or monitoring of trading volumes. As of December 31, 2013, $190.5 and $15.9 billion of a total fair value of $20.7 billion in fixed maturities, including securities pledged, were valued using unadjusted broker quotes and unadjusted prices obtained from pricing services, respectively and verified through the review process. The remaining balance in fixed maturities consisted primarily of privately placed bonds valued using a matrix-based pricing. As of December 31, 2012, $175.5 and $16.7 billion of a total fair value of $21.5 billion in fixed maturities, including securities pledged, were valued using unadjusted broker quotes and unadjusted prices obtained from pricing services, respectively, and verified through the review process. The remaining balance in fixed maturities consisted primarily of privately placed bonds valued using a matrix-based pricing. | |||||||||||||||||||||||||||||||||||||||||||||
All prices and broker quotes obtained go through the review process described above including valuations for which only one broker quote is obtained. After review, for those instruments where the price is determined to be appropriate, the unadjusted price provided is used for financial statement valuation. If it is determined that the price is questionable, another price may be requested from a different vendor. The internal valuation committee then reviews all prices for the instrument again, along with information from the review, to determine which price best represents "exit price" for the instrument. | |||||||||||||||||||||||||||||||||||||||||||||
Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond. | |||||||||||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale: Fair values of publicly traded equity securities are based upon quoted market price and are classified as Level 1 assets. Other equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers and are classified as Level 2 or Level 3 assets. | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives: Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, S&P 500 Index prices, London Interbank Offered Rates ("LIBOR") and Overnight Index Swap ("OIS") rates. In June 2012, the Company began using OIS rather than LIBOR for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure. It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. Valuations for the Company's futures and interest rate forward contracts are based on unadjusted quoted prices from an active exchange and, therefore, are classified as Level 1. The Company also has certain credit default swaps and options that are priced using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. However, all other derivative instruments are valued based on market observable inputs and are classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, Short-term investments and Short-term investments under securities loan agreement: The carrying amounts for cash reflect the assets' fair values. The fair values for cash equivalents and most short-term investments are determined based on quoted market prices. These assets are classified as Level 1. Other short-term investments are valued and classified in the fair value hierarchy consistent with the policies described herein, depending on investment type. | |||||||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments and cash, the valuations of which are based upon a quoted market price and are included in Level 1. Fixed maturity valuations are obtained from third-party commercial pricing services and brokers and are classified in the fair value hierarchy consistent with the policy described above for fixed maturities. | |||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: The Company records an embedded derivative liability for its FIA contracts for interest payments to contract holders above the minimum guaranteed contract value. The guarantee is treated as an embedded derivative and is required to be accounted for separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||||||
The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities. | |||||||||||||||||||||||||||||||||||||||||||||
The discount rate used to determine the fair value of the embedded derivatives and stand-alone derivative associated with the Company's product guarantees includes an adjustment for nonperformance risk. Through June 30, 2012, the Company's nonperformance risk adjustment was based on the credit default swap spreads of ING Insurance, the Company's indirect parent company, with similar term to maturity and priority of payment. The ING Insurance credit default spread was applied to the risk-free swap curve in the Company's valuation models for these product guarantees. As a result of the availability of ING U.S., Inc.'s market observable data following the issuance of its long-term debt on July 13, 2012, the Company changed its estimate of nonperformance risk to incorporate a blend of observable, similarly rated peer company credit default swap spreads, adjusted to reflect the Company's own credit quality as well as an adjustment to reflect the priority of policyholder claims. | |||||||||||||||||||||||||||||||||||||||||||||
The Company's valuation actuaries are responsible for the policies and procedures for valuing the embedded derivatives, reflecting the capital markets and actuarial valuation inputs and nonperformance risk in the estimate of the fair value of the embedded derivatives. The actuarial and capital market assumptions for each liability are approved by each product's Chief Risk Officer ("CRO"), including an independent annual review by the U.S. CRO. Models used to value the embedded derivatives must comply with the Company's governance policies. | |||||||||||||||||||||||||||||||||||||||||||||
Quarterly, an attribution analysis is performed to quantify changes in fair value measurements and a sensitivity analysis is used to analyze the changes. The changes in fair value measurements are also compared to corresponding movements in the hedge target to assess the validity of the attributions. The results of the attribution analysis are reviewed by the valuation actuaries, responsible CFOs, Controllers, CROs and/or others as nominated by management. | |||||||||||||||||||||||||||||||||||||||||||||
Embedded derivative on reinsurance: The carrying value of the embedded derivative is estimated based upon the change in the fair value of the assets supporting the funds withheld under the reinsurance agreement, accounted for under the deposit method. As the fair value of the assets held in trust is based on a quoted market price (Level 1), the fair value of the embedded derivative is based on market observable inputs and is classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||||||
Transfers in and out of Level 1 and 2 | |||||||||||||||||||||||||||||||||||||||||||||
There were no securities transferred between Level 1 and Level 2 for the years ended December 31, 2013 and 2012. The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||
The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below. | |||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the year ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers in to Level 3(2) | Transfers out of Level 3(2) | Fair Value | Change in Unrealized Gains (Losses) Included in Earnings(3) | ||||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | as of | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | 31-Dec | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | — | $ | — | $ | — | $ | 5.1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5.1 | $ | — | |||||||||||||||||||||||
U.S. corporate, state and municipalities | 154.6 | (0.3 | ) | 0.4 | — | * | — | (6.0 | ) | (4.3 | ) | 0.9 | — | 145.3 | (0.3 | ) | |||||||||||||||||||||||||||||
Foreign | 24.6 | — | * | 1.3 | 22.2 | — | (1.9 | ) | (10.7 | ) | 7.3 | — | * | 42.8 | — | * | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 9.1 | (2.0 | ) | (0.3 | ) | 17.5 | — | — | — | — | (0.6 | ) | 23.7 | (2.0 | ) | ||||||||||||||||||||||||||||||
Other asset-backed securities | 33.2 | 2.3 | (0.7 | ) | — | — | (2.8 | ) | (9.9 | ) | — | (4.4 | ) | 17.7 | 0.9 | ||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 221.5 | — | * | 0.7 | 44.8 | — | (10.7 | ) | (24.9 | ) | 8.2 | (5.0 | ) | 234.6 | (1.4 | ) | |||||||||||||||||||||||||||||
Equity securities, available-for-sale | 17 | (0.3 | ) | 1.4 | — | — | — | * | — | * | 34.5 | (16.7 | ) | 35.9 | — | ||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(1) | (102.0 | ) | 108.2 | — | (6.2 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
FIA(1) | (20.4 | ) | (2.7 | ) | — | — | — | — | — | — | — | (23.1 | ) | — | |||||||||||||||||||||||||||||||
Other derivatives, net | — | * | — | — | — | — | — | — | — | — | — | * | — | ||||||||||||||||||||||||||||||||
Assets held in separate accounts(4) | 16.3 | 0.1 | — | 16 | — | (11.6 | ) | — | 2.2 | (9.9 | ) | 13.1 | — | ||||||||||||||||||||||||||||||||
* Less than $0.1 | |||||||||||||||||||||||||||||||||||||||||||||
(1) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | |||||||||||||||||||||||||||||||||||||||||||||
(3) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which result in a net zero impact on net income (loss) for the Company. | |||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the year ended December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers in to Level 3(2) | Transfers out of Level 3(2) | Fair Value | Change in Unrealized Gains (Losses) Included in Earnings(3) | ||||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | as of | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | 31-Dec | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
U.S. corporate, state and municipalities | 129.1 | (0.3 | ) | (1.4 | ) | 0.4 | — | — | (7.9 | ) | 38.3 | (3.6 | ) | 154.6 | (0.4 | ) | |||||||||||||||||||||||||||||
Foreign | 51.1 | 0.9 | (4.2 | ) | — | — | (5.7 | ) | (12.5 | ) | 20.7 | (25.7 | ) | 24.6 | — | ||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 41 | 0.7 | 2.7 | 2.3 | — | (6.0 | ) | — | — | (31.6 | ) | 9.1 | (0.1 | ) | |||||||||||||||||||||||||||||||
Other asset-backed securities | 27.7 | 1.1 | 2.5 | — | — | — | (1.9 | ) | 3.8 | — | 33.2 | 0.8 | |||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 248.9 | 2.4 | (0.4 | ) | 2.7 | — | (11.7 | ) | (22.3 | ) | 62.8 | (60.9 | ) | 221.5 | 0.3 | ||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 19 | (0.2 | ) | (0.2 | ) | 0.8 | — | (2.4 | ) | — | 0.3 | (0.3 | ) | 17 | (0.5 | ) | |||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(1) | (221.0 | ) | 124.5 | — | (5.5 | ) | — | — | — | — | — | (102.0 | ) | — | |||||||||||||||||||||||||||||||
FIA(1) | (16.3 | ) | (4.1 | ) | — | — | — | — | — | — | — | (20.4 | ) | — | |||||||||||||||||||||||||||||||
Other derivatives, net | (12.6 | ) | (1.8 | ) | — | — | — | — | 14.4 | — | — | — | — | ||||||||||||||||||||||||||||||||
Assets held in separate accounts(4) | 16.1 | 0.3 | — | 16.3 | — | (8.3 | ) | — | — | (8.1 | ) | 16.3 | 0.6 | ||||||||||||||||||||||||||||||||
(1) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | |||||||||||||||||||||||||||||||||||||||||||||
(3) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which result in a net zero impact on net income (loss) for the Company. | |||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, 2013 and 2012, the transfers in and out of Level 3 for fixed maturities including securities pledged, equity securities and separate accounts were due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate. | |||||||||||||||||||||||||||||||||||||||||||||
Significant Unobservable Inputs | |||||||||||||||||||||||||||||||||||||||||||||
Quantitative information about the significant unobservable inputs used in the Company's Level 3 fair value measurements of its annuity product guarantees is presented in the following sections and table. | |||||||||||||||||||||||||||||||||||||||||||||
The Company's Level 3 fair value measurements of its fixed maturities, equity securities available-for-sale and equity and credit derivative contracts are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis. The Company performs a review of broker quotes by performing a monthly price variance comparison and back tests broker quotes to recent trade prices. | |||||||||||||||||||||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurements of FIAs include nonperformance risk and lapses. Such inputs are monitored quarterly. | |||||||||||||||||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Stabilizer embedded derivatives and MCG derivative are interest rate implied volatility, nonperformance risk, lapses and policyholder deposits. Such inputs are monitored quarterly. | |||||||||||||||||||||||||||||||||||||||||||||
Following is a description of selected inputs: | |||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Volatility: A term-structure model is used to approximate implied volatility for the swap rates for the Stabilizer and MCG fair value measurements. Where no implied volatility is readily available in the market, an alternative approach is applied based on historical volatility. | |||||||||||||||||||||||||||||||||||||||||||||
Nonperformance Risk: For the estimate of the fair value of embedded derivatives associated with the Company's product guarantees, the Company uses a blend of observable, similarly rated peer company credit default swap spreads, adjusted to reflect the credit quality of the Company and the priority of policyholder claims. | |||||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions: Management regularly reviews actuarial assumptions, which are based on the Company's experience and periodically reviewed against industry standards. Industry standards and Company experience may be limited on certain products. | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the unobservable inputs for Level 3 fair value measurements as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||
Range(1) | |||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input | FIA | Stabilizer / MCG | |||||||||||||||||||||||||||||||||||||||||||
Interest rate implied volatility | — | 0.2% to 8.0% | |||||||||||||||||||||||||||||||||||||||||||
Nonperformance risk | -0.1% to 0.79% | -0.1% to 0.79% | |||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions: | |||||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% to 10% | (2) | 0% to 55% | (3) | |||||||||||||||||||||||||||||||||||||||||
Policyholder Deposits(4) | — | 0% to 60% | (3) | ||||||||||||||||||||||||||||||||||||||||||
(1) Represents the range of reasonable assumptions that management has used in its fair value calculations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period. The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." | |||||||||||||||||||||||||||||||||||||||||||||
(3) Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below: | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of Plans | Overall Range of Lapse Rates | Range of Lapse Rates for 85% of Plans | Overall Range of Policyholder Deposits | Range of Policyholder Deposits for 85% of Plans | |||||||||||||||||||||||||||||||||||||||||
Stabilizer (Investment Only) and MCG Contracts | 88 | % | 0-30% | 0-15% | 0-55% | 0-15% | |||||||||||||||||||||||||||||||||||||||
Stabilizer with Recordkeeping Agreements | 12 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
Aggregate of all plans | 100 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
(4) Measured as a percentage of assets under management or assets under administration. | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the unobservable inputs for Level 3 fair value measurements as of December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||||||
Range(1) | |||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input | FIA | Stabilizer / MCG | |||||||||||||||||||||||||||||||||||||||||||
Interest rate implied volatility | - | 0.1% to 7.6% | |||||||||||||||||||||||||||||||||||||||||||
Nonperformance risk | 0.1% to 1.3% | 0.1% to 1.3% | |||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions: | |||||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% - 10% | (2) | 0% to 55% | (3) | |||||||||||||||||||||||||||||||||||||||||
Policyholder Deposits(4) | - | 0% to 60% | (3) | ||||||||||||||||||||||||||||||||||||||||||
(1) Represents the range of reasonable assumptions that management has used in its fair value calculations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period. The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." | |||||||||||||||||||||||||||||||||||||||||||||
(3) Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below: | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of Plans | Overall Range of Lapse Rates | Range of Lapse Rates for 85% of Plans | Overall Range of Policyholder Deposits | Range of Policyholder Deposits for 85% of Plans | |||||||||||||||||||||||||||||||||||||||||
Stabilizer (Investment Only) and MCG Contracts | 87 | % | 0-30% | 0-15% | 0-55% | 0-20% | |||||||||||||||||||||||||||||||||||||||
Stabilizer with Recordkeeping Agreements | 13 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
Aggregate of all plans | 100 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
(4) Measured as a percentage of assets under management or assets under administration. | |||||||||||||||||||||||||||||||||||||||||||||
Generally, the following will cause an increase (decrease) in the FIA embedded derivative fair value liability: | |||||||||||||||||||||||||||||||||||||||||||||
• | A decrease (increase) in nonperformance risk | ||||||||||||||||||||||||||||||||||||||||||||
• | A decrease (increase) in lapses | ||||||||||||||||||||||||||||||||||||||||||||
Generally, the following will cause an increase (decrease) in the derivative and embedded derivative fair value liabilities related to Stabilizer and MCG contracts: | |||||||||||||||||||||||||||||||||||||||||||||
• | An increase (decrease) in interest rate implied volatility | ||||||||||||||||||||||||||||||||||||||||||||
• | A decrease (increase) in nonperformance risk | ||||||||||||||||||||||||||||||||||||||||||||
• | A decrease (increase) in lapses | ||||||||||||||||||||||||||||||||||||||||||||
• | A decrease (increase) in policyholder deposits | ||||||||||||||||||||||||||||||||||||||||||||
The Company notes the following interrelationships: | |||||||||||||||||||||||||||||||||||||||||||||
• | Generally, an increase (decrease) in interest rate volatility will increase (decrease) lapses of Stabilizer and MCG contracts due to dynamic participant behavior. | ||||||||||||||||||||||||||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||
The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated: | |||||||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 20,705.80 | $ | 20,705.80 | $ | 21,455.20 | $ | 21,455.20 | |||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 134.9 | 134.9 | 142.8 | 142.8 | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | 3,396.10 | 3,403.90 | 2,872.70 | 2,946.90 | |||||||||||||||||||||||||||||||||||||||||
Policy loans | 242 | 242 | 240.9 | 240.9 | |||||||||||||||||||||||||||||||||||||||||
Limited partnerships/corporations | 180.9 | 180.9 | 179.6 | 179.6 | |||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements | 529.7 | 529.7 | 1,229.30 | 1,229.30 | |||||||||||||||||||||||||||||||||||||||||
Derivatives | 464.4 | 464.4 | 512.7 | 512.7 | |||||||||||||||||||||||||||||||||||||||||
Notes receivable from affiliates | 175 | 186.4 | 175 | 194.3 | |||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 60,104.90 | 60,104.90 | 53,655.30 | 53,655.30 | |||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Investment contract liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Funding agreements without fixed maturities and deferred annuities(1) | 21,010.80 | 24,379.60 | 20,263.40 | 25,156.50 | |||||||||||||||||||||||||||||||||||||||||
Supplementary contracts, immediate annuities and other | 624.3 | 727.1 | 680 | 837.3 | |||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
FIA | 23.1 | 23.1 | 20.4 | 20.4 | |||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | 102 | 102 | |||||||||||||||||||||||||||||||||||||||||
Other derivatives | 216.6 | 216.6 | 346.8 | 346.8 | |||||||||||||||||||||||||||||||||||||||||
Long-term debt | 4.9 | 4.9 | 4.9 | 4.9 | |||||||||||||||||||||||||||||||||||||||||
Embedded derivatives on reinsurance | (54.0 | ) | (54.0 | ) | — | — | |||||||||||||||||||||||||||||||||||||||
(1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Annuity product guarantees section of the table above. | |||||||||||||||||||||||||||||||||||||||||||||
The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Consolidated Balance Sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument. | |||||||||||||||||||||||||||||||||||||||||||||
ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. | |||||||||||||||||||||||||||||||||||||||||||||
The following valuation methods and assumptions were used by the Company in estimating the fair value of the following financial instruments, which are not carried at fair value on the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate: The fair values for mortgage loans on real estate are estimated on a monthly basis using discounted cash flow analyses and rates currently being offered in the marketplace for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. Mortgage loans on real estate are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||||||
Policy loans: The fair value of policy loans approximates the carrying value of the loans. Policy loans are collateralized by the cash surrender value of the associated insurance contracts and are classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships/corporations: The fair value for these investments, primarily private equity fund of funds and hedge funds, is based on actual or estimated Net Asset Value ("NAV") information as provided by the investee and is classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||||||
Notes receivable from affiliates: Estimated fair value of the Company's notes receivable from affiliates is determined primarily using a matrix-based pricing. The model considers the current level of risk-free interest rates, credit quality of the issuer and cash flow characteristics of the security model and is classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||||||
Investment contract liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Funding agreements without a fixed maturity and deferred annuities: Fair value is estimated as the mean present value of stochastically modeled cash flows associated with the contract liabilities taking into account assumptions about contract holder behavior. The stochastic valuation scenario set is consistent with current market parameters and discount is taken using stochastically evolving risk-free rates in the scenarios plus an adjustment for nonperformance risk. Margins for non-financial risks associated with the contract liabilities are also included. These liabilities are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||||||
Supplementary contracts and immediate annuities: Fair value is estimated as the mean present value of the single deterministically modeled cash flows associated with the contract liabilities discounted using stochastically evolving short risk-free rates in the scenarios plus an adjustment for nonperformance risk. The valuation is consistent with current market parameters. Margins for non-financial risks associated with the contract liabilities are also included. These liabilities are classified as Level 3. | |||||||||||||||||||||||||||||||||||||||||||||
Long-term debt: Estimated fair value of the Company's notes to affiliates is based upon discounted future cash flows using a discount rate approximating the current market rate, incorporating nonperformance risk and is classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||||||
Fair value estimates are made at a specific point in time, based on available market information and judgments about various financial instruments, such as estimates of timing and amounts of future cash flows. Such estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized capital gains (losses). In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating the Company's management of interest rate, price and liquidity risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs and Value of Business Acquired | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | ' | |||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired | ' | |||||||||||
Activity within DAC and VOBA was as follows for the periods indicated: | ||||||||||||
DAC | VOBA | Total | ||||||||||
Balance at January 1, 2011 | $ | 307.6 | $ | 864.2 | $ | 1,171.80 | ||||||
Deferrals of commissions and expenses | 79.8 | 8.5 | 88.3 | |||||||||
Amortization: | ||||||||||||
Amortization | (71.5 | ) | (125.1 | ) | (196.6 | ) | ||||||
Interest accrued(1) | 31.9 | 70.5 | 102.4 | |||||||||
Net amortization included in the Consolidated Statements of Operations | (39.6 | ) | (54.6 | ) | (94.2 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | (12.9 | ) | (224.5 | ) | (237.4 | ) | ||||||
Balance at December 31, 2011 | 334.9 | 593.6 | 928.5 | |||||||||
Deferrals of commissions and expenses | 79.1 | 8.1 | 87.2 | |||||||||
Amortization: | ||||||||||||
Amortization | (72.1 | ) | (152.6 | ) | (224.7 | ) | ||||||
Interest accrued(1) | 31.1 | 62.5 | 93.6 | |||||||||
Net amortization included in the Consolidated Statements of Operations | (41.0 | ) | (90.1 | ) | (131.1 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | (76.5 | ) | (130.2 | ) | (206.7 | ) | ||||||
Balance at December 31, 2012 | 296.5 | 381.4 | 677.9 | |||||||||
Deferrals of commissions and expenses | 71.3 | 7.2 | 78.5 | |||||||||
Amortization: | ||||||||||||
Amortization | (69.7 | ) | (83.6 | ) | (153.3 | ) | ||||||
Interest accrued(1) | 34 | 61 | 95 | |||||||||
Net amortization included in the Consolidated Statements of Operations | (35.7 | ) | (22.6 | ) | (58.3 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | 144.1 | 330.6 | 474.7 | |||||||||
Balance at December 31, 2013 | $ | 476.2 | $ | 696.6 | $ | 1,172.80 | ||||||
(1) | Interest accrued at the following rates for VOBA: 1.0% to 7.0% during 2013, 5.0% to 7.0% during 2012 and 5.0% to 7.0% during 2011. | |||||||||||
The estimated amount of VOBA amortization expense, net of interest, is presented in the following table. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results and/or changes in best estimates of future results. | ||||||||||||
Year | Amount | |||||||||||
2014 | $ | 62.7 | ||||||||||
2015 | 52.5 | |||||||||||
2016 | 46.8 | |||||||||||
2017 | 42.6 | |||||||||||
2018 | 40.6 | |||||||||||
Guaranteed_Benefit_Features
Guaranteed Benefit Features | 12 Months Ended |
Dec. 31, 2013 | |
Insurance [Abstract] | ' |
Guaranteed Benefit Features | ' |
The Company calculates an additional liability for certain GMDBs and other minimum guarantees in order to recognize the expected value of these benefits in excess of the projected account balance over the accumulation period based on total expected assessments. | |
The Company regularly evaluates estimates used to adjust the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. | |
As of December 31, 2013, the account value for the separate account contracts with guaranteed minimum benefits was $38.0 billion. The additional liability recognized related to minimum guarantees was $7.1. As of December 31, 2012, the account value for the separate account contracts with guaranteed minimum benefits was $35.2 billion. The additional liability recognized related to minimum guarantees was $108.1. | |
The aggregate fair value of fixed income securities and equity securities, including mutual funds, supporting separate accounts with additional insurance benefits and minimum investment return guarantees as of December 31, 2013 and 2012 was $9.2 billion and $9.3 billion, respectively. |
Reinsurance
Reinsurance | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Insurance [Abstract] | ' | |||||||||||
Reinsurance | ' | |||||||||||
At December 31, 2013, the Company had reinsurance treaties with 6 unaffiliated reinsurers covering a significant portion of the mortality risks and guaranteed death benefits under its variable contracts. As of December 31, 2013, the Company had one outstanding cession and a reinsurance treaty with its affiliate, Security Life of Denver International Limited ("SLDI"), to manage the reserve and capital requirements in connection with a portion of its deferred annuities business. The agreement is accounted for under the deposit method of accounting. | ||||||||||||
On October 1, 1998, the Company disposed of its individual life insurance business under an indemnity reinsurance arrangement with a subsidiary of Lincoln for $1.0 billion in cash. Under the agreement, the Lincoln subsidiary contractually assumed from the Company certain policyholder liabilities and obligations, although the Company remains obligated to contract owners. The Lincoln subsidiary established a trust to secure its obligations to the Company under the reinsurance agreement. | ||||||||||||
The Company assumed $25.0 of premium revenue from Aetna Life for the purchase and administration of a life contingent single premium variable payout annuity contract. In addition, the Company is also responsible for administering fixed annuity payments that are made to annuitants receiving variable payments. Reserves of $10.1 were maintained for this contract as of December 31, 2013 and 2012. | ||||||||||||
Reinsurance recoverable was comprised of the following as of the dates indicated: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Claims recoverable from reinsurers | $ | 2,016.70 | $ | 2,153.80 | ||||||||
Reinsured amounts due to reinsurers | (0.4 | ) | (0.3 | ) | ||||||||
Other | 0.3 | 0.2 | ||||||||||
Total | $ | 2,016.60 | $ | 2,153.70 | ||||||||
Premiums were reduced by the following amounts for reinsurance ceded for the periods indicated. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Premiums: | ||||||||||||
Direct premiums | $ | 37.4 | $ | 36.2 | $ | 34 | ||||||
Reinsurance assumed | 0.1 | — | 0.1 | |||||||||
Reinsurance ceded | (0.2 | ) | (0.2 | ) | (0.2 | ) | ||||||
Net premiums | $ | 37.3 | $ | 36 | $ | 33.9 | ||||||
Capital_Contributions_and_Divi
Capital Contributions and Dividends | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Capital Contributions and Dividends | ' |
Connecticut insurance law imposes restrictions on a Connecticut insurance company's ability to pay dividends to its parent. These restrictions are based in part on the prior year's statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior approval. Dividends in larger amounts, or extraordinary dividends, are subject to approval by the Connecticut Insurance Commissioner. | |
Under Connecticut insurance law, an extraordinary dividend or distribution is defined as a dividend or distribution that, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (1) ten percent (10.0%) of ILIAC's earned statutory surplus at the prior year end or (2) ILIAC's prior year statutory net gain from operations. Connecticut law also prohibits a Connecticut insurer from declaring or paying a dividend except out of its earned surplus unless prior insurance regulatory approval is obtained. | |
During the year ended December 31, 2013, following receipt of required approval from the Connecticut Insurance Department (the "Department") and consummation of the IPO of ING U.S., Inc., ILIAC paid an extraordinary dividend of $174.0 to its Parent. In addition, on December 9, 2013, ILIAC paid an ordinary dividend of $90.0 to its Parent. During the year ended December 31, 2012, ILIAC paid an extraordinary distribution of $340.0 to its Parent. During the year ended December 31, 2011, ILIAC did not pay a dividend on its common stock or distribution of capital to its Parent. On December 16, 2013, October 15, 2012 and December 22, 2011, IFA paid a $60.0, $90.0 and $65.0 dividend, respectively, to ILIAC, its parent. During the year ended December 31, 2013, DSL did not pay any dividend to ILIAC. On December 21, 2012, DSL paid a $15.0 dividend to ILIAC, its parent. During the year ended December 31, 2011, DSL did not pay any dividend to ILIAC. | |
During the years ended December 31, 2013 and 2012, ILIAC did not receive any capital contributions from its Parent. During the year ended December 31, 2011, ILIAC received capital contributions of $201.0 in the aggregate from its Parent. | |
The Company is subject to minimum risk-based capital ("RBC") requirements established by the Department. The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital ("TAC"), as defined by the National Association of Insurance Commissioners ("NAIC"), to authorized control level RBC, as defined by the NAIC. The Company exceeded the minimum RBC requirements that would require any regulatory or corrective action for all periods presented herein. | |
The Company is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Department. Such statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities and contract owner account balances using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. Certain assets that are not admitted under statutory accounting principles are charged directly to surplus. Depending on the regulations of the Department, the entire amount or a portion of an insurance company's asset balance can be non-admitted depending on specific rules regarding admissibility. The most significant non-admitted assets of the Company are typically deferred tax assets. | |
Statutory net income (loss) was $175.2, $261.6 and $194.4, for the years ended December 31, 2013, 2012 and 2011, respectively. Statutory capital and surplus was $2.0 billion and $1.9 billion as of December 31, 2013 and 2012, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Shareholder's equity included the following components of AOCI as of the dates indicated. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fixed maturities, net of OTTI | $ | 820.9 | $ | 2,190.90 | $ | 1,518.70 | |||||||
Equity securities, available-for-sale | 15.5 | 13.5 | 13.1 | ||||||||||
Derivatives | 133 | 215.2 | 173.7 | ||||||||||
DAC/VOBA and Sales inducements adjustments on available-for-sale securities | (335.3 | ) | (810.6 | ) | (603.6 | ) | |||||||
Premium deficiency reserve adjustment | (82.4 | ) | (152.6 | ) | (64.8 | ) | |||||||
Unrealized capital gains (losses), before tax | 551.7 | 1,456.40 | 1,037.10 | ||||||||||
Deferred income tax asset (liability) | (66.1 | ) | (444.6 | ) | (302.3 | ) | |||||||
Unrealized capital gains (losses), after tax | 485.6 | 1,011.80 | 734.8 | ||||||||||
Pension and other postretirement benefits liability, net of tax | 9.8 | 11.2 | 12.7 | ||||||||||
AOCI | $ | 495.4 | $ | 1,023.00 | $ | 747.5 | |||||||
Changes in AOCI, including the reclassification adjustments recognized in the Consolidated Statements of Operations were as follows for the periods indicated: | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (1,372.1 | ) | $ | 542.1 | (4) | $ | (830.0 | ) | ||||
Equity securities | 2 | (0.7 | ) | 1.3 | |||||||||
Other | — | — | — | ||||||||||
OTTI | 2.7 | (0.9 | ) | 1.8 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (0.6 | ) | 0.2 | (0.4 | ) | ||||||||
DAC/VOBA and Sales inducements | 475.3 | (1) | (166.4 | ) | 308.9 | ||||||||
Premium deficiency reserve adjustment | 70.2 | (24.6 | ) | 45.6 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (822.5 | ) | 349.7 | (472.8 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | (79.5 | ) | (2) | 27.9 | (51.6 | ) | |||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | (2.7 | ) | 0.9 | (1.8 | ) | ||||||||
Change in unrealized gains/losses on derivatives | (82.2 | ) | 28.8 | (53.4 | ) | ||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | (2.2 | ) | (3) | 0.8 | (1.4 | ) | |||||||
Change in pension and other postretirement benefits liability | (2.2 | ) | 0.8 | (1.4 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (906.9 | ) | $ | 379.3 | $ | (527.6 | ) | |||||
(1) See "Note 5. Deferred Policy Acquisition Costs and Value of Business Acquired" for additional information. | |||||||||||||
(2) See "Note 3. Derivative Financial Instruments" for additional information. | |||||||||||||
(3) See "Note 11. Benefit Plans" for amounts reported in Net Periodic (Benefit) Costs. | |||||||||||||
(4) Amount includes $67.6 valuation allowance. See "Note 10. Income Taxes" for additional information. | |||||||||||||
