Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2014 | Nov. 06, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'VOYA RETIREMENT INSURANCE & ANNUITY CO | ' |
Entity Central Index Key | '0000837010 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 55,000 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments: | ' | ' |
Fixed maturities, available-for-sale, at fair value (amortized cost of $19,057.2 as of 2014 and $19,096.7 as of 2013) | $20,495.70 | $19,944.40 |
Fixed maturities, at fair value using the fair value option | 724 | 621.3 |
Equity securities, available-for-sale, at fair value (cost of $106.9 as of 2014 and $119.4 as of 2013) | 122.3 | 134.9 |
Short-term investments | 21.4 | 15 |
Mortgage loans on real estate, net of valuation allowance of $1.2 as of 2014 and 2013 | 3,564.70 | 3,396.10 |
Policy loans | 240.2 | 242 |
Limited partnerships/corporations | 250.8 | 180.9 |
Derivatives | 421.3 | 464.4 |
Securities pledged (amortized cost of $140.9 as of 2014 and $137.9 as of 2013) | 148 | 140.1 |
Total investments | 25,988.40 | 25,139.10 |
Cash and cash equivalents | 429.8 | 378.9 |
Short-term investments under securities loan agreement, including collateral delivered | 166.5 | 135.8 |
Accrued investment income | 296.5 | 285 |
Reinsurance recoverable | 1,945.90 | 2,016.60 |
Deferred policy acquisition costs, Value of business acquired, and Sale inducements to contract owners | 977.1 | 1,189.70 |
Notes receivable from affiliate | 175 | 175 |
Due from affiliates | 62.9 | 62.9 |
Property and equipment | 75.7 | 78.4 |
Other assets | 170.9 | 114 |
Assets held in separate accounts | 62,808.40 | 60,104.90 |
Total assets | 93,097.10 | 89,680.30 |
Liabilities and Shareholder's Equity | ' | ' |
Future policy benefits and contract owner balances | 24,859.90 | 24,589.60 |
Payable for securities purchased | 39.4 | 13.7 |
Payables under securities loan agreement, including collateral held | 398.3 | 264.4 |
Long-term debt | 4.9 | 4.9 |
Due to affiliates | 109.5 | 121.6 |
Derivatives | 143.4 | 216.6 |
Current income tax payable to Parent | 4.8 | 74.1 |
Deferred income taxes | 316.3 | 190.1 |
Other liabilities | 490 | 347 |
Liabilities related to separate accounts | 62,808.40 | 60,104.90 |
Total liabilities | 89,174.90 | 85,926.90 |
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 | 3,673.80 | 3,953.30 |
Accumulated other comprehensive income | 773.2 | 495.4 |
Retained earnings (deficit) | -527.6 | -698.1 |
Total shareholder's equity | 3,922.20 | 3,753.40 |
Total liabilities and shareholder's equity | $93,097.10 | $89,680.30 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parenthetical (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Fixed maturities, amortized cost | $19,057.20 | $19,096.70 |
Equity securities, cost | 106.9 | 119.4 |
Mortgage loans on real estate valuation allowance | 1.2 | 1.2 |
Securities pledged, amortized costs | $140.90 | $137.90 |
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 $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Net investment income | $348.20 | $328.20 | $1,031.90 | $1,019.30 |
Fee income | 198.4 | 189.9 | 587.6 | 547.9 |
Premiums | 27.5 | 7.6 | 56 | 22.7 |
Broker-dealer commission revenue | 61.6 | 61.5 | 184.8 | 180.3 |
Net realized capital gains (losses): | ' | ' | ' | ' |
Total other-than-temporary impairments | -1.9 | -1.6 | -4.2 | -4.5 |
Less: Portion of other-than-temporary impairment losses recognized in Other comprehensive income (loss) | 0 | -0.8 | 0 | -1.8 |
Net other-than-temporary impairments recognized in earnings | -1.9 | -0.8 | -4.2 | -2.7 |
Other net realized capital gains (losses) | -40.2 | -27.3 | -106 | -135.4 |
Total net realized capital gains (losses) | -42.1 | -28.1 | -110.2 | -138.1 |
Other revenue | 1.9 | 2.9 | 3.6 | -2.6 |
Total revenues | 595.5 | 562 | 1,753.70 | 1,629.50 |
Benefits and expenses: | ' | ' | ' | ' |
Interest credited and other benefits to contract owners/policyholders | 225.4 | 204.2 | 688.2 | 536.3 |
Operating expenses | 185 | 178 | 565.8 | 527.9 |
Broker-dealer commission expense | 61.6 | 61.5 | 184.8 | 180.3 |
Net amortization of Deferred policy acquisition costs and Value of business acquired | 63.5 | -15.2 | 90.2 | 31.7 |
Interest expense | 0 | 0.2 | 0 | 0.3 |
Total benefits and expenses | 535.5 | 428.7 | 1,529 | 1,276.50 |
Income (loss) before income taxes | 60 | 133.3 | 224.7 | 353 |
Income tax expense (benefit) | 9.8 | 65.7 | 54.2 | 133.4 |
Net income (loss) | $50.20 | $67.60 | $170.50 | $219.60 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $50.20 | $67.60 | $170.50 | $219.60 |
Other comprehensive income (loss), before tax: | ' | ' | ' | ' |
Unrealized gains/losses on securities | -148.6 | -52.9 | 420.8 | -862.3 |
Other-than-temporary impairments | 1 | 2 | 8.3 | 3.4 |
Pension and other post-employment benefit liability | -0.6 | -0.7 | -1.7 | -1.7 |
Other comprehensive income (loss), before tax | -148.2 | -51.6 | 427.4 | -860.6 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | -49.8 | -45.7 | 149.6 | -326.7 |
Other comprehensive income (loss), after tax | -98.4 | -5.9 | 277.8 | -533.9 |
Comprehensive income (loss) | ($48.20) | $61.70 | $448.30 | ($314.30) |
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, 2012 | $4,261.40 | $2.80 | $4,217.20 | $1,023 | ($981.60) | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | |
Net income (loss) | 219.6 | 0 | 0 | 0 | 219.6 | |
Comprehensive income: | ' | ' | ' | ' | ' | |
Other comprehensive income (loss), after tax | -533.9 | 0 | 0 | -533.9 | 0 | |
Total comprehensive income (loss) | -314.3 | ' | ' | ' | ' | |
Dividends paid and distribution of capital | -174 | 0 | -174 | 0 | 0 | |
Employee related benefits | 0.1 | [1] | 0 | 0.1 | 0 | 0 |
Ending Balance at Sep. 30, 2013 | 3,773.20 | 2.8 | 4,043.30 | 489.1 | -762 | |
Beginning Balance at Dec. 31, 2013 | 3,753.40 | 2.8 | 3,953.30 | 495.4 | -698.1 | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | |
Net income (loss) | 170.5 | 0 | 0 | 0 | 170.5 | |
Comprehensive income: | ' | ' | ' | ' | ' | |
Other comprehensive income (loss), after tax | 277.8 | 0 | 0 | 277.8 | 0 | |
Total comprehensive income (loss) | 448.3 | ' | ' | ' | ' | |
Dividends paid and distribution of capital | -281 | 0 | -281 | 0 | 0 | |
Employee related benefits | 1.5 | 0 | 1.5 | 0 | 0 | |
Ending Balance at Sep. 30, 2014 | $3,922.20 | $2.80 | $3,673.80 | $773.20 | ($527.60) | |
[1] | Less than $0.1. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net cash provided by operating activities | $732.30 | $897 |
Proceeds from the sale, maturity, disposal or redemption of: | ' | ' |
Fixed maturities | 2,215 | 2,609.20 |
Equity securities, available-for-sale | 14.1 | 0.7 |
Mortgage loans on real estate | 314.1 | 177.6 |
Limited partnerships/corporations | 34.9 | 22.6 |
Acquisition of: | ' | ' |
Fixed maturities | -2,290.60 | -3,287.40 |
Equity securities, available-for-sale | 0 | -0.8 |
Mortgage loans on real estate | -482.6 | -587.8 |
Limited partnerships/corporations | -93.2 | -16.5 |
Derivatives, net | -22.9 | -222 |
Policy loans, net | 1.8 | -1.2 |
Short-term investments, net | -6.3 | 447.3 |
Collateral received | 103.2 | -32.3 |
Purchases of fixed assets, net | 0 | -0.2 |
Net cash used in investing activities | -212.5 | -890.8 |
Cash Flows from Financing Activities: | ' | ' |
Deposits received for investment contracts | 1,669.90 | 2,042.70 |
Maturities and withdrawals from investment contracts | -1,946.30 | -1,917.70 |
Receipts on deposit contracts | 124.7 | 87.1 |
Settlements on deposit contracts | -36.2 | -8.5 |
Dividends paid and return of capital distribution | -281 | -174 |
Net cash (used in) provided by financing activities | -468.9 | 29.6 |
Net increase in cash and cash equivalents | 50.9 | 35.8 |
Cash and cash equivalents, beginning of year | 378.9 | 363.4 |
Cash and cash equivalents, end of year | $429.80 | $399.20 |
Business_Basis_of_Presentation
Business, Basis of Presentation and Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Business, Basis of Presentation and Significant Accounting Policies | ' | |
Business, Basis of Presentation and Significant Accounting Policies | ||
Business | ||
Voya Retirement Insurance and Annuity Company ("VRIAC"), which changed its name from ING Life Insurance and Annuity Company on September 1, 2014, is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, "the Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia. | ||
Prior to May 2013, Voya Financial, Inc., (which changed its name from ING U.S., Inc. on April 7, 2014), together with its subsidiaries, including the Company was an indirect, wholly-owned subsidiary of 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. In 2009, ING Group announced the anticipated separation of its global banking and insurance businesses, including the divestiture of Voya Financial, Inc., together with its subsidiaries, including the Company. On April 11, 2013, Voya Financial, Inc. announced plans to rebrand as Voya Financial. On May 2, 2013, the common stock of Voya Financial, Inc. began trading on the New York Stock Exchange under the symbol "VOYA." On May 7, 2013 and May 31, 2013, Voya Financial, Inc. completed its initial public offering of common stock, including the issuance and sale by Voya Financial, 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 Voya Financial, Inc., of 44,201,773 shares of outstanding common stock of Voya Financial, Inc. (collectively, the "IPO"). On September 30, 2013, ING International transferred all of its remaining shares of Voya Financial, Inc. common stock to ING Group. | ||
On October 29, 2013, ING Group completed a sale of 37,950,000 shares of common stock of Voya Financial, Inc. in a registered public offering ("Secondary Offering"), reducing ING Group's ownership of Voya Financial, Inc. to 57%. | ||
On March 25, 2014, ING Group completed a sale of 30,475,000 shares of common stock of Voya Financial, Inc. in a registered public offering (the "March 2014 Offering"). On March 25, 2014, pursuant to the terms of a share repurchase agreement between ING Group and Voya Financial, Inc., Voya Financial, Inc. acquired 7,255,853 shares of its common stock from ING Group (the "March 2014 Direct Share Repurchase") (the March 2014 Offering and the March 2014 Direct Share Repurchase collectively, the "March 2014 Transactions"). Upon completion of the March 2014 Transactions, ING Group's ownership of Voya Financial, Inc. was reduced to approximately 43%. | ||
On September 8, 2014, ING Group completed a sale of 22,277,993 shares of common stock of Voya Financial, Inc. in a registered public offering (the "September 2014 Offering"). Also on September 8, 2014, pursuant to the terms of a share repurchase agreement between ING Group and Voya Financial, Inc., Voya Financial, Inc. acquired 7,722,007 shares of its common stock from ING Group (the "September 2014 Direct Share Buyback") (the September 2014 Offering and the September 2014 Direct Share Buyback collectively, the "September 2014 Transactions"). Upon completion of the September 2014 Transactions, ING Group's ownership of Voya Financial, Inc. was reduced to 32.5%. Pursuant to an agreement with the European Union, ING Group is required to divest its remaining ownership stake in Voya Financial, Inc., together with its subsidiaries, including the Company by the end of 2016. | ||
VRIAC is a direct, wholly owned subsidiary of Voya Holdings Inc. (formerly Lion Connecticut Holdings Inc.) ("Parent"), which is a direct, wholly owned subsidiary of Voya Financial, Inc. | ||
The Company offers qualified and nonqualified annuity contracts 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. Company products also include programs offered to qualified 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 retirement savings plan administrative services. | ||
The Company has one operating segment. | ||
Basis of Presentation | ||
The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. 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 Condensed 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 Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, Voya Financial Partners, LLC ("VFP"), which changed its name from ING Financial Advisers, LLC on September 1, 2014, and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated. | ||
The accompanying Condensed Consolidated Financial Statements reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position of the Company as of September 30, 2014, its results of operations and comprehensive income for the three and nine months ended September 30, 2014 and 2013, and its changes in shareholder's equity and statements of cash flows for the nine months ended September 30, 2014 and 2013, in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2013 Consolidated Balance Sheet is from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 ("Annual Report on Form 10-K"), filed with the SEC. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K. | ||
Certain reclassifications have been made to prior year financial information to conform to the current year classifications. During 2014, certain changes were made to the Statements of Cash Flows for the nine months ended September 30, 2013 to reclassify $78.6 from Operating Activities to Financing Activities for reinsurance transactions that use the deposit method of accounting. | ||
Adoption of New Pronouncements | ||
Presentation of Unrecognized Tax Benefits | ||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, "Income Taxes (Accounting Standards Codification ("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 were adopted prospectively by the Company on January 1, 2014 to unrecognized tax benefits existing on that date. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the guidance is consistent with that previously 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 were adopted by the Company on January 1, 2014. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the Company did not have any fixed obligations under joint and several liable arrangements as of January 1, 2014. | ||
Fees Paid to the Federal Government by Health Insurers | ||
In July 2011, the FASB issued ASU 2011-06, "Other Expenses (ASC 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 were adopted by the Company on January 1, 2014, when the fee initially became effective. The adoption of ASU 2011-06 had no effect on the Company's financial condition, results of operations or cash flows, as the amount of net premium written for qualifying health insurance by the Company in 2014 is expected to be below the $25.0 threshold as defined by the Acts and, thus, not subject to the fee. | ||
Future Adoption of Accounting Pronouncements | ||
Going Concern | ||
In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements-Going Concern (ASC Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU 2014-15"), which requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The provisions of ASU 2014-15 will not affect a company's financial condition, results of operation, or cash flows, but require disclosure if management determines there is substantial doubt, including management’s plans to alleviate or mitigate the conditions or events that raise substantial doubt. | ||
The provisions of ASU 2014-15 are effective for annual periods ending after December 15, 2016, and annual and interim periods thereafter. The Company does not expect ASU 2014-15 to have an impact. | ||
Repurchase Agreements | ||
In June 2014, the FASB issued ASU 2014-11, "Transfers and Servicing (ASC Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures" ("ASU 2014-11"), which (1) changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and (2) requires separate accounting for a transfer of a financial asset executed with a repurchase agreement with the same counterparty. This will result in secured borrowing accounting for the repurchase agreement. The amendments also require additional disclosures for certain transactions accounted for as a sale and for repurchase agreements, securities lending transactions and repurchase-to-maturity transactions that are accounted for as secured borrowings. | ||
The provisions of ASU 2014-11 are effective for the first interim or annual period beginning after December 15, 2014, with the exception of disclosure amendments for repurchase agreements, securities lending transactions and repurchase-to-maturity transactions that are accounted for as secured borrowings, which are effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The Company does not expect ASU 2014-11 to have an impact on its financial condition or results of operations, as the Company has not historically met the requirements for sale accounting treatment for such secured borrowing arrangements. The Company is currently in the process of determining the impact of adoption of the disclosure provisions of ASU 2014-11. | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (ASC Topic 606)" ("ASU 2014-09"), which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized when, or as, the entity satisfies a performance obligation under the contract. The standard also requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. | ||
The provisions of ASU 2014-09 are effective retrospectively for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2014-09. | ||
Discontinued Operations and Disposals | ||
In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements (ASC Topic 205) and Property, Plant, and Equipment (ASC Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" ("ASU 2014-08"), which requires the disposal of a component of an entity to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on the entity's operations and financial results. The component should be reported in discontinued operations when it meets the criteria to be classified as held for sale, is disposed of by sale or is disposed of other than by sale. | ||
The amendments also require additional disclosures about discontinued operations, including disclosures about an entity’s significant continuing involvement with a discontinued operation and disclosures for a disposal of an individually significant component of an entity that does not qualify for discontinued operations. | ||
The provisions of ASU 2014-08 are effective for annual periods beginning after December 15, 2014 and for interim periods beginning after December 15, 2015. The amendments should be applied prospectively to disposals and classifications as held for sale that occur within those periods. |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Fixed Maturities and Equity Securities | |||||||||||||||||||||||||||||||||
Available-for-sale and fair value option ("FVO") fixed maturities and equity securities were as follows as of September 30, 2014: | |||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Embedded Derivatives(2) | Fair | OTTI(3) | ||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||
Capital | Capital | ||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 647.9 | $ | 85.6 | $ | 0.1 | $ | — | $ | 733.4 | $ | — | |||||||||||||||||||||
U.S. Government agencies and authorities | 54.8 | 1.3 | — | — | 56.1 | — | |||||||||||||||||||||||||||
State, municipalities and political subdivisions | 152.7 | 11.4 | 0.5 | — | 163.6 | — | |||||||||||||||||||||||||||
U.S. corporate securities | 10,311.50 | 798.9 | 61.8 | — | 11,048.60 | 1.6 | |||||||||||||||||||||||||||
Foreign securities(1): | |||||||||||||||||||||||||||||||||
Government | 347.8 | 24.5 | 4.8 | — | 367.5 | — | |||||||||||||||||||||||||||
Other | 5,335.40 | 352.4 | 30.6 | — | 5,657.20 | — | |||||||||||||||||||||||||||
Total foreign securities | 5,683.20 | 376.9 | 35.4 | — | 6,024.70 | — | |||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Agency | 1,589.50 | 120.3 | 5 | 16.3 | 1,721.10 | 0.2 | |||||||||||||||||||||||||||
Non-Agency | 238.2 | 52.9 | 2 | 11.8 | 300.9 | 11.7 | |||||||||||||||||||||||||||
Total Residential mortgage-backed securities | 1,827.70 | 173.2 | 7 | 28.1 | 2,022.00 | 11.9 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities | 842.6 | 63.1 | 0.4 | — | 905.3 | — | |||||||||||||||||||||||||||
Other asset-backed securities | 401.7 | 14.1 | 1.8 | — | 414 | 3 | |||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 19,922.10 | 1,524.50 | 107 | 28.1 | 21,367.70 | 16.5 | |||||||||||||||||||||||||||
Less: Securities pledged | 140.9 | 10 | 2.9 | — | 148 | — | |||||||||||||||||||||||||||
Total fixed maturities | 19,781.20 | 1,514.50 | 104.1 | 28.1 | 21,219.70 | 16.5 | |||||||||||||||||||||||||||
Equity securities | 106.9 | 15.4 | — | — | 122.3 | — | |||||||||||||||||||||||||||
Total fixed maturities and equity securities investments | $ | 19,888.10 | $ | 1,529.90 | $ | 104.1 | $ | 28.1 | $ | 21,342.00 | $ | 16.5 | |||||||||||||||||||||
(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 Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
(3) Represents Other-than Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss). | |||||||||||||||||||||||||||||||||
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 Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
(3) Represents OTTI reported as a component of Other comprehensive income (loss). | |||||||||||||||||||||||||||||||||
The amortized cost and fair value of fixed maturities, including securities pledged, as of September 30, 2014, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("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 | $ | 803.4 | $ | 818.9 | |||||||||||||||||||||||||||||
After one year through five years | 3,945.20 | 4,212.60 | |||||||||||||||||||||||||||||||
After five years through ten years | 6,060.40 | 6,342.10 | |||||||||||||||||||||||||||||||
After ten years | 6,041.10 | 6,652.80 | |||||||||||||||||||||||||||||||
Mortgage-backed securities | 2,670.30 | 2,927.30 | |||||||||||||||||||||||||||||||
Other asset-backed securities | 401.7 | 414 | |||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 19,922.10 | $ | 21,367.70 | |||||||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013, 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 condensed 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 | |||||||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||
Communications | $ | 1,254.60 | $ | 122 | $ | 7.4 | $ | 1,369.20 | |||||||||||||||||||||||||
Financial | 2,286.80 | 199.4 | 4.5 | 2,481.70 | |||||||||||||||||||||||||||||
Industrial and other companies | 8,962.50 | 550.8 | 70.7 | 9,442.60 | |||||||||||||||||||||||||||||
Transportation | 438.1 | 33 | 2.7 | 468.4 | |||||||||||||||||||||||||||||
Utilities | 2,704.90 | 246.1 | 7.1 | 2,943.90 | |||||||||||||||||||||||||||||
Total | $ | 15,646.90 | $ | 1,151.30 | $ | 92.4 | $ | 16,705.80 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Transportation | 440 | 22.5 | 9.9 | 452.6 | |||||||||||||||||||||||||||||
Utilities | 2,726.50 | 159.5 | 42.3 | 2,843.70 | |||||||||||||||||||||||||||||
Total | $ | 15,475.60 | $ | 853.9 | $ | 322.3 | $ | 16,007.20 | |||||||||||||||||||||||||
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 Accumulated other comprehensive income (loss) ("AOCI") and presented net of related changes in Deferred policy acquisition costs ("DAC"), Value of business acquired ("VOBA") and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Condensed 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 Condensed 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 Condensed 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 September 30, 2014 and December 31, 2013, approximately 56.9% and 50.4%, 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 | |||||||||||||||||||||||||||||||||
The Company engages in dollar repurchase agreements with mortgage-backed securities ("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 also enters into reverse repurchase agreements. These transactions involve a purchase of securities and an agreement to sell substantially the same securities as those purchased. As of September 30, 2014 and December 31, 2013, the Company did not have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements. | |||||||||||||||||||||||||||||||||
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. As of September 30, 2014 and December 31, 2013, the fair value of loaned securities was $100.1 and $97.6, respectively and is included in Securities pledged on the Condensed Consolidated Balance Sheets. As of September 30, 2014 and December 31, 2013, collateral retained by the lending agent and invested in liquid assets on the Company's behalf was $104.2 and $102.7, respectively, and recorded in Short-term investments under securities loan agreements, including collateral delivered on the Condensed Consolidated Balance Sheets. As of September 30, 2014 and December 31, 2013, liabilities to return collateral of $104.2 and $102.7, respectively, were included in Payables under securities loan agreements, including collateral held on the Condensed 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 $0.7 and $1.0 as of September 30, 2014 and December 31, 2013, respectively, is included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
Securitizations | |||||||||||||||||||||||||||||||||
The Company invests in various tranches of securitization entities, including Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("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 the Fair Value Measurements Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO for which changes in fair value are reflected in Other net realized gains (losses) in the Condensed 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 September 30, 2014: | |||||||||||||||||||||||||||||||||
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 | $ | 27.1 | $ | 0.1 | $ | — | $ | — | $ | — | $ | — | $ | 27.1 | $ | 0.1 | |||||||||||||||||
