Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 2013 | |
Document Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'STFC | ' | ' |
Entity Registrant Name | 'State Auto Financial CORP | ' | ' |
Entity Central Index Key | '0000874977 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Filer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filer | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding (shares) | ' | 40,782,015 | ' |
Entity Public Float | ' | ' | $277,991,457 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Fixed maturities, available-for-sale, at fair value (amortized cost $1,804.0 and $1,776.2, respectively) | $1,830,100,000 | $1,905,100,000 |
Equity securities, available-for-sale, at fair value (cost $196.6 and $196.2, respectively) | 265,300,000 | 228,400,000 |
Other invested assets, available-for-sale, at fair value (cost $49.5 and $49.0, respectively) | 80,900,000 | 64,400,000 |
Other invested assets | 5,000,000 | 500,000 |
Notes receivable from affiliate | 70,000,000 | 70,000,000 |
Total investments | 2,251,300,000 | 2,268,400,000 |
Cash and cash equivalents | 80,300,000 | 59,000,000 |
Accrued investment income and other assets | 33,600,000 | 31,500,000 |
Deferred policy acquisition costs | 96,800,000 | 91,700,000 |
Reinsurance recoverable on losses and loss expenses payable | 9,100,000 | 13,500,000 |
Prepaid reinsurance premiums | 4,700,000 | 3,900,000 |
Current federal income taxes | 300,000 | 0 |
Net deferred federal income taxes | 11,900,000 | 1,000,000 |
Property and equipment, at cost (net of accumulated depreciation of $6.8 and $5.6, respectively) | 8,400,000 | 8,800,000 |
Total assets | 2,496,400,000 | 2,477,800,000 |
Liabilities and Stockholders’ Equity | ' | ' |
Losses and loss expenses payable (affiliates $438.0 and $435.1, respectively) | 959,900,000 | 942,200,000 |
Unearned premiums (affiliates $78.4 and $81.9, respectively) | 491,000,000 | 481,600,000 |
Notes payable (affiliates $15.5 and $15.5, respectively) | 100,800,000 | 115,900,000 |
Postretirement and pension benefits | 71,600,000 | 113,000,000 |
Due to affiliate | 1,300,000 | 8,600,000 |
Other liabilities | 86,800,000 | 79,300,000 |
Total liabilities | 1,711,400,000 | 1,740,600,000 |
Stockholders’ equity: | ' | ' |
Common stock, without par value. Authorized 100.0 shares; 47.5 and 47.3 shares issued, respectively, at stated value of $2.50 per share | 118,800,000 | 118,100,000 |
Treasury stock, 6.8 and 6.8 shares, respectively, at cost | -115,900,000 | -115,800,000 |
Additional paid-in capital | 137,500,000 | 131,600,000 |
Accumulated other comprehensive income | 80,800,000 | 84,200,000 |
Retained earnings | 563,800,000 | 519,100,000 |
Total stockholders’ equity | 785,000,000 | 737,200,000 |
Total liabilities and stockholders’ equity | 2,496,400,000 | 2,477,800,000 |
Class A Preferred stock | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock value | 0 | 0 |
Class B Preferred stock | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock value | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Fixed maturities, available-for-sale, amortized cost | $1,804 | $1,776.20 |
Equity securities, available-for-sale, cost | 196.6 | 196.2 |
Other invested assets, available-for-sale, cost | 49.5 | 49 |
Property and equipment, accumulated depreciation | 6.8 | 5.6 |
Losses and loss expenses payable, affiliates | 438 | 435.1 |
Unearned premiums, affiliates | 78.4 | 81.9 |
Notes payable, affiliates | $15.50 | $15.50 |
Common stock, no par value (usd per share) | $0 | $0 |
Common stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (shares) | 47,500,000 | 47,300,000 |
Common stock, stated value per share (usd per share) | $2.50 | $2.50 |
Treasury stock, shares (shares) | 6,800,000 | 6,800,000 |
Class A Preferred stock | ' | ' |
Preferred stock, no par value (usd per share) | $0 | $0 |
Preferred stock, shares authorized (shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Class B Preferred stock | ' | ' |
Preferred stock, no par value (usd per share) | $0 | $0 |
Preferred stock, shares authorized (shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Earned premiums (ceded to affiliate $855.0, $809.2 and $803.6, respectively) | $1,055 | $1,042.10 | $1,428.80 |
Net investment income (affiliates $4.9, $4.9 and $4.9, respectively) | 72.8 | 75.4 | 85.4 |
Net realized gain on investments: | ' | ' | ' |
Total other-than-temporary impairment losses | -4 | -3.4 | -6.6 |
Portion of loss recognized in other comprehensive income | 0 | 0 | 0 |
Other net realized investment gains | 27.2 | 32.4 | 43.6 |
Total net realized gain on investments | 23.2 | 29 | 37 |
Other income (affiliates $2.0, $3.6 and $2.5, respectively) | 2 | 3.6 | 2.5 |
Total revenues | 1,153 | 1,150.10 | 1,553.70 |
Losses and loss expenses (ceded to affiliate $560.2, $575.7 and $701.0, respectively) | 719.8 | 778.3 | 1,180 |
Acquisition and operating expenses | 354.8 | 345.9 | 485 |
Interest expense (affiliates $0.7, $0.7 and $0.7, respectively) | 8.5 | 7 | 7.1 |
Postretirement benefit curtailment gain | 0 | 0 | -14.9 |
Other expenses | 8.6 | 8.3 | 8.6 |
Total expenses | 1,091.70 | 1,139.50 | 1,665.80 |
Income (loss) before federal income taxes | 61.3 | 10.6 | -112.1 |
Current | 0.5 | -0.1 | -7 |
Deferred | 0 | 0 | 55.6 |
Total federal income tax expense (benefit) | 0.5 | -0.1 | 48.6 |
Net income (loss) | $60.80 | $10.70 | ($160.70) |
Earnings (loss) per common share: | ' | ' | ' |
Basic (usd per share) | $1.50 | $0.26 | ($4) |
Diluted (usd per share) | $1.49 | $0.26 | ($4) |
Dividends paid per common share (usd per share) | $0.40 | $0.55 | $0.60 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Earned premiums, ceded to affiliate | $855 | $809.20 | $803.60 |
Net investment income, affiliates | 4.9 | 4.9 | 4.9 |
Other income, affiliates | 2 | 3.6 | 2.5 |
Losses and loss expenses, ceded to affiliate | 560.2 | 575.7 | 701 |
Interest expense affiliates | $3.20 | $0.70 | $0.70 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $60.80 | $10.70 | ($160.70) |
Net unrealized holding (losses) gains on investments: | ' | ' | ' |
Unrealized holding (losses) gains arising during year | -27.1 | 53.5 | 80.2 |
Reclassification adjustments for gains realized in net income (loss) | -23.2 | -28.8 | -38.1 |
Income tax benefit (expense) | 10.9 | 0.6 | -14.7 |
Total net unrealized holding (losses) gains on investments | -39.4 | 25.3 | 27.4 |
Amortization of gain on derivative used in cash flow hedge | -0.1 | -0.1 | -0.1 |
Net unrecognized benefit plan obligations: | ' | ' | ' |
Net actuarial gain (loss) arising during period | 32.5 | -7.4 | -69.8 |
Negative plan amendment gain on postretirement healthcare benefit plan | 0 | 0 | 93.8 |
Reclassification adjustments for amortization to statements of income: | ' | ' | ' |
Negative prior service cost | -5.5 | -5.2 | -19 |
Net actuarial loss | 9.1 | 7.8 | 6.9 |
Effect of December 31, 2011 pooling change | 0 | 0 | 59.1 |
Income tax benefit | 0 | 0 | -26.6 |
Total net unrecognized benefit plan obligations | 36.1 | -4.8 | 44.4 |
Other comprehensive (loss) income | -3.4 | 20.4 | 71.7 |
Comprehensive income (loss) | $57.40 | $31.10 | ($89) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common shares: | Treasury shares: | Additional paid-in capital: | Accumulated other comprehensive income (loss): | Retained earnings: |
In Millions, unless otherwise specified | ||||||
Balance at beginning of year at Dec. 31, 2010 | ' | $117.30 | ($115.80) | $122.10 | ($7.90) | $715.50 |
Balance at beginning of year (shares) at Dec. 31, 2010 | ' | 46.9 | 6.8 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Issuance of shares (shares) | ' | 0.2 | ' | ' | ' | ' |
Issuance of shares | ' | 0.5 | ' | 2.2 | ' | ' |
Shares acquired on stock option exercises and vested restricted shares | ' | ' | 0 | ' | ' | ' |
Stock options granted | ' | ' | ' | 3 | ' | ' |
Change in unrealized gains on investments, net of tax | 27.4 | ' | ' | ' | 27.4 | ' |
Amortization of gain on derivative used in cash flow hedge | ' | ' | ' | ' | -0.1 | ' |
Change in unrecognized benefit plan obligations, net of tax and reclassification adjustments | 44.4 | ' | ' | ' | 44.4 | ' |
Net income (loss) | -160.7 | ' | ' | ' | ' | -160.7 |
Cash dividends paid (affiliates $10.1, $13.9 and $15.2, respectively) | -24.1 | ' | ' | ' | ' | ' |
Balance at end of year at Dec. 31, 2011 | 723.8 | 117.8 | -115.8 | 127.3 | 63.8 | 530.7 |
Balance at end of year (shares) at Dec. 31, 2011 | ' | 47.1 | 6.8 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Issuance of shares (shares) | ' | 0.2 | ' | ' | ' | ' |
Issuance of shares | ' | 0.3 | ' | 1.3 | ' | ' |
Shares acquired on stock option exercises and vested restricted shares | ' | ' | 0 | ' | ' | ' |
Stock options granted | ' | ' | ' | 3 | ' | ' |
Change in unrealized gains on investments, net of tax | 25.3 | ' | ' | ' | 25.3 | ' |
Amortization of gain on derivative used in cash flow hedge | ' | ' | ' | ' | -0.1 | ' |
Change in unrecognized benefit plan obligations, net of tax and reclassification adjustments | -4.8 | ' | ' | ' | -4.8 | ' |
Net income (loss) | 10.7 | ' | ' | ' | ' | 10.7 |
Cash dividends paid (affiliates $10.1, $13.9 and $15.2, respectively) | -22.3 | ' | ' | ' | ' | ' |
Balance at end of year at Dec. 31, 2012 | 737.2 | 118.1 | -115.8 | 131.6 | 84.2 | 519.1 |
Balance at end of year (shares) at Dec. 31, 2012 | ' | 47.3 | 6.8 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Issuance of shares (shares) | ' | 0.2 | ' | ' | ' | ' |
Issuance of shares | ' | 0.7 | ' | 3.4 | ' | ' |
Shares acquired on stock option exercises and vested restricted shares | ' | ' | -0.1 | ' | ' | ' |
Stock options granted | ' | ' | ' | 2.5 | ' | ' |
Change in unrealized gains on investments, net of tax | -39.4 | ' | ' | ' | -39.4 | ' |
Amortization of gain on derivative used in cash flow hedge | ' | ' | ' | ' | -0.1 | ' |
Change in unrecognized benefit plan obligations, net of tax and reclassification adjustments | 36.1 | ' | ' | ' | 36.1 | ' |
Net income (loss) | 60.8 | ' | ' | ' | ' | 60.8 |
Cash dividends paid (affiliates $10.1, $13.9 and $15.2, respectively) | -16.1 | ' | ' | ' | ' | ' |
Balance at end of year at Dec. 31, 2013 | $785 | $118.80 | ($115.90) | $137.50 | $80.80 | $563.80 |
Balance at end of year (shares) at Dec. 31, 2013 | ' | 47.5 | 6.8 | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (Retained earnings, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Retained earnings | ' | ' | ' |
Cash dividends paid affiliates | $10.10 | $13.90 | $15.20 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $60.80 | $10.70 | ($160.70) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization, net | 13.5 | 7.1 | 5.3 |
Share-based compensation | 4.1 | 3.5 | 3.2 |
Net realized gain on investments | -23.2 | -29 | -37 |
Changes in operating assets and liabilities: | ' | ' | ' |
Deferred acquisition (benefits) costs | -5.1 | 0 | 7.9 |
Accrued investment income and other assets | -2.3 | -1.4 | 0.8 |
Postretirement and pension benefits | -5.3 | -4.6 | -9.9 |
Reinsurance recoverable on losses and loss expenses payable and prepaid reinsurance premiums | 3.6 | 16 | -7 |
Other liabilities and due to/from affiliates, net | -0.9 | -9.8 | 97.6 |
Losses and loss expenses payable | 17.7 | 35.1 | 93 |
Unearned premiums | 9.4 | 11.4 | -70.2 |
Excess tax benefits on share-based awards | 0.1 | 0 | 0 |
Federal income taxes | -0.3 | 12.3 | 50.9 |
Cash used in December 31, 2011 unearned premium transfer related to the homeowners quota-share reinsurance arrangement | 0 | -75.5 | 0 |
Cash (used in) provided from pooling changes, December 31, 2011 and January 1, 2011 (Note 6a) | 0 | -261.4 | 69.1 |
Net cash provided by (used in) operating activities | 72.1 | -285.6 | 43 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of fixed maturities available-for-sale | -326.7 | -540.4 | -369.7 |
Purchases of equity securities available-for-sale | -86 | -143 | -92.6 |
Purchases of other invested assets | -5.5 | -1.1 | -1.2 |
Maturities, calls and pay downs of fixed maturities available-for-sale | 174.6 | 257 | 327.2 |
Sales of fixed maturities available-for-sale | 113.3 | 332.8 | 167.6 |
Sales of equity securities available-for-sale | 106.4 | 101.8 | 180.9 |
Sales of other invested assets available-for-sale | 0.7 | 0.7 | 20.8 |
Sale of subsidiary | 0 | 0 | 13.2 |
Net additions of property and equipment | 0.2 | 1.5 | 0 |
Net cash (used in) provided by investing activities | -23 | 9.3 | 246.2 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock | 4 | 1.6 | 2.6 |
Payments to acquire treasury stock | -0.1 | 0 | 0 |
Payments of dividends (affiliates $10.1, $13.9 and $15.2, respectively) | -16.1 | -22.3 | -24.1 |
Payment of credit facility issue costs | -0.5 | 0 | 0 |
Excess tax benefits on share-based awards | -0.1 | 0 | 0 |
Proceeds from long-term debt | 85 | 0 | 0 |
Redemption of long-term debt | -100 | 0 | 0 |
Net cash used in financing activities | -27.8 | -20.7 | -21.5 |
Net increase (decrease) in cash and cash equivalents | 21.3 | -297 | 267.7 |
Cash and cash equivalents at beginning of year | 59 | 356 | 88.3 |
Cash and cash equivalents at end of year | 80.3 | 59 | 356 |
Supplemental disclosures: | ' | ' | ' |
Interest paid (affiliates $0.7, $0.7 and $0.7, respectively) | 8.5 | 7 | 7 |
Federal income taxes paid (received) | $0.80 | ($12.40) | ($2.30) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Payments of dividends, affiliates | $10.10 | $13.90 | $15.20 |
Interest paid, affiliates | $0.70 | $0.70 | $0.70 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
Summary of Significant Accounting Policies | |||||||||||||
a. Principles of Consolidation | |||||||||||||
The consolidated financial statements include State Auto Financial Corporation (“State Auto Financial”), an Ohio corporation, and the following wholly owned subsidiaries of State Auto Financial: | |||||||||||||
• | State Auto Property and Casualty Insurance Company (“State Auto P&C”), an Iowa corporation | ||||||||||||
• | Milbank Insurance Company (“Milbank”), an Iowa corporation | ||||||||||||
• | State Auto Insurance Company of Ohio (“SA Ohio”), an Ohio corporation | ||||||||||||
• | Stateco Financial Services, Inc. (“Stateco”), an Ohio corporation | ||||||||||||
The consolidated financial statements also include the operations and financial position of 518 Property Management and Leasing, LLC (“518 PML”), an Ohio limited liability company whose only members are State Auto P&C and Stateco. Farmers Casualty Insurance Company ("Farmers"), a former wholly owned subsidiary of State Auto Financial, was merged with State Auto P&C at the close of business on December 31, 2012. | |||||||||||||
State Auto Financial is a majority-owned subsidiary of State Automobile Mutual Insurance Company (“State Auto Mutual”), an Ohio corporation. State Auto Financial and its subsidiaries are referred to herein as the “Company.” All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
b. Description of Business | |||||||||||||
The Company markets its insurance products throughout the United States primarily through independent agencies, which include retail agencies and wholesale brokers. The Company’s principal lines of insurance include personal and commercial automobile, homeowners, commercial multi-peril, workers’ compensation, general liability and fire insurance. State Auto P&C, Milbank and SA Ohio are chartered and licensed property and casualty insurers. As such, they are subject to the regulations of the applicable Departments of Insurance of their respective states of domicile (the “Departments”) and the regulations of each state in which they operate. These property and casualty insurance companies undergo periodic financial examination by the Departments and insurance regulatory agencies of the states that choose to participate. A large portion of the Company’s revenues are derived from a reinsurance pooling agreement with State Auto Mutual and its affiliates. The underwriting activity and geographic distribution of State Auto Mutual and its affiliates is generally the same as the underwriting activity and geographic distribution of the Company. | |||||||||||||
Through the employees of State Auto P&C, the Company provides management and operation services under management agreements for all of its insurance and non-insurance affiliates. | |||||||||||||
Through Stateco, the Company provides investment management services to affiliated companies. | |||||||||||||
518 PML owns and leases property to the Company’s affiliates. | |||||||||||||
c. Basis of Presentation | |||||||||||||
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which vary in certain respects from statutory accounting practices (“SAP”) followed by State Auto P&C, Milbank and SA Ohio that are prescribed or permitted by the Departments. | |||||||||||||
The Company's insurance subsidiaries, domiciled in Ohio and Iowa, are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. The Ohio and Iowa Departments of Insurance require insurers domiciled in their respective states to prepare statutory financial statements in accordance with National Association of Insurance Commissioners' ("NAIC") statutory accounting practices. Permitted statutory accounting practices are those practices that differ either from state-prescribed statutory accounting practices or NAIC statutory accounting practices. The Company's insurance subsidiaries do not apply any statutory accounting practices that would be considered a prescribed statutory accounting practice that differs from NAIC statutory accounting practices. | |||||||||||||
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, revenues and expenses for the periods then ended, and the accompanying notes to the financial statements. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. | |||||||||||||
Material estimates that are particularly susceptible to significant change in the near term relate to the determination of losses and loss expenses payable and the realization of deferred tax assets. In connection with the determination of losses and loss expenses payable, management uses historical data, current business conditions and assumptions about future conditions to formulate estimates of the ultimate cost to settle claims. Deferred tax assets are evaluated periodically by management to determine if they are realizable, requiring management to make certain judgments and assumptions. In evaluating the ability to recover deferred tax assets, management considers all available evidence, including loss carryback potential, past operating results, existence of cumulative losses in the most recent years, projected performance of the business, future taxable income, including the ability to generate capital gains, and prudent and feasible tax planning strategies. If, based on available information, it is more likely than not that the deferred income tax asset will not be realized, then a valuation allowance must be established with a corresponding charge to net income and/or other comprehensive income. These estimates by their nature are subject to uncertainties for various reasons. | |||||||||||||
d. Investments | |||||||||||||
Investments in fixed maturities, equity securities and certain other invested assets are classified as available-for-sale and are carried at fair value. The unrealized holding gains and losses, net of applicable deferred income taxes, are shown as a separate component of stockholders’ equity as a part of accumulated other comprehensive income (loss) and, as such, are not included in the determination of net income (loss). Realized gains and losses on the sales of investments are computed using the first-in, first-out method. | |||||||||||||
The Company regularly monitors its investments that have fair values less than cost or amortized cost for signs of other-than-temporary impairment, an assessment that requires significant management judgment regarding the evidence known. Such judgments could change in the future as more information becomes known, which could negatively impact the amounts reported. Among the factors that management considers for fixed maturity securities are the financial condition of the issuer including receipt of scheduled principal and interest cash flows, and intent to sell including if it is more likely than not that the Company will be required to sell the investments before recovery. When a fixed maturity security has been determined to have an other-than-temporary impairment, the impairment charge is separated into an amount representing the credit loss, which is recognized in earnings as a realized loss, and the amount related to non-credit factors, which is recognized in other comprehensive income (loss). Future increases or decreases in fair value, if not other-than-temporary, are included in other comprehensive income (loss). | |||||||||||||
Among the factors that management considers for equity securities and other invested assets are the length of time and/or the significance of decline below cost, the Company’s ability and intent to hold these securities through their recovery periods, the current financial condition of the issuer and its future business prospects, and the ability of the market value to recover to cost in the near term. When an equity security or other invested asset has been determined to have a decline in fair value that is other-than-temporary, the cost basis of the security is adjusted to fair value. This results in a charge to earnings as a realized loss, which is not reversed for subsequent recoveries in fair value. Future increases or decreases in fair value, if not other-than-temporary, are included in other comprehensive income (loss). | |||||||||||||
e. Cash Equivalents | |||||||||||||
The Company considers all liquid debt instruments with a maturity of three months or less to be cash equivalents. The carrying amounts reported approximate their fair value. | |||||||||||||
f. Deferred Acquisition Costs | |||||||||||||
Acquisition costs, consisting of commissions, premium taxes and certain underwriting expenses related to the successful acquisition or renewal of property and casualty business, are deferred and amortized over the same period in which the related premiums are earned. The method followed for computing the acquisition costs limits the amount of such deferred costs to their estimated realizable value. In determining estimated realizable value, the computation gives effect to the premium to be earned, losses and loss expenses expected to be incurred, and certain other costs expected to be incurred as premium is earned. Future changes in estimates, the most significant of which is expected losses and loss adjustment expenses, that indicate a reduction in expected future profitability may result in unrecoverable deferred acquisition costs. Anticipated investment income is considered in determining whether a premium deficiency exists. | |||||||||||||
The following table sets forth net deferred acquisition costs for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||
Balance, beginning of year | $ | 91.7 | $ | 91.7 | $ | 118.5 | |||||||
Effect of January 1, 2011 pooling change | — | — | 8.3 | ||||||||||
Acquisition costs deferred | 214.6 | 213.1 | 266.6 | ||||||||||
Acquisition costs amortized to expense | (209.5 | ) | (213.1 | ) | (274.4 | ) | |||||||
Effect of December 31, 2011 pooling change | — | — | (27.3 | ) | |||||||||
Balance, end of year | $ | 96.8 | $ | 91.7 | $ | 91.7 | |||||||
g. Federal Income Taxes | |||||||||||||
The Company files a consolidated federal income tax return. Pursuant to a written tax sharing agreement, each entity within the consolidated group pays or receives its share of federal income taxes based on separate return calculations. | |||||||||||||
The Company recognizes deferred income tax assets and liabilities for the expected future tax effects attributable to temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Deferred tax assets and liabilities include provisions for unrealized investment gains and losses as well as the net funded status of pension and other postretirement benefit obligations with the changes for each period included in the respective components of other comprehensive income (loss). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. | |||||||||||||
Interest and penalties related to uncertain tax positions are recorded in the balance sheet as other liabilities, and recognized in the income statement as other expenses. | |||||||||||||
h. Losses and Loss Expenses Payable | |||||||||||||