Year Ended December 31, 2012 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | 727.7 | $ | (250.3 | ) | $ | 477.4 | ||||||
Equity securities | 0.4 | (0.1 | ) | 0.3 | |||||||||
Other | — | — | — | ||||||||||
OTTI | 10.6 | (3.7 | ) | 6.9 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (66.1 | ) | 23.1 | (43.0 | ) | ||||||||
DAC/VOBA and Sales inducements | (207.0 | ) | (1) | 72.5 | (134.5 | ) | |||||||
Premium deficiency reserve adjustment | (87.8 | ) | 30.7 | (57.1 | ) | ||||||||
Change in unrealized gains/losses on available-for-sale securities | 377.8 | (127.8 | ) | 250 | |||||||||
Derivatives: | |||||||||||||
Derivatives | 41.5 | (2) | (14.5 | ) | 27 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | — | — | — | ||||||||||
Change in unrealized gains/losses on derivatives | 41.5 | (14.5 | ) | 27 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | (2.2 | ) | (3) | 0.7 | (1.5 | ) | |||||||
Change in pension and other postretirement benefits liability | (2.2 | ) | 0.7 | (1.5 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | 417.1 | $ | (141.6 | ) | $ | 275.5 | ||||||
(1) See "Note 5. Deferred Policy Acquisition Costs and Value of Business Acquired" for additional information. | |||||||||||||
(2) See "Note 3. Derivative Financial Instruments" for additional information. | |||||||||||||
(3) See "Note 11. Benefit Plans" for amounts reported in Net Periodic (Benefit) Costs. | |||||||||||||
Year Ended December 31, 2011 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | 677.8 | $ | (213.4 | ) | (4) | $ | 464.4 | |||||
Equity securities | (7.9 | ) | 2.8 | (5.1 | ) | ||||||||
Other | (0.1 | ) | — | (0.1 | ) | ||||||||
OTTI | 21.3 | (7.5 | ) | 13.8 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (114.2 | ) | 40 | (74.2 | ) | ||||||||
DAC/VOBA and Sales inducements | (241.2 | ) | (1) | 84.4 | (156.8 | ) | |||||||
Premium deficiency reserve adjustment | (3.8 | ) | 1.3 | (2.5 | ) | ||||||||
Change in unrealized gains/losses on available-for-sale securities | 331.9 | (92.4 | ) | 239.5 | |||||||||
Derivatives: | |||||||||||||
Derivatives | 173.2 | (2) | (60.6 | ) | 112.6 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | — | — | — | ||||||||||
Change in unrealized gains/losses on derivatives | 173.2 | (60.6 | ) | 112.6 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | 7.6 | (3) | (2.7 | ) | 4.9 | ||||||||
Change in pension and other postretirement benefits liability | 7.6 | (2.7 | ) | 4.9 | |||||||||
Change in Other comprehensive income (loss) | $ | 512.7 | $ | (155.7 | ) | $ | 357 | ||||||
(1) See "Note 5. Deferred Policy Acquisition Costs and Value of Business Acquired" for additional information. | |||||||||||||
(2) See "Note 3. Derivative Financial Instruments" for additional information. | |||||||||||||
(3) See "Note 11. Benefit Plans" for amounts reported in Net Periodic (Benefit) Costs. | |||||||||||||
(4) Amount includes $22.0 valuation allowance. See "Note 10. Income Taxes" for additional information. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income tax expense (benefit) consisted of the following for the periods indicated. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current tax expense (benefit): | ||||||||||||
Federal | $ | 144.6 | $ | 200.9 | $ | 60.3 | ||||||
Total current tax expense (benefit) | 144.6 | 200.9 | 60.3 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | 62.4 | (9.7 | ) | (65.3 | ) | |||||||
Total deferred tax expense (benefit) | 62.4 | (9.7 | ) | (65.3 | ) | |||||||
Total income tax expense (benefit) | $ | 207 | $ | 191.2 | $ | (5.0 | ) | |||||
Income taxes were different from the amount computed by applying the federal income tax rate to income (loss) before income taxes for the following reasons for the periods indicated: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income (loss) before income taxes | $ | 490.5 | $ | 516.6 | $ | 315.3 | ||||||
Tax rate | 35 | % | 35 | % | 35 | % | ||||||
Income tax expense (benefit) at federal statutory rate | 171.7 | 180.8 | 110.4 | |||||||||
Tax effect of: | ||||||||||||
Dividends received deduction | (26.6 | ) | (18.6 | ) | (37.0 | ) | ||||||
Valuation allowance | 67.6 | — | (87.0 | ) | ||||||||
Audit settlements | (0.3 | ) | (0.3 | ) | 3.7 | |||||||
Prior year tax | — | 28.1 | — | |||||||||
Other | (5.4 | ) | 1.2 | 4.9 | ||||||||
Income tax expense (benefit) | $ | 207 | $ | 191.2 | $ | (5.0 | ) | |||||
For 2012, the difference between the income tax provision as computed and the federal statutory rate was primarily due to a decrease in our estimate of certain deferred tax assets. Based on its 2011 tax return as filed, the Company decreased its estimated deferred tax assets by $28.1. | ||||||||||||
Temporary Differences | ||||||||||||
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of the dates indicated, are presented below. | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets | ||||||||||||
Insurance reserves | $ | 166.7 | $ | 255.4 | ||||||||
Investments | 231.8 | 87.5 | ||||||||||
Postemployment benefits | 67.3 | 50.6 | ||||||||||
Compensation and benefits | 35.8 | 44.4 | ||||||||||
Other assets | — | 24.5 | ||||||||||
Total gross assets before valuation allowance | 501.6 | 462.4 | ||||||||||
Less: Valuation allowance | 11.1 | 11.1 | ||||||||||
Assets, net of valuation allowance | 490.5 | 451.3 | ||||||||||
Deferred tax liabilities | ||||||||||||
Net unrealized investment (gains) losses | (310.5 | ) | (482.4 | ) | ||||||||
Deferred policy acquisition costs | (124.1 | ) | (143.8 | ) | ||||||||
Value of business acquired | (243.8 | ) | (332.2 | ) | ||||||||
Other liabilities | (2.2 | ) | — | |||||||||
Total gross liabilities | (680.6 | ) | (958.4 | ) | ||||||||
Net deferred income tax asset (liability) | $ | (190.1 | ) | $ | (507.1 | ) | ||||||
Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. As of December 31, 2013 and 2012, the Company had valuation allowances of $130.4 and $62.8 respectively, that were allocated to continuing operations, and $(119.3) and $(51.7) as of the end of each period that were allocated to Other comprehensive income. As of December 31, 2013 and 2012, the Company had a full valuation allowance of $11.1 related to foreign tax credits, the benefit of which is uncertain. | ||||||||||||
For the years ended December 31, 2013 and 2012, there were no total increases (decreases) in the valuation allowance. For the year ended December 31, 2011 there was a (decrease) of $(109.0). In the years ended December 31, 2013, 2012 and 2011, there were increases (decreases) of $67.6, $0.0 and $(87.0), respectively, in the valuation allowance that were allocated to operations. In the years ended December 31, 2013, 2012 and 2011, there were increases (decreases) of $(67.6), $0.0 and $(22.0), respectively, that were allocated to Other comprehensive income. | ||||||||||||
Tax Sharing Agreement | ||||||||||||
The Company had a payable to ING U.S., Inc. of $74.1 and $32.1 for federal income taxes as of December 31, 2013 and 2012, respectively, for federal income taxes under the intercompany tax sharing agreement. | ||||||||||||
The results of the Company's operations are included in the consolidated tax return of ING U.S., Inc. Generally, the Company's consolidated financial statements recognize the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods pursuant to the provisions of Income Taxes (ASC Topic 740) as if the Company were a separate taxpayer rather than a member of ING U.S., Inc.'s consolidated income tax return group with the exception of any net operating loss carryforwards and capital loss carryforwards, which are recorded pursuant to the tax sharing agreement. The Company's tax sharing agreement with ING U.S., Inc. states that for each taxable year prior to January 1, 2013 during which the Company is included in a consolidated federal income tax return with ING U.S., Inc., ING U.S., Inc. will pay to the Company an amount equal to the tax benefit of the Company's net operating loss carryforwards and capital loss carryforwards generated in such year, without regard to whether such net operating loss carryforwards and capital loss carryforwards are actually utilized in the reduction of the consolidated federal income tax liability for any consolidated taxable year. | ||||||||||||
Effective January 1, 2013, the Company entered into a new tax sharing agreement with ING U.S., Inc. which provides that, for 2013 and subsequent years, ING U.S., Inc. will pay the Company for the tax benefits of ordinary and capital losses only in the event that the consolidated tax group actually uses the tax benefit of losses generated. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
Reconciliations of the change in the unrecognized income tax benefits for the periods indicated are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of period | $ | — | $ | — | $ | 23 | ||||||
Additions for tax positions related to prior years | — | — | 4.5 | |||||||||
Reductions for tax positions related to prior years | — | — | (4.5 | ) | ||||||||
Reductions for settlements with taxing authorities | — | — | (23.0 | ) | ||||||||
Balance at end of period | $ | — | $ | — | $ | — | ||||||
The Company had no unrecognized tax benefits for the years ended December 31, 2013 and 2012. | ||||||||||||
Interest and Penalties | ||||||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in Current income taxes and Income tax expense on the Consolidated Balance Sheets and the Consolidated Statements of Operations, respectively. The Company had no accrued interest as of December 31, 2013 and 2012. | ||||||||||||
Tax Regulatory Matters | ||||||||||||
During the first quarter 2013, the Internal Revenue Service ("IRS") completed its examination of ING U.S., Inc.'s return for tax year 2011. The 2011 audit settlement did not have a material impact on the Company's financial statements. ING U.S., Inc. is currently under audit by the IRS, and it is expected that the examination of tax year 2012 will be finalized within the next twelve months. ING U.S., Inc. and the IRS have agreed to participate in the Compliance Assurance Program for the tax years 2012 through 2014. |
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Benefit Plans | ' | |||||||||||
Benefit Plans | ||||||||||||
Defined Benefit Plan | ||||||||||||
ING North America Insurance Corporation ("ING North America") sponsors the ING U.S. Retirement Plan (the "Retirement Plan"), effective as of December 31, 2001. Substantially all employees of ING North America and its affiliates (excluding certain employees) are eligible to participate, including the Company's employees other than Company agents. | ||||||||||||
Beginning January 1, 2012, the Retirement Plan implemented a cash balance pension formula instead of a final average pay ("FAP") formula, allowing all eligible employees to participate in the Retirement Plan. Participants will earn an annual credit equal to 4% of eligible pay. Interest is credited monthly based on a 30-year U.S. Treasury securities bond rate published by the IRS in the preceding August of each year. The accrued vested cash balance benefit is portable; participants can take it when they leave the Company's employ. For participants in the Retirement Plan as of December 31, 2013, there will be a two-year transition period from the Retirement Plan's current FAP formula to the cash balance pension formula. Due to ASC Topic 715 requirements, the accounting impact of the change in the Retirement Plan was recognized upon Board approval November 10, 2011. This change had no material impact on the Consolidated Financial Statements. | ||||||||||||
The Retirement Plan is a tax-qualified defined benefit plan, the benefits of which are guaranteed (within certain specified legal limits) by the Pension Benefit Guaranty Corporation ("PBGC"). The costs allocated to the Company for its employees' participation in the Retirement Plan were $6.5, $19.1 and $24.6 for the years ended December 31, 2013, 2012 and 2011, respectively and are included in Operating expenses in the Consolidated Statements of Operations. | ||||||||||||
Defined Contribution Plan | ||||||||||||
ING North America sponsors the ING U.S. Savings Plan and ESOP (the "Savings Plan"). Substantially all employees of ING North America and its affiliates (excluding certain employees, including but not limited to Career Agents) are eligible to participate, including the Company's employees other than Company agents. Career Agents are certain, full-time insurance salespeople who have entered into a career agent agreement with the Company and certain other individuals who meet specified eligibility criteria. The Savings Plan is a tax-qualified defined contribution retirement plan, which includes an employee stock ownership plan ("ESOP") component. The Savings Plan was most recently amended effective January 1, 2011 to permit Roth 401(k) contributions to be made to the Plan. ING North America filed a request for a determination letter on the qualified status of the Plan and received a favorable determination letter dated November 4, 2013. Savings Plan benefits are not guaranteed by the PBGC. The Savings Plan allows eligible participants to defer into the Savings Plan a specified percentage of eligible compensation on a pre-tax basis. ING North America matches such pre-tax contributions, up to a maximum of 6.0% of eligible compensation. Matching contributions are subject to a 4-year graded vesting schedule, although certain specified participants are subject to a 5-year graded vesting schedule. All contributions made to the Savings Plan are subject to certain limits imposed by applicable law. The cost allocated to the Company for the Savings Plan were $10.8, $9.7 and $9.8, for the years ended December 31, 2013, 2012 and 2011, respectively, and are included in Operating expenses in the Consolidated Statements of Operations. | ||||||||||||
Non-Qualified Retirement Plans | ||||||||||||
Effective December 31, 2001, the Company, in conjunction with ING North America, offered certain eligible employees (other than Career Agents) a Supplemental Executive Retirement Plan and an Excess Plan (collectively, the "SERPs"). Benefit accruals under Aetna Financial Services SERPs ceased, effective as of December 31, 2001 and participants begin accruing benefits under ING North America SERPs. Benefits under the SERPs are determined based on an eligible employee's years of service and average annual compensation for the highest five years during the last ten years of employment. | ||||||||||||
Effective January 1, 2012, the Supplemental Executive Retirement Plan was amended to coordinate with the amendment of the Retirement Plan from its current final average pay formula to a cash balance formula. | ||||||||||||
The Company, in conjunction with ING North America, sponsors the Pension Plan for Certain Producers of ING Life Insurance and Annuity Company (formerly the Pension Plan for Certain Producers of Aetna Life Insurance and Annuity Company) (the "Agents Non-Qualified Plan"). This plan covers certain full-time insurance salespeople who have entered into a career agent agreement with the Company and certain other individuals who meet the eligibility criteria specified in the plan ("Career Agents"). The Agents Non-Qualified Plan was frozen effective January 1, 2002. In connection with the termination, all benefit accruals ceased and all accrued benefits were frozen. | ||||||||||||
The SERPs and Agents Non-Qualified Plan, are non-qualified defined benefit pension plans, which means all the SERPs benefits are payable from the general assets of the Company and Agents Non-Qualified Plan benefits are payable from the general assets of the Company and ING North America. These non-qualified defined benefit pension plans are not guaranteed by the PBGC. | ||||||||||||
Obligations and Funded Status | ||||||||||||
The following table summarizes the benefit obligations for the SERPs and Agents Non-Qualified Plan for the periods presented: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation, January 1 | $ | 97.2 | $ | 98.7 | ||||||||
Interest cost | 3.8 | 4.4 | ||||||||||
Benefits paid | (7.8 | ) | (9.3 | ) | ||||||||
Actuarial (gains) losses on obligation | (9.1 | ) | 3.4 | |||||||||
Benefit obligation, December 31 | $ | 84.1 | $ | 97.2 | ||||||||
Amounts recognized on the Consolidated Balance Sheets consist of: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accrued benefit cost | $ | (84.1 | ) | $ | (97.2 | ) | ||||||
Accumulated other comprehensive income (loss): | ||||||||||||
Prior service cost (credit) | (6.1 | ) | (7.3 | ) | ||||||||
Net amount recognized | $ | (90.2 | ) | $ | (104.5 | ) | ||||||
Assumptions | ||||||||||||
The weighted-average assumptions used in the measurement of the December 31, 2013 and 2012 benefit obligation for the SERPs and Agents Non-Qualified Plan, were as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Discount rate | 4.95 | % | 4.05 | % | ||||||||
Rate of compensation increase | 4 | % | 4 | % | ||||||||
In determining the discount rate assumption, the Company utilizes current market information provided by its plan actuaries, including a discounted cash flow analysis of the Company's pension obligation and general movements in the current market environment. The discount rate modeling process involves selecting a portfolio of high quality, noncallable bonds that will match the cash flows of the Retirement Plan. Based upon all available information, it was determined that 4.95% was the appropriate discount rate as of December 31, 2013, to calculate the Company's accrued benefit liability. | ||||||||||||
The weighted-average assumptions used in calculating the net pension cost were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Discount rate | 4.05 | % | 4.75 | % | 5.5 | % | ||||||
Rate of compensation increase | 4 | % | 4 | % | 4 | % | ||||||
Since the benefit plans of the Company are unfunded, an assumption for return on plan assets is not required. | ||||||||||||
Net Periodic Benefit Costs | ||||||||||||
Net periodic benefit costs for the SERPs and Agents Non-Qualified Plan were as follows for the periods presented: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Interest cost | $ | 3.8 | $ | 4.4 | $ | 5 | ||||||
Net (gain) loss recognition | (9.1 | ) | 3.4 | 16 | ||||||||
Amortization of prior service cost (credit) | (1.2 | ) | (1.2 | ) | — | |||||||
The effect of any curtailment or settlement | — | — | 2.2 | |||||||||
Net periodic (benefit) cost | $ | (6.5 | ) | $ | 6.6 | $ | 23.2 | |||||
Cash Flows | ||||||||||||
In 2014, the employer is expected to contribute $6.1 to the SERPs and Agents Non-Qualified Plan. Future expected benefit payments related to the SERPs and Agents Non-Qualified Plan, for the years ended December 31, 2014 through 2018 and thereafter through 2023, are estimated to be $6.1, $5.3, $5.2, $5.3, $5.5 and $27.8, respectively. | ||||||||||||
Share Based Compensation Plans | ||||||||||||
Certain employees of the Company participate in the 2013 Omnibus Employee Incentive Plan ("the Omnibus Plan") sponsored by ING U.S., Inc., with respect to awards granted in 2013. Certain employees also participate in various ING Group share-based compensation plans with respect to awards granted prior to 2013. Upon closing of the IPO, certain awards granted by ING Group that, upon vesting, would have been issuable in the form of American Depository Receipts ("ADRs") of ING Group were converted into performance shares or restricted stock units ("RSUs") under the Omnibus Plan that upon vesting, will be issuable in ING U.S., Inc. common stock. | ||||||||||||
The Company was allocated compensation expense from ING and ING U.S., Inc. of $17.0, $11.0 and $12.6 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The Company recognized tax benefits of $6.0, $3.9 and $4.4 in 2013, 2012 and 2011, respectively. | ||||||||||||
In addition, the Company, in conjunction with ING North America, sponsors the following benefit plans: | ||||||||||||
• | The ING U.S. 401(k) Plan for ILIAC Agents, which allows participants to defer a specified percentage of eligible compensation on a pre-tax basis. Effective January 1, 2006, the Company match equals 60% of a participant's pre-tax deferral contribution, with a maximum of 6% of the participant's eligible pay. A request for a determination letter on the qualified status of the ING U.S. 401(k) Plan for ILIAC Agents was filed with the IRS on January 1, 2008. A favorable determination letter was received dated January 5, 2011. | |||||||||||
• | The Producers' Incentive Savings Plan, which allows participants to defer up to a specified portion of their eligible compensation on a pre-tax basis. The Company matches such pre-tax contributions at specified amounts. | |||||||||||
• | The Producers' Deferred Compensation Plan, which allows participants to defer up to a specified portion of their eligible compensation on a pre-tax basis. | |||||||||||
• | Certain health care and life insurance benefits for retired employees and their eligible dependents. The postretirement health care plan is contributory, with retiree contribution levels adjusted annually and the Company subsidizes a portion of the monthly per-participant premium. Beginning August 1, 2009, the Company moved from self-insuring these costs and began to use a private-fee-for-service Medicare Advantage program for post-Medicare eligible retired participants. In addition, effective October 1, 2009, the Company no longer subsidizes medical premium costs for early retirees. This change does not impact any participant currently retired and receiving coverage under the plan or any employee who is eligible for coverage under the plan and whose employment ended before October 1, 2009. The Company continues to offer access to medical coverage until retirees become eligible for Medicare. The life insurance plan provides a flat amount of noncontributory coverage and optional contributory coverage. | |||||||||||
• | The ING U.S. Supplemental Executive Retirement Plan, which is a non-qualified defined benefit restoration pension plan. | |||||||||||
• | The ING U.S. Deferred Compensation Savings Plan, which is a non-qualified deferred compensation plan that includes a 401(k) excess component. | |||||||||||
The benefit charges allocated to the Company related to these plans for the years ended December 31, 2013, 2012 and 2011, were $11.3, $11.9 and $9.9, respectively. |
Financing_Agreements
Financing Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Financing Agreements | ' |
Windsor Property Loan | |
On June 16, 2007, the State of Connecticut acting by the Department of Economic and Community Development ("DECD") loaned ILIAC $9.9 (the "DECD Loan") in connection with the development of the corporate office facility located at One Orange Way, Windsor, Connecticut that serves as the principal executive offices of the Company (the "Windsor Property"). The loan has a term of twenty years and bears an annual interest rate of 1.00%. As long as no defaults have occurred under the loan, no payments of principal or interest are due for the initial ten years of the loan. For the second ten years of the DECD Loan term, ILIAC is obligated to make monthly payments of principal and interest. | |
The DECD Loan provided for loan forgiveness during the first five years of the term at varying amounts up to $5.0 if ILIAC and its affiliates met certain employment thresholds at the Windsor Property during that period. On December 1, 2008, the DECD determined that the Company had met the employment thresholds for loan forgiveness and, accordingly, forgave $5.0 of the DECD Loan to ILIAC in accordance with the terms of the DECD Loan. The DECD Loan provides additional loan forgiveness at varying amounts up to $4.9 if ILIAC and its ING affiliates meet certain employment thresholds at the Windsor Property during years five through ten of the loan. ILIAC's obligations under the DECD Loan are secured by an unlimited recourse guaranty from its affiliate, ING North America Insurance Corporation. In November 2012, ILIAC provided a letter of credit to the DECD in the amount of $10.6 as security for its repayment obligations with respect to the loan. | |
At December 31, 2013 and 2012, the amount of the loan outstanding was $4.9, which was reflected in Long-term debt on the Consolidated Balance Sheets. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ||||||||
Leases | ||||||||
All of the Company's expenses for leased and subleased office properties are paid for by an affiliate and allocated back to the Company, as all remaining operating leases were executed by ING North America Insurance Corporation as of December 31, 2008, which resulted in the Company no longer being party to any operating leases. For the years ended December 31, 2013, 2012 and 2011, rent expense for leases was $4.0, $4.9 and $5.0, respectively. | ||||||||
Commitments | ||||||||
Through the normal course of investment operations, the Company commits to either purchase or sell securities, commercial mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. | ||||||||
As of December 31, 2013 and 2012, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $466.8 and $314.9, respectively. | ||||||||
Restricted Assets | ||||||||
The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance operations. The Company may also post collateral in connection with certain securities lending, repurchase agreements, funding agreement, LOC and derivative transactions as described further in this note. The components of the fair value of the restricted assets were as follows as of the dates indicated: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Other fixed maturities-state deposits | $ | 13.1 | $ | 13.4 | ||||
Securities pledged(1) | 140.1 | 219.7 | ||||||
Total restricted assets | $ | 153.2 | $ | 233.1 | ||||
(1) Includes the fair value of loaned securities of $97.6 and $180.2 as of December 31, 2013 and 2012, respectively, which is included in Securities pledged on the Consolidated Balance Sheets. In addition, as of December 31, 2013 and 2012, the Company delivered securities as collateral of $42.5 and $39.5, respectively, which was included in Securities pledged on the Consolidated Balance Sheets. | ||||||||
Litigation and Regulatory Matters | ||||||||
The Company is a defendant in a number of litigation matters arising from the conduct of its business, both in the ordinary course and otherwise. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek or they may be required only to state an amount sufficient to meet a court's jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonable possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including negligence, breach of contract, fraud, violation of regulation or statute, breach of fiduciary duty, negligent misrepresentation, failure to supervise, elder abuse and other torts. | ||||||||
As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. Regulatory investigations, exams, inquiries and audits could result in regulatory action against the Company. The potential outcome of such action is difficult to predict but could subject the Company to adverse consequences, including, but not limited to, settlement payments, additional payments to beneficiaries and additional escheatment of funds deemed abandoned under state laws. They may also result in fines and penalties and changes to the Company's procedures for the identification and escheatment of abandoned property or the correction of processing errors and other financial liability. | ||||||||
The outcome of a litigation or regulatory matter and the amount or range of potential loss is difficult to forecast and estimating potential losses requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters and litigation. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company's financial position, based on information currently known, management believes that the outcome of pending litigation and regulatory matters is not likely to have such an effect. However, given the large and indeterminate amounts sought and the inherent unpredictability of such matters, it is possible that an adverse outcome in certain of the Company's litigation or regulatory matters could, from time to time, have a material adverse effect upon the Company's results of operations or cash flows in a particular quarterly or annual period. | ||||||||
For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. This paragraph contains an estimate of reasonably possible losses above any amounts accrued. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued, the estimate reflects the reasonably possible range of loss in excess of the accrued amounts. For matters for which a reasonably possible (but not probable) range of loss exists, the estimate reflects the reasonably possible and unaccrued loss or range of loss. As of December 31, 2013, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters, as of such date, to be up to approximately $30.0. | ||||||||
For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company's accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews. | ||||||||
Litigation against the Company includes a case styled Healthcare Strategies, Inc., Plan Administrator of the Healthcare Strategies Inc. 401(k) Plan v. ING Life Insurance and Annuity Company (U.S.D.C. D. CT, filed February 22, 2011), in which two sponsors of 401(k) Plans governed by the Employee Retirement Income Act ("ERISA") claim that ILIAC has entered into revenue sharing agreements with mutual funds and others in violation of the prohibited transaction rules of ERISA. Among other things, the plaintiffs seek disgorgement of all revenue sharing payments and profits earned in connection with such payments, an injunction barring the practice of revenue sharing and attorney fees. On September 26, 2012, the district court certified the case as a class action in which the named plaintiffs represent approximately 15,000 similarly situated plan sponsors. ILIAC denies the allegations and is vigorously defending this litigation. The Court conducted a bench trial of the liability issues, which concluded on October 3, 2013, and the Court has taken the matter under advisement. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions | ' | |
Operating Agreements | ||
ILIAC has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. The agreements are as follows: | ||
• | Investment Advisory agreement with ING Investment Management LLC ("IIM"), an affiliate, in which IIM provides asset management, administrative and accounting services for ILIAC's general account. ILIAC incurs a fee, which is paid quarterly, based on the value of the assets under management. For the years ended December 31, 2013, 2012 and 2011, expenses were incurred in the amounts of $27.7, $27.0 and $22.8, respectively. | |
• | Services agreement with ING North America for administrative, management, financial and information technology services, dated January 1, 2001 and amended effective January 1, 2002. For the years ended December 31, 2013, 2012 and 2011, expenses were incurred in the amounts of $187.1, $183.5 and $180.6, respectively. | |
• | Services agreement between ILIAC and its U.S. insurance company affiliates for administrative, management, financial and information technology services, dated January 1, 2001 and amended effective January 1, 2002 and December 31, 2007. For the years ended December 31, 2013, 2012 and 2011, net expenses related to the agreement were incurred in the amount of $22.6, $30.8 and $29.8, respectively. | |
• | Service agreement with ING Institutional Plan Services, LLC ("IIPS") effective November 30, 2008 pursuant to which IIPS provides recordkeeper services to certain benefit plan clients of ILIAC. For the years ended December 31, 2013, 2012 and 2011, ILIAC's net earnings related to the agreement were in the amount of $8.2, $7.1 and $8.4, respectively. | |
• | Intercompany agreement with IIM pursuant to which IIM agreed, effective January 1, 2010, to pay the Company, on a monthly basis, a portion of the revenues IIM earns as investment adviser to certain U.S. registered investment companies that are investment options under certain of the Company's variable insurance products. For the years ended December 31, 2013, 2012 and 2011, revenue under the IIM intercompany agreement was $30.5, $26.2 and $24.7, respectively. | |
Management and service contracts and all cost sharing arrangements with other affiliated companies are allocated in accordance with the Company's expense and cost allocation methods. Revenues and expenses recorded as a result of transactions and agreements with affiliates may not be the same as those incurred if the Company was not a wholly owned subsidiary of its Parent. | ||
DSL has certain agreements whereby it generates revenues and expenses with affiliated entities, as follows: | ||
• | Underwriting and distribution agreements with ING USA Annuity and Life Insurance Company ("ING USA") and ReliaStar Life Insurance Company of New York ("RLNY"), affiliated companies as well as ILIAC, whereby DSL serves as the principal underwriter for variable insurance products and provides wholesale distribution services for mutual fund custodial products. In addition, DSL is authorized to enter into agreements with broker-dealers to distribute the variable insurance products and appoint representatives of the broker-dealers as agents. For the years ended December 31, 2013, 2012 and 2011, commissions were collected in the amount of $242.1, $225.5 and $218.3, respectively. Such commissions are, in turn, paid to broker-dealers. | |
• | Intercompany agreements with each of ING USA, ILIAC, IIPS, ReliaStar Life Insurance Company and Security Life of Denver Insurance Company (individually, the "Contracting Party") pursuant to which DSL agreed, effective January 1, 2010, to pay the Contracting Party, on a monthly basis, a portion of the revenues DSL earns as investment adviser to certain U.S. registered investment companies that are either investment option under certain variable insurance products of the Contracting Party or are purchased for certain customers of the Contacting Party. For the years ended December 31, 2013, 2012 and 2011, expenses were incurred under these intercompany agreements in the aggregate amount of $230.5, $212.3 and $207.9, respectively. | |
• | Service agreement with RLNY whereby DSL receives managerial and supervisory services and incurs a fee. For the years ended December 31, 2013, 2012 and 2011, expenses were incurred under this service agreement in the amount of $3.4, $3.2 and $3.2, respectively. | |
• | Administrative and advisory services agreements with ING Investment LLC and IIM, affiliated companies, in which DSL receives certain services for a fee. The fee for these services is calculated as a percentage of average assets of ING Investors Trust ("ITT). For the years ended December 31, 2013, 2012 and 2011, expenses were incurred in the amounts of $34.0, $27.0 and $23.3, respectively. | |
Reinsurance Agreement | ||
Effective January 1, 2014, ILIAC entered into a coinsurance agreement with Langhorne I, LLC, a newly formed affiliated captive reinsurance company to manage reserve and capital requirements in connection with a portion of our Stabilizer and Managed Custody Guarantee business. | ||
Effective, December 31, 2012, the Company entered into an automatic reinsurance agreement with its affiliate, SLDI to manage the reserve and capital requirements in connection with a portion of its deferred annuities business. Under the terms of the agreement, the Company will reinsure to SLDI, on an indemnity reinsurance basis, a quota share of its liabilities on the certain contracts. The quota share percentage with respect to the contracts that are delivered or issued for delivery in the State of New York will be 90% and the quota share percentage with respect to the contracts that are delivered or issued for delivery outside of the State of New York will be 100%. This agreement is accounted for under the deposit method of accounting and had an immaterial impact to the Consolidated Balance Sheets. | ||
Investment Advisory and Other Fees | ||