U.S. government, agencies and authorities | 2.5 | — | * | — | — | — | — | 2.5 | — | * | |||||||||||||||||||||||
U.S. corporate, state and municipalities | 1,013.40 | 15.9 | 33.4 | 1.4 | 925.8 | 45 | 1,972.60 | 62.3 | |||||||||||||||||||||||||
Foreign | 453.6 | 9.4 | 9.7 | 0.1 | 496.2 | 25.9 | 959.5 | 35.4 | |||||||||||||||||||||||||
Residential mortgage-backed | 94.2 | 0.4 | 36.5 | 0.3 | 169 | 6.3 | 299.7 | 7 | |||||||||||||||||||||||||
Commercial mortgage-backed | 47.8 | 0.4 | — | — | — | — | 47.8 | 0.4 | |||||||||||||||||||||||||
Other asset-backed | 58.9 | 0.2 | — | — | 18.7 | 1.6 | 77.6 | 1.8 | |||||||||||||||||||||||||
Total | $ | 1,697.50 | $ | 26.4 | $ | 79.6 | $ | 1.8 | $ | 1,609.70 | $ | 78.8 | $ | 3,386.80 | $ | 107 | |||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
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. government, agencies and authorities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
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 | |||||||||||||||||
Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities was 95.3% and 89.7% of the average book value as of September 30, 2014 and December 31, 2013, 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% | ||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||
Six months or less below amortized cost | $ | 1,725.60 | $ | — | $ | 26.5 | $ | — | 320 | — | |||||||||||||||||||||||
More than six months and twelve months or less below amortized cost | 134.4 | — | * | 6.3 | — | * | 36 | 1 | |||||||||||||||||||||||||
More than twelve months below amortized cost | 1,631.50 | 2.3 | 73.6 | 0.6 | 273 | 2 | |||||||||||||||||||||||||||
Total | $ | 3,491.50 | $ | 2.3 | $ | 106.4 | $ | 0.6 | 629 | 3 | |||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 27.2 | $ | — | $ | 0.1 | $ | — | 2 | — | |||||||||||||||||||||||
U.S. government, agencies and authorities | 2.5 | — | — | * | — | 1 | — | ||||||||||||||||||||||||||
U.S. corporate, state and municipalities | 2,034.90 | — | * | 62.3 | — | * | 335 | 1 | |||||||||||||||||||||||||
Foreign | 994.9 | — | 35.4 | — | 148 | — | |||||||||||||||||||||||||||
Residential mortgage-backed | 306.7 | — | 7 | — | 122 | — | |||||||||||||||||||||||||||
Commercial mortgage-backed | 48.2 | — | 0.4 | — | 5 | — | |||||||||||||||||||||||||||
Other asset-backed | 77.1 | 2.3 | 1.2 | 0.6 | 16 | 2 | |||||||||||||||||||||||||||
Total | $ | 3,491.50 | $ | 2.3 | $ | 106.4 | $ | 0.6 | 629 | 3 | |||||||||||||||||||||||
* Less than $0.1. | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 161.5 | $ | — | $ | 2.9 | $ | — | 4 | — | |||||||||||||||||||||||
U.S. government, agencies and authorities | — | — | — | — | — | — | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
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. For the nine months ended September 30, 2014, the Company had no new troubled debt restructurings for private placement or commercial mortgage loans. For the year ended 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 September 30, 2014, these loans have repaid $7.5 in principal. | |||||||||||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, 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 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: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
Collective valuation allowance for losses | (1.2 | ) | (1.2 | ) | |||||||||||||||||||||||||||||
Total net commercial mortgage loans | $ | 3,564.70 | $ | 3,396.10 | |||||||||||||||||||||||||||||
The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Collective valuation allowance for losses, balance at January 1 | $ | 1.2 | $ | 1.3 | |||||||||||||||||||||||||||||
Addition to (reduction of) allowance for losses | — | (0.1 | ) | ||||||||||||||||||||||||||||||
Collective valuation allowance for losses, end of period | $ | 1.2 | $ | 1.2 | |||||||||||||||||||||||||||||
There were no impairments taken on the mortgage loan portfolio for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||||||||||
The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Impaired loans with allowances for losses | $ | — | $ | — | |||||||||||||||||||||||||||||
Impaired loans without allowances for losses | 37.1 | 42.9 | |||||||||||||||||||||||||||||||
Subtotal | 37.1 | 42.9 | |||||||||||||||||||||||||||||||
Less: Allowances for losses on impaired loans | — | — | |||||||||||||||||||||||||||||||
Impaired loans, net | $ | 37.1 | $ | 42.9 | |||||||||||||||||||||||||||||
Unpaid principal balance of impaired loans | $ | 38.6 | $ | 44.4 | |||||||||||||||||||||||||||||
The following table presents information on restructured loans as of the dates indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Troubled debt restructured loans | $ | 31.9 | $ | 37.5 | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
There were no mortgage loans in the Company's portfolio in process of foreclosure as of September 30, 2014 and December 31, 2013. There were no loans 90 days or more past due or loans in arrears with respect to principal and interest as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impaired loans, average investment during the period (amortized cost)(1) | $ | 37.1 | $ | 24.2 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on an accrual basis(1) | 0.5 | 0.5 | |||||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on a cash basis(1) | 0.5 | 0.5 | |||||||||||||||||||||||||||||||
Interest income recognized on troubled debt restructured loans, on an accrual basis | 0.4 | 0.4 | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impaired loans, average investment during the period (amortized cost)(1) | $ | 40 | $ | 24.3 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on an accrual basis(1) | 1.7 | 0.7 | |||||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on a cash basis(1) | 1.5 | 0.7 | |||||||||||||||||||||||||||||||
Interest income recognized on troubled debt restructured loans, on an accrual basis | 1.4 | 0.4 | |||||||||||||||||||||||||||||||
(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 a 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: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Loan-to-Value Ratio: | |||||||||||||||||||||||||||||||||
0% - 50% | $ | 424.2 | $ | 495.7 | |||||||||||||||||||||||||||||
>50% - 60% | 895.3 | 894.5 | |||||||||||||||||||||||||||||||
>60% - 70% | 2,099.90 | 1,879.50 | |||||||||||||||||||||||||||||||
>70% - 80% | 134.7 | 114.9 | |||||||||||||||||||||||||||||||
>80% and above | 11.8 | 12.7 | |||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for losses. | |||||||||||||||||||||||||||||||||
The following table presents the DSC ratios as of the dates indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | |||||||||||||||||||||||||||||||||
Greater than 1.5x | $ | 2,638.90 | $ | 2,388.50 | |||||||||||||||||||||||||||||
>1.25x - 1.5x | 549.7 | 542.4 | |||||||||||||||||||||||||||||||
>1.0x - 1.25x | 248.9 | 275.8 | |||||||||||||||||||||||||||||||
Less than 1.0x | 126.7 | 190.5 | |||||||||||||||||||||||||||||||
Commercial mortgage loans secured by land or construction loans | 1.7 | 0.1 | |||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for 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: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | ||||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | ||||||||||||||||||||||||||||||
Commercial Mortgage Loans by U.S. Region: | |||||||||||||||||||||||||||||||||
Pacific | $ | 802.8 | 22.5 | % | $ | 752.8 | 22.3 | % | |||||||||||||||||||||||||
South Atlantic | 750.3 | 21 | % | 707.8 | 20.8 | % | |||||||||||||||||||||||||||
West South Central | 443.2 | 12.4 | % | 467.1 | 13.7 | % | |||||||||||||||||||||||||||
Middle Atlantic | 486.8 | 13.7 | % | 411.4 | 12.1 | % | |||||||||||||||||||||||||||
East North Central | 422.7 | 11.9 | % | 383.1 | 11.3 | % | |||||||||||||||||||||||||||
Mountain | 281.6 | 7.9 | % | 263.9 | 7.8 | % | |||||||||||||||||||||||||||
West North Central | 229.5 | 6.4 | % | 224.9 | 6.6 | % | |||||||||||||||||||||||||||
East South Central | 78.2 | 2.2 | % | 69.6 | 2 | % | |||||||||||||||||||||||||||
New England | 70.8 | 2 | % | 116.7 | 3.4 | % | |||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | 100 | % | $ | 3,397.30 | 100 | % | |||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for losses. | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | ||||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | ||||||||||||||||||||||||||||||
Commercial Mortgage Loans by Property Type: | |||||||||||||||||||||||||||||||||
Retail | $ | 1,167.30 | 32.8 | % | $ | 1,082.10 | 31.9 | % | |||||||||||||||||||||||||
Industrial | 941.4 | 26.4 | % | 972.6 | 28.6 | % | |||||||||||||||||||||||||||
Apartments | 525.8 | 14.7 | % | 445.2 | 13.1 | % | |||||||||||||||||||||||||||
Office | 437.3 | 12.3 | % | 462.1 | 13.6 | % | |||||||||||||||||||||||||||
Hotel/Motel | 150.9 | 4.2 | % | 182.8 | 5.4 | % | |||||||||||||||||||||||||||
Mixed Use | 143.4 | 4 | % | 70.9 | 2.1 | % | |||||||||||||||||||||||||||
Other | 199.8 | 5.6 | % | 181.6 | 5.3 | % | |||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | 100 | % | $ | 3,397.30 | 100 | % | |||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for losses. | |||||||||||||||||||||||||||||||||
The following table sets forth the breakdown of mortgages by year of origination as of the dates indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Year of Origination: | |||||||||||||||||||||||||||||||||
2014 | $ | 445.8 | $ | — | |||||||||||||||||||||||||||||
2013 | 767.1 | 785.2 | |||||||||||||||||||||||||||||||
2012 | 889.2 | 908.1 | |||||||||||||||||||||||||||||||
2011 | 717.4 | 792.8 | |||||||||||||||||||||||||||||||
2010 | 108.6 | 121.1 | |||||||||||||||||||||||||||||||
2009 | 39.1 | 68.4 | |||||||||||||||||||||||||||||||
2008 and prior | 598.7 | 721.7 | |||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for 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 tables identify the Company's credit-related and intent-related impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.6 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | — | — | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | 0.3 | 13 | 0.4 | 14 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Other asset-backed | — | * | 1 | 0.2 | 1 | ||||||||||||||||||||||||||||
Equity securities | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Total | $ | 1.9 | 16 | $ | 0.8 | 17 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.7 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | 1.2 | 5 | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | 1.2 | 22 | 2.2 | 32 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 0.1 | 2 | 0.2 | 3 | |||||||||||||||||||||||||||||
Other asset-backed | — | * | 1 | 0.2 | 1 | ||||||||||||||||||||||||||||
Equity securities | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Total | $ | 4.2 | 32 | $ | 2.7 | 37 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
The above tables include $0.3 and $1.2 of write-downs related to credit impairments for the three and nine months ended September 30, 2014, respectively, in Other-than-temporary impairments, which are recognized in the Condensed Consolidated Statements of Operations. The remaining $1.6 and $3.0 in write-downs for the three and nine months ended September 30, 2014, respectively, are related to intent impairments. | |||||||||||||||||||||||||||||||||
The above tables include $0.7 and $2.5 and of write-downs related to credit impairments for the three and nine months ended September 30, 2013, respectively, in Other-than-temporary impairments, which are recognized in the Condensed Consolidated Statements of Operations. The remaining $0.1 and $0.2 in write-downs for the three and nine months ended September 30, 2013, respectively, are related to intent impairments. | |||||||||||||||||||||||||||||||||
The following tables summarize these intent impairments, which are also recognized in earnings, by type for the periods indicated: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.6 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | — | — | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | — | — | — | * | 2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Other asset-backed | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 1.6 | 2 | $ | 0.1 | 3 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.6 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | 1.2 | 5 | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | 0.1 | 2 | — | * | 2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 0.1 | 2 | 0.2 | 3 | |||||||||||||||||||||||||||||
Other asset-backed | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 3 | 11 | $ | 0.2 | 5 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
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 tables identify 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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Balance at July 1 | $ | 19 | $ | 20.2 | |||||||||||||||||||||||||||||
Additional credit impairments: | |||||||||||||||||||||||||||||||||
On securities not previously impaired | — | 0.3 | |||||||||||||||||||||||||||||||
On securities previously impaired | 0.3 | 0.4 | |||||||||||||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||||||||||
Securities sold, matured, prepaid or paid down | 1.1 | 1.1 | |||||||||||||||||||||||||||||||
Balance at September 30 | $ | 18.2 | $ | 19.8 | |||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 19.6 | $ | 20 | |||||||||||||||||||||||||||||
Additional credit impairments: | |||||||||||||||||||||||||||||||||
On securities not previously impaired | 0.7 | 1.1 | |||||||||||||||||||||||||||||||
On securities previously impaired | 0.5 | 1.4 | |||||||||||||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||||||||||
Securities sold, matured, prepaid or paid down | 2.6 | 2.7 | |||||||||||||||||||||||||||||||
Balance at September 30 | $ | 18.2 | $ | 19.8 | |||||||||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||||||||||
The following tables summarize Net investment income for the periods indicated: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Fixed maturities | $ | 306.4 | $ | 292.2 | $ | 904.7 | $ | 900.5 | |||||||||||||||||||||||||
Equity securities, available-for-sale | 0.7 | 1.7 | 5.2 | 1.6 | |||||||||||||||||||||||||||||
Mortgage loans on real estate | 41.7 | 39 | 123.5 | 116.5 | |||||||||||||||||||||||||||||
Policy loans | 3.4 | 3.2 | 10 | 9.6 | |||||||||||||||||||||||||||||
Short-term investments and cash equivalents | 0.1 | 0.2 | 0.4 | 0.7 | |||||||||||||||||||||||||||||
Other | 9 | 3.9 | 26.5 | 26.8 | |||||||||||||||||||||||||||||
Gross investment income | 361.3 | 340.2 | 1,070.30 | 1,055.70 | |||||||||||||||||||||||||||||
Less: Investment expenses | 13.1 | 12 | 38.4 | 36.4 | |||||||||||||||||||||||||||||
Net investment income | $ | 348.2 | $ | 328.2 | $ | 1,031.90 | $ | 1,019.30 | |||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, 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 Condensed 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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale, including securities pledged | $ | (6.8 | ) | $ | (6.5 | ) | $ | (6.5 | ) | $ | (8.7 | ) | |||||||||||||||||||||
Fixed maturities, at fair value option | (34.7 | ) | (26.0 | ) | (58.2 | ) | (131.1 | ) | |||||||||||||||||||||||||
Equity securities, available-for-sale | — | 0.1 | 1.3 | 0.1 | |||||||||||||||||||||||||||||
Derivatives | 11.5 | (10.1 | ) | (1.4 | ) | (71.9 | ) | ||||||||||||||||||||||||||
Embedded derivative - fixed maturities | 0.4 | (3.6 | ) | (0.9 | ) | (20.8 | ) | ||||||||||||||||||||||||||
Embedded derivative - product guarantees | (12.5 | ) | 17.9 | (44.5 | ) | 94.4 | |||||||||||||||||||||||||||
Other investments | — | 0.1 | — | (0.1 | ) | ||||||||||||||||||||||||||||
Net realized capital gains (losses) | $ | (42.1 | ) | $ | (28.1 | ) | $ | (110.2 | ) | $ | (138.1 | ) | |||||||||||||||||||||
After-tax net realized capital gains (losses) | $ | (27.4 | ) | $ | (46.9 | ) | $ | (71.6 | ) | $ | (120.3 | ) | |||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Proceeds on sales | $ | 308.7 | $ | 283.1 | $ | 1,278.70 | $ | 1,206.30 | |||||||||||||||||||||||||
Gross gains | 1.3 | 1.4 | 22.2 | 10.6 | |||||||||||||||||||||||||||||
Gross losses | 6.9 | 8.1 | 27 | 16.4 | |||||||||||||||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||
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 fixed index annuity ("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 variable fixed income portfolios 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 for which the 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, Future policy benefits and contract owner account balances and Other liabilities, respectively, on the Condensed 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 Condensed Consolidated Statements of Operations. Changes in fair value of embedded derivatives with reinsurance agreements are reported in Interest credited and other benefits to contract owners/policyholders in the Condensed 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: | ||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
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 | $ | 575.8 | $ | 94.5 | $ | — | $ | 763.3 | $ | 81 | $ | 0.2 | ||||||||||||
Foreign exchange contracts | 51.2 | 4.4 | — | 51.2 | 2.2 | 0.6 | ||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Interest rate contracts | 26,969.90 | 310 | 138.7 | 21,442.70 | 367.6 | 206.2 | ||||||||||||||||||
Foreign exchange contracts | 130.1 | 5.9 | 4.7 | 145.9 | 5.5 | 9.6 | ||||||||||||||||||
Equity contracts | 15.9 | — | — | * | 9.1 | — | * | — | ||||||||||||||||
Credit contracts | 384 | 6.5 | — | 384 | 8.1 | — | ||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments | N/A | 28.1 | — | N/A | 29 | — | ||||||||||||||||||
Within annuity products | N/A | — | 71.3 | N/A | — | 23.1 | ||||||||||||||||||
Within reinsurance agreements | N/A | — | (24.4 | ) | N/A | — | (54.0 | ) | ||||||||||||||||
Total | $ | 449.4 | $ | 190.3 | $ | 493.4 | $ | 185.7 | ||||||||||||||||
* Less than $0.1. | ||||||||||||||||||||||||
-1 | Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value. | |||||||||||||||||||||||
N/A - Not Applicable | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of September 30, 2014 and December 31, 2013. 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 that do not qualify as effective accounting hedges under ASC Topic 815. | ||||||||||||||||||||||||
Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("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: | ||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 384 | $ | 6.5 | $ | — | ||||||||||||||||||
Foreign exchange contracts | 181.3 | 10.3 | 4.7 | |||||||||||||||||||||
Interest rate contracts | 27,545.70 | 404.5 | 138.7 | |||||||||||||||||||||
421.3 | 143.4 | |||||||||||||||||||||||
Counterparty netting(1) | (143.4 | ) | (143.4 | ) | ||||||||||||||||||||
Cash collateral netting(1) | (231.4 | ) | — | |||||||||||||||||||||
Securities collateral netting(1) | (4.1 | ) | — | |||||||||||||||||||||
Net receivables/payables | $ | 42.4 | $ | — | ||||||||||||||||||||
(1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting rules. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 384 | $ | 8.1 | $ | — | ||||||||||||||||||
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. | ||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||
Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties, collateral to assure that 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 Condensed 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 Condensed Consolidated Balance Sheets. As of September 30, 2014, the Company held $160.7 and $71.1 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. 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. In addition, as of September 30, 2014, the Company delivered $47.9 of securities and held $4.2 securities as collateral. As of December 31, 2013, the Company delivered $42.5 of securities and held $16.3 of securities as collateral. | ||||||||||||||||||||||||
Net realized gains (losses) on derivatives were as follows for the periods indicated: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Derivatives: Qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | 0.1 | $ | — | $ | 0.1 | $ | 0.1 | ||||||||||||||||
Foreign exchange contracts | 0.1 | — | 0.4 | — | ||||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(2) | ||||||||||||||||||||||||
Interest rate contracts | 9.1 | (8.5 | ) | (6.5 | ) | (86.4 | ) | |||||||||||||||||
Foreign exchange contracts | 2.3 | (4.1 | ) | 2.3 | 7.9 | |||||||||||||||||||
Equity contracts | — | 0.7 | 1 | 2.4 | ||||||||||||||||||||
Credit contracts | (0.1 | ) | 1.8 | 1.3 | 4.1 | |||||||||||||||||||
Managed custody guarantees | — | 1 | 0.1 | 1.1 | ||||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments(2) | 0.4 | (3.6 | ) | (0.9 | ) | (20.8 | ) | |||||||||||||||||
Within annuity products(2) | (12.5 | ) | 16.9 | (44.6 | ) | 93.3 | ||||||||||||||||||
Within reinsurance agreements(3) | 11.8 | 5.3 | (29.6 | ) | 51.1 | |||||||||||||||||||
Total | $ | 11.2 | $ | 9.5 | $ | (76.4 | ) | $ | 52.8 | |||||||||||||||
(1) Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses) in the Condensed 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 Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2014 and 2013, ineffective amounts were immaterial. | ||||||||||||||||||||||||
(2) Changes in value are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||
(3) Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Condensed 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. As of September 30, 2014, the fair values of credit default swaps of $6.5 were included in Derivatives assets and there were no credit default swaps included in Derivatives liabilities on the Condensed Consolidated Balance Sheets. As of December 31, 2013, the fair values of credit default swaps of $8.1 were included in Derivatives assets and there were no credit default swaps included in Derivatives liabilities, on the Condensed Consolidated Balance Sheets. As of September 30, 2014 and December 31, 2013, the maximum potential future exposure to the Company was $384.0 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 | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||||||||||||||
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 ASU 2011-04, "Fair Value Measurements (ASC Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP" ("ASU 2011-04"). 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), as described in the Fair Value Measurements Note in the Consolidated Financial Statements in Part II, Item 8. of the Company's Annual Report on Form 10-K. 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. | ||||||||||||||||||||||||||||||||||||||||||||
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 September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 676.5 | $ | 56.9 | $ | — | $ | 733.4 | ||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | — | 56.1 | — | 56.1 | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate, state and municipalities | — | 10,825.40 | 386.8 | 11,212.20 | ||||||||||||||||||||||||||||||||||||||||
Foreign(1) | — | 5,879.80 | 144.9 | 6,024.70 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,003.00 | 19 | 2,022.00 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 886.4 | 18.9 | 905.3 | ||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | — | 411.6 | 2.4 | 414 | ||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 676.5 | 20,119.20 | 572 | 21,367.70 | ||||||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 84.9 | — | 37.4 | 122.3 | ||||||||||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 404.5 | — | 404.5 | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 10.3 | — | 10.3 | ||||||||||||||||||||||||||||||||||||||||
Credit contracts | — | 6.5 | — | 6.5 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 616.3 | 1.4 | — | 617.7 | ||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 57,997.50 | 4,797.30 | 13.6 | 62,808.40 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 59,375.20 | $ | 25,339.20 | $ | 623 | $ | 85,337.40 | ||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
FIA | $ | — | $ | — | $ | 26.3 | $ | 26.3 | ||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | 45 | 45 | ||||||||||||||||||||||||||||||||||||||||
Other derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 138.7 | — | 138.7 | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 4.7 | — | 4.7 | ||||||||||||||||||||||||||||||||||||||||
Embedded derivative on reinsurance | — | (24.4 | ) | — | (24.4 | ) | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 119 | $ | 71.3 | $ | 190.3 | ||||||||||||||||||||||||||||||||||||
(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, 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 | ||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
(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 Condensed 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. | ||||||||||||||||||||||||||||||||||||||||||||
Transfers in and out of Level 1 and 2 | ||||||||||||||||||||||||||||||||||||||||||||
There were no securities transferred between Level 1 and Level 2 for the three and nine months ended September 30, 2014 and 2013. 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 three months ended September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value as of July 1 | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
Realized/Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) Included in: | ||||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 271.4 | (0.1 | ) | (9.9 | ) | 17.7 | — | — | (1.1 | ) | 125.3 | (16.5 | ) | 386.8 | (0.1 | ) | ||||||||||||||||||||||||||||