Losses and loss expenses payable are based on formula and case-basis estimates for reported claims and on estimates, based on experience and perceived trends, for unreported claims and loss expenses. The liability for unpaid losses and loss expenses, net of estimated salvage and subrogation recoverable of $24.7 million and $25.7 million at December 31, 2013 and 2012, respectively, has been established to cover the estimated ultimate cost to settle insured losses. The amounts are based on estimates of future rates of inflation and other factors, and accordingly, there can be no assurance that the ultimate liability will not vary materially from such estimates. The estimates are continually reviewed and adjusted as necessary; such adjustments are included in current operations (see Note 4). Anticipated salvage and subrogation is estimated using historical experience. As such, losses and loss expenses payable represent management’s best estimate of the ultimate liability related to reported and unreported claims. | |||||||||||||
i. Premiums | |||||||||||||
Premiums are recognized as earned prorata over the policy period. Unearned premiums represent the portion of premiums written relative to the unexpired terms of coverage. | |||||||||||||
j. Comprehensive Income (Loss) | |||||||||||||
Comprehensive income (loss) is defined as all changes in an enterprise’s equity during a period other than those resulting from investments by owners and distributions to owners. Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes all other non-owner related changes to equity and includes net unrealized gains and losses on available-for-sale investments, derivative instruments and unrecognized benefit plan obligations, adjusted for deferred federal income taxes. | |||||||||||||
k. New Accounting Standards | |||||||||||||
Adoption of Recent Accounting Pronouncements | |||||||||||||
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |||||||||||||
The amendments in this guidance result in additional disclosure requirements under GAAP and do not change the current requirements for reporting net income or other comprehensive income in financial statements. The new guidance requires an entity to present, either in a single note, or, parenthetically on the face of the statement where net income is presented, the effects of significant amounts reclassified from each component of accumulated other comprehensive income by the respective line items of net income, only, if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. If a component is not required to be reclassified to net income in its entirety, the entity would, instead, cross-reference it to the related disclosure required under GAAP. This guidance was effective prospectively for fiscal years and interim periods beginning after December 15, 2012. The Company adopted this guidance at January 1, 2013, and it did not have a material impact on the consolidated financial statements, see Note 10 - Other Comprehensive Income and Accumulated Other Comprehensive Income. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
The following tables set forth the cost or amortized cost and fair value of available-for-sale securities by lot at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
31-Dec-13 | Cost or | Gross | Gross | Fair | |||||||||||||||||||||||||||||
amortized | unrealized | unrealized | value | ||||||||||||||||||||||||||||||
cost | holding | holding | |||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 345.5 | $ | 13.4 | $ | (6.5 | ) | $ | 352.4 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 765.3 | 25.8 | (16.9 | ) | 774.2 | ||||||||||||||||||||||||||||
Corporate securities | 345 | 11.4 | (6.7 | ) | 349.7 | ||||||||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 348.2 | 9.7 | (4.1 | ) | 353.8 | ||||||||||||||||||||||||||||
Total fixed maturities | 1,804.00 | 60.3 | (34.2 | ) | 1,830.10 | ||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Large-cap securities | 148.2 | 46.5 | (0.3 | ) | 194.4 | ||||||||||||||||||||||||||||
Small-cap securities | 48.4 | 22.5 | — | 70.9 | |||||||||||||||||||||||||||||
Total equity securities | 196.6 | 69 | (0.3 | ) | 265.3 | ||||||||||||||||||||||||||||
Other invested assets | 49.5 | 31.4 | — | 80.9 | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,050.10 | $ | 160.7 | $ | (34.5 | ) | $ | 2,176.30 | ||||||||||||||||||||||||
31-Dec-12 | Cost or | Gross | Gross | Fair | |||||||||||||||||||||||||||||
amortized | unrealized | unrealized | value | ||||||||||||||||||||||||||||||
cost | holding | holding | |||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 328.2 | $ | 38.3 | $ | — | $ | 366.5 | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 750.4 | 50.3 | (0.4 | ) | 800.3 | ||||||||||||||||||||||||||||
Corporate securities | 320.5 | 19.2 | (1.1 | ) | 338.6 | ||||||||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 377.1 | 24 | (1.4 | ) | 399.7 | ||||||||||||||||||||||||||||
Total fixed maturities | 1,776.20 | 131.8 | (2.9 | ) | 1,905.10 | ||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Large-cap securities | 152.6 | 25 | (3.4 | ) | 174.2 | ||||||||||||||||||||||||||||
Small-cap securities | 43.6 | 10.6 | — | 54.2 | |||||||||||||||||||||||||||||
Total equity securities | 196.2 | 35.6 | (3.4 | ) | 228.4 | ||||||||||||||||||||||||||||
Other invested assets | 49 | 15.4 | — | 64.4 | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,021.40 | $ | 182.8 | $ | (6.3 | ) | $ | 2,197.90 | ||||||||||||||||||||||||
The following tables set forth the Company’s gross unrealized losses and fair value on its investments by lot, aggregated by investment category and length of time for individual securities that have been in a continuous unrealized loss position at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
31-Dec-13 | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | ||||||||||||||||||||||||
value | losses | of | value | losses | of | value | losses | of | |||||||||||||||||||||||||
positions | positions | positions | |||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 109.6 | $ | (6.5 | ) | 29 | $ | — | $ | — | — | $ | 109.6 | $ | (6.5 | ) | 29 | ||||||||||||||||
Obligations of states and political subdivisions | 206.4 | (14.7 | ) | 76 | 25.6 | (2.2 | ) | 7 | 232 | (16.9 | ) | 83 | |||||||||||||||||||||
Corporate securities | 105.6 | (3.2 | ) | 22 | 40.9 | (3.5 | ) | 8 | 146.5 | (6.7 | ) | 30 | |||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 103.6 | (3.3 | ) | 25 | 19.3 | (0.8 | ) | 10 | 122.9 | (4.1 | ) | 35 | |||||||||||||||||||||
Total fixed maturities | 525.2 | (27.7 | ) | 152 | 85.8 | (6.5 | ) | 25 | 611 | (34.2 | ) | 177 | |||||||||||||||||||||
Large-cap equity securities | 5.3 | (0.3 | ) | 2 | — | — | — | 5.3 | (0.3 | ) | 2 | ||||||||||||||||||||||
Total temporarily impaired securities | $ | 530.5 | $ | (28.0 | ) | 154 | $ | 85.8 | $ | (6.5 | ) | 25 | $ | 616.3 | $ | (34.5 | ) | 179 | |||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
31-Dec-12 | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | ||||||||||||||||||||||||
value | losses | of | value | losses | of | value | losses | of | |||||||||||||||||||||||||
positions | positions | positions | |||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 7 | $ | — | 2 | $ | — | $ | — | — | $ | 7 | $ | — | 2 | ||||||||||||||||||
Obligations of states and political subdivisions | 47.4 | (0.4 | ) | 12 | — | — | — | 47.4 | (0.4 | ) | 12 | ||||||||||||||||||||||
Corporate securities | 80.4 | (1.1 | ) | 17 | — | — | — | 80.4 | (1.1 | ) | 17 | ||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 23.3 | (0.3 | ) | 6 | 34.8 | (1.1 | ) | 13 | 58.1 | (1.4 | ) | 19 | |||||||||||||||||||||
Total fixed maturities | 158.1 | (1.8 | ) | 37 | 34.8 | (1.1 | ) | 13 | 192.9 | (2.9 | ) | 50 | |||||||||||||||||||||
Large-cap equity securities | 23.7 | (2.1 | ) | 4 | 8.9 | (1.3 | ) | 5 | 32.6 | (3.4 | ) | 9 | |||||||||||||||||||||
Total temporarily impaired securities | $ | 181.8 | $ | (3.9 | ) | 41 | $ | 43.7 | $ | (2.4 | ) | 18 | $ | 225.5 | $ | (6.3 | ) | 59 | |||||||||||||||
The following table sets forth the realized losses related to other-than-temporary impairments on the Company’s investment portfolio recognized for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Large-cap securities | $ | (1.8 | ) | $ | — | $ | (1.0 | ) | |||||||||||||||||||||||||
Small-cap securities | (2.2 | ) | (3.2 | ) | (5.6 | ) | |||||||||||||||||||||||||||
Fixed maturities | — | (0.2 | ) | — | |||||||||||||||||||||||||||||
Total other-than-temporary impairments | $ | (4.0 | ) | $ | (3.4 | ) | $ | (6.6 | ) | ||||||||||||||||||||||||
The Company reviewed its investments at December 31, 2013, and determined no additional other-than-temporary impairment exists in the gross unrealized holding losses. | |||||||||||||||||||||||||||||||||
The following table sets forth the amortized cost and fair value of available-for-sale fixed maturities by contractual maturity at December 31, 2013: | |||||||||||||||||||||||||||||||||
($ millions) | Amortized | Fair | |||||||||||||||||||||||||||||||
cost | value | ||||||||||||||||||||||||||||||||
Due in 1 year or less | $ | 49.1 | $ | 49.6 | |||||||||||||||||||||||||||||
Due after 1 year through 5 years | 391.4 | 407.2 | |||||||||||||||||||||||||||||||
Due after 5 years through 10 years | 394.1 | 409.8 | |||||||||||||||||||||||||||||||
Due after 10 years | 621.2 | 609.7 | |||||||||||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 348.2 | 353.8 | |||||||||||||||||||||||||||||||
Total | $ | 1,804.00 | $ | 1,830.10 | |||||||||||||||||||||||||||||
Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay the obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||
At December 31, 2013, State Auto P&C had fixed maturity securities, with a carrying value of approximately $85.0 million, that were pledged as collateral for the FHLB Loan (as defined in Note 7). In accordance with the terms of the FHLB Loan, State Auto P&C retains all rights regarding these securities, which are included in the "U.S. government agencies residential mortgage-backed securities" classification of the Company's fixed maturity securities portfolio. | |||||||||||||||||||||||||||||||||
Fixed maturities with fair values of approximately $8.7 million and $10.0 million were on deposit with insurance regulators as required by law at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||
The following table sets forth the components of net investment income for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Fixed maturities | $ | 63.2 | $ | 66.9 | $ | 77 | |||||||||||||||||||||||||||
Equity securities | 6 | 4.9 | 4.9 | ||||||||||||||||||||||||||||||
Cash and cash equivalents, and other | 5.7 | 5.6 | 5.7 | ||||||||||||||||||||||||||||||
Investment income | 74.9 | 77.4 | 87.6 | ||||||||||||||||||||||||||||||
Investment expenses | 2.1 | 2 | 2.2 | ||||||||||||||||||||||||||||||
Net investment income | $ | 72.8 | $ | 75.4 | $ | 85.4 | |||||||||||||||||||||||||||
The Company’s current investment strategy does not rely on the use of derivative financial instruments. | |||||||||||||||||||||||||||||||||
Proceeds on sales of available-for-sale securities in 2013, 2012 and 2011 were $220.4 million, $435.3 million and $369.3 million, respectively. | |||||||||||||||||||||||||||||||||
The following table sets forth the realized and unrealized holding gains (losses) on the Company’s investment portfolio for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Realized gains: | |||||||||||||||||||||||||||||||||
Fixed maturities | $ | 2.5 | $ | 15.7 | $ | 4.4 | |||||||||||||||||||||||||||
Equity securities | 26.1 | 19 | 41.7 | ||||||||||||||||||||||||||||||
Other invested assets | 0.1 | 0.1 | 3.9 | ||||||||||||||||||||||||||||||
Total realized gains | 28.7 | 34.8 | 50 | ||||||||||||||||||||||||||||||
Realized losses: | |||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Sales | (1.2 | ) | (2.6 | ) | (5.3 | ) | |||||||||||||||||||||||||||
OTTI | (4.0 | ) | (3.2 | ) | (6.6 | ) | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
Sales | (0.3 | ) | — | — | |||||||||||||||||||||||||||||
OTTI | — | (0.2 | ) | — | |||||||||||||||||||||||||||||
Total realized losses | (5.5 | ) | (6.0 | ) | (11.9 | ) | |||||||||||||||||||||||||||
Net realized gains on investments | $ | 23.2 | $ | 28.8 | $ | 38.1 | |||||||||||||||||||||||||||
Change in unrealized holding (losses) gains, net of tax: | |||||||||||||||||||||||||||||||||
Fixed maturities | $ | (102.8 | ) | $ | 11.3 | $ | 79.2 | ||||||||||||||||||||||||||
Equity securities | 36.5 | 6.6 | (30.4 | ) | |||||||||||||||||||||||||||||
Other invested assets | 16 | 6.8 | (6.7 | ) | |||||||||||||||||||||||||||||
Deferred federal income tax liability | 17.6 | (8.6 | ) | (14.7 | ) | ||||||||||||||||||||||||||||
Valuation allowance | (6.7 | ) | 9.2 | — | |||||||||||||||||||||||||||||
Change in net unrealized holding (losses) gains, net of tax | $ | (39.4 | ) | $ | 25.3 | $ | 27.4 | ||||||||||||||||||||||||||
There was a deferred federal income tax liability, net of a valuation allowance, on the net unrealized holding gains at December 31, 2013 and 2012 of $41.6 million, and $52.5 million, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||
Below is the fair value hierarchy that categorizes into three levels the inputs to valuation techniques that are used to measure fair value. | ||||||||||||||||||||||
• | Level 1 includes observable inputs which reflect quoted prices for identical assets or liabilities in active markets at the measurement date. | |||||||||||||||||||||
• | Level 2 includes observable inputs for assets or liabilities other than quoted prices included in Level 1, and it includes valuation techniques which use prices for similar assets and liabilities. | |||||||||||||||||||||
• | Level 3 includes unobservable inputs which reflect the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). | |||||||||||||||||||||
The Company utilizes one nationally recognized pricing service to estimate the majority of its available-for-sale investment portfolio’s fair value. The Company obtains one price per security. The Company’s processes and control procedures are designed to ensure the price is accurately recorded on an unadjusted basis. Through discussions with the pricing service, the Company obtains an understanding of the methodologies used to price the different types of securities, that the data and the valuation methods utilized are appropriate and consistently applied, and that the assumptions are reasonable and representative of fair value. To validate the reasonableness of the valuations obtained from the pricing service, the Company compares the valuations received to other fair value pricing from other independent pricing sources. At December 31, 2013 and 2012, the Company did not adjust any of the prices received from the pricing service. | ||||||||||||||||||||||
Transfers between levels may occur due to changes in the availability of market observable inputs. Transfers in and out of levels are reported as having occurred at the beginning of the quarter in which the transfer occurred. There were no transfers between levels during the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||
The following sections describe the valuation methods used by the Company for each type of financial instrument carried at fair value. | ||||||||||||||||||||||
Fixed Maturities | ||||||||||||||||||||||
The fair value estimate of the Company’s fixed maturity investments are determined by evaluations that are based on observable market information rather than market quotes. Inputs to the evaluations include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, and other market-observable information. The fixed maturity portfolio pricing obtained from the pricing service is reviewed for reasonableness. Regularly, samples of security prices are referred back to the pricing service for more detailed explanation as to how the pricing service arrived at that particular price. The explanations are reviewed for reasonableness by the portfolio manager or investment officer. Additionally, the prices and assumptions are verified against an alternative pricing source for reasonableness and accuracy. Any discrepancies with the pricing are returned to the pricing service for further explanation and if necessary, adjustments are made. To date, the Company has not identified any significant discrepancies in the pricing provided by its third party pricing service. Investments valued using these inputs include U.S. treasury securities and obligations of U.S. government agencies, obligations of states and political subdivisions, corporate securities (except for two securities discussed below), and U.S. government agencies residential mortgage-backed securities. All unadjusted estimates of fair value for fixed maturities priced by the pricing service are included in the amounts disclosed in Level 2 of the hierarchy. If market inputs are unavailable, then no fair value is provided by the pricing service. For these securities, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a quote; or the Company internally determines the fair values by employing widely accepted pricing valuation models, and depending on the level of observable market inputs, renders the fair value estimate as Level 2 or Level 3. The Company holds two fixed maturity corporate securities included in Level 3. The Company estimates the fair value of one security using the present value of the future cash flows and the Company obtains a broker quote of the other security’s fair value. Due to the limited amount of observable market information for both of these securities, the Company includes the fair value estimates in Level 3. | ||||||||||||||||||||||
Equities | ||||||||||||||||||||||
The fair value of each equity security is based on an observable market price for an identical asset in an active market and is priced by the same pricing service discussed above. All equity securities are recorded using unadjusted market prices and have been disclosed in Level 1. | ||||||||||||||||||||||
Other Invested Assets | ||||||||||||||||||||||
Included in other invested assets are two international funds (“the funds”) that invest in equity securities of foreign issuers and are managed by third party investment managers. The funds had a fair value of $74.2 million and $59.0 million at December 31, 2013 and 2012, respectively, which was determined using each fund’s net asset value. The Company employs procedures to assess the reasonableness of the fair value of the funds including obtaining and reviewing each fund’s audited financial statements. There are no unfunded commitments related to the funds. The Company may not sell its investment in the funds; however, the Company may redeem all or a portion of its investment in the funds at net asset value per share with the appropriate prior written notice. The funds are disclosed in Level 2 within the hierarchy due to the Company’s ability to redeem its investment in the funds at net asset value per share at the measurement date. | ||||||||||||||||||||||
The remainder of the Company’s other invested assets consist of holdings in publicly-traded mutual funds. The Company believes that its prices for these publicly-traded mutual funds, based on an observable market price for an identical asset in an active market, reflect their fair values and consequently these securities have been disclosed in Level 1. | ||||||||||||||||||||||
The following tables set forth the Company’s available-for-sale investments within the fair value hierarchy at December 31, 2013 and 2012: | ||||||||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||
31-Dec-13 | (Level 1) | |||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 352.4 | $ | — | $ | 352.4 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 774.2 | — | 774.2 | — | ||||||||||||||||||
Corporate securities | 349.7 | — | 340.8 | 8.9 | ||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 353.8 | — | 353.8 | — | ||||||||||||||||||
Total fixed maturities | 1,830.10 | — | 1,821.20 | 8.9 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||
Large-cap securities | 194.4 | 194.4 | — | — | ||||||||||||||||||
Small-cap securities | 70.9 | 70.9 | — | — | ||||||||||||||||||
Total equity securities | 265.3 | 265.3 | — | — | ||||||||||||||||||
Other invested assets | 80.9 | 6.7 | 74.2 | — | ||||||||||||||||||
Total available-for-sale investments | $ | 2,176.30 | $ | 272 | $ | 1,895.40 | $ | 8.9 | ||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||
31-Dec-12 | (Level 1) | |||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 366.5 | $ | — | $ | 366.5 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 800.3 | — | 800.3 | — | ||||||||||||||||||
Corporate securities | 338.6 | — | 330.1 | 8.5 | ||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 399.7 | — | 399.7 | — | ||||||||||||||||||
Total fixed maturities | 1,905.10 | — | 1,896.60 | 8.5 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||
Large-cap securities | 174.2 | 174.2 | — | — | ||||||||||||||||||
Small-cap securities | 54.2 | 54.2 | — | — | ||||||||||||||||||
Total equity securities | 228.4 | 228.4 | — | — | ||||||||||||||||||
Other invested assets | 64.4 | 5.4 | 59 | — | ||||||||||||||||||
Total available-for-sale investments | $ | 2,197.90 | $ | 233.8 | $ | 1,955.60 | $ | 8.5 | ||||||||||||||
For assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following tables set forth a reconciliation of the beginning and ending balances for 2013 and 2012, separately for each major category of assets: | ||||||||||||||||||||||
($ millions) | Fixed | |||||||||||||||||||||
maturities | ||||||||||||||||||||||
Balance at January 1, 2013 | $ | 8.5 | ||||||||||||||||||||
Total realized gains (losses)—included in earnings | — | |||||||||||||||||||||
Total unrealized gains (losses)—included in other comprehensive income | 0.2 | |||||||||||||||||||||
Purchases | 0.2 | |||||||||||||||||||||
Sales | — | |||||||||||||||||||||
Transfers into Level 3 | — | |||||||||||||||||||||
Transfers out of Level 3 | — | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 8.9 | ||||||||||||||||||||
($ millions) | Fixed | |||||||||||||||||||||
maturities | ||||||||||||||||||||||
Balance at January 1, 2012 | $ | 2.9 | ||||||||||||||||||||
Total realized gains (losses)—included in earnings | (0.2 | ) | ||||||||||||||||||||
Total unrealized gains (losses)—included in other comprehensive income | — | |||||||||||||||||||||
Purchases | 5.8 | |||||||||||||||||||||
Sales | — | |||||||||||||||||||||
Transfers into Level 3 | — | |||||||||||||||||||||
Transfers out of Level 3 | — | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 8.5 | ||||||||||||||||||||
Financial Instruments Disclosed, But Not Carried, At Fair Value | ||||||||||||||||||||||
Other Invested Assets | ||||||||||||||||||||||
Included in other invested assets are the FHLB membership common stock ("FHLB common stock"), purchased when State Auto P&C joined the FHLB in 2013, and the Trust Securities (as defined in Note 6b). The Trust Securities and FHLB common stock are carried at cost, which approximates fair value. The fair value of the FHLB common stock at December 31, 2013 was $4.5 million and the fair value of the Trust Securities were $0.5 million. Both investments have been placed in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||
Notes Receivable from Affiliates | ||||||||||||||||||||||
In May 2009, the Company entered into two separate credit agreements with State Auto Mutual pursuant to which it loaned State Auto Mutual a total of $70.0 million. The Company estimates the fair value of the notes receivable from affiliate using market quotations for U.S. treasury securities with similar maturity dates and applies an appropriate credit spread. This has been placed in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
($ millions, except interest rates) | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Carrying | Fair | Interest | Carrying | Fair | Interest | |||||||||||||||||
value | value | rate | value | value | rate | |||||||||||||||||
Notes receivable from affiliate | $ | 70 | $ | 74.6 | 7 | % | $ | 70 | $ | 78.3 | 7 | % | ||||||||||
Notes Payable | ||||||||||||||||||||||
Included in notes payable are the FHLB Loan and Subordinated Debentures. The Company estimates the fair value of the FHLB Loan by discounting cash flows using a borrowing rate currently available to the Company for a loan with similar terms. This has been placed in Level 3 of the fair value hierarchy. The carrying amount of the Subordinated Debentures approximates its fair value as the interest rate adjusts quarterly and has been disclosed in Level 3. | ||||||||||||||||||||||
($ millions, except interest rates) | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Carrying | Fair | Interest | Carrying | Fair | Interest | |||||||||||||||||
value | Value | rate | value | value | rate | |||||||||||||||||
FHLB Loan due 2033:, issued $85.0, July 2013 with fixed interest | $ | 85.3 | $ | 85.7 | 5.03 | % | N/A | N/A | N/A | |||||||||||||
Senior Notes due 2013: issued $100.0, November 2003 with fixed interest | N/A | N/A | N/A | $ | 100.4 | $ | 100.3 | 6.25 | % | |||||||||||||
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest | 15.5 | 15.5 | 4.44 | % | 15.5 | 15.5 | 4.51 | |||||||||||||||
Total notes payable | $ | 100.8 | $ | 101.2 | $ | 115.9 | $ | 115.8 | ||||||||||||||
Losses_and_Loss_Expenses_Payab