Effective January 1, 2007, ILIAC's investment advisory agreement to serve as investment advisor to certain variable funds offered in Company products (collectively, the "Company Funds"), was assigned to DSL. ILIAC is also compensated by the separate accounts for bearing mortality and expense risks pertaining to variable life and annuity contracts. Under the insurance and annuity contracts, the separate accounts pay ILIAC daily fees that, on an annual basis are, depending on the product, up to 3.4% of their average daily net assets. The total amount of compensation and fees received by the Company from the Company Funds and separate accounts totaled $152.4, $135.0 and $103.2 (excludes fees paid to ING Investment Management Co.) in 2013, 2012 and 2011, respectively. | ||
DSL has been retained by IIT, an affiliate, pursuant to a management agreement to provide advisory, management, administrative and other services to IIT. Under the management agreement, DSL provides or arranges for the provision of all services necessary for the ordinary operations of IIT. DSL earns a monthly fee based on a percentage of average daily net assets of IIT. DSL has entered into an administrative services subcontract with ING Fund Services, LLC, an affiliate, pursuant to which ING Fund Services, LLC, provides certain management, administrative and other services to IIT and is compensated a portion of the fees received by DSL under the management agreement. In addition to being the investment advisor of the Trust, DSL is the investment advisor of ING Partners, Inc. (the "Fund"), an affiliate. DSL and the Fund have an investment advisory agreement, whereby DSL has overall responsibility to provide portfolio management services for the Fund. The Fund pays DSL a monthly fee which is based on a percentage of average daily net assets. For the years ended December 31, 2013, 2012 and 2011, revenue received by DSL under these agreements (exclusive of fees paid to affiliates) was $418.2, $370.6 and $323.2, respectively. At December 31, 2013 and 2012, DSL had $36.5 and $25.6, respectively, receivable from IIT under the management agreement. | ||
Financing Agreements | ||
Reciprocal Loan Agreement | ||
The Company maintains a reciprocal loan agreement with ING U.S., Inc., an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under this agreement, which became effective in June 2001 and based upon its renewal on April 1, 2011 expires on April 1, 2016, either party can borrow from the other up to 3% of the Company's statutory admitted assets as of the preceding December 31. During the years ended December 31, 2013, 2012 and 2011, interest on any Company borrowing was charged at the rate of ING U.S., Inc.'s cost of funds for the interest period, plus 0.15%. During the years ended December 31, 2013, 2012 and 2011, interest on any ING U.S., Inc. borrowing was charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration. Effective January 2014, interest on any borrowing by either the Company or ING U.S., Inc. is charged at a rate based on the prevailing market rate for similar third-party borrowings or securities. | ||
Under this agreement, the Company did not incur any interest expense for the years ended December 31, 2013, 2012 and 2011. The Company earned interest income of $0.0, $0.5 and $1.3 for the years ended December 31, 2013, 2012 and 2011, respectively. Interest expense and income are included in Interest expense and Net investment income, respectively, on the Consolidated Statements of Operations. As of December 31, 2013 and 2012, the Company did not have any outstanding receivable with ING U.S., Inc. under the reciprocal loan agreement. | ||
During the second quarter of 2012, ING U.S., Inc. repaid the then outstanding receivable due under the reciprocal loan agreement from the proceeds of its $5.0 billion Senior Unsecured Credit Facility which was entered into on April 20, 2012. The Company and ING U.S., Inc. continue to maintain the reciprocal loan agreement, and future borrowings by either party will be subject to the reciprocal loan terms summarized above. | ||
Note with Affiliate | ||
On December 29, 2004, ING USA issued a surplus note in the principal amount of $175.0 (the "Note") scheduled to mature on December 29, 2034, to ILIAC. The Note bears interest at a rate of 6.26% per year. Interest is scheduled to be paid semi-annually in arrears on June 29 and December 29 of each year, commencing on June 29, 2005. Interest income was $11.1 for the years ended December 31, 2013, 2012 and 2011. | ||
Back-up Facility | ||
On January 26, 2009, ING, for itself and on behalf of certain subsidiaries, including the Company, reached an agreement with the Dutch State on an Illiquid Asset Back-up Facility (the "Alt-A Back-up Facility") regarding Alt-A RMBS owned by certain subsidiaries of ING U.S., Inc., including the Company. Pursuant to this transaction, the Company transferred all risks and rewards on 80% of a $1.1 billion par Alt-A RMBS portfolio to ING Support Holding B.V. ("ING Support Holding"), a wholly owned subsidiary of ING Group by means of the granting of a participation interest to ING Support Holding. ING and ING Support Holding entered into a back-to-back arrangement with the Dutch State on this 80%. As a result of this transaction, the Company retained 20% of the exposure for any results on the $1.1 billion Alt-A RMBS portfolio. | ||
The purchase price for the participation payable by the Dutch State was set at 90% of the par value of the 80% interest in the securities as of that date. This purchase price was payable in installments, was recognized as a loan granted to the Dutch State with a value of $794.4, and was recorded as Loan-Dutch State Obligation on the Consolidated Balance Sheets (the "Dutch State Obligation"). Under the transaction, other fees were payable by both the Company and the Dutch State. | ||
On November 13, 2012, ING, all participating ING U.S., Inc. subsidiaries, including the Company, ING Support Holding and ING Bank N.V. ("ING Bank") entered into restructuring arrangements with the Dutch State, which closed the following day (the "Termination Agreement"). Pursuant to the restructuring transaction, the Company sold the Dutch State Obligation to ING Support Holding at fair value and transferred legal title to 80% of the securities subject to the Alt-A Back-up Facility to ING Bank. The restructuring resulted in an immaterial pre-tax loss. Following the restructuring transaction, the Company continued to own 20% of the Alt-A RMBS and had the right to sell these securities, subject to a right of first refusal granted to ING Bank. Effective March 14, 2014, the right of first refusal granted to ING Bank was terminated and the Company may freely dispose of these securities. |
Schedule_I_Summary_of_Investme
Schedule I. Summary of Investments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | ' | |||||||||||
Schedule I Summary of Investments - Other Than Investments in Affiliates | ' | |||||||||||
ING Life Insurance and Annuity Company and Subsidiaries | ||||||||||||
(A wholly owned subsidiary of Lion Connecticut Holdings Inc.) | ||||||||||||
Schedule I | ||||||||||||
Summary of Investments – Other than Investments in Affiliates | ||||||||||||
As of December 31, 2013 | ||||||||||||
(In millions) | ||||||||||||
Type of Investments | Cost | Value | Amount Shown on Consolidated Balance Sheets | |||||||||
Fixed maturities | ||||||||||||
U.S. Treasuries | $ | 636.5 | $ | 670.1 | $ | 670.1 | ||||||
U.S. Government agencies and authorities | 237.1 | 242.1 | 242.1 | |||||||||
State, municipalities and political subdivisions | 77.2 | 83 | 83 | |||||||||
U.S. corporate securities | 10,326.00 | 10,668.20 | 10,668.20 | |||||||||
Foreign securities(1) | 5,572.50 | 5,770.60 | 5,770.60 | |||||||||
Residential mortgage-backed securities | 1,916.30 | 2,099.70 | 2,099.70 | |||||||||
Commercial mortgage-backed securities | 624.5 | 691.7 | 691.7 | |||||||||
Other asset-backed securities | 465.8 | 480.4 | 480.4 | |||||||||
Total fixed maturities, including securities pledged to creditors | $ | 19,855.90 | $ | 20,705.80 | $ | 20,705.80 | ||||||
Equity securities, available-for-sale | $ | 119.4 | $ | 134.9 | $ | 134.9 | ||||||
Mortgage loans on real estate | $ | 3,396.10 | $ | 3,403.90 | $ | 3,396.10 | ||||||
Policy loans | 242 | 242 | 242 | |||||||||
Short-term investments | 15 | 15 | 15 | |||||||||
Limited partnerships/corporations | 180.9 | 180.9 | 180.9 | |||||||||
Derivatives | 169.8 | 464.4 | 464.4 | |||||||||
Total investments | $ | 23,979.10 | $ | 25,146.90 | $ | 25,139.10 | ||||||
(1) The term "foreign" includes foreign governments, foreign political subdivisions, foreign public utilities and all other bonds of foreign issuers. Substantially all of the Company's foreign securities are denominated in U.S. dollars. |
Schedule_IV_Reinsurance_Inform
Schedule IV - Reinsurance Information | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ' | |||||||||||||||||
Schedule IV - Reinsurance Information | ' | |||||||||||||||||
ING Life Insurance and Annuity Company and Subsidiaries | ||||||||||||||||||
(A wholly owned subsidiary of Lion Connecticut Holdings Inc.) | ||||||||||||||||||
Schedule IV | ||||||||||||||||||
Reinsurance | ||||||||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Gross | Ceded | Assumed | Net | Percentage | ||||||||||||||
of Assumed to Net | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
Life insurance in force | $ | 13,738.10 | $ | 14,120.40 | $ | 382.3 | $ | — | NM* | |||||||||
Premiums: | ||||||||||||||||||
Accident and health insurance | 0.2 | 0.2 | — | — | ||||||||||||||
Annuities | 37.2 | — | 0.1 | 37.3 | ||||||||||||||
Total premiums | $ | 37.4 | $ | 0.2 | $ | 0.1 | $ | 37.3 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
Life insurance in force | $ | 14,684.50 | $ | 15,109.50 | $ | 425 | $ | — | NM* | |||||||||
Premiums: | ||||||||||||||||||
Accident and health insurance | 0.2 | 0.2 | — | — | ||||||||||||||
Annuities | 36 | — | — | 36 | ||||||||||||||
Total premiums | $ | 36.2 | $ | 0.2 | $ | — | $ | 36 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||
Life insurance in force | $ | 15,765.30 | $ | 16,247.80 | $ | 482.5 | $ | — | NM* | |||||||||
Premiums: | ||||||||||||||||||
Accident and health insurance | 0.2 | 0.2 | — | — | ||||||||||||||
Annuities | 33.8 | — | 0.1 | 33.9 | ||||||||||||||
Total premiums | $ | 34 | $ | 0.2 | $ | 0.1 | $ | 33.9 | ||||||||||
* Not meaningful. |
Business_Basis_of_Presentation1
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). | ||
The Consolidated Financial Statements include the accounts of ILIAC and its wholly owned subsidiaries, ING Financial Advisers, LLC ("IFA") and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated. | ||
Certain immaterial reclassifications have been made to prior year financial information to conform to the current year classifications. | ||
Use of Estimates | ' | |
Significant Accounting Policies | ||
Estimates and Assumptions | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. | ||
The Company has identified the following accounts and policies as the most significant in that they involve a higher degree of judgment, are subject to a significant degree of variability and/or contain significant accounting estimates: | ||
Reserves for future policy benefits, deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA"), valuation of investments and derivatives, impairments, income taxes and contingencies. | ||
Fair Value Measurement | ' | |
Fair Value Measurement | ||
The Company measures the fair value of its financial assets and liabilities based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or nonperformance risk, which is the risk the Company will not fulfill its obligation. The estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability ("exit price") in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability. The Company utilizes a number of valuation sources to determine the fair values of its financial assets and liabilities, including quoted market prices, third-party commercial pricing services, third-party brokers, industry-standard, vendor-provided software that models the value based on market observable inputs and other internal modeling techniques based on projected cash flows. | ||
Investments | ' | |
Investments | ||
The accounting policies for the Company's principal investments are as follows: | ||
Fixed Maturities and Equity Securities: The Company's fixed maturities and equity securities are currently designated as available-for-sale, except those accounted for using the fair value option ("FVO"). Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in Accumulated other comprehensive income (loss) ("AOCI") and presented net of related changes in DAC, VOBA and deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Consolidated Balance Sheets. | ||
The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and valued at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
Purchases and sales of fixed maturities and equity securities, excluding private placements, are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out basis. | ||
Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recorded when declared. Such dividends and interest income are recorded in Net investment income in the Consolidated Statements of Operations. | ||
Included within fixed maturities are loan-backed securities, including residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and asset-backed securities ("ABS"). Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed securities ("MBS") and ABS are estimated by management using inputs obtained from third-party specialists, including broker-dealers, and based on management's knowledge of the current market. For prepayment-sensitive securities such as interest-only and principal-only strips, inverse floaters and credit-sensitive MBS and ABS securities, which represent beneficial interests in securitized financial assets that are not of high credit quality or that have been credit impaired, the effective yield is recalculated on a prospective basis. For all other MBS and ABS, the effective yield is recalculated on a retrospective basis. | ||
Short-term Investments: Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. These investments are stated at fair value. | ||
Assets Held in Separate Accounts: Assets held in separate accounts are reported at the fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments, cash and fixed maturities. | ||
Mortgage Loans on Real Estate: The Company's mortgage loans on real estate are all commercial mortgage loans, which are reported at amortized cost, less impairment write-downs and allowance for losses. If a mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the lower of either the present value of expected cash flows from the loan discounted at the loan's original purchase yield or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing a permanent write-down recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Property obtained from foreclosed mortgage loans is recorded in Other investments on the Consolidated Balance Sheets. | ||
Mortgage loans are evaluated by the Company's investment professionals, including an appraisal of loan-specific credit quality, property characteristics and market trends. Loan performance is continuously monitored on a loan-specific basis throughout the year. The Company's review includes submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review evaluates whether the properties are performing at a consistent and acceptable level to secure the debt. | ||
Mortgages are rated for the purpose of quantifying the level of risk. Those loans with higher risk are placed on a watch list and are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. The Company defines delinquent mortgage loans consistent with industry practice as 60 days past due. | ||
The Company's policy is to recognize interest income until a loan becomes 90 days delinquent or foreclosure proceedings are commenced, at which point interest accrual is discontinued. Interest accrual is not resumed until the loan is brought current. | ||
The Company records an allowance for probable losses incurred on non-impaired loans on an aggregate basis, rather than specifically identified probable losses incurred by individual loan. | ||
Policy Loans: Policy loans are carried at an amount equal to the unpaid balance. Interest income on such loans is recorded as earned in Net investment income using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as these loans are collateralized by the cash surrender value of the associated insurance contracts. Any unpaid principal or interest on the loan is deducted from the account value or the death benefit prior to settlement of the policy. | ||
Limited Partnerships/Corporations: The Company uses the equity method of accounting for investments in limited partnership interests, which consists primarily of private equities and hedge funds. Generally, the Company records its share of earnings using a lag methodology, relying upon the most recent financial information available, generally not to exceed three months. The Company's earnings from limited partnership interests accounted for under the equity method are recorded in Net investment income. | ||
Securities Lending: The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned securities. For certain transactions, a lending agent may be used and the agent may retain some or all of the collateral deposited by the borrower and transfer the remaining collateral to the Company. Collateral retained by the agent is invested in liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. | ||
Other-than-temporary Impairments | ||
The Company periodically evaluates its available-for-sale investments to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. Factors considered in this analysis include, but are not limited to, the length of time and the extent to which the fair value has been less than amortized cost, the issuer's financial condition and near-term prospects, future economic conditions and market forecasts, interest rate changes and changes in ratings of the security. An extended and severe unrealized loss position on a fixed maturity may not have any impact on: (a) the ability of the issuer to service all scheduled interest and principal payments and (b) the evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for certain equity securities, the Company gives greater weight and consideration to a decline in market value and the likelihood such market value decline will recover. | ||
When assessing the Company's intent to sell a security or if it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, management evaluates facts and circumstances such as, but not limited to, decisions to rebalance the investment portfolio and sales of investments to meet cash flow or capital needs. | ||
When the Company has determined it has the intent to sell or if it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis and the fair value has declined below amortized cost ("intent impairment"), the individual security is written down from amortized cost to fair value, and a corresponding charge is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations as an other-than-temporary impairment ("OTTI"). If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, but the Company has determined that there has been an other-than-temporary decline in fair value below the amortized cost basis, the OTTI is bifurcated into the amount representing the present value of the decrease in cash flows expected to be collected ("credit impairment") and the amount related to other factors ("noncredit impairment"). The credit impairment is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations. The noncredit impairment is recorded in Other comprehensive income (loss). | ||
The Company uses the following methodology and significant inputs to determine the amount of the OTTI credit loss: | ||
• | When determining collectability and the period over which the value is expected to recover for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company applies the same considerations utilized in its overall impairment evaluation process, which incorporates information regarding the specific security, the industry and geographic area in which the issuer operates and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from the Company's best estimates of likely scenario-based outcomes, after giving consideration to a variety of variables that includes, but is not limited to: general payment terms of the security; the likelihood that the issuer can service the scheduled interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. | |
• | Additional considerations are made when assessing the unique features that apply to certain structured securities such as subprime, Alt-A, non-agency, RMBS, CMBS and ABS. These additional factors for structured securities include, but are not limited to: the quality of underlying collateral; expected prepayment speeds; loan-to-value ratios; debt service coverage ratios; current and forecasted loss severity; consideration of the payment terms of the underlying assets backing a particular security; and the payment priority within the tranche structure of the security. | |
• | When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, the Company considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process, which incorporates available information and the Company's best estimate of scenario-based outcomes regarding the specific security and issuer; possible corporate restructurings or asset sales by the issuer; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates and the overall macroeconomic conditions. | |
• | The Company performs a discounted cash flow analysis comparing the current amortized cost of a security to the present value of future cash flows expected to be received including estimated defaults and prepayments. The discount rate is generally the effective interest rate of the fixed maturity prior to impairment. | |
In periods subsequent to the recognition of the credit related impairment components of OTTI on a fixed maturity, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into net investment income over the remaining term of the fixed maturity in a prospective manner based on the amount and timing of estimated future cash flows. | ||
Derivatives | ' | |
Derivatives | ||
The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. | ||
The Company enters into interest rate, equity market, credit default and currency contracts, including swaps, futures, forwards, caps, floors and options, to reduce and manage various risks associated with changes in value, yield, price, cash flow or exchange rates of assets or liabilities held or intended to be held, or to assume or reduce credit exposure associated with a referenced asset, index, or pool. The Company also utilizes options and futures on equity indices to reduce and manage risks associated with its annuity products. Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge as either (a) a hedge of the exposure to changes in the estimated fair value of a recognized asset or liability or an identified portion thereof that is attributable to a particular risk ("fair value hedge") or (b) a hedge of a forecasted transaction or of the variability of cash flows that is attributable to interest rate risk to be received or paid related to a recognized asset or liability ("cash flow hedge"). In this documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. | ||
• | Fair Value Hedge: For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the hedged item, to the extent of the risk being hedged, are recognized in Other net realized capital gains (losses). | |
• | Cash Flow Hedge: For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same periods during which the hedged transaction impacts earnings in the same line item associated with the forecasted transaction. The ineffective portion of the derivative's change in value, if any, along with any of the derivative's change in value that is excluded from the assessment of hedge effectiveness, are recorded in Other net realized capital gains (losses). | |
When hedge accounting is discontinued because it is determined that the derivative is no longer expected to be highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with subsequent changes in estimated fair value recognized immediately in Other net realized capital gains (losses). The carrying value of the hedged asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in Other comprehensive income (loss) related to discontinued cash flow hedges are released into the Consolidated Statements of Operations when the Company's earnings are affected by the variability in cash flows of the hedged item. | ||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with changes in estimated fair value recognized immediately in Other net realized capital gains (losses). Derivative gains and losses recorded in Other comprehensive income (loss) pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in Other net realized capital gains (losses). | ||
The Company also has investments in certain fixed maturities and has issued certain annuity products that contain embedded derivatives whose fair value is at least partially determined by levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity markets or credit ratings/spreads. Embedded derivatives within fixed maturities are included with the host contract on the Consolidated Balance Sheets and changes in fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Embedded derivatives within certain annuity products are included in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
In addition, the Company has entered into a reinsurance agreement, accounted for under the deposit method, that contains an embedded derivative, the fair value of which is based on the change in the fair value of the underlying assets held in trust. The embedded derivative is included in Other liabilities on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivative are recorded in Interest credited and other benefit to contract owners/policyholders in the Consolidated Statements of Operations. | ||
Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships. | ||
Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. | ||
Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. | ||
Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to or received from the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships. | ||
Forwards: The Company uses forward contracts to hedge certain invested assets against movement in interest rates, particularly mortgage rates. The Company uses To Be Announced mortgage-backed securities as an economic hedge against rate movements. The Company utilizes forward contracts in non-qualifying hedging relationships. | ||
Futures: The Company uses futures contracts as a hedge against an increase in certain equity indices. Such increases may result in increased payments to the holders of the FIA contracts. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margin with the exchange on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. | ||
Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships. | ||
Managed custody guarantees ("MCG"): The Company issues certain credited rate guarantees on externally managed variable bond funds that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads. | ||
Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain annuity products that contain embedded derivatives whose market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into a reinsurance agreement, accounted for under the deposit method, which contains an embedded derivative whose fair value is based on the change in the fair value of the underlying assets held in trust. The embedded derivatives for certain fixed maturity instruments, certain annuity products and coinsurance with funds withheld arrangements are reported with the host contract in investments, in Future policy benefits and contract owner account balances and Other liabilities, respectively, on the Consolidated Balance Sheets. Changes in the fair value of embedded derivatives within fixed maturity investments and within annuity products are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Changes in fair value of embedded derivatives with reinsurance agreements are reported in Interest credited and other policyholder benefit to contract owners/policyholders in the Consolidated Statements of Operations. | ||
The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. | ||
The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is through the fourth quarter of 2016. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash on hand, amounts due from banks and other highly liquid investments, such as money market instruments and debt instruments with maturities of three months or less at the time of purchase. Cash and cash equivalents are stated at fair value. | ||
Property, Plant and Equipment | ' | |
Property and Equipment | ||
Property and equipment are carried at cost, less accumulated depreciation and included in Other assets on the Consolidated Balance Sheets. Expenditures for replacements and major improvements are capitalized; maintenance and repair expenditures are expensed as incurred. Depreciation on property and equipment is provided on a straight-line basis over the estimated useful lives of the assets with the exception of land and artwork, which are not depreciated as follows: | ||
Estimated Useful Lives | ||
Buildings | 40 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | 10 years, or the life of the lease, whichever is shorter | |
Equipment | 3 years | |
Deferred Policy Acquisition Costs | ' | |
Deferred Policy Acquisition Costs and Value of Business Acquired | ||
DAC represents policy acquisition costs that have been capitalized and are subject to amortization and interest. Capitalized costs are incremental, direct costs of contract acquisition and certain costs related directly to successful acquisition activities. Such costs consist principally of commissions, underwriting, sales and contract issuance and processing expenses directly related to the successful acquisition of new and renewal business. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. VOBA represents the outstanding value of in force business acquired and is subject to amortization and interest. The value is based on the present value of estimated net cash flows embedded in the insurance contracts at the time of the acquisition and increased for subsequent deferrable expenses on purchased policies. | ||
Amortization Methodologies | ||
The Company amortizes DAC and VOBA related to fixed and variable deferred annuity contracts over the estimated lives of the contracts in relation to the emergence of estimated gross profits. Assumptions as to mortality, persistency, interest crediting rates, fee income, returns associated with separate account performance, impact of hedge performance, expenses to administer the business and certain economic variables, such as inflation, are based on the Company's experience and overall capital markets. At each valuation date, estimated gross profits, are updated with actual gross profits and the assumptions underlying future estimated gross profits are evaluated for continued reasonableness. Adjustments to estimated gross profits require that amortization rates be revised retroactively to the date of the contract issuance ("unlocking"). | ||
Recoverability testing is performed for current issue year products to determine if gross revenues are sufficient to cover DAC and VOBA estimated benefits and expenses. In subsequent years, the Company performs testing to assess the recoverability of DAC and VOBA balances on an annual basis, or more frequently if circumstances indicate a potential loss recognition issue exists. If DAC or VOBA are not deemed recoverable from future gross profits, changes will be applied against DAC or VOBA balances before an additional reserve is established. | ||
Internal Replacements | ||
Contract owners may periodically exchange one contract for another, or make modifications to an existing contract. These transactions are identified as internal replacements. Internal replacements that are determined to result in substantially unchanged contracts are accounted for as continuations of the replaced contracts. Any costs associated with the issuance of the new contracts are considered maintenance costs and expensed as incurred. Unamortized DAC and VOBA related to the replaced contracts continue to be deferred and amortized in connection with the new contracts. Internal replacements that are determined to result in contracts that are substantially changed are accounted for as extinguishments of the replaced contracts, and any unamortized DAC and VOBA related to the replaced contracts are written off to Net amortization of deferred policy acquisition costs and value of business acquired in the Consolidated Statements of Operations. | ||
Assumptions | ||
Changes in assumptions can have a significant impact on DAC and VOBA balances, amortization rates and results of operations. Assumptions are management's best estimate of future outcome. | ||
Several assumptions are considered significant in the estimation of gross profits associated with the Company's variable products. One significant assumption is the assumed return associated with the variable account performance. To reflect the volatility in the equity markets, this assumption involves a combination of near-term expectations and long-term assumptions regarding market performance. The overall return on the variable account is dependent on multiple factors, including the relative mix of the underlying sub-accounts among bond funds and equity funds, as well as equity sector weightings. The Company's practice assumes that intermediate-term appreciation in equity markets reverts to the long-term appreciation in equity markets ("reversion to the mean"). The Company monitors market events and only changes the assumption when sustained deviations are expected. This methodology incorporates a 9% long-term equity return assumption, a 14% cap and a five-year look-forward period. | ||
Other significant assumptions used in the estimation of gross profits for products with credited rates include interest spreads and credit losses. Estimated gross profits of variable annuity contracts are sensitive to estimated policyholder behavior assumptions, such as surrender, lapse and annuitization rates. | ||
Future Policy Benefits Liability | ' | |
Future Policy Benefits and Contract Owner Accounts | ||
Future Policy Benefits | ||
The Company establishes and carries actuarially-determined reserves that are calculated to meet its future obligations. Reserves also include estimates of unpaid claims, as well as claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. The principal assumptions used to establish liabilities for future policy benefits are based on Company experience and periodically reviewed against industry standards. These assumptions include mortality, morbidity, policy lapse, contract renewal, payment of subsequent premiums or deposits by the contract owner, retirement, investment returns, inflation, benefit utilization and expenses. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations. | ||
Reserves for payout contracts with life contingencies are equal to the present value of expected future payments. Assumptions as to interest rates, mortality, and expenses are based on the Company's experience at the period the policy is sold or acquired, including a provision for adverse deviation. Such assumptions generally vary by annuity plan type, year of issue and policy duration. Interest rates used to calculate the present value of future benefits ranged from 3.0% to 8.3%. | ||
Although assumptions are "locked-in" upon the issuance of payout contracts with life contingencies, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are determined based on best estimate assumptions that exist at the time the premium deficiency reserve is established and do not include a provision for adverse deviation. | ||
Contract Owner Account Balances | ||
Contract owner account balances relate to investment-type contracts and certain annuity product guarantees, as follows: | ||
• | Account balances for fixed annuities and payout contracts without life contingencies are equal to cumulative deposits, less charges and withdrawals, plus credited interest thereon. Credited interest rates vary by product and ranged up to 8.0% for the years 2013, 2012 and 2011. Account balances for group immediate annuities without life contingent payouts are equal to the discounted value of the payment at the implied break-even rate. | |