Foreign(1) | 145.6 | — | (0.7 | ) | — | — | — | — | — | — | 144.9 | — | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 21.2 | (0.9 | ) | 0.3 | 3.3 | — | — | — | 1.7 | (6.6 | ) | 19 | (0.9 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | 18.9 | — | — | — | — | — | 18.9 | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 2.4 | — | — | — | — | — | — | — | — | 2.4 | — | |||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 440.6 | (1.0 | ) | (10.3 | ) | 39.9 | — | — | (1.1 | ) | 127 | (23.1 | ) | 572 | (1.0 | ) | ||||||||||||||||||||||||||||
Equity securities, available-for-sale | 37.2 | — | 0.2 | — | — | — | — | — | — | 37.4 | — | |||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | (32.0 | ) | (11.9 | ) | — | — | (1.1 | ) | — | — | — | — | (45.0 | ) | — | |||||||||||||||||||||||||||||
FIA(2) | (25.7 | ) | (0.6 | ) | — | — | — | — | — | — | — | (26.3 | ) | — | ||||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 15.9 | — | — | 4.7 | — | (1.3 | ) | — | 0.9 | (6.6 | ) | 13.6 | — | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results 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 nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | 5.1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (5.1 | ) | $ | — | $ | — | |||||||||||||||||||||
U.S. corporate, state and municipalities | 145.3 | (0.2 | ) | (1.1 | ) | 107.7 | — | — | (4.1 | ) | 139.2 | — | 386.8 | (0.2 | ) | |||||||||||||||||||||||||||||
Foreign(1) | 42.8 | — | 1.2 | 56.3 | — | — | — | 66.8 | (22.2 | ) | 144.9 | — | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 23.7 | (1.6 | ) | 0.4 | 3.5 | — | — | — | — | (7.0 | ) | 19 | (1.6 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | 18.9 | — | — | — | — | — | 18.9 | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 17.7 | 0.8 | (0.6 | ) | — | — | — | (8.1 | ) | — | (7.4 | ) | 2.4 | — | ||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 234.6 | (1.0 | ) | (0.1 | ) | 186.4 | — | — | (12.2 | ) | 206 | (41.7 | ) | 572 | (1.8 | ) | ||||||||||||||||||||||||||||
Equity securities, available-for-sale | 35.9 | — | 1.5 | — | — | — | — | — | — | 37.4 | — | |||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | — | (41.5 | ) | — | — | (3.5 | ) | — | — | — | — | (45.0 | ) | — | ||||||||||||||||||||||||||||||
FIA(2) | (23.1 | ) | (3.0 | ) | — | — | (0.2 | ) | — | — | — | — | (26.3 | ) | — | |||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 13.1 | 0.1 | — | 10.6 | — | (4.5 | ) | — | 0.9 | (6.6 | ) | 13.6 | — | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results 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 three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value as of July 1 | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
Realized/Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) Included in: | ||||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 139.9 | (0.1 | ) | (0.1 | ) | — | — | — | (0.8 | ) | — | — | 138.9 | (0.1 | ) | |||||||||||||||||||||||||||||
Foreign(1) | 18.7 | — | 1 | — | — | — | (4.0 | ) | 4.7 | — | 20.4 | — | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 30.8 | (0.3 | ) | 0.2 | 27 | — | — | — | — | (0.8 | ) | 56.9 | (0.3 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 24.7 | 0.3 | (0.2 | ) | — | — | — | (0.5 | ) | — | — | 24.3 | 0.3 | |||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 214.1 | (0.1 | ) | 0.9 | 27 | — | — | (5.3 | ) | 4.7 | (0.8 | ) | 240.5 | (0.1 | ) | |||||||||||||||||||||||||||||
Equity securities, available-for-sale | 36.9 | — | — | — | — | — | — | — | (0.2 | ) | 36.7 | — | ||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | (28.0 | ) | 18.5 | — | (1.5 | ) | — | — | — | — | — | (11.0 | ) | — | ||||||||||||||||||||||||||||||
FIA(2) | (21.1 | ) | (0.6 | ) | — | — | — | — | — | — | — | (21.7 | ) | — | ||||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 19.9 | — | — | 0.7 | — | (0.2 | ) | — | — | (14.0 | ) | 6.4 | — | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results 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 nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 154.6 | (0.3 | ) | (1.0 | ) | — | — | (6.0 | ) | (3.2 | ) | 17.6 | (22.8 | ) | 138.9 | (0.3 | ) | |||||||||||||||||||||||||||
Foreign(1) | 24.6 | — | 1 | — | — | (1.9 | ) | (10.6 | ) | 7.3 | — | 20.4 | — | |||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 9.1 | (1.0 | ) | 0.1 | 49.4 | — | — | — | — | (0.7 | ) | 56.9 | (1.0 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 33.2 | 1.9 | (0.5 | ) | — | — | — | (10.3 | ) | — | — | 24.3 | 0.7 | |||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 221.5 | 0.6 | (0.4 | ) | 49.4 | — | (7.9 | ) | (24.1 | ) | 24.9 | (23.5 | ) | 240.5 | (0.6 | ) | ||||||||||||||||||||||||||||
Equity securities, available-for-sale | 17 | (0.1 | ) | 2.3 | — | — | — | — | 34.5 | (17.0 | ) | 36.7 | — | |||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | (102.0 | ) | 95.7 | — | (4.7 | ) | — | — | — | — | — | (11.0 | ) | — | ||||||||||||||||||||||||||||||
FIA(2) | (20.4 | ) | (1.3 | ) | — | — | — | — | — | — | — | (21.7 | ) | — | ||||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 16.3 | — | — | 8 | — | (10.1 | ) | — | 2.2 | (10.0 | ) | 6.4 | 0.1 | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results in a net zero impact on Net income (loss) for the Company. | ||||||||||||||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, the transfers in and out of Level 3 for fixed maturities and equity securities, as well as 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 policyholder behavior assumptions, such as lapses and partial withdrawals. 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 the Company's experience may be limited on certain products. | ||||||||||||||||||||||||||||||||||||||||||||
The following table presents the unobservable inputs for Level 3 fair value measurements as of September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Range(1) | ||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input | FIA | Stabilizer / MCG | ||||||||||||||||||||||||||||||||||||||||||
Interest rate implied volatility | — | 0.2% to 7.3% | ||||||||||||||||||||||||||||||||||||||||||
Nonperformance risk | 0.08% to 0.94% | 0.08% to 0.94% | ||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions: | ||||||||||||||||||||||||||||||||||||||||||||
Partial Withdrawals | 0% to 2% | — | ||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% to 45% | (2) | 0% to 50% | (3) | ||||||||||||||||||||||||||||||||||||||||
Policyholder Deposits(4) | — | 0% to 65% | (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. | ||||||||||||||||||||||||||||||||||||||||||||
(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% | 0-50% | 0-15% | ||||||||||||||||||||||||||||||||||||||
Stabilizer with Recordkeeping Agreements | 12 | % | 0-50% | 0-25% | 0-65% | 0-30% | ||||||||||||||||||||||||||||||||||||||
Aggregate of all plans | 100 | % | 0-50% | 0-25% | 0-65% | 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, 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: | ||||||||||||||||||||||||||||||||||||||||||||
Partial Withdrawals | 0% to 2% | — | ||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% to 48% | (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. | ||||||||||||||||||||||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 21,367.70 | $ | 21,367.70 | $ | 20,705.80 | $ | 20,705.80 | ||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 122.3 | 122.3 | 134.9 | 134.9 | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | 3,564.70 | 3,667.60 | 3,396.10 | 3,403.90 | ||||||||||||||||||||||||||||||||||||||||
Policy loans | 240.2 | 240.2 | 242 | 242 | ||||||||||||||||||||||||||||||||||||||||
Limited partnerships/corporations | 250.8 | 250.8 | 180.9 | 180.9 | ||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreement | 617.7 | 617.7 | 529.7 | 529.7 | ||||||||||||||||||||||||||||||||||||||||
Derivatives | 421.3 | 421.3 | 464.4 | 464.4 | ||||||||||||||||||||||||||||||||||||||||
Notes receivable from affiliates | 175 | 206 | 175 | 186.4 | ||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 62,808.40 | 62,808.40 | 60,104.90 | 60,104.90 | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Funding agreements without fixed maturities and deferred annuities(1) | 21,124.50 | 25,594.70 | 21,010.80 | 24,379.60 | ||||||||||||||||||||||||||||||||||||||||
Supplementary contracts, immediate annuities and other | 595.2 | 701.3 | 624.3 | 727.1 | ||||||||||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
FIA | 26.3 | 26.3 | 23.1 | 23.1 | ||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | 45 | 45 | — | — | ||||||||||||||||||||||||||||||||||||||||
Other derivatives | 143.4 | 143.4 | 216.6 | 216.6 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt | 4.9 | 4.9 | 4.9 | 4.9 | ||||||||||||||||||||||||||||||||||||||||
Embedded derivatives on reinsurance | (24.4 | ) | (24.4 | ) | (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 Condensed 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 Condensed 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 are 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 fixed maturities 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 | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | ' | |||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired | ' | |||||||||||
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, 2014 | $ | 476.2 | $ | 696.6 | $ | 1,172.80 | ||||||
Deferrals of commissions and expenses | 51 | 5.2 | 56.2 | |||||||||
Amortization: | ||||||||||||
Amortization | (69.6 | ) | (92.2 | ) | (161.8 | ) | ||||||
Interest accrued(1) | 26.8 | 44.8 | 71.6 | |||||||||
Net amortization included in the Condensed Consolidated Statements of Operations | (42.8 | ) | (47.4 | ) | (90.2 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | (75.4 | ) | (102.4 | ) | (177.8 | ) | ||||||
Balance at September 30, 2014 | $ | 409 | $ | 552 | $ | 961 | ||||||
DAC | VOBA | Total | ||||||||||
Balance at January 1, 2013 | $ | 296.5 | $ | 381.4 | $ | 677.9 | ||||||
Deferrals of commissions and expenses | 52.4 | 5.6 | 58 | |||||||||
Amortization: | ||||||||||||
Amortization | (45.2 | ) | (57.2 | ) | (102.4 | ) | ||||||
Interest accrued(1) | 25.1 | 45.6 | 70.7 | |||||||||
Net amortization included in the Condensed Consolidated Statements of Operations | (20.1 | ) | (11.6 | ) | (31.7 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | 136.8 | 310.2 | 447 | |||||||||
Balance at September 30, 2013 | $ | 465.6 | $ | 685.6 | $ | 1,151.20 | ||||||
(1) Interest accrued at the following rates for VOBA: 5.5% to 7.0% during 2014 and 5.5% to 7.0% during 2013. |
Capital_Contributions_and_Divi
Capital Contributions and Dividends | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Capital Contributions and Dividends | ' |
Capital Contributions and Dividends | |
During the nine months ended September 30, 2014 and 2013, VRIAC did not receive any capital contributions from its Parent. | |
During the nine months ended September 30, 2014, the Company declared an ordinary dividend to its Parent in the amount of $281.0, which was paid on May 19, 2014. During the nine months ended September 30, 2013, following receipt of required approval from its domiciliary state insurance regulator and consummation of the IPO of Voya Financial, Inc., VRIAC paid an extraordinary dividend in the amount of $174.0 to its Parent. | |
On October 3, 2014, DSL paid a $30.0 dividend to VRIAC, its parent. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
Shareholder’s equity included the following components of Accumulated Other Comprehensive Income ("AOCI") as of the dates indicated: | |||||||||||||
September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Fixed maturities, net of OTTI | $ | 1,417.50 | $ | 885.4 | |||||||||
Equity securities, available-for-sale | 15.4 | 16.1 | |||||||||||
Derivatives | 178.8 | 148.8 | |||||||||||
DAC/VOBA and sales inducements adjustment on available-for-sale securities | (513.1 | ) | (363.1 | ) | |||||||||
Premium deficiency reserve adjustment | (117.8 | ) | (89.7 | ) | |||||||||
Other | — | * | — | * | |||||||||
Unrealized capital gains (losses), before tax | 980.8 | 597.5 | |||||||||||
Deferred income tax asset (liability) | (216.3 | ) | (118.6 | ) | |||||||||
Unrealized capital gains (losses), after tax | 764.5 | 478.9 | |||||||||||
Pension and other postretirement benefits liability, net of tax | 8.7 | 10.2 | |||||||||||
AOCI | $ | 773.2 | $ | 489.1 | |||||||||
* Less than $0.1. | |||||||||||||
Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated: | |||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (235.9 | ) | $ | 80.6 | $ | (155.3 | ) | |||||
Equity securities | (0.5 | ) | — | (0.5 | ) | ||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 1 | (0.3 | ) | 0.7 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 6.8 | (2.4 | ) | 4.4 | |||||||||
DAC/VOBA and sales inducements | 67.1 | (23.4 | ) | 43.7 | |||||||||
Premium deficiency reserve adjustment | 9.9 | (3.5 | ) | 6.4 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (151.6 | ) | 51 | (100.6 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | 6 | (1) | (2.1 | ) | 3.9 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | (2.0 | ) | 0.7 | (1.3 | ) | ||||||||
Change in unrealized gains/losses on derivatives | 4 | (1.4 | ) | 2.6 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (0.6 | ) | 0.2 | (0.4 | ) | ||||||||
Change in pension and other postretirement benefits liability | (0.6 | ) | 0.2 | (0.4 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (148.2 | ) | $ | 49.8 | $ | (98.4 | ) | |||||
* Less than $0.1. | |||||||||||||
(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | 581.7 | $ | (203.6 | ) | $ | 378.1 | ||||||
Equity securities | (0.4 | ) | — | (0.4 | ) | ||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 8.3 | (2.9 | ) | 5.4 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 6.9 | (2.4 | ) | 4.5 | |||||||||
DAC/VOBA and sales inducements | (177.8 | ) | (1) | 62.3 | (115.5 | ) | |||||||
Premium deficiency reserve adjustment | (35.4 | ) | 12.4 | (23.0 | ) | ||||||||
Change in unrealized gains/losses on available-for-sale securities | 383.3 | (134.2 | ) | 249.1 | |||||||||
Derivatives: | |||||||||||||
Derivatives | 50.9 | (2) | (17.8 | ) | 33.1 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | (5.1 | ) | 1.8 | (3.3 | ) | ||||||||
Change in unrealized gains/losses on derivatives | 45.8 | (16.0 | ) | 29.8 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in pension and other postretirement benefits liability | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | 427.4 | $ | (149.6 | ) | $ | 277.8 | ||||||
* Less than $0.1. | |||||||||||||
(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (97.2 | ) | $ | 61.2 | (2) | $ | (36.0 | ) | ||||
Equity securities | (0.4 | ) | 0.2 | (0.2 | ) | ||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 2 | (0.7 | ) | 1.3 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 6.2 | (2.1 | ) | 4.1 | |||||||||
DAC/VOBA and sales inducements | 35.1 | (12.3 | ) | 22.8 | |||||||||
Premium deficiency reserve adjustment | 4.7 | (1.6 | ) | 3.1 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (49.6 | ) | 44.7 | (4.9 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | (3.7 | ) | (1) | 1.3 | (2.4 | ) | |||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | 2.4 | (0.9 | ) | 1.5 | |||||||||
Change in unrealized gains/losses on derivatives | (1.3 | ) | 0.4 | (0.9 | ) | ||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (0.7 | ) | 0.6 | (0.1 | ) | ||||||||
Change in pension and other postretirement benefits liability | (0.7 | ) | 0.6 | (0.1 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (51.6 | ) | $ | 45.7 | $ | (5.9 | ) | |||||
* Less than $0.1. | |||||||||||||
(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(2) Amount includes $28.6 valuation allowance. See the Income Taxes Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (1,317.3 | ) | $ | 486.5 | (3) | $ | (830.8 | ) | ||||
Equity securities | 2.6 | (0.9 | ) | 1.7 | |||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 3.4 | (1.2 | ) | 2.2 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 8.4 | (2.9 | ) | 5.5 | |||||||||
DAC/VOBA and sales inducements | 447.5 | (1) | (156.6 | ) | 290.9 | ||||||||
Premium deficiency reserve adjustment | 62.9 | (22.0 | ) | 40.9 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (792.5 | ) | 302.9 | (489.6 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | (68.0 | ) | (2) | 23.8 | (44.2 | ) | |||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | 1.6 | (0.6 | ) | 1 | |||||||||
Change in unrealized gains/losses on derivatives | (66.4 | ) | 23.2 | (43.2 | ) | ||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in pension and other postretirement benefits liability | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (860.6 | ) | $ | 326.7 | $ | (533.9 | ) | |||||
* Less than $0.1. | |||||||||||||
(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(3) Amount includes $30.5 valuation allowance. See the Income Taxes Note to these Condensed Consolidated Financial Statements for additional information. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
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: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before income taxes | $ | 60 | $ | 133.3 | $ | 224.7 | $ | 353 | ||||||||
Tax rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||
Income tax expense (benefit) at federal statutory rate | 21 | 46.7 | 78.6 | 123.6 | ||||||||||||
Tax effect of: | ||||||||||||||||
Dividends received deduction | (9.9 | ) | (9.0 | ) | (23.8 | ) | (20.6 | ) | ||||||||
Valuation allowance | — | 28.6 | — | 30.5 | ||||||||||||
IRS audit adjustment | — | — | (0.1 | ) | (0.3 | ) | ||||||||||
Other | (1.3 | ) | (0.6 | ) | (0.5 | ) | 0.2 | |||||||||
Income tax expense (benefit) | $ | 9.8 | $ | 65.7 | $ | 54.2 | $ | 133.4 | ||||||||
Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. As of September 30, 2014 and December 31, 2013, the Company had total valuation allowances of approximately $11.1. As of September 30, 2014 and December 31, 2013, $130.4 of these valuation allowances were allocated to continuing operations, and $(119.3) as of the end of each period were allocated to Other comprehensive income related to realized and unrealized capital losses. | ||||||||||||||||
For the three months and nine months ended September 30, 2014 and 2013, there were no total changes in the valuation allowances. With respect to the three months and nine months ended September 30, 2014, there were no changes in the valuation allowances that were allocated to continuing operations or Other comprehensive income. With respect to the three months and nine months ended September 30, 2013, $28.6 and $30.5, respectively, was allocated to continuing operations and $(28.6) and $(30.5), respectively, was allocated to Other comprehensive income. | ||||||||||||||||
Tax Sharing Agreement | ||||||||||||||||
The results of the Company's operations are included in the consolidated tax return of Voya Financial, Inc. Generally, the Company's 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 740) as if the Company were a separate taxpayer rather than a member of Voya Financial, 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. Under the tax sharing agreement, Voya Financial, 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. | ||||||||||||||||
Tax Regulatory Matters | ||||||||||||||||
During April 2014, the U.S. Internal Revenue Service ("IRS") completed its examination of the Company's returns through tax year 2012. The 2012 audit settlement did not have a material impact on the financial statements. The Company is currently under audit by the IRS, and it is expected that the examination of tax year 2013 will be finalized within the next twelve months. The Company and the IRS have agreed to participate in the Compliance Assurance Program for the tax years 2013 and 2014. |
Financing_Agreements
Financing Agreements | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Financing Agreements | ' |
Financing Agreements | |
Reciprocal Loan Agreement | |
The Company maintains a reciprocal loan agreement with Voya Financial, 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 3.0% of the Company’s statutory admitted assets as of the preceding December 31. Effective January 2014, interest on any borrowing by either the Company or Voya Financial, Inc. is charged at a rate based on the prevailing market rate for similar third-party borrowings or securities. | |
Under this agreement, the Company incurred minimal interest expense for the three and nine months ended September 30, 2014, and did not incur interest expense for the three and nine months ended September 30, 2013. The Company did not earn interest income for the three months ended September 30, 2014 and earned $0.2 in interest income for the nine months ended September 30, 2014. The Company did not earn interest income for the three and nine months ended September 30, 2013. As of September 30, 2014 and December 31, 2013, the Company did not have an outstanding receivable/payable from/to Voya Financial, Inc. under the reciprocal loan agreement. | |
For information on the Company's additional financing agreements, see Item 8. Financing Agreements in the Annual Report on Form 10-K. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ||||||||
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 September 30, 2014 and December 31, 2013, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $472.1 and $466.8, 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 agreements, letter of credit ("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: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Other fixed maturities-state deposits | $ | 13.3 | $ | 13.1 | ||||
Securities pledged(1) | 148 | 140.1 | ||||||
Total restricted assets | $ | 161.3 | $ | 153.2 | ||||
(1) Includes the fair value of loaned securities of $100.1 and $97.6 as of September 30, 2014 and December 31, 2013, respectively, which is included in Securities pledged on the Condensed Consolidated Balance Sheets. In addition, as of September 30, 2014 and December 31, 2013, the Company delivered securities as collateral of $47.9 and $42.5, respectively, which is included in Securities pledged on the Condensed 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 September 30, 2014, the Company estimates the aggregate range of reasonably possible losses in excess of any amounts accrued for these matters is not material to the Company. | ||||||||
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 sponsors of 401(k) Plans governed by the Employee Retirement Income Security Act ("ERISA") claim that ING Life Insurance and Annuity Company (now known as Voya Retirement Insurance and Annuity Company, "VRIAC") 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. On April 11, 2014, the parties submitted to the court a motion for preliminary approval of a class-wide settlement agreement under which VRIAC, without admitting liability, would make a payment to the class of approximately $15.0 and adopt certain changes in its disclosure practices. Final court approval will be required before the settlement becomes effective. On September 25, 2014, the court approved the settlement. |
Business_Basis_of_Presentation1
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. 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 Condensed 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 Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, Voya Financial Partners, LLC ("VFP"), which changed its name from ING Financial Advisers, LLC on September 1, 2014, and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated. | ||
The accompanying Condensed Consolidated Financial Statements reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position of the Company as of September 30, 2014, its results of operations and comprehensive income for the three and nine months ended September 30, 2014 and 2013, and its changes in shareholder's equity and statements of cash flows for the nine months ended September 30, 2014 and 2013, in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2013 Consolidated Balance Sheet is from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 ("Annual Report on Form 10-K"), filed with the SEC. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K. | ||
Adoption of New Pronouncements | ' | |
Adoption of New Pronouncements | ||
Presentation of Unrecognized Tax Benefits | ||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, "Income Taxes (Accounting Standards Codification ("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 were adopted prospectively by the Company on January 1, 2014 to unrecognized tax benefits existing on that date. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the guidance is consistent with that previously 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 were adopted by the Company on January 1, 2014. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the Company did not have any fixed obligations under joint and several liable arrangements as of January 1, 2014. | ||
Fees Paid to the Federal Government by Health Insurers | ||
In July 2011, the FASB issued ASU 2011-06, "Other Expenses (ASC 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 were adopted by the Company on January 1, 2014, when the fee initially became effective. The adoption of ASU 2011-06 had no effect on the Company's financial condition, results of operations or cash flows, as the amount of net premium written for qualifying health insurance by the Company in 2014 is expected to be below the $25.0 threshold as defined by the Acts and, thus, not subject to the fee. | ||