Losses and Loss Expenses Payable | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Insurance [Abstract] | ' | |||||||||||
Losses and Loss Expenses Payable | ' | |||||||||||
Losses and Loss Expenses Payable | ||||||||||||
The following table sets forth the activity in the liability for losses and loss expenses for the years ended December 31: | ||||||||||||
($ millions) | 2013 | 2012 | 2011 | |||||||||
Losses and loss expenses payable, at beginning of year | $ | 942.2 | $ | 907.1 | $ | 893 | ||||||
Less: reinsurance recoverable on losses and loss expenses payable | 13.5 | 25.5 | 18.8 | |||||||||
Net balance at beginning of year | 928.7 | 881.6 | 874.2 | |||||||||
Impact of pooling change, January 1, 2011 (Note 6a) | — | — | 124.1 | |||||||||
Incurred related to: | ||||||||||||
Current year | 741 | 795.2 | 1,213.30 | |||||||||
Prior years | (21.2 | ) | (16.9 | ) | (33.3 | ) | ||||||
Total incurred | 719.8 | 778.3 | 1,180.00 | |||||||||
Paid related to: | ||||||||||||
Current year | 355 | 397.2 | 724.2 | |||||||||
Prior years | 342.7 | 334 | 369.1 | |||||||||
Total paid | 697.7 | 731.2 | 1,093.30 | |||||||||
Impact of pooling change, December 31, 2011 (Note 6a) | — | — | (203.4 | ) | ||||||||
Net balance at end of year | 950.8 | 928.7 | 881.6 | |||||||||
Plus: reinsurance recoverable on losses and loss expenses payable | 9.1 | 13.5 | 25.5 | |||||||||
Losses and loss expenses payable, at end of year (affiliates $438.0, $435.1 and $376.8, respectively) | $ | 959.9 | $ | 942.2 | $ | 907.1 | ||||||
The Company recorded favorable development related to prior years' loss and loss expense reserves in 2013, 2012 and 2011 of $21.2 million, $16.9 million and $33.3 million, respectively. Favorable development of unallocated loss adjustment expenses contributed approximately $8.0 million of the 2013 development, while $5.4 million was attributable to favorable development on catastrophe reserves, which is lower than 2012, but, in line with the Company's historical favorable development. The personal and business insurance segments non-catastrophe loss and ALAE reserves accounted for $18.3 million of favorable development driven by the other & product liability, commercial auto and homeowners lines with $8.3 million, $8.0 million and $2.9 million of favorable development, respectively. The favorable development in these lines was driven by the emergence of lower than anticipated claim severity. Somewhat offsetting the favorable development was adverse development in the personal auto line, specifically the no-fault coverage. The specialty insurance segment non-catastrophe loss and ALAE reserves accounted for $10.5 million of adverse development, driven by RED reserve strengthening of $21.3 million related to a large restaurant program and a commercial auto trucking program. Somewhat offsetting the unfavorable development was favorable development of workers' compensation reserves of $12.3 million driven by better than anticipated severity emerging across all accident years, with approximately one third coming from accident year 2012. | ||||||||||||
Favorable development of unallocated loss adjustment expenses contributed approximately $6.3 million of the 2012 development, while $10.4 million was attributable to favorable development on catastrophe reserves from accident year 2011. The personal and business insurance segments' non-catastrophe loss and ALAE reserves accounted for $28.0 million of favorable development related to the latest three accident years, primarily in the personal auto liability, other & product liability, and fire & allied lines with $10.5 million, $9.4 million and $5.1 million of favorable development, respectively. The favorable development in these lines was driven by emergence of lower than anticipated claim severity. The specialty insurance segment non-catastrophe loss and ALAE reserves accounted for $27.8 million of adverse development related to the latest two accident years, which was driven by RED reserve strengthening. | ||||||||||||
Favorable development on prior years loss adjustment expense reserves contributed approximately $7.6 million of the 2011 development, while $4.3 million was attributable to favorable development on catastrophe reserves. The personal and business insurance segments' non-catastrophe loss and ALAE reserves accounted for $28.1 million of favorable development in 2011, primarily in the homeowners, commercial multi-peril and fire & allied lines with $14.2 million, $6.1 million and $4.9 million of favorable development, respectively. The favorable development in these lines was driven by emergence of lower than anticipated claim severity, primarily from accident years 2010 and 2009 as well as, to a lesser extent, the past five accident years in the commercial multi-peril line of business. The specialty insurance segment non-catastrophe loss and ALAE reserves accounted for $6.7 million of adverse development in 2011, which was driven by greater than anticipated large losses in the commercial auto line of business and reserve increases on certain life time disability claims in the workers’ compensation line of business. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Reinsurance Disclosures [Abstract] | ' | ||||||||||||
Reinsurance | ' | ||||||||||||
Reinsurance | |||||||||||||
In the ordinary course of business, the Company assumes and cedes reinsurance with other insurers and reinsurers and is a member in various pools and associations. See Note 6a for discussion of reinsurance with affiliates. The voluntary arrangements provide greater diversification of business and limit the maximum net loss potential arising from large risks and catastrophes. Most of the ceded reinsurance is effected under reinsurance contracts known as treaties; the remainder is by negotiation on individual risks. Although the ceding of reinsurance does not discharge the original insurer from its primary liability to its policyholder, the insurance company that assumes the coverage assumes the related liability. | |||||||||||||
Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business. The recoverability of these assets depends on the reinsurers’ ability to perform under the reinsurance agreements. The Company evaluates and monitors the financial condition and concentrations of credit risk associated with its reinsurers under voluntary reinsurance arrangements to minimize its exposure to significant losses from reinsurer insolvencies. The Company has reported ceded losses and loss expenses payable and prepaid reinsurance premiums with other insurers and reinsurers as assets. All reinsurance contracts provide for indemnification against loss or liability relating to insurance risk and have been accounted for as reinsurance. | |||||||||||||
On December 31, 2011, the State Auto Group entered into the Homeowners Quota Share Arrangement, which is a three-year quota share agreement covering its homeowners book of business. Under this arrangement, the State Auto Group cedes to reinsurers 75% of its homeowners business under policies in force at the effective date and new and renewal policies thereafter issued during the term of the agreement. The arrangement remains in place until December 31, 2014. A reinsurer may terminate its participation in the arrangement upon the occurrence of certain events, including, without limitation, the following: the policyholders’ surplus of the State Auto Group has been reduced by more than 25% from the amount of its surplus as of September 30, 2011; or the State Auto Group has been assigned an A.M. Best’s rating below A-. As of December 31, 2013, the State Auto Group was in compliance with the terms of the arrangement. Under the arrangement, the State Auto Group receives a 29.0% commission on all premiums ceded to the reinsurers during the term of the agreement. Subject to the terms and conditions of the arrangement, the State Auto Group may receive a profit commission. On December 31, 2011, the Company transferred $106.3 million of unearned premium related to this arrangement. The amount of ceding commission earned is limited to the amount of deferred acquisition costs that would have been deferred if not for entering in the arrangement. The Company has recorded $8.6 million and $8.4 million of excess ceding commission as a deferred liability on the consolidated balance sheet at December 31, 2013 and 2012, respectively. | |||||||||||||
The following table sets forth the effect of the Company’s external reinsurance on its balance sheets at December 31, 2013 and 2012, prior to the reinsurance transaction with State Auto Mutual under the Pooling Arrangement, as discussed in Note 6a: | |||||||||||||
($ millions) | 2013 | 2012 | |||||||||||
Losses and loss expenses payable: | |||||||||||||
Direct | $ | 516.9 | $ | 499.4 | |||||||||
Assumed | 5 | 7.7 | |||||||||||
Ceded | (9.1 | ) | (13.5 | ) | |||||||||
Net losses and loss expenses payable | $ | 512.8 | $ | 493.6 | |||||||||
Unearned premiums: | |||||||||||||
Direct | $ | 411.6 | $ | 398.7 | |||||||||
Assumed | 1 | 1 | |||||||||||
Ceded | (4.7 | ) | (3.9 | ) | |||||||||
Net unearned premiums | $ | 407.9 | $ | 395.8 | |||||||||
The following table sets forth the effect of the Company’s external reinsurance on its income statements for the years ended December 31, 2013, 2012 and 2011, prior to the reinsurance transaction with State Auto Mutual under the Pooling Arrangement, as discussed in Note 6a: | |||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||
Written premiums: | |||||||||||||
Direct | $ | 886.7 | $ | 860.1 | $ | 814.4 | |||||||
Assumed | 3.9 | 4 | 8.7 | ||||||||||
Ceded | (24.3 | ) | (24.3 | ) | (26.9 | ) | |||||||
Net written premiums | $ | 866.3 | $ | 839.8 | $ | 796.2 | |||||||
Earned premiums: | |||||||||||||
Direct | $ | 874.7 | $ | 833.3 | $ | 812.1 | |||||||
Assumed | 3.8 | 4.1 | 18.2 | ||||||||||
Ceded | (23.5 | ) | (28.2 | ) | (26.7 | ) | |||||||
Net earned premiums | $ | 855 | $ | 809.2 | $ | 803.6 | |||||||
Losses and loss expenses incurred: | |||||||||||||
Direct | $ | 559 | $ | 578.5 | $ | 716.2 | |||||||
Assumed | 3 | 3.6 | 12.6 | ||||||||||
Ceded | (4.8 | ) | (6.4 | ) | (25.8 | ) | |||||||
Net losses and loss expenses incurred (1) | $ | 557.2 | $ | 575.7 | $ | 703 | |||||||
-1 | Includes adjustments for accounting differences between SAP and GAAP of $3.0 million, $0.8 million and $2.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Transactions_with_Affiliates
Transactions with Affiliates | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Transactions with Affiliates | ' | ||||||||||||
Transactions with Affiliates | |||||||||||||
a. Reinsurance | |||||||||||||
The insurance subsidiaries of State Auto Financial participate in a quota share reinsurance pooling arrangement (“the Pooling Arrangement”) with State Auto Mutual and its subsidiaries and affiliates, State Auto Insurance Company of Wisconsin (“SA Wisconsin”), Meridian Citizens Mutual Insurance Company (“Meridian Citizens Mutual”), Meridian Security Insurance Company (“Meridian Security”) which includes State Auto Florida Insurance Company and Beacon National Insurance Company as these companies were merged with Meridian Security at the close of business on December 31, 2012 and Patrons Mutual Insurance Company of Connecticut (“Patrons Mutual”) which includes Litchfield Mutual Fire Insurance Company as it was merged with Patrons Mutual at the close of business March 31, 2013. State Auto P&C, Milbank and SA Ohio are referred to as the “STFC Pooled Companies,” and State Auto Mutual, SA Wisconsin, Meridian Citizens Mutual, Meridian Security and Patrons Mutual are referred to as the “Mutual Pooled Companies.” The STFC Pooled Companies, the Mutual Pooled Companies, including the Rockhill Insurers (defined below), are collectively referred to as the “State Auto Group.” | |||||||||||||
In 2011, we made two changes to the Pooling Arrangement. First, as of January 1, 2011, we added RIC, Plaza, American Compensation and Bloomington Compensation, referred to as the "Rockhill Insurers", to the pool, each with a participation percentage of 0.0% . Second, at the close of business December 31, 2011, the Pooling Arrangement was amended to reduce the overall participation percentage of the STFC Pooled Companies from 80% to 65% and to include the pooling of applicable balance sheet accounts, such as applicable accumulated other comprehensive income related to employee benefit plans. | |||||||||||||
In general, under the Pooling Arrangement, the STFC Pooled Companies and the Mutual Pooled Companies other than State Auto Mutual cede to State Auto Mutual all of their insurance business and assume from State Auto Mutual an amount equal to their respective participation percentages in the Pooling Arrangement. All premiums, losses and loss expenses and underwriting expenses are allocated among the participants on the basis of each Company’s participation percentage in the Pooling Arrangement. The Pooling Arrangement provides indemnification against loss or liability relating to insurance risk and has been accounted for as reinsurance. | |||||||||||||
The Pooling Arrangement does not relieve each individual pooled subsidiary of its primary liability as the originating insurer; consequently, there is a concentration of credit risk arising from business ceded to State Auto Mutual. As the Pooling Arrangement provides for the right of offset, the Company has reported losses and loss expenses payable and prepaid reinsurance premiums to State Auto Mutual as assets only in situations when net amounts ceded to State Auto Mutual exceed net amounts assumed. All parties that participate in the Pooling Arrangement have an A.M. Best rating of A (Excellent). | |||||||||||||
The following table sets forth the reinsurance transactions on the Company’s balance sheets for the Pooling Arrangement between the STFC Pooled Companies and State Auto Mutual at December 31, 2013 and 2012: | |||||||||||||
($ millions) | 2013 | 2012 | |||||||||||
Losses and loss expenses payable: | |||||||||||||
Ceded | $ | (512.8 | ) | $ | (493.6 | ) | |||||||
Assumed | 950.8 | 928.7 | |||||||||||
Net assumed | $ | 438 | $ | 435.1 | |||||||||
Unearned premiums: | |||||||||||||
Ceded | $ | (407.9 | ) | $ | (395.8 | ) | |||||||
Assumed | 486.3 | 477.7 | |||||||||||
Net assumed | $ | 78.4 | $ | 81.9 | |||||||||
The following table sets forth the reinsurance transactions on the Company’s income statements for the Pooling Arrangement between the STFC Pooled Companies and State Auto Mutual for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||
Written premiums: | |||||||||||||
Ceded | $ | (866.3 | ) | $ | (839.9 | ) | $ | (796.2 | ) | ||||
Assumed | 1,062.10 | 1,055.30 | 1,284.60 | ||||||||||
Earned premiums: | |||||||||||||
Ceded | $ | (855.0 | ) | $ | (809.2 | ) | $ | (803.6 | ) | ||||
Assumed | 1,055.00 | 1,042.10 | 1,428.80 | ||||||||||
Losses and loss expenses incurred: | |||||||||||||
Ceded (1) | $ | 557.2 | $ | (575.7 | ) | $ | (703.0 | ) | |||||
Assumed (1) | 719.8 | 778.3 | 1,180.00 | ||||||||||
-1 | Includes adjustments for accounting differences between SAP and GAAP of $3.0 million, $0.8 million and $2.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Intercompany Balances | |||||||||||||
Pursuant to the Pooling Arrangement, State Auto Mutual receives all premiums and pays all losses and expenses associated with the insurance business produced by the pool participants and then settles the intercompany balances generated by these transactions with the participating companies on a quarterly basis within 60 days following each quarter end. No interest is paid on this balance. When settling the intercompany balances, State Auto Mutual provides the pool participants with full credit for the premiums written and net losses paid during the quarter and retains all receivable amounts from insureds and agents and reinsurance recoverable on paid losses from unaffiliated reinsurers. Any receivable amounts that are ultimately deemed to be uncollectible are charged-off by State Auto Mutual and allocated to the pool members on the basis of pool participation. As a result, the Company has an off-balance sheet credit risk related to the balances due to State Auto Mutual from insurers, agents and reinsurers, which are offset by the unearned premium from the respective policies. The Company’s share of the premium balances due to State Auto Mutual from agents and insureds at December 31, 2013 and 2012 is approximately $295.5 million and $269.3 million, respectively. | |||||||||||||
b. Notes Payable | |||||||||||||
In May 2003, State Auto Financial formed a Delaware business trust (the “Capital Trust”) to issue $15.0 million of mandatorily redeemable preferred capital securities to a third party and $0.5 million of common securities to State Auto Financial (the capital and common securities are collectively referred to as the “Trust Securities”). The Capital Trust loaned $15.5 million, the proceeds from the issuance of its Trust Securities, to State Auto Financial in the form of Floating Rate Junior Subordinated Debt Securities due in 2033 (the “Subordinated Debentures”). The Subordinated Debentures and interest accrued thereon are the Capital Trust’s only assets. Interest on the Trust Securities is payable quarterly at a rate equal to the three-month LIBOR rate plus 4.20% adjusted quarterly (total 4.44% at December 31, 2013). Because the interest rate and interest payment dates on the Subordinated Debentures are the same as the interest rate and interest payment dates on the Trust Securities, payments from the Subordinated Debentures finance the distributions paid on the Trust Securities. State Auto Financial has the right to redeem the Subordinated Debentures, in whole or in part, on or after May 2008. State Auto Financial has unconditionally and irrevocably guaranteed payment of any required distributions on the capital securities, the redemption price when the capital securities are to be redeemed, and any amounts due if the Capital Trust is liquidated or terminated. State Auto Financial’s equity interest in the Capital Trust is included in other invested assets. In accordance with the Consolidation Topic of the FASB ASC 810, State Auto Financial determined that the business trust is a variable interest entity for which it is not the primary beneficiary and therefore, does not consolidate the Capital Trust with the Company. | |||||||||||||
c. Notes Receivable | |||||||||||||
In May 2009, the Company entered into two separate credit agreements with State Auto Mutual pursuant to which it loaned State Auto Mutual a total of $70.0 million. Interest is payable semi-annually at a fixed annual interest rate of 7.00%, with the principal payable in May 2019. There is no prepayment penalty, and no collateral was given as security for the payment of this loan. | |||||||||||||
Under these agreements, the Company earned interest of $4.9 million for each of the three years ended December 31, 2013, 2012 and 2011, respectively. See Note 3 for the notes receivable fair value discussion. | |||||||||||||
d. Management Services | |||||||||||||
Stateco provides State Auto Mutual and its affiliates investment management services. Investment management income is recognized quarterly based on a percentage of the average fair value of investable assets and the equity portfolio performance of each company managed. Revenue related to these services amounted to $1.6 million, $2.9 million and $1.9 million in 2013, 2012 and 2011, respectively, and is included in other income (affiliates) on the consolidated statements of income. |
Notes_Payable_and_Credit_Facil
Notes Payable and Credit Facility | 12 Months Ended |
Dec. 31, 2013 | |
Notes Payable [Abstract] | ' |
Notes Payable and Credit Facility | ' |
Notes Payable and Credit Facility | |
FHLB Loan | |
On July 11, 2013, State Auto Financial's subsidiary, State Auto P&C, borrowed $85.0 million (the "FHLB Loan") from the FHLB. The FHLB Loan is a 20-year term loan and is callable after three years with no prepayment penalty thereafter. The FHLB Loan provides for interest-only payments during its term, with principal due in full at maturity. The interest rate is fixed over the term of the loan at 5.03%. The FHLB Loan is fully secured by a pledge of specific investment securities of State Auto P&C. | |
Senior Note Redemption | |
On July 15, 2013, State Auto Financial redeemed all $100.0 million of its outstanding Senior Notes. The redemption price of $103.0 million was calculated in accordance with the terms of the Senior Notes and included principal plus a make-whole amount. The redemption price was funded by proceeds from the FHLB Loan and cash on hand. | |
Credit Facility | |
On July 26, 2013, State Auto Financial terminated its then-current credit agreement with a syndicate of lenders, as further described below. Concurrent with the termination of this credit agreement, State Auto P&C entered into a new credit facility (the “SPC Credit Facility”) with a syndicate of lenders. The SPC Credit Facility provides State Auto P&C with a $100.0 million five-year revolving credit facility maturing in July 2018. During the term of the SPC Credit Facility, State Auto P&C has the right to increase the total facility to a maximum amount of $150.0 million, provided that no event of default has occurred and is continuing. The SPC Credit Facility is available for general corporate purposes and provides for interest-only payments during its term, with principal and interest due in full at maturity. Interest is based on the London Interbank Offered Rate ("LIBOR") or a base rate plus a calculated margin amount. All advances under the SPC Credit Facility are to be fully secured by a pledge of specific investment securities of State Auto P&C. The SPC Credit Facility includes certain requirements, including financial requirements that State Auto Financial maintain a minimum net worth and a certain debt to capitalization ratio. | |
As of December 31, 2013, State Auto P&C had not made any borrowings and both State Auto P&C and State Auto Financial were in compliance with all covenants and requirements of the SPC Credit Facility. |
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Federal Income Taxes | ' | ||||||||||||||||||||
Federal Income Taxes | |||||||||||||||||||||
The following table sets forth the reconciliation between actual federal income tax expense (benefit) and the amount computed at the indicated statutory rate for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||
Amount at statutory rate | $ | 21.5 | 35 | % | $ | 3.7 | 35 | % | $ | (39.2 | ) | 35 | % | ||||||||
Tax-exempt interest and dividends received deduction | (9.4 | ) | (15.0 | ) | (9.1 | ) | (85.0 | ) | (10.8 | ) | 10 | ||||||||||
Other, net | 0.2 | — | 0.5 | 4 | (4.7 | ) | 4 | ||||||||||||||
Valuation allowance | (11.8 | ) | (19.0 | ) | 4.8 | 45 | 103.3 | (92.0 | ) | ||||||||||||
Federal income tax expense (benefit) and effective rate | $ | 0.5 | 1 | % | $ | (0.1 | ) | (1.0 | )% | $ | 48.6 | (43.0 | )% | ||||||||
The following table sets forth the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012: | |||||||||||||||||||||
($ millions) | 2013 | 2012 | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Unearned premiums not currently deductible | $ | 33.8 | $ | 33.4 | |||||||||||||||||
Losses and loss expenses payable discounting | 21.6 | 25.2 | |||||||||||||||||||
Postretirement and pension benefits | 24.9 | 39.4 | |||||||||||||||||||
Realized loss on other-than-temporary impairment | 7.5 | 7.5 | |||||||||||||||||||
Other liabilities | 17.3 | 14.5 | |||||||||||||||||||
Net operating loss carryforward | 56.5 | 66.5 | |||||||||||||||||||
Tax credit carryforward | 1.7 | 0.9 | |||||||||||||||||||
Other | 9.2 | 7.9 | |||||||||||||||||||
Total deferred tax assets | 172.5 | 195.3 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Deferral of policy acquisition costs | 33.9 | 32.1 | |||||||||||||||||||
Net unrealized holding gains on investments | 44.1 | 61.7 | |||||||||||||||||||
Total deferred tax liabilities | 78 | 93.8 | |||||||||||||||||||
Total net deferred tax assets before valuation allowance | 94.5 | 101.5 | |||||||||||||||||||
Less valuation allowance | 82.6 | 100.5 | |||||||||||||||||||
Net deferred federal income taxes | $ | 11.9 | $ | 1 | |||||||||||||||||
Deferred income tax assets and liabilities represent the tax effect of the differences between the financial statement carrying value of existing assets and liabilities and their respective tax bases. The Company periodically evaluates its deferred tax assets, which requires significant judgment, to determine if they are realizable based upon weighing all available evidence, both positive and negative, including loss carryback potential, past operating results, existence of cumulative losses in the most recent years, projected performance of the business, future taxable income, including the ability to generate capital gains, and prudent and feasible tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. | |||||||||||||||||||||