• | For fixed-indexed annuity contracts ("FIAs"), the aggregate initial liability is equal to the deposit received, plus a bonus, if applicable, and is split into a host component and an embedded derivative component. Thereafter, the host liability accumulates at a set interest rate, and the embedded derivative liability is recognized at fair value. | |
Minimum Guarantees | ' | |
Product Guarantees and Additional Reserves | ||
The Company calculates additional reserve liabilities for certain variable annuity guaranteed benefits and variable funding agreements. The Company periodically evaluates its estimates and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations. | ||
GMDB: Reserves for annuity guaranteed minimum death benefits ("GMDB") are determined by estimating the value of expected benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. Expected experience is based on a range of scenarios. Assumptions used, such as the long-term equity market return, lapse rate and mortality, are consistent with assumptions used in estimating gross profits for purposes of amortizing DAC. The assumptions of investment performance and volatility are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor's ("S&P") 500 Index. Reserves for GMDB are recorded in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets. Changes in reserves for GMDB are reported in Interest credited and other benefits to contract owner/policyholders in the Consolidated Statements of Operations. | ||
FIA: FIAs contain embedded derivatives that are measured at estimated fair value separately from the host contracts. Such embedded derivatives are recorded in Future policy benefits and contract owner account balances, with changes in estimated fair value, along with attributed fees collected or payments made, are reported in Other net realized capital gains (losses) in the Statements of Operations. | ||
The estimated fair value of the FIA contracts is based on the present value of the excess of interest payments to the contract owners over the growth in the minimum guaranteed contract value. The excess interest payments are determined as the excess of projected index driven benefits over the projected guaranteed benefits. The projection horizon is over the anticipated life of the related contracts, which takes into account best estimate actuarial assumptions, such as partial withdrawals, full surrenders, deaths, annuitizations and maturities. | ||
Stabilizer and MCG: Products with guaranteed credited rates treat the guarantee as an embedded derivative for Stabilizer products and a stand-alone derivative for managed custody guarantee products ("MCG"). These derivatives are measured at estimated fair value and recorded in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets. Changes in estimated fair value along with attributed fees collected are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||
The estimated fair value of the Stabilizer and MCG contracts is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are projected under multiple capital market scenarios using observable risk-free rates and other best estimate assumptions. | ||
The FIA and Stabilizer embedded derivative liabilities and the stand-alone derivative for MCG include a risk margin to capture uncertainties related to policyholder behavior assumptions. The margin represents additional compensation a market participant would require to assume these risks. | ||
The discount rate used to determine the fair value of FIA and Stabilizer embedded derivative liabilities and the stand-alone derivative for MCG includes an adjustment to reflect the risk that these obligations will not be fulfilled ("nonperformance risk"). | ||
Separate Accounts | ' | |
Separate Accounts | ||
Separate account assets and liabilities generally represent funds maintained to meet specific investment objectives of contract owners or participants who bear the investment risk, subject, in limited cases, to minimum guaranteed rates. Investment income and investment gains and losses generally accrue directly to such contract owners. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company or its affiliates. | ||
Separate account assets supporting variable options under variable annuity contracts are invested, as designated by the contract owner or participant under a contract, in shares of mutual funds that are managed by the Company or its affiliates, or in other selected mutual funds not managed by the Company or its affiliates. | ||
The Company reports separately, as assets and liabilities, investments held in the separate accounts and liabilities of separate accounts if: | ||
• | Such separate accounts are legally recognized; | |
• | Assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; | |
• | Investments are directed by the contract owner or participant; and | |
• | All investment performance, net of contract fees and assessments, is passed through to the contract owner. | |
The Company reports separate account assets that meet the above criteria at fair value on the Consolidated Balance Sheets based on the fair value of the underlying investments. Separate account liabilities equal separate account assets. Investment income and net realized and unrealized capital gains (losses) of the separate accounts, however, are not reflected in the Consolidated Statements of Operations. The Consolidated Statements of Cash Flows do not reflect investment activity of the separate accounts. | ||
Debt | ' | |
Long-term Debt | ||
Long-term debt carried at an amount equal to the unpaid principal balance, net of any remaining unamortized discount or premium attributable to issuance. Direct and incremental costs to issue the debt are recorded in Other assets on the Consolidated Balance Sheets and are recognized as a component of Interest expense in the Consolidated Statements of Operations over the life of the debt, using the effective interest method of amortization. | ||
Repurchase Agreements | ' | |
Repurchase Agreements | ||
The Company engages in dollar repurchase agreements with MBS ("dollar rolls") and repurchase agreements with other collateral types to increase its return on investments and improve liquidity. Such arrangements meet the requirements to be accounted for as financing arrangements. | ||
The Company enters into dollar roll transactions by selling existing MBS and concurrently entering into an agreement to repurchase similar securities within a short time frame at a lower price. Under repurchase agreements, the Company borrows cash from a counterparty at an agreed upon interest rate for an agreed upon time frame and pledges collateral in the form of securities. At the end of the agreement, the counterparty returns the collateral to the Company, and the Company, in turn, repays the loan amount along with the additional agreed upon interest. | ||
Company policy requires that at all times during the term of the dollar roll and repurchase agreements that cash or other collateral types obtained is sufficient to allow the Company to fund substantially all of the cost of purchasing replacement assets. Cash received is invested in Short-term investments, with the offsetting obligation to repay the loan included as an Other liability on the Consolidated Balance Sheets. The carrying value of the securities pledged in dollar rolls and repurchase agreement transactions and the related repurchase obligation are included in Securities pledged and Short-term debt, respectively, on the Consolidated Balance Sheets. | ||
The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments. The Company believes the counterparties to the dollar rolls and repurchase agreements are financially responsible and that the counterparty risk is minimal. | ||
Revenue Recognition | ' | |
Recognition of Insurance Revenue and Related Benefits | ||
Premiums related to payouts contracts with life contingencies are recognized in Premiums in the Consolidated Statements of Operations when due from the contract owner. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded in Interest credited and other benefits to contract owners in the Consolidated Statements of Operations when incurred. | ||
Amounts received as payment for investment-type, fixed annuities, payout contracts without life contingencies and FIA contracts are reported as deposits to contract owner account balances. Revenues from these contracts consist primarily of fees assessed against the contract owner account balance for mortality and policy administration charges and are reported in Fee income. Surrender charges are reported in Other revenue. In addition, the Company earns investment income from the investment of contract deposits in the Company's general account portfolio, which is reported in Net investment income in the Consolidated Statements of Operations. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are deferred and amortized into revenue over the expected life of the related contracts in proportion to estimated gross profits in a manner consistent with DAC for these contracts. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration and interest credited to contract owner account balances. | ||
Income Tax | ' | |
Income Taxes | ||
The Company uses certain assumptions and estimates in determining the income taxes payable or refundable to/from ING U.S., Inc. for the current year, the deferred income tax liabilities and assets for items recognized differently in its financial statements from amounts shown on its income tax returns and the federal income tax expense. Determining these amounts requires analysis and interpretation of current tax laws and regulations, including the loss limitation rules associated with change in control. Management exercises considerable judgment in evaluating the amount and timing of recognition of the resulting income tax liabilities and assets. These judgments and estimates are reevaluated on a continual basis as regulatory and business factors change. | ||
The Company's deferred tax assets and liabilities resulting from temporary differences between financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. | ||
Deferred tax assets represent the tax benefit of future deductible temporary differences and operating loss and tax credit carryforwards. The Company evaluates and tests the recoverability of its deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: | ||
• | The nature and character of the deferred tax assets and liabilities; | |
• | Taxable income in prior carryback years; | |
• | Projected future taxable income, exclusive of reversing temporary differences and carryforwards; | |
• | Projected future reversals of existing temporary differences; | |
• | The length of time carryforwards can be utilized; | |
• | Prudent and feasible tax planning strategies the Company would employ to avoid a tax benefit from expiring unused; | |
• | The nature, frequency and severity of cumulative U.S. GAAP losses in recent years; and | |
• | Tax rules that would impact the utilization of the deferred tax assets. | |
In establishing unrecognized tax benefits, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. The Company also considers positions that have been reviewed and agreed to as part of an examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized. Tax positions that meet this standard are recognized in the Consolidated Financial Statements. The Company measures the tax position as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate resolution with the tax authority that has full knowledge of all relevant information. | ||
Certain changes or future events, such as changes in tax legislation, completion of tax audits, planning opportunities and expectations about future outcome could have an impact on the Company's estimates of valuation allowances, deferred taxes, tax provisions and effective tax rates. | ||
Reinsurance | ' | |
Reinsurance | ||
The Company utilizes reinsurance agreements in most aspects of its insurance business to reduce its exposure to large losses. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured. | ||
For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk. The Company reviews all contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. The assumptions used to account for long-duration reinsurance agreements are consistent with those used for the underlying contracts. Ceded future policy benefits and contract owner account balances are reported gross on the Consolidated Balance Sheets. | ||
Long-duration: For reinsurance of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid and benefits received related to the underlying contracts is included in the expected net cost of reinsurance which is recorded as a component of the reinsurance asset or liability. Any difference between actual and expected net cost of reinsurance is recognized in the current period and included as a component of profits used to amortize DAC. | ||
If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Interest is recorded as Other revenues or Other expenses, as appropriate. | ||
Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance. The Company also evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the Company's Consolidated Balance Sheets and are stated net of allowances for uncollectible reinsurance. Amounts currently recoverable and payable under reinsurance agreements are included in Reinsurance recoverable and Other liabilities, respectively. Such assets and liabilities relating to reinsurance agreements with the same reinsurer are recorded net on the Consolidated Balance Sheets if a right of offset exists within the reinsurance agreement. | ||
Premiums, Fee income and Policyholder benefits are reported net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in Other revenue. | ||
The Company utilizes a reinsurance agreement, accounted for under the deposit method, to manage reserve and capital requirements in connection with a portion of its deferred annuities business. The agreement contains and embedded derivative whose carrying value is estimated based on the change in the fair value of the assets supporting the funds withheld under the agreement. | ||
The Company currently has a significant concentration of ceded reinsurance with a subsidiary of Lincoln National Corporation ("Lincoln") arising from the disposition of its individual life insurance business. | ||
Commitments and Contingencies | ' | |
Contingencies | ||
A loss contingency is an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur. Examples of loss contingencies include pending or threatened adverse litigation, threat of expropriation of assets and actual or possible claims and assessments. Amounts related to loss contingencies are accrued and recorded in Other liabilities on the Consolidated Balance Sheets if it is probable that a loss has been incurred and the amount can be reasonably estimated, based on the Company's best estimate of the ultimate outcome. If determined to meet the criteria for a reserve, the Company also evaluates whether there are external legal or other costs directly associated with the resolution of the matter and accrues such costs if estimable. | ||
Adoption of New Pronouncements | ' | |
Adoption of New Pronouncements | ||
Financial Instruments | ||
Derivatives and Hedging | ||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-10, "Derivatives and Hedging (Accounting Standards Codification ("ASC")Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes" ("ASU 2013-10"), which permits an entity to use the Fed Funds Effective Swap Rate ("OIS") to be used as a U.S. benchmark interest rate for hedge accounting purposes. In addition, the guidance removes the restriction on using different benchmark rates for similar hedges. | ||
The provisions of ASU 2013-10 were adopted by the Company on July 17, 2013 for qualifying new or redesigned hedges entered into on or after that date. The adoption had no effect on the Company's financial condition, results of operations or cash flows. | ||
Deferred Policy Acquisition Costs | ||
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts | ||
In October 2010, the FASB issued ASU 2010-26, "Financial Services - Insurance (ASC Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts" ("ASU 2010-26"), which clarifies what costs relating to the acquisition of new or renewal insurance contracts qualify for deferral. Costs that should be capitalized include (1) incremental direct costs of successful contract acquisition and (2) certain costs related directly to successful acquisition activities (underwriting, policy issuance and processing, medical and inspection and sales force contract selling) performed by the insurer for the contract. Advertising costs should be included in deferred acquisition costs only if the capitalization criteria in the U.S. GAAP direct-response advertising guidance are met. All other acquisition-related costs should be charged to expense as incurred. | ||
The provisions of ASU 2010-26 were adopted retrospectively by the Company on January 1, 2012. As a result of implementing ASU 2010-26, the Company recognized a cumulative effect of change in accounting principle of $375.9, net of income taxes of $202.4, as a reduction to January 1, 2010 Retained earnings (deficit). In addition, the Company recognized a $13.9 increase to AOCI. | ||
Presentation and Disclosure | ||
Disclosures about Offsetting Assets and Liabilities | ||
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (ASC Topic 210): Disclosures about Offsetting Assets and Liabilities" (ASU 2011-11), which requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position, as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. | ||
In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (ASC Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities" ("ASU 2013-01"), which clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with ASU Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. | ||
The provisions of ASU 2013-01 and ASU 2011-11 were adopted retrospectively by the Company on January 1, 2013. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the pronouncement only pertains to additional disclosure. The disclosures required by ASU 2011-11 and ASU 2013-01 are included in "Note 3. Derivative Financial Instruments." | ||
Disclosures about Amounts Reclassified out of Accumulated Other Comprehensive Income | ||
In January 2013, the FASB issued ASU 2013-02, "Comprehensive Income (ASC Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02"), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income, in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. | ||
The provisions of ASU 2013-02 were adopted by the Company on January 1, 2013. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the pronouncement only pertains to additional disclosure. The disclosures required by ASU 2013-02, including comparative period disclosures, are included in "Note 9. Accumulated Other Comprehensive Income (Loss)." |
Business_Basis_of_Presentation2
Business, Basis of Presentation and Significant Accounting Policies Business, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Property, Plant and Equipment Useful Lives | ' | |
Estimated Useful Lives | ||
Buildings | 40 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | 10 years, or the life of the lease, whichever is shorter | |
Equipment | 3 years |
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | |||||||||||||||||||||||||||||||
Marketable Securities | ' | |||||||||||||||||||||||||||||||
Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Embedded Derivatives(2) | Fair | OTTI(3) | |||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||
Capital | Capital | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 636.5 | $ | 36.5 | $ | 2.9 | $ | — | $ | 670.1 | $ | — | ||||||||||||||||||||
U.S. Government agencies and authorities | 237.1 | 5 | — | — | 242.1 | — | ||||||||||||||||||||||||||
State, municipalities and political subdivisions | 77.2 | 5.9 | 0.1 | — | 83 | — | ||||||||||||||||||||||||||
U.S. corporate securities | 10,326.00 | 581 | 238.8 | — | 10,668.20 | 1.9 | ||||||||||||||||||||||||||
Foreign securities:(1) | ||||||||||||||||||||||||||||||||
Government | 422.9 | 25.2 | 16.5 | — | 431.6 | — | ||||||||||||||||||||||||||
Other | 5,149.60 | 272.9 | 83.5 | — | 5,339.00 | — | ||||||||||||||||||||||||||
Total foreign securities | 5,572.50 | 298.1 | 100 | — | 5,770.60 | — | ||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency | 1,638.20 | 121.9 | 17.9 | 16.9 | 1,759.10 | 0.2 | ||||||||||||||||||||||||||
Non-Agency | 278.1 | 55.2 | 4.8 | 12.1 | 340.6 | 15.1 | ||||||||||||||||||||||||||
Total Residential mortgage-backed securities | 1,916.30 | 177.1 | 22.7 | 29 | 2,099.70 | 15.3 | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | 624.5 | 68.1 | 0.9 | — | 691.7 | 4.4 | ||||||||||||||||||||||||||
Other asset-backed securities | 465.8 | 18 | 3.4 | — | 480.4 | 3.2 | ||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 19,855.90 | 1,189.70 | 368.8 | 29 | 20,705.80 | 24.8 | ||||||||||||||||||||||||||
Less: Securities pledged | 137.9 | 5.9 | 3.7 | — | 140.1 | — | ||||||||||||||||||||||||||
Total fixed maturities | 19,718.00 | 1,183.80 | 365.1 | 29 | 20,565.70 | 24.8 | ||||||||||||||||||||||||||
Equity securities | 119.4 | 15.8 | 0.3 | — | 134.9 | — | ||||||||||||||||||||||||||
Total fixed maturities and equity securities investments | $ | 19,837.40 | $ | 1,199.60 | $ | 365.4 | $ | 29 | $ | 20,700.60 | $ | 24.8 | ||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
(3) Represents OTTI reported as a component of Other comprehensive income. | ||||||||||||||||||||||||||||||||
Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2012: | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Embedded Derivatives(2) | Fair | OTTI(3) | |||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||
Capital | Capital | |||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 1,011.50 | $ | 135.6 | $ | 0.5 | $ | — | $ | 1,146.60 | $ | — | ||||||||||||||||||||
U.S. Government agencies and authorities | 379.4 | 17.6 | — | — | 397 | — | ||||||||||||||||||||||||||
State, municipalities and political subdivisions | 77.2 | 15.9 | — | — | 93.1 | — | ||||||||||||||||||||||||||
U.S. corporate securities | 9,438.00 | 1,147.40 | 11.1 | — | 10,574.30 | 2 | ||||||||||||||||||||||||||
Foreign securities:(1) | ||||||||||||||||||||||||||||||||
Government | 439.7 | 57.4 | 1.1 | — | 496 | — | ||||||||||||||||||||||||||
Other | 4,570.00 | 501.3 | 15.3 | — | 5,056.00 | — | ||||||||||||||||||||||||||
Total foreign securities | 5,009.70 | 558.7 | 16.4 | — | 5,552.00 | — | ||||||||||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Agency | 1,679.50 | 181.5 | 3.4 | 33.7 | 1,891.30 | 0.6 | ||||||||||||||||||||||||||
Non-Agency | 390.9 | 70 | 14.7 | 20 | 466.2 | 17.4 | ||||||||||||||||||||||||||
Total Residential mortgage-backed securities | 2,070.40 | 251.5 | 18.1 | 53.7 | 2,357.50 | 18 | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | 748.7 | 90.6 | 0.2 | — | 839.1 | 4.4 | ||||||||||||||||||||||||||
Other asset-backed securities | 475.7 | 26.6 | 6.7 | — | 495.6 | 3.1 | ||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 19,210.60 | 2,243.90 | 53 | 53.7 | 21,455.20 | 27.5 | ||||||||||||||||||||||||||
Less: Securities pledged | 207.2 | 13 | 0.5 | — | 219.7 | — | ||||||||||||||||||||||||||
Total fixed maturities | 19,003.40 | 2,230.90 | 52.5 | 53.7 | 21,235.50 | 27.5 | ||||||||||||||||||||||||||
Equity securities | 129.3 | 13.6 | 0.1 | — | 142.8 | — | ||||||||||||||||||||||||||
Total fixed maturities and equity securities investments | $ | 19,132.70 | $ | 2,244.50 | $ | 52.6 | $ | 53.7 | $ | 21,378.30 | $ | 27.5 | ||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
(3) Represents OTTI reported as a component of Other comprehensive income. | ||||||||||||||||||||||||||||||||
Investments Classifed by Contractual Maturity Date | ' | |||||||||||||||||||||||||||||||
The amortized cost and fair value of fixed maturities, including securities pledged, as of December 31, 2013, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid. MBS and Other ABS are shown separately because they are not due at a single maturity date. | ||||||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||||||||||
One year or less | $ | 612.5 | $ | 629.7 | ||||||||||||||||||||||||||||
After one year through five years | 3,846.60 | 4,103.60 | ||||||||||||||||||||||||||||||
After five years through ten years | 6,488.80 | 6,646.50 | ||||||||||||||||||||||||||||||
After ten years | 5,901.40 | 6,054.20 | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 2,540.80 | 2,791.40 | ||||||||||||||||||||||||||||||
Other asset-backed securities | 465.8 | 480.4 | ||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 19,855.90 | $ | 20,705.80 | ||||||||||||||||||||||||||||
U.S. and Foreign Corporate Securities by Industry | ' | |||||||||||||||||||||||||||||||
The following tables set forth the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated: | ||||||||||||||||||||||||||||||||
Amortized | Gross Unrealized Capital Gains | Gross Unrealized Capital Losses | Fair Value | |||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Communications | $ | 1,315.90 | $ | 81.5 | $ | 36.8 | $ | 1,360.60 | ||||||||||||||||||||||||
Financial | 2,114.70 | 166.9 | 20.2 | 2,261.40 | ||||||||||||||||||||||||||||
Industrial and other companies | 8,878.50 | 423.5 | 213.1 | 9,088.90 | ||||||||||||||||||||||||||||
Utilities | 2,726.50 | 159.5 | 42.3 | 2,843.70 | ||||||||||||||||||||||||||||
Transportation | 440 | 22.5 | 9.9 | 452.6 | ||||||||||||||||||||||||||||
Total | $ | 15,475.60 | $ | 853.9 | $ | 322.3 | $ | 16,007.20 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Communications | $ | 1,154.10 | $ | 161.4 | $ | 0.9 | $ | 1,314.60 | ||||||||||||||||||||||||
Financial | 1,859.30 | 240.1 | 10.9 | 2,088.50 | ||||||||||||||||||||||||||||
Industrial and other companies | 7,883.10 | 850.9 | 6.9 | 8,727.10 | ||||||||||||||||||||||||||||
Utilities | 2,715.40 | 349.8 | 7.3 | 3,057.90 | ||||||||||||||||||||||||||||
Transportation | 396.1 | 46.5 | 0.4 | 442.2 | ||||||||||||||||||||||||||||
Total | $ | 14,008.00 | $ | 1,648.70 | $ | 26.4 | $ | 15,630.30 | ||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||||||||||||||||||||||
Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Six Months or Less | More Than Six | More Than Twelve | Total | |||||||||||||||||||||||||||||
Below Amortized Cost | Months and Twelve | Months Below | ||||||||||||||||||||||||||||||
Months or Less | Amortized Cost | |||||||||||||||||||||||||||||||
Below Amortized Cost | ||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||
Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | |||||||||||||||||||||||||
U.S. Treasuries | $ | 124.4 | $ | 2.1 | $ | 34.2 | $ | 0.8 | $ | — | $ | — | $ | 158.6 | $ | 2.9 | ||||||||||||||||
U.S. corporate, state and municipalities | 1,002.80 | 22.9 | 2,413.20 | 183.8 | 236.9 | 32.2 | 3,652.90 | 238.9 | ||||||||||||||||||||||||
Foreign | 448.8 | 5.7 | 1,063.90 | 86.4 | 76.2 | 7.9 | 1,588.90 | 100 | ||||||||||||||||||||||||
Residential mortgage-backed | 262.3 | 2.9 | 212.9 | 12 | 105.8 | 7.8 | 581 | 22.7 | ||||||||||||||||||||||||
Commercial mortgage-backed | 77.9 | 0.9 | — | — | — | — | 77.9 | 0.9 | ||||||||||||||||||||||||
Other asset-backed | 38.9 | 0.2 | 30.3 | 0.2 | 26 | 3 | 95.2 | 3.4 | ||||||||||||||||||||||||
Total | $ | 1,955.10 | $ | 34.7 | $ | 3,754.50 | $ | 283.2 | $ | 444.9 | $ | 50.9 | $ | 6,154.50 | $ | 368.8 | ||||||||||||||||
Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2012: | ||||||||||||||||||||||||||||||||
Six Months or Less | More Than Six | More Than Twelve | Total | |||||||||||||||||||||||||||||
Below Amortized Cost | Months and Twelve | Months Below | ||||||||||||||||||||||||||||||
Months or Less | Amortized Cost | |||||||||||||||||||||||||||||||
Below Amortized Cost | ||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||
Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | Value | Capital Losses | |||||||||||||||||||||||||
U.S. Treasuries | $ | 300 | $ | 0.5 | $ | — | $ | — | $ | — | $ | — | $ | 300 | $ | 0.5 | ||||||||||||||||
U.S. corporate, state and municipalities | 479.8 | 6.8 | 22.5 | 0.9 | 49.4 | 3.4 | 551.7 | 11.1 | ||||||||||||||||||||||||
Foreign | 166.8 | 4.7 | 7.8 | 0.5 | 87.7 | 11.2 | 262.3 | 16.4 | ||||||||||||||||||||||||
Residential mortgage-backed | 68.7 | 1.6 | 7.2 | 0.3 | 132.4 | 16.2 | 208.3 | 18.1 | ||||||||||||||||||||||||
Commercial mortgage-backed | 7.5 | 0.1 | 1.6 | — | 2.5 | 0.1 | 11.6 | 0.2 | ||||||||||||||||||||||||
Other asset-backed | 15.6 | — | * | — | — | 34.2 | 6.7 | 49.8 | 6.7 | |||||||||||||||||||||||
Total | $ | 1,038.40 | $ | 13.7 | $ | 39.1 | $ | 1.7 | $ | 306.2 | $ | 37.6 | $ | 1,383.70 | $ | 53 | ||||||||||||||||
Schedule of Mortgage Loans Real Estate and Valuation Allowance | ' | |||||||||||||||||||||||||||||||
The following table summarizes the Company's investment in mortgage loans as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
Collective valuation allowance | (1.2 | ) | (1.3 | ) | ||||||||||||||||||||||||||||
Total net commercial mortgage loans | $ | 3,396.10 | $ | 2,872.70 | ||||||||||||||||||||||||||||
There were no impairments taken on the mortgage loan portfolio for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||||||||
The following table summarizes the activity in the allowance for losses for all commercial mortgage loans for the periods indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Collective valuation allowance for losses, balance at January 1 | $ | 1.3 | $ | 1.3 | ||||||||||||||||||||||||||||
Addition to (reduction of) allowance for losses | (0.1 | ) | — | |||||||||||||||||||||||||||||
Collective valuation allowance for losses, end of period | $ | 1.2 | $ | 1.3 | ||||||||||||||||||||||||||||
Impaired Financing Receivables | ' | |||||||||||||||||||||||||||||||
The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Impaired loans, average investment during the period (amortized cost)(1) | $ | 24.2 | $ | 5.7 | $ | 7.7 | ||||||||||||||||||||||||||
Interest income recognized on impaired loans, on an accrual basis(1) | 1.4 | 0.4 | 0.6 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on a cash basis(1) | 1.4 | 0.4 | 0.6 | |||||||||||||||||||||||||||||
Interest income recognized on troubled debt restructured loans, on an accrual basis | 1 | — | — | |||||||||||||||||||||||||||||
The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Impaired loans with allowances for losses | $ | — | $ | — | ||||||||||||||||||||||||||||
Impaired loans without allowances for losses | 42.9 | 5.6 | ||||||||||||||||||||||||||||||
Subtotal | 42.9 | 5.6 | ||||||||||||||||||||||||||||||
Less: Allowances for losses on impaired loans | — | — | ||||||||||||||||||||||||||||||
Impaired loans, net | $ | 42.9 | $ | 5.6 | ||||||||||||||||||||||||||||
Unpaid principal balance of impaired loans | $ | 44.4 | $ | 7.1 | ||||||||||||||||||||||||||||
The following table presents information on restructured loans as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Troubled debt restructured loans | $ | 37.5 | $ | — | ||||||||||||||||||||||||||||
Loans Receivable, Grouped by Loan to Value and Debt Service Coverage Ratio | ' | |||||||||||||||||||||||||||||||
Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property's net income to its debt service payments. A DSC ratio of less than 1.0 indicates that property's operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above. | ||||||||||||||||||||||||||||||||
The following table presents the LTV ratios as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Loan-to-Value Ratio: | ||||||||||||||||||||||||||||||||
0% - 50% | $ | 495.7 | $ | 501.3 | ||||||||||||||||||||||||||||
50% - 60% | 894.5 | 768.9 | ||||||||||||||||||||||||||||||
60% - 70% | 1,879.50 | 1,491.60 | ||||||||||||||||||||||||||||||
70% - 80% | 114.9 | 96.4 | ||||||||||||||||||||||||||||||
80% and above | 12.7 | 15.8 | ||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
The following table presents the DSC ratios as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | ||||||||||||||||||||||||||||||||
Greater than 1.5x | $ | 2,388.50 | $ | 2,114.40 | ||||||||||||||||||||||||||||
1.25x - 1.5x | 542.4 | 390.5 | ||||||||||||||||||||||||||||||
1.0x - 1.25x | 275.8 | 293.1 | ||||||||||||||||||||||||||||||
Less than 1.0x | 190.5 | 76 | ||||||||||||||||||||||||||||||
Commercial mortgage loans secured by land or construction loans | 0.1 | — | ||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
Mortgage Loans by Geographic Location of Collateral | ' | |||||||||||||||||||||||||||||||
Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | |||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | |||||||||||||||||||||||||||||
Commercial Mortgage Loans by U.S. Region: | ||||||||||||||||||||||||||||||||
Pacific | $ | 752.8 | 22.3 | % | $ | 564.1 | 19.6 | % | ||||||||||||||||||||||||
South Atlantic | 707.8 | 20.8 | % | 561 | 19.5 | % | ||||||||||||||||||||||||||
West South Central | 467.1 | 13.7 | % | 460.4 | 16 | % | ||||||||||||||||||||||||||
Middle Atlantic | 411.4 | 12.1 | % | 332.7 | 11.6 | % | ||||||||||||||||||||||||||
East North Central | 383.1 | 11.3 | % | 337.8 | 11.8 | % | ||||||||||||||||||||||||||
Mountain | 263.9 | 7.8 | % | 214.5 | 7.5 | % | ||||||||||||||||||||||||||
West North Central | 224.9 | 6.6 | % | 205.2 | 7.1 | % | ||||||||||||||||||||||||||
New England | 116.7 | 3.4 | % | 119.1 | 4.1 | % | ||||||||||||||||||||||||||
East South Central | 69.6 | 2 | % | 79.2 | 2.8 | % | ||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | 100 | % | $ | 2,874.00 | 100 | % | ||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | |||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | |||||||||||||||||||||||||||||
Commercial Mortgage Loans by Property Type: | ||||||||||||||||||||||||||||||||
Retail | $ | 1,082.10 | 31.9 | % | $ | 824 | 28.7 | % | ||||||||||||||||||||||||
Industrial | 972.6 | 28.6 | % | 1,035.20 | 36 | % | ||||||||||||||||||||||||||
Office | 462.1 | 13.6 | % | 427 | 14.8 | % | ||||||||||||||||||||||||||
Apartments | 445.2 | 13.1 | % | 298.7 | 10.4 | % | ||||||||||||||||||||||||||
Hotel/Motel | 182.8 | 5.4 | % | 92.1 | 3.2 | % | ||||||||||||||||||||||||||
Mixed Use | 70.9 | 2.1 | % | 34.2 | 1.2 | % | ||||||||||||||||||||||||||
Other | 181.6 | 5.3 | % | 162.8 | 5.7 | % | ||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | 100 | % | $ | 2,874.00 | 100 | % | ||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
Mortgage Loans by Year of Origination | ' | |||||||||||||||||||||||||||||||
The following table sets forth the breakdown of mortgages by year of origination as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2013(1) | 2012(1) | |||||||||||||||||||||||||||||||
Year of Origination: | ||||||||||||||||||||||||||||||||
2013 | $ | 785.2 | $ | — | ||||||||||||||||||||||||||||
2012 | 908.1 | 939 | ||||||||||||||||||||||||||||||
2011 | 792.8 | 836.9 | ||||||||||||||||||||||||||||||
2010 | 121.1 | 124 | ||||||||||||||||||||||||||||||
2009 | 68.4 | 73 | ||||||||||||||||||||||||||||||
2008 | 89 | 119 | ||||||||||||||||||||||||||||||
2007 and prior | 632.7 | 782.1 | ||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,397.30 | $ | 2,874.00 | ||||||||||||||||||||||||||||
(1) Balances do not include allowance for mortgage loan credit losses. | ||||||||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | |||||||||||||||||||||||||||||||
The following table identifies the Company's credit-related and intent-related impairments included in the Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | Impairment | No. of Securities | |||||||||||||||||||||||||||
U.S. corporate | $ | — | — | $ | 2.9 | 3 | $ | 20.4 | 17 | |||||||||||||||||||||||
Foreign(1) | 1.8 | 1 | 0.8 | 3 | 27.8 | 50 | ||||||||||||||||||||||||||
Residential mortgage-backed | 3.4 | 35 | 6 | 33 | 8.2 | 38 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 0.3 | 3 | — | — | 28.2 | 8 | ||||||||||||||||||||||||||
Other asset-backed | 0.3 | 2 | 1.2 | 4 | 22.7 | 53 | ||||||||||||||||||||||||||
Equity securities | 0.1 | 1 | — | — | — | — | ||||||||||||||||||||||||||
Total | $ | 5.9 | 42 | $ | 10.9 | 43 | $ | 107.3 | 166 | |||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
The above tables include $4.8, $9.1 and $17.6 related to credit impairments for the years ended December 31, 2013, 2012 and 2011, respectively, in Other-than-temporary impairments, which are recognized in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||