Investments | ' | |
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 Accumulated other comprehensive income (loss) ("AOCI") and presented net of related changes in Deferred policy acquisition costs ("DAC"), Value of business acquired ("VOBA") and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Condensed 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 Condensed 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 Condensed 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 September 30, 2014 and December 31, 2013, approximately 56.9% and 50.4%, 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 | ||
The Company engages in dollar repurchase agreements with mortgage-backed securities ("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 also enters into reverse repurchase agreements. These transactions involve a purchase of securities and an agreement to sell substantially the same securities as those purchased. As of September 30, 2014 and December 31, 2013, the Company did not have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements. | ||
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. As of September 30, 2014 and December 31, 2013, the fair value of loaned securities was $100.1 and $97.6, respectively and is included in Securities pledged on the Condensed Consolidated Balance Sheets. As of September 30, 2014 and December 31, 2013, collateral retained by the lending agent and invested in liquid assets on the Company's behalf was $104.2 and $102.7, respectively, and recorded in Short-term investments under securities loan agreements, including collateral delivered on the Condensed Consolidated Balance Sheets. As of September 30, 2014 and December 31, 2013, liabilities to return collateral of $104.2 and $102.7, respectively, were included in Payables under securities loan agreements, including collateral held on the Condensed 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 $0.7 and $1.0 as of September 30, 2014 and December 31, 2013, respectively, is included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Condensed Consolidated Statements of Operations. | ||
Securitizations | ||
The Company invests in various tranches of securitization entities, including Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("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 the Fair Value Measurements Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO for which changes in fair value are reflected in Other net realized gains (losses) in the Condensed Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment. | ||
Derivatives | ' | |
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 fixed index annuity ("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 variable fixed income portfolios 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 for which the 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, Future policy benefits and contract owner account balances and Other liabilities, respectively, on the Condensed 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 Condensed Consolidated Statements of Operations. Changes in fair value of embedded derivatives with reinsurance agreements are reported in Interest credited and other benefits to contract owners/policyholders in the Condensed 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. | ||
Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of September 30, 2014 and December 31, 2013. 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 that do not qualify as effective accounting hedges under ASC Topic 815. | ||
Fair Value Measurement | ' | |
Valuation of Financial Assets and Liabilities at Fair Value | ||
Certain assets and liabilities are measured at estimated fair value on the Company’s Condensed 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. | ||
Transfers in and out of Level 1 and 2 | ||
There were no securities transferred between Level 1 and Level 2 for the three and nine months ended September 30, 2014 and 2013. 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. |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ||||||||||||||||||||||||||||||||
Marketable Securities | ' | ||||||||||||||||||||||||||||||||
Available-for-sale and fair value option ("FVO") fixed maturities and equity securities were as follows as of September 30, 2014: | |||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Embedded Derivatives(2) | Fair | OTTI(3) | ||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||
Capital | Capital | ||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 647.9 | $ | 85.6 | $ | 0.1 | $ | — | $ | 733.4 | $ | — | |||||||||||||||||||||
U.S. Government agencies and authorities | 54.8 | 1.3 | — | — | 56.1 | — | |||||||||||||||||||||||||||
State, municipalities and political subdivisions | 152.7 | 11.4 | 0.5 | — | 163.6 | — | |||||||||||||||||||||||||||
U.S. corporate securities | 10,311.50 | 798.9 | 61.8 | — | 11,048.60 | 1.6 | |||||||||||||||||||||||||||
Foreign securities(1): | |||||||||||||||||||||||||||||||||
Government | 347.8 | 24.5 | 4.8 | — | 367.5 | — | |||||||||||||||||||||||||||
Other | 5,335.40 | 352.4 | 30.6 | — | 5,657.20 | — | |||||||||||||||||||||||||||
Total foreign securities | 5,683.20 | 376.9 | 35.4 | — | 6,024.70 | — | |||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Agency | 1,589.50 | 120.3 | 5 | 16.3 | 1,721.10 | 0.2 | |||||||||||||||||||||||||||
Non-Agency | 238.2 | 52.9 | 2 | 11.8 | 300.9 | 11.7 | |||||||||||||||||||||||||||
Total Residential mortgage-backed securities | 1,827.70 | 173.2 | 7 | 28.1 | 2,022.00 | 11.9 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities | 842.6 | 63.1 | 0.4 | — | 905.3 | — | |||||||||||||||||||||||||||
Other asset-backed securities | 401.7 | 14.1 | 1.8 | — | 414 | 3 | |||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 19,922.10 | 1,524.50 | 107 | 28.1 | 21,367.70 | 16.5 | |||||||||||||||||||||||||||
Less: Securities pledged | 140.9 | 10 | 2.9 | — | 148 | — | |||||||||||||||||||||||||||
Total fixed maturities | 19,781.20 | 1,514.50 | 104.1 | 28.1 | 21,219.70 | 16.5 | |||||||||||||||||||||||||||
Equity securities | 106.9 | 15.4 | — | — | 122.3 | — | |||||||||||||||||||||||||||
Total fixed maturities and equity securities investments | $ | 19,888.10 | $ | 1,529.90 | $ | 104.1 | $ | 28.1 | $ | 21,342.00 | $ | 16.5 | |||||||||||||||||||||
(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 Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
(3) Represents Other-than Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss). | |||||||||||||||||||||||||||||||||
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 Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
(3) Represents OTTI reported as a component of Other comprehensive income (loss). | |||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||||||||||
The amortized cost and fair value of fixed maturities, including securities pledged, as of September 30, 2014, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("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 | $ | 803.4 | $ | 818.9 | |||||||||||||||||||||||||||||
After one year through five years | 3,945.20 | 4,212.60 | |||||||||||||||||||||||||||||||
After five years through ten years | 6,060.40 | 6,342.10 | |||||||||||||||||||||||||||||||
After ten years | 6,041.10 | 6,652.80 | |||||||||||||||||||||||||||||||
Mortgage-backed securities | 2,670.30 | 2,927.30 | |||||||||||||||||||||||||||||||
Other asset-backed securities | 401.7 | 414 | |||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 19,922.10 | $ | 21,367.70 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||
Communications | $ | 1,254.60 | $ | 122 | $ | 7.4 | $ | 1,369.20 | |||||||||||||||||||||||||
Financial | 2,286.80 | 199.4 | 4.5 | 2,481.70 | |||||||||||||||||||||||||||||
Industrial and other companies | 8,962.50 | 550.8 | 70.7 | 9,442.60 | |||||||||||||||||||||||||||||
Transportation | 438.1 | 33 | 2.7 | 468.4 | |||||||||||||||||||||||||||||
Utilities | 2,704.90 | 246.1 | 7.1 | 2,943.90 | |||||||||||||||||||||||||||||
Total | $ | 15,646.90 | $ | 1,151.30 | $ | 92.4 | $ | 16,705.80 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Transportation | 440 | 22.5 | 9.9 | 452.6 | |||||||||||||||||||||||||||||
Utilities | 2,726.50 | 159.5 | 42.3 | 2,843.70 | |||||||||||||||||||||||||||||
Total | $ | 15,475.60 | $ | 853.9 | $ | 322.3 | $ | 16,007.20 | |||||||||||||||||||||||||
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 September 30, 2014: | |||||||||||||||||||||||||||||||||
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 | $ | 27.1 | $ | 0.1 | $ | — | $ | — | $ | — | $ | — | $ | 27.1 | $ | 0.1 | |||||||||||||||||
U.S. government, agencies and authorities | 2.5 | — | * | — | — | — | — | 2.5 | — | * | |||||||||||||||||||||||
U.S. corporate, state and municipalities | 1,013.40 | 15.9 | 33.4 | 1.4 | 925.8 | 45 | 1,972.60 | 62.3 | |||||||||||||||||||||||||
Foreign | 453.6 | 9.4 | 9.7 | 0.1 | 496.2 | 25.9 | 959.5 | 35.4 | |||||||||||||||||||||||||
Residential mortgage-backed | 94.2 | 0.4 | 36.5 | 0.3 | 169 | 6.3 | 299.7 | 7 | |||||||||||||||||||||||||
Commercial mortgage-backed | 47.8 | 0.4 | — | — | — | — | 47.8 | 0.4 | |||||||||||||||||||||||||
Other asset-backed | 58.9 | 0.2 | — | — | 18.7 | 1.6 | 77.6 | 1.8 | |||||||||||||||||||||||||
Total | $ | 1,697.50 | $ | 26.4 | $ | 79.6 | $ | 1.8 | $ | 1,609.70 | $ | 78.8 | $ | 3,386.80 | $ | 107 | |||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
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. government, agencies and authorities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
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 | |||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
Collective valuation allowance for losses | (1.2 | ) | (1.2 | ) | |||||||||||||||||||||||||||||
Total net commercial mortgage loans | $ | 3,564.70 | $ | 3,396.10 | |||||||||||||||||||||||||||||
The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Collective valuation allowance for losses, balance at January 1 | $ | 1.2 | $ | 1.3 | |||||||||||||||||||||||||||||
Addition to (reduction of) allowance for losses | — | (0.1 | ) | ||||||||||||||||||||||||||||||
Collective valuation allowance for losses, end of period | $ | 1.2 | $ | 1.2 | |||||||||||||||||||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||||||||||
The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Impaired loans with allowances for losses | $ | — | $ | — | |||||||||||||||||||||||||||||
Impaired loans without allowances for losses | 37.1 | 42.9 | |||||||||||||||||||||||||||||||
Subtotal | 37.1 | 42.9 | |||||||||||||||||||||||||||||||
Less: Allowances for losses on impaired loans | — | — | |||||||||||||||||||||||||||||||
Impaired loans, net | $ | 37.1 | $ | 42.9 | |||||||||||||||||||||||||||||
Unpaid principal balance of impaired loans | $ | 38.6 | $ | 44.4 | |||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impaired loans, average investment during the period (amortized cost)(1) | $ | 37.1 | $ | 24.2 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on an accrual basis(1) | 0.5 | 0.5 | |||||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on a cash basis(1) | 0.5 | 0.5 | |||||||||||||||||||||||||||||||
Interest income recognized on troubled debt restructured loans, on an accrual basis | 0.4 | 0.4 | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impaired loans, average investment during the period (amortized cost)(1) | $ | 40 | $ | 24.3 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on an accrual basis(1) | 1.7 | 0.7 | |||||||||||||||||||||||||||||||
Interest income recognized on impaired loans, on a cash basis(1) | 1.5 | 0.7 | |||||||||||||||||||||||||||||||
Interest income recognized on troubled debt restructured loans, on an accrual basis | 1.4 | 0.4 | |||||||||||||||||||||||||||||||
(1)Includes amounts for Troubled debt restructured loans. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||||||||||
The following table presents information on restructured loans as of the dates indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Troubled debt restructured loans | $ | 31.9 | $ | 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 a 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: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Loan-to-Value Ratio: | |||||||||||||||||||||||||||||||||
0% - 50% | $ | 424.2 | $ | 495.7 | |||||||||||||||||||||||||||||
>50% - 60% | 895.3 | 894.5 | |||||||||||||||||||||||||||||||
>60% - 70% | 2,099.90 | 1,879.50 | |||||||||||||||||||||||||||||||
>70% - 80% | 134.7 | 114.9 | |||||||||||||||||||||||||||||||
>80% and above | 11.8 | 12.7 | |||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for losses. | |||||||||||||||||||||||||||||||||
The following table presents the DSC ratios as of the dates indicated: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Debt Service Coverage Ratio: | |||||||||||||||||||||||||||||||||
Greater than 1.5x | $ | 2,638.90 | $ | 2,388.50 | |||||||||||||||||||||||||||||
>1.25x - 1.5x | 549.7 | 542.4 | |||||||||||||||||||||||||||||||
>1.0x - 1.25x | 248.9 | 275.8 | |||||||||||||||||||||||||||||||
Less than 1.0x | 126.7 | 190.5 | |||||||||||||||||||||||||||||||
Commercial mortgage loans secured by land or construction loans | 1.7 | 0.1 | |||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for 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: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | ||||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | ||||||||||||||||||||||||||||||
Commercial Mortgage Loans by U.S. Region: | |||||||||||||||||||||||||||||||||
Pacific | $ | 802.8 | 22.5 | % | $ | 752.8 | 22.3 | % | |||||||||||||||||||||||||
South Atlantic | 750.3 | 21 | % | 707.8 | 20.8 | % | |||||||||||||||||||||||||||
West South Central | 443.2 | 12.4 | % | 467.1 | 13.7 | % | |||||||||||||||||||||||||||
Middle Atlantic | 486.8 | 13.7 | % | 411.4 | 12.1 | % | |||||||||||||||||||||||||||
East North Central | 422.7 | 11.9 | % | 383.1 | 11.3 | % | |||||||||||||||||||||||||||
Mountain | 281.6 | 7.9 | % | 263.9 | 7.8 | % | |||||||||||||||||||||||||||
West North Central | 229.5 | 6.4 | % | 224.9 | 6.6 | % | |||||||||||||||||||||||||||
East South Central | 78.2 | 2.2 | % | 69.6 | 2 | % | |||||||||||||||||||||||||||
New England | 70.8 | 2 | % | 116.7 | 3.4 | % | |||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | 100 | % | $ | 3,397.30 | 100 | % | |||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for losses. | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | ||||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | ||||||||||||||||||||||||||||||
Commercial Mortgage Loans by Property Type: | |||||||||||||||||||||||||||||||||
Retail | $ | 1,167.30 | 32.8 | % | $ | 1,082.10 | 31.9 | % | |||||||||||||||||||||||||
Industrial | 941.4 | 26.4 | % | 972.6 | 28.6 | % | |||||||||||||||||||||||||||
Apartments | 525.8 | 14.7 | % | 445.2 | 13.1 | % | |||||||||||||||||||||||||||
Office | 437.3 | 12.3 | % | 462.1 | 13.6 | % | |||||||||||||||||||||||||||
Hotel/Motel | 150.9 | 4.2 | % | 182.8 | 5.4 | % | |||||||||||||||||||||||||||
Mixed Use | 143.4 | 4 | % | 70.9 | 2.1 | % | |||||||||||||||||||||||||||
Other | 199.8 | 5.6 | % | 181.6 | 5.3 | % | |||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | 100 | % | $ | 3,397.30 | 100 | % | |||||||||||||||||||||||||
Mortgage Loans by Property Type of Collateral | ' | ||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Gross | % of | Gross | % of | ||||||||||||||||||||||||||||||
Carrying Value | Total | Carrying Value | Total | ||||||||||||||||||||||||||||||
Commercial Mortgage Loans by Property Type: | |||||||||||||||||||||||||||||||||
Retail | $ | 1,167.30 | 32.8 | % | $ | 1,082.10 | 31.9 | % | |||||||||||||||||||||||||
Industrial | 941.4 | 26.4 | % | 972.6 | 28.6 | % | |||||||||||||||||||||||||||
Apartments | 525.8 | 14.7 | % | 445.2 | 13.1 | % | |||||||||||||||||||||||||||
Office | 437.3 | 12.3 | % | 462.1 | 13.6 | % | |||||||||||||||||||||||||||
Hotel/Motel | 150.9 | 4.2 | % | 182.8 | 5.4 | % | |||||||||||||||||||||||||||
Mixed Use | 143.4 | 4 | % | 70.9 | 2.1 | % | |||||||||||||||||||||||||||
Other | 199.8 | 5.6 | % | 181.6 | 5.3 | % | |||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | 100 | % | $ | 3,397.30 | 100 | % | |||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for 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: | |||||||||||||||||||||||||||||||||
September 30, 2014(1) | December 31, 2013(1) | ||||||||||||||||||||||||||||||||
Year of Origination: | |||||||||||||||||||||||||||||||||
2014 | $ | 445.8 | $ | — | |||||||||||||||||||||||||||||
2013 | 767.1 | 785.2 | |||||||||||||||||||||||||||||||
2012 | 889.2 | 908.1 | |||||||||||||||||||||||||||||||
2011 | 717.4 | 792.8 | |||||||||||||||||||||||||||||||
2010 | 108.6 | 121.1 | |||||||||||||||||||||||||||||||
2009 | 39.1 | 68.4 | |||||||||||||||||||||||||||||||
2008 and prior | 598.7 | 721.7 | |||||||||||||||||||||||||||||||
Total Commercial mortgage loans | $ | 3,565.90 | $ | 3,397.30 | |||||||||||||||||||||||||||||
(1) Balances do not include collective valuation allowance for losses. | |||||||||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | ||||||||||||||||||||||||||||||||
The following tables identify the Company's credit-related and intent-related impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.6 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | — | — | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | 0.3 | 13 | 0.4 | 14 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Other asset-backed | — | * | 1 | 0.2 | 1 | ||||||||||||||||||||||||||||
Equity securities | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Total | $ | 1.9 | 16 | $ | 0.8 | 17 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.7 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | 1.2 | 5 | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | 1.2 | 22 | 2.2 | 32 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 0.1 | 2 | 0.2 | 3 | |||||||||||||||||||||||||||||
Other asset-backed | — | * | 1 | 0.2 | 1 | ||||||||||||||||||||||||||||
Equity securities | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Total | $ | 4.2 | 32 | $ | 2.7 | 37 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
Net Investment Income | ' | ||||||||||||||||||||||||||||||||
The following tables summarize Net investment income for the periods indicated: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Fixed maturities | $ | 306.4 | $ | 292.2 | $ | 904.7 | $ | 900.5 | |||||||||||||||||||||||||
Equity securities, available-for-sale | 0.7 | 1.7 | 5.2 | 1.6 | |||||||||||||||||||||||||||||
Mortgage loans on real estate | 41.7 | 39 | 123.5 | 116.5 | |||||||||||||||||||||||||||||
Policy loans | 3.4 | 3.2 | 10 | 9.6 | |||||||||||||||||||||||||||||
Short-term investments and cash equivalents | 0.1 | 0.2 | 0.4 | 0.7 | |||||||||||||||||||||||||||||
Other | 9 | 3.9 | 26.5 | 26.8 | |||||||||||||||||||||||||||||
Gross investment income | 361.3 | 340.2 | 1,070.30 | 1,055.70 | |||||||||||||||||||||||||||||
Less: Investment expenses | 13.1 | 12 | 38.4 | 36.4 | |||||||||||||||||||||||||||||
Net investment income | $ | 348.2 | $ | 328.2 | $ | 1,031.90 | $ | 1,019.30 | |||||||||||||||||||||||||
Realized Gain (Loss) on Investments | ' | ||||||||||||||||||||||||||||||||
Net realized capital gains (losses) were as follows for the periods indicated: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale, including securities pledged | $ | (6.8 | ) | $ | (6.5 | ) | $ | (6.5 | ) | $ | (8.7 | ) | |||||||||||||||||||||
Fixed maturities, at fair value option | (34.7 | ) | (26.0 | ) | (58.2 | ) | (131.1 | ) | |||||||||||||||||||||||||
Equity securities, available-for-sale | — | 0.1 | 1.3 | 0.1 | |||||||||||||||||||||||||||||
Derivatives | 11.5 | (10.1 | ) | (1.4 | ) | (71.9 | ) | ||||||||||||||||||||||||||
Embedded derivative - fixed maturities | 0.4 | (3.6 | ) | (0.9 | ) | (20.8 | ) | ||||||||||||||||||||||||||
Embedded derivative - product guarantees | (12.5 | ) | 17.9 | (44.5 | ) | 94.4 | |||||||||||||||||||||||||||
Other investments | — | 0.1 | — | (0.1 | ) | ||||||||||||||||||||||||||||
Net realized capital gains (losses) | $ | (42.1 | ) | $ | (28.1 | ) | $ | (110.2 | ) | $ | (138.1 | ) | |||||||||||||||||||||
After-tax net realized capital gains (losses) | $ | (27.4 | ) | $ | (46.9 | ) | $ | (71.6 | ) | $ | (120.3 | ) | |||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Proceeds on sales | $ | 308.7 | $ | 283.1 | $ | 1,278.70 | $ | 1,206.30 | |||||||||||||||||||||||||
Gross gains | 1.3 | 1.4 | 22.2 | 10.6 | |||||||||||||||||||||||||||||
Gross losses | 6.9 | 8.1 | 27 | 16.4 | |||||||||||||||||||||||||||||
Intent related impairment | ' | ||||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ||||||||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | ||||||||||||||||||||||||||||||||
The following tables summarize these intent impairments, which are also recognized in earnings, by type for the periods indicated: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.6 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | — | — | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | — | — | — | * | 2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | — | — | 0.1 | 1 | |||||||||||||||||||||||||||||
Other asset-backed | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 1.6 | 2 | $ | 0.1 | 3 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||||||||||||
U.S. corporate | $ | 1.6 | 2 | $ | — | — | |||||||||||||||||||||||||||
Foreign(1) | 1.2 | 5 | — | — | |||||||||||||||||||||||||||||
Residential mortgage-backed | 0.1 | 2 | — | * | 2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 0.1 | 2 | 0.2 | 3 | |||||||||||||||||||||||||||||
Other asset-backed | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 3 | 11 | $ | 0.2 | 5 | |||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | |||||||||||||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
Credit related impairment | ' | ||||||||||||||||||||||||||||||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ||||||||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | ||||||||||||||||||||||||||||||||
The following tables identify 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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Balance at July 1 | $ | 19 | $ | 20.2 | |||||||||||||||||||||||||||||
Additional credit impairments: | |||||||||||||||||||||||||||||||||
On securities not previously impaired | — | 0.3 | |||||||||||||||||||||||||||||||
On securities previously impaired | 0.3 | 0.4 | |||||||||||||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||||||||||
Securities sold, matured, prepaid or paid down | 1.1 | 1.1 | |||||||||||||||||||||||||||||||
Balance at September 30 | $ | 18.2 | $ | 19.8 | |||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 19.6 | $ | 20 | |||||||||||||||||||||||||||||
Additional credit impairments: | |||||||||||||||||||||||||||||||||
On securities not previously impaired | 0.7 | 1.1 | |||||||||||||||||||||||||||||||
On securities previously impaired | 0.5 | 1.4 | |||||||||||||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||||||||||
Securities sold, matured, prepaid or paid down | 2.6 | 2.7 | |||||||||||||||||||||||||||||||
Balance at September 30 | $ | 18.2 | $ | 19.8 | |||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||
Six months or less below amortized cost | $ | 1,725.60 | $ | — | $ | 26.5 | $ | — | 320 | — | |||||||||||||||||||||||
More than six months and twelve months or less below amortized cost | 134.4 | — | * | 6.3 | — | * | 36 | 1 | |||||||||||||||||||||||||
More than twelve months below amortized cost | 1,631.50 | 2.3 | 73.6 | 0.6 | 273 | 2 | |||||||||||||||||||||||||||
Total | $ | 3,491.50 | $ | 2.3 | $ | 106.4 | $ | 0.6 | 629 | 3 | |||||||||||||||||||||||
*Less than $0.1 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 27.2 | $ | — | $ | 0.1 | $ | — | 2 | — | |||||||||||||||||||||||
U.S. government, agencies and authorities | 2.5 | — | — | * | — | 1 | — | ||||||||||||||||||||||||||
U.S. corporate, state and municipalities | 2,034.90 | — | * | 62.3 | — | * | 335 | 1 | |||||||||||||||||||||||||
Foreign | 994.9 | — | 35.4 | — | 148 | — | |||||||||||||||||||||||||||
Residential mortgage-backed | 306.7 | — | 7 | — | 122 | — | |||||||||||||||||||||||||||
Commercial mortgage-backed | 48.2 | — | 0.4 | — | 5 | — | |||||||||||||||||||||||||||
Other asset-backed | 77.1 | 2.3 | 1.2 | 0.6 | 16 | 2 | |||||||||||||||||||||||||||
Total | $ | 3,491.50 | $ | 2.3 | $ | 106.4 | $ | 0.6 | 629 | 3 | |||||||||||||||||||||||
* Less than $0.1. | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 161.5 | $ | — | $ | 2.9 | $ | — | 4 | — | |||||||||||||||||||||||
U.S. government, agencies and authorities | — | — | — | — | — | — | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
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 | $ | 575.8 | $ | 94.5 | $ | — | $ | 763.3 | $ | 81 | $ | 0.2 | ||||||||||||
Foreign exchange contracts | 51.2 | 4.4 | — | 51.2 | 2.2 | 0.6 | ||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Interest rate contracts | 26,969.90 | 310 | 138.7 | 21,442.70 | 367.6 | 206.2 | ||||||||||||||||||
Foreign exchange contracts | 130.1 | 5.9 | 4.7 | 145.9 | 5.5 | 9.6 | ||||||||||||||||||
Equity contracts | 15.9 | — | — | * | 9.1 | — | * | — | ||||||||||||||||
Credit contracts | 384 | 6.5 | — | 384 | 8.1 | — | ||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments | N/A | 28.1 | — | N/A | 29 | — | ||||||||||||||||||
Within annuity products | N/A | — | 71.3 | N/A | — | 23.1 | ||||||||||||||||||
Within reinsurance agreements | N/A | — | (24.4 | ) | N/A | — | (54.0 | ) | ||||||||||||||||
Total | $ | 449.4 | $ | 190.3 | $ | 493.4 | $ | 185.7 | ||||||||||||||||
* Less than $0.1. | ||||||||||||||||||||||||