During 2011, the Company determined that a valuation allowance should be established due to the magnitude of the catastrophe losses from unprecedented storms experienced industry wide. At December 31, 2013 and 2012, the Company recorded a valuation allowance of $82.6 million and $100.5 million, respectively. The deferred income tax asset remaining after recognition of the valuation allowance represents a deferred tax asset on the gross unrealized fixed maturity losses where management determined this portion of the asset to be realizable due to management’s assertion that it has both the ability and intent to hold these securities through recovery or maturity. | |||||||||||||||||||||
In future periods the Company will re-assess its judgments and assumptions regarding the realization of its net deferred tax assets, but until such time the positive evidence exceeds the negative evidence the Company will maintain a valuation allowance against its net deferred tax assets. | |||||||||||||||||||||
At December 31, 2013, the tax benefit of the net operating loss carryforward was $56.5 million; if not used, it will expire in 2032. | |||||||||||||||||||||
At December 31, 2013, the Company carried no balance for uncertain tax positions. The Company had no accrual for the payment of interest and penalties at December 31, 2013 or 2012. | |||||||||||||||||||||
State Auto Financial and its subsidiaries file a consolidated U.S. federal income tax return. State Auto Financial and its subsidiaries also file in various state jurisdictions. The Company is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for years before 2010. The Company has no current U.S. federal or state and local income tax examinations on-going at this time. |
Pension_and_Postretirement_Ben
Pension and Postretirement Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | |||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ||||||||||||||||||||||||
The Company, through the employees of State Auto P&C, provides management and operation services under management agreements for all insurance and non-insurance affiliates. The annual periodic costs related to the Company’s benefit plans are allocated to affiliated companies based on allocations pursuant to intercompany management agreements including the Pooling Arrangement for insurance subsidiaries and affiliates party to this agreement. | ||||||||||||||||||||||||
The Company provides a defined benefit pension plan for its eligible employees. Substantially all Company employees hired prior to January 1, 2010 become eligible to participate the year after becoming 20 years of age and vest with 5 years of credited service or attaining age 65. The Company’s policy is to fund pension costs in accordance with the requirements of the Employee Retirement Income Security Act of 1974. Benefits are determined by applying factors specified in the plan to a participant’s defined average annual compensation. | ||||||||||||||||||||||||
The defined benefit pension and postretirement benefit plans are referred to herein as “the benefit plans.” | ||||||||||||||||||||||||
The following table sets forth information regarding the pension and postretirement benefit plans’ change in benefit obligation, plan assets and funded status at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | Pension | Postretirement | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 246.1 | $ | 229.6 | $ | 25.1 | $ | 27.1 | ||||||||||||||||
Service cost | 6.1 | 7.8 | — | — | ||||||||||||||||||||
Interest cost | 9.6 | 9.9 | 1 | 1.1 | ||||||||||||||||||||
Actuarial (gain) loss | (19.6 | ) | 10.6 | (2.6 | ) | (1.6 | ) | |||||||||||||||||
Benefits paid | (11.7 | ) | (11.8 | ) | (1.2 | ) | (1.5 | ) | ||||||||||||||||
The Company’s portion of benefit obligation at end of year | $ | 230.5 | $ | 246.1 | $ | 22.3 | $ | 25.1 | ||||||||||||||||
Change in plan assets available for plan benefits: | ||||||||||||||||||||||||
Fair value of plan assets available for plan benefits at beginning of year | $ | 162.2 | 147.7 | $ | 1.8 | 1.8 | ||||||||||||||||||
Employer contribution | 13 | 13 | — | — | ||||||||||||||||||||
Actual return on plan assets | 22.4 | 13.3 | 0.3 | — | ||||||||||||||||||||
Benefits paid | (11.7 | ) | (11.8 | ) | (0.8 | ) | — | |||||||||||||||||
The Company’s portion of fair value of plan assets at end of year | $ | 185.9 | $ | 162.2 | $ | 1.3 | $ | 1.8 | ||||||||||||||||
Supplemental executive retirement plan | (6.0 | ) | (5.8 | ) | — | — | ||||||||||||||||||
Funded status at end of year | $ | (50.6 | ) | $ | (89.7 | ) | $ | (21.0 | ) | $ | (23.3 | ) | ||||||||||||
Accumulated benefit obligation end of year | $ | 211.2 | $ | 223 | ||||||||||||||||||||
No assets are expected to be returned during the fiscal year ending December 31, 2014. | ||||||||||||||||||||||||
The following table sets forth the Company’s share of the amounts included in accumulated other comprehensive income (loss) that have not been recognized in net periodic cost at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | 2013 | 2012 | ||||||||||||||||||||||
Prior service benefit | $ | (70.3 | ) | $ | (75.6 | ) | ||||||||||||||||||
Net actuarial loss | 94.3 | 135.7 | ||||||||||||||||||||||
Total | $ | 24 | $ | 60.1 | ||||||||||||||||||||
The following table sets forth the Company’s share of amortization expected to be recognized for the year ending December 31, 2014: | ||||||||||||||||||||||||
($ millions) | 2014 | |||||||||||||||||||||||
Prior service benefit | $ | (7.8 | ) | |||||||||||||||||||||
Net actuarial loss | 6.3 | |||||||||||||||||||||||
Total | $ | (1.5 | ) | |||||||||||||||||||||
The following table sets forth information regarding the Company’s share of pension and postretirement benefit plans’ components of net periodic cost for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
($ millions) | Pension | Postretirement | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic cost: | ||||||||||||||||||||||||
Service cost | $ | 6.1 | $ | 7.8 | $ | 8.5 | $ | 0.4 | $ | — | $ | 4.1 | ||||||||||||
Interest cost | 9.6 | 9.9 | 12.3 | 1.2 | 1.1 | 5.1 | ||||||||||||||||||
Expected return on plan assets | (12.2 | ) | (11.7 | ) | (14.6 | ) | (0.2 | ) | (0.1 | ) | (0.2 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Prior service cost (benefit) | — | 0.3 | 0.3 | (5.5 | ) | (5.5 | ) | (2.1 | ) | |||||||||||||||
Net actuarial loss | 8.1 | 6.7 | 7 | 1 | 1.1 | 0.3 | ||||||||||||||||||
Net periodic cost (benefit) | $ | 11.6 | $ | 13 | $ | 13.5 | $ | (3.1 | ) | $ | (3.4 | ) | $ | 7.2 | ||||||||||
The following table sets forth the Company’s share of the benefit payments, which reflect expected future service, expected to be paid: | ||||||||||||||||||||||||
($ millions) | Pension | Postretirement | ||||||||||||||||||||||
2014 | $ | 8.9 | $ | 1.9 | ||||||||||||||||||||
2015 | 9.3 | 1.9 | ||||||||||||||||||||||
2016 | 9.7 | 1.9 | ||||||||||||||||||||||
2017 | 10.2 | 1.9 | ||||||||||||||||||||||
2018 | 11 | 1.8 | ||||||||||||||||||||||
2019 – 2023 | 66.4 | 8 | ||||||||||||||||||||||
The postretirement plan’s gross benefit payments for 2013 were $1.2 million, including the prescription drug benefits. The postretirement plan’s subsidy related to Medicare Prescription Drug Improvement and Modernization Act of 2003 was $0.1 million for 2013 and estimates future annual subsidies to be approximately $0.2 million. | ||||||||||||||||||||||||
The following table sets forth the weighted average assumptions used to determine the benefit plans’ obligations at December 31, 2013 and 2012: | ||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Benefit obligations weighted-average assumptions: | ||||||||||||||||||||||||
Discount rate | 4.85 | % | 4.05 | % | 4.85 | % | 4.05 | % | ||||||||||||||||
Rates of increase in compensation levels | 3.5 | 4 | — | — | ||||||||||||||||||||
The following table sets forth the weighted average assumptions used to determine the benefit plans’ net periodic cost for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Weighted-average assumptions: | ||||||||||||||||||||||||
5.5 | % | / | ||||||||||||||||||||||
Discount rate | 4.05 | % | 4.4 | % | 5.5 | % | 4.05 | % | 4.4 | % | 4.75 | % | (1) | |||||||||||
Expected long-term rate of return on assets | 7.5 | 7.5 | 8 | 7.5 | 7.5 | 8 | ||||||||||||||||||
Rates of increase in compensation levels | 4 | 4 | 4 | — | — | — | ||||||||||||||||||
-1 | Due to the curtailment resulting from the postretirement benefit plan amendment, the expense was remeasured at November 1, 2011, using discount rate of 4.75%. | |||||||||||||||||||||||
The benefit plans’ obligations are long-term in nature and consequently the investment strategies have a long-term time horizon. In establishing the long-term rate of return assumption on plan assets, management, along with its pension consulting actuary, reviews the historical performance of the plan assets and the stability in the mix of the investment portfolio. The expected inflation rate and expected real rates of return of applicable asset classes are then determined to assist in setting appropriate assumptions. | ||||||||||||||||||||||||
The following table sets forth the assumed health care cost trend rates used for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
Postretirement | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Assumed health care cost trend rates: | ||||||||||||||||||||||||
Health care cost trend rate assumed for the next year | 10 | % | 10 | % | 10 | % | ||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2018 | 2017 | 2016 | |||||||||||||||||||||
The assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement plan. The following table sets forth the effects of a one percentage point change in assumed health care cost trend rates for the year ended December 31, 2013: | ||||||||||||||||||||||||
($ millions) | Postretirement | |||||||||||||||||||||||
Increase | (Decrease) | |||||||||||||||||||||||
One percentage point change: | ||||||||||||||||||||||||
Effect on total service and interest cost | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||||||
Effect on accumulated postretirement benefit obligation | 2.7 | (2.4 | ) | |||||||||||||||||||||
The pension plan's investment policy objective is to preserve the investment principal while generating income and appreciation in fair value to meet the pension plan's obligations. The pension plan's investment strategy and risk tolerance is balanced between meeting cash obligation requirements and a long-term relatively high risk tolerance takes into account the predictable cash requirements, nature of the plan’s liabilities and the plan’s long term time horizon. Since the nature and timing of the benefit plans’ liabilities and cash requirements are predictable, the liquidity requirements are somewhat moderate. One of the goals of diversifying the benefit plans’ portfolio among different asset classes is the elimination of concentration of risk in one asset class. Management also has investment policy guidelines with respect to limiting the ownership in any single debt or equity issuer. The international fund investments are also composed of numerous securities to reduce our exposure to a single issuer. The following table sets forth the asset allocation targets, as a percentage of total fair value, which are used as a guide by management when allocating funds as they become available. | ||||||||||||||||||||||||
Asset | ||||||||||||||||||||||||
allocation | ||||||||||||||||||||||||
target | ||||||||||||||||||||||||
(0 to 100%) | ||||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||
Fixed maturity | 36 | % | ||||||||||||||||||||||
U.S. large-cap equity | 33 | |||||||||||||||||||||||
U.S. small-cap equity | 14 | |||||||||||||||||||||||
International equity | 12 | |||||||||||||||||||||||
Emerging market equity | 5 | |||||||||||||||||||||||
Total | 100 | % | ||||||||||||||||||||||
Effective January 1, 2014, the Investment Committee approved a change to a liability driven investment (LDI) for the pension plan assets. The primary goal of the LDI strategy is to shift the asset allocation to more closely align with the plan liability, thereby reducing the volatility of the funded status. The implementation of the LDI strategy will occur over a period of time and the actual asset allocation at any point in time is dependent upon the funded status and the level of interest rates. This glide path helps to balance interest rate risk, curve steepness risk, and credit spread risk, as incremental changes are made to the allocation over time. The new allocation strategy reduces exposure to equity holdings and increases exposure to long duration fixed income. This change will result in lower volatility for the plan assets. By moving more of the plan's assets to long duration fixed income, the duration of the assets will increase to more closely match the duration of the plan's liabilities. While the LDI approach is new for the pension plan, the investment policy objective is unchanged. | ||||||||||||||||||||||||
See Note 3 for the valuation methods used by the Company for each type of financial instrument the plans hold that are carried at fair value. There were no transfers between level categorizations during the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
The following tables set forth the Company’s share of pension plan’s available-for-sale securities within the fair value hierarchy at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-13 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 30 | $ | — | $ | 30 | $ | — | ||||||||||||||||
Corporate securities | 24.6 | — | 24.6 | — | ||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 11.3 | — | 11.3 | — | ||||||||||||||||||||
Total fixed maturities | 65.9 | — | 65.9 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 58 | 58 | — | — | ||||||||||||||||||||
Small-cap securities | 26.3 | 26.3 | — | — | ||||||||||||||||||||
Total equity securities | 84.3 | 84.3 | — | — | ||||||||||||||||||||
International instruments | 25.4 | — | 25.4 | — | ||||||||||||||||||||
Total pension plan investments | $ | 175.6 | $ | 84.3 | $ | 91.3 | $ | — | ||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-12 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 30.4 | $ | — | $ | 30.4 | $ | — | ||||||||||||||||
Corporate securities | 7.4 | — | 7.4 | — | ||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 13.9 | — | 13.9 | — | ||||||||||||||||||||
Total fixed maturities | 51.7 | — | 51.7 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 60.8 | 60.8 | — | — | ||||||||||||||||||||
Small-cap securities | 24.1 | 24.1 | — | — | ||||||||||||||||||||
Total equity securities | 84.9 | 84.9 | — | — | ||||||||||||||||||||
International instruments | 20 | — | 20 | — | ||||||||||||||||||||
Short-term money market funds | 4.1 | 4.1 | — | — | ||||||||||||||||||||
Total pension plan investments | $ | 160.7 | $ | 89 | $ | 71.7 | $ | — | ||||||||||||||||
The following tables set forth the Company’s share of the postretirement plan’s available-for-sale securities within the fair value hierarchy at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-13 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
Corporate securities | $ | 0.2 | $ | — | $ | 0.2 | $ | — | ||||||||||||||||
Total fixed maturities | 0.2 | — | 0.2 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 0.8 | 0.8 | — | — | ||||||||||||||||||||
Total equity securities | 0.8 | 0.8 | — | — | ||||||||||||||||||||
Total postretirement plan investments | $ | 1 | $ | 0.8 | $ | 0.2 | $ | — | ||||||||||||||||
Total | Quoted prices | Significant | Significant | |||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-12 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 0.5 | $ | — | $ | 0.5 | $ | — | ||||||||||||||||
Corporate securities | 0.2 | — | 0.2 | — | ||||||||||||||||||||
Total fixed maturities | 0.7 | — | 0.7 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 0.7 | 0.7 | — | — | ||||||||||||||||||||
Total equity securities | 0.7 | 0.7 | — | — | ||||||||||||||||||||
Short-term money market funds | 0.5 | 0.5 | — | — | ||||||||||||||||||||
Total postretirement plan investments | $ | 1.9 | $ | 1.2 | $ | 0.7 | $ | — | ||||||||||||||||
The actuarially prepared funding amount to the pension plan ranges from the minimum amount the Company would be required to contribute to the maximum amount that would be deductible for tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible for tax purposes. The Company’s share of expected contributions during 2014 is approximately $13.0 million. | ||||||||||||||||||||||||
The Company maintains a defined contribution plan that covers substantially all employees of the Company. The Company matches the first 1% of contributions of participants’ salary at the rate of one dollar for each dollar contributed. Participant contributions of 2% to 6% are matched at a rate of 50 cents for each dollar contributed. In addition, the Company contributes a percentage of the employee’s annual income for those employees hired on or after January 1, 2010, and for those employees hired prior to January 1, 2010 who chose to freeze their existing accrued pension benefit effective June 30, 2010. The Company’s share of the expense under the plan totaled $4.6 million, $4.5 million and $4.8 million for 2013, 2012 and 2011, respectively. |
Other_Comprehensive_Income_and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Other Comprehensive Income and Accumulated Other Comprehensive Income | ' | ||||||||||||||||
Other Comprehensive Income and Accumulated Other Comprehensive Income | |||||||||||||||||
The following tables set forth the changes in the Company’s accumulated other comprehensive income component (AOCI), net of tax, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
($ millions) | Unrealized Gains and Losses on Available-for-Sale Securities | Gains and Losses on Cash Flow Hedges | Benefit Plan Items | Total | |||||||||||||
Beginning balance at January 1, 2013 | $ | 124 | $ | 0.1 | $ | (39.9 | ) | $ | 84.2 | ||||||||
Other comprehensive income before reclassifications | (16.1 | ) | — | 32.5 | 16.4 | ||||||||||||
Amounts reclassified from AOCI (a) | (23.3 | ) | (0.1 | ) | 3.6 | (19.8 | ) | ||||||||||
Net current period other comprehensive income | (39.4 | ) | (0.1 | ) | 36.1 | (3.4 | ) | ||||||||||
Ending balance at December 31, 2013 | $ | 84.6 | $ | — | $ | (3.8 | ) | $ | 80.8 | ||||||||
Beginning balance at January 1, 2012 | $ | 98.7 | $ | 0.2 | $ | (35.1 | ) | $ | 63.8 | ||||||||
Other comprehensive income before reclassifications | 54.1 | — | (7.4 | ) | 46.7 | ||||||||||||
Amounts reclassified from AOCI (a) | (28.8 | ) | (0.1 | ) | 2.6 | (26.3 | ) | ||||||||||
Net current period other comprehensive income | 25.3 | (0.1 | ) | (4.8 | ) | 20.4 | |||||||||||
Ending balance at December 31, 2012 | $ | 124 | $ | 0.1 | $ | (39.9 | ) | $ | 84.2 | ||||||||
Beginning balance at January 1, 2011 | $ | 71.3 | $ | 0.3 | $ | (79.5 | ) | $ | (7.9 | ) | |||||||
Other comprehensive income before reclassifications | 52.1 | — | 56.5 | 108.6 | |||||||||||||
Amounts reclassified from AOCI (a) | (24.7 | ) | (0.1 | ) | (12.1 | ) | (36.9 | ) | |||||||||
Net current period other comprehensive income | 27.4 | (0.1 | ) | 44.4 | 71.7 | ||||||||||||
Ending balance at December 31, 2011 | $ | 98.7 | $ | 0.2 | $ | (35.1 | ) | $ | 63.8 | ||||||||
(a) | See separate table below for details about these reclassifications | ||||||||||||||||
The following tables set forth the reclassifications out of accumulated other comprehensive income, by component, to the Company’s consolidated statement of income for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
($ millions) | |||||||||||||||||
Details about Accumulated Other | 31-Dec | Affected line item in the Condensed | |||||||||||||||
Comprehensive Income Components | 2013 | 2012 | 2011 | Consolidated Statements of Income | |||||||||||||
Unrealized gains on available for sale securities | $ | 23.2 | $ | 28.8 | $ | 24.7 | Realized gain on sale of securities | ||||||||||
23.2 | 28.8 | 24.7 | Total before tax | ||||||||||||||
0.1 | — | — | Tax benefit | ||||||||||||||
23.3 | 28.8 | 24.7 | Net of tax | ||||||||||||||
Amortization of gain on derivative used in cash flow hedge | 0.1 | 0.1 | 0.1 | Realized gain on sale of securities | |||||||||||||
0.1 | 0.1 | 0.1 | Total before tax | ||||||||||||||
— | — | — | Tax benefit (expense) | ||||||||||||||
0.1 | 0.1 | 0.1 | Net of tax | ||||||||||||||
Amortization of benefit plan items: | |||||||||||||||||
Negative prior service costs | 5.5 | 5.2 | 19 | (a) | |||||||||||||
Net loss | (9.1 | ) | (7.8 | ) | (6.9 | ) | (a) | ||||||||||
(3.6 | ) | (2.6 | ) | 12.1 | Total before tax | ||||||||||||
— | — | — | Tax benefit (expense) | ||||||||||||||
(3.6 | ) | (2.6 | ) | 12.1 | Net of tax | ||||||||||||
Total reclassifications for the period | $ | 19.8 | $ | 26.3 | $ | 36.9 | |||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see pension and postretirement benefit plans footnote for additional details). |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Stockholders' Equity | ' | |||||||||||
Stockholders’ Equity | ||||||||||||
a. Dividend Restrictions and Statutory Financial Information | ||||||||||||
State Auto P&C, Milbank and SA Ohio are subject to regulations and restrictions under which payment of dividends from statutory surplus can be made to State Auto Financial during the year without prior approval of regulatory authorities. Under the insurance regulations of Iowa and Ohio (the states of domicile), the maximum amount of dividends that the Company may pay out of earned surplus to shareholders within a twelve month period without prior approval of the Department is limited to the greater of 10% of the most recent year-end policyholders' surplus or net income for the twelve month period ending the 31st day of December of the previous year-end. Pursuant to these rules, approximately $75.3 million is available for payment to State Auto Financial from its insurance subsidiaries in 2014 without prior approval. State Auto Financial received dividends from its insurance subsidiaries in the amount of $10.0 million, $20.0 million and $0 million in 2013, 2012 and 2011, respectively. | ||||||||||||
The Company's insurance subsidiaries are subject to risk-based capital ("RBC") requirements that have been adopted by individual states. These requirements subject insurers having statutory capital less than that required by the RBC calculation to varying degrees of regulatory action, depending on the level of capital inadequacy. The RBC formulas specify various weighting factors to be applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital to authorized control level RBC. Generally no remedial action is required by an insurance company if its adjusted statutory surplus exceeds 200% of the authorized level RBC. As of December 31, 2013, each of the Company's insurance subsidiaries maintained adjusted statutory surplus in excess of 450% of the authorized control level RBC. | ||||||||||||
The following tables set forth reconciliations of statutory capital and surplus and net income, as determined using SAP, to the amounts included in the accompanying consolidated financial statements: | ||||||||||||
($ millions) | 2013 | 2012 | ||||||||||
Statutory capital and surplus of insurance subsidiaries | $ | 753.2 | $ | 630.1 | ||||||||
Net liabilities of non-insurance parent and affiliates | (82.4 | ) | (74.8 | ) | ||||||||
670.8 | 555.3 | |||||||||||
Increases (decreases): | ||||||||||||
Deferred acquisition costs | 96.8 | 91.7 | ||||||||||
Postretirement and pension benefits | 6.3 | 6.6 | ||||||||||
Deferred federal income taxes | (15.8 | ) | (38.0 | ) | ||||||||
Fixed maturities at fair value | 26.1 | 128.5 | ||||||||||
Other, net | 0.8 | (6.9 | ) | |||||||||
Stockholders’ equity per accompanying consolidated financial statements | $ | 785 | $ | 737.2 | ||||||||
($ millions) | Year ended December 31 | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory net income (loss) of insurance subsidiaries | $ | 51.1 | $ | 5.5 | $ | (64.6 | ) | |||||
Net (loss) income of non-insurance parent and affiliates | (5.1 | ) | 0.2 | 1.9 | ||||||||
46 | 5.7 | (62.7 | ) | |||||||||
Increases (decreases): | ||||||||||||
Deferred acquisition costs | 5.1 | — | (26.8 | ) | ||||||||
Postretirement and pension benefits | 10.3 | 5.3 | (2.5 | ) | ||||||||
Deferred federal income taxes | (1.0 | ) | (3.3 | ) | (59.5 | ) | ||||||
Share-based compensation expense | (1.3 | ) | (2.7 | ) | (2.9 | ) | ||||||
Other, net | 1.7 | 5.7 | (6.3 | ) | ||||||||
Net income (loss) per accompanying consolidated financial statements | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | |||||
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' |
Preferred Stock | ' |
Preferred Stock | |