Net Investment Income | ' | |||||||||||||||||||||||||||||||
The following table summarizes Net investment income for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Fixed maturities | $ | 1,199.40 | $ | 1,222.50 | $ | 1,224.20 | ||||||||||||||||||||||||||
Equity securities, available-for-sale | 2.8 | 7.5 | 13.6 | |||||||||||||||||||||||||||||
Mortgage loans on real estate | 157.1 | 143.5 | 118.1 | |||||||||||||||||||||||||||||
Policy loans | 13.1 | 13.2 | 13.7 | |||||||||||||||||||||||||||||
Short-term investments and cash equivalents | 0.9 | 1.4 | 0.8 | |||||||||||||||||||||||||||||
Other | 42.6 | 6.8 | 95.5 | |||||||||||||||||||||||||||||
Gross investment income | 1,415.90 | 1,394.90 | 1,465.90 | |||||||||||||||||||||||||||||
Less: investment expenses | 48.9 | 46.1 | 45 | |||||||||||||||||||||||||||||
Net investment income | $ | 1,367.00 | $ | 1,348.80 | $ | 1,420.90 | ||||||||||||||||||||||||||
Realized Gain (Loss) on Investments | ' | |||||||||||||||||||||||||||||||
Net realized capital gains (losses) were as follows for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale, including securities pledged | $ | 0.3 | $ | 67.5 | $ | 112.6 | ||||||||||||||||||||||||||
Fixed maturities, at fair value option | (151.5 | ) | (124.2 | ) | (60.6 | ) | ||||||||||||||||||||||||||
Equity securities, available-for-sale | 0.1 | (0.2 | ) | 7.4 | ||||||||||||||||||||||||||||
Derivatives | (72.1 | ) | 1.3 | (64.3 | ) | |||||||||||||||||||||||||||
Embedded derivatives - fixed maturities | (24.7 | ) | (5.5 | ) | 4.9 | |||||||||||||||||||||||||||
Embedded derivatives - product guarantees | 105.5 | 120.4 | (216.1 | ) | ||||||||||||||||||||||||||||
Other investments | 0.2 | — | 0.3 | |||||||||||||||||||||||||||||
Net realized capital gains (losses) | $ | (142.2 | ) | $ | 59.3 | $ | (215.8 | ) | ||||||||||||||||||||||||
After-tax net realized capital gains (losses) | $ | (160.0 | ) | $ | 38.5 | $ | (53.3 | ) | ||||||||||||||||||||||||
Gain (Loss) on Investments | ' | |||||||||||||||||||||||||||||||
Proceeds from the sale of fixed maturities and equity securities, available-for-sale and the related gross realized gains and losses, before tax were as follows for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Proceeds on sales | $ | 1,830.00 | $ | 2,887.10 | $ | 5,596.30 | ||||||||||||||||||||||||||
Gross gains | 23.8 | 88.7 | 249 | |||||||||||||||||||||||||||||
Gross losses | 22.1 | 12.7 | 33.6 | |||||||||||||||||||||||||||||
Intent related impairment | ' | |||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | |||||||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | |||||||||||||||||||||||||||||||
The remaining $1.1, $1.8 and $89.7 for the years ended December 31, 2013, 2012 and 2011, respectively, are related to intent impairments. | ||||||||||||||||||||||||||||||||
The following table summarizes these intent impairments, which are also recognized in earnings, by type for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | Impairment | No. of Securities | |||||||||||||||||||||||||||
U.S. corporate | $ | — | — | $ | 0.2 | 1 | $ | 20.4 | 17 | |||||||||||||||||||||||
Foreign(1) | — | — | 0.8 | 3 | 23.7 | 46 | ||||||||||||||||||||||||||
Residential mortgage-backed | 0.8 | 6 | 0.7 | 3 | 1.6 | 7 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 0.3 | 3 | — | — | 22.9 | 8 | ||||||||||||||||||||||||||
Other asset-backed | — | — | 0.1 | 1 | 21.1 | 50 | ||||||||||||||||||||||||||
Total | $ | 1.1 | 9 | $ | 1.8 | 8 | $ | 89.7 | 128 | |||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||
Credit related impairment | ' | |||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | |||||||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | |||||||||||||||||||||||||||||||
The following table identifies the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Balance at January 1 | $ | 20 | $ | 19.4 | $ | 50.7 | ||||||||||||||||||||||||||
Additional credit impairments: | ||||||||||||||||||||||||||||||||
On securities not previously impaired | 1.1 | 1.5 | 0.9 | |||||||||||||||||||||||||||||
On securities previously impaired | 1.8 | 3.7 | 6.7 | |||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||
Securities intent impaired | — | — | (8.7 | ) | ||||||||||||||||||||||||||||
Securities sold, matured, prepaid or paid down | (3.3 | ) | (4.6 | ) | (30.2 | ) | ||||||||||||||||||||||||||
Balance at December 31 | $ | 19.6 | $ | 20 | $ | 19.4 | ||||||||||||||||||||||||||
Duration | ' | |||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | |||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||||||||||||||||||||||
Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive months as indicated in the tables below, were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Capital Losses | Number of Securities | ||||||||||||||||||||||||||||||
< 20% | > 20% | < 20% | > 20% | < 20% | > 20% | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Six months or less below amortized cost | $ | 2,054.40 | $ | 24.1 | $ | 45.3 | $ | 5.3 | 322 | 7 | ||||||||||||||||||||||
More than six months and twelve months or less below amortized cost | 3,991.40 | 23.5 | 272.6 | 5.8 | 502 | 3 | ||||||||||||||||||||||||||
More than twelve months below amortized cost | 420.4 | 9.5 | 37.3 | 2.5 | 137 | 8 | ||||||||||||||||||||||||||
Total | $ | 6,466.20 | $ | 57.1 | $ | 355.2 | $ | 13.6 | 961 | 18 | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Six months or less below amortized cost | $ | 1,110.80 | $ | 15.2 | $ | 19.3 | $ | 3.9 | 141 | 10 | ||||||||||||||||||||||
More than six months and twelve months or less below amortized cost | 49.5 | 1.5 | 2.6 | 0.4 | 31 | 2 | ||||||||||||||||||||||||||
More than twelve months below amortized cost | 198.1 | 61.6 | 6.2 | 20.6 | 99 | 28 | ||||||||||||||||||||||||||
Total | $ | 1,358.40 | $ | 78.3 | $ | 28.1 | $ | 24.9 | 271 | 40 | ||||||||||||||||||||||
Market Sector (Type of Security) | ' | |||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | |||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||||||||||||||||||||||
Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Capital Losses | Number of Securities | ||||||||||||||||||||||||||||||
< 20% | > 20% | < 20% | > 20% | < 20% | > 20% | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 161.5 | $ | — | $ | 2.9 | $ | — | 4 | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 3,869.00 | 22.8 | 233.2 | 5.7 | 519 | 2 | ||||||||||||||||||||||||||
Foreign | 1,665.80 | 23.1 | 95 | 5 | 239 | 5 | ||||||||||||||||||||||||||
Residential mortgage-backed | 596.9 | 6.8 | 21 | 1.7 | 162 | 7 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 78.8 | — | 0.9 | — | 12 | — | ||||||||||||||||||||||||||
Other asset-backed | 94.2 | 4.4 | 2.2 | 1.2 | 25 | 4 | ||||||||||||||||||||||||||
Total | $ | 6,466.20 | $ | 57.1 | $ | 355.2 | $ | 13.6 | 961 | 18 | ||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 300.5 | $ | — | $ | 0.5 | $ | — | 2 | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 558.1 | 4.7 | 9.1 | 2 | 82 | 2 | ||||||||||||||||||||||||||
Foreign | 242.7 | 36 | 5.7 | 10.7 | 38 | 8 | ||||||||||||||||||||||||||
Residential mortgage-backed | 201.2 | 25.2 | 10.2 | 7.9 | 124 | 24 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 11.8 | — | 0.2 | — | 8 | — | ||||||||||||||||||||||||||
Other asset-backed | 44.1 | 12.4 | 2.4 | 4.3 | 17 | 6 | ||||||||||||||||||||||||||
Total | $ | 1,358.40 | $ | 78.3 | $ | 28.1 | $ | 24.9 | 271 | 40 | ||||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | |||||||||||||||||||||||
The notional amounts and fair values of derivatives were as follows as of the dates indicated: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Notional | Asset | Liability | Notional | Asset | Liability | |||||||||||||||||||
Amount | Fair Value | Fair Value | Amount | Fair Value | Fair Value | |||||||||||||||||||
Derivatives: Qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | 763.3 | $ | 81 | $ | 0.2 | $ | 1,000.00 | $ | 215.4 | $ | — | ||||||||||||
Foreign exchange contracts | 51.2 | 2.2 | 0.6 | — | — | — | ||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Interest rate contracts(2) | 21,442.70 | 367.6 | 206.2 | 18,131.10 | 292.9 | 328.5 | ||||||||||||||||||
Foreign exchange contracts | 145.9 | 5.5 | 9.6 | 161.6 | 0.4 | 18.3 | ||||||||||||||||||
Equity contracts | 9.1 | — | * | — | 14.5 | 0.4 | — | |||||||||||||||||
Credit contracts | 384 | 8.1 | — | 347.5 | 3.6 | — | ||||||||||||||||||
Managed custody guarantees | N/A | — | — | N/A | — | — | ||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments | N/A | 29 | — | N/A | 53.7 | — | ||||||||||||||||||
Within annuity products | N/A | — | 23.1 | N/A | — | 122.4 | ||||||||||||||||||
Within reinsurance agreements | N/A | — | (54.0 | ) | N/A | — | — | |||||||||||||||||
Total | $ | 493.4 | $ | 185.7 | $ | 566.4 | $ | 469.2 | ||||||||||||||||
* Less than $0.1 | ||||||||||||||||||||||||
-1 | Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. | |||||||||||||||||||||||
(2) | As of December 31, 2013, includes a notional amount, asset fair value and liability fair value for interest rate caps of $11.8 billion, $162.5 and $29.7, respectively. As of December 31, 2012, includes a notional amount, asset fair value and liability fair value for interest rate caps of $4.5 billion, $17.7 and $0.6, respectively. | |||||||||||||||||||||||
N/A - Not Applicable | ||||||||||||||||||||||||
Offsetting Assets and Liabilities | ' | |||||||||||||||||||||||
Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of OTC and cleared derivatives excluding exchange traded contracts and forward contracts (To Be Announced mortgage-backed securities) are presented in the tables below as of the dates indicated: | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 384 | $ | 8.1 | $ | — | ||||||||||||||||||
Equity contracts | — | — | — | |||||||||||||||||||||
Foreign exchange contracts | 197.1 | 7.7 | 10.2 | |||||||||||||||||||||
Interest rate contracts | 22,206.00 | 448.6 | 206.4 | |||||||||||||||||||||
$ | 464.4 | $ | 216.6 | |||||||||||||||||||||
Counterparty netting(1) | $ | (201.3 | ) | $ | (201.3 | ) | ||||||||||||||||||
Cash collateral netting(1) | (134.0 | ) | (5.4 | ) | ||||||||||||||||||||
Securities collateral netting(1) | (15.9 | ) | (4.8 | ) | ||||||||||||||||||||
Net receivables/payables | $ | 113.2 | $ | 5.1 | ||||||||||||||||||||
(1)Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting rules. | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 347.5 | $ | 3.6 | $ | — | ||||||||||||||||||
Equity contracts | — | — | — | |||||||||||||||||||||
Foreign exchange contracts | 161.6 | 0.4 | 18.3 | |||||||||||||||||||||
Interest rate contracts | 19,131.10 | 508.3 | 328.5 | |||||||||||||||||||||
$ | 512.3 | $ | 346.8 | |||||||||||||||||||||
Counterparty netting(1) | $ | (291.4 | ) | $ | (291.4 | ) | ||||||||||||||||||
Cash collateral netting(1) | (167.1 | ) | — | |||||||||||||||||||||
Securities collateral netting(1) | (3.1 | ) | (35.8 | ) | ||||||||||||||||||||
Net receivables/payables | $ | 50.7 | $ | 19.6 | ||||||||||||||||||||
(1)Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting rules. | ||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||||||||
et realized gains (losses) on derivatives were as follows for the periods indicated: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Derivatives: Qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | 0.2 | $ | — | $ | — | ||||||||||||||||||
Foreign exchange contracts | 0.1 | — | — | |||||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(2) | ||||||||||||||||||||||||
Interest rate contracts | (92.8 | ) | (18.9 | ) | (58.3 | ) | ||||||||||||||||||
Foreign exchange contracts | 10 | 6.9 | (0.7 | ) | ||||||||||||||||||||
Equity contracts | 3.4 | 2 | (0.5 | ) | ||||||||||||||||||||
Credit contracts | 7 | 11.3 | (4.8 | ) | ||||||||||||||||||||
Managed custody guarantees | 0.2 | 1.1 | 1.1 | |||||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments(2) | (24.7 | ) | (5.5 | ) | 4.9 | |||||||||||||||||||
Within annuity products(2) | 105.3 | 119.3 | (217.2 | ) | ||||||||||||||||||||
Within reinsurance agreements(3) | 54 | — | — | |||||||||||||||||||||
Total | $ | 62.7 | $ | 116.2 | $ | (275.5 | ) | |||||||||||||||||
(1) Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Changes in fair value upon disposal for effective cash flow hedges are amortized through Net investment income and the ineffective portion is recorded in the Other net realized capital gains (losses) in the Consolidated Statements of Operations. For the years ended December 31, 2013, 2012 and 2011, ineffective amounts were immaterial. | ||||||||||||||||||||||||
(2) Changes in value are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | ||||||||||||||||||||||||
(3) Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Consolidated Statements of Operations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||||||||||||||||||||||
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 618.8 | $ | 51.3 | $ | — | $ | 670.1 | |||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | — | 237 | 5.1 | 242.1 | |||||||||||||||||||||||||||||||||||||||||
U.S. corporate, state and municipalities | — | 10,605.90 | 145.3 | 10,751.20 | |||||||||||||||||||||||||||||||||||||||||
Foreign(1) | — | 5,727.80 | 42.8 | 5,770.60 | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,076.00 | 23.7 | 2,099.70 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 691.7 | — | 691.7 | |||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | — | 462.7 | 17.7 | 480.4 | |||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 618.8 | 19,852.40 | 234.6 | 20,705.80 | |||||||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 99 | — | 35.9 | 134.9 | |||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 448.6 | — | 448.6 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 7.7 | — | 7.7 | |||||||||||||||||||||||||||||||||||||||||
Equity contracts | — | * | — | — | — | * | |||||||||||||||||||||||||||||||||||||||
Credit contracts | — | 8.1 | — | 8.1 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 529.7 | — | — | 529.7 | |||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 54,715.30 | 5,376.50 | 13.1 | 60,104.90 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 55,962.80 | $ | 25,693.30 | $ | 283.6 | $ | 81,939.70 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
FIA | $ | — | $ | — | $ | 23.1 | $ | 23.1 | |||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 206.4 | — | 206.4 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 10.2 | — | 10.2 | |||||||||||||||||||||||||||||||||||||||||
Embedded derivative on reinsurance | — | (54.0 | ) | — | (54.0 | ) | |||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 162.6 | $ | 23.1 | $ | 185.7 | |||||||||||||||||||||||||||||||||||||
* Less than $0.1. | |||||||||||||||||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as | |||||||||||||||||||||||||||||||||||||||||||||
of December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 1,093.40 | $ | 53.2 | $ | — | $ | 1,146.60 | |||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | — | 397 | — | 397 | |||||||||||||||||||||||||||||||||||||||||
U.S. corporate, state and municipalities | — | 10,512.80 | 154.6 | 10,667.40 | |||||||||||||||||||||||||||||||||||||||||
Foreign(1) | — | 5,527.40 | 24.6 | 5,552.00 | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,348.40 | 9.1 | 2,357.50 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 839.1 | — | 839.1 | |||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | — | 462.4 | 33.2 | 495.6 | |||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 1,093.40 | 20,140.30 | 221.5 | 21,455.20 | |||||||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 125.8 | — | 17 | 142.8 | |||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 508.3 | — | 508.3 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 0.4 | — | 0.4 | |||||||||||||||||||||||||||||||||||||||||
Equity contracts | 0.4 | — | — | 0.4 | |||||||||||||||||||||||||||||||||||||||||
Credit contracts | — | 3.6 | — | 3.6 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 1,229.30 | — | — | 1,229.30 | |||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 47,916.50 | 5,722.50 | 16.3 | 53,655.30 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 50,365.40 | $ | 26,375.10 | $ | 254.8 | $ | 76,995.30 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
FIA | $ | — | $ | — | $ | 20.4 | $ | 20.4 | |||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | 102 | 102 | |||||||||||||||||||||||||||||||||||||||||
Other derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 0.7 | 327.8 | — | 328.5 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 18.3 | — | 18.3 | |||||||||||||||||||||||||||||||||||||||||
Embedded derivative on reinsurance | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 0.7 | $ | 346.1 | $ | 122.4 | $ | 469.2 | |||||||||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the year ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers in to Level 3(2) | Transfers out of Level 3(2) | Fair Value | Change in Unrealized Gains (Losses) Included in Earnings(3) | ||||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | as of | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | 31-Dec | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | — | $ | — | $ | — | $ | 5.1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5.1 | $ | — | |||||||||||||||||||||||
U.S. corporate, state and municipalities | 154.6 | (0.3 | ) | 0.4 | — | * | — | (6.0 | ) | (4.3 | ) | 0.9 | — | 145.3 | (0.3 | ) | |||||||||||||||||||||||||||||
Foreign | 24.6 | — | * | 1.3 | 22.2 | — | (1.9 | ) | (10.7 | ) | 7.3 | — | * | 42.8 | — | * | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 9.1 | (2.0 | ) | (0.3 | ) | 17.5 | — | — | — | — | (0.6 | ) | 23.7 | (2.0 | ) | ||||||||||||||||||||||||||||||
Other asset-backed securities | 33.2 | 2.3 | (0.7 | ) | — | — | (2.8 | ) | (9.9 | ) | — | (4.4 | ) | 17.7 | 0.9 | ||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 221.5 | — | * | 0.7 | 44.8 | — | (10.7 | ) | (24.9 | ) | 8.2 | (5.0 | ) | 234.6 | (1.4 | ) | |||||||||||||||||||||||||||||
Equity securities, available-for-sale | 17 | (0.3 | ) | 1.4 | — | — | — | * | — | * | 34.5 | (16.7 | ) | 35.9 | — | ||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(1) | (102.0 | ) | 108.2 | — | (6.2 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
FIA(1) | (20.4 | ) | (2.7 | ) | — | — | — | — | — | — | — | (23.1 | ) | — | |||||||||||||||||||||||||||||||
Other derivatives, net | — | * | — | — | — | — | — | — | — | — | — | * | — | ||||||||||||||||||||||||||||||||
Assets held in separate accounts(4) | 16.3 | 0.1 | — | 16 | — | (11.6 | ) | — | 2.2 | (9.9 | ) | 13.1 | — | ||||||||||||||||||||||||||||||||
* Less than $0.1 | |||||||||||||||||||||||||||||||||||||||||||||
(1) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | |||||||||||||||||||||||||||||||||||||||||||||
(3) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which result in a net zero impact on net income (loss) for the Company. | |||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the year ended December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers in to Level 3(2) | Transfers out of Level 3(2) | Fair Value | Change in Unrealized Gains (Losses) Included in Earnings(3) | ||||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | as of | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | 31-Dec | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
U.S. corporate, state and municipalities | 129.1 | (0.3 | ) | (1.4 | ) | 0.4 | — | — | (7.9 | ) | 38.3 | (3.6 | ) | 154.6 | (0.4 | ) | |||||||||||||||||||||||||||||
Foreign | 51.1 | 0.9 | (4.2 | ) | — | — | (5.7 | ) | (12.5 | ) | 20.7 | (25.7 | ) | 24.6 | — | ||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 41 | 0.7 | 2.7 | 2.3 | — | (6.0 | ) | — | — | (31.6 | ) | 9.1 | (0.1 | ) | |||||||||||||||||||||||||||||||
Other asset-backed securities | 27.7 | 1.1 | 2.5 | — | — | — | (1.9 | ) | 3.8 | — | 33.2 | 0.8 | |||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 248.9 | 2.4 | (0.4 | ) | 2.7 | — | (11.7 | ) | (22.3 | ) | 62.8 | (60.9 | ) | 221.5 | 0.3 | ||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 19 | (0.2 | ) | (0.2 | ) | 0.8 | — | (2.4 | ) | — | 0.3 | (0.3 | ) | 17 | (0.5 | ) | |||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(1) | (221.0 | ) | 124.5 | — | (5.5 | ) | — | — | — | — | — | (102.0 | ) | — | |||||||||||||||||||||||||||||||
FIA(1) | (16.3 | ) | (4.1 | ) | — | — | — | — | — | — | — | (20.4 | ) | — | |||||||||||||||||||||||||||||||
Other derivatives, net | (12.6 | ) | (1.8 | ) | — | — | — | — | 14.4 | — | — | — | — | ||||||||||||||||||||||||||||||||
Assets held in separate accounts(4) | 16.1 | 0.3 | — | 16.3 | — | (8.3 | ) | — | — | (8.1 | ) | 16.3 | 0.6 | ||||||||||||||||||||||||||||||||
(1) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | |||||||||||||||||||||||||||||||||||||||||||||
(3) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which result in a net zero impact on net income (loss) for the Company. | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | ' | ||||||||||||||||||||||||||||||||||||||||||||
The following table presents the unobservable inputs for Level 3 fair value measurements as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||
Range(1) | |||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input | FIA | Stabilizer / MCG | |||||||||||||||||||||||||||||||||||||||||||
Interest rate implied volatility | — | 0.2% to 8.0% | |||||||||||||||||||||||||||||||||||||||||||
Nonperformance risk | -0.1% to 0.79% | -0.1% to 0.79% | |||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions: | |||||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% to 10% | (2) | 0% to 55% | (3) | |||||||||||||||||||||||||||||||||||||||||
Policyholder Deposits(4) | — | 0% to 60% | (3) | ||||||||||||||||||||||||||||||||||||||||||
(1) Represents the range of reasonable assumptions that management has used in its fair value calculations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period. The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." | |||||||||||||||||||||||||||||||||||||||||||||
(3) Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below: | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of Plans | Overall Range of Lapse Rates | Range of Lapse Rates for 85% of Plans | Overall Range of Policyholder Deposits | Range of Policyholder Deposits for 85% of Plans | |||||||||||||||||||||||||||||||||||||||||
Stabilizer (Investment Only) and MCG Contracts | 88 | % | 0-30% | 0-15% | 0-55% | 0-15% | |||||||||||||||||||||||||||||||||||||||
Stabilizer with Recordkeeping Agreements | 12 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
Aggregate of all plans | 100 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
(4) Measured as a percentage of assets under management or assets under administration. | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the unobservable inputs for Level 3 fair value measurements as of December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||||||
Range(1) | |||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input | FIA | Stabilizer / MCG | |||||||||||||||||||||||||||||||||||||||||||
Interest rate implied volatility | - | 0.1% to 7.6% | |||||||||||||||||||||||||||||||||||||||||||
Nonperformance risk | 0.1% to 1.3% | 0.1% to 1.3% | |||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions: | |||||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% - 10% | (2) | 0% to 55% | (3) | |||||||||||||||||||||||||||||||||||||||||
Policyholder Deposits(4) | - | 0% to 60% | (3) | ||||||||||||||||||||||||||||||||||||||||||
(1) Represents the range of reasonable assumptions that management has used in its fair value calculations. | |||||||||||||||||||||||||||||||||||||||||||||
(2) Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period. The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." | |||||||||||||||||||||||||||||||||||||||||||||
(3) Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below: | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of Plans | Overall Range of Lapse Rates | Range of Lapse Rates for 85% of Plans | Overall Range of Policyholder Deposits | Range of Policyholder Deposits for 85% of Plans | |||||||||||||||||||||||||||||||||||||||||
Stabilizer (Investment Only) and MCG Contracts | 87 | % | 0-30% | 0-15% | 0-55% | 0-20% | |||||||||||||||||||||||||||||||||||||||
Stabilizer with Recordkeeping Agreements | 13 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
Aggregate of all plans | 100 | % | 0-55% | 0-25% | 0-60% | 0-30% | |||||||||||||||||||||||||||||||||||||||
(4) Measured as a percentage of assets under management or assets under administration. | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||||||||||||||||||||||||||||
The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated: | |||||||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 20,705.80 | $ | 20,705.80 | $ | 21,455.20 | $ | 21,455.20 | |||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 134.9 | 134.9 | 142.8 | 142.8 | |||||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | 3,396.10 | 3,403.90 | 2,872.70 | 2,946.90 | |||||||||||||||||||||||||||||||||||||||||
Policy loans | 242 | 242 | 240.9 | 240.9 | |||||||||||||||||||||||||||||||||||||||||
Limited partnerships/corporations | 180.9 | 180.9 | 179.6 | 179.6 | |||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements | 529.7 | 529.7 | 1,229.30 | 1,229.30 | |||||||||||||||||||||||||||||||||||||||||
Derivatives | 464.4 | 464.4 | 512.7 | 512.7 | |||||||||||||||||||||||||||||||||||||||||
Notes receivable from affiliates | 175 | 186.4 | 175 | 194.3 | |||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 60,104.90 | 60,104.90 | 53,655.30 | 53,655.30 | |||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Investment contract liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Funding agreements without fixed maturities and deferred annuities(1) | 21,010.80 | 24,379.60 | 20,263.40 | 25,156.50 | |||||||||||||||||||||||||||||||||||||||||
Supplementary contracts, immediate annuities and other | 624.3 | 727.1 | 680 | 837.3 | |||||||||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | |||||||||||||||||||||||||||||||||||||||||||||
FIA | 23.1 | 23.1 | 20.4 | 20.4 | |||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | 102 | 102 | |||||||||||||||||||||||||||||||||||||||||
Other derivatives | 216.6 | 216.6 | 346.8 | 346.8 | |||||||||||||||||||||||||||||||||||||||||
Long-term debt | 4.9 | 4.9 | 4.9 | 4.9 | |||||||||||||||||||||||||||||||||||||||||
Embedded derivatives on reinsurance | (54.0 | ) | (54.0 | ) | — | — | |||||||||||||||||||||||||||||||||||||||
(1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Annuity product guarantees section of the table above. |
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs and Value of Business Acquired (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | ' | |||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired | ' | |||||||||||
Activity within DAC and VOBA was as follows for the periods indicated: | ||||||||||||
DAC | VOBA | Total | ||||||||||
Balance at January 1, 2011 | $ | 307.6 | $ | 864.2 | $ | 1,171.80 | ||||||
Deferrals of commissions and expenses | 79.8 | 8.5 | 88.3 | |||||||||
Amortization: | ||||||||||||
Amortization | (71.5 | ) | (125.1 | ) | (196.6 | ) | ||||||
Interest accrued(1) | 31.9 | 70.5 | 102.4 | |||||||||
Net amortization included in the Consolidated Statements of Operations | (39.6 | ) | (54.6 | ) | (94.2 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | (12.9 | ) | (224.5 | ) | (237.4 | ) | ||||||
Balance at December 31, 2011 | 334.9 | 593.6 | 928.5 | |||||||||
Deferrals of commissions and expenses | 79.1 | 8.1 | 87.2 | |||||||||
Amortization: | ||||||||||||
Amortization | (72.1 | ) | (152.6 | ) | (224.7 | ) | ||||||
Interest accrued(1) | 31.1 | 62.5 | 93.6 | |||||||||
Net amortization included in the Consolidated Statements of Operations | (41.0 | ) | (90.1 | ) | (131.1 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | (76.5 | ) | (130.2 | ) | (206.7 | ) | ||||||
Balance at December 31, 2012 | 296.5 | 381.4 | 677.9 | |||||||||
Deferrals of commissions and expenses | 71.3 | 7.2 | 78.5 | |||||||||
Amortization: | ||||||||||||
Amortization | (69.7 | ) | (83.6 | ) | (153.3 | ) | ||||||
Interest accrued(1) | 34 | 61 | 95 | |||||||||
Net amortization included in the Consolidated Statements of Operations | (35.7 | ) | (22.6 | ) | (58.3 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | 144.1 | 330.6 | 474.7 | |||||||||
Balance at December 31, 2013 | $ | 476.2 | $ | 696.6 | $ | 1,172.80 | ||||||
(1) | Interest accrued at the following rates for VOBA: 1.0% to 7.0% during 2013, 5.0% to 7.0% during 2012 and 5.0% to 7.0% during 2011. | |||||||||||
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination | ' | |||||||||||
The estimated amount of VOBA amortization expense, net of interest, is presented in the following table. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results and/or changes in best estimates of future results. | ||||||||||||
Year | Amount | |||||||||||
2014 | $ | 62.7 | ||||||||||
2015 | 52.5 | |||||||||||
2016 | 46.8 | |||||||||||
2017 | 42.6 | |||||||||||
2018 | 40.6 | |||||||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Insurance [Abstract] | ' | |||||||||||
Schedule Of Reinsurance Receivables | ' | |||||||||||
Reinsurance recoverable was comprised of the following as of the dates indicated: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Claims recoverable from reinsurers | $ | 2,016.70 | $ | 2,153.80 | ||||||||
Reinsured amounts due to reinsurers | (0.4 | ) | (0.3 | ) | ||||||||
Other | 0.3 | 0.2 | ||||||||||
Total | $ | 2,016.60 | $ | 2,153.70 | ||||||||
Effects of Reinsurance Ceded | ' | |||||||||||
Premiums were reduced by the following amounts for reinsurance ceded for the periods indicated. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Premiums: | ||||||||||||
Direct premiums | $ | 37.4 | $ | 36.2 | $ | 34 | ||||||
Reinsurance assumed | 0.1 | — | 0.1 | |||||||||
Reinsurance ceded | (0.2 | ) | (0.2 | ) | (0.2 | ) | ||||||
Net premiums | $ | 37.3 | $ | 36 | $ | 33.9 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Shareholder's equity included the following components of AOCI as of the dates indicated. | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fixed maturities, net of OTTI | $ | 820.9 | $ | 2,190.90 | $ | 1,518.70 | |||||||
Equity securities, available-for-sale | 15.5 | 13.5 | 13.1 | ||||||||||
Derivatives | 133 | 215.2 | 173.7 | ||||||||||
DAC/VOBA and Sales inducements adjustments on available-for-sale securities | (335.3 | ) | (810.6 | ) | (603.6 | ) | |||||||
Premium deficiency reserve adjustment | (82.4 | ) | (152.6 | ) | (64.8 | ) | |||||||
Unrealized capital gains (losses), before tax | 551.7 | 1,456.40 | 1,037.10 | ||||||||||
Deferred income tax asset (liability) | (66.1 | ) | (444.6 | ) | (302.3 | ) | |||||||
Unrealized capital gains (losses), after tax | 485.6 | 1,011.80 | 734.8 | ||||||||||
Pension and other postretirement benefits liability, net of tax | 9.8 | 11.2 | 12.7 | ||||||||||
AOCI | $ | 495.4 | $ | 1,023.00 | $ | 747.5 | |||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | ' | ||||||||||||
Changes in AOCI, including the reclassification adjustments recognized in the Consolidated Statements of Operations were as follows for the periods indicated: | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (1,372.1 | ) | $ | 542.1 | (4) | $ | (830.0 | ) | ||||
Equity securities | 2 | (0.7 | ) | 1.3 | |||||||||
Other | — | — | — | ||||||||||
OTTI | 2.7 | (0.9 | ) | 1.8 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (0.6 | ) | 0.2 | (0.4 | ) | ||||||||
DAC/VOBA and Sales inducements | 475.3 | (1) | (166.4 | ) | 308.9 | ||||||||
Premium deficiency reserve adjustment | 70.2 | (24.6 | ) | 45.6 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (822.5 | ) | 349.7 | (472.8 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | (79.5 | ) | (2) | 27.9 | (51.6 | ) | |||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | (2.7 | ) | 0.9 | (1.8 | ) | ||||||||
Change in unrealized gains/losses on derivatives | (82.2 | ) | 28.8 | (53.4 | ) | ||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | (2.2 | ) | (3) | 0.8 | (1.4 | ) | |||||||
Change in pension and other postretirement benefits liability | (2.2 | ) | 0.8 | (1.4 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (906.9 | ) | $ | 379.3 | $ | (527.6 | ) | |||||
(1) See "Note 5. Deferred Policy Acquisition Costs and Value of Business Acquired" for additional information. | |||||||||||||
(2) See "Note 3. Derivative Financial Instruments" for additional information. | |||||||||||||
(3) See "Note 11. Benefit Plans" for amounts reported in Net Periodic (Benefit) Costs. | |||||||||||||
(4) Amount includes $67.6 valuation allowance. See "Note 10. Income Taxes" for additional information. | |||||||||||||
Year Ended December 31, 2012 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | 727.7 | $ | (250.3 | ) | $ | 477.4 | ||||||
Equity securities | 0.4 | (0.1 | ) | 0.3 | |||||||||
Other | — | — | — | ||||||||||
OTTI | 10.6 | (3.7 | ) | 6.9 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (66.1 | ) | 23.1 | (43.0 | ) | ||||||||
DAC/VOBA and Sales inducements | (207.0 | ) | (1) | 72.5 | (134.5 | ) | |||||||
Premium deficiency reserve adjustment | (87.8 | ) | 30.7 | (57.1 | ) | ||||||||
Change in unrealized gains/losses on available-for-sale securities | 377.8 | (127.8 | ) | 250 | |||||||||
Derivatives: | |||||||||||||
Derivatives | 41.5 | (2) | (14.5 | ) | 27 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | — | — | — | ||||||||||
Change in unrealized gains/losses on derivatives | 41.5 | (14.5 | ) | 27 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | (2.2 | ) | (3) | 0.7 | (1.5 | ) | |||||||
Change in pension and other postretirement benefits liability | (2.2 | ) | 0.7 | (1.5 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | 417.1 | $ | (141.6 | ) | $ | 275.5 | ||||||
(1) See "Note 5. Deferred Policy Acquisition Costs and Value of Business Acquired" for additional information. | |||||||||||||
(2) See "Note 3. Derivative Financial Instruments" for additional information. | |||||||||||||
(3) See "Note 11. Benefit Plans" for amounts reported in Net Periodic (Benefit) Costs. | |||||||||||||
Year Ended December 31, 2011 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | 677.8 | $ | (213.4 | ) | (4) | $ | 464.4 | |||||
Equity securities | (7.9 | ) | 2.8 | (5.1 | ) | ||||||||
Other | (0.1 | ) | — | (0.1 | ) | ||||||||
OTTI | 21.3 | (7.5 | ) | 13.8 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (114.2 | ) | 40 | (74.2 | ) | ||||||||
DAC/VOBA and Sales inducements | (241.2 | ) | (1) | 84.4 | (156.8 | ) | |||||||
Premium deficiency reserve adjustment | (3.8 | ) | 1.3 | (2.5 | ) | ||||||||
Change in unrealized gains/losses on available-for-sale securities | 331.9 | (92.4 | ) | 239.5 | |||||||||
Derivatives: | |||||||||||||
Derivatives | 173.2 | (2) | (60.6 | ) | 112.6 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | — | — | — | ||||||||||
Change in unrealized gains/losses on derivatives | 173.2 | (60.6 | ) | 112.6 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | 7.6 | (3) | (2.7 | ) | 4.9 | ||||||||
Change in pension and other postretirement benefits liability | 7.6 | (2.7 | ) | 4.9 | |||||||||
Change in Other comprehensive income (loss) | $ | 512.7 | $ | (155.7 | ) | $ | 357 | ||||||
(1) See "Note 5. Deferred Policy Acquisition Costs and Value of Business Acquired" for additional information. | |||||||||||||
(2) See "Note 3. Derivative Financial Instruments" for additional information. | |||||||||||||
(3) See "Note 11. Benefit Plans" for amounts reported in Net Periodic (Benefit) Costs. | |||||||||||||
(4) Amount includes $22.0 valuation allowance. See "Note 10. Income Taxes" for additional information. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||
Income tax expense (benefit) consisted of the following for the periods indicated. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current tax expense (benefit): | ||||||||||||
Federal | $ | 144.6 | $ | 200.9 | $ | 60.3 | ||||||
Total current tax expense (benefit) | 144.6 | 200.9 | 60.3 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | 62.4 | (9.7 | ) | (65.3 | ) | |||||||
Total deferred tax expense (benefit) | 62.4 | (9.7 | ) | (65.3 | ) | |||||||
Total income tax expense (benefit) | $ | 207 | $ | 191.2 | $ | (5.0 | ) | |||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