-1 | Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value. | |||||||||||||||||||||||
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 Over-The-Counter ("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: | ||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 384 | $ | 6.5 | $ | — | ||||||||||||||||||
Foreign exchange contracts | 181.3 | 10.3 | 4.7 | |||||||||||||||||||||
Interest rate contracts | 27,545.70 | 404.5 | 138.7 | |||||||||||||||||||||
421.3 | 143.4 | |||||||||||||||||||||||
Counterparty netting(1) | (143.4 | ) | (143.4 | ) | ||||||||||||||||||||
Cash collateral netting(1) | (231.4 | ) | — | |||||||||||||||||||||
Securities collateral netting(1) | (4.1 | ) | — | |||||||||||||||||||||
Net receivables/payables | $ | 42.4 | $ | — | ||||||||||||||||||||
(1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting rules. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Notional Amount | Assets Fair Value | Liability Fair Value | ||||||||||||||||||||||
Credit contracts | $ | 384 | $ | 8.1 | $ | — | ||||||||||||||||||
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. | ||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||||||||
Net realized gains (losses) on derivatives were as follows for the periods indicated: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Derivatives: Qualifying for hedge accounting(1) | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate contracts | $ | 0.1 | $ | — | $ | 0.1 | $ | 0.1 | ||||||||||||||||
Foreign exchange contracts | 0.1 | — | 0.4 | — | ||||||||||||||||||||
Derivatives: Non-qualifying for hedge accounting(2) | ||||||||||||||||||||||||
Interest rate contracts | 9.1 | (8.5 | ) | (6.5 | ) | (86.4 | ) | |||||||||||||||||
Foreign exchange contracts | 2.3 | (4.1 | ) | 2.3 | 7.9 | |||||||||||||||||||
Equity contracts | — | 0.7 | 1 | 2.4 | ||||||||||||||||||||
Credit contracts | (0.1 | ) | 1.8 | 1.3 | 4.1 | |||||||||||||||||||
Managed custody guarantees | — | 1 | 0.1 | 1.1 | ||||||||||||||||||||
Embedded derivatives: | ||||||||||||||||||||||||
Within fixed maturity investments(2) | 0.4 | (3.6 | ) | (0.9 | ) | (20.8 | ) | |||||||||||||||||
Within annuity products(2) | (12.5 | ) | 16.9 | (44.6 | ) | 93.3 | ||||||||||||||||||
Within reinsurance agreements(3) | 11.8 | 5.3 | (29.6 | ) | 51.1 | |||||||||||||||||||
Total | $ | 11.2 | $ | 9.5 | $ | (76.4 | ) | $ | 52.8 | |||||||||||||||
(1) Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses) in the Condensed 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 Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2014 and 2013, ineffective amounts were immaterial. | ||||||||||||||||||||||||
(2) Changes in value are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||
(3) Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Condensed Consolidated Statements of Operations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [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 September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | 676.5 | $ | 56.9 | $ | — | $ | 733.4 | ||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | — | 56.1 | — | 56.1 | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate, state and municipalities | — | 10,825.40 | 386.8 | 11,212.20 | ||||||||||||||||||||||||||||||||||||||||
Foreign(1) | — | 5,879.80 | 144.9 | 6,024.70 | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,003.00 | 19 | 2,022.00 | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 886.4 | 18.9 | 905.3 | ||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | — | 411.6 | 2.4 | 414 | ||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 676.5 | 20,119.20 | 572 | 21,367.70 | ||||||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 84.9 | — | 37.4 | 122.3 | ||||||||||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 404.5 | — | 404.5 | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 10.3 | — | 10.3 | ||||||||||||||||||||||||||||||||||||||||
Credit contracts | — | 6.5 | — | 6.5 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 616.3 | 1.4 | — | 617.7 | ||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 57,997.50 | 4,797.30 | 13.6 | 62,808.40 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 59,375.20 | $ | 25,339.20 | $ | 623 | $ | 85,337.40 | ||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
FIA | $ | — | $ | — | $ | 26.3 | $ | 26.3 | ||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | — | — | 45 | 45 | ||||||||||||||||||||||||||||||||||||||||
Other derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | 138.7 | — | 138.7 | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | 4.7 | — | 4.7 | ||||||||||||||||||||||||||||||||||||||||
Embedded derivative on reinsurance | — | (24.4 | ) | — | (24.4 | ) | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 119 | $ | 71.3 | $ | 190.3 | ||||||||||||||||||||||||||||||||||||
(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, 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 | ||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
(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 three months ended September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value as of July 1 | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
Realized/Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) Included in: | ||||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 271.4 | (0.1 | ) | (9.9 | ) | 17.7 | — | — | (1.1 | ) | 125.3 | (16.5 | ) | 386.8 | (0.1 | ) | ||||||||||||||||||||||||||||
Foreign(1) | 145.6 | — | (0.7 | ) | — | — | — | — | — | — | 144.9 | — | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 21.2 | (0.9 | ) | 0.3 | 3.3 | — | — | — | 1.7 | (6.6 | ) | 19 | (0.9 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | 18.9 | — | — | — | — | — | 18.9 | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 2.4 | — | — | — | — | — | — | — | — | 2.4 | — | |||||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 440.6 | (1.0 | ) | (10.3 | ) | 39.9 | — | — | (1.1 | ) | 127 | (23.1 | ) | 572 | (1.0 | ) | ||||||||||||||||||||||||||||
Equity securities, available-for-sale | 37.2 | — | 0.2 | — | — | — | — | — | — | 37.4 | — | |||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | (32.0 | ) | (11.9 | ) | — | — | (1.1 | ) | — | — | — | — | (45.0 | ) | — | |||||||||||||||||||||||||||||
FIA(2) | (25.7 | ) | (0.6 | ) | — | — | — | — | — | — | — | (26.3 | ) | — | ||||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 15.9 | — | — | 4.7 | — | (1.3 | ) | — | 0.9 | (6.6 | ) | 13.6 | — | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results 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 nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and authorities | $ | 5.1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (5.1 | ) | $ | — | $ | — | |||||||||||||||||||||
U.S. corporate, state and municipalities | 145.3 | (0.2 | ) | (1.1 | ) | 107.7 | — | — | (4.1 | ) | 139.2 | — | 386.8 | (0.2 | ) | |||||||||||||||||||||||||||||
Foreign(1) | 42.8 | — | 1.2 | 56.3 | — | — | — | 66.8 | (22.2 | ) | 144.9 | — | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 23.7 | (1.6 | ) | 0.4 | 3.5 | — | — | — | — | (7.0 | ) | 19 | (1.6 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | 18.9 | — | — | — | — | — | 18.9 | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 17.7 | 0.8 | (0.6 | ) | — | — | — | (8.1 | ) | — | (7.4 | ) | 2.4 | — | ||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 234.6 | (1.0 | ) | (0.1 | ) | 186.4 | — | — | (12.2 | ) | 206 | (41.7 | ) | 572 | (1.8 | ) | ||||||||||||||||||||||||||||
Equity securities, available-for-sale | 35.9 | — | 1.5 | — | — | — | — | — | — | 37.4 | — | |||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | — | (41.5 | ) | — | — | (3.5 | ) | — | — | — | — | (45.0 | ) | — | ||||||||||||||||||||||||||||||
FIA(2) | (23.1 | ) | (3.0 | ) | — | — | (0.2 | ) | — | — | — | — | (26.3 | ) | — | |||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 13.1 | 0.1 | — | 10.6 | — | (4.5 | ) | — | 0.9 | (6.6 | ) | 13.6 | — | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results 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 three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value as of July 1 | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
Realized/Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) Included in: | ||||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 139.9 | (0.1 | ) | (0.1 | ) | — | — | — | (0.8 | ) | — | — | 138.9 | (0.1 | ) | |||||||||||||||||||||||||||||
Foreign(1) | 18.7 | — | 1 | — | — | — | (4.0 | ) | 4.7 | — | 20.4 | — | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 30.8 | (0.3 | ) | 0.2 | 27 | — | — | — | — | (0.8 | ) | 56.9 | (0.3 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 24.7 | 0.3 | (0.2 | ) | — | — | — | (0.5 | ) | — | — | 24.3 | 0.3 | |||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 214.1 | (0.1 | ) | 0.9 | 27 | — | — | (5.3 | ) | 4.7 | (0.8 | ) | 240.5 | (0.1 | ) | |||||||||||||||||||||||||||||
Equity securities, available-for-sale | 36.9 | — | — | — | — | — | — | — | (0.2 | ) | 36.7 | — | ||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | (28.0 | ) | 18.5 | — | (1.5 | ) | — | — | — | — | — | (11.0 | ) | — | ||||||||||||||||||||||||||||||
FIA(2) | (21.1 | ) | (0.6 | ) | — | — | — | — | — | — | — | (21.7 | ) | — | ||||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 19.9 | — | — | 0.7 | — | (0.2 | ) | — | — | (14.0 | ) | 6.4 | — | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results 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 nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Total | Purchases | Issuances | Sales | Settlements | Transfers into Level 3(3) | Transfers out of Level 3(3) | Fair Value as of September 30 | Change In Unrealized Gains (Losses) Included in Earnings(4) | |||||||||||||||||||||||||||||||||||
as of | Realized/Unrealized | |||||||||||||||||||||||||||||||||||||||||||
1-Jan | Gains (Losses) Included in: | |||||||||||||||||||||||||||||||||||||||||||
Net Income | OCI | |||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and authorities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
U.S. corporate, state and municipalities | 154.6 | (0.3 | ) | (1.0 | ) | — | — | (6.0 | ) | (3.2 | ) | 17.6 | (22.8 | ) | 138.9 | (0.3 | ) | |||||||||||||||||||||||||||
Foreign(1) | 24.6 | — | 1 | — | — | (1.9 | ) | (10.6 | ) | 7.3 | — | 20.4 | — | |||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 9.1 | (1.0 | ) | 0.1 | 49.4 | — | — | — | — | (0.7 | ) | 56.9 | (1.0 | ) | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 33.2 | 1.9 | (0.5 | ) | — | — | — | (10.3 | ) | — | — | 24.3 | 0.7 | |||||||||||||||||||||||||||||||
Total fixed maturities, including securities pledged | 221.5 | 0.6 | (0.4 | ) | 49.4 | — | (7.9 | ) | (24.1 | ) | 24.9 | (23.5 | ) | 240.5 | (0.6 | ) | ||||||||||||||||||||||||||||
Equity securities, available-for-sale | 17 | (0.1 | ) | 2.3 | — | — | — | — | 34.5 | (17.0 | ) | 36.7 | — | |||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs(2) | (102.0 | ) | 95.7 | — | (4.7 | ) | — | — | — | — | — | (11.0 | ) | — | ||||||||||||||||||||||||||||||
FIA(2) | (20.4 | ) | (1.3 | ) | — | — | — | — | — | — | — | (21.7 | ) | — | ||||||||||||||||||||||||||||||
Assets held in separate accounts(5) | 16.3 | — | — | 8 | — | (10.1 | ) | — | 2.2 | (10.0 | ) | 6.4 | 0.1 | |||||||||||||||||||||||||||||||
(1) Primarily U.S. dollar denominated. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 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 Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||
(4) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||||||
(5) 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 results 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 September 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Range(1) | ||||||||||||||||||||||||||||||||||||||||||||
Unobservable Input | FIA | Stabilizer / MCG | ||||||||||||||||||||||||||||||||||||||||||
Interest rate implied volatility | — | 0.2% to 7.3% | ||||||||||||||||||||||||||||||||||||||||||
Nonperformance risk | 0.08% to 0.94% | 0.08% to 0.94% | ||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions: | ||||||||||||||||||||||||||||||||||||||||||||
Partial Withdrawals | 0% to 2% | — | ||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% to 45% | (2) | 0% to 50% | (3) | ||||||||||||||||||||||||||||||||||||||||
Policyholder Deposits(4) | — | 0% to 65% | (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. | ||||||||||||||||||||||||||||||||||||||||||||
(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% | 0-50% | 0-15% | ||||||||||||||||||||||||||||||||||||||
Stabilizer with Recordkeeping Agreements | 12 | % | 0-50% | 0-25% | 0-65% | 0-30% | ||||||||||||||||||||||||||||||||||||||
Aggregate of all plans | 100 | % | 0-50% | 0-25% | 0-65% | 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, 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: | ||||||||||||||||||||||||||||||||||||||||||||
Partial Withdrawals | 0% to 2% | — | ||||||||||||||||||||||||||||||||||||||||||
Lapses | 0% to 48% | (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. | ||||||||||||||||||||||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||||||||||||||||||||||||||||||||
The carrying values and estimated fair values of the Company’s financial instruments as of the dates indicated: | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, including securities pledged | $ | 21,367.70 | $ | 21,367.70 | $ | 20,705.80 | $ | 20,705.80 | ||||||||||||||||||||||||||||||||||||
Equity securities, available-for-sale | 122.3 | 122.3 | 134.9 | 134.9 | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | 3,564.70 | 3,667.60 | 3,396.10 | 3,403.90 | ||||||||||||||||||||||||||||||||||||||||
Policy loans | 240.2 | 240.2 | 242 | 242 | ||||||||||||||||||||||||||||||||||||||||
Limited partnerships/corporations | 250.8 | 250.8 | 180.9 | 180.9 | ||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreement | 617.7 | 617.7 | 529.7 | 529.7 | ||||||||||||||||||||||||||||||||||||||||
Derivatives | 421.3 | 421.3 | 464.4 | 464.4 | ||||||||||||||||||||||||||||||||||||||||
Notes receivable from affiliates | 175 | 206 | 175 | 186.4 | ||||||||||||||||||||||||||||||||||||||||
Assets held in separate accounts | 62,808.40 | 62,808.40 | 60,104.90 | 60,104.90 | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Funding agreements without fixed maturities and deferred annuities(1) | 21,124.50 | 25,594.70 | 21,010.80 | 24,379.60 | ||||||||||||||||||||||||||||||||||||||||
Supplementary contracts, immediate annuities and other | 595.2 | 701.3 | 624.3 | 727.1 | ||||||||||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
Annuity product guarantees: | ||||||||||||||||||||||||||||||||||||||||||||
FIA | 26.3 | 26.3 | 23.1 | 23.1 | ||||||||||||||||||||||||||||||||||||||||
Stabilizer and MCGs | 45 | 45 | — | — | ||||||||||||||||||||||||||||||||||||||||
Other derivatives | 143.4 | 143.4 | 216.6 | 216.6 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt | 4.9 | 4.9 | 4.9 | 4.9 | ||||||||||||||||||||||||||||||||||||||||
Embedded derivatives on reinsurance | (24.4 | ) | (24.4 | ) | (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) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
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, 2014 | $ | 476.2 | $ | 696.6 | $ | 1,172.80 | ||||||
Deferrals of commissions and expenses | 51 | 5.2 | 56.2 | |||||||||
Amortization: | ||||||||||||
Amortization | (69.6 | ) | (92.2 | ) | (161.8 | ) | ||||||
Interest accrued(1) | 26.8 | 44.8 | 71.6 | |||||||||
Net amortization included in the Condensed Consolidated Statements of Operations | (42.8 | ) | (47.4 | ) | (90.2 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | (75.4 | ) | (102.4 | ) | (177.8 | ) | ||||||
Balance at September 30, 2014 | $ | 409 | $ | 552 | $ | 961 | ||||||
DAC | VOBA | Total | ||||||||||
Balance at January 1, 2013 | $ | 296.5 | $ | 381.4 | $ | 677.9 | ||||||
Deferrals of commissions and expenses | 52.4 | 5.6 | 58 | |||||||||
Amortization: | ||||||||||||
Amortization | (45.2 | ) | (57.2 | ) | (102.4 | ) | ||||||
Interest accrued(1) | 25.1 | 45.6 | 70.7 | |||||||||
Net amortization included in the Condensed Consolidated Statements of Operations | (20.1 | ) | (11.6 | ) | (31.7 | ) | ||||||
Change in unrealized capital gains/losses on available-for-sale securities | 136.8 | 310.2 | 447 | |||||||||
Balance at September 30, 2013 | $ | 465.6 | $ | 685.6 | $ | 1,151.20 | ||||||
(1) Interest accrued at the following rates for VOBA: 5.5% to 7.0% during 2014 and 5.5% to 7.0% during 2013. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Accumulated Other Comprehensive Income | ' | ||||||||||||
Shareholder’s equity included the following components of Accumulated Other Comprehensive Income ("AOCI") as of the dates indicated: | |||||||||||||
September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Fixed maturities, net of OTTI | $ | 1,417.50 | $ | 885.4 | |||||||||
Equity securities, available-for-sale | 15.4 | 16.1 | |||||||||||
Derivatives | 178.8 | 148.8 | |||||||||||
DAC/VOBA and sales inducements adjustment on available-for-sale securities | (513.1 | ) | (363.1 | ) | |||||||||
Premium deficiency reserve adjustment | (117.8 | ) | (89.7 | ) | |||||||||
Other | — | * | — | * | |||||||||
Unrealized capital gains (losses), before tax | 980.8 | 597.5 | |||||||||||
Deferred income tax asset (liability) | (216.3 | ) | (118.6 | ) | |||||||||
Unrealized capital gains (losses), after tax | 764.5 | 478.9 | |||||||||||
Pension and other postretirement benefits liability, net of tax | 8.7 | 10.2 | |||||||||||
AOCI | $ | 773.2 | $ | 489.1 | |||||||||
* Less than $0.1. | |||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income | ' | ||||||||||||
Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated: | |||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (235.9 | ) | $ | 80.6 | $ | (155.3 | ) | |||||
Equity securities | (0.5 | ) | — | (0.5 | ) | ||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 1 | (0.3 | ) | 0.7 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 6.8 | (2.4 | ) | 4.4 | |||||||||
DAC/VOBA and sales inducements | 67.1 | (23.4 | ) | 43.7 | |||||||||
Premium deficiency reserve adjustment | 9.9 | (3.5 | ) | 6.4 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (151.6 | ) | 51 | (100.6 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | 6 | (1) | (2.1 | ) | 3.9 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | (2.0 | ) | 0.7 | (1.3 | ) | ||||||||
Change in unrealized gains/losses on derivatives | 4 | (1.4 | ) | 2.6 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (0.6 | ) | 0.2 | (0.4 | ) | ||||||||
Change in pension and other postretirement benefits liability | (0.6 | ) | 0.2 | (0.4 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (148.2 | ) | $ | 49.8 | $ | (98.4 | ) | |||||
* Less than $0.1. | |||||||||||||
(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | 581.7 | $ | (203.6 | ) | $ | 378.1 | ||||||
Equity securities | (0.4 | ) | — | (0.4 | ) | ||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 8.3 | (2.9 | ) | 5.4 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 6.9 | (2.4 | ) | 4.5 | |||||||||
DAC/VOBA and sales inducements | (177.8 | ) | (1) | 62.3 | (115.5 | ) | |||||||
Premium deficiency reserve adjustment | (35.4 | ) | 12.4 | (23.0 | ) | ||||||||
Change in unrealized gains/losses on available-for-sale securities | 383.3 | (134.2 | ) | 249.1 | |||||||||
Derivatives: | |||||||||||||
Derivatives | 50.9 | (2) | (17.8 | ) | 33.1 | ||||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | (5.1 | ) | 1.8 | (3.3 | ) | ||||||||
Change in unrealized gains/losses on derivatives | 45.8 | (16.0 | ) | 29.8 | |||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in pension and other postretirement benefits liability | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | 427.4 | $ | (149.6 | ) | $ | 277.8 | ||||||
* Less than $0.1. | |||||||||||||
(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (97.2 | ) | $ | 61.2 | (2) | $ | (36.0 | ) | ||||
Equity securities | (0.4 | ) | 0.2 | (0.2 | ) | ||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 2 | (0.7 | ) | 1.3 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 6.2 | (2.1 | ) | 4.1 | |||||||||
DAC/VOBA and sales inducements | 35.1 | (12.3 | ) | 22.8 | |||||||||
Premium deficiency reserve adjustment | 4.7 | (1.6 | ) | 3.1 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (49.6 | ) | 44.7 | (4.9 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | (3.7 | ) | (1) | 1.3 | (2.4 | ) | |||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | 2.4 | (0.9 | ) | 1.5 | |||||||||
Change in unrealized gains/losses on derivatives | (1.3 | ) | 0.4 | (0.9 | ) | ||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (0.7 | ) | 0.6 | (0.1 | ) | ||||||||
Change in pension and other postretirement benefits liability | (0.7 | ) | 0.6 | (0.1 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (51.6 | ) | $ | 45.7 | $ | (5.9 | ) | |||||
* Less than $0.1. | |||||||||||||
(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(2) Amount includes $28.6 valuation allowance. See the Income Taxes Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||
Available-for-sale securities: | |||||||||||||
Fixed maturities | $ | (1,317.3 | ) | $ | 486.5 | (3) | $ | (830.8 | ) | ||||
Equity securities | 2.6 | (0.9 | ) | 1.7 | |||||||||
Other | — | * | — | * | — | * | |||||||
OTTI | 3.4 | (1.2 | ) | 2.2 | |||||||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 8.4 | (2.9 | ) | 5.5 | |||||||||
DAC/VOBA and sales inducements | 447.5 | (1) | (156.6 | ) | 290.9 | ||||||||
Premium deficiency reserve adjustment | 62.9 | (22.0 | ) | 40.9 | |||||||||
Change in unrealized gains/losses on available-for-sale securities | (792.5 | ) | 302.9 | (489.6 | ) | ||||||||
Derivatives: | |||||||||||||
Derivatives | (68.0 | ) | (2) | 23.8 | (44.2 | ) | |||||||
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | 1.6 | (0.6 | ) | 1 | |||||||||
Change in unrealized gains/losses on derivatives | (66.4 | ) | 23.2 | (43.2 | ) | ||||||||
Pension and other postretirement benefits liability: | |||||||||||||
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in pension and other postretirement benefits liability | (1.7 | ) | 0.6 | (1.1 | ) | ||||||||
Change in Other comprehensive income (loss) | $ | (860.6 | ) | $ | 326.7 | $ | (533.9 | ) | |||||
* Less than $0.1. | |||||||||||||
(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. | |||||||||||||
(3) Amount includes $30.5 valuation allowance. See the Income Taxes Note to these Condensed Consolidated Financial Statements for additional information. |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
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: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before income taxes | $ | 60 | $ | 133.3 | $ | 224.7 | $ | 353 | ||||||||
Tax rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||
Income tax expense (benefit) at federal statutory rate | 21 | 46.7 | 78.6 | 123.6 | ||||||||||||
Tax effect of: | ||||||||||||||||
Dividends received deduction | (9.9 | ) | (9.0 | ) | (23.8 | ) | (20.6 | ) | ||||||||
Valuation allowance | — | 28.6 | — | 30.5 | ||||||||||||
IRS audit adjustment | — | — | (0.1 | ) | (0.3 | ) | ||||||||||
Other | (1.3 | ) | (0.6 | ) | (0.5 | ) | 0.2 | |||||||||
Income tax expense (benefit) | $ | 9.8 | $ | 65.7 | $ | 54.2 | $ | 133.4 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies Commitments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Other fixed maturities-state deposits | $ | 13.3 | $ | 13.1 | ||||
Securities pledged(1) | 148 | 140.1 | ||||||
Total restricted assets | $ | 161.3 | $ | 153.2 | ||||
(1) Includes the fair value of loaned securities of $100.1 and $97.6 as of September 30, 2014 and December 31, 2013, respectively, which is included in Securities pledged on the Condensed Consolidated Balance Sheets. In addition, as of September 30, 2014 and December 31, 2013, the Company delivered securities as collateral of $47.9 and $42.5, respectively, which is included in Securities pledged on the Condensed Consolidated Balance Sheets. |
Business_Basis_of_Presentation2
Business, Basis of Presentation and Significant Accounting Policies (Details) | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||
Sep. 30, 2014 | Oct. 29, 2013 | 7-May-13 | Oct. 29, 2013 | Sep. 08, 2014 | Mar. 25, 2014 | 7-May-13 | |
segment | ING U.S. Inc. | ING International | ING International | ING U.S. Inc. | ING U.S. Inc. | ING U.S. Inc. | |
Schedule of Equity Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Offering of shares by parent company and subsidiaries | ' | ' | 44,201,773 | ' | ' | ' | 30,769,230 |
Offering of shares by parent company and subsidiaries | ' | 37,950,000 | ' | ' | 22,277,993 | 30,475,000 | ' |
Ownership by affiliate of parent company | ' | ' | ' | 57.00% | ' | ' | ' |
Shares acquired from parent in buyback | ' | ' | ' | ' | 7,722,007 | 7,255,853 | ' |
Ownership percentage by parent | ' | ' | ' | ' | 32.50% | 43.00% | ' |
Number of operating segments | 1 | ' | ' | ' | ' | ' | ' |
Investments_Fixed_Maturities_a
Investments - Fixed Maturities and Equity Securities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Embedded Derivatives | $28.10 | [1] | $29 | [1] |
Equity securities, available-for-sale | 122.3 | 134.9 | ||
OTTI | 16.5 | [2] | 24.8 | [2] |
Securities pledged, Amortized Cost | 140.9 | 137.9 | ||
Equity securities, cost | 106.9 | 119.4 | ||
Total fixed maturities and equity securities, Amortized Cost | 19,888.10 | 19,837.40 | ||
Gross Unrealized Capital Gains | 1,529.90 | 1,199.60 | ||
Gross Unrealized Capital Losses | 104.1 | 365.4 | ||
Fair Value | 21,342 | 20,700.60 | ||
U.S. Treasuries | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 647.9 | 636.5 | ||