State Auto Financial has two authorized classes of preferred stock. For both classes, upon issuance, the Board of Directors has authority to fix and determine the significant features of the shares issued, including, among other things, the dividend rate, redemption price, redemption rights, conversion features and liquidation price payable in the event of any liquidation, dissolution, or winding up of the affairs of State Auto Financial. | |
The Class A preferred stock is not entitled to voting rights until, for any period, dividends are in arrears in the amount of six or more quarterly dividends. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||
Share-Based Compensation | |||||||||||||||||||||
The Company maintains share-based compensation plans for key employees and outside, or non-employee, directors. The share-based compensation plan for key employees is the State Auto Financial Corporation 2009 Equity Compensation Plan (the “Equity Plan”). The stock-based compensation plan for outside directors is the Outside Directors Restricted Share Unit Plan (the “RSU Plan”). | |||||||||||||||||||||
The Company’s share-based compensation plans authorize the granting of various equity-based incentives including stock options, restricted stock and restricted share units to employees and non-employee directors and agents. The expense for these equity-based incentives is based on their fair value at the date of grant and amortized over their vesting period. The fair value of each stock option is estimated on the date of grant using the Black-Scholes closed-form pricing model. The pricing model requires assumptions such as the expected life of the option and expected volatility of the Company’s stock over the expected life of the option, which significantly impacts the assumed fair value. The Company uses historical data to determine these assumptions and if these assumptions change significantly for future grants, share-based compensation expense will fluctuate in future periods. | |||||||||||||||||||||
Equity Plan | |||||||||||||||||||||
The Equity Plan provides for the award of qualified and nonqualified stock options, restricted shares, performance shares, performance units and other stock-based awards. The Company has reserved 3.0 million common shares under the Equity Plan. As of December 31, 2013, a total of 1.1 million common shares are available for issuance under the Equity Plan. The Equity Plan provides that (i) no more than 33% of the common shares authorized for issuance under the Equity Plan may be granted in the form of awards other than stock options, (ii) the maximum number of common shares subject to awards of stock options, restricted shares and performance shares that may be granted in any calendar year is equal to 1.5% of the total number of common shares of the Company outstanding as of December 31 of the prior year, and (iii) the maximum number of common shares subject to awards of stock options, restricted shares and performance shares that may be granted in any calendar year to any one individual is 250,000 shares. The Equity Plan automatically terminates on May 8, 2019. | |||||||||||||||||||||
The Equity Plan provides that qualified stock options may be granted at an option price not less than the fair market value of the common shares at the date of grant and that nonqualified stock options may be granted at any price determined by the Compensation Committee of the Board of Directors. Options granted generally vest over a three-year period, with one-third of the options vesting on each anniversary of the grant date, and must be exercised no later than ten years from the date of grant. Stock options granted under the Equity Plan for 2013, 2012 and 2011 were 0.5 million, 0.3 million and 0.6 million, respectively. | |||||||||||||||||||||
The Equity Plan provides for the granting of restricted shares subject to a vesting schedule based on the employee’s continued employment (“Restriction Period”), for which vesting is generally on the third anniversary after the date of grant. The Company recognizes compensation expense based on the number of restricted shares granted at the then grant date fair value over the Restriction Period. | |||||||||||||||||||||
The following table sets forth the status of the Company’s non-vested and vested restricted shares and changes for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Grant | Grant | Grant | |||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||
Value | Value | Value | |||||||||||||||||||
Outstanding, beginning of year | 55,413 | $ | 16.21 | 33,887 | $ | 17.92 | 17,180 | $ | 18.78 | ||||||||||||
Granted | — | — | 21,526 | 13.53 | 16,707 | 17.03 | |||||||||||||||
Vested | (17,180 | ) | 18.78 | — | — | — | — | ||||||||||||||
Outstanding, end of year | 38,233 | $ | 15.06 | 55,413 | $ | 16.21 | 33,887 | $ | 17.92 | ||||||||||||
As of December 31, 2013, there was $0.1 million of total unrecognized compensation cost related to non-vested restricted share compensation arrangements. The remaining cost is expected to be recognized over a period of 1.25 years. | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
The Company also has a broad-based employee stock purchase plan under which employees of the Company may choose at two different specified time intervals each year to have up to 6% of their annual base earnings withheld to purchase the Company’s common shares. The purchase price of the common shares is 85% of the lower of its beginning-of-interval or end-of-interval market price. The Company has reserved 3.4 million common shares under this plan. As of December 31, 2013, a total of 3.1 million common shares have been purchased under this plan. This plan remains in effect until terminated by the Board of Directors. | |||||||||||||||||||||
Outside Directors Plan | |||||||||||||||||||||
The RSU Plan is an unfunded deferred compensation plan which currently provides each outside director with an award of 1,400 restricted share units (the “RSU award”) following each annual meeting of shareholders. The amount of the award may change from year to year, based on the provision described below. The RSU awards are fully vested six months after the date of grant. RSU awards are not common shares of the Company and, as such, no participant has any rights as a holder of common shares under the RSU Plan. RSU awards represent the right to receive an amount, payable in cash or common shares of the Company, as previously elected by the outside director, equal to the value of a specified number of common shares of the Company at the end of the restricted period. Such election may be changed within the constraints set forth in the RSU Plan. The restricted period for the RSU awards begins on the date of grant and expires on the date the outside director retires from or otherwise terminates service as a director of the Company. During the restricted period, outside directors are credited with dividends, equivalent in value to those declared and paid on the Company’s common shares, on all RSU awards granted to them. At the end of the restricted period, outside directors receive distributions of their RSU awards either (i) in a single lump sum payment, or (ii) in annual installment payments over a five- or ten-year period, as previously elected by the outside director. The administrative committee for the RSU Plan (currently the Company’s Compensation Committee) retains the right to increase the annual number of RSU awards granted to each outside director to as many as 5,000 or to decrease such annual number to not less than 500, without seeking shareholder approval, if such increase or decrease is deemed appropriate by the administrative committee to maintain director compensation at appropriate levels. The RSU Plan automatically terminates on May 31, 2015. The Company accounts for the RSU Plan as a liability plan. There were 33,712 RSUs, 26,480 RSUs, and 23,928 RSUs granted in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
During 2013 and 2012, common shares valued at approximately $51,000 and $39,000, respectively, were distributed by the Company under the RSU Plan. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes closed-form pricing model. The following tables present the weighted-average assumptions used in the option pricing model for options granted to employees during 2013, 2012 and 2011. The expected life of the options for employees represents the period of time the options are expected to be outstanding and is based on historical trends. For non-employees the expected life of the option approximates the remaining contractual term of the option. The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life and the expected dividend yield is based on the Company’s most recent period’s dividend payout. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and has a term approximating the expected life of the option. | |||||||||||||||||||||
The fair value of share-based awards granted to employees was estimated at the date of grant using the Black-Scholes option-pricing model. The following table sets forth the weighted average fair values and related assumptions for options granted for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Fair value per share | $ | 5.15 | $ | 3.46 | $ | 4.69 | |||||||||||||||
Expected dividend yield | 2.4 | % | 4.41 | % | 3.51 | % | |||||||||||||||
Risk free interest rate | 1.26 | % | 1.1 | % | 2.5 | % | |||||||||||||||
Expected volatility factor | 37.59 | % | 41.5 | % | 34.9 | % | |||||||||||||||
Expected life in years | 6.3 | 5.4 | 6.3 | ||||||||||||||||||
The following table sets forth the Company’s total stock option activity and related information for these plans for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
(millions, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||||||||||
Options | Weighted- | Options | Weighted- | Options | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding, beginning of year | 3.9 | $ | 22.25 | 3.8 | $ | 22.79 | 3.4 | $ | 23.53 | ||||||||||||
Granted | 0.5 | 16.82 | 0.4 | 13.54 | 0.6 | 16.98 | |||||||||||||||
Exercised | (0.2 | ) | 16.82 | — | 14.49 | — | 16.4 | ||||||||||||||
Canceled | (0.3 | ) | 19.52 | (0.3 | ) | 17.95 | (0.2 | ) | 18.94 | ||||||||||||
Outstanding, end of year | 3.9 | $ | 22.01 | 3.9 | $ | 22.25 | 3.8 | $ | 22.79 | ||||||||||||
Intrinsic value for stock options is defined as the difference between the current market value and the grant price. For the years ended December 31, 2013, 2012 and 2011, the total intrinsic value of stock options exercised was $0.5 million, $0 and $0.1 million, respectively. The tax benefit for tax deductions from share-based awards totaled $0 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
The following table sets forth information pertaining to the total options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||
(Options in millions) | Options Outstanding | Options Exercisable | |||||||||||||||||||
Number | Weighted- | Weighted- | Number | Weighted- | |||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual Life | Price | Price | |||||||||||||||||||
Range of Exercise Prices: | |||||||||||||||||||||
$10.01 – $20.00 | 2.2 | 6.7 | $ | 16.47 | 1.2 | $ | 16.83 | ||||||||||||||
$20.01 – $30.00 | 1 | 2.9 | 27.18 | 1 | 27.27 | ||||||||||||||||
Greater than $30.00 | 0.7 | 1.4 | 32.1 | 0.7 | 32.1 | ||||||||||||||||
3.9 | 4.8 | $ | 22.01 | 2.9 | $ | 24.02 | |||||||||||||||
Aggregate intrinsic value for total options outstanding at December 31, 2013 was $14.0 million. Aggregate intrinsic value for total options exercisable at December 31, 2013 was $5.3 million. | |||||||||||||||||||||
Compensation expense recognized during 2013, 2012 and 2011 was $4.1 million, $3.5 million and $3.2 million, respectively. Share-based compensation is recognized as a component of loss and loss adjustment expense and acquisition and operating expense in a manner consistent with other employee compensation. As of December 31, 2013, there was $2.5 million of total unrecognized compensation cost related to option-based compensation arrangements granted under the plans. The remaining cost is expected to be recognized over a period of three years. |
Net_Earnings_Loss_Per_Common_S
Net Earnings (Loss) Per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Earnings (Loss) Per Common Share | ' | |||||||||||
Net Earnings (Loss) Per Common Share | ||||||||||||
The following table sets forth the compilation of basic and diluted net (loss) earnings per common share for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
(millions, except per share amounts) | 2013 | 2012 | 2011 | |||||||||
Numerator: | ||||||||||||
Net earnings (loss) for basic net earnings per common share | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | |||||
Effect of dilutive share-based awards | — | — | — | |||||||||
Adjusted net earnings (loss) for dilutive net earnings (loss) per common share | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | |||||
Denominator: | ||||||||||||
Weighted average shares for basic net earnings (loss) per common share | 40.6 | 40.4 | 40.1 | |||||||||
Effect of dilutive share-based awards | 0.1 | 0.1 | 0.1 | |||||||||
Adjusted weighted average shares for diluted net earnings (loss) per common share | 40.7 | 40.5 | 40.2 | |||||||||
Basic net earnings (loss) per common share | $ | 1.5 | $ | 0.26 | $ | (4.00 | ) | |||||
Diluted net earnings (loss) per common share | $ | 1.49 | $ | 0.26 | $ | (4.00 | ) | |||||
The following table sets forth the options to purchase shares of common stock and the restricted share units ("RSU award") provided to each outside director of the Company, that were not included in the computation of diluted earnings per common share because the exercise price of the options, or awards, was greater than the average market price or their inclusion would have been antidilutive for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
(millions) | 2013 | 2012 | 2011 | |||||||||
Total number of antidilutive options and awards | 2.6 | 3.7 | 3.3 | |||||||||
Reportable_Segments
Reportable Segments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Reportable Segments | ' | |||||||||||
Reportable Segments | ||||||||||||
The Company has four reportable segments: personal insurance, business insurance, specialty insurance (the “insurance segments”) and investment operations. The insurance segments are business units managed separately because of the differences in the type of customers they serve or products they provide or services they offer. The personal insurance segment provides primarily personal automobile and homeowners to the personal insurance market. The business insurance segment provides primarily commercial automobile, commercial multi-peril, fire & allied and general liability insurance covering small-to-medium sized commercial exposures in the business insurance market. The specialty insurance segment provides commercial coverages, including workers’ compensation, that require specialized product underwriting, claims handling or risk management services through a distribution channel of retail agents and wholesale brokers, which may include program administrators and other specialty sources. The investment operations segment, managed by Stateco, provides investment services. | ||||||||||||
The Company evaluates the performance of its insurance segments using industry financial measurements based on SAP, which include loss and loss adjustment expense ratios, underwriting expense ratios, combined ratios, statutory underwriting gain (loss), net premiums earned and net written premiums. One of the most significant differences between SAP and GAAP is that SAP requires all underwriting expenses to be expensed immediately and not deferred and amortized over the same period the premium is earned. | ||||||||||||
The accounting for pension benefits also contributes to the difference between our GAAP loss and expense ratios and our SAP loss and expense ratios. At January 1, 2013, we adopted new SAP pension guidance, which required the recognition of service costs for non-vested participants. In accordance with GAAP, service costs related to non-vested participants was recognized over the vesting period. | ||||||||||||
The investment operations segment is evaluated based on investment returns of assets managed by Stateco. Asset information by segment is not reported for the insurance segments because the Company does not produce such information internally. | ||||||||||||
As of January 1, 2013 our units within the specialty insurance segment changed from RED, Rockhill and Workers’ Compensation to Excess & Surplus Property, Excess & Surplus Casualty, Programs and Workers’ Compensation. This change did not have any impact on segment reporting. | ||||||||||||
The following table sets forth financial information regarding the Company’s reportable segments for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
($ millions) | 2013 | 2012 | 2011 | |||||||||
Revenues from external sources: | ||||||||||||
Insurance segments | ||||||||||||
Personal insurance | $ | 464 | $ | 469.8 | $ | 800.6 | ||||||
Business insurance | 364.2 | 327.2 | 379 | |||||||||
Specialty insurance | 226.8 | 245.1 | 249.2 | |||||||||
Total insurance segments | 1,055.00 | 1,042.10 | 1,428.80 | |||||||||
Investment operations segment | ||||||||||||
Net investment income | 72.8 | 75.4 | 85.4 | |||||||||
Net realized capital gains | 23.2 | 28.8 | 38.1 | |||||||||
Total investment operations segment | 96 | 104.2 | 123.5 | |||||||||
Total revenue from reportable segments | 1,151.00 | 1,146.30 | 1,552.30 | |||||||||
All other | 2 | 3.8 | 1.4 | |||||||||
Total revenues from external sources | 1,153.00 | 1,150.10 | 1,553.70 | |||||||||
Intersegment revenues | 5.1 | 9.5 | 10.5 | |||||||||
Total revenues | 1,158.10 | 1,159.60 | 1,564.20 | |||||||||
Reconciling items: | ||||||||||||
Eliminate intersegment revenues | (5.1 | ) | (9.5 | ) | (10.5 | ) | ||||||
Total consolidated revenue | $ | 1,153.00 | $ | 1,150.10 | $ | 1,553.70 | ||||||
Segment loss before federal income tax: | ||||||||||||
Insurance segments: | ||||||||||||
Personal insurance SAP underwriting loss | $ | (12.6 | ) | $ | (1.6 | ) | $ | (67.4 | ) | |||
Business insurance SAP underwriting loss | (10.2 | ) | (42.3 | ) | (70.9 | ) | ||||||
Specialty insurance SAP underwriting loss | (11.2 | ) | (48.1 | ) | (46.6 | ) | ||||||
Total insurance segments | (34.0 | ) | (92.0 | ) | (184.9 | ) | ||||||
Investment operations segment: | ||||||||||||
Net investment income | 72.8 | 75.4 | 85.4 | |||||||||
Net realized capital gains | 23.2 | 28.8 | 38.1 | |||||||||
Total investment operations segment | 96 | 104.2 | 123.5 | |||||||||
All other segments income (loss) | 0.9 | 2 | (0.5 | ) | ||||||||
Reconciling items: | ||||||||||||
GAAP adjustments | 11.8 | 7.2 | (40.7 | ) | ||||||||
Interest expense on corporate debt | (8.5 | ) | (7.0 | ) | (7.1 | ) | ||||||
Corporate expenses | (4.9 | ) | (3.8 | ) | (2.4 | ) | ||||||
Total reconciling items | $ | (1.6 | ) | $ | (3.6 | ) | $ | (50.2 | ) | |||
Total consolidated income (loss) before federal income taxes | $ | 61.3 | $ | 10.6 | $ | (112.1 | ) | |||||
The following table sets forth financial information regarding the Company’s reportable segments at December 31, 2013 and 2012: | ||||||||||||
($ millions) | 2013 | 2012 | ||||||||||
Segment assets: | ||||||||||||
Investment operations segment | $ | 2,331.60 | $ | 2,327.40 | ||||||||
Total segment assets | 2,331.60 | 2,327.40 | ||||||||||
Reconciling items: | ||||||||||||
Corporate assets | 164.8 | 150.4 | ||||||||||
Total consolidated assets | $ | 2,496.40 | $ | 2,477.80 | ||||||||
Assets attributed to the investment operations segment include the total investments and cash and cash equivalent categories from the balance sheet. All other assets are corporate assets and are not assigned to a segment. |
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||||
Quarterly Financial Data (unaudited) | ||||||||||||||||
The following tables set forth quarterly financial data for 2013 and 2012: | ||||||||||||||||
($ millions, except per share amounts) | 2013 | |||||||||||||||
For three months ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Total revenues | $ | 285.3 | $ | 285.3 | $ | 292.7 | $ | 289.7 | ||||||||
Income before federal income taxes | 20 | 6.3 | 18.7 | 16.3 | ||||||||||||
Net income | 19.7 | 6.2 | 18.5 | 16.4 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.49 | $ | 0.15 | $ | 0.46 | $ | 0.4 | ||||||||
Diluted | $ | 0.49 | $ | 0.15 | $ | 0.45 | $ | 0.4 | ||||||||
2012 | ||||||||||||||||
For three months ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Total revenues | $ | 280.3 | $ | 286.7 | $ | 286.4 | $ | 296.7 | ||||||||
(Loss) income before federal income taxes | (2.0 | ) | (2.7 | ) | (5.6 | ) | 20.9 | |||||||||
Net (loss) income | (2.0 | ) | (2.7 | ) | (5.5 | ) | 20.9 | |||||||||
Earnings (loss) per common share: | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | 0.52 | |||||
Diluted | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | 0.51 | |||||
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
In accordance with the Contingencies Topic of the FASB's ASC, the Company accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount can be reasonably estimated. The Company reviews all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, the Company cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, the Company does not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. Based on currently available information known to the Company, it believes that its reserves for litigation-related liabilities are reasonable. However, in the event that a legal proceeding results in a substantial judgment against, or settlement by, the Company, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on the financial condition, results of operations or cash flows of the consolidated financial statements of State Auto Financial Corporation. | |
The following describes a pending class action legal proceeding in which the Company is a party: | |
In April 2013, a putative class action lawsuit (Schumacher vs. State Automobile Mutual Insurance Company, et al.) was filed against State Auto Mutual, State Auto Financial and State Auto P&C in Federal District Court in Ohio. Plaintiffs claim that in connection with the homeowners policies of various State Auto companies, the coverage limits and premiums were improperly increased as a result of an insurance to value (“ITV”) program and Plaintiffs allege that they purchased coverage in excess of that which was necessary to insure them in the event of loss. Plaintiffs’ claims include breach of good faith and fair dealing, negligent misrepresentation and fraud, violation of the Ohio Deceptive Trade Practices Act, and fraudulent inducement. Plaintiffs are seeking class certification and compensatory and punitive damages to be determined by the court. The Company intends to deny any and all liability to plaintiffs or the alleged class and to vigorously defend this lawsuit. | |
The Company is also involved in other lawsuits arising in the ordinary course of its business, some of which arise out of, or are related to, our insurance policies and may allege extra contractual damages. These lawsuits are in various stages of development. The Company generally contests these matters vigorously, but may pursue settlement if appropriate. Based on current available information, the Company does not believe it is reasonably possible that any such lawsuit, or related lawsuits, will be material to its results of operations or have a material adverse effect on its consolidated financial or cash flow positions. | |
Additionally, the Company may be impacted by adverse regulatory actions and adverse court decisions where insurance coverages are expanded beyond the scope originally contemplated in its insurance policies. The Company believes that the effects, if any, of such regulatory actions and published court decisions are not likely to have a material adverse effect on its financial or cash flow position. |
SCHEDULE_I_SUMMARY_OF_INVESTME
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | ' | ||||||||||||
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | ' | ||||||||||||
SCHEDULE I – SUMMARY OF INVESTMENTS - OTHER THAN | |||||||||||||
INVESTMENTS IN RELATED PARTIES | |||||||||||||
December 31, 2013 | |||||||||||||
($ millions) | |||||||||||||
31-Dec-13 | Cost or | Fair | Amount at | ||||||||||
amortized | value | which shown | |||||||||||
cost (1) | in the | ||||||||||||
balance sheet | |||||||||||||
Available-for-sale: | |||||||||||||
Fixed maturities: | |||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 345.5 | $ | 352.4 | $ | 352.4 | |||||||
Obligations of states and political subdivisions | 765.3 | 774.2 | 774.2 | ||||||||||
Corporate securities | 345 | 349.7 | 349.7 | ||||||||||
U.S. government agencies residential mortgage-backed securities | 348.2 | 353.8 | 353.8 | ||||||||||
Total fixed maturities | 1,804.00 | 1,830.10 | 1,830.10 | ||||||||||
Equity securities: | |||||||||||||