Income taxes were different from the amount computed by applying the federal income tax rate to income (loss) before income taxes for the following reasons for the periods indicated: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income (loss) before income taxes | $ | 490.5 | $ | 516.6 | $ | 315.3 | ||||||
Tax rate | 35 | % | 35 | % | 35 | % | ||||||
Income tax expense (benefit) at federal statutory rate | 171.7 | 180.8 | 110.4 | |||||||||
Tax effect of: | ||||||||||||
Dividends received deduction | (26.6 | ) | (18.6 | ) | (37.0 | ) | ||||||
Valuation allowance | 67.6 | — | (87.0 | ) | ||||||||
Audit settlements | (0.3 | ) | (0.3 | ) | 3.7 | |||||||
Prior year tax | — | 28.1 | — | |||||||||
Other | (5.4 | ) | 1.2 | 4.9 | ||||||||
Income tax expense (benefit) | $ | 207 | $ | 191.2 | $ | (5.0 | ) | |||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of the dates indicated, are presented below. | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets | ||||||||||||
Insurance reserves | $ | 166.7 | $ | 255.4 | ||||||||
Investments | 231.8 | 87.5 | ||||||||||
Postemployment benefits | 67.3 | 50.6 | ||||||||||
Compensation and benefits | 35.8 | 44.4 | ||||||||||
Other assets | — | 24.5 | ||||||||||
Total gross assets before valuation allowance | 501.6 | 462.4 | ||||||||||
Less: Valuation allowance | 11.1 | 11.1 | ||||||||||
Assets, net of valuation allowance | 490.5 | 451.3 | ||||||||||
Deferred tax liabilities | ||||||||||||
Net unrealized investment (gains) losses | (310.5 | ) | (482.4 | ) | ||||||||
Deferred policy acquisition costs | (124.1 | ) | (143.8 | ) | ||||||||
Value of business acquired | (243.8 | ) | (332.2 | ) | ||||||||
Other liabilities | (2.2 | ) | — | |||||||||
Total gross liabilities | (680.6 | ) | (958.4 | ) | ||||||||
Net deferred income tax asset (liability) | $ | (190.1 | ) | $ | (507.1 | ) | ||||||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance at beginning of period | $ | — | $ | — | $ | 23 | ||||||
Additions for tax positions related to prior years | — | — | 4.5 | |||||||||
Reductions for tax positions related to prior years | — | — | (4.5 | ) | ||||||||
Reductions for settlements with taxing authorities | — | — | (23.0 | ) | ||||||||
Balance at end of period | $ | — | $ | — | $ | — | ||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | ' | |||||||||||
The following table summarizes the benefit obligations for the SERPs and Agents Non-Qualified Plan for the periods presented: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation, January 1 | $ | 97.2 | $ | 98.7 | ||||||||
Interest cost | 3.8 | 4.4 | ||||||||||
Benefits paid | (7.8 | ) | (9.3 | ) | ||||||||
Actuarial (gains) losses on obligation | (9.1 | ) | 3.4 | |||||||||
Benefit obligation, December 31 | $ | 84.1 | $ | 97.2 | ||||||||
Schedule of Amounts Recognized in Consolidated Balance Sheets | ' | |||||||||||
Amounts recognized on the Consolidated Balance Sheets consist of: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accrued benefit cost | $ | (84.1 | ) | $ | (97.2 | ) | ||||||
Accumulated other comprehensive income (loss): | ||||||||||||
Prior service cost (credit) | (6.1 | ) | (7.3 | ) | ||||||||
Net amount recognized | $ | (90.2 | ) | $ | (104.5 | ) | ||||||
Schedule of Weighted Average Assumptions Used | ' | |||||||||||
The weighted-average assumptions used in the measurement of the December 31, 2013 and 2012 benefit obligation for the SERPs and Agents Non-Qualified Plan, were as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Discount rate | 4.95 | % | 4.05 | % | ||||||||
Rate of compensation increase | 4 | % | 4 | % | ||||||||
The weighted-average assumptions used in calculating the net pension cost were as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Discount rate | 4.05 | % | 4.75 | % | 5.5 | % | ||||||
Rate of compensation increase | 4 | % | 4 | % | 4 | % | ||||||
Schedule of Net Periodic Benefit Costs | ' | |||||||||||
Net periodic benefit costs for the SERPs and Agents Non-Qualified Plan were as follows for the periods presented: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Interest cost | $ | 3.8 | $ | 4.4 | $ | 5 | ||||||
Net (gain) loss recognition | (9.1 | ) | 3.4 | 16 | ||||||||
Amortization of prior service cost (credit) | (1.2 | ) | (1.2 | ) | — | |||||||
The effect of any curtailment or settlement | — | — | 2.2 | |||||||||
Net periodic (benefit) cost | $ | (6.5 | ) | $ | 6.6 | $ | 23.2 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies Commitments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of Restricted Assets | ' | |||||||
The components of the fair value of the restricted assets were as follows as of the dates indicated: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Other fixed maturities-state deposits | $ | 13.1 | $ | 13.4 | ||||
Securities pledged(1) | 140.1 | 219.7 | ||||||
Total restricted assets | $ | 153.2 | $ | 233.1 | ||||
(1) Includes the fair value of loaned securities of $97.6 and $180.2 as of December 31, 2013 and 2012, respectively, which is included in Securities pledged on the Consolidated Balance Sheets. In addition, as of December 31, 2013 and 2012, the Company delivered securities as collateral of $42.5 and $39.5, respectively, which was included in Securities pledged on the Consolidated Balance Sheets. |
Business_Basis_of_Presentation3
Business, Basis of Presentation and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Oct. 29, 2013 | 7-May-13 | 7-May-13 | Oct. 29, 2013 | Dec. 31, 2009 | Dec. 31, 2009 | Dec. 31, 2009 | Mar. 25, 2014 |
segment | ING U.S. Inc | ING U.S. Inc | ING International | ING International | Accounting Standards Update 2010-26 | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Subsequent Event [Member] | |
Accounting Standards Update 2010-26 | Accounting Standards Update 2010-26 | ING U.S. Inc | |||||||
Item Effected [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering of shares by parent company and subsidiaries | ' | ' | 30,769,230 | 44,201,773 | ' | ' | ' | ' | ' |
Offering of shares by parent company and subsidiaries | ' | 37,950,000 | ' | ' | ' | ' | ' | ' | 30,475,000 |
Shares acquired from parent in buyback | ' | ' | ' | ' | ' | ' | ' | ' | 7,255,853 |
Ownership percentage by parent | ' | ' | ' | ' | ' | ' | ' | ' | 43.00% |
Implementation period of new brand name | '24 months | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership by affiliate of parent company | ' | ' | ' | ' | 57.00% | ' | ' | ' | ' |
Number of operating segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Rate required of collateral as a percent of market value of loans securities | 102.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative effect on retained earnings, before tax | ' | ' | ' | ' | ' | ' | $375.90 | $13.90 | ' |
Cumulative effect on retained earnings, tax | ' | ' | ' | ' | ' | $202.40 | ' | ' | ' |
Business_Basis_of_Presentation4
Business, Basis of Presentation and Significant Accounting Policies Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives | 'P40Y |
Furniture and fixtures | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives | 'P5Y |
Leasehold improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives | 'P10Y |
Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Lives | 'P3Y |
Business_Basis_of_Presentation5
Business, Basis of Presentation and Significant Accounting Policies Assumptions and Yields (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Variable Products | ' | ' | ' |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ' | ' | ' |
Long-term equity return assumptions rate | 9.00% | ' | ' |
Long-term equity return assumption, rate cap | 14.00% | ' | ' |
Variable products, assumptions, lookforward period | '5 years | ' | ' |
Future Policy Benefits and Claims Reserves | ' | ' | ' |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ' | ' | ' |
Future policy benefits, assumptions, discount rate, minimum | 3.00% | ' | ' |
Future policy benefits, assumptions, discount rate, maximum | 8.30% | ' | ' |
Investment Contract | ' | ' | ' |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ' | ' | ' |
Credit interest rates, maximum | 8.00% | 8.00% | 8.00% |
Investments_Fixed_Maturities_a
Investments Fixed Maturities and Equity Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Embedded Derivatives | $29 | [1] | $53.70 | [1] |
OTTI | 24.8 | [2] | 27.5 | [2] |
Securities pledged, Amortized Cost | 137.9 | 207.2 | ||
Equity securities, cost | 119.4 | 129.3 | ||
Equity securities, available-for-sale | 134.9 | 142.8 | ||
Total fixed maturities and equity securities, Amortized Cost | 19,837.40 | 19,132.70 | ||
Gross Unrealized Capital Gains | 1,199.60 | 2,244.50 | ||
Gross Unrealized Capital Losses | 365.4 | 52.6 | ||
Fair Value | 20,700.60 | 21,378.30 | ||
U.S. Treasuries | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 636.5 | 1,011.50 | ||
Fixed maturities, Gross Unrealized Capital Gains | 36.5 | 135.6 | ||
Fixed maturities, Gross Unrealized Capital Losses | 2.9 | 0.5 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 670.1 | 1,146.60 | ||
OTTI | 0 | [2] | 0 | [2] |
U.S. government agencies and authorities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 237.1 | 379.4 | ||
Fixed maturities, Gross Unrealized Capital Gains | 5 | 17.6 | ||
Fixed maturities, Gross Unrealized Capital Losses | 0 | 0 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 242.1 | 397 | ||
OTTI | 0 | [2] | 0 | [2] |
State, municipalities and political subdivisions | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 77.2 | 77.2 | ||
Fixed maturities, Gross Unrealized Capital Gains | 5.9 | 15.9 | ||
Fixed maturities, Gross Unrealized Capital Losses | 0.1 | 0 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 83 | 93.1 | ||
OTTI | 0 | [2] | 0 | [2] |
U.S. corporate securities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 10,326 | 9,438 | ||
Fixed maturities, Gross Unrealized Capital Gains | 581 | 1,147.40 | ||
Fixed maturities, Gross Unrealized Capital Losses | 238.8 | 11.1 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 10,668.20 | 10,574.30 | ||
OTTI | 1.9 | [2] | 2 | [2] |
Foreign | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 5,572.50 | [3] | 5,009.70 | [3] |
Fixed maturities, Gross Unrealized Capital Gains | 298.1 | [3] | 558.7 | [3] |
Fixed maturities, Gross Unrealized Capital Losses | 100 | [3] | 16.4 | [3] |
Embedded Derivatives | 0 | [1],[3] | 0 | [1],[3] |
Fixed maturities, including securities pledged, Fair Value | 5,770.60 | [3] | 5,552 | [3] |
OTTI | 0 | [2],[3] | 0 | [2],[3] |
Foreign securities government | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 422.9 | [3] | 439.7 | [3] |
Fixed maturities, Gross Unrealized Capital Gains | 25.2 | [3] | 57.4 | [3] |
Fixed maturities, Gross Unrealized Capital Losses | 16.5 | [3] | 1.1 | [3] |
Embedded Derivatives | 0 | [1],[3] | 0 | [1],[3] |
Fixed maturities, including securities pledged, Fair Value | 431.6 | [3] | 496 | [3] |
OTTI | 0 | [2],[3] | 0 | [2],[3] |
Foreign securities other | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 5,149.60 | [3] | 4,570 | [3] |
Fixed maturities, Gross Unrealized Capital Gains | 272.9 | [3] | 501.3 | [3] |
Fixed maturities, Gross Unrealized Capital Losses | 83.5 | [3] | 15.3 | [3] |
Embedded Derivatives | 0 | [1],[3] | 0 | [1],[3] |
Fixed maturities, including securities pledged, Fair Value | 5,339 | [3] | 5,056 | [3] |
OTTI | 0 | [2],[3] | 0 | [2],[3] |
Residential mortgage-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 1,916.30 | 2,070.40 | ||
Fixed maturities, Gross Unrealized Capital Gains | 177.1 | 251.5 | ||
Fixed maturities, Gross Unrealized Capital Losses | 22.7 | 18.1 | ||
Embedded Derivatives | 29 | [1] | 53.7 | [1] |
Fixed maturities, including securities pledged, Fair Value | 2,099.70 | 2,357.50 | ||
OTTI | 15.3 | [2] | 18 | [2] |
Residential mortgage-backed securities agency | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 1,638.20 | 1,679.50 | ||
Fixed maturities, Gross Unrealized Capital Gains | 121.9 | 181.5 | ||
Fixed maturities, Gross Unrealized Capital Losses | 17.9 | 3.4 | ||
Embedded Derivatives | 16.9 | [1] | 33.7 | [1] |
Fixed maturities, including securities pledged, Fair Value | 1,759.10 | 1,891.30 | ||
OTTI | 0.2 | [2] | 0.6 | [2] |
Residential mortgage-backed securities non-agency | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 278.1 | 390.9 | ||
Fixed maturities, Gross Unrealized Capital Gains | 55.2 | 70 | ||
Fixed maturities, Gross Unrealized Capital Losses | 4.8 | 14.7 | ||
Embedded Derivatives | 12.1 | [1] | 20 | [1] |
Fixed maturities, including securities pledged, Fair Value | 340.6 | 466.2 | ||
OTTI | 15.1 | [2] | 17.4 | [2] |
Commercial mortgage-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 624.5 | 748.7 | ||
Fixed maturities, Gross Unrealized Capital Gains | 68.1 | 90.6 | ||
Fixed maturities, Gross Unrealized Capital Losses | 0.9 | 0.2 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 691.7 | 839.1 | ||
OTTI | 4.4 | [2] | 4.4 | [2] |
Other asset-backed securities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 465.8 | 475.7 | ||
Fixed maturities, Gross Unrealized Capital Gains | 18 | 26.6 | ||
Fixed maturities, Gross Unrealized Capital Losses | 3.4 | 6.7 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 480.4 | 495.6 | ||
OTTI | 3.2 | [2] | 3.1 | [2] |
Fixed maturities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 19,855.90 | 19,210.60 | ||
Fixed maturities, Gross Unrealized Capital Gains | 1,189.70 | 2,243.90 | ||
Fixed maturities, Gross Unrealized Capital Losses | 368.8 | 53 | ||
Embedded Derivatives | 29 | [1] | 53.7 | [1] |
Fixed maturities, including securities pledged, Fair Value | 20,705.80 | 21,455.20 | ||
OTTI | 24.8 | [2] | 27.5 | [2] |
Securities pledged, Amortized Cost | 137.9 | 207.2 | ||
Securities pledged, Gross Unrealized Capital Gains | 5.9 | 13 | ||
Securities pledged, Gross Unrealized Capital Losses | 3.7 | 0.5 | ||
Securities pledged, Gross Unrealized Capital Losses | 140.1 | 219.7 | ||
Total fixed maturities, less securities pledged, Amortized Cost | 19,718 | 19,003.40 | ||
Total fixed maturities, less securities pledged, Gross Unrealized Capital Gains | 1,183.80 | 2,230.90 | ||
Total fixed maturities, less securities pledged, Gross Unrealized Capital Losses | 365.1 | 52.5 | ||
Total fixed maturities, less securities pledged, Fair Value | 20,565.70 | 21,235.50 | ||
Equity securities, available-for-sale | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
OTTI | 0 | [2] | 0 | [2] |
Equity securities, cost | 119.4 | 129.3 | ||
Equity securities, Gross Unrealized Capital Gains | 15.8 | 13.6 | ||
Equity securities, Gross Unrealized Capital Losses | 0.3 | 0.1 | ||
Equity securities, available-for-sale | $134.90 | $142.80 | ||
[1] | Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | |||
[2] | Represents OTTI reported as a component of Other comprehensive income. | |||
[3] | Primarily U.S. dollar denominated. |
Investments_Debt_Maturities_De
Investments Debt Maturities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Mortgage-backed securities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Without single maturity date, Amortized Cost | $2,540.80 | ' |
Without single maturity date, Fair Value | 2,791.40 | ' |
Percentage collateralized of mortgage backed securities including interest-only strip or principal-only strip | 50.40% | 41.80% |
Other asset-backed securities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Without single maturity date, Amortized Cost | 465.8 | ' |
Without single maturity date, Fair Value | 480.4 | ' |
Fixed maturities, including securities pledged, Amortized Cost | 465.8 | 475.7 |
Fixed maturities, including securities pledged, Fair Value | 480.4 | 495.6 |
Fixed maturities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
One year or less, Amortized Cost | 612.5 | ' |
One year or less, Fair Value | 629.7 | ' |
After one year through five years, Amortized Cost | 3,846.60 | ' |
After one year through five years, Fair Value | 4,103.60 | ' |
After five years through ten years, Amortized Cost | 6,488.80 | ' |
After five years through ten years, Fair Value | 6,646.50 | ' |
After ten years, Amortized Cost | 5,901.40 | ' |
After ten years, Fair Value | 6,054.20 | ' |
Fixed maturities, including securities pledged, Amortized Cost | 19,855.90 | 19,210.60 |
Fixed maturities, including securities pledged, Fair Value | $20,705.80 | 21,455.20 |
Investments_Composition_of_US_
Investments Composition of US and Foreign Corporate Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Communications | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | $1,315.90 | $1,154.10 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 81.5 | 161.4 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 36.8 | 0.9 |
Fixed maturities, including securities pledged, Fair Value | 1,360.60 | 1,314.60 |
Financial | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 2,114.70 | 1,859.30 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 166.9 | 240.1 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 20.2 | 10.9 |
Fixed maturities, including securities pledged, Fair Value | 2,261.40 | 2,088.50 |
Industrial and Other Companies | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 8,878.50 | 7,883.10 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 423.5 | 850.9 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 213.1 | 6.9 |
Fixed maturities, including securities pledged, Fair Value | 9,088.90 | 8,727.10 |
Utilities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 2,726.50 | 2,715.40 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 159.5 | 349.8 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 42.3 | 7.3 |
Fixed maturities, including securities pledged, Fair Value | 2,843.70 | 3,057.90 |
Transportation | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 440 | 396.1 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 22.5 | 46.5 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 9.9 | 0.4 |
Fixed maturities, including securities pledged, Fair Value | 452.6 | 442.2 |
U.S. and Foreign Corporate Securities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 15,475.60 | 14,008 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 853.9 | 1,648.70 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 322.3 | 26.4 |
Fixed maturities, including securities pledged, Fair Value | $16,007.20 | $15,630.30 |
Investments_Repurchase_Agreeme
Investments Repurchase Agreement, Securities Lending, VIEs (Details) (USD $) | 3 Months Ended | 5 Months Ended | ||||||||||
In Millions, unless otherwise specified | Jun. 30, 2012 | Oct. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 |
tranche | Collateralized loan obligations | Collateralized loan obligations | Securities pledged as collateral | Securities pledged as collateral | Payables under securities loan agreement, including collateral held | Payables under securities loan agreement, including collateral held | Variable Interest Entity, Sold | Notes Receivable | ||||
Not a primary beneficiary of the VIE | Not a primary beneficiary of the VIE | Not a primary beneficiary of the VIE | ||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of loaned securities | ' | ' | $97.60 | $180.20 | ' | ' | $97.60 | $180.20 | ' | ' | ' | ' |
Securities received as collateral | ' | ' | 102.7 | 186.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Payables under securities loan agreement, including collateral held | ' | ' | 264.4 | 353.2 | ' | ' | ' | ' | 102.7 | 186.1 | ' | ' |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of VIE | ' | ' | ' | ' | 1 | 1.3 | ' | ' | ' | ' | 331.9 | ' |
Gain (loss) on sale of investments | 38.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale transaction, number of tranches | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note included in consideration received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23 |
Investments_Unrealized_Capital
Investments Unrealized Capital Losses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Fair Value | $1,955.10 | $1,038.40 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 34.7 | 13.7 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 3,754.50 | 39.1 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 283.2 | 1.7 |
More Than Twelve Months Below Amortized Cost, Fair Value | 444.9 | 306.2 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 50.9 | 37.6 |
Total, Fair Value | 6,154.50 | 1,383.70 |
Total Unrealized Capital Losses | 368.8 | 53 |
Average market value of fixed maturities with unrealized capital losses aged more than twelve months | 89.70% | 89.10% |
U.S. Treasuries | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Fair Value | 124.4 | 300 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 2.1 | 0.5 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 34.2 | 0 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.8 | 0 |
More Than Twelve Months Below Amortized Cost, Fair Value | 0 | 0 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0 |
Total, Fair Value | 158.6 | 300 |
Total Unrealized Capital Losses | 2.9 | 0.5 |
U.S. corporate, state and municipalities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Fair Value | 1,002.80 | 479.8 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 22.9 | 6.8 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 2,413.20 | 22.5 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 183.8 | 0.9 |
More Than Twelve Months Below Amortized Cost, Fair Value | 236.9 | 49.4 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 32.2 | 3.4 |
Total, Fair Value | 3,652.90 | 551.7 |
Total Unrealized Capital Losses | 238.9 | 11.1 |
Foreign | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Fair Value | 448.8 | 166.8 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 5.7 | 4.7 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 1,063.90 | 7.8 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 86.4 | 0.5 |
More Than Twelve Months Below Amortized Cost, Fair Value | 76.2 | 87.7 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 7.9 | 11.2 |
Total, Fair Value | 1,588.90 | 262.3 |
Total Unrealized Capital Losses | 100 | 16.4 |
Residential mortgage-backed | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Fair Value | 262.3 | 68.7 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 2.9 | 1.6 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 212.9 | 7.2 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 12 | 0.3 |
More Than Twelve Months Below Amortized Cost, Fair Value | 105.8 | 132.4 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 7.8 | 16.2 |
Total, Fair Value | 581 | 208.3 |
Total Unrealized Capital Losses | 22.7 | 18.1 |
Commercial mortgage-backed | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Fair Value | 77.9 | 7.5 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.9 | 0.1 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 0 | 1.6 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 0 |
More Than Twelve Months Below Amortized Cost, Fair Value | 0 | 2.5 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0.1 |
Total, Fair Value | 77.9 | 11.6 |
Total Unrealized Capital Losses | 0.9 | 0.2 |
Other asset-backed | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Fair Value | 38.9 | 15.6 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.2 | 0 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 30.3 | 0 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.2 | 0 |
More Than Twelve Months Below Amortized Cost, Fair Value | 26 | 34.2 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 3 | 6.7 |
Total, Fair Value | 95.2 | 49.8 |
Total Unrealized Capital Losses | $3.40 | $6.70 |
Investments_Unrealized_Capital1
Investments Unrealized Capital Losses 1 (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | $34.70 | $13.70 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 283.2 | 1.7 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 50.9 | 37.6 |
Total Unrealized Capital Losses | 368.8 | 53 |
Fair value decline below amortized cost less than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six months or less below amortized cost, Amortized Cost | 2,054.40 | 1,110.80 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 45.3 | 19.3 |
Six months or less below amortized cost, Number of Securities | 322 | 141 |
More than six months and twelve months or less below amortized cost, Amortized Cost | 3,991.40 | 49.5 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 272.6 | 2.6 |
More than six months and twelve months or less below amortized cost, Number of Securities | 502 | 31 |
More than twelve months below amortized cost, Amortized Cost | 420.4 | 198.1 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 37.3 | 6.2 |
More than twelve months below amortized cost, Number of Securities | 137 | 99 |
Total Amortized Cost | 6,466.20 | 1,358.40 |
Total Unrealized Capital Losses | 355.2 | 28.1 |
Total Number of Securities | 961 | 271 |
Fair value decline below amortized cost greater than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six months or less below amortized cost, Amortized Cost | 24.1 | 15.2 |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 5.3 | 3.9 |
Six months or less below amortized cost, Number of Securities | 7 | 10 |
More than six months and twelve months or less below amortized cost, Amortized Cost | 23.5 | 1.5 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 5.8 | 0.4 |
More than six months and twelve months or less below amortized cost, Number of Securities | 3 | 2 |
More than twelve months below amortized cost, Amortized Cost | 9.5 | 61.6 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 2.5 | 20.6 |
More than twelve months below amortized cost, Number of Securities | 8 | 28 |
Total Amortized Cost | 57.1 | 78.3 |
Total Unrealized Capital Losses | 13.6 | 24.9 |
Total Number of Securities | 18 | 40 |
U.S. Treasuries | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 2.1 | 0.5 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.8 | 0 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0 |
Total Unrealized Capital Losses | 2.9 | 0.5 |
U.S. Treasuries | Fair value decline below amortized cost less than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 161.5 | 300.5 |
Total Unrealized Capital Losses | 2.9 | 0.5 |
Total Number of Securities | 4 | 2 |
U.S. Treasuries | Fair value decline below amortized cost greater than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 0 | 0 |
Total Unrealized Capital Losses | 0 | 0 |
Total Number of Securities | 0 | 0 |
U.S. corporate, state and municipalities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 22.9 | 6.8 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 183.8 | 0.9 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 32.2 | 3.4 |
Total Unrealized Capital Losses | 238.9 | 11.1 |
U.S. corporate, state and municipalities | Fair value decline below amortized cost less than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 3,869 | 558.1 |
Total Unrealized Capital Losses | 233.2 | 9.1 |
Total Number of Securities | 519 | 82 |
U.S. corporate, state and municipalities | Fair value decline below amortized cost greater than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 22.8 | 4.7 |
Total Unrealized Capital Losses | 5.7 | 2 |
Total Number of Securities | 2 | 2 |
Foreign | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 5.7 | 4.7 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 86.4 | 0.5 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 7.9 | 11.2 |
Total Unrealized Capital Losses | 100 | 16.4 |
Foreign | Fair value decline below amortized cost less than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 1,665.80 | 242.7 |
Total Unrealized Capital Losses | 95 | 5.7 |
Total Number of Securities | 239 | 38 |
Foreign | Fair value decline below amortized cost greater than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 23.1 | 36 |
Total Unrealized Capital Losses | 5 | 10.7 |
Total Number of Securities | 5 | 8 |
Residential mortgage-backed | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 2.9 | 1.6 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 12 | 0.3 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 7.8 | 16.2 |
Total Unrealized Capital Losses | 22.7 | 18.1 |
Residential mortgage-backed | Fair value decline below amortized cost less than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 596.9 | 201.2 |
Total Unrealized Capital Losses | 21 | 10.2 |
Total Number of Securities | 162 | 124 |
Residential mortgage-backed | Fair value decline below amortized cost greater than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 6.8 | 25.2 |
Total Unrealized Capital Losses | 1.7 | 7.9 |
Total Number of Securities | 7 | 24 |
Commercial mortgage-backed | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.9 | 0.1 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 0 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0.1 |
Total Unrealized Capital Losses | 0.9 | 0.2 |
Commercial mortgage-backed | Fair value decline below amortized cost less than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 78.8 | 11.8 |
Total Unrealized Capital Losses | 0.9 | 0.2 |
Total Number of Securities | 12 | 8 |
Commercial mortgage-backed | Fair value decline below amortized cost greater than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 0 | 0 |
Total Unrealized Capital Losses | 0 | 0 |
Total Number of Securities | 0 | 0 |
Other asset-backed | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.2 | 0 |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.2 | 0 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 3 | 6.7 |
Total Unrealized Capital Losses | 3.4 | 6.7 |
Other asset-backed | Fair value decline below amortized cost less than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 94.2 | 44.1 |
Total Unrealized Capital Losses | 2.2 | 2.4 |
Total Number of Securities | 25 | 17 |
Other asset-backed | Fair value decline below amortized cost greater than 20% | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Total Amortized Cost | 4.4 | 12.4 |
Total Unrealized Capital Losses | $1.20 | $4.30 |
Total Number of Securities | 4 | 6 |
Investments_Troubled_Debt_Rest
Investments Troubled Debt Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
loan | loan | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled debt restructurings post-modification carrying value | ' | $39.40 | ' |
Troubled debt restructured loans | 37.5 | 37.5 | 0 |
Cross collateralized, cross defaulted | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of troubled debt restructuring contracts | ' | 20 | ' |
Commercial mortgage loans | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of troubled debt restructuring contracts | ' | 0 | 20 |
Troubled debt restructurings pre-modification carrying value | ' | 39.4 | ' |
Amount of principal repaid on troubled debt restructurings | $1.90 | ' | ' |
Investments_Mortgage_Loans_Det
Investments Mortgage Loans (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ||
Maximum loan to value ratio generally allowed | 75.00% | ' | ' | ||
Commercial mortgage loans | $3,397,300,000 | [1] | $2,874,000,000 | [1] | ' |
Collective valuation allowance | -1,200,000 | -1,300,000 | ' | ||
Total net commercial mortgage loans | 3,396,100,000 | 2,872,700,000 | ' | ||
Impairments on mortgage loans | $0 | $0 | $0 | ||
[1] | Balances do not include allowance for mortgage loan credit losses. |
Investments_Allowance_for_Loan
Investments Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Collective valuation allowance for losses, beginning of period | $1.30 | $1.30 |
Addition to/(release of) allowance for losses | -0.1 | 0 |
Collective valuation allowance for losses, end of period | $1.20 | $1.30 |
Investments_Impaired_Loans_Det
Investments Impaired Loans (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | |||
Impaired loans with allowances for losses | $0 | $0 | ' | |||
Impaired loans without valuation allowances | 42.9 | 5.6 | ' | |||
Subtotal | 42.9 | 5.6 | ' | |||
Less: Allowances for losses on impaired loans | 0 | 0 | ' | |||
Impaired loans, net | 42.9 | 5.6 | ' | |||
Unpaid principal balance of impaired loans | 44.4 | 7.1 | ' | |||
Impaired loans, average investment during the period (amortized cost) | 24.2 | [1] | 5.7 | [1] | 7.7 | [1] |
Interest income recognized on impaired loans, on an accrual basis | 1.4 | [1] | 0.4 | [1] | 0.6 | [1] |
Interest income recognized on impaired loans, on a cash basis | 1.4 | [1] | 0.4 | [1] | 0.6 | [1] |
Interest income recognized on restructured loans, on an accrual basis | $1 | $0 | $0 | |||
[1] | Includes amounts for Troubled debt restructured loans |
Investments_Loans_by_Loan_to_V
Investments Loans by Loan to Value (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Benchmark loan to value ratio, greater than indicates unpaid loan amount exceeds underlying collateral | 100.00% | ' | ||
Total Commercial mortgage loans | $3,397.30 | [1] | $2,874 | [1] |
0% - 50% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 0.00% | ' | ||
Loan to Value Ratio, maximum | 50.00% | ' | ||
Commercial mortgage loans | 495.7 | [1] | 501.3 | [1] |
50% - 60% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 50.00% | ' | ||
Loan to Value Ratio, maximum | 60.00% | ' | ||
Commercial mortgage loans | 894.5 | [1] | 768.9 | [1] |
60% - 70% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 60.00% | ' | ||
Loan to Value Ratio, maximum | 70.00% | ' | ||
Commercial mortgage loans | 1,879.50 | [1] | 1,491.60 | [1] |
70% - 80% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 70.00% | ' | ||
Loan to Value Ratio, maximum | 80.00% | ' | ||
Commercial mortgage loans | 114.9 | [1] | 96.4 | [1] |
80% and above | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 80.00% | ' | ||
Commercial mortgage loans | $12.70 | [1] | $15.80 | [1] |
[1] | Balances do not include allowance for mortgage loan credit losses. |
Investments_Loans_by_Debt_Serv
Investments Loans by Debt Service Coverage Ratio (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Benchmark debt service coverage ratio, less than indicates property's operations income is less than debt payments | 100.00% | ' | ||
Commercial mortgage loans secured by land or construction loans | $0.10 | $0 | ||
Total Commercial mortgage loans | 3,397.30 | [1] | 2,874 | [1] |
Greater than 1.5x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 150.00% | ' | ||
Commercial mortgage loans | 2,388.50 | [1] | 2,114.40 | [1] |
1.25x - 1.5x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 125.00% | ' | ||
Debt Service Coverage Ratio, maximum | 150.00% | ' | ||
Commercial mortgage loans | 542.4 | [1] | 390.5 | [1] |
1.0x - 1.25x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 100.00% | ' | ||
Debt Service Coverage Ratio, maximum | 125.00% | ' | ||
Commercial mortgage loans | 275.8 | [1] | 293.1 | [1] |
Less than 1.0x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 0.00% | ' | ||
Debt Service Coverage Ratio, maximum | 100.00% | ' | ||
Commercial mortgage loans | $190.50 | [1] | $76 | [1] |
[1] | Balances do not include allowance for mortgage loan credit losses. |
Loans_by_US_Region_Details
Loans by U.S. Region (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 100.00% | [1] | 100.00% | [1] |
Loans by region percentage of total loans | 100.00% | [1] | 100.00% | [1] |
Total Commercial mortgage loans | $3,397.30 | [1] | $2,874 | [1] |
Pacific | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 22.30% | [1] | 19.60% | [1] |
Total Commercial mortgage loans | 752.8 | [1] | 564.1 | [1] |
South Atlantic | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 20.80% | [1] | 19.50% | [1] |
Total Commercial mortgage loans | 707.8 | [1] | 561 | [1] |
Middle Atlantic | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 12.10% | [1] | 11.60% | [1] |
Total Commercial mortgage loans | 411.4 | [1] | 332.7 | [1] |
East North Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 11.30% | [1] | 11.80% | [1] |
Total Commercial mortgage loans | 383.1 | [1] | 337.8 | [1] |
West South Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 13.70% | [1] | 16.00% | [1] |
Total Commercial mortgage loans | 467.1 | [1] | 460.4 | [1] |
Mountain | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 7.80% | [1] | 7.50% | [1] |
Total Commercial mortgage loans | 263.9 | [1] | 214.5 | [1] |
New England | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 3.40% | [1] | 4.10% | [1] |
Total Commercial mortgage loans | 116.7 | [1] | 119.1 | [1] |
West North Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 6.60% | [1] | 7.10% | [1] |
Total Commercial mortgage loans | 224.9 | [1] | 205.2 | [1] |