Fixed maturities, Gross Unrealized Capital Gains | 85.6 | 36.5 | ||
Fixed maturities, Gross Unrealized Capital Losses | 0.1 | 2.9 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 733.4 | 670.1 | ||
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 | 54.8 | 237.1 | ||
Fixed maturities, Gross Unrealized Capital Gains | 1.3 | 5 | ||
Fixed maturities, Gross Unrealized Capital Losses | 0 | 0 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 56.1 | 242.1 | ||
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 | 152.7 | 77.2 | ||
Fixed maturities, Gross Unrealized Capital Gains | 11.4 | 5.9 | ||
Fixed maturities, Gross Unrealized Capital Losses | 0.5 | 0.1 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 163.6 | 83 | ||
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 | 10,311.50 | 10,326 | ||
Fixed maturities, Gross Unrealized Capital Gains | 798.9 | 581 | ||
Fixed maturities, Gross Unrealized Capital Losses | 61.8 | 238.8 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 11,048.60 | 10,668.20 | ||
OTTI | 1.6 | [2] | 1.9 | [2] |
Foreign | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 5,683.20 | [3] | 5,572.50 | [3] |
Fixed maturities, Gross Unrealized Capital Gains | 376.9 | [3] | 298.1 | [3] |
Fixed maturities, Gross Unrealized Capital Losses | 35.4 | [3] | 100 | [3] |
Embedded Derivatives | 0 | [1],[3] | 0 | [1],[3] |
Fixed maturities, including securities pledged, Fair Value | 6,024.70 | [3] | 5,770.60 | [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 | 347.8 | [3] | 422.9 | [3] |
Fixed maturities, Gross Unrealized Capital Gains | 24.5 | [3] | 25.2 | [3] |
Fixed maturities, Gross Unrealized Capital Losses | 4.8 | [3] | 16.5 | [3] |
Embedded Derivatives | 0 | [1],[3] | 0 | [1],[3] |
Fixed maturities, including securities pledged, Fair Value | 367.5 | [3] | 431.6 | [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 | 5,335.40 | [3] | 5,149.60 | [3] |
Fixed maturities, Gross Unrealized Capital Gains | 352.4 | [3] | 272.9 | [3] |
Fixed maturities, Gross Unrealized Capital Losses | 30.6 | [3] | 83.5 | [3] |
Embedded Derivatives | 0 | [1],[3] | 0 | [1],[3] |
Fixed maturities, including securities pledged, Fair Value | 5,657.20 | [3] | 5,339 | [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 | 1,827.70 | 1,916.30 | ||
Fixed maturities, Gross Unrealized Capital Gains | 173.2 | 177.1 | ||
Fixed maturities, Gross Unrealized Capital Losses | 7 | 22.7 | ||
Embedded Derivatives | 28.1 | [1] | 29 | [1] |
Fixed maturities, including securities pledged, Fair Value | 2,022 | 2,099.70 | ||
OTTI | 11.9 | [2] | 15.3 | [2] |
Residential mortgage-backed securities agency | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 1,589.50 | 1,638.20 | ||
Fixed maturities, Gross Unrealized Capital Gains | 120.3 | 121.9 | ||
Fixed maturities, Gross Unrealized Capital Losses | 5 | 17.9 | ||
Embedded Derivatives | 16.3 | [1] | 16.9 | [1] |
Fixed maturities, including securities pledged, Fair Value | 1,721.10 | 1,759.10 | ||
OTTI | 0.2 | [2] | 0.2 | [2] |
Residential mortgage-backed securities non-agency | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 238.2 | 278.1 | ||
Fixed maturities, Gross Unrealized Capital Gains | 52.9 | 55.2 | ||
Fixed maturities, Gross Unrealized Capital Losses | 2 | 4.8 | ||
Embedded Derivatives | 11.8 | [1] | 12.1 | [1] |
Fixed maturities, including securities pledged, Fair Value | 300.9 | 340.6 | ||
OTTI | 11.7 | [2] | 15.1 | [2] |
Commercial mortgage-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 842.6 | 624.5 | ||
Fixed maturities, Gross Unrealized Capital Gains | 63.1 | 68.1 | ||
Fixed maturities, Gross Unrealized Capital Losses | 0.4 | 0.9 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 905.3 | 691.7 | ||
OTTI | 0 | [2] | 4.4 | [2] |
Other asset-backed securities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Without single maturity date, Fair Value | 414 | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 401.7 | 465.8 | ||
Fixed maturities, Gross Unrealized Capital Gains | 14.1 | 18 | ||
Fixed maturities, Gross Unrealized Capital Losses | 1.8 | 3.4 | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Fixed maturities, including securities pledged, Fair Value | 414 | 480.4 | ||
OTTI | 3 | [2] | 3.2 | [2] |
Fixed maturities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Fixed maturities, including securities pledged, Amortized Cost | 19,922.10 | 19,855.90 | ||
Fixed maturities, Gross Unrealized Capital Gains | 1,524.50 | 1,189.70 | ||
Fixed maturities, Gross Unrealized Capital Losses | 107 | 368.8 | ||
Embedded Derivatives | 28.1 | [1] | 29 | [1] |
Fixed maturities, including securities pledged, Fair Value | 21,367.70 | 20,705.80 | ||
OTTI | 16.5 | [2] | 24.8 | [2] |
Securities pledged, Amortized Cost | 140.9 | 137.9 | ||
Securities pledged, Gross Unrealized Capital Gains | 10 | 5.9 | ||
Securities pledged, Gross Unrealized Capital Losses | 2.9 | 3.7 | ||
Securities pledged, Gross Unrealized Capital Losses | 148 | 140.1 | ||
Total fixed maturities, less securities pledged, Amortized Cost | 19,781.20 | 19,718 | ||
Total fixed maturities, less securities pledged, Gross Unrealized Capital Gains | 1,514.50 | 1,183.80 | ||
Total fixed maturities, less securities pledged, Gross Unrealized Capital Losses | 104.1 | 365.1 | ||
Total fixed maturities, less securities pledged, Fair Value | 21,219.70 | 20,565.70 | ||
Equity securities, available-for-sale | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Embedded Derivatives | 0 | [1] | 0 | [1] |
Equity securities, available-for-sale | 122.3 | 134.9 | ||
OTTI | 0 | [2] | 0 | [2] |
Equity securities, cost | 106.9 | 119.4 | ||
Available-for-sale Equity Securities, Gross Unrealized Gain Accumulated In Investments | 15.4 | 15.8 | ||
Available-for-sale Equity Securities, Gross Unrealized Loss Accumulated In Investments | $0 | $0.30 | ||
[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 Condensed Consolidated Statements of Operations. | |||
[2] | Represents Other-than Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss). | |||
[3] | Primarily U.S. dollar denominated. |
Investments_Debt_Maturities_De
Investments - Debt Maturities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Mortgage-backed securities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Without single maturity date, Amortized Cost | $2,670.30 | ' |
Without single maturity date, Fair Value | 2,927.30 | ' |
Percentage collateralized of mortgage backed securities including interest-only strip or principal-only strip | 56.90% | 50.40% |
Other asset-backed securities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Without single maturity date, Amortized Cost | 401.7 | ' |
Without single maturity date, Fair Value | 414 | ' |
Fixed maturities, including securities pledged, Amortized Cost | 401.7 | 465.8 |
Fixed maturities, including securities pledged, Fair Value | 414 | 480.4 |
Fixed maturities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
One year or less, Amortized Cost | 803.4 | ' |
One year or less, Fair Value | 818.9 | ' |
After one year through five years, Amortized Cost | 3,945.20 | ' |
After one year through five years, Fair Value | 4,212.60 | ' |
After five years through ten years, Amortized Cost | 6,060.40 | ' |
After five years through ten years, Fair Value | 6,342.10 | ' |
After ten years, Amortized Cost | 6,041.10 | ' |
After ten years, Fair Value | 6,652.80 | ' |
Fixed maturities, including securities pledged, Amortized Cost | 19,922.10 | 19,855.90 |
Fixed maturities, including securities pledged, Fair Value | $21,367.70 | 20,705.80 |
Investments_Composition_of_US_
Investments - Composition of US and Foreign Corporate Securities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Communications | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | $1,254.60 | $1,315.90 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 122 | 81.5 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 7.4 | 36.8 |
Fixed maturities, including securities pledged, Fair Value | 1,369.20 | 1,360.60 |
Financial | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 2,286.80 | 2,114.70 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 199.4 | 166.9 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 4.5 | 20.2 |
Fixed maturities, including securities pledged, Fair Value | 2,481.70 | 2,261.40 |
Industrial and Other Companies | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 8,962.50 | 8,878.50 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 550.8 | 423.5 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 70.7 | 213.1 |
Fixed maturities, including securities pledged, Fair Value | 9,442.60 | 9,088.90 |
Transportation | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 438.1 | 440 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 33 | 22.5 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 2.7 | 9.9 |
Fixed maturities, including securities pledged, Fair Value | 468.4 | 452.6 |
Utilities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 2,704.90 | 2,726.50 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 246.1 | 159.5 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 7.1 | 42.3 |
Fixed maturities, including securities pledged, Fair Value | 2,943.90 | 2,843.70 |
U.S. and Foreign Corporate Securities | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
U.S. and foreign securities, Amortized Cost | 15,646.90 | 15,475.60 |
U.S. and foreign corporate securities, Gross Unrealized Capital Gains | 1,151.30 | 853.9 |
U.S. and foreign corporate securities, Gross Unrealized Capital Losses | 92.4 | 322.3 |
Fixed maturities, including securities pledged, Fair Value | $16,705.80 | $16,007.20 |
Investments_Repurchase_Agreeme
Investments - Repurchase Agreement, Securities Lending, VIEs (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Required collateral percentage of market value of loaned securities | 102.00% | ' |
Fair value of loaned securities | $100.10 | $97.60 |
Securities received as collateral | 104.2 | 102.7 |
Payables under securities loan agreement, including collateral held | 398.3 | 264.4 |
Collateralized loan obligations | Not a primary beneficiary of the VIE | ' | ' |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ' | ' |
Carrying value of VIE | 0.7 | 1 |
Securities pledged as collateral | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Fair value of loaned securities | 100.1 | 97.6 |
Payables under securities loan agreement, including collateral held | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' |
Payables under securities loan agreement, including collateral held | $104.20 | $102.70 |
Investments_Unrealized_Capital
Investments - Unrealized Capital Losses (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | $1,697.50 | $1,955.10 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 26.4 | 34.7 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 79.6 | 3,754.50 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 1.8 | 283.2 | ||
More Than Twelve Months Below Amortized Cost, Fair Value | 1,609.70 | 444.9 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 78.8 | 50.9 | ||
Total, Fair Value | 3,386.80 | 6,154.50 | ||
Total Unrealized Capital Losses | 107 | 368.8 | ||
Average market value of fixed maturities with unrealized capital losses aged more than twelve months | 95.30% | 89.70% | ||
U.S. Treasuries | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | 27.1 | 124.4 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.1 | 2.1 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 0 | 34.2 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 0.8 | ||
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 | 27.1 | 158.6 | ||
Total Unrealized Capital Losses | 0.1 | 2.9 | ||
U.S. government agencies and authorities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | 2.5 | 0 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | [1] | 0 | [1] |
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 0 | 0 | ||
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 | 0 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0 | ||
Total, Fair Value | 2.5 | 0 | ||
Total Unrealized Capital Losses | 0 | [1] | 0 | [1] |
U.S. corporate, state and municipalities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | 1,013.40 | 1,002.80 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 15.9 | 22.9 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 33.4 | 2,413.20 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 1.4 | 183.8 | ||
More Than Twelve Months Below Amortized Cost, Fair Value | 925.8 | 236.9 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 45 | 32.2 | ||
Total, Fair Value | 1,972.60 | 3,652.90 | ||
Total Unrealized Capital Losses | 62.3 | 238.9 | ||
Foreign | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | 453.6 | 448.8 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 9.4 | 5.7 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 9.7 | 1,063.90 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.1 | 86.4 | ||
More Than Twelve Months Below Amortized Cost, Fair Value | 496.2 | 76.2 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 25.9 | 7.9 | ||
Total, Fair Value | 959.5 | 1,588.90 | ||
Total Unrealized Capital Losses | 35.4 | 100 | ||
Residential mortgage-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | 94.2 | 262.3 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.4 | 2.9 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 36.5 | 212.9 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.3 | 12 | ||
More Than Twelve Months Below Amortized Cost, Fair Value | 169 | 105.8 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 6.3 | 7.8 | ||
Total, Fair Value | 299.7 | 581 | ||
Total Unrealized Capital Losses | 7 | 22.7 | ||
Commercial mortgage-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | 47.8 | 77.9 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.4 | 0.9 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 0 | 0 | ||
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 | 0 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0 | ||
Total, Fair Value | 47.8 | 77.9 | ||
Total Unrealized Capital Losses | 0.4 | 0.9 | ||
Other asset-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Fair Value | 58.9 | 38.9 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.2 | 0.2 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value | 0 | 30.3 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 0.2 | ||
More Than Twelve Months Below Amortized Cost, Fair Value | 18.7 | 26 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 1.6 | 3 | ||
Total, Fair Value | 77.6 | 95.2 | ||
Total Unrealized Capital Losses | $1.80 | $3.40 | ||
[1] | Less than $0.1. |
Investments_Unrealized_Capital1
Investments - Unrealized Capital Losses 1 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | $26.40 | $34.70 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 1.8 | 283.2 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 78.8 | 50.9 | ||
Total Unrealized Capital Losses | 107 | 368.8 | ||
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 | 1,725.60 | 2,054.40 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 26.5 | 45.3 | ||
Six months or less below amortized cost, Number of Securities | 320 | 322 | ||
More than six months and twelve months or less below amortized cost, Amortized Cost | 134.4 | 3,991.40 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 6.3 | 272.6 | ||
More than six months and twelve months or less below amortized cost, Number of Securities | 36 | 502 | ||
More than twelve months below amortized cost, Amortized Cost | 1,631.50 | 420.4 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 73.6 | 37.3 | ||
More than twelve months below amortized cost, Number of Securities | 273 | 137 | ||
Total Amortized Cost | 3,491.50 | 6,466.20 | ||
Total Unrealized Capital Losses | 106.4 | 355.2 | ||
Total Number of Securities | 629 | 961 | ||
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 | 0 | 24.1 | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 5.3 | ||
Six months or less below amortized cost, Number of Securities | 0 | 7 | ||
More than six months and twelve months or less below amortized cost, Amortized Cost | 0 | 23.5 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 5.8 | ||
More than six months and twelve months or less below amortized cost, Number of Securities | 1 | 3 | ||
More than twelve months below amortized cost, Amortized Cost | 2.3 | 9.5 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0.6 | 2.5 | ||
More than twelve months below amortized cost, Number of Securities | 2 | 8 | ||
Total Amortized Cost | 2.3 | 57.1 | ||
Total Unrealized Capital Losses | 0.6 | 13.6 | ||
Total Number of Securities | 3 | 18 | ||
U.S. Treasuries | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.1 | 2.1 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 0.8 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0 | ||
Total Unrealized Capital Losses | 0.1 | 2.9 | ||
U.S. Treasuries | Fair value decline below amortized cost less than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 27.2 | 161.5 | ||
Total Unrealized Capital Losses | 0.1 | 2.9 | ||
Total Number of Securities | 2 | 4 | ||
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. government agencies and authorities | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | [1] | 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 | ||
Total Unrealized Capital Losses | 0 | [1] | 0 | [1] |
U.S. government agencies and authorities | Fair value decline below amortized cost less than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 2.5 | 0 | ||
Total Unrealized Capital Losses | 0 | [1] | 0 | [1] |
Total Number of Securities | 1 | 0 | ||
U.S. government agencies and authorities | 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 | 15.9 | 22.9 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 1.4 | 183.8 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 45 | 32.2 | ||
Total Unrealized Capital Losses | 62.3 | 238.9 | ||
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 | 2,034.90 | 3,869 | ||
Total Unrealized Capital Losses | 62.3 | 233.2 | ||
Total Number of Securities | 335 | 519 | ||
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 | 0 | 22.8 | ||
Total Unrealized Capital Losses | 0 | 5.7 | ||
Total Number of Securities | 1 | 2 | ||
Foreign | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 9.4 | 5.7 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.1 | 86.4 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 25.9 | 7.9 | ||
Total Unrealized Capital Losses | 35.4 | 100 | ||
Foreign | Fair value decline below amortized cost less than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 994.9 | 1,665.80 | ||
Total Unrealized Capital Losses | 35.4 | 95 | ||
Total Number of Securities | 148 | 239 | ||
Foreign | Fair value decline below amortized cost greater than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 0 | 23.1 | ||
Total Unrealized Capital Losses | 0 | 5 | ||
Total Number of Securities | 0 | 5 | ||
Residential mortgage-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.4 | 2.9 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.3 | 12 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 6.3 | 7.8 | ||
Total Unrealized Capital Losses | 7 | 22.7 | ||
Residential mortgage-backed | Fair value decline below amortized cost less than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 306.7 | 596.9 | ||
Total Unrealized Capital Losses | 7 | 21 | ||
Total Number of Securities | 122 | 162 | ||
Residential mortgage-backed | Fair value decline below amortized cost greater than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 0 | 6.8 | ||
Total Unrealized Capital Losses | 0 | 1.7 | ||
Total Number of Securities | 0 | 7 | ||
Commercial mortgage-backed | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0.4 | 0.9 | ||
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 | ||
Total Unrealized Capital Losses | 0.4 | 0.9 | ||
Commercial mortgage-backed | Fair value decline below amortized cost less than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 48.2 | 78.8 | ||
Total Unrealized Capital Losses | 0.4 | 0.9 | ||
Total Number of Securities | 5 | 12 | ||
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 | 0.2 | ||
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | 0.2 | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 1.6 | 3 | ||
Total Unrealized Capital Losses | 1.8 | 3.4 | ||
Other asset-backed | Fair value decline below amortized cost less than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 77.1 | 94.2 | ||
Total Unrealized Capital Losses | 1.2 | 2.2 | ||
Total Number of Securities | 16 | 25 | ||
Other asset-backed | Fair value decline below amortized cost greater than 20% | ' | ' | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ||
Total Amortized Cost | 2.3 | 4.4 | ||
Total Unrealized Capital Losses | $0.60 | $1.20 | ||
Total Number of Securities | 2 | 4 | ||
[1] | Less than $0.1. |
Investments_Troubled_Debt_Rest
Investments - Troubled Debt Restructuring (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
loan | ||
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructured loans | $31.90 | $37.50 |
Cross collateralized, cross defaulted | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of troubled debt restructurings | ' | 20 |
Commercial mortgage loans | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of troubled debt restructurings | ' | 20 |
Troubled debt restructurings pre-modification carrying value | ' | 39.4 |
Amount of principal repaid on troubled debt restructurings | $7.50 | ' |
Investments_Mortgage_Loans_Det
Investments - Mortgage Loans (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ||
Maximum loan to value ratio generally allowed | 75.00% | ' | ||
Commercial mortgage loans | $3,565.90 | [1] | $3,397.30 | [1] |
Collective valuation allowance | -1.2 | -1.2 | ||
Total net commercial mortgage loans | $3,564.70 | $3,396.10 | ||
[1] | Balances do not include collective valuation allowance for losses. |
Investments_Allowance_for_Loan
Investments - Allowance for Loan Losses (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Collective valuation allowance for losses, beginning of period | $1.20 | $1.30 |
Addition to (reduction of) allowance for losses | 0 | -0.1 |
Collective valuation allowance for losses, end of period | $1.20 | $1.20 |
Investments_Impaired_Loans_Det
Investments - Impaired Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ' | ||||
Impaired loans with allowances for losses | $0 | ' | $0 | ' | $0 | ||||
Impaired loans without valuation allowances | 37.1 | ' | 37.1 | ' | 42.9 | ||||
Subtotal | 37.1 | ' | 37.1 | ' | 42.9 | ||||
Less: Allowances for losses on impaired loans | 0 | ' | 0 | ' | 0 | ||||
Impaired loans, net | 37.1 | ' | 37.1 | ' | 42.9 | ||||
Unpaid principal balance of impaired loans | 38.6 | ' | 38.6 | ' | 44.4 | ||||
Impaired loans, average investment during the period (amortized cost) | 37.1 | [1] | 24.2 | [1] | 40 | [1] | 24.3 | [1] | ' |
Interest income recognized on impaired loans, on an accrual basis | 0.5 | [1] | 0.5 | [1] | 1.7 | [1] | 0.7 | [1] | ' |
Interest income recognized on impaired loans, on a cash basis | 0.5 | [1] | 0.5 | [1] | 1.5 | [1] | 0.7 | [1] | ' |
Interest income recognized on restructured loans, on an accrual basis | $0.40 | [1] | $0.40 | [1] | $1.40 | [1] | $0.40 | [1] | ' |
[1] | Includes amounts for Troubled debt restructured loans. |
Investments_Loans_by_Loan_to_V
Investments - Loans by Loan to Value (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
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% | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | $3,565.90 | [1] | $3,397.30 | [1] |
0% - 50% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 0.00% | 0.00% | ||
Loan to Value Ratio, maximum | 50.00% | 50.00% | ||
Total commercial mortgage loans | 424.2 | [1] | 495.7 | [1] |
50% - 60% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 50.00% | 50.00% | ||
Loan to Value Ratio, maximum | 60.00% | 60.00% | ||
Total commercial mortgage loans | 895.3 | [1] | 894.5 | [1] |
60% - 70% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 60.00% | 60.00% | ||
Loan to Value Ratio, maximum | 70.00% | 70.00% | ||
Total commercial mortgage loans | 2,099.90 | [1] | 1,879.50 | [1] |
70% - 80% | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 70.00% | 70.00% | ||
Loan to Value Ratio, maximum | 80.00% | 80.00% | ||
Total commercial mortgage loans | 134.7 | [1] | 114.9 | [1] |
80% and above | ' | ' | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ' | ' | ||
Loan to Value Ratio, minimum | 80.00% | 80.00% | ||
Total commercial mortgage loans | $11.80 | [1] | $12.70 | [1] |
[1] | Balances do not include collective valuation allowance for losses. |
Investments_Loans_by_Debt_Serv
Investments - Loans by Debt Service Coverage Ratio (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
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% | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | $3,565.90 | [1] | $3,397.30 | [1] |
Greater than 1.5x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 150.00% | 150.00% | ||
Total commercial mortgage loans | 2,638.90 | [1] | 2,388.50 | [1] |
1.25x - 1.5x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 125.00% | 125.00% | ||
Debt Service Coverage Ratio, maximum | 150.00% | 150.00% | ||
Total commercial mortgage loans | 549.7 | [1] | 542.4 | [1] |
1.0x - 1.25x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 100.00% | 100.00% | ||
Debt Service Coverage Ratio, maximum | 125.00% | 125.00% | ||
Total commercial mortgage loans | 248.9 | [1] | 275.8 | [1] |
Less than 1.0x | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Debt Service Coverage Ratio, minimum | 0.00% | 0.00% | ||