Large-cap securities | 148.2 | 194.4 | 194.4 | ||||||||||
Small-cap securities | 48.4 | 70.9 | 70.9 | ||||||||||
Total equity securities | 196.6 | 265.3 | 265.3 | ||||||||||
Other invested assets | 49.5 | 80.9 | 80.9 | ||||||||||
Total available-for-sale securities | 2,050.10 | 2,176.30 | 2,176.30 | ||||||||||
Other invested assets | 5 | 5 | 5 | ||||||||||
Total investments – other than investments in related parties | $ | 2,055.10 | $ | 2,181.30 | $ | 2,181.30 | |||||||
-1 | Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts. |
SCHEDULE_II_CONDENSED_FINANCIA
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule Schedule I I Condensed Financial Information Of Registrant Additional Information [Abstract] | ' | ||||||||||||||||||||
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ' | ||||||||||||||||||||
Condensed Balance Sheets | |||||||||||||||||||||
(in millions, except per share amounts) | 31-Dec | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Investments in common stock of subsidiaries (equity method) | $ | 891.1 | $ | 834.9 | |||||||||||||||||
Fixed maturities, available-for-sale, at fair value | 1.6 | 5.9 | |||||||||||||||||||
Equity securities, available-for-sale, at fair value | — | 3.2 | |||||||||||||||||||
Other invested assets | 2.6 | 2.1 | |||||||||||||||||||
Cash and cash equivalents | 6.1 | 7 | |||||||||||||||||||
Other assets | 0.4 | 1.6 | |||||||||||||||||||
Due from affiliates | 1.5 | 1.8 | |||||||||||||||||||
Federal income tax, net | 4.6 | 1.3 | |||||||||||||||||||
Total assets | $ | 907.9 | $ | 857.8 | |||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Notes payable (affiliates $116.8 and $15.5, respectively) | $ | 116.8 | $ | 115.9 | |||||||||||||||||
Other liabilities | 6.1 | 4.7 | |||||||||||||||||||
Total liabilities | 122.9 | 120.6 | |||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||
Class A Preferred stock (nonvoting), without par value. Authorized 2.5 shares; none issued | — | — | |||||||||||||||||||
Class B Preferred stock, without par value. Authorized 2.5 shares; none issued | — | — | |||||||||||||||||||
Common stock, without par value. Authorized 100.0 shares; 47.5 and 47.3 shares issued, respectively, at stated value of $2.50 per share | 118.8 | 118.1 | |||||||||||||||||||
Treasury stock, 6.8 and 6.8 shares, respectively, at cost | (115.9 | ) | (115.8 | ) | |||||||||||||||||
Additional paid-in capital | 137.5 | 131.6 | |||||||||||||||||||
Accumulated other comprehensive income | 80.8 | 84.2 | |||||||||||||||||||
Retained earnings | 563.8 | 519.1 | |||||||||||||||||||
Total stockholders’ equity | 785 | 737.2 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 907.9 | $ | 857.8 | |||||||||||||||||
Condensed Statements of Income | |||||||||||||||||||||
($ millions) | Year ended December 31 | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Net investment income | $ | 0.3 | $ | 0.2 | $ | 0.6 | |||||||||||||||
Net realized gain on investments | 0.7 | 0.4 | 0.7 | ||||||||||||||||||
Total revenues | 1 | 0.6 | 1.3 | ||||||||||||||||||
Interest expense (affiliates $3.2, $0.7 and $0.7, respectively) | 8.8 | 7 | 7.1 | ||||||||||||||||||
Other operating expenses | 6.8 | 5.8 | 4.2 | ||||||||||||||||||
Total expenses | 15.6 | 12.8 | 11.3 | ||||||||||||||||||
Loss before federal income taxes | (14.6 | ) | (12.2 | ) | (10.0 | ) | |||||||||||||||
Federal income tax (benefit) expense | (4.8 | ) | (1.7 | ) | 8.6 | ||||||||||||||||
Net loss before equity in net income (loss) of subsidiaries | (9.8 | ) | (10.5 | ) | (18.6 | ) | |||||||||||||||
Equity in net income (loss) of subsidiaries | 70.6 | 21.2 | (142.1 | ) | |||||||||||||||||
Net income (loss) | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | ||||||||||||||
Condensed Statements of Comprehensive Income (Loss) | |||||||||||||||||||||
($ millions, except per share amounts) | Year ended December 31 | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Net income (loss) | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | ||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||
Net unrealized holding gains on investments: | |||||||||||||||||||||
Unrealized holding gain arising during the year | 0.5 | 0.7 | (0.1 | ) | |||||||||||||||||
Reclassification adjustments for gains realized in net income | (0.7 | ) | (0.4 | ) | (0.7 | ) | |||||||||||||||
Income tax expense | — | — | 0.3 | ||||||||||||||||||
Total net unrealized holding (losses) gains on investments | (0.2 | ) | 0.3 | (0.5 | ) | ||||||||||||||||
Unrealized equity in subsidiaries | (3.2 | ) | 20.1 | 72.2 | |||||||||||||||||
Other comprehensive income | (3.4 | ) | 20.4 | 71.7 | |||||||||||||||||
Comprehensive income (loss) | $ | 57.4 | $ | 31.1 | $ | (89.0 | ) | ||||||||||||||
Condensed Statements of Cash Flows | |||||||||||||||||||||
($ millions) | Year ended December 31 | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income (loss) | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||||||||||
Depreciation and amortization, net | 1.3 | (0.3 | ) | (0.6 | ) | ||||||||||||||||
Share-based compensation | 1.6 | 0.4 | 0.1 | ||||||||||||||||||
Net realized gain on investments | (0.7 | ) | (0.4 | ) | (0.7 | ) | |||||||||||||||
Equity in net (income) loss from consolidated subsidiaries | (70.6 | ) | (21.2 | ) | 142.1 | ||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||
Other liabilities and due from affiliates | 0.1 | 1.5 | 0.4 | ||||||||||||||||||
Other assets | 0.5 | 0.2 | 0.1 | ||||||||||||||||||
Excess tax benefits on share-based awards | 0.1 | — | — | ||||||||||||||||||
Federal income taxes, net | (3.1 | ) | (1.2 | ) | 10.6 | ||||||||||||||||
Net cash used in operating activities | (10.0 | ) | (10.3 | ) | (8.7 | ) | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Dividends received from consolidated subsidiaries | 13.8 | 27 | 6.5 | ||||||||||||||||||
Purchases of equity securities – available-for-sale | — | (3.2 | ) | — | |||||||||||||||||
Purchases of other invested assets | (0.2 | ) | (0.3 | ) | (0.2 | ) | |||||||||||||||
Maturities, calls and pay downs of fixed maturities – available-for-sale | 0.2 | 2.5 | 1 | ||||||||||||||||||
Sales of fixed maturities – available-for-sale | 3.9 | 0.3 | 13.8 | ||||||||||||||||||
Sales of equity securities – available-for-sale | 3.7 | 3.2 | — | ||||||||||||||||||
Sale of subsidiary | — | — | 13.2 | ||||||||||||||||||
Net cash provided by investing activities | 21.4 | 29.5 | 34.3 | ||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Proceeds from issuance of common stock | 4 | 1.6 | 2.6 | ||||||||||||||||||
Payments to acquire treasury stock | (0.1 | ) | — | — | |||||||||||||||||
Payment of dividends | (16.1 | ) | (22.2 | ) | (24.1 | ) | |||||||||||||||
Excess tax benefits on share-based awards | (0.1 | ) | — | — | |||||||||||||||||
Proceeds from long-term debt | 100 | — | — | ||||||||||||||||||
Redemption of long-term debt | (100.0 | ) | — | — | |||||||||||||||||
Net cash used in financing activities | (12.3 | ) | (20.6 | ) | (21.5 | ) | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (0.9 | ) | (1.4 | ) | 4.1 | ||||||||||||||||
Cash and cash equivalents at beginning of year | 7 | 8.4 | 4.3 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 6.1 | $ | 7 | $ | 8.4 | |||||||||||||||
Supplemental Disclosures: | |||||||||||||||||||||
Federal income tax received | $ | 1.5 | $ | 0.4 | $ | 2 | |||||||||||||||
Interest paid (affiliates $3.2, $0.7 and $0.7, respectively) | $ | (8.0 | ) | $ | (7.0 | ) | $ | (7.0 | ) | ||||||||||||
STFC’s investment in subsidiaries is stated at cost plus equity in net income (loss) from consolidated subsidiaries since the date of acquisition. STFC’s share of net income (loss) of its unconsolidated subsidiaries is included in consolidated income (loss) using the equity method. | |||||||||||||||||||||
During 2012, STFC received dividends from Stateco in the amount of $9.2 million in investments. | |||||||||||||||||||||
These financial statements should be read in conjunction with the consolidated financial statements of State Auto Financial Corporation. | |||||||||||||||||||||
On July 11, 2013, STFC entered into two separate credit agreements with two of its subsidiaries, State Auto P&C and Milbank. Under the terms of the credit agreements, STFC borrowed $85.0 million and $15.0 million, from State Auto P&C and Milbank, respectively. Under the terms of each credit agreement, interest is payable semi-annually at a fixed annual interest rate of 5.28%, with the principal due at the maturity date. There are no prepayment penalties and no collateral was given as security for the payment of either of these loans. | |||||||||||||||||||||
Financial Instruments Disclosed, But Not Carried, At Fair Value | |||||||||||||||||||||
Notes Payable | |||||||||||||||||||||
Included in notes payable are the credit agreements described above with State Auto P&C and Milbank. STFC estimates the fair value of each note payable by obtaining market quotations for U.S. treasury securities with similar maturity dates and applies an appropriate credit spread. These have been placed in Level 3 of the fair value hierarchy. | |||||||||||||||||||||
($ millions, except interest rates) | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
Carrying | Fair | Interest | Carrying | Fair | Interest | ||||||||||||||||
value | Value | rate | value | value | rate | ||||||||||||||||
Affiliate note payable with Milbank, issued $15.0, July 2013 with fixed interest | $ | 15 | $ | 14.4 | 5.28 | % | N/A | N/A | N/A | ||||||||||||
Affiliate note payable with State Auto P&C, issued $85.0, July 2013 with fixed interest | 85 | 81.4 | 5.28 | % | N/A | N/A | N/A | ||||||||||||||
Total notes payable to affiliates | $ | 100 | $ | 95.8 | $ | — | $ | — | |||||||||||||
SCHEDULE_III_SUPPLEMENTARY_INS
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Supplementary Insurance Information [Abstract] | ' | ||||||||||||||||||||
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | ' | ||||||||||||||||||||
SCHEDULE III – SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | |||||||||||||||||||||
($ millions) | Deferred | Future | Unearned | Other policy | Premium | ||||||||||||||||
policy | benefits, | premiums | claims and | revenue | |||||||||||||||||
acquisition | claims and | benefits | |||||||||||||||||||
Segment | cost | losses(1) | payable | ||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||||
Personal insurance segment | $ | 31.5 | $ | 223.7 | $ | 189.9 | $ | — | $ | 464 | |||||||||||
Business insurance segment | 38.8 | 359.6 | 193.1 | — | 364.2 | ||||||||||||||||
Specialty insurance segment | 26.5 | 367.5 | 108 | — | 226.8 | ||||||||||||||||
Investment operations segment | — | — | — | — | — | ||||||||||||||||
Total | $ | 96.8 | $ | 950.8 | $ | 491 | $ | — | $ | 1,055.00 | |||||||||||
Year ended December 31, 2012: | |||||||||||||||||||||
Personal insurance segment | $ | 30.1 | $ | 231 | $ | 188.4 | $ | — | $ | 469.8 | |||||||||||
Business insurance segment | 35 | 341.8 | 180.9 | — | 327.2 | ||||||||||||||||
Specialty insurance segment | 26.6 | 355.9 | 112.3 | — | 245.1 | ||||||||||||||||
Investment operations segment | — | — | — | — | — | ||||||||||||||||
Total | $ | 91.7 | $ | 928.7 | $ | 481.6 | $ | — | $ | 1,042.10 | |||||||||||
Year ended December 31, 2011: | |||||||||||||||||||||
Personal insurance segment | $ | 30.5 | $ | 279 | $ | 188.7 | $ | — | $ | 800.6 | |||||||||||
Business insurance segment | 28.5 | 336.9 | 161.3 | — | 379 | ||||||||||||||||
Specialty insurance segment | 32.7 | 265.7 | 120.2 | — | 249.2 | ||||||||||||||||
Investment operations segment | — | — | — | — | — | ||||||||||||||||
Total | $ | 91.7 | $ | 881.6 | $ | 470.2 | $ | — | $ | 1,428.80 | |||||||||||
Segment | Net | Benefits, | Amort. | Other | Premiums | ||||||||||||||||
investment | losses and | of deferred | operating | written | |||||||||||||||||
income | settlement | policy | expenses | ||||||||||||||||||
expenses(2) | acquisition | ||||||||||||||||||||
costs | |||||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||||
Personal insurance segment | $ | — | $ | 342.2 | $ | 74.7 | $ | 55.5 | $ | 465.4 | |||||||||||
Business insurance segment | — | 221.8 | 74.3 | 73.5 | 374.8 | ||||||||||||||||
Specialty insurance segment | — | 158.7 | 60.6 | 16.2 | 221.9 | ||||||||||||||||
Investment operations segment | 72.8 | — | — | — | — | ||||||||||||||||
Total | $ | 72.8 | $ | 722.7 | $ | 209.6 | $ | 145.2 | $ | 1,062.10 | |||||||||||
Year ended December 31, 2012: | |||||||||||||||||||||
Personal insurance segment | $ | — | $ | 344.8 | $ | 76.6 | $ | 46.6 | $ | 469.5 | |||||||||||
Business insurance segment | — | 222.5 | 63.1 | 80.6 | 349.4 | ||||||||||||||||
Specialty insurance segment | — | 211.7 | 73.4 | 5.6 | 236.4 | ||||||||||||||||
Investment operations segment | 75.4 | — | — | — | — | ||||||||||||||||
Total | $ | 75.4 | $ | 779 | $ | 213.1 | $ | 132.8 | $ | 1,055.30 | |||||||||||
Year ended December 31, 2011: | |||||||||||||||||||||
Personal insurance segment | $ | — | $ | 698.9 | $ | 133.4 | $ | 54.7 | $ | 647.4 | |||||||||||
Business insurance segment | — | 296.4 | 67.5 | 103.3 | 341.7 | ||||||||||||||||
Specialty insurance segment | — | 182.4 | 73.5 | 52.6 | 295.5 | ||||||||||||||||
Investment operations segment | 85.4 | — | — | — | — | ||||||||||||||||
Total | $ | 85.4 | $ | 1,177.70 | $ | 274.4 | $ | 210.6 | $ | 1,284.60 | |||||||||||
-1 | Segmented balances are net of reinsurance recoverable on losses and loss expenses payable. | ||||||||||||||||||||
-2 | Benefits, losses and settlement expenses are monitored on a statutory basis. |
SCHEDULE_IV_REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ' | ||||||||||||||||||||||||||||
SCHEDULE IV - REINSURANCE | ' | ||||||||||||||||||||||||||||
SCHEDULE IV – REINSURANCE | |||||||||||||||||||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | |||||||||||||||||||||||||||||
($ million, except percentages) | Ceded to | Assumed from | Percentage | ||||||||||||||||||||||||||
of amount | |||||||||||||||||||||||||||||
assumed | |||||||||||||||||||||||||||||
Gross | Unaffiliated | Affiliated | Unaffiliated | Affiliated | Net | to net (2) | |||||||||||||||||||||||
Amount | Companies | Companies(1) | Companies | Companies(1) | Amount | ||||||||||||||||||||||||
Property-casualty | |||||||||||||||||||||||||||||
earned premiums for | |||||||||||||||||||||||||||||
year ended December 31, | |||||||||||||||||||||||||||||
2013 | $ | 874.7 | $ | 23.5 | $ | 855 | $ | 3.8 | $ | 1,055.00 | $ | 1,055.00 | 0.4 | % | |||||||||||||||
2012 | 833.3 | 28.2 | 809.2 | 4.1 | 1,042.10 | 1,042.10 | 0.4 | % | |||||||||||||||||||||
2011 | 812.1 | 26.7 | 803.6 | 18.2 | 1,428.80 | 1,428.80 | 1.3 | % | |||||||||||||||||||||
-1 | These columns include the effect of intercompany pooling. | ||||||||||||||||||||||||||||
-2 | Calculated as earned premiums assumed from outside companies to net amount. |
SCHEDULE_V_VALUATION_AND_QUALI
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||
SCHEDULE V – VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||
($ millions) | At December 31 | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||
Balance at beginning of period | $ | 100.5 | $ | 103.3 | $ | — | ||||||
Additions | — | — | 103.3 | |||||||||
Deductions | 17.9 | 2.8 | — | |||||||||
Balance at end of period | $ | 82.6 | $ | 100.5 | $ | 103.3 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The consolidated financial statements include State Auto Financial Corporation (“State Auto Financial”), an Ohio corporation, and the following wholly owned subsidiaries of State Auto Financial: | ||
• | State Auto Property and Casualty Insurance Company (“State Auto P&C”), an Iowa corporation | |
• | Milbank Insurance Company (“Milbank”), an Iowa corporation | |
• | State Auto Insurance Company of Ohio (“SA Ohio”), an Ohio corporation | |
• | Stateco Financial Services, Inc. (“Stateco”), an Ohio corporation | |
The consolidated financial statements also include the operations and financial position of 518 Property Management and Leasing, LLC (“518 PML”), an Ohio limited liability company whose only members are State Auto P&C and Stateco. Farmers Casualty Insurance Company ("Farmers"), a former wholly owned subsidiary of State Auto Financial, was merged with State Auto P&C at the close of business on December 31, 2012. | ||
State Auto Financial is a majority-owned subsidiary of State Automobile Mutual Insurance Company (“State Auto Mutual”), an Ohio corporation. State Auto Financial and its subsidiaries are referred to herein as the “Company.” All intercompany balances and transactions have been eliminated in consolidation. | ||
Description of Business | ' | |
Description of Business | ||
The Company markets its insurance products throughout the United States primarily through independent agencies, which include retail agencies and wholesale brokers. The Company’s principal lines of insurance include personal and commercial automobile, homeowners, commercial multi-peril, workers’ compensation, general liability and fire insurance. State Auto P&C, Milbank and SA Ohio are chartered and licensed property and casualty insurers. As such, they are subject to the regulations of the applicable Departments of Insurance of their respective states of domicile (the “Departments”) and the regulations of each state in which they operate. These property and casualty insurance companies undergo periodic financial examination by the Departments and insurance regulatory agencies of the states that choose to participate. A large portion of the Company’s revenues are derived from a reinsurance pooling agreement with State Auto Mutual and its affiliates. The underwriting activity and geographic distribution of State Auto Mutual and its affiliates is generally the same as the underwriting activity and geographic distribution of the Company. | ||
Through the employees of State Auto P&C, the Company provides management and operation services under management agreements for all of its insurance and non-insurance affiliates. | ||
Through Stateco, the Company provides investment management services to affiliated companies. | ||
518 PML owns and leases property to the Company’s affiliates. | ||
Basis of Presentation | ' | |
Basis of Presentation | ||
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which vary in certain respects from statutory accounting practices (“SAP”) followed by State Auto P&C, Milbank and SA Ohio that are prescribed or permitted by the Departments. | ||
The Company's insurance subsidiaries, domiciled in Ohio and Iowa, are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. The Ohio and Iowa Departments of Insurance require insurers domiciled in their respective states to prepare statutory financial statements in accordance with National Association of Insurance Commissioners' ("NAIC") statutory accounting practices. Permitted statutory accounting practices are those practices that differ either from state-prescribed statutory accounting practices or NAIC statutory accounting practices. The Company's insurance subsidiaries do not apply any statutory accounting practices that would be considered a prescribed statutory accounting practice that differs from NAIC statutory accounting practices. | ||
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, revenues and expenses for the periods then ended, and the accompanying notes to the financial statements. Such estimates and assumptions could change in the future as more information becomes known which could impact the amounts reported and disclosed herein. | ||
Material estimates that are particularly susceptible to significant change in the near term relate to the determination of losses and loss expenses payable and the realization of deferred tax assets. In connection with the determination of losses and loss expenses payable, management uses historical data, current business conditions and assumptions about future conditions to formulate estimates of the ultimate cost to settle claims. Deferred tax assets are evaluated periodically by management to determine if they are realizable, requiring management to make certain judgments and assumptions. In evaluating the ability to recover deferred tax assets, management considers all available evidence, including loss carryback potential, past operating results, existence of cumulative losses in the most recent years, projected performance of the business, future taxable income, including the ability to generate capital gains, and prudent and feasible tax planning strategies. If, based on available information, it is more likely than not that the deferred income tax asset will not be realized, then a valuation allowance must be established with a corresponding charge to net income and/or other comprehensive income. These estimates by their nature are subject to uncertainties for various reasons. | ||
Investments | ' | |
Investments | ||
Investments in fixed maturities, equity securities and certain other invested assets are classified as available-for-sale and are carried at fair value. The unrealized holding gains and losses, net of applicable deferred income taxes, are shown as a separate component of stockholders’ equity as a part of accumulated other comprehensive income (loss) and, as such, are not included in the determination of net income (loss). Realized gains and losses on the sales of investments are computed using the first-in, first-out method. | ||
The Company regularly monitors its investments that have fair values less than cost or amortized cost for signs of other-than-temporary impairment, an assessment that requires significant management judgment regarding the evidence known. Such judgments could change in the future as more information becomes known, which could negatively impact the amounts reported. Among the factors that management considers for fixed maturity securities are the financial condition of the issuer including receipt of scheduled principal and interest cash flows, and intent to sell including if it is more likely than not that the Company will be required to sell the investments before recovery. When a fixed maturity security has been determined to have an other-than-temporary impairment, the impairment charge is separated into an amount representing the credit loss, which is recognized in earnings as a realized loss, and the amount related to non-credit factors, which is recognized in other comprehensive income (loss). Future increases or decreases in fair value, if not other-than-temporary, are included in other comprehensive income (loss). | ||
Among the factors that management considers for equity securities and other invested assets are the length of time and/or the significance of decline below cost, the Company’s ability and intent to hold these securities through their recovery periods, the current financial condition of the issuer and its future business prospects, and the ability of the market value to recover to cost in the near term. When an equity security or other invested asset has been determined to have a decline in fair value that is other-than-temporary, the cost basis of the security is adjusted to fair value. This results in a charge to earnings as a realized loss, which is not reversed for subsequent recoveries in fair value. Future increases or decreases in fair value, if not other-than-temporary, are included in other comprehensive income (loss). | ||
Cash Equivalents | ' | |
Cash Equivalents | ||
The Company considers all liquid debt instruments with a maturity of three months or less to be cash equivalents. The carrying amounts reported approximate their fair value. | ||
Deferred Acquisition Costs | ' | |
Deferred Acquisition Costs | ||
Acquisition costs, consisting of commissions, premium taxes and certain underwriting expenses related to the successful acquisition or renewal of property and casualty business, are deferred and amortized over the same period in which the related premiums are earned. The method followed for computing the acquisition costs limits the amount of such deferred costs to their estimated realizable value. In determining estimated realizable value, the computation gives effect to the premium to be earned, losses and loss expenses expected to be incurred, and certain other costs expected to be incurred as premium is earned. Future changes in estimates, the most significant of which is expected losses and loss adjustment expenses, that indicate a reduction in expected future profitability may result in unrecoverable deferred acquisition costs. | ||
Federal Income Taxes | ' | |
Federal Income Taxes | ||
The Company files a consolidated federal income tax return. Pursuant to a written tax sharing agreement, each entity within the consolidated group pays or receives its share of federal income taxes based on separate return calculations. | ||