East South Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 2.00% | [1] | 2.80% | [1] |
Total Commercial mortgage loans | $69.60 | [1] | $79.20 | [1] |
[1] | Balances do not include allowance for mortgage loan credit losses. |
Investments_Loans_by_Property_
Investments Loans by Property Type (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | $3,397.30 | [1] | $2,874 | [1] |
Loans by property type percentage of total loans | 100.00% | [1] | 100.00% | [1] |
Industrial | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 972.6 | [1] | 1,035.20 | [1] |
Loans by property type percentage of total loans | 28.60% | [1] | 36.00% | [1] |
Retail | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 1,082.10 | [1] | 824 | [1] |
Loans by property type percentage of total loans | 31.90% | [1] | 28.70% | [1] |
Office | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 462.1 | [1] | 427 | [1] |
Loans by property type percentage of total loans | 13.60% | [1] | 14.80% | [1] |
Apartments | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 445.2 | [1] | 298.7 | [1] |
Loans by property type percentage of total loans | 13.10% | [1] | 10.40% | [1] |
Hotel/Motel | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 182.8 | [1] | 92.1 | [1] |
Loans by property type percentage of total loans | 5.40% | [1] | 3.20% | [1] |
Mixed Use | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 70.9 | [1] | 34.2 | [1] |
Loans by property type percentage of total loans | 2.10% | [1] | 1.20% | [1] |
Other | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Total Commercial mortgage loans | $181.60 | [1] | $162.80 | [1] |
Loans by property type percentage of total loans | 5.30% | [1] | 5.70% | [1] |
[1] | Balances do not include allowance for mortgage loan credit losses. |
Investments_Mortgages_by_Year_
Investments Mortgages by Year of Origination (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | $3,397.30 | [1] | $2,874 | [1] |
Year of Origination 2013 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 785.2 | [1] | 0 | [1] |
Year of Origination 2012 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 908.1 | [1] | 939 | [1] |
Year of Origination 2011 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 792.8 | [1] | 836.9 | [1] |
Year of Origination 2010 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 121.1 | [1] | 124 | [1] |
Year of Origination 2009 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 68.4 | [1] | 73 | [1] |
Year of Origination 2008 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | 89 | [1] | 119 | [1] |
Year of Origination 2007 and Prior | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Total Commercial mortgage loans | $632.70 | [1] | $782.10 | [1] |
[1] | Balances do not include allowance for mortgage loan credit losses. |
Investments_OTTI_Details
Investments OTTI (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
securities | securities | securities | |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Impairment | $5.90 | $10.90 | $107.30 |
No. of Securities | 42 | 43 | 166 |
U.S. corporate | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Impairment | 0 | 2.9 | 20.4 |
No. of Securities | 0 | 3 | 17 |
Foreign | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Impairment | 1.8 | 0.8 | 27.8 |
No. of Securities | 1 | 3 | 50 |
Residential mortgage-backed | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Impairment | 3.4 | 6 | 8.2 |
No. of Securities | 35 | 33 | 38 |
Commercial mortgage-backed | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Impairment | 0.3 | 0 | 28.2 |
No. of Securities | 3 | 0 | 8 |
Other asset-backed securities | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Impairment | 0.3 | 1.2 | 22.7 |
No. of Securities | 2 | 4 | 53 |
Equity securities | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Impairment | 0.1 | 0 | 0 |
No. of Securities | 1 | 0 | 0 |
Intent related impairment | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
No. of Securities | 9 | 8 | 128 |
Write-down related to intent impairments | 1.1 | 1.8 | 89.7 |
Intent related impairment | U.S. corporate | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
No. of Securities | 0 | 1 | 17 |
Write-down related to intent impairments | 0 | 0.2 | 20.4 |
Intent related impairment | Foreign | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
No. of Securities | 0 | 3 | 46 |
Write-down related to intent impairments | 0 | 0.8 | 23.7 |
Intent related impairment | Residential mortgage-backed | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
No. of Securities | 6 | 3 | 7 |
Write-down related to intent impairments | 0.8 | 0.7 | 1.6 |
Intent related impairment | Commercial mortgage-backed | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
No. of Securities | 3 | 0 | 8 |
Write-down related to intent impairments | 0.3 | 0 | 22.9 |
Intent related impairment | Other asset-backed securities | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
No. of Securities | 0 | 1 | 50 |
Write-down related to intent impairments | 0 | 0.1 | 21.1 |
Credit related impairment | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Write-downs related to credit impairments | $4.80 | $9.10 | $17.60 |
Investments_OTTI_OCI_Details
Investments OTTI OCI (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other than Temporary Impairment, Recognized in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Balance, beginning | $20 | $19.40 | $50.70 |
Additional Credit Impairments [Abstract] | ' | ' | ' |
On securities not previously impaired | 1.1 | 1.5 | 0.9 |
On securities previously impaired | 1.8 | 3.7 | 6.7 |
Reductions [Abstract] | ' | ' | ' |
Securities intent impairments | 0 | 0 | -8.7 |
Securities sold, matured, prepaid, or paid down | -3.3 | -4.6 | -30.2 |
Balance, ending | $19.60 | $20 | $19.40 |
Investments_Net_Investment_Inc
Investments Net Investment Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | $1,415.90 | $1,394.90 | $1,465.90 |
Less: investment expense | 48.9 | 46.1 | 45 |
Net investment income | 1,367 | 1,348.80 | 1,420.90 |
Fixed maturities | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 1,199.40 | 1,222.50 | 1,224.20 |
Investments in fixed maturities not producing income | ' | 0 | ' |
Equity securities, available-for-sale | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 2.8 | 7.5 | 13.6 |
Mortgage loans on real estate | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 157.1 | 143.5 | 118.1 |
Policy loans | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 13.1 | 13.2 | 13.7 |
Short-term investments and cash equivalents | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | 0.9 | 1.4 | 0.8 |
Other | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Gross investment income | $42.60 | $6.80 | $95.50 |
Investments_Net_Realized_Capit
Investments Net Realized Capital Gains (Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | ($142.20) | $59.30 | ($215.80) |
After-tax net realized capital gains (losses), after tax | -160 | 38.5 | -53.3 |
Proceeds from sale of investments | ' | ' | ' |
Proceeds on sales | 1,830 | 2,887.10 | 5,596.30 |
Gross gains | 23.8 | 88.7 | 249 |
Gross losses | 22.1 | 12.7 | 33.6 |
Derivatives | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | -72.1 | 1.3 | -64.3 |
Fixed maturities | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | -24.7 | -5.5 | 4.9 |
Product guarantees | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | 105.5 | 120.4 | -216.1 |
Other investments | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | 0.2 | 0 | 0.3 |
Fixed maturities, available-for-sale, including securities pledged | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | 0.3 | 67.5 | 112.6 |
Fixed maturities, at fair value using the fair value option | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | -151.5 | -124.2 | -60.6 |
Equity securities, available-for-sale | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' |
Realized capital gains (losses) | $0.10 | ($0.20) | $7.40 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments Notional and Fair Values (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | $493.40 | $566.40 | ||
Liability Fair Value | 185.7 | 469.2 | ||
Fixed maturities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 29 | 53.7 | ||
Liability Fair Value | 0 | 0 | ||
Fixed indexed annuities (FIA) | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 0 | 0 | ||
Liability Fair Value | 23.1 | 122.4 | ||
Reinsurance Agreements | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 0 | 0 | ||
Liability Fair Value | -54 | 0 | ||
Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 22,206 | 19,131.10 | ||
Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 197.1 | 161.6 | ||
Equity contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 0 | 0 | ||
Credit contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 384 | 347.5 | ||
Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 763.3 | [1] | 1,000 | [1] |
Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 51.2 | [1] | 0 | [1] |
Not Designated as Hedging Instrument | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 21,442.70 | [1],[2] | 18,131.10 | [1],[2] |
Not Designated as Hedging Instrument | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 145.9 | [1] | 161.6 | [1] |
Not Designated as Hedging Instrument | Equity contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 9.1 | [1] | 14.5 | [1] |
Not Designated as Hedging Instrument | Credit contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 384 | [1] | 347.5 | [1] |
Maximum potential future net exposure on sale of credit default swaps | 384 | 329 | ||
Not Designated as Hedging Instrument | Interest rate caps | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 11,800 | 4,500 | ||
Derivatives | Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 81 | [1] | 215.4 | [1] |
Liability Fair Value | 0.2 | [1] | 0 | [1] |
Derivatives | Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 2.2 | [1] | 0 | [1] |
Liability Fair Value | 0.6 | [1] | 0 | [1] |
Derivatives | Not Designated as Hedging Instrument | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 367.6 | [1],[2] | 292.9 | [1],[2] |
Liability Fair Value | 206.2 | [1],[2] | 328.5 | [1],[2] |
Derivatives | Not Designated as Hedging Instrument | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 5.5 | [1] | 0.4 | [1] |
Liability Fair Value | 9.6 | [1] | 18.3 | [1] |
Derivatives | Not Designated as Hedging Instrument | Equity contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 0 | [1],[3] | 0.4 | [1] |
Liability Fair Value | 0 | [1] | 0 | [1] |
Derivatives | Not Designated as Hedging Instrument | Credit contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 8.1 | [1] | 3.6 | [1] |
Liability Fair Value | 0 | [1] | 0 | [1] |
Derivatives | Not Designated as Hedging Instrument | Managed custody guarantees | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 0 | [1] | 0 | [1] |
Liability Fair Value | 0 | [1] | 0 | [1] |
Derivatives | Not Designated as Hedging Instrument | Interest rate caps | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 162.5 | 17.7 | ||
Liability Fair Value | $29.70 | $0.60 | ||
[1] | Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value | |||
[2] | As of DecemberB 31, 2013, includes a notional amount, asset fair value and liability fair value for interest rate caps of $11.8 billion, $162.5 and $29.7, respectively. As of DecemberB 31, 2012, includes a notional amount, asset fair value and liability fair value for interest rate caps of $4.5 billion, $17.7 and $0.6, respectively. | |||
[3] | Less than $0.1. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments Offsetting Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Asset Fair Value | $464.40 | $512.30 | ||
Liability Fair Value | 216.6 | 346.8 | ||
Counterparty netting, Assets | -201.3 | [1] | -291.4 | [1] |
Counterparty netting, Liabilities | -201.3 | [1] | -291.4 | [1] |
Cash collateral netting, Assets | -134 | [1] | -167.1 | [1] |
Cash collateral netting, Liabilities | -5.4 | [1] | 0 | [1] |
Securities collateral netting, Assets | -15.9 | [1] | -3.1 | [1] |
Securities collateral netting, Liabilities | -4.8 | [1] | -35.8 | [1] |
Net receivables | 113.2 | 50.7 | ||
Net payables | 5.1 | 19.6 | ||
Credit contracts | ' | ' | ||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Notional Amount | 384 | 347.5 | ||
Asset Fair Value | 8.1 | 3.6 | ||
Liability Fair Value | 0 | 0 | ||
Equity contract | ' | ' | ||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Notional Amount | 0 | 0 | ||
Asset Fair Value | 0 | 0 | ||
Liability Fair Value | 0 | 0 | ||
Foreign exchange contracts | ' | ' | ||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Notional Amount | 197.1 | 161.6 | ||
Asset Fair Value | 7.7 | 0.4 | ||
Liability Fair Value | 10.2 | 18.3 | ||
Interest rate contracts | ' | ' | ||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Notional Amount | 22,206 | 19,131.10 | ||
Asset Fair Value | 448.6 | 508.3 | ||
Liability Fair Value | $206.40 | $328.50 | ||
[1] | Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting rules. |
Derivative_Financial_Instrumen4
Derivative Financial Instruments Net Realized Gains (Losses) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Derivative assets | $493.40 | $566.40 | ' | |||
Derivatives liabilities | 185.7 | 469.2 | ' | |||
Net realized gains (losses) on derivatives | 62.7 | 116.2 | -275.5 | |||
Fixed indexed annuities (FIA) | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Derivative assets | 0 | 0 | ' | |||
Derivatives liabilities | 23.1 | 122.4 | ' | |||
Reinsurance Agreements | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Derivative assets | 0 | 0 | ' | |||
Derivatives liabilities | -54 | 0 | ' | |||
Other Net Realized Capital Gains (Losses) | Within fixed maturity investments | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | -24.7 | [1] | -5.5 | [1] | 4.9 | [1] |
Other Net Realized Capital Gains (Losses) | Fixed indexed annuities (FIA) | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | 105.3 | [1] | 119.3 | [1] | -217.2 | [1] |
Other Net Realized Capital Gains (Losses) | Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | 0.2 | [2] | 0 | [2] | 0 | [2] |
Other Net Realized Capital Gains (Losses) | Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | 0.1 | [2] | 0 | [2] | 0 | [2] |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Interest rate contracts | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | -92.8 | [1] | -18.9 | [1] | -58.3 | [1] |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Foreign exchange contracts | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | 10 | [1] | 6.9 | [1] | -0.7 | [1] |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Equity contract | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | 3.4 | [1] | 2 | [1] | -0.5 | [1] |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Credit contracts | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | 7 | [1] | 11.3 | [1] | -4.8 | [1] |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Managed custody guarantees | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | 0.2 | [1] | 1.1 | [1] | 1.1 | [1] |
Interest Credited and Other Benefits to Contract Owners | Reinsurance Agreements | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | |||
Net realized gains (losses) on derivatives | $54 | [3] | $0 | [3] | $0 | [3] |
[1] | Changes in value are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | |||||
[2] | Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Changes in fair value upon disposal for effective cash flow hedges are amortized through Net investment income and the ineffective portion is recorded in the Other net realized capital gains (losses) in the Consolidated Statements of Operations. For the years ended DecemberB 31, 2013, 2012 and 2011, ineffective amounts were immaterial. | |||||
[3] | Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Consolidated Statements of Operations. |
Derivative_Financial_Instrumen5
Derivative Financial Instruments Credit Default Swaps (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Securities pledged as collateral | $140.10 | $219.70 | ||
Asset Fair Value | 493.4 | 566.4 | ||
Liability Fair Value | 185.7 | 469.2 | ||
Payables under securities loan agreement, including collateral held | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Cash collateral held for securities loan agreement | 127.4 | 167 | ||
Credit contracts | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Maximum potential future net exposure on sale of credit default swaps | 384 | 329 | ||
Term of derivative | '5 years | ' | ||
Credit contracts | Not Designated as Hedging Instrument | Derivatives | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 8.1 | [1] | 3.6 | [1] |
Liability Fair Value | 0 | [1] | 0 | [1] |
Over the Counter [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Securities pledged as collateral | 1.2 | ' | ||
Fixed maturities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Securities pledged as collateral | $42.50 | $39.50 | ||
[1] | Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Vaue Measurement (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | $134,900,000 | $142,800,000 | ||
Derivatives | 464,400,000 | 512,700,000 | ||
Liabilities: | ' | ' | ||
Derivatives | 216,600,000 | 346,800,000 | ||
Fixed maturities valued using unadjusted broker quotes | 190,500,000 | 175,500,000 | ||
Fixed maturities valued using unadjusted prices | 15,900,000,000 | 16,700,000,000 | ||
Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 618,800,000 | 1,093,400,000 | ||
Cash and cash equivalents, short-term investments and short-term investments under securirites loan agreement | 529,700,000 | 1,229,300,000 | ||
Assets held in separate accounts | 54,715,300,000 | 47,916,500,000 | ||
Total assets, fair value | 55,962,800,000 | 50,365,400,000 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 0 | 700,000 | ||
Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 19,852,400,000 | 20,140,300,000 | ||
Cash and cash equivalents, short-term investments and short-term investments under securirites loan agreement | 0 | 0 | ||
Assets held in separate accounts | 5,376,500,000 | 5,722,500,000 | ||
Total assets, fair value | 25,693,300,000 | 26,375,100,000 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 162,600,000 | 346,100,000 | ||
Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 234,600,000 | 221,500,000 | ||
Cash and cash equivalents, short-term investments and short-term investments under securirites loan agreement | 0 | 0 | ||
Assets held in separate accounts | 13,100,000 | 16,300,000 | ||
Total assets, fair value | 283,600,000 | 254,800,000 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 23,100,000 | 122,400,000 | ||
Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 20,705,800,000 | 21,455,200,000 | ||
Cash and cash equivalents, short-term investments and short-term investments under securirites loan agreement | 529,700,000 | 1,229,300,000 | ||
Assets held in separate accounts | 60,104,900,000 | 53,655,300,000 | ||
Total assets, fair value | 81,939,700,000 | 76,995,300,000 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 185,700,000 | 469,200,000 | ||
Interest rate contracts | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 700,000 | ||
Interest rate contracts | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 448,600,000 | 508,300,000 | ||
Liabilities: | ' | ' | ||
Derivatives | 206,400,000 | 327,800,000 | ||
Interest rate contracts | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Interest rate contracts | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 448,600,000 | 508,300,000 | ||
Liabilities: | ' | ' | ||
Derivatives | 206,400,000 | 328,500,000 | ||
Foreign exchange contracts | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Foreign exchange contracts | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 7,700,000 | 400,000 | ||
Liabilities: | ' | ' | ||
Derivatives | 10,200,000 | 18,300,000 | ||
Foreign exchange contracts | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Foreign exchange contracts | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 7,700,000 | 400,000 | ||
Liabilities: | ' | ' | ||
Derivatives | 10,200,000 | 18,300,000 | ||
Equity contract | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 400,000 | ||
Equity contract | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Equity contract | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Equity contract | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 400,000 | ||
Credit contracts | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Credit contracts | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 8,100,000 | 3,600,000 | ||
Credit contracts | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Credit contracts | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 8,100,000 | 3,600,000 | ||
Stabilizer and MCGs | Assets measured on recurring basis | Level 1 | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 0 | 0 | ||
Stabilizer and MCGs | Assets measured on recurring basis | Level 2 | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | ' | 0 | ||
Stabilizer and MCGs | Assets measured on recurring basis | Level 3 | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 0 | 102,000,000 | ||
Stabilizer and MCGs | Assets measured on recurring basis | Total | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 0 | 102,000,000 | ||
FIA | Assets measured on recurring basis | Level 1 | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 0 | 0 | ||
FIA | Assets measured on recurring basis | Level 2 | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 0 | 0 | ||
FIA | Assets measured on recurring basis | Level 3 | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 23,100,000 | 20,400,000 | ||
FIA | Assets measured on recurring basis | Total | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 23,100,000 | 20,400,000 | ||
Fixed maturities | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 20,705,800,000 | 21,455,200,000 | ||
U.S. Treasuries | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 670,100,000 | 1,146,600,000 | ||
U.S. Treasuries | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 618,800,000 | 1,093,400,000 | ||
U.S. Treasuries | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 51,300,000 | 53,200,000 | ||
U.S. Treasuries | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 0 | ||
U.S. Treasuries | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 670,100,000 | 1,146,600,000 | ||
U.S. government agencies and authorities | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 242,100,000 | 397,000,000 | ||
U.S. government agencies and authorities | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 0 | ||
U.S. government agencies and authorities | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 237,000,000 | 397,000,000 | ||
U.S. government agencies and authorities | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 5,100,000 | 0 | ||
U.S. government agencies and authorities | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 242,100,000 | 397,000,000 | ||
U.S. corporate, state and municipalities | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 0 | ||
U.S. corporate, state and municipalities | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 10,605,900,000 | 10,512,800,000 | ||
U.S. corporate, state and municipalities | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 145,300,000 | 154,600,000 | ||
U.S. corporate, state and municipalities | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 10,751,200,000 | 10,667,400,000 | ||
Foreign | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 431,600,000 | [1] | 496,000,000 | [1] |
Foreign | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | [1] | 0 | [1] |
Foreign | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 5,727,800,000 | [1] | 5,527,400,000 | [1] |
Foreign | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 42,800,000 | [1] | 24,600,000 | [1] |
Foreign | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 5,770,600,000 | [1] | 5,552,000,000 | [1] |
Residential mortgage-backed | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 2,099,700,000 | 2,357,500,000 | ||
Residential mortgage-backed | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 0 | ||
Residential mortgage-backed | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 2,076,000,000 | 2,348,400,000 | ||
Residential mortgage-backed | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 23,700,000 | 9,100,000 | ||
Residential mortgage-backed | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 2,099,700,000 | 2,357,500,000 | ||
Commercial mortgage-backed | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 691,700,000 | 839,100,000 | ||
Commercial mortgage-backed | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 0 | ||
Commercial mortgage-backed | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 691,700,000 | 839,100,000 | ||
Commercial mortgage-backed | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 0 | ||
Commercial mortgage-backed | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 691,700,000 | 839,100,000 | ||
Other asset-backed Securities | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 0 | ||
Other asset-backed Securities | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 462,700,000 | 462,400,000 | ||
Other asset-backed Securities | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 17,700,000 | 33,200,000 | ||
Other asset-backed Securities | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 480,400,000 | 495,600,000 | ||
Equity securities | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | 134,900,000 | 142,800,000 | ||
Equity securities | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | 99,000,000 | 125,800,000 | ||
Equity securities | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | 0 | 0 | ||
Equity securities | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | 35,900,000 | 17,000,000 | ||
Equity securities | Assets measured on recurring basis | Total | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | 134,900,000 | 142,800,000 | ||
Embedded derivative on reinsurance | Assets measured on recurring basis | Level 1 | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Embedded derivative on reinsurance | Assets measured on recurring basis | Level 2 | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | -54,000,000 | 0 | ||
Embedded derivative on reinsurance | Assets measured on recurring basis | Level 3 | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Embedded derivative on reinsurance | Assets measured on recurring basis | Total | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | ($54,000,000) | $0 | ||
[1] | Primarily U.S. dollar denominated. |
Fair_Value_Measurements_Level_
Fair Value Measurements Level 3 Financial Instruments (Details) (Assets measured on recurring basis, Level 3, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Separate Accounts | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Equity securities, available-for-sale, beginning balance | $16.30 | [1] | $16.10 | [1] |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0.1 | [1] | 0.3 | [1] |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | [1] | 0 | [1] |
Purchases | 16 | [1] | 16.3 | [1] |
Issuances | 0 | [1] | 0 | [1] |
Sales | -11.6 | [1] | -8.3 | [1] |
Settlements | 0 | [1] | 0 | [1] |
Transfers in to Level 3 | 2.2 | [1],[2] | 0 | [1],[2] |
Transfers out of Level 3 | -9.9 | [1],[2] | -8.1 | [1],[2] |
Fair Value, Equity securities, available-for-sale, ending balance | 13.1 | [1] | 16.3 | [1] |
Change in Unrealized Gains (Losses) Included in Earnings | 0 | [1],[3] | 0.6 | [1],[3] |
Stabilizer (Investment Only) and MCG Contracts | ' | ' | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ||
Fair Value, Derivatives, beginning balance | -102 | [4] | -221 | [4] |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 108.2 | [4] | 124.5 | [4] |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | [4] | 0 | [4] |
Purchases | -6.2 | -5.5 | [4] | |
Issues | 0 | [4] | 0 | [4] |
Sales | 0 | [4] | 0 | [4] |
Settlements | 0 | [4] | 0 | [4] |
Transfers in to Level 3 | 0 | [2],[4] | 0 | [2],[4] |
Transfers out of Level 3 | 0 | [2],[4] | 0 | [2],[4] |
Fair Value, Derivatives, ending balance | 0 | [4] | -102 | [4] |
Change in Unrealized Gains (Losses) Included in Earnings | 0 | [3],[4] | 0 | [3],[4] |
Embedded Derivative Fixed Indexed Annuity [Member] | ' | ' | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ||
Fair Value, Derivatives, beginning balance | -20.4 | -16.3 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -2.7 | -4.1 | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | ||
Purchases | 0 | 0 | ||
Issues | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers in to Level 3 | 0 | [2] | 0 | [2] |
Transfers out of Level 3 | 0 | [2] | 0 | [2] |
Fair Value, Derivatives, ending balance | -23.1 | -20.4 | ||
Change in Unrealized Gains (Losses) Included in Earnings | 0 | [3] | 0 | [3] |
Derivatives, net | ' | ' | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ||
Fair Value, Derivatives, beginning balance | 0 | [5] | -12.6 | |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | -1.8 | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | ||
Purchases | 0 | 0 | ||
Issues | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 14.4 | ||
Transfers in to Level 3 | 0 | [2] | 0 | [2] |
Transfers out of Level 3 | 0 | [2] | 0 | [2] |
Fair Value, Derivatives, ending balance | 0 | [5] | 0 | [5] |
Change in Unrealized Gains (Losses) Included in Earnings | 0 | [3] | 0 | [3] |
U.S. government agencies and authorities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Fixed maturities, including securities pledged, beginning balance | 0 | 0 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | ||
Purchases | 5.1 | [5] | 0 | |
Issuances | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers in to Level 3 | 0 | [2] | 0 | [2] |
Transfers out of Level 3 | 0 | [2] | 0 | [2] |
Fair Value, Fixed maturities, including securities pledged, ending balance | 5.1 | 0 | ||
Change in Unrealized Gains (Losses) Included in Earnings | 0 | [3] | 0 | [3] |
U.S. corporate, state and municipalities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Fixed maturities, including securities pledged, beginning balance | 154.6 | 129.1 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -0.3 | -0.3 | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0.4 | -1.4 | ||
Purchases | 0 | [5] | 0.4 | |
Issuances | 0 | 0 | ||
Sales | -6 | 0 | ||
Settlements | -4.3 | -7.9 | ||
Transfers in to Level 3 | 0.9 | [2] | 38.3 | [2] |
Transfers out of Level 3 | 0 | [2] | -3.6 | [2] |
Fair Value, Fixed maturities, including securities pledged, ending balance | 145.3 | 154.6 | ||
Change in Unrealized Gains (Losses) Included in Earnings | -0.3 | [3] | -0.4 | [3] |
Foreign securities government | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Fixed maturities, including securities pledged, beginning balance | 24.6 | 51.1 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | [5] | 0.9 | |
Total Realized/Unrealized Gains (Losses) Included in OCI | 1.3 | -4.2 | ||
Purchases | 22.2 | 0 | ||
Issuances | 0 | 0 | ||
Sales | -1.9 | -5.7 | ||
Settlements | -10.7 | -12.5 | ||
Transfers in to Level 3 | 7.3 | [2] | 20.7 | [2] |
Transfers out of Level 3 | 0 | [2],[5] | -25.7 | [2] |
Fair Value, Fixed maturities, including securities pledged, ending balance | 42.8 | 24.6 | ||
Change in Unrealized Gains (Losses) Included in Earnings | 0 | [3],[5] | 0 | [3] |
Residential mortgage-backed | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Fixed maturities, including securities pledged, beginning balance | 9.1 | 41 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -2 | 0.7 | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | -0.3 | 2.7 | ||
Purchases | 17.5 | 2.3 | ||
Issuances | 0 | 0 | ||
Sales | 0 | -6 | ||
Settlements | 0 | 0 | ||
Transfers in to Level 3 | 0 | [2] | 0 | [2] |
Transfers out of Level 3 | -0.6 | [2] | -31.6 | [2] |
Fair Value, Fixed maturities, including securities pledged, ending balance | 23.7 | 9.1 | ||
Change in Unrealized Gains (Losses) Included in Earnings | -2 | [3] | -0.1 | [3] |
Other asset-backed Securities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Fixed maturities, including securities pledged, beginning balance | 33.2 | 27.7 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 2.3 | 1.1 | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | -0.7 | 2.5 | ||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Sales | -2.8 | 0 | ||
Settlements | -9.9 | -1.9 | ||
Transfers in to Level 3 | 0 | [2] | 3.8 | [2] |
Transfers out of Level 3 | -4.4 | [2] | 0 | [2] |
Fair Value, Fixed maturities, including securities pledged, ending balance | 17.7 | 33.2 | ||
Change in Unrealized Gains (Losses) Included in Earnings | 0.9 | [3] | 0.8 | [3] |
Fixed maturities, available-for-sale, including securities pledged | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Fixed maturities, including securities pledged, beginning balance | 221.5 | 248.9 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | [5] | 2.4 | |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0.7 | -0.4 | ||
Purchases | 44.8 | 2.7 | ||
Issuances | 0 | 0 | ||
Sales | -10.7 | -11.7 | ||
Settlements | -24.9 | -22.3 | ||
Transfers in to Level 3 | 8.2 | [2] | 62.8 | [2] |
Transfers out of Level 3 | -5 | [2] | -60.9 | [2] |
Fair Value, Fixed maturities, including securities pledged, ending balance | 234.6 | 221.5 | ||
Change in Unrealized Gains (Losses) Included in Earnings | -1.4 | [3] | 0.3 | [3] |
Equity securities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Fair Value, Equity securities, available-for-sale, beginning balance | 17 | 19 | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -0.3 | -0.2 | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 1.4 | -0.2 | ||
Purchases | 0 | 0.8 | ||
Issuances | 0 | 0 | ||
Sales | 0 | [5] | -2.4 | |
Settlements | 0 | [5] | 0 | |
Transfers in to Level 3 | 34.5 | [2] | 0.3 | [2] |
Transfers out of Level 3 | -16.7 | [2] | -0.3 | [2] |
Fair Value, Equity securities, available-for-sale, ending balance | 35.9 | 17 | ||
Change in Unrealized Gains (Losses) Included in Earnings | $0 | [3] | ($0.50) | [3] |
[1] | The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which result in a net zero impact on net income (loss) for the Company | |||
[2] | The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | |||
[3] | For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. | |||
[4] | All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. | |||
[5] | Less than $0.1. |
Fair_Value_Measurements_Signif
Fair Value Measurements Significant Unobservable Inputs (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Actuarial Assumptions, Lapses, threshold percentage | 85.00% | 85.00% |
Actuarial Assumptions, Policyholder Deposits, threshold percentage | 85.00% | 85.00% |
Fixed indexed annuities (FIA) | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Interest rate implied volatility | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
Fixed indexed annuities (FIA) | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Interest rate implied volatility | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
Fixed indexed annuities (FIA) | Investment Contract | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Nonperformance risk | -0.10% | 0.10% |
Actuarial Assumptions, Lapses | 0.00% | 0.00% |
Fixed indexed annuities (FIA) | Investment Contract | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Nonperformance risk | 0.79% | 1.30% |
Actuarial Assumptions, Lapses | 10.00% | 10.00% |
Stabilizer / MCG | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Percentage of Plans | 100.00% | 100.00% |
Stabilizer / MCG | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Interest rate implied volatility | 0.20% | 0.10% |
Nonperformance risk | -0.10% | 0.10% |
Actuarial Assumptions, Lapses | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
Actuarial Assumptions, Lapses under percent threshold | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 0.00% | 0.00% |
Stabilizer / MCG | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Interest rate implied volatility | 8.00% | 7.60% |
Nonperformance risk | 0.79% | 1.30% |
Actuarial Assumptions, Lapses | 55.00% | 55.00% |
Actuarial Assumptions, Policyholder Deposits | 60.00% | 60.00% |