Debt Service Coverage Ratio, maximum | 100.00% | 100.00% | ||
Total commercial mortgage loans | 126.7 | [1] | 190.5 | [1] |
Construction Loans or Loans on Land [Member] | ' | ' | ||
Schedule of Loans by Debt Service Coverage Ratio [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Development | $1.70 | [1] | $0.10 | [1] |
[1] | Balances do not include collective valuation allowance for losses. |
Investments_Loans_by_US_Region
Investments - Loans by U.S. Region (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 100.00% | [1] | 100.00% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | $3,565.90 | [1] | $3,397.30 | [1] |
Pacific | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 22.50% | [1] | 22.30% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 802.8 | [1] | 752.8 | [1] |
South Atlantic | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 21.00% | [1] | 20.80% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 750.3 | [1] | 707.8 | [1] |
Middle Atlantic | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 13.70% | [1] | 12.10% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 486.8 | [1] | 411.4 | [1] |
East North Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 11.90% | [1] | 11.30% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 422.7 | [1] | 383.1 | [1] |
West South Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 12.40% | 13.70% | ||
Loans Receivable, Gross, Commercial, Real Estate | 443.2 | 467.1 | ||
Mountain | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 7.90% | [1] | 7.80% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 281.6 | [1] | 263.9 | [1] |
New England | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 2.00% | 3.40% | ||
Loans Receivable, Gross, Commercial, Real Estate | 70.8 | 116.7 | ||
West North Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 6.40% | [1] | 6.60% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 229.5 | [1] | 224.9 | [1] |
East South Central | ' | ' | ||
Open Option Contracts Written [Line Items] | ' | ' | ||
Loans by region percentage of total loans | 2.20% | [1] | 2.00% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | $78.20 | [1] | $69.60 | [1] |
[1] | Balances do not include collective valuation allowance for losses. |
Investments_Loans_by_Property_
Investments - Loans by Property Type (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 100.00% | [1] | 100.00% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | $3,565.90 | [1] | $3,397.30 | [1] |
Industrial | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 26.40% | [1] | 28.60% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 941.4 | [1] | 972.6 | [1] |
Retail | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 32.80% | [1] | 31.90% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 1,167.30 | [1] | 1,082.10 | [1] |
Office | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 12.30% | [1] | 13.60% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 437.3 | [1] | 462.1 | [1] |
Apartments | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 14.70% | [1] | 13.10% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 525.8 | [1] | 445.2 | [1] |
Hotel/Motel | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 4.20% | [1] | 5.40% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 150.9 | [1] | 182.8 | [1] |
Mixed Use | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 4.00% | [1] | 2.10% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | 143.4 | [1] | 70.9 | [1] |
Other | ' | ' | ||
Investment Holdings [Line Items] | ' | ' | ||
Loans by property type percentage of total loans | 5.60% | [1] | 5.30% | [1] |
Loans Receivable, Gross, Commercial, Real Estate | $199.80 | [1] | $181.60 | [1] |
[1] | Balances do not include collective valuation allowance for losses. |
Investments_Mortgages_by_Year_
Investments - Mortgages by Year of Origination (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | $3,565.90 | [1] | $3,397.30 | [1] |
Year of Origination 2014 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | 445.8 | [1] | 0 | [1] |
Year of Origination 2013 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | 767.1 | [1] | 785.2 | [1] |
Year of Origination 2012 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | 889.2 | [1] | 908.1 | [1] |
Year of Origination 2011 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | 717.4 | [1] | 792.8 | [1] |
Year of Origination 2010 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | 108.6 | [1] | 121.1 | [1] |
Year of Origination 2009 | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | 39.1 | [1] | 68.4 | [1] |
Year Of Origination 2008 And Prior [Member] | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Loans Receivable, Gross, Commercial, Real Estate | $598.70 | [1] | $721.70 | [1] |
[1] | Balances do not include collective valuation allowance for losses. |
Investments_OTTI_Details
Investments - OTTI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
securities | securities | securities | securities | |||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Impairment | $1.90 | $0.80 | $4.20 | $2.70 | ||||
No. of Securities | 16 | 17 | 32 | 37 | ||||
U.S. corporate | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Impairment | 1.6 | 0 | 1.7 | 0 | ||||
No. of Securities | 2 | 0 | 2 | 0 | ||||
Foreign | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Impairment | 0 | [1] | 0 | [1] | 1.2 | [1] | 0 | [1] |
No. of Securities | 0 | [1] | 0 | [1] | 5 | [1] | 0 | [1] |
Residential mortgage-backed | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Impairment | 0.3 | 0.4 | 1.2 | 2.2 | ||||
No. of Securities | 13 | 14 | 22 | 32 | ||||
Commercial mortgage-backed | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Impairment | 0 | 0.1 | 0.1 | 0.2 | ||||
No. of Securities | 0 | 1 | 2 | 3 | ||||
Other asset-backed securities | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Impairment | 0 | [2] | 0.2 | 0 | [2] | 0.2 | ||
No. of Securities | 1 | 1 | 1 | 1 | ||||
Equity securities | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Impairment | 0 | 0.1 | 0 | 0.1 | ||||
No. of Securities | 0 | 1 | 0 | 1 | ||||
Intent related impairment | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
No. of Securities | 2 | 3 | 11 | 5 | ||||
Write-down related to intent impairments | 1.6 | 0.1 | 3 | 0.2 | ||||
Intent related impairment | U.S. corporate | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
No. of Securities | 2 | 0 | 2 | 0 | ||||
Write-down related to intent impairments | 1.6 | 0 | 1.6 | 0 | ||||
Intent related impairment | Foreign | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
No. of Securities | 0 | [1] | 0 | [1] | 5 | [1] | 0 | [1] |
Write-down related to intent impairments | 0 | [1] | 0 | [1] | 1.2 | [1] | 0 | [1] |
Intent related impairment | Residential mortgage-backed | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
No. of Securities | 0 | 2 | 2 | 2 | ||||
Write-down related to intent impairments | 0 | 0 | 0.1 | 0 | ||||
Intent related impairment | Commercial mortgage-backed | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
No. of Securities | 0 | 1 | 2 | 3 | ||||
Write-down related to intent impairments | 0 | 0.1 | 0.1 | 0.2 | ||||
Intent related impairment | Other asset-backed securities | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
No. of Securities | 0 | 0 | 0 | 0 | ||||
Write-down related to intent impairments | 0 | 0 | 0 | 0 | ||||
Credit related impairment | ' | ' | ' | ' | ||||
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' | ||||
Write-downs related to credit impairments | $0.30 | $0.70 | $1.20 | $2.50 | ||||
[1] | Primarily U.S. dollar denominated. | |||||||
[2] | Less than $0.1. |
Investments_OTTI_OCI_Details
Investments - OTTI OCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other than Temporary Impairment, Recognized in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | $19 | $20.20 | $19.60 | $20 |
Additional Credit Impairments [Abstract] | ' | ' | ' | ' |
On securities not previously impaired | 0 | 0.3 | 0.7 | 1.1 |
On securities previously impaired | 0.3 | 0.4 | 0.5 | 1.4 |
Reductions [Abstract] | ' | ' | ' | ' |
Securities sold, matured, prepaid, or paid down | 1.1 | 1.1 | 2.6 | 2.7 |
Balance, ending | $18.20 | $19.80 | $18.20 | $19.80 |
Investments_Net_Investment_Inc
Investments - Net Investment Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | $361.30 | $340.20 | $1,070.30 | $1,055.70 |
Less: investment expense | 13.1 | 12 | 38.4 | 36.4 |
Net investment income | 348.2 | 328.2 | 1,031.90 | 1,019.30 |
Fixed maturities | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 306.4 | 292.2 | 904.7 | 900.5 |
Equity securities, available-for-sale | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 0.7 | 1.7 | 5.2 | 1.6 |
Mortgage loans on real estate | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 41.7 | 39 | 123.5 | 116.5 |
Policy loans | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 3.4 | 3.2 | 10 | 9.6 |
Short-term investments and cash equivalents | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | 0.1 | 0.2 | 0.4 | 0.7 |
Other | ' | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' |
Gross investment income | $9 | $3.90 | $26.50 | $26.80 |
Investments_Net_Realized_Capit
Investments - Net Realized Capital Gains (Losses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | ($42.10) | ($28.10) | ($110.20) | ($138.10) |
After-tax net realized capital gains (losses), after tax | -27.4 | -46.9 | -71.6 | -120.3 |
Proceeds from sale of investments | ' | ' | ' | ' |
Proceeds on sales | 308.7 | 283.1 | 1,278.70 | 1,206.30 |
Gross gains | 1.3 | 1.4 | 22.2 | 10.6 |
Gross losses | 6.9 | 8.1 | 27 | 16.4 |
Derivatives | ' | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | 11.5 | -10.1 | -1.4 | -71.9 |
Fixed maturities | ' | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | 0.4 | -3.6 | -0.9 | -20.8 |
Product guarantees | ' | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | -12.5 | 17.9 | -44.5 | 94.4 |
Other investments | ' | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | 0 | 0.1 | 0 | -0.1 |
Fixed maturities, available-for-sale, including securities pledged | ' | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | -6.8 | -6.5 | -6.5 | -8.7 |
Fixed maturities, at fair value using the fair value option | ' | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | -34.7 | -26 | -58.2 | -131.1 |
Equity securities, available-for-sale | ' | ' | ' | ' |
Available-for-sale Securities Including Securities Pledged [Line Items] | ' | ' | ' | ' |
Realized capital gains (losses) | $0 | $0.10 | $1.30 | $0.10 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Notional and Fair Values (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | $449.40 | $493.40 | ||
Derivatives liabilities | 190.3 | 185.7 | ||
Fixed maturities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 28.1 | 29 | ||
Derivatives liabilities | 0 | 0 | ||
Fixed indexed annuities (FIA) | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivatives liabilities | 71.3 | 23.1 | ||
Reinsurance Agreements | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 0 | 0 | ||
Derivatives liabilities | -24.4 | -54 | ||
Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 27,545.70 | 22,206 | ||
Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 181.3 | 197.1 | ||
Credit contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 384 | 384 | ||
Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 575.8 | [1] | 763.3 | [1] |
Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 51.2 | [1] | 51.2 | [1] |
Not Designated as Hedging Instrument | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 26,969.90 | [1],[2] | 21,442.70 | [1],[2] |
Not Designated as Hedging Instrument | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 130.1 | [1] | 145.9 | [1] |
Not Designated as Hedging Instrument | Equity contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 15.9 | [1] | 9.1 | [1] |
Not Designated as Hedging Instrument | Credit contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 384 | [1] | 384 | [1] |
Derivatives | Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 94.5 | [1] | 81 | [1] |
Derivatives liabilities | 0 | [1] | 0.2 | [1] |
Derivatives | Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 4.4 | [1] | 2.2 | [1] |
Derivatives liabilities | 0 | [1] | 0.6 | [1] |
Derivatives | Not Designated as Hedging Instrument | Interest rate contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 310 | [1],[2] | 367.6 | [1],[2] |
Derivatives liabilities | 138.7 | [1],[2] | 206.2 | [1],[2] |
Derivatives | Not Designated as Hedging Instrument | Foreign exchange contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 5.9 | [1] | 5.5 | [1] |
Derivatives liabilities | 4.7 | [1] | 9.6 | [1] |
Derivatives | Not Designated as Hedging Instrument | Equity contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 0 | [1] | 0 | [1],[3] |
Derivatives liabilities | 0 | [1] | 0 | [1] |
Derivatives | Not Designated as Hedging Instrument | Credit contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets | 6.5 | [1] | 8.1 | [1] |
Derivatives liabilities | $0 | [1] | $0 | [1] |
[1] | Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value. | |||
[2] | . | |||
[3] | Less than $0.1. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Asset Fair Value | $421.30 | $464.40 | ||
Liability Fair Value | 143.4 | 216.6 | ||
Counterparty netting, Assets | -143.4 | [1] | -201.3 | [1] |
Counterparty netting, Liabilities | -143.4 | [1] | -201.3 | [1] |
Cash collateral netting, Assets | -231.4 | [1] | -134 | [1] |
Cash collateral netting, Liabilities | 0 | [1] | -5.4 | [1] |
Securities collateral netting, Assets | -4.1 | [1] | -15.9 | [1] |
Securities collateral netting, Liabilities | 0 | [1] | -4.8 | [1] |
Net receivables | 42.4 | 113.2 | ||
Net payables | 0 | 5.1 | ||
Credit contracts | ' | ' | ||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Notional Amount | 384 | 384 | ||
Asset Fair Value | 6.5 | 8.1 | ||
Liability Fair Value | 0 | 0 | ||
Foreign exchange contracts | ' | ' | ||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Notional Amount | 181.3 | 197.1 | ||
Asset Fair Value | 10.3 | 7.7 | ||
Liability Fair Value | 4.7 | 10.2 | ||
Interest rate contracts | ' | ' | ||
Offsetting Assets and liabilities [Line Items] | ' | ' | ||
Notional Amount | 27,545.70 | 22,206 | ||
Asset Fair Value | 404.5 | 448.6 | ||
Liability Fair Value | $138.70 | $206.40 | ||
[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 $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ||||
Cash collateral held for securities loan agreement | $4.20 | ' | $4.20 | ' | $16.30 | ||||
Net realized gains (losses) on derivatives | 11.2 | 9.5 | -76.4 | 52.8 | ' | ||||
Other Net Realized Capital Gains (Losses) | Within fixed maturity investments | ' | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ||||
Net realized gains (losses) on derivatives | 0.4 | [1] | -3.6 | [1] | -0.9 | [1] | -20.8 | [1] | ' |
Other Net Realized Capital Gains (Losses) | Fixed indexed annuities (FIA) | ' | ' | ' | ' | ' | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ||||
Net realized gains (losses) on derivatives | -12.5 | [1] | 16.9 | [1] | -44.6 | [1] | 93.3 | [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 | 0.1 | [2] | 0 | [2] | 0.1 | [2] | 0.1 | [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] | 0.4 | [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 | 9.1 | [1] | -8.5 | [1] | -6.5 | [1] | -86.4 | [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 | 2.3 | [1] | -4.1 | [1] | 2.3 | [1] | 7.9 | [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 | 0 | [1] | 0.7 | [1] | 1 | [1] | 2.4 | [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 | -0.1 | [1] | 1.8 | [1] | 1.3 | [1] | 4.1 | [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 | [1] | 1 | [1] | 0.1 | [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 | $11.80 | [3] | $5.30 | [3] | ($29.60) | [3] | $51.10 | [3] | ' |
[1] | Changes in value are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | ||||||||
[2] | Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses) in the Condensed 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 Condensed Consolidated Statements of Operations. For the three and nine months ended SeptemberB 30, 2014 and 2013, ineffective amounts were immaterial. | ||||||||
[3] | Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Condensed Consolidated Statements of Operations. |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Credit Default Swaps (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Cash collateral held for securities loan agreement | $4.20 | $16.30 | ||
Securities pledged as collateral | 148 | 140.1 | ||
Asset Fair Value | 449.4 | 493.4 | ||
Liability Fair Value | 190.3 | 185.7 | ||
Credit contracts | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 384 | 384 | ||
Credit contracts | Not Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivatives, Notional Amount | 384 | [1] | 384 | [1] |
Maximum potential future net exposure on sale of credit default swaps | 384 | 384 | ||
Maturity period of derivative | '5 years | ' | ||
Credit contracts | Not Designated as Hedging Instrument | Derivatives | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset Fair Value | 6.5 | [1] | 8.1 | [1] |
Liability Fair Value | 0 | [1] | 0 | [1] |
Fixed maturities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Collateral Securities Repledged, Delivered, or Used | 47.9 | 42.5 | ||
Over the Counter [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Cash collateral held for securities loan agreement | 160.7 | 127.4 | ||
Exchange Cleared [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Securities pledged as collateral | $71.10 | $1.20 | ||
[1] | Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Measurement (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ||
Equity securities, available-for-sale | $122.30 | $134.90 | ||
Derivatives | 421.3 | 464.4 | ||
Liabilities: | ' | ' | ||
Derivatives | 143.4 | 216.6 | ||
Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 676.5 | 618.8 | ||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement | 616.3 | 529.7 | ||
Assets held in separate accounts | 57,997.50 | 54,715.30 | ||
Total assets, fair value | 59,375.20 | 55,962.80 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 0 | 0 | ||
Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 20,119.20 | 19,852.40 | ||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement | 1.4 | 0 | ||
Assets held in separate accounts | 4,797.30 | 5,376.50 | ||
Total assets, fair value | 25,339.20 | 25,693.30 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 119 | 162.6 | ||
Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 572 | 234.6 | ||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement | 0 | 0 | ||
Assets held in separate accounts | 13.6 | 13.1 | ||
Total assets, fair value | 623 | 283.6 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 71.3 | 23.1 | ||
Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 21,367.70 | 20,705.80 | ||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement | 617.7 | 529.7 | ||
Assets held in separate accounts | 62,808.40 | 60,104.90 | ||
Total assets, fair value | 85,337.40 | 81,939.70 | ||
Liabilities: | ' | ' | ||
Total liabilities, fair value | 190.3 | 185.7 | ||
Reinsurance Agreements | Assets measured on recurring basis | Level 1 | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Reinsurance Agreements | Assets measured on recurring basis | Level 2 | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | -24.4 | -54 | ||
Reinsurance Agreements | Assets measured on recurring basis | Level 3 | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Reinsurance Agreements | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Liabilities: | ' | ' | ||
Derivatives | -24.4 | -54 | ||
Interest rate contracts | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Liabilities: | ' | ' | ||
Derivatives | 0 | 0 | ||
Interest rate contracts | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 404.5 | 448.6 | ||
Liabilities: | ' | ' | ||
Derivatives | 138.7 | 206.4 | ||
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 | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 404.5 | 448.6 | ||
Liabilities: | ' | ' | ||
Derivatives | 138.7 | 206.4 | ||
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 | 10.3 | 7.7 | ||
Liabilities: | ' | ' | ||
Derivatives | 4.7 | 10.2 | ||
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 | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 10.3 | 7.7 | ||
Liabilities: | ' | ' | ||
Derivatives | 4.7 | 10.2 | ||
Credit contracts | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Credit contracts | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 6.5 | 8.1 | ||
Credit contracts | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 0 | 0 | ||
Credit contracts | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Derivatives | 6.5 | 8.1 | ||
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 | 0 | ||
Stabilizer and MCGs | Assets measured on recurring basis | Level 3 | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 45 | 0 | ||
Stabilizer and MCGs | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 45 | 0 | ||
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 | 26.3 | 23.1 | ||
FIA | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Liabilities: | ' | ' | ||
Product guarantees | 26.3 | 23.1 | ||
Fixed maturities | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 21,367.70 | 20,705.80 | ||
U.S. Treasuries | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 733.4 | 670.1 | ||
U.S. Treasuries | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 676.5 | 618.8 | ||
U.S. Treasuries | Assets measured on recurring basis | Level 2 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 56.9 | 51.3 | ||
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 | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 733.4 | 670.1 | ||
U.S. government agencies and authorities | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 56.1 | 242.1 | ||
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 | 56.1 | 237 | ||
U.S. government agencies and authorities | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 0 | 5.1 | ||
U.S. government agencies and authorities | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 56.1 | 242.1 | ||
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 | 10,825.40 | 10,605.90 | ||
U.S. corporate, state and municipalities | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 386.8 | 145.3 | ||
U.S. corporate, state and municipalities | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 11,212.20 | 10,751.20 | ||
Foreign | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 367.5 | [1] | 431.6 | [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 | 5,879.80 | [1] | 5,727.80 | [1] |
Foreign | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 144.9 | [1] | 42.8 | [1] |
Foreign | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 6,024.70 | [1] | 5,770.60 | [1] |
Residential mortgage-backed | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 2,022 | 2,099.70 | ||
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 | 2,003 | 2,076 | ||
Residential mortgage-backed | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 19 | 23.7 | ||
Residential mortgage-backed | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 2,022 | 2,099.70 | ||
Commercial mortgage-backed | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 905.3 | 691.7 | ||
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 | 886.4 | 691.7 | ||
Commercial mortgage-backed | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 18.9 | 0 | ||
Commercial mortgage-backed | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 905.3 | 691.7 | ||
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 | 411.6 | 462.7 | ||
Other asset-backed Securities | Assets measured on recurring basis | Level 3 | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 2.4 | 17.7 | ||
Other asset-backed Securities | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Fixed maturities, including securities pledged, Fair Value | 414 | 480.4 | ||
Equity securities | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | 122.3 | 134.9 | ||
Equity securities | Assets measured on recurring basis | Level 1 | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | 84.9 | 99 | ||
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 | 37.4 | 35.9 | ||
Equity securities | Assets measured on recurring basis | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Assets: | ' | ' | ||
Equity securities, available-for-sale | $122.30 | $134.90 | ||
[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 $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Separate Accounts | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Fair Value, Equity securities, available-for-sale, beginning balance | $15.90 | $19.90 | $13.10 | [1] | $16.30 | [1] | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | 0.1 | [1] | 0 | [1] | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | 0 | [1] | 0 | [1] | ||
Purchases | 4.7 | 0.7 | 10.6 | [1] | 8 | [1] | ||
Issuances | 0 | 0 | 0 | [1] | 0 | [1] | ||
Sales | -1.3 | -0.2 | -4.5 | [1] | -10.1 | [1] | ||
Settlements | 0 | 0 | 0 | [1] | 0 | [1] | ||
Transfers in to Level 3 | 0.9 | 0 | 0.9 | [1],[2] | 2.2 | [1],[2] | ||
Transfers out of Level 3 | -6.6 | [1],[2] | -14 | -6.6 | [1],[2] | -10 | [1],[2] | |
Fair Value, Equity securities, available-for-sale, ending balance | 13.6 | [1] | 6.4 | [1] | 13.6 | [1] | 6.4 | [1] |
Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | [1],[3] | 0.1 | [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 | -32 | -28 | 0 | [4] | -102 | [4] | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -11.9 | 18.5 | -41.5 | [4] | 95.7 | [4] | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | 0 | [4] | 0 | [4] | ||
Purchases | 0 | -1.5 | 0 | [4] | -4.7 | [4] | ||
Issues | -1.1 | 0 | -3.5 | [4] | 0 | [4] | ||
Sales | 0 | 0 | 0 | [4] | 0 | [4] | ||
Settlements | 0 | 0 | 0 | [4] | 0 | [4] | ||
Transfers in to Level 3 | 0 | 0 | 0 | [2],[4] | 0 | [2],[4] | ||
Transfers out of Level 3 | 0 | [2],[4] | 0 | 0 | [2],[4] | 0 | [2],[4] | |
Fair Value, Derivatives, ending balance | -45 | [4] | -11 | [4] | -45 | [4] | -11 | [4] |
Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 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 | -25.7 | -21.1 | -23.1 | [4] | -20.4 | [4] | ||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -0.6 | -0.6 | -3 | [4] | -1.3 | [4] | ||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | 0 | [4] | 0 | [4] | ||
Purchases | 0 | 0 | 0 | [4] | 0 | [4] | ||
Issues | 0 | 0 | -0.2 | [4] | 0 | [4] | ||
Sales | 0 | 0 | 0 | [4] | 0 | [4] | ||
Settlements | 0 | 0 | 0 | [4] | 0 | [4] | ||
Transfers in to Level 3 | 0 | 0 | 0 | [2],[4] | 0 | [2],[4] | ||
Transfers out of Level 3 | 0 | [2],[4] | 0 | 0 | [2],[4] | 0 | [2],[4] | |
Fair Value, Derivatives, ending balance | -26.3 | [4] | -21.7 | [4] | -26.3 | [4] | -21.7 | [4] |
Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | [3],[4] | 0 | [3],[4] | ||
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 | 5.1 | 0 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | 0 | 0 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | 0 | 0 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Transfers in to Level 3 | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | [2] | 0 | [2] | -5.1 | 0 | ||
Fair Value, Fixed maturities, including securities pledged, ending balance | 0 | 0 | 0 | 0 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | ||||
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 | 271.4 | 139.9 | 145.3 | 154.6 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -0.1 | -0.1 | -0.2 | -0.3 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | -9.9 | -0.1 | -1.1 | -1 | ||||
Purchases | 17.7 | 0 | 107.7 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | -6 | ||||
Settlements | -1.1 | -0.8 | -4.1 | -3.2 | ||||
Transfers in to Level 3 | 125.3 | 0 | 139.2 | [2] | 17.6 | [2] | ||
Transfers out of Level 3 | -16.5 | [2] | 0 | 0 | [2] | -22.8 | [2] | |
Fair Value, Fixed maturities, including securities pledged, ending balance | 386.8 | 138.9 | 386.8 | 138.9 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | -0.1 | -0.1 | -0.2 | [3] | -0.3 | [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 | 145.6 | 18.7 | 42.8 | 24.6 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | 0 | 0 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | -0.7 | 1 | 1.2 | 1 | ||||
Purchases | 0 | 0 | 56.3 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | -1.9 | ||||
Settlements | 0 | -4 | 0 | -10.6 | ||||
Transfers in to Level 3 | 0 | 4.7 | 66.8 | [2] | 7.3 | [2] | ||
Transfers out of Level 3 | 0 | [2] | 0 | -22.2 | [2] | 0 | [2] | |
Fair Value, Fixed maturities, including securities pledged, ending balance | 144.9 | 20.4 | 144.9 | 20.4 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | [3] | 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 | 21.2 | 30.8 | 23.7 | 9.1 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -0.9 | -0.3 | -1.6 | -1 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0.3 | 0.2 | 0.4 | 0.1 | ||||
Purchases | 3.3 | 27 | 3.5 | 49.4 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Transfers in to Level 3 | 1.7 | 0 | 0 | [2] | 0 | [2] | ||
Transfers out of Level 3 | -6.6 | [2] | -0.8 | -7 | [2] | -0.7 | [2] | |
Fair Value, Fixed maturities, including securities pledged, ending balance | 19 | 56.9 | 19 | 56.9 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | -0.9 | -0.3 | -1.6 | [3] | -1 | [3] | ||
Commercial mortgage-backed | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Fair Value, Fixed maturities, including securities pledged, beginning balance | 0 | 0 | 0 | 0 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | 0 | 0 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 | 0 | 0 | ||||
Purchases | 18.9 | 0 | 18.9 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Transfers in to Level 3 | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||||
Fair Value, Fixed maturities, including securities pledged, ending balance | 18.9 | 0 | 18.9 | 0 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 | ' | 0 | ||||
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 | 2.4 | 24.7 | 17.7 | 33.2 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0.3 | 0.8 | 1.9 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | -0.2 | -0.6 | -0.5 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | -0.5 | -8.1 | -10.3 | ||||
Transfers in to Level 3 | 0 | 0 | 0 | [2] | 0 | [2] | ||
Transfers out of Level 3 | 0 | [2] | 0 | -7.4 | [2] | 0 | [2] | |
Fair Value, Fixed maturities, including securities pledged, ending balance | 2.4 | 24.3 | 2.4 | 24.3 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0.3 | 0 | [3] | 0.7 | [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 | 440.6 | 214.1 | 234.6 | 221.5 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | -1 | -0.1 | -1 | 0.6 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | -10.3 | 0.9 | -0.1 | -0.4 | ||||
Purchases | 39.9 | 27 | 186.4 | 49.4 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | -7.9 | ||||
Settlements | -1.1 | -5.3 | -12.2 | -24.1 | ||||
Transfers in to Level 3 | 127 | 4.7 | 206 | [2] | 24.9 | [2] | ||
Transfers out of Level 3 | -23.1 | [2] | -0.8 | -41.7 | [2] | -23.5 | [2] | |
Fair Value, Fixed maturities, including securities pledged, ending balance | 572 | 240.5 | 572 | 240.5 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | -1 | -0.1 | -1.8 | [3] | -0.6 | [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 | 37.2 | 36.9 | 35.9 | 17 | ||||
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 | 0 | -0.1 | ||||
Total Realized/Unrealized Gains (Losses) Included in OCI | 0.2 | 0 | 1.5 | 2.3 | ||||
Purchases | 0 | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | 0 | ||||
Transfers in to Level 3 | 0 | 0 | 0 | [2] | 34.5 | [2] | ||
Transfers out of Level 3 | 0 | [2] | -0.2 | 0 | [2] | -17 | [2] | |
Fair Value, Equity securities, available-for-sale, ending balance | 37.4 | 36.7 | 37.4 | 36.7 | ||||
Change in Unrealized Gains (Losses) Included in Earnings | $0 | $0 | $0 | [3] | $0 | [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 Companybs 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 June 30, amounts are included in Net investment income and Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. | |||||||
[4] | All gains and losses on Level 3 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 Condensed Consolidated Statements of Operations. |
Fair_Value_Measurements_Signif
Fair Value Measurements - Significant Unobservable Inputs (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
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% |
Stabilizer Products and Managed Custody Guarantee (MCG) Products [Member] | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Percentage of Plans | 100.00% | 100.00% |
Stabilizer Products and Managed Custody Guarantee (MCG) Products [Member] | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 0.00% | 0.00% |
Fair Value Inputs, Nonperformance Risk | 0.08% | -0.10% |
Fair Value Input, Actual Assumption, Partial Withdrawal | 0.00% | 0.00% |
Fair Value Inputs, Interest Rate Implied Volatility | 0.20% | 0.20% |
Actuarial Assumptions, Lapses under percent threshold | 0.00% | 0.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 0.00% | 0.00% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
Stabilizer Products and Managed Custody Guarantee (MCG) Products [Member] | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 50.00% | 55.00% |
Fair Value Inputs, Nonperformance Risk | 0.94% | 0.79% |
Fair Value Input, Actual Assumption, Partial Withdrawal | 0.00% | 0.00% |
Fair Value Inputs, Interest Rate Implied Volatility | 7.30% | 8.00% |
Actuarial Assumptions, Lapses under percent threshold | 25.00% | 25.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 30.00% | 30.00% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 65.00% | 60.00% |
Stabilizer (Investment Only) and MCG Contracts | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Percentage of Plans | 88.00% | 88.00% |
Stabilizer (Investment Only) and MCG Contracts | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 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% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 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] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 30.00% | 30.00% |
Actuarial Assumptions, Lapses under percent threshold | 15.00% | 15.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 15.00% | 15.00% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 50.00% | 55.00% |
Stabilizer with Recordkeeping Agreements | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Percentage of Plans | 12.00% | 12.00% |
Stabilizer with Recordkeeping Agreements | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 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% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 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] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 50.00% | 55.00% |
Actuarial Assumptions, Lapses under percent threshold | 25.00% | 25.00% |
Actuarial Assumptions, Policyholder Deposits under percent threshold | 30.00% | 30.00% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 65.00% | 60.00% |
FIA | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Interest Rate Implied Volatility | 0.00% | 0.00% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
FIA | Derivative Financial Instruments, Liabilities | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Interest Rate Implied Volatility | 0.00% | 0.00% |
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits | 0.00% | 0.00% |
FIA | Investment Contracts [Member] | Market Approach Valuation Technique | Minimum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 0.00% | 0.00% |
Fair Value Inputs, Nonperformance Risk | 0.08% | -0.10% |
Fair Value Input, Actual Assumption, Partial Withdrawal | 0.00% | 0.00% |
FIA | Investment Contracts [Member] | Market Approach Valuation Technique | Maximum | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Actuarial Assumptions, Lapses | 45.00% | 48.00% |
Fair Value Inputs, Nonperformance Risk | 0.94% | 0.79% |
Fair Value Input, Actual Assumption, Partial Withdrawal | 2.00% | 2.00% |
Fair_Value_Measurements_Other_
Fair Value Measurements - Other Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | $21,342 | $20,700.60 | ||
Derivative assets | 421.3 | 464.4 | ||
Derivatives liabilities | 143.4 | 216.6 | ||
Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Limited partnerships/corporations | 250.8 | 180.9 | ||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement | 617.7 | 529.7 | ||
Derivative assets | 421.3 | 464.4 | ||
Notes receivable from affiliates | 175 | 175 | ||
Assets held in separate accounts | 62,808.40 | 60,104.90 | ||
Derivatives liabilities | 143.4 | 216.6 | ||
Long-term debt, fair value | 4.9 | 4.9 | ||
Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Limited partnerships/corporations | 250.8 | 180.9 | ||
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement | 617.7 | 529.7 | ||
Derivative assets | 421.3 | 464.4 | ||
Notes receivable from affiliates | 206 | 186.4 | ||
Assets held in separate accounts | 62,808.40 | 60,104.90 | ||
Derivatives liabilities | 143.4 | 216.6 | ||
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 | 21,124.50 | [1] | 21,010.80 | [1] |
Funding agreements without fixed maturities and deferred annuities(1) | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 25,594.70 | [1] | 24,379.60 | [1] |
Supplementary contracts, immediate annuities and other | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 595.2 | 624.3 | ||
Supplementary contracts, immediate annuities and other | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 701.3 | 727.1 | ||
FIA | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 26.3 | 23.1 | ||
FIA | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 26.3 | 23.1 | ||
Stabilizer and MCGs | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 45 | 0 | ||
Stabilizer and MCGs | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Liabilities | 45 | 0 | ||
Mortgage loans on real estate | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 3,564.70 | 3,396.10 | ||
Mortgage loans on real estate | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 3,667.60 | 3,403.90 | ||
Policy loans | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 240.2 | 242 | ||
Policy loans | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans | 240.2 | 242 | ||
Fixed maturities, available-for-sale, including securities pledged | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 21,367.70 | 20,705.80 | ||
Fixed maturities, available-for-sale, including securities pledged | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 21,367.70 | 20,705.80 | ||
Equity securities, available-for-sale | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 122.3 | 134.9 | ||
Equity securities, available-for-sale | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments | 122.3 | 134.9 | ||
Reinsurance Agreements | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Derivatives liabilities | -24.4 | -54 | ||
Reinsurance Agreements | Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Derivatives liabilities | ($24.40) | ($54) | ||
[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 $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | $476.20 | $296.50 | ||
Deferrals of commissions and expenses | ' | ' | 51 | 52.4 | ||
Amortization: | ' | ' | ' | ' | ||
Amortization | ' | ' | -69.6 | -45.2 | ||
Interest accrued | ' | ' | 26.8 | [1] | 25.1 | [1] |
Net amortization included in the Consolidated Statements of Operations | ' | ' | -42.8 | -20.1 | ||
Change in unrealized capital gains/losses on available-for-sale securities | ' | ' | -75.4 | 136.8 | ||
Ending balance | 409 | 465.6 | 409 | 465.6 | ||
Movement Analysis Of Value of Business Acquired VOBA [Roll Forward] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | 696.6 | 381.4 | ||
Deferrals of commissions and expenses | ' | ' | 5.2 | 5.6 | ||
Amortization | ' | ' | -92.2 | -57.2 | ||
Interest accrued | ' | ' | 44.8 | [1] | 45.6 | [1] |
Net amortization included in the Condensed Consolidated Statements of Operations | ' | ' | -47.4 | -11.6 | ||
Change in unrealized capital gains/losses on available-for-sale securities | ' | ' | -102.4 | 310.2 | ||
Ending balance | 552 | 685.6 | 552 | 685.6 | ||
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | 1,172.80 | 677.9 | ||
Deferrals of commissions and expenses | ' | ' | 56.2 | 58 | ||
Amortization | ' | ' | -161.8 | -102.4 | ||
Interest accrued | ' | ' | 71.6 | [1] | 70.7 | [1] |
Net amortization of deferred policy acquisition costs and value of business acquired | -63.5 | 15.2 | -90.2 | -31.7 | ||
Change in unrealized capital gains/losses on available-for-sale securities | ' | ' | -177.8 | 447 | ||
Ending balance | $961 | $1,151.20 | $961 | $1,151.20 | ||
Minimum | ' | ' | ' | ' | ||
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward] | ' | ' | ' | ' | ||
Value of Business Acquired (VOBA), Interest accrued percentage | ' | ' | 5.50% | 5.50% | ||
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% | ||
[1] | Interest accrued at the following rates for VOBA: 5.5% to 7.0% during 2014 and 5.5% to 7.0% during 2013. |
Capital_Contributions_and_Divi1
Capital Contributions and Dividends (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | 2-May-14 | Oct. 03, 2014 | 20-May-14 | Sep. 30, 2013 |
Subsequent event | Lion | Lion | ||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' |
Capital contribution from parent | $0 | $0 | ' | ' | ' | ' |
Capital contributions to parent | 281 | 174 | ' | ' | 281 | 174 |
Dividends payable | ' | ' | 281 | ' | ' | ' |
Proceeds from Dividends Received | ' | ' | ' | $30 | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Components of AOCI (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Derivatives | $178.80 | ' | $148.80 |
DAC/VOBA and sales inducements adjustment on available-for-sale securities | -513.1 | ' | -363.1 |
Premium deficiency reserve adjustment | -117.8 | ' | -89.7 |
Other | 0 | ' | 0 |
Unrealized capital gains (losses), before tax | 980.8 | ' | 597.5 |
Deferred income tax asset (liability) | -216.3 | ' | -118.6 |
Unrealized capital gains (losses), after tax | 764.5 | ' | 478.9 |
Pension and other post-employment benefits liability, net of tax | 8.7 | ' | 10.2 |
AOCI | 773.2 | 495.4 | 489.1 |
Fixed maturities | ' | ' | ' |
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Fixed maturities, net of OTTI | 1,417.50 | ' | 885.4 |
Equity securities | ' | ' | ' |
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Equity securities, available-for-sale | $15.40 | ' | $16.10 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Changes in AOCI, including Reclassification Adjustments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Available-for-sale securities, Before-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on Other | $0 | $0 | $0 | $0 | ||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 6.8 | 6.2 | 6.9 | 8.4 | ||||
DAC/VOBA and sales inducements | 67.1 | [1] | 35.1 | [1] | -177.8 | [1] | 447.5 | [1] |
Premium deficiency reserve adjustment | 9.9 | 4.7 | -35.4 | 62.9 | ||||
Change in unrealized gains/losses on available-for-sale securities | -151.6 | -49.6 | 383.3 | -792.5 | ||||
Available-for-sale securities, Income Tax: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on Other | 0 | 0 | 0 | 0 | ||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | -2.4 | -2.1 | -2.4 | -2.9 | ||||
DAC/VOBA and sales inducements | -23.4 | -12.3 | 62.3 | -156.6 | ||||
Premium deficiency reserve adjustment | -3.5 | -1.6 | 12.4 | -22 | ||||
Change in unrealized gains/losses on available-for-sale securities | 51 | 44.7 | -134.2 | 302.9 | ||||
Available-for-sale securities, After-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on Other | 0 | 0 | 0 | 0 | ||||
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations | 4.4 | 4.1 | 4.5 | 5.5 | ||||
DAC/VOBA and sales inducements | 43.7 | 22.8 | -115.5 | 290.9 | ||||
Premium deficiency reserve adjustment | 6.4 | 3.1 | -23 | 40.9 | ||||
Change in unrealized gains/losses on available-for-sale securities | -100.6 | -4.9 | 249.1 | -489.6 | ||||
Derivatives, Before-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized capital gains/losses arising during the period, Before-Tax Amount | 6 | [2] | -3.7 | [2] | 50.9 | [2] | -68 | [2] |
Adjustments for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | -2 | 2.4 | -5.1 | 1.6 | ||||
Change in unrealized gains/losses on derivatives | 4 | -1.3 | 45.8 | -66.4 | ||||
Derivatives, Income Tax: | ' | ' | ' | ' | ||||
Change in unrealized capital gains/losses arising during the period, Income Tax | -2.1 | 1.3 | -17.8 | 23.8 | ||||
Adjustments for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | 0.7 | -0.9 | 1.8 | -0.6 | ||||
Change in unrealized gains/losses on derivatives | -1.4 | 0.4 | -16 | 23.2 | ||||
Derivatives, After-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized capital gains/losses arising during the period, After-Tax Amount | 3.9 | -2.4 | 33.1 | -44.2 | ||||
Adjustments for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations | -1.3 | 1.5 | -3.3 | 1 | ||||
Change in unrealized gains/losses on derivatives | 2.6 | -0.9 | 29.8 | -43.2 | ||||
OTTI: | ' | ' | ' | ' | ||||
Other-than-temporary impairments | 1 | 2 | 8.3 | 3.4 | ||||
Change in OTTI, Income Tax | -0.3 | -0.7 | -2.9 | -1.2 | ||||
Change in OTTI, After-Tax Amount | 0.7 | 1.3 | 5.4 | 2.2 | ||||
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 | -0.6 | -0.7 | -1.7 | -1.7 | ||||
Change in pension and other post-employment benefit liability | -0.6 | -0.7 | -1.7 | -1.7 | ||||
Other comprehensive income (loss), before tax | -148.2 | -51.6 | 427.4 | -860.6 | ||||
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 | 0.2 | 0.6 | 0.6 | 0.6 | ||||
Change in pension and other post-employment benefit liability | 0.2 | 0.6 | 0.6 | 0.6 | ||||
Other comprehensive income (loss) | 49.8 | 45.7 | -149.6 | 326.7 | ||||
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 | -0.4 | -0.1 | -1.1 | -1.1 | ||||
Change in pension and other post-employment benefit liability | -0.4 | -0.1 | -1.1 | -1.1 | ||||
Other comprehensive income (loss), after tax | -98.4 | -5.9 | 277.8 | -533.9 | ||||
Fixed maturities | ' | ' | ' | ' | ||||
Available-for-sale securities, Before-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on securities | -235.9 | -97.2 | 581.7 | -1,317.30 | ||||
Available-for-sale securities, Income Tax: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on securities | 80.6 | 61.2 | -203.6 | 486.5 | ||||
Available-for-sale securities, After-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on securities | -155.3 | -36 | 378.1 | -830.8 | ||||
Equity securities | ' | ' | ' | ' | ||||
Available-for-sale securities, Before-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on securities | -0.5 | -0.4 | -0.4 | 2.6 | ||||
Available-for-sale securities, Income Tax: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on securities | 0 | 0.2 | 0 | -0.9 | ||||
Available-for-sale securities, After-Tax Amount: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on securities | -0.5 | -0.2 | -0.4 | 1.7 | ||||
Valuation Allowance of Deferred Tax Assets | Fixed maturities | ' | ' | ' | ' | ||||
Available-for-sale securities, Income Tax: | ' | ' | ' | ' | ||||
Change in unrealized gains/losses on securities | ' | ($28.60) | ' | ($30.50) | ||||
[1] | See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information. | |||||||
[2] | See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' | ' | |
Income (loss) before income taxes | $60 | $133.30 | $224.70 | $353 | ' | |
Tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ' | |
Income tax expense (benefit) at federal statutory rate | 21 | 46.7 | 78.6 | 123.6 | ' | |
Dividends received deduction | -9.9 | -9 | -23.8 | -20.6 | ' | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0 | 28.6 | 0 | 30.5 | ' | |
IRS audit adjustment | 0 | 0 | -0.1 | -0.3 | ' | |
Other | -1.3 | -0.6 | -0.5 | 0.2 | [1] | ' |
Income tax expense (benefit) | 9.8 | 65.7 | 54.2 | 133.4 | ' | |
Increase (decrease) in valuation allowance | ' | 0 | ' | ' | ' | |
Foreign tax credits | ' | ' | ' | ' | ' | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' | ' | |
Valuation allowance, deferred tax assets | 11.1 | ' | 11.1 | ' | ' | |
Tax valuation allowance allocated to Net income (loss) | ' | ' | ' | ' | ' | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' | ' | |
Valuation allowance, deferred tax assets | 130.4 | ' | 130.4 | ' | 130.4 | |
Increase (decrease) in valuation allowance | 0 | 28.6 | 0 | 30.5 | ' | |
Tax valuation allowance allocated to Other comprehensive income | ' | ' | ' | ' | ' | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' | ' | |
Valuation allowance, deferred tax assets | -119.3 | ' | -119.3 | ' | -119.3 | |
Increase (decrease) in valuation allowance | 0 | -28.6 | 0 | -30.5 | ' | |
Operating loss carryforwards | Foreign tax credits | ' | ' | ' | ' | ' | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' | ' | |
Valuation allowance, deferred tax assets | ' | ' | ' | ' | $11.10 | |
[1] | Less than $0.1. |
Financing_Agreements_Details
Financing Agreements (Details) (ING U.S. Inc., Reciprocal Loan Agreement, USD $) | Apr. 02, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Net Investment Income [Member] | Net Investment Income [Member] | Net Investment Income [Member] | Net Investment Income [Member] | |
Short-term Debt [Line Items] | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity, as a percent | 3.00% | ' | ' | ' | ' |
Interest income | ' | $0 | $0 | $0.20 | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 0 Months Ended | |||
In Millions, unless otherwise specified | Apr. 11, 2014 | Sep. 26, 2012 | Sep. 30, 2014 | Dec. 31, 2013 |
Healthcare Strategies, Inc., Plan [Member] | Healthcare Strategies, Inc., Plan [Member] | Investment purchase commitment | Investment purchase commitment | |
plantiff | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Off-balance sheet commitment to purchase investments | ' | ' | $472.10 | $466.80 |
Number of plaintiffs | ' | 15,000 | ' | ' |
Damages sought by plaintiffs | $15 | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Restricted Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Loss Contingencies [Line Items] | ' | ' | ||
Other fixed maturities-state deposits | $13.30 | $13.10 | ||
Securities pledged | 148 | [1] | 140.1 | [1] |
Total restricted assets | 161.3 | 153.2 | ||
Fair value of loaned securities | 100.1 | 97.6 | ||
Securities pledged as collateral | $148 | $140.10 | ||
[1] | Includes the fair value of loaned securities of $100.1 and $97.6 as of SeptemberB 30, 2014 and DecemberB 31, 2013, respectively, which is included in Securities pledged on the Condensed Consolidated Balance Sheets. In addition, as of SeptemberB 30, 2014 and DecemberB 31, 2013, the Company delivered securities as collateral of $47.9 and $42.5, respectively, which is included in Securities pledged on the Condensed Consolidated Balance Sheets. |