The Company recognizes deferred income tax assets and liabilities for the expected future tax effects attributable to temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Deferred tax assets and liabilities include provisions for unrealized investment gains and losses as well as the net funded status of pension and other postretirement benefit obligations with the changes for each period included in the respective components of other comprehensive income (loss). Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. | ||
Interest and penalties related to uncertain tax positions are recorded in the balance sheet as other liabilities, and recognized in the income statement as other expenses. | ||
Losses and Loss Expenses Payable | ' | |
Losses and Loss Expenses Payable | ||
Losses and loss expenses payable are based on formula and case-basis estimates for reported claims and on estimates, based on experience and perceived trends, for unreported claims and loss expenses. The liability for unpaid losses and loss expenses, net of estimated salvage and subrogation recoverable of $24.7 million and $25.7 million at December 31, 2013 and 2012, respectively, has been established to cover the estimated ultimate cost to settle insured losses. The amounts are based on estimates of future rates of inflation and other factors, and accordingly, there can be no assurance that the ultimate liability will not vary materially from such estimates. The estimates are continually reviewed and adjusted as necessary; such adjustments are included in current operations (see Note 4). Anticipated salvage and subrogation is estimated using historical experience. As such, losses and loss expenses payable represent management’s best estimate of the ultimate liability related to reported and unreported claims. | ||
Premiums | ' | |
Premiums | ||
Premiums are recognized as earned prorata over the policy period. Unearned premiums represent the portion of premiums written relative to the unexpired terms of coverage. | ||
Comprehensive Income (Loss) | ' | |
Comprehensive Income (Loss) | ||
Comprehensive income (loss) is defined as all changes in an enterprise’s equity during a period other than those resulting from investments by owners and distributions to owners. Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes all other non-owner related changes to equity and includes net unrealized gains and losses on available-for-sale investments, derivative instruments and unrecognized benefit plan obligations, adjusted for deferred federal income taxes. | ||
New Accounting Standards | ' | |
New Accounting Standards | ||
Adoption of Recent Accounting Pronouncements | ||
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | ||
The amendments in this guidance result in additional disclosure requirements under GAAP and do not change the current requirements for reporting net income or other comprehensive income in financial statements. The new guidance requires an entity to present, either in a single note, or, parenthetically on the face of the statement where net income is presented, the effects of significant amounts reclassified from each component of accumulated other comprehensive income by the respective line items of net income, only, if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. If a component is not required to be reclassified to net income in its entirety, the entity would, instead, cross-reference it to the related disclosure required under GAAP. This guidance was effective prospectively for fiscal years and interim periods beginning after December 15, 2012. The Company adopted this guidance at January 1, 2013, and it did not have a material impact on the consolidated financial statements, see Note 10 - Other Comprehensive Income and Accumulated Other Comprehensive Income. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Net Deferred Acquisition Costs | ' | ||||||||||||
The following table sets forth net deferred acquisition costs for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||
Balance, beginning of year | $ | 91.7 | $ | 91.7 | $ | 118.5 | |||||||
Effect of January 1, 2011 pooling change | — | — | 8.3 | ||||||||||
Acquisition costs deferred | 214.6 | 213.1 | 266.6 | ||||||||||
Acquisition costs amortized to expense | (209.5 | ) | (213.1 | ) | (274.4 | ) | |||||||
Effect of December 31, 2011 pooling change | — | — | (27.3 | ) | |||||||||
Balance, end of year | $ | 96.8 | $ | 91.7 | $ | 91.7 | |||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||||||||||||
Cost or Amortized Cost and Fair Value of Available-for-Sale Securities | ' | ||||||||||||||||||||||||||||||||
The following tables set forth the cost or amortized cost and fair value of available-for-sale securities by lot at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
31-Dec-13 | Cost or | Gross | Gross | Fair | |||||||||||||||||||||||||||||
amortized | unrealized | unrealized | value | ||||||||||||||||||||||||||||||
cost | holding | holding | |||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 345.5 | $ | 13.4 | $ | (6.5 | ) | $ | 352.4 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 765.3 | 25.8 | (16.9 | ) | 774.2 | ||||||||||||||||||||||||||||
Corporate securities | 345 | 11.4 | (6.7 | ) | 349.7 | ||||||||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 348.2 | 9.7 | (4.1 | ) | 353.8 | ||||||||||||||||||||||||||||
Total fixed maturities | 1,804.00 | 60.3 | (34.2 | ) | 1,830.10 | ||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Large-cap securities | 148.2 | 46.5 | (0.3 | ) | 194.4 | ||||||||||||||||||||||||||||
Small-cap securities | 48.4 | 22.5 | — | 70.9 | |||||||||||||||||||||||||||||
Total equity securities | 196.6 | 69 | (0.3 | ) | 265.3 | ||||||||||||||||||||||||||||
Other invested assets | 49.5 | 31.4 | — | 80.9 | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,050.10 | $ | 160.7 | $ | (34.5 | ) | $ | 2,176.30 | ||||||||||||||||||||||||
31-Dec-12 | Cost or | Gross | Gross | Fair | |||||||||||||||||||||||||||||
amortized | unrealized | unrealized | value | ||||||||||||||||||||||||||||||
cost | holding | holding | |||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 328.2 | $ | 38.3 | $ | — | $ | 366.5 | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 750.4 | 50.3 | (0.4 | ) | 800.3 | ||||||||||||||||||||||||||||
Corporate securities | 320.5 | 19.2 | (1.1 | ) | 338.6 | ||||||||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 377.1 | 24 | (1.4 | ) | 399.7 | ||||||||||||||||||||||||||||
Total fixed maturities | 1,776.20 | 131.8 | (2.9 | ) | 1,905.10 | ||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Large-cap securities | 152.6 | 25 | (3.4 | ) | 174.2 | ||||||||||||||||||||||||||||
Small-cap securities | 43.6 | 10.6 | — | 54.2 | |||||||||||||||||||||||||||||
Total equity securities | 196.2 | 35.6 | (3.4 | ) | 228.4 | ||||||||||||||||||||||||||||
Other invested assets | 49 | 15.4 | — | 64.4 | |||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,021.40 | $ | 182.8 | $ | (6.3 | ) | $ | 2,197.90 | ||||||||||||||||||||||||
Gross Unrealized Losses and Fair Value on its Investments | ' | ||||||||||||||||||||||||||||||||
The following tables set forth the Company’s gross unrealized losses and fair value on its investments by lot, aggregated by investment category and length of time for individual securities that have been in a continuous unrealized loss position at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
31-Dec-13 | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | ||||||||||||||||||||||||
value | losses | of | value | losses | of | value | losses | of | |||||||||||||||||||||||||
positions | positions | positions | |||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 109.6 | $ | (6.5 | ) | 29 | $ | — | $ | — | — | $ | 109.6 | $ | (6.5 | ) | 29 | ||||||||||||||||
Obligations of states and political subdivisions | 206.4 | (14.7 | ) | 76 | 25.6 | (2.2 | ) | 7 | 232 | (16.9 | ) | 83 | |||||||||||||||||||||
Corporate securities | 105.6 | (3.2 | ) | 22 | 40.9 | (3.5 | ) | 8 | 146.5 | (6.7 | ) | 30 | |||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 103.6 | (3.3 | ) | 25 | 19.3 | (0.8 | ) | 10 | 122.9 | (4.1 | ) | 35 | |||||||||||||||||||||
Total fixed maturities | 525.2 | (27.7 | ) | 152 | 85.8 | (6.5 | ) | 25 | 611 | (34.2 | ) | 177 | |||||||||||||||||||||
Large-cap equity securities | 5.3 | (0.3 | ) | 2 | — | — | — | 5.3 | (0.3 | ) | 2 | ||||||||||||||||||||||
Total temporarily impaired securities | $ | 530.5 | $ | (28.0 | ) | 154 | $ | 85.8 | $ | (6.5 | ) | 25 | $ | 616.3 | $ | (34.5 | ) | 179 | |||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
31-Dec-12 | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | ||||||||||||||||||||||||
value | losses | of | value | losses | of | value | losses | of | |||||||||||||||||||||||||
positions | positions | positions | |||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 7 | $ | — | 2 | $ | — | $ | — | — | $ | 7 | $ | — | 2 | ||||||||||||||||||
Obligations of states and political subdivisions | 47.4 | (0.4 | ) | 12 | — | — | — | 47.4 | (0.4 | ) | 12 | ||||||||||||||||||||||
Corporate securities | 80.4 | (1.1 | ) | 17 | — | — | — | 80.4 | (1.1 | ) | 17 | ||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 23.3 | (0.3 | ) | 6 | 34.8 | (1.1 | ) | 13 | 58.1 | (1.4 | ) | 19 | |||||||||||||||||||||
Total fixed maturities | 158.1 | (1.8 | ) | 37 | 34.8 | (1.1 | ) | 13 | 192.9 | (2.9 | ) | 50 | |||||||||||||||||||||
Large-cap equity securities | 23.7 | (2.1 | ) | 4 | 8.9 | (1.3 | ) | 5 | 32.6 | (3.4 | ) | 9 | |||||||||||||||||||||
Total temporarily impaired securities | $ | 181.8 | $ | (3.9 | ) | 41 | $ | 43.7 | $ | (2.4 | ) | 18 | $ | 225.5 | $ | (6.3 | ) | 59 | |||||||||||||||
Realized Losses Related to Other-Than-Temporary Impairments | ' | ||||||||||||||||||||||||||||||||
The following table sets forth the realized losses related to other-than-temporary impairments on the Company’s investment portfolio recognized for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Large-cap securities | $ | (1.8 | ) | $ | — | $ | (1.0 | ) | |||||||||||||||||||||||||
Small-cap securities | (2.2 | ) | (3.2 | ) | (5.6 | ) | |||||||||||||||||||||||||||
Fixed maturities | — | (0.2 | ) | — | |||||||||||||||||||||||||||||
Total other-than-temporary impairments | $ | (4.0 | ) | $ | (3.4 | ) | $ | (6.6 | ) | ||||||||||||||||||||||||
Amortized Cost and Fair Value of Available-for-Sale Fixed Maturities by Contractual Maturity | ' | ||||||||||||||||||||||||||||||||
The following table sets forth the amortized cost and fair value of available-for-sale fixed maturities by contractual maturity at December 31, 2013: | |||||||||||||||||||||||||||||||||
($ millions) | Amortized | Fair | |||||||||||||||||||||||||||||||
cost | value | ||||||||||||||||||||||||||||||||
Due in 1 year or less | $ | 49.1 | $ | 49.6 | |||||||||||||||||||||||||||||
Due after 1 year through 5 years | 391.4 | 407.2 | |||||||||||||||||||||||||||||||
Due after 5 years through 10 years | 394.1 | 409.8 | |||||||||||||||||||||||||||||||
Due after 10 years | 621.2 | 609.7 | |||||||||||||||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 348.2 | 353.8 | |||||||||||||||||||||||||||||||
Total | $ | 1,804.00 | $ | 1,830.10 | |||||||||||||||||||||||||||||
Components of Net Investment Income | ' | ||||||||||||||||||||||||||||||||
The following table sets forth the components of net investment income for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Fixed maturities | $ | 63.2 | $ | 66.9 | $ | 77 | |||||||||||||||||||||||||||
Equity securities | 6 | 4.9 | 4.9 | ||||||||||||||||||||||||||||||
Cash and cash equivalents, and other | 5.7 | 5.6 | 5.7 | ||||||||||||||||||||||||||||||
Investment income | 74.9 | 77.4 | 87.6 | ||||||||||||||||||||||||||||||
Investment expenses | 2.1 | 2 | 2.2 | ||||||||||||||||||||||||||||||
Net investment income | $ | 72.8 | $ | 75.4 | $ | 85.4 | |||||||||||||||||||||||||||
Realized and Unrealized Holding Gains (Losses) | ' | ||||||||||||||||||||||||||||||||
The following table sets forth the realized and unrealized holding gains (losses) on the Company’s investment portfolio for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Realized gains: | |||||||||||||||||||||||||||||||||
Fixed maturities | $ | 2.5 | $ | 15.7 | $ | 4.4 | |||||||||||||||||||||||||||
Equity securities | 26.1 | 19 | 41.7 | ||||||||||||||||||||||||||||||
Other invested assets | 0.1 | 0.1 | 3.9 | ||||||||||||||||||||||||||||||
Total realized gains | 28.7 | 34.8 | 50 | ||||||||||||||||||||||||||||||
Realized losses: | |||||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Sales | (1.2 | ) | (2.6 | ) | (5.3 | ) | |||||||||||||||||||||||||||
OTTI | (4.0 | ) | (3.2 | ) | (6.6 | ) | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||
Sales | (0.3 | ) | — | — | |||||||||||||||||||||||||||||
OTTI | — | (0.2 | ) | — | |||||||||||||||||||||||||||||
Total realized losses | (5.5 | ) | (6.0 | ) | (11.9 | ) | |||||||||||||||||||||||||||
Net realized gains on investments | $ | 23.2 | $ | 28.8 | $ | 38.1 | |||||||||||||||||||||||||||
Change in unrealized holding (losses) gains, net of tax: | |||||||||||||||||||||||||||||||||
Fixed maturities | $ | (102.8 | ) | $ | 11.3 | $ | 79.2 | ||||||||||||||||||||||||||
Equity securities | 36.5 | 6.6 | (30.4 | ) | |||||||||||||||||||||||||||||
Other invested assets | 16 | 6.8 | (6.7 | ) | |||||||||||||||||||||||||||||
Deferred federal income tax liability | 17.6 | (8.6 | ) | (14.7 | ) | ||||||||||||||||||||||||||||
Valuation allowance | (6.7 | ) | 9.2 | — | |||||||||||||||||||||||||||||
Change in net unrealized holding (losses) gains, net of tax | $ | (39.4 | ) | $ | 25.3 | $ | 27.4 | ||||||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||
Company's Available-for-Sale Investments within Fair Value Hierarchy | ' | |||||||||||||||||||||
The following tables set forth the Company’s available-for-sale investments within the fair value hierarchy at December 31, 2013 and 2012: | ||||||||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||
31-Dec-13 | (Level 1) | |||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 352.4 | $ | — | $ | 352.4 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 774.2 | — | 774.2 | — | ||||||||||||||||||
Corporate securities | 349.7 | — | 340.8 | 8.9 | ||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 353.8 | — | 353.8 | — | ||||||||||||||||||
Total fixed maturities | 1,830.10 | — | 1,821.20 | 8.9 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||
Large-cap securities | 194.4 | 194.4 | — | — | ||||||||||||||||||
Small-cap securities | 70.9 | 70.9 | — | — | ||||||||||||||||||
Total equity securities | 265.3 | 265.3 | — | — | ||||||||||||||||||
Other invested assets | 80.9 | 6.7 | 74.2 | — | ||||||||||||||||||
Total available-for-sale investments | $ | 2,176.30 | $ | 272 | $ | 1,895.40 | $ | 8.9 | ||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||
31-Dec-12 | (Level 1) | |||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 366.5 | $ | — | $ | 366.5 | $ | — | ||||||||||||||
Obligations of states and political subdivisions | 800.3 | — | 800.3 | — | ||||||||||||||||||
Corporate securities | 338.6 | — | 330.1 | 8.5 | ||||||||||||||||||
U.S. government agencies residential mortgage-backed securities | 399.7 | — | 399.7 | — | ||||||||||||||||||
Total fixed maturities | 1,905.10 | — | 1,896.60 | 8.5 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||
Large-cap securities | 174.2 | 174.2 | — | — | ||||||||||||||||||
Small-cap securities | 54.2 | 54.2 | — | — | ||||||||||||||||||
Total equity securities | 228.4 | 228.4 | — | — | ||||||||||||||||||
Other invested assets | 64.4 | 5.4 | 59 | — | ||||||||||||||||||
Total available-for-sale investments | $ | 2,197.90 | $ | 233.8 | $ | 1,955.60 | $ | 8.5 | ||||||||||||||
Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | |||||||||||||||||||||
For assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following tables set forth a reconciliation of the beginning and ending balances for 2013 and 2012, separately for each major category of assets: | ||||||||||||||||||||||
($ millions) | Fixed | |||||||||||||||||||||
maturities | ||||||||||||||||||||||
Balance at January 1, 2013 | $ | 8.5 | ||||||||||||||||||||
Total realized gains (losses)—included in earnings | — | |||||||||||||||||||||
Total unrealized gains (losses)—included in other comprehensive income | 0.2 | |||||||||||||||||||||
Purchases | 0.2 | |||||||||||||||||||||
Sales | — | |||||||||||||||||||||
Transfers into Level 3 | — | |||||||||||||||||||||
Transfers out of Level 3 | — | |||||||||||||||||||||
Balance at December 31, 2013 | $ | 8.9 | ||||||||||||||||||||
($ millions) | Fixed | |||||||||||||||||||||
maturities | ||||||||||||||||||||||
Balance at January 1, 2012 | $ | 2.9 | ||||||||||||||||||||
Total realized gains (losses)—included in earnings | (0.2 | ) | ||||||||||||||||||||
Total unrealized gains (losses)—included in other comprehensive income | — | |||||||||||||||||||||
Purchases | 5.8 | |||||||||||||||||||||
Sales | — | |||||||||||||||||||||
Transfers into Level 3 | — | |||||||||||||||||||||
Transfers out of Level 3 | — | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 8.5 | ||||||||||||||||||||
Company Estimates Receivable from Affiliate using Market Quotations for U.S. Treasury Securities | ' | |||||||||||||||||||||
The Company estimates the fair value of the notes receivable from affiliate using market quotations for U.S. treasury securities with similar maturity dates and applies an appropriate credit spread. This has been placed in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||
($ millions, except interest rates) | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Carrying | Fair | Interest | Carrying | Fair | Interest | |||||||||||||||||
value | value | rate | value | value | rate | |||||||||||||||||
Notes receivable from affiliate | $ | 70 | $ | 74.6 | 7 | % | $ | 70 | $ | 78.3 | 7 | % | ||||||||||
Included in Notes Payable are Senior Notes and Subordinated Debentures | ' | |||||||||||||||||||||
The carrying amount of the Subordinated Debentures approximates its fair value as the interest rate adjusts quarterly and has been disclosed in Level 3. | ||||||||||||||||||||||
($ millions, except interest rates) | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Carrying | Fair | Interest | Carrying | Fair | Interest | |||||||||||||||||
value | Value | rate | value | value | rate | |||||||||||||||||
FHLB Loan due 2033:, issued $85.0, July 2013 with fixed interest | $ | 85.3 | $ | 85.7 | 5.03 | % | N/A | N/A | N/A | |||||||||||||
Senior Notes due 2013: issued $100.0, November 2003 with fixed interest | N/A | N/A | N/A | $ | 100.4 | $ | 100.3 | 6.25 | % | |||||||||||||
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest | 15.5 | 15.5 | 4.44 | % | 15.5 | 15.5 | 4.51 | |||||||||||||||
Total notes payable | $ | 100.8 | $ | 101.2 | $ | 115.9 | $ | 115.8 | ||||||||||||||
Company's Assets and Liabilities within Fair Value Hierarchy | ' | |||||||||||||||||||||
The carrying amount of the Subordinated Debentures approximates its fair value as the interest rate adjusts quarterly and has been disclosed in Level 3. | ||||||||||||||||||||||
($ millions, except interest rates) | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Carrying | Fair | Interest | Carrying | Fair | Interest | |||||||||||||||||
value | Value | rate | value | value | rate | |||||||||||||||||
FHLB Loan due 2033:, issued $85.0, July 2013 with fixed interest | $ | 85.3 | $ | 85.7 | 5.03 | % | N/A | N/A | N/A | |||||||||||||
Senior Notes due 2013: issued $100.0, November 2003 with fixed interest | N/A | N/A | N/A | $ | 100.4 | $ | 100.3 | 6.25 | % | |||||||||||||
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest | 15.5 | 15.5 | 4.44 | % | 15.5 | 15.5 | 4.51 | |||||||||||||||
Total notes payable | $ | 100.8 | $ | 101.2 | $ | 115.9 | $ | 115.8 | ||||||||||||||
Losses_and_Loss_Expenses_Payab1
Losses and Loss Expenses Payable (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Insurance [Abstract] | ' | |||||||||||
Schedule of Activity in Liability for Losses and Loss Expenses | ' | |||||||||||
The following table sets forth the activity in the liability for losses and loss expenses for the years ended December 31: | ||||||||||||
($ millions) | 2013 | 2012 | 2011 | |||||||||
Losses and loss expenses payable, at beginning of year | $ | 942.2 | $ | 907.1 | $ | 893 | ||||||
Less: reinsurance recoverable on losses and loss expenses payable | 13.5 | 25.5 | 18.8 | |||||||||
Net balance at beginning of year | 928.7 | 881.6 | 874.2 | |||||||||
Impact of pooling change, January 1, 2011 (Note 6a) | — | — | 124.1 | |||||||||
Incurred related to: | ||||||||||||
Current year | 741 | 795.2 | 1,213.30 | |||||||||
Prior years | (21.2 | ) | (16.9 | ) | (33.3 | ) | ||||||
Total incurred | 719.8 | 778.3 | 1,180.00 | |||||||||
Paid related to: | ||||||||||||
Current year | 355 | 397.2 | 724.2 | |||||||||
Prior years | 342.7 | 334 | 369.1 | |||||||||
Total paid | 697.7 | 731.2 | 1,093.30 | |||||||||
Impact of pooling change, December 31, 2011 (Note 6a) | — | — | (203.4 | ) | ||||||||
Net balance at end of year | 950.8 | 928.7 | 881.6 | |||||||||
Plus: reinsurance recoverable on losses and loss expenses payable | 9.1 | 13.5 | 25.5 | |||||||||
Losses and loss expenses payable, at end of year (affiliates $438.0, $435.1 and $376.8, respectively) | $ | 959.9 | $ | 942.2 | $ | 907.1 | ||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Reinsurance Disclosures [Abstract] | ' | ||||||||||||
External Reinsurance on Balance Sheets | ' | ||||||||||||
The following table sets forth the effect of the Company’s external reinsurance on its balance sheets at December 31, 2013 and 2012, prior to the reinsurance transaction with State Auto Mutual under the Pooling Arrangement, as discussed in Note 6a: | |||||||||||||
($ millions) | 2013 | 2012 | |||||||||||
Losses and loss expenses payable: | |||||||||||||
Direct | $ | 516.9 | $ | 499.4 | |||||||||
Assumed | 5 | 7.7 | |||||||||||
Ceded | (9.1 | ) | (13.5 | ) | |||||||||
Net losses and loss expenses payable | $ | 512.8 | $ | 493.6 | |||||||||
Unearned premiums: | |||||||||||||
Direct | $ | 411.6 | $ | 398.7 | |||||||||
Assumed | 1 | 1 | |||||||||||
Ceded | (4.7 | ) | (3.9 | ) | |||||||||
Net unearned premiums | $ | 407.9 | $ | 395.8 | |||||||||
External Reinsurance on Income Statements | ' | ||||||||||||
The following table sets forth the effect of the Company’s external reinsurance on its income statements for the years ended December 31, 2013, 2012 and 2011, prior to the reinsurance transaction with State Auto Mutual under the Pooling Arrangement, as discussed in Note 6a: | |||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||
Written premiums: | |||||||||||||
Direct | $ | 886.7 | $ | 860.1 | $ | 814.4 | |||||||
Assumed | 3.9 | 4 | 8.7 | ||||||||||
Ceded | (24.3 | ) | (24.3 | ) | (26.9 | ) | |||||||
Net written premiums | $ | 866.3 | $ | 839.8 | $ | 796.2 | |||||||
Earned premiums: | |||||||||||||
Direct | $ | 874.7 | $ | 833.3 | $ | 812.1 | |||||||
Assumed | 3.8 | 4.1 | 18.2 | ||||||||||
Ceded | (23.5 | ) | (28.2 | ) | (26.7 | ) | |||||||
Net earned premiums | $ | 855 | $ | 809.2 | $ | 803.6 | |||||||
Losses and loss expenses incurred: | |||||||||||||
Direct | $ | 559 | $ | 578.5 | $ | 716.2 | |||||||
Assumed | 3 | 3.6 | 12.6 | ||||||||||
Ceded | (4.8 | ) | (6.4 | ) | (25.8 | ) | |||||||
Net losses and loss expenses incurred (1) | $ | 557.2 | $ | 575.7 | $ | 703 | |||||||
-1 | Includes adjustments for accounting differences between SAP and GAAP of $3.0 million, $0.8 million and $2.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Transactions_with_Affiliates_T
Transactions with Affiliates (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Schedule of Reinsurance Transactions on Balance Sheets for Pooling Arrangement | ' | ||||||||||||
The following table sets forth the reinsurance transactions on the Company’s balance sheets for the Pooling Arrangement between the STFC Pooled Companies and State Auto Mutual at December 31, 2013 and 2012: | |||||||||||||
($ millions) | 2013 | 2012 | |||||||||||
Losses and loss expenses payable: | |||||||||||||
Ceded | $ | (512.8 | ) | $ | (493.6 | ) | |||||||
Assumed | 950.8 | 928.7 | |||||||||||
Net assumed | $ | 438 | $ | 435.1 | |||||||||
Unearned premiums: | |||||||||||||
Ceded | $ | (407.9 | ) | $ | (395.8 | ) | |||||||
Assumed | 486.3 | 477.7 | |||||||||||
Net assumed | $ | 78.4 | $ | 81.9 | |||||||||
Schedule of Reinsurance Transactions on Income Statements for Pooling Arrangement | ' | ||||||||||||
The following table sets forth the reinsurance transactions on the Company’s income statements for the Pooling Arrangement between the STFC Pooled Companies and State Auto Mutual for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||
Written premiums: | |||||||||||||
Ceded | $ | (866.3 | ) | $ | (839.9 | ) | $ | (796.2 | ) | ||||
Assumed | 1,062.10 | 1,055.30 | 1,284.60 | ||||||||||
Earned premiums: | |||||||||||||
Ceded | $ | (855.0 | ) | $ | (809.2 | ) | $ | (803.6 | ) | ||||
Assumed | 1,055.00 | 1,042.10 | 1,428.80 | ||||||||||
Losses and loss expenses incurred: | |||||||||||||
Ceded (1) | $ | 557.2 | $ | (575.7 | ) | $ | (703.0 | ) | |||||