Actuarial Assumptions, Lapses under percent threshold | 25.00% | 25.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 30.00% | 30.00% |
Stabilizer (Investment Only) and MCG Contracts | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Percentage of Plans | 88.00% | 87.00% |
Stabilizer (Investment Only) and MCG Contracts | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Actuarial Assumptions, Lapses | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
Actuarial Assumptions, Lapses under percent threshold | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 0.00% | 0.00% |
Stabilizer (Investment Only) and MCG Contracts | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Actuarial Assumptions, Lapses | 30.00% | 30.00% |
Actuarial Assumptions, Policyholder Deposits | 55.00% | 55.00% |
Actuarial Assumptions, Lapses under percent threshold | 15.00% | 15.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 20.00% | 20.00% |
Stabilizer with Recordkeeping Agreements | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Percentage of Plans | 12.00% | 13.00% |
Stabilizer with Recordkeeping Agreements | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Actuarial Assumptions, Lapses | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
Actuarial Assumptions, Lapses under percent threshold | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 0.00% | 0.00% |
Stabilizer with Recordkeeping Agreements | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Actuarial Assumptions, Lapses | 55.00% | 55.00% |
Actuarial Assumptions, Policyholder Deposits | 60.00% | 60.00% |
Actuarial Assumptions, Lapses under percent threshold | 25.00% | 25.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 30.00% | 30.00% |
Fair_Value_Measurements_Other_
Fair Value Measurements Other Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | $20,700.60 | $21,378.30 | ||
Derivative assets | 464.4 | 512.7 | ||
Derivatives liabilities | 216.6 | 346.8 | ||
Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Limited partnerships/corporations | 180.9 | 179.6 | ||
Cash and cash equivalents, short-term investments and short-term investments under securirites loan agreement | 529.7 | 1,229.30 | ||
Derivative assets | 464.4 | 512.7 | ||
Notes receivable from affiliates | 175 | 175 | ||
Assets held in separate accounts | 60,104.90 | 53,655.30 | ||
Derivatives liabilities | 216.6 | 346.8 | ||
Long-term debt, fair value | 4.9 | 4.9 | ||
Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Limited partnerships/corporations | 180.9 | 179.6 | ||
Cash and cash equivalents, short-term investments and short-term investments under securirites loan agreement | 529.7 | 1,229.30 | ||
Derivative assets | 464.4 | 512.7 | ||
Notes receivable from affiliates | 186.4 | 194.3 | ||
Assets held in separate accounts | 60,104.90 | 53,655.30 | ||
Derivatives liabilities | 216.6 | 346.8 | ||
Long-term debt, fair value | 4.9 | 4.9 | ||
Funding agreements without fixed maturities and deferred annuities(1) | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 21,010.80 | [1] | 20,263.40 | [1] |
Funding agreements without fixed maturities and deferred annuities(1) | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 24,379.60 | [1] | 25,156.50 | [1] |
Supplementary contracts, immediate annuities and other | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 624.3 | 680 | ||
Supplementary contracts, immediate annuities and other | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 727.1 | 837.3 | ||
FIA | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 23.1 | 20.4 | ||
FIA | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 23.1 | 20.4 | ||
Stabilizer and MCGs | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 0 | 102 | ||
Stabilizer and MCGs | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 0 | 102 | ||
Mortgage loans on real estate | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 3,396.10 | 2,872.70 | ||
Mortgage loans on real estate | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 3,403.90 | 2,946.90 | ||
Policy loans | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 242 | 240.9 | ||
Policy loans | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 242 | 240.9 | ||
Fixed maturities, available-for-sale, including securities pledged | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 20,705.80 | 21,455.20 | ||
Fixed maturities, available-for-sale, including securities pledged | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 20,705.80 | 21,455.20 | ||
Equity securities, available-for-sale | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 134.9 | 142.8 | ||
Equity securities, available-for-sale | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 134.9 | 142.8 | ||
Embedded derivative on reinsurance | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Derivatives liabilities | -54 | 0 | ||
Embedded derivative on reinsurance | Total | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Derivatives liabilities | ($54) | $0 | ||
[1] | Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Annuity product guarantees section of the table above. |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs and Value of Business Acquired (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ' | ' | ' | |||
Beginning balance | $296.50 | $334.90 | $307.60 | |||
Deferrals of commissions and expenses | 71.3 | 79.1 | 79.8 | |||
Amortization: | ' | ' | ' | |||
Amortization | -69.7 | -72.1 | -71.5 | |||
Interest accrued | 34 | [1] | 31.1 | [1] | 31.9 | [1] |
Net amortization included in the Consolidated Statements of Operations | -35.7 | -41 | -39.6 | |||
Change in unrealized capital gains/losses on available-for-sale securities | 144.1 | -76.5 | -12.9 | |||
Ending balance | 476.2 | 296.5 | 334.9 | |||
Movement Analysis Of Value of Business Acquired VOBA [Roll Forward] | ' | ' | ' | |||
Beginning balance | 381.4 | 593.6 | 864.2 | |||
Deferrals of commissions and expenses | 7.2 | 8.1 | 8.5 | |||
Amortization | -83.6 | -152.6 | -125.1 | |||
Interest accrued | 61 | [1] | 62.5 | [1] | 70.5 | [1] |
Net amortization included in the Condensed Consolidated Statements of Operations | -22.6 | -90.1 | -54.6 | |||
Change in unrealized capital gains/losses on availabe-for-sale securities | 330.6 | -130.2 | -224.5 | |||
Ending balance | 696.6 | 381.4 | 593.6 | |||
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward] | ' | ' | ' | |||
Beginning balance | 677.9 | 928.5 | 1,171.80 | |||
Deferrals of commissions and expenses | 78.5 | 87.2 | 88.3 | |||
Amortization | -153.3 | -224.7 | -196.6 | |||
Interest accrued | 95 | [1] | 93.6 | [1] | 102.4 | [1] |
Net amortization of deferred policy acquisition costs and value of business acquired | -58.3 | -131.1 | -94.2 | |||
Change in unrealized capital gains/losses on availabe-for-sale securities | 474.7 | -206.7 | -237.4 | |||
Ending balance | 1,172.80 | 677.9 | 928.5 | |||
Estimated amount of VOBA amortization expense, net of interest: | ' | ' | ' | |||
2014 | 62.7 | ' | ' | |||
2015 | 52.5 | ' | ' | |||
2016 | 46.8 | ' | ' | |||
2017 | 42.6 | ' | ' | |||
2018 | $40.60 | ' | ' | |||
Minimum | ' | ' | ' | |||
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward] | ' | ' | ' | |||
Value of Business Acquired (VOBA), Interest accrued percentage | 1.00% | 5.00% | 5.00% | |||
Maximum | ' | ' | ' | |||
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward] | ' | ' | ' | |||
Value of Business Acquired (VOBA), Interest accrued percentage | 7.00% | 7.00% | 7.00% | |||
[1] | Interest accrued at the following rates for VOBA: 1.0% to 7.0% during 2013, 5.0% to 7.0% during 2012 and 5.0% to 7.0% during 2011. |
Guaranteed_Benefit_Features_De
Guaranteed Benefit Features (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Insurance [Abstract] | ' | ' |
Guaranteed minimum benefits | $38,000,000,000 | $35,200,000,000 |
Additional liability recognized | 7,100,000 | 108,100,000 |
Aggregate fair value of securities supporting separate accounts | $9,200,000,000 | $9,300,000,000 |
Reinsurance_Details
Reinsurance (Details) (USD $) | Dec. 31, 2013 | Oct. 02, 1998 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
SLDI | Lincoln National Corporation, Subsidiary | Aetna Life Insurance Company | Aetna Life Insurance Company | Unaffiliated Reinsurers | |
treaty | reinsurer | ||||
Effects of Reinsurance [Line Items] | ' | ' | ' | ' | ' |
Number of outstanding reinsurance agreements | 1 | ' | ' | ' | 6 |
Proceeds from disposal of life insurance business | ' | $1,000,000,000 | ' | ' | ' |
Reinsurance assumed at inception of contract | ' | ' | 25,000,000 | ' | ' |
Reserves maintained for Aetna Life | ' | ' | $10,100,000 | $10,100,000 | ' |
Reinsurance_Net_Receivables_De
Reinsurance (Net Receivables) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Insurance [Abstract] | ' | ' |
Claims recoverable from reinsurers | $2,016.70 | $2,153.80 |
Reinsured amounts due to reinsurers | -0.4 | -0.3 |
Other | 0.3 | 0.2 |
Total | $2,016.60 | $2,153.70 |
Reinsurance_Premiums_Details
Reinsurance (Premiums) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Premiums Earned, Net [Abstract] | ' | ' | ' |
Direct premiums | $37.40 | $36.20 | $34 |
Reinsurance assumed | 0.1 | 0 | 0.1 |
Reinsurance ceded | -0.2 | -0.2 | -0.2 |
Net premiums | $37.30 | $36 | $33.90 |
Capital_Contributions_and_Divi1
Capital Contributions and Dividends (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
Dec. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 16, 2013 | Oct. 15, 2012 | Dec. 22, 2011 | Dec. 21, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
ING Financial Advisers, LLC | ING Financial Advisers, LLC | ING Financial Advisers, LLC | Directed Services, LLC | Lion Connecticut Holdings Inc. | Lion Connecticut Holdings Inc. | Lion Connecticut Holdings Inc. | |||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage threshold of dividends paid in previous twelve months to earned statutory surplus of prior year end, requiring approval of payment of dividends if exceeded | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extraordinary dividend paid to parent | ' | $264,000,000 | $340,000,000 | $0 | ' | ' | ' | ' | $174,000,000 | $340,000,000 | $0 |
Cash dividends paid to parent company | 90,000,000 | ' | ' | ' | 60,000,000 | 90,000,000 | 65,000,000 | 15,000,000 | ' | ' | ' |
Capital contribution from parent | ' | 0 | 0 | 201,000,000 | ' | ' | ' | ' | ' | ' | ' |
Statutory net income (loss) | ' | 175,200,000 | 261,600,000 | 194,400,000 | ' | ' | ' | ' | ' | ' | ' |
Statutory capital and surplus | ' | $2,000,000,000 | $1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Components of AOCI (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Derivatives | $133 | $215.20 | $173.70 |
DAC/VOBA and sales inducements adjustment on available-for-sale securities | -335.3 | -810.6 | -603.6 |
Premium deficiency reserve adjustment | -82.4 | -152.6 | -64.8 |
Unrealized capital gains (losses), before tax | 551.7 | 1,456.40 | 1,037.10 |
Deferred income tax asset (liability) | -66.1 | -444.6 | -302.3 |
Unrealized capital gains (losses), after tax | 485.6 | 1,011.80 | 734.8 |
Pension and other post-employment benefits liability, net of tax | 9.8 | 11.2 | 12.7 |
AOCI | 495.4 | 1,023 | 747.5 |
Fixed maturities | ' | ' | ' |
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Fixed maturities, net of OTTI | 820.9 | 2,190.90 | 1,518.70 |
Equity securities | ' | ' | ' |
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Equity securities, available-for-sale | $15.50 | $13.50 | $13.10 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) Changes in AOCI, including Reclassification Adjustments (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Available-for-sale securities, Before-Tax Amount: | ' | ' | ' | |||
Net unrealized gains/losses on Other | $0 | $0 | ($0.10) | |||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | -0.6 | -66.1 | -114.2 | |||
DAC/VOBA and sales inducements | 475.3 | [1] | -207 | [1] | -241.2 | [1] |
Premium deficiency reserve adjustment | 70.2 | -87.8 | -3.8 | |||
Net realized gains/losses on available-for-sale securities | -822.5 | 377.8 | 331.9 | |||
Available-for-sale securities, Income Tax: | ' | ' | ' | |||
Net unrealized gains/losses on Other | 0 | 0 | 0 | |||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 0.2 | 23.1 | 40 | |||
DAC/VOBA and sales inducements | -166.4 | 72.5 | 84.4 | |||
Premium deficiency reserve adjustment | -24.6 | 30.7 | 1.3 | |||
Net realized gains/losses on available-for-sale securities | 349.7 | -127.8 | -92.4 | |||
Available-for-sale securities, After-Tax Amount: | ' | ' | ' | |||
Net unrealized gains/losses on Other | 0 | 0 | -0.1 | |||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | -0.4 | -43 | -74.2 | |||
DAC/VOBA and sales inducements | 308.9 | -134.5 | -156.8 | |||
Premium deficiency reserve adjustment | 45.6 | -57.1 | -2.5 | |||
Net realized gains/losses on available-for-sale securities | -472.8 | 250 | 239.5 | |||
Derivatives, Before-Tax Amount: | ' | ' | ' | |||
Net unrealized capital gains/losses arising during the period, Before-Tax Amount | -79.5 | [2] | 41.5 | [2] | 173.2 | [2] |
Adjustments for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | -2.7 | 0 | 0 | |||
Net unrealized gains/losses on derivatives | -82.2 | 41.5 | 173.2 | |||
Derivatives, Income Tax: | ' | ' | ' | |||
Net unrealized capital gains/losses arising during the period, Income Tax | 27.9 | -14.5 | -60.6 | |||
Adjustments for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | 0.9 | 0 | 0 | |||
Net unrealized gains/losses on derivatives | 28.8 | -14.5 | -60.6 | |||
Derivatives, After-Tax Amount: | ' | ' | ' | |||
Net unrealized capital gains/losses arising during the period, After-Tax Amount | -51.6 | 27 | 112.6 | |||
Adjustments for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | -1.8 | 0 | 0 | |||
Net unrealized gains/losses on derivatives | -53.4 | 27 | 112.6 | |||
OTTI: | ' | ' | ' | |||
Other-than-temporary impairments | 2.7 | 10.6 | 21.3 | |||
Change in OTTI, Income Tax | -0.9 | -3.7 | -7.5 | |||
Change in OTTI, After-Tax Amount | 1.8 | 6.9 | 13.8 | |||
Pension and other post-employment benefit liability, Before-Tax Amount: | ' | ' | ' | |||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | -2.2 | [3] | -2.2 | [3] | 7.6 | [3] |
Net pension and other post-employment benefits liability | -2.2 | -2.2 | 7.6 | |||
Other comprehensive income (loss), before tax | -906.9 | 417.1 | 512.7 | |||
Pension and other post-employment benefit liability, Income Tax: | ' | ' | ' | |||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | 0.8 | 0.7 | -2.7 | |||
Net pension and other post-employment benefit liability | 0.8 | 0.7 | -2.7 | |||
Other comprehensive income (loss) | 379.3 | -141.6 | -155.7 | |||
Pension and other post-employment benefit liability, After-Tax Amount: | ' | ' | ' | |||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | -1.4 | -1.5 | 4.9 | |||
Net pension and other post-employment benefit liability | -1.4 | -1.5 | 4.9 | |||
Other comprehensive income (loss), after tax | -527.6 | 275.5 | 357 | |||
Fixed maturities | ' | ' | ' | |||
Available-for-sale securities, Before-Tax Amount: | ' | ' | ' | |||
Net unrealized gains/losses on securities | -1,372.10 | 727.7 | 677.8 | |||
Available-for-sale securities, Income Tax: | ' | ' | ' | |||
Net unrealized gains/losses on securities | 542.1 | [4] | -250.3 | -213.4 | [5] | |
Available-for-sale securities, After-Tax Amount: | ' | ' | ' | |||
Net unrealized gains/losses on securities | -830 | 477.4 | 464.4 | |||
Fixed maturities | Deferred Tax Asset Valuation Allowance | ' | ' | ' | |||
Available-for-sale securities, Income Tax: | ' | ' | ' | |||
Net unrealized gains/losses on securities | -67.6 | ' | -22 | |||
Equity securities | ' | ' | ' | |||
Available-for-sale securities, Before-Tax Amount: | ' | ' | ' | |||
Net unrealized gains/losses on securities | 2 | 0.4 | -7.9 | |||
Available-for-sale securities, Income Tax: | ' | ' | ' | |||
Net unrealized gains/losses on securities | -0.7 | -0.1 | 2.8 | |||
Available-for-sale securities, After-Tax Amount: | ' | ' | ' | |||
Net unrealized gains/losses on securities | $1.30 | $0.30 | ($5.10) | |||
[1] | See "Note 5. Deferred Policy Acquisition Costs and Value of Business Acquired" for additional information. | |||||
[2] | See "Note 3. Derivative Financial Instruments" for additional information. | |||||
[3] | See "Note 11. Benefit Plans" for amounts reported in Net Periodic (Benefit) Costs. | |||||
[4] | Amount includes $67.6 valuation allowance. See "Note 10. Income Taxes" for additional information. | |||||
[5] | Amount includes $22.0 valuation allowance. See "Note 10. Income Taxes" for additional information. |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax expense (benefit): | ' | ' | ' |
Federal | $144.60 | $200.90 | $60.30 |
Total current tax expense (benefit) | 144.6 | 200.9 | 60.3 |
Deferred tax expense (benefit): | ' | ' | ' |
Federal | 62.4 | -9.7 | -65.3 |
Total deferred tax expense (benefit) | 62.4 | -9.7 | -65.3 |
Income tax expense (benefit) | $207 | $191.20 | ($5) |
Income_Taxes_Income_Tax_Reconc
Income Taxes - Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income (loss) before income taxes | $490.50 | $516.60 | $315.30 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' |
Tax rate | 35.00% | 35.00% | 35.00% |
Income tax expense (benefit) at federal statutory rate | 171.7 | 180.8 | 110.4 |
Dividends received deduction | -26.6 | -18.6 | -37 |
Valuation allowance | 67.6 | 0 | -87 |
Audit settlements | -0.3 | -0.3 | 3.7 |
Prior year tax | 0 | 28.1 | 0 |
Other | -5.4 | 1.2 | 4.9 |
Income tax expense (benefit) | $207 | $191.20 | ($5) |
Income_Taxes_Temporary_Differe
Income Taxes - Temporary Differences (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Insurance reserves | $166.70 | $255.40 |
Investments | 231.8 | 87.5 |
Postemployment benefits | 67.3 | 50.6 |
Compensation and benefits | 35.8 | 44.4 |
Other assets | 0 | 24.5 |
Total gross assets before valuation allowance | 501.6 | 462.4 |
Valuation allowance, deferred tax assets | 11.1 | 11.1 |
Assets, net of valuation allowance | 490.5 | 451.3 |
Net unrealized investment (gains) losses | -310.5 | -482.4 |
Deferred policy acquisition costs | -124.1 | -143.8 |
Value of business acquired | -243.8 | -332.2 |
Other liabilities | -2.2 | 0 |
Total gross liabilities | 680.6 | 958.4 |
Net deferred income tax asset (liability) | ($190.10) | ($507.10) |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowance, deferred tax assets | $11.10 | $11.10 | ' |
Increase (decrease) in valuation allowance | 0 | ' | -109 |
Current income tax payable to Parent | 74.1 | 32.1 | ' |
Foreign tax credits | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowance, deferred tax assets | 11.1 | ' | ' |
Tax valuation allowance allocated to Net income (loss) | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowance, deferred tax assets | 130.4 | 62.8 | ' |
Increase (decrease) in valuation allowance | 67.6 | 0 | -87 |
Tax valuation allowance allocated to Other comprehensive income | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowance, deferred tax assets | -119.3 | -51.7 | ' |
Increase (decrease) in valuation allowance | -67.6 | 0 | -22 |
ING U.S. Inc | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Current income tax payable to Parent | $74.10 | $32.10 | ' |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of period | $0 | $0 | $23,000,000 |
Additions for tax positions related to prior years | 0 | 0 | 4,500,000 |
Reductions for tax positions related to prior years | 0 | 0 | -4,500,000 |
Reductions for settlements with taxing authorities | 0 | 0 | -23,000,000 |
Balance at end of period | 0 | 0 | 0 |
Accrued interest and penalties related to unrecognized tax benefits | $0 | ' | ' |
Benefit_Plans_Defined_Benefit_
Benefit Plans (Defined Benefit Plans) (Details) (Pension Plan, Defined Benefit, Qualified, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Annual credit earned by participants due to transition from old formula to new formula, percentage of annual pay | 4.00% | ' | ' |
Transition period from old formula to new formula | '2 years | ' | ' |
Operating Expenses | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Costs allocated to the Company for employees' participation in the Retirement Plan | $6.50 | $19.10 | $24.60 |
Benefit_Plans_Defined_Contribu
Benefit Plans (Defined Contribution Plan) (Details) (ING Americas Savings Plan and ESOP, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Expenses | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Defined contribution plan, cost allocated | $10.80 | $9.70 | $9.80 |
Minimum | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Award vesting period | '4 years | ' | ' |
Maximum | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Company match, percentage of participant's eligible compensation | 6.00% | ' | ' |
Award vesting period | '5 years | ' | ' |
Benefit_Plans_NonQualified_Ret
Benefit Plans (Non-Qualified Retirement Plans) (Details) (Pension Plan, Defined Benefit, Non-qualified, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Pension Plan, Defined Benefit, Non-qualified | ' |
Non-Qualified Retirement Plans [Abstract] | ' |
Non-qualified retirement plan, number of years of highest average annual compensation used to determine benefits | '5 years |
Non-qualified retirement plan, number of years of employment used to determine benefits | '10 years |
Expected employer contributions in next fiscal year | $6.10 |
Future expected benefit payments, 2014 | 6.1 |
Future expected benefit payments, 2015 | 5.3 |
Future expected benefit payments, 2016 | 5.2 |
Future expected benefit payments, 2017 | 5.3 |
Future expected benefit payments, 2018 | 5.5 |
Future expected benefit payments, 2019 through 2023 | $27.80 |
Benefit_Plans_Obligations_and_
Benefit Plans (Obligations and Funded Status) (Details) (Pension Plan, Defined Benefit, Non-qualified, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plan, Defined Benefit, Non-qualified | ' | ' | ' |
Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation | $97.20 | $98.70 | ' |
Interest cost | 3.8 | 4.4 | 5 |
Benefits paid | -7.8 | -9.3 | ' |
Actuarial gain on obligation | -9.1 | 3.4 | ' |
Benefit obligation | 84.1 | 97.2 | 98.7 |
Amounts Recognized in Consolidated Balance Sheets [Abstract] | ' | ' | ' |
Accrued benefit cost | -84.1 | -97.2 | -98.7 |
Accumulated other comprehensive income: | ' | ' | ' |
Prior service cost | -6.1 | -7.3 | ' |
Net amount recognized | ($90.20) | ($104.50) | ' |
Benefit_Plans_Assumptions_Deta
Benefit Plans (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Discount rate | 4.95% | ' | ' |
Pension Plan, Defined Benefit, Non-qualified | ' | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Discount rate | 4.95% | 4.05% | ' |
Rate of compensation increase | 4.00% | 4.00% | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Discount rate | 4.05% | 4.75% | 5.50% |
Rate of increase in compensation levels | 4.00% | 4.00% | 4.00% |
Benefit_Plans_Net_Periodic_Ben
Benefit Plans (Net Periodic Benefit Costs) (Details) (Pension Plan, Defined Benefit, Non-qualified, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plan, Defined Benefit, Non-qualified | ' | ' | ' |
Net Periodic Benefit Costs [Abstract] | ' | ' | ' |
Interest cost | $3.80 | $4.40 | $5 |
Net loss (gain) | -9.1 | 3.4 | 16 |
Unrecognized past service cost recognized in the year | -1.2 | -1.2 | 0 |
The effect of any curtailment or settlement | 0 | 0 | 2.2 |
Net periodic benefit cost | ($6.50) | $6.60 | $23.20 |
Benefit_Plans_Stock_Option_and
Benefit Plans (Stock Option and Share Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Option and Share Plans [Abstract] | ' | ' | ' |
Allocated stock option and share plan expenses | $17 | $11 | $12.60 |
Tax benefit from allocated stock option and share plan expenses | 6 | 3.9 | 4.4 |
Benefit charges allocated | $11.30 | $11.90 | $9.90 |
ING 401(k) Plan for ILIAC Agents | ' | ' | ' |
Stock Option and Share Plans [Abstract] | ' | ' | ' |
Maximum annual contribution per employee | 60.00% | ' | ' |
Company match, percentage of participant's eligible compensation | 6.00% | ' | ' |
Financing_Agreements_Details
Financing Agreements (Details) (USD $) | 1 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 02, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 16, 2007 | Dec. 31, 2013 | Dec. 31, 2013 |
Loans Payable | Loans Payable | Loans Payable | Loans Payable | Minimum | Maximum | ||||
1.00% Windsor Property Loan | 1.00% Windsor Property Loan | 1.00% Windsor Property Loan | 1.00% Windsor Property Loan | Loans Payable | Loans Payable | ||||
1.00% Windsor Property Loan | 1.00% Windsor Property Loan | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of unsecured notes issued | ' | ' | ' | ' | ' | ' | $9.90 | ' | ' |
Term to debt maturity | ' | ' | ' | ' | '20 years | ' | ' | ' | ' |
Annual interest rate on loan | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' |
Initial period without debt payments based on no defaults | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Period obligated to make monthly debt payments | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Initial period for loan forgiveness | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Initial provision for debt forgiveness | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Debt forgiveness | ' | ' | ' | 5 | ' | ' | ' | ' | ' |
Additional provision for debt forgiveness | ' | ' | ' | ' | ' | ' | ' | ' | 4.9 |
Additional period for loan forgiveness | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years |
Letter of credit, security provided as repayment of notes payable | 10.6 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | $4.90 | $4.90 | ' | $4.90 | $4.90 | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Restricted Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Loss Contingencies [Line Items] | ' | ' | ||
Other fixed maturities-state deposits | $13.10 | $13.40 | ||
Securities pledged | 140.1 | [1] | 219.7 | [1] |
Total restricted assets | 153.2 | 233.1 | ||
Fair value of loaned securities | 97.6 | 180.2 | ||
Securities pledged as collateral | 140.1 | 219.7 | ||
Fixed maturities | ' | ' | ||
Loss Contingencies [Line Items] | ' | ' | ||
Securities pledged as collateral | $42.50 | $39.50 | ||
[1] | Includes the fair value of loaned securities of $97.6 and $180.2 as of DecemberB 31, 2013 and 2012, respectively, which is included in Securities pledged on the Consolidated Balance Sheets. In addition, as of DecemberB 31, 2013 and 2012, the Company delivered securities as collateral of $42.5 and $39.5, respectively, which was included in Securities pledged on the Consolidated Balance Sheets. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 26, 2012 | Feb. 22, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Healthcare Strategies, Inc., Plan [Member] | Healthcare Strategies, Inc., Plan [Member] | Investment purchase commitment | Investment purchase commitment | ||||
plantiff | plantiff | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Rent expense | $4 | $4.90 | $5 | ' | ' | ' | ' |
Off-balance sheet commitment to purchase investments | ' | ' | ' | ' | ' | 466.8 | 314.9 |
Possible losses in excess of amounts accrued | $30 | ' | ' | ' | ' | ' | ' |
Sponsors of retirement plan alleging violation | ' | ' | ' | ' | 2 | ' | ' |
Number of plantiffs | ' | ' | ' | 15,000 | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 20, 2012 | Jan. 26, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 29, 2004 | Jan. 26, 2009 | Nov. 13, 2012 | Jan. 26, 2009 | Jan. 26, 2009 | Apr. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 26, 2009 | |
Senior Unsecured Credit Facility | ING Bank, FSB and Certain Subsidiaries of ING U.S. Inc. | ING Investment LLC and ING Investment Management LLC | ING Investment LLC and ING Investment Management LLC | ING Investment LLC and ING Investment Management LLC | SLDI | SLDI | Company Funds | Company Funds | Company Funds | Company Funds | Affiliated Entities | Affiliated Entities | Affiliated Entities | ING Investors Trust | ING Investors Trust | ReliaStar Life Insurance Company | ReliaStar Life Insurance Company | ReliaStar Life Insurance Company | ING Investment Management LLC | ING Investment Management LLC | ING Investment Management LLC | ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York, Affiliate Companies | ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York, Affiliate Companies | ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York, Affiliate Companies | ING North America | ING North America | ING North America | US Insurance Company and Affiliates | US Insurance Company and Affiliates | US Insurance Company and Affiliates | ING Institutional Plan Services | ING Institutional Plan Services | ING Institutional Plan Services | ING International | ING International | ING International | ING International | ING USA | ING USA | ING USA | ING USA | ING Support Holding | ING Support Holding | Dutch State | Dutch State | Reciprocal Loan Agreement | Reciprocal Loan Agreement | Reciprocal Loan Agreement | Alt-A residential mortgage-backed securities | ||||
Alt-A residential mortgage-backed securities | DSL | DSL | DSL | State of New York | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | DSL | Net investment income | Surplus Notes | Surplus Notes | Surplus Notes | Surplus Notes | Alt-A residential mortgage-backed securities | Alt-A residential mortgage-backed securities | ING Bank, FSB and Certain Subsidiaries of ING U.S. Inc. | ING U.S. Inc | ING U.S. Inc | ING U.S. Inc | ING Support Holding | ||||||||||||||||||||||
Alt-A residential mortgage-backed securities | Net investment income | Net investment income | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Agreeements, Investment Advisory and Other Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earning related to agreements | $744,300,000 | $648,800,000 | $614,000,000 | ' | ' | ' | ' | ' | ' | ' | $152,400,000 | $135,000,000 | $103,200,000 | ' | $418,200,000 | $370,600,000 | $323,200,000 | ' | ' | ' | ' | ' | $30,500,000 | $26,200,000 | $24,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,200,000 | $7,100,000 | $8,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commissions collected | 242,100,000 | 225,500,000 | 218,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 242,100,000 | 225,500,000 | 218,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Management, admistrative and accounting services fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000,000 | 27,000,000 | 23,300,000 | ' | ' | ' | 187,100,000 | 183,500,000 | 180,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses incurred | ' | ' | ' | ' | ' | 27,700,000 | 27,000,000 | 22,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 3,200,000 | 3,200,000 | ' | ' | ' | 230,500,000 | 212,300,000 | 207,900,000 | ' | ' | ' | 22,600,000 | 30,800,000 | 29,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due from affiliates | 62,900,000 | 99,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,500,000 | 25,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reinsurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quota share of liability with reinsurer, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of average daily net assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' |
Basis spread on reciprocal loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | 0.15% | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income on reciprocal loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 500,000 | ' |
Current borrowing capacity | ' | ' | ' | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate on loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.26% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,100,000 | 11,100,000 | 11,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Alt-A Back-Up Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk and rewards transfered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Investments, percentage of investments covered by facility | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' |
Loan Dutch State Obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $794,400,000 | ' | ' | ' | ' |
Purchase price of participation payable, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' |
Percentage of investment value transfered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | 80.00% |
Percentage of investments retained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' |
Schedule_I_Summary_of_Investme1
Schedule I. Summary of Investments (Details) (USD $) | Dec. 31, 2013 | |
In Millions, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | $23,979.10 | |
Value | 25,146.90 | |
Amount Shown on Consolidated Balance Sheets | 25,139.10 | |
U.S. Treasuries | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 636.5 | |
Value | 670.1 | |
Amount Shown on Consolidated Balance Sheets | 670.1 | |
U.S. government agencies and authorities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 237.1 | |
Value | 242.1 | |
Amount Shown on Consolidated Balance Sheets | 242.1 | |
State, municipalities and political subdivisions | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 77.2 | |
Value | 83 | |
Amount Shown on Consolidated Balance Sheets | 83 | |
U.S. corporate securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 10,326 | |
Value | 10,668.20 | |
Amount Shown on Consolidated Balance Sheets | 10,668.20 | |
Foreign securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 5,572.50 | [1] |
Value | 5,770.60 | [1] |
Amount Shown on Consolidated Balance Sheets | 5,770.60 | [1] |
Residential mortgage-backed securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 1,916.30 | |
Value | 2,099.70 | |
Amount Shown on Consolidated Balance Sheets | 2,099.70 | |
Commercial mortgage-backed securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 624.5 | |
Value | 691.7 | |
Amount Shown on Consolidated Balance Sheets | 691.7 | |
Other asset-backed securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 465.8 | |
Value | 480.4 | |
Amount Shown on Consolidated Balance Sheets | 480.4 | |
Fixed maturities pledged, included in securities pledged | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 19,855.90 | |
Value | 20,705.80 | |
Amount Shown on Consolidated Balance Sheets | 20,705.80 | |
Equity securities, available-for-sale | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 119.4 | |
Value | 134.9 | |
Amount Shown on Consolidated Balance Sheets | 134.9 | |
Mortgage loans on real estate | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 3,396.10 | |
Value | 3,403.90 | |
Amount Shown on Consolidated Balance Sheets | 3,396.10 | |
Policy loans | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 242 | |
Value | 242 | |
Amount Shown on Consolidated Balance Sheets | 242 | |
Short-term Investments | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 15 | |
Value | 15 | |
Amount Shown on Consolidated Balance Sheets | 15 | |
Limited partnerships/corporations | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 180.9 | |
Value | 180.9 | |
Amount Shown on Consolidated Balance Sheets | 180.9 | |
Derivatives | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost | 169.8 | |
Value | 464.4 | |
Amount Shown on Consolidated Balance Sheets | $464.40 | |
[1] | The term "foreign" includes foreign governments, foreign political subdivisions, foreign public utilities and all other bonds of foreign issuers. Substantially all of the Company's foreign securities are denominated in U.S. dollars. |
Schedule_IV_Reinsurance_Inform1
Schedule IV - Reinsurance Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Life insurance in force, gross | $13,738.10 | $14,684.50 | $15,765.30 |
Life insurance in force, ceded | 14,120.40 | 15,109.50 | 16,247.80 |
Life insurance in force, assumed | 382.3 | 425 | 482.5 |
Life insurance in force, net | 0 | 0 | 0 |
Total premiums, gross | 37.4 | 36.2 | 34 |
Total premiums, ceded | 0.2 | 0.2 | 0.2 |
Total premiums, assumed | 0.1 | 0 | 0.1 |
Total premiums, net | 37.3 | 36 | 33.9 |
Accident and health insurance | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Total premiums, gross | 0.2 | 0.2 | 0.2 |
Total premiums, ceded | 0.2 | 0.2 | 0.2 |
Total premiums, assumed | 0 | 0 | 0 |
Total premiums, net | 0 | 0 | 0 |
Annuities | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Total premiums, gross | 37.2 | 36 | 33.8 |
Total premiums, ceded | 0 | 0 | 0 |
Total premiums, assumed | 0.1 | 0 | 0.1 |
Total premiums, net | $37.30 | $36 | $33.90 |