Assumed (1) | 719.8 | 778.3 | 1,180.00 | ||||||||||
-1 | Includes adjustments for accounting differences between SAP and GAAP of $3.0 million, $0.8 million and $2.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Reconciliation Between Actual Federal Income Tax Expense (Benefit) and Amount Computed at Indicated Statutory Rate | ' | ||||||||||||||||||||
The following table sets forth the reconciliation between actual federal income tax expense (benefit) and the amount computed at the indicated statutory rate for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
($ millions) | 2013 | 2012 | 2011 | ||||||||||||||||||
Amount at statutory rate | $ | 21.5 | 35 | % | $ | 3.7 | 35 | % | $ | (39.2 | ) | 35 | % | ||||||||
Tax-exempt interest and dividends received deduction | (9.4 | ) | (15.0 | ) | (9.1 | ) | (85.0 | ) | (10.8 | ) | 10 | ||||||||||
Other, net | 0.2 | — | 0.5 | 4 | (4.7 | ) | 4 | ||||||||||||||
Valuation allowance | (11.8 | ) | (19.0 | ) | 4.8 | 45 | 103.3 | (92.0 | ) | ||||||||||||
Federal income tax expense (benefit) and effective rate | $ | 0.5 | 1 | % | $ | (0.1 | ) | (1.0 | )% | $ | 48.6 | (43.0 | )% | ||||||||
Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities | ' | ||||||||||||||||||||
The following table sets forth the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012: | |||||||||||||||||||||
($ millions) | 2013 | 2012 | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Unearned premiums not currently deductible | $ | 33.8 | $ | 33.4 | |||||||||||||||||
Losses and loss expenses payable discounting | 21.6 | 25.2 | |||||||||||||||||||
Postretirement and pension benefits | 24.9 | 39.4 | |||||||||||||||||||
Realized loss on other-than-temporary impairment | 7.5 | 7.5 | |||||||||||||||||||
Other liabilities | 17.3 | 14.5 | |||||||||||||||||||
Net operating loss carryforward | 56.5 | 66.5 | |||||||||||||||||||
Tax credit carryforward | 1.7 | 0.9 | |||||||||||||||||||
Other | 9.2 | 7.9 | |||||||||||||||||||
Total deferred tax assets | 172.5 | 195.3 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Deferral of policy acquisition costs | 33.9 | 32.1 | |||||||||||||||||||
Net unrealized holding gains on investments | 44.1 | 61.7 | |||||||||||||||||||
Total deferred tax liabilities | 78 | 93.8 | |||||||||||||||||||
Total net deferred tax assets before valuation allowance | 94.5 | 101.5 | |||||||||||||||||||
Less valuation allowance | 82.6 | 100.5 | |||||||||||||||||||
Net deferred federal income taxes | $ | 11.9 | $ | 1 | |||||||||||||||||
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of Pension and Postretirement Benefit Plans' Change in Benefit Obligation, Plan Assets and Funded Status | ' | |||||||||||||||||||||||
The following table sets forth information regarding the pension and postretirement benefit plans’ change in benefit obligation, plan assets and funded status at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | Pension | Postretirement | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 246.1 | $ | 229.6 | $ | 25.1 | $ | 27.1 | ||||||||||||||||
Service cost | 6.1 | 7.8 | — | — | ||||||||||||||||||||
Interest cost | 9.6 | 9.9 | 1 | 1.1 | ||||||||||||||||||||
Actuarial (gain) loss | (19.6 | ) | 10.6 | (2.6 | ) | (1.6 | ) | |||||||||||||||||
Benefits paid | (11.7 | ) | (11.8 | ) | (1.2 | ) | (1.5 | ) | ||||||||||||||||
The Company’s portion of benefit obligation at end of year | $ | 230.5 | $ | 246.1 | $ | 22.3 | $ | 25.1 | ||||||||||||||||
Change in plan assets available for plan benefits: | ||||||||||||||||||||||||
Fair value of plan assets available for plan benefits at beginning of year | $ | 162.2 | 147.7 | $ | 1.8 | 1.8 | ||||||||||||||||||
Employer contribution | 13 | 13 | — | — | ||||||||||||||||||||
Actual return on plan assets | 22.4 | 13.3 | 0.3 | — | ||||||||||||||||||||
Benefits paid | (11.7 | ) | (11.8 | ) | (0.8 | ) | — | |||||||||||||||||
The Company’s portion of fair value of plan assets at end of year | $ | 185.9 | $ | 162.2 | $ | 1.3 | $ | 1.8 | ||||||||||||||||
Supplemental executive retirement plan | (6.0 | ) | (5.8 | ) | — | — | ||||||||||||||||||
Funded status at end of year | $ | (50.6 | ) | $ | (89.7 | ) | $ | (21.0 | ) | $ | (23.3 | ) | ||||||||||||
Accumulated benefit obligation end of year | $ | 211.2 | $ | 223 | ||||||||||||||||||||
Company's Share of Amounts Included in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The following table sets forth the Company’s share of the amounts included in accumulated other comprehensive income (loss) that have not been recognized in net periodic cost at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | 2013 | 2012 | ||||||||||||||||||||||
Prior service benefit | $ | (70.3 | ) | $ | (75.6 | ) | ||||||||||||||||||
Net actuarial loss | 94.3 | 135.7 | ||||||||||||||||||||||
Total | $ | 24 | $ | 60.1 | ||||||||||||||||||||
Company's Share of Amortization Expected to be Recognized | ' | |||||||||||||||||||||||
The following table sets forth the Company’s share of amortization expected to be recognized for the year ending December 31, 2014: | ||||||||||||||||||||||||
($ millions) | 2014 | |||||||||||||||||||||||
Prior service benefit | $ | (7.8 | ) | |||||||||||||||||||||
Net actuarial loss | 6.3 | |||||||||||||||||||||||
Total | $ | (1.5 | ) | |||||||||||||||||||||
Company's Share of Net Periodic Cost Components | ' | |||||||||||||||||||||||
The following table sets forth information regarding the Company’s share of pension and postretirement benefit plans’ components of net periodic cost for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
($ millions) | Pension | Postretirement | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic cost: | ||||||||||||||||||||||||
Service cost | $ | 6.1 | $ | 7.8 | $ | 8.5 | $ | 0.4 | $ | — | $ | 4.1 | ||||||||||||
Interest cost | 9.6 | 9.9 | 12.3 | 1.2 | 1.1 | 5.1 | ||||||||||||||||||
Expected return on plan assets | (12.2 | ) | (11.7 | ) | (14.6 | ) | (0.2 | ) | (0.1 | ) | (0.2 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Prior service cost (benefit) | — | 0.3 | 0.3 | (5.5 | ) | (5.5 | ) | (2.1 | ) | |||||||||||||||
Net actuarial loss | 8.1 | 6.7 | 7 | 1 | 1.1 | 0.3 | ||||||||||||||||||
Net periodic cost (benefit) | $ | 11.6 | $ | 13 | $ | 13.5 | $ | (3.1 | ) | $ | (3.4 | ) | $ | 7.2 | ||||||||||
Company's Share of Expected Future Benefits Payments Schedule | ' | |||||||||||||||||||||||
The following table sets forth the Company’s share of the benefit payments, which reflect expected future service, expected to be paid: | ||||||||||||||||||||||||
($ millions) | Pension | Postretirement | ||||||||||||||||||||||
2014 | $ | 8.9 | $ | 1.9 | ||||||||||||||||||||
2015 | 9.3 | 1.9 | ||||||||||||||||||||||
2016 | 9.7 | 1.9 | ||||||||||||||||||||||
2017 | 10.2 | 1.9 | ||||||||||||||||||||||
2018 | 11 | 1.8 | ||||||||||||||||||||||
2019 – 2023 | 66.4 | 8 | ||||||||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Plans' Obligations | ' | |||||||||||||||||||||||
The following table sets forth the weighted average assumptions used to determine the benefit plans’ obligations at December 31, 2013 and 2012: | ||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Benefit obligations weighted-average assumptions: | ||||||||||||||||||||||||
Discount rate | 4.85 | % | 4.05 | % | 4.85 | % | 4.05 | % | ||||||||||||||||
Rates of increase in compensation levels | 3.5 | 4 | — | — | ||||||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Plans' Net Periodic Cost | ' | |||||||||||||||||||||||
The following table sets forth the weighted average assumptions used to determine the benefit plans’ net periodic cost for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Weighted-average assumptions: | ||||||||||||||||||||||||
5.5 | % | / | ||||||||||||||||||||||
Discount rate | 4.05 | % | 4.4 | % | 5.5 | % | 4.05 | % | 4.4 | % | 4.75 | % | (1) | |||||||||||
Expected long-term rate of return on assets | 7.5 | 7.5 | 8 | 7.5 | 7.5 | 8 | ||||||||||||||||||
Rates of increase in compensation levels | 4 | 4 | 4 | — | — | — | ||||||||||||||||||
-1 | Due to the curtailment resulting from the postretirement benefit plan amendment, the expense was remeasured at November 1, 2011, using discount rate of 4.75%. | |||||||||||||||||||||||
Schedule of Assumed Health Care Cost Trend Rates Used | ' | |||||||||||||||||||||||
The following table sets forth the assumed health care cost trend rates used for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||
Postretirement | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Assumed health care cost trend rates: | ||||||||||||||||||||||||
Health care cost trend rate assumed for the next year | 10 | % | 10 | % | 10 | % | ||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2018 | 2017 | 2016 | |||||||||||||||||||||
Summary on Effective Impact of Assumed Health Care Cost Trend Rates on Amounts Reported for Postretirement Plan | ' | |||||||||||||||||||||||
The following table sets forth the effects of a one percentage point change in assumed health care cost trend rates for the year ended December 31, 2013: | ||||||||||||||||||||||||
($ millions) | Postretirement | |||||||||||||||||||||||
Increase | (Decrease) | |||||||||||||||||||||||
One percentage point change: | ||||||||||||||||||||||||
Effect on total service and interest cost | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||||||
Effect on accumulated postretirement benefit obligation | 2.7 | (2.4 | ) | |||||||||||||||||||||
Summary of Asset Allocation Targets | ' | |||||||||||||||||||||||
The following table sets forth the asset allocation targets, as a percentage of total fair value, which are used as a guide by management when allocating funds as they become available. | ||||||||||||||||||||||||
Asset | ||||||||||||||||||||||||
allocation | ||||||||||||||||||||||||
target | ||||||||||||||||||||||||
(0 to 100%) | ||||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||
Fixed maturity | 36 | % | ||||||||||||||||||||||
U.S. large-cap equity | 33 | |||||||||||||||||||||||
U.S. small-cap equity | 14 | |||||||||||||||||||||||
International equity | 12 | |||||||||||||||||||||||
Emerging market equity | 5 | |||||||||||||||||||||||
Total | 100 | % | ||||||||||||||||||||||
Company's Share of Pension Plan's Available-for-Sale Securities | ' | |||||||||||||||||||||||
The following tables set forth the Company’s share of pension plan’s available-for-sale securities within the fair value hierarchy at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-13 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 30 | $ | — | $ | 30 | $ | — | ||||||||||||||||
Corporate securities | 24.6 | — | 24.6 | — | ||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 11.3 | — | 11.3 | — | ||||||||||||||||||||
Total fixed maturities | 65.9 | — | 65.9 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 58 | 58 | — | — | ||||||||||||||||||||
Small-cap securities | 26.3 | 26.3 | — | — | ||||||||||||||||||||
Total equity securities | 84.3 | 84.3 | — | — | ||||||||||||||||||||
International instruments | 25.4 | — | 25.4 | — | ||||||||||||||||||||
Total pension plan investments | $ | 175.6 | $ | 84.3 | $ | 91.3 | $ | — | ||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-12 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 30.4 | $ | — | $ | 30.4 | $ | — | ||||||||||||||||
Corporate securities | 7.4 | — | 7.4 | — | ||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 13.9 | — | 13.9 | — | ||||||||||||||||||||
Total fixed maturities | 51.7 | — | 51.7 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 60.8 | 60.8 | — | — | ||||||||||||||||||||
Small-cap securities | 24.1 | 24.1 | — | — | ||||||||||||||||||||
Total equity securities | 84.9 | 84.9 | — | — | ||||||||||||||||||||
International instruments | 20 | — | 20 | — | ||||||||||||||||||||
Short-term money market funds | 4.1 | 4.1 | — | — | ||||||||||||||||||||
Total pension plan investments | $ | 160.7 | $ | 89 | $ | 71.7 | $ | — | ||||||||||||||||
The following tables set forth the Company’s share of the postretirement plan’s available-for-sale securities within the fair value hierarchy at December 31, 2013 and 2012: | ||||||||||||||||||||||||
($ millions) | Total | Quoted prices | Significant | Significant | ||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-13 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
Corporate securities | $ | 0.2 | $ | — | $ | 0.2 | $ | — | ||||||||||||||||
Total fixed maturities | 0.2 | — | 0.2 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 0.8 | 0.8 | — | — | ||||||||||||||||||||
Total equity securities | 0.8 | 0.8 | — | — | ||||||||||||||||||||
Total postretirement plan investments | $ | 1 | $ | 0.8 | $ | 0.2 | $ | — | ||||||||||||||||
Total | Quoted prices | Significant | Significant | |||||||||||||||||||||
in active | other | unobservable | ||||||||||||||||||||||
markets for | observable | inputs | ||||||||||||||||||||||
identical | inputs | (Level 3) | ||||||||||||||||||||||
assets | (Level 2) | |||||||||||||||||||||||
31-Dec-12 | (Level 1) | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 0.5 | $ | — | $ | 0.5 | $ | — | ||||||||||||||||
Corporate securities | 0.2 | — | 0.2 | — | ||||||||||||||||||||
Total fixed maturities | 0.7 | — | 0.7 | — | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Large-cap securities | 0.7 | 0.7 | — | — | ||||||||||||||||||||
Total equity securities | 0.7 | 0.7 | — | — | ||||||||||||||||||||
Short-term money market funds | 0.5 | 0.5 | — | — | ||||||||||||||||||||
Total postretirement plan investments | $ | 1.9 | $ | 1.2 | $ | 0.7 | $ | — | ||||||||||||||||
Other_Comprehensive_Income_and1
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following tables set forth the changes in the Company’s accumulated other comprehensive income component (AOCI), net of tax, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
($ millions) | Unrealized Gains and Losses on Available-for-Sale Securities | Gains and Losses on Cash Flow Hedges | Benefit Plan Items | Total | |||||||||||||
Beginning balance at January 1, 2013 | $ | 124 | $ | 0.1 | $ | (39.9 | ) | $ | 84.2 | ||||||||
Other comprehensive income before reclassifications | (16.1 | ) | — | 32.5 | 16.4 | ||||||||||||
Amounts reclassified from AOCI (a) | (23.3 | ) | (0.1 | ) | 3.6 | (19.8 | ) | ||||||||||
Net current period other comprehensive income | (39.4 | ) | (0.1 | ) | 36.1 | (3.4 | ) | ||||||||||
Ending balance at December 31, 2013 | $ | 84.6 | $ | — | $ | (3.8 | ) | $ | 80.8 | ||||||||
Beginning balance at January 1, 2012 | $ | 98.7 | $ | 0.2 | $ | (35.1 | ) | $ | 63.8 | ||||||||
Other comprehensive income before reclassifications | 54.1 | — | (7.4 | ) | 46.7 | ||||||||||||
Amounts reclassified from AOCI (a) | (28.8 | ) | (0.1 | ) | 2.6 | (26.3 | ) | ||||||||||
Net current period other comprehensive income | 25.3 | (0.1 | ) | (4.8 | ) | 20.4 | |||||||||||
Ending balance at December 31, 2012 | $ | 124 | $ | 0.1 | $ | (39.9 | ) | $ | 84.2 | ||||||||
Beginning balance at January 1, 2011 | $ | 71.3 | $ | 0.3 | $ | (79.5 | ) | $ | (7.9 | ) | |||||||
Other comprehensive income before reclassifications | 52.1 | — | 56.5 | 108.6 | |||||||||||||
Amounts reclassified from AOCI (a) | (24.7 | ) | (0.1 | ) | (12.1 | ) | (36.9 | ) | |||||||||
Net current period other comprehensive income | 27.4 | (0.1 | ) | 44.4 | 71.7 | ||||||||||||
Ending balance at December 31, 2011 | $ | 98.7 | $ | 0.2 | $ | (35.1 | ) | $ | 63.8 | ||||||||
(a) | See separate table below for details about these reclassifications | ||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The following tables set forth the reclassifications out of accumulated other comprehensive income, by component, to the Company’s consolidated statement of income for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
($ millions) | |||||||||||||||||
Details about Accumulated Other | 31-Dec | Affected line item in the Condensed | |||||||||||||||
Comprehensive Income Components | 2013 | 2012 | 2011 | Consolidated Statements of Income | |||||||||||||
Unrealized gains on available for sale securities | $ | 23.2 | $ | 28.8 | $ | 24.7 | Realized gain on sale of securities | ||||||||||
23.2 | 28.8 | 24.7 | Total before tax | ||||||||||||||
0.1 | — | — | Tax benefit | ||||||||||||||
23.3 | 28.8 | 24.7 | Net of tax | ||||||||||||||
Amortization of gain on derivative used in cash flow hedge | 0.1 | 0.1 | 0.1 | Realized gain on sale of securities | |||||||||||||
0.1 | 0.1 | 0.1 | Total before tax | ||||||||||||||
— | — | — | Tax benefit (expense) | ||||||||||||||
0.1 | 0.1 | 0.1 | Net of tax | ||||||||||||||
Amortization of benefit plan items: | |||||||||||||||||
Negative prior service costs | 5.5 | 5.2 | 19 | (a) | |||||||||||||
Net loss | (9.1 | ) | (7.8 | ) | (6.9 | ) | (a) | ||||||||||
(3.6 | ) | (2.6 | ) | 12.1 | Total before tax | ||||||||||||
— | — | — | Tax benefit (expense) | ||||||||||||||
(3.6 | ) | (2.6 | ) | 12.1 | Net of tax | ||||||||||||
Total reclassifications for the period | $ | 19.8 | $ | 26.3 | $ | 36.9 | |||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see pension and postretirement benefit plans footnote for additional details). |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Reconciliations of Statutory Capital and Surplus and Net Income | ' | |||||||||||
The following tables set forth reconciliations of statutory capital and surplus and net income, as determined using SAP, to the amounts included in the accompanying consolidated financial statements: | ||||||||||||
($ millions) | 2013 | 2012 | ||||||||||
Statutory capital and surplus of insurance subsidiaries | $ | 753.2 | $ | 630.1 | ||||||||
Net liabilities of non-insurance parent and affiliates | (82.4 | ) | (74.8 | ) | ||||||||
670.8 | 555.3 | |||||||||||
Increases (decreases): | ||||||||||||
Deferred acquisition costs | 96.8 | 91.7 | ||||||||||
Postretirement and pension benefits | 6.3 | 6.6 | ||||||||||
Deferred federal income taxes | (15.8 | ) | (38.0 | ) | ||||||||
Fixed maturities at fair value | 26.1 | 128.5 | ||||||||||
Other, net | 0.8 | (6.9 | ) | |||||||||
Stockholders’ equity per accompanying consolidated financial statements | $ | 785 | $ | 737.2 | ||||||||
($ millions) | Year ended December 31 | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory net income (loss) of insurance subsidiaries | $ | 51.1 | $ | 5.5 | $ | (64.6 | ) | |||||
Net (loss) income of non-insurance parent and affiliates | (5.1 | ) | 0.2 | 1.9 | ||||||||
46 | 5.7 | (62.7 | ) | |||||||||
Increases (decreases): | ||||||||||||
Deferred acquisition costs | 5.1 | — | (26.8 | ) | ||||||||
Postretirement and pension benefits | 10.3 | 5.3 | (2.5 | ) | ||||||||
Deferred federal income taxes | (1.0 | ) | (3.3 | ) | (59.5 | ) | ||||||
Share-based compensation expense | (1.3 | ) | (2.7 | ) | (2.9 | ) | ||||||
Other, net | 1.7 | 5.7 | (6.3 | ) | ||||||||
Net income (loss) per accompanying consolidated financial statements | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | |||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||||||
Weighted Average Fair Values and Related Assumptions for Options Granted | ' | ||||||||||||||||||||
The following table sets forth the weighted average fair values and related assumptions for options granted for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Fair value per share | $ | 5.15 | $ | 3.46 | $ | 4.69 | |||||||||||||||
Expected dividend yield | 2.4 | % | 4.41 | % | 3.51 | % | |||||||||||||||
Risk free interest rate | 1.26 | % | 1.1 | % | 2.5 | % | |||||||||||||||
Expected volatility factor | 37.59 | % | 41.5 | % | 34.9 | % | |||||||||||||||
Expected life in years | 6.3 | 5.4 | 6.3 | ||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||
The following table sets forth the Company’s total stock option activity and related information for these plans for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
(millions, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||||||||||
Options | Weighted- | Options | Weighted- | Options | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding, beginning of year | 3.9 | $ | 22.25 | 3.8 | $ | 22.79 | 3.4 | $ | 23.53 | ||||||||||||
Granted | 0.5 | 16.82 | 0.4 | 13.54 | 0.6 | 16.98 | |||||||||||||||
Exercised | (0.2 | ) | 16.82 | — | 14.49 | — | 16.4 | ||||||||||||||
Canceled | (0.3 | ) | 19.52 | (0.3 | ) | 17.95 | (0.2 | ) | 18.94 | ||||||||||||
Outstanding, end of year | 3.9 | $ | 22.01 | 3.9 | $ | 22.25 | 3.8 | $ | 22.79 | ||||||||||||
Summary of Stock Options Outstanding and Exercisable | ' | ||||||||||||||||||||
The following table sets forth information pertaining to the total options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||
(Options in millions) | Options Outstanding | Options Exercisable | |||||||||||||||||||
Number | Weighted- | Weighted- | Number | Weighted- | |||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual Life | Price | Price | |||||||||||||||||||
Range of Exercise Prices: | |||||||||||||||||||||
$10.01 – $20.00 | 2.2 | 6.7 | $ | 16.47 | 1.2 | $ | 16.83 | ||||||||||||||
$20.01 – $30.00 | 1 | 2.9 | 27.18 | 1 | 27.27 | ||||||||||||||||
Greater than $30.00 | 0.7 | 1.4 | 32.1 | 0.7 | 32.1 | ||||||||||||||||
3.9 | 4.8 | $ | 22.01 | 2.9 | $ | 24.02 | |||||||||||||||
Restricted Stock [Member] | ' | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||||||
Summary of Non-Vested and Vested Restricted Shares and Changes | ' | ||||||||||||||||||||
The following table sets forth the status of the Company’s non-vested and vested restricted shares and changes for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Grant | Grant | Grant | |||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||
Value | Value | Value | |||||||||||||||||||
Outstanding, beginning of year | 55,413 | $ | 16.21 | 33,887 | $ | 17.92 | 17,180 | $ | 18.78 | ||||||||||||
Granted | — | — | 21,526 | 13.53 | 16,707 | 17.03 | |||||||||||||||
Vested | (17,180 | ) | 18.78 | — | — | — | — | ||||||||||||||
Outstanding, end of year | 38,233 | $ | 15.06 | 55,413 | $ | 16.21 | 33,887 | $ | 17.92 | ||||||||||||
Net_Earnings_Loss_Per_Common_S1
Net Earnings (Loss) Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Compilation of Basic and Diluted Net (Loss) Per Common Share | ' | |||||||||||
The following table sets forth the compilation of basic and diluted net (loss) earnings per common share for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
(millions, except per share amounts) | 2013 | 2012 | 2011 | |||||||||
Numerator: | ||||||||||||
Net earnings (loss) for basic net earnings per common share | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | |||||
Effect of dilutive share-based awards | — | — | — | |||||||||
Adjusted net earnings (loss) for dilutive net earnings (loss) per common share | $ | 60.8 | $ | 10.7 | $ | (160.7 | ) | |||||
Denominator: | ||||||||||||
Weighted average shares for basic net earnings (loss) per common share | 40.6 | 40.4 | 40.1 | |||||||||
Effect of dilutive share-based awards | 0.1 | 0.1 | 0.1 | |||||||||
Adjusted weighted average shares for diluted net earnings (loss) per common share | 40.7 | 40.5 | 40.2 | |||||||||
Basic net earnings (loss) per common share | $ | 1.5 | $ | 0.26 | $ | (4.00 | ) | |||||
Diluted net earnings (loss) per common share | $ | 1.49 | $ | 0.26 | $ | (4.00 | ) | |||||
Options to Purchase Shares of Common Stock | ' | |||||||||||
The following table sets forth the options to purchase shares of common stock and the restricted share units ("RSU award") provided to each outside director of the Company, that were not included in the computation of diluted earnings per common share because the exercise price of the options, or awards, was greater than the average market price or their inclusion would have been antidilutive for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
(millions) | 2013 | 2012 | 2011 | |||||||||
Total number of antidilutive options and awards | 2.6 | 3.7 | 3.3 | |||||||||
Reportable_Segments_Tables
Reportable Segments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Financial Information Regarding Company's Reportable Segments | ' | |||||||||||
The following table sets forth financial information regarding the Company’s reportable segments for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
($ millions) | 2013 | 2012 | 2011 | |||||||||
Revenues from external sources: | ||||||||||||
Insurance segments | ||||||||||||
Personal insurance | $ | 464 | $ | 469.8 | $ | 800.6 | ||||||
Business insurance | 364.2 | 327.2 | 379 | |||||||||
Specialty insurance | 226.8 | 245.1 | 249.2 | |||||||||
Total insurance segments | 1,055.00 | 1,042.10 | 1,428.80 | |||||||||
Investment operations segment | ||||||||||||
Net investment income | 72.8 | 75.4 | 85.4 | |||||||||
Net realized capital gains | 23.2 | 28.8 | 38.1 | |||||||||
Total investment operations segment | 96 | 104.2 | 123.5 | |||||||||
Total revenue from reportable segments | 1,151.00 | 1,146.30 | 1,552.30 | |||||||||
All other | 2 | 3.8 | 1.4 | |||||||||
Total revenues from external sources | 1,153.00 | 1,150.10 | 1,553.70 | |||||||||
Intersegment revenues | 5.1 | 9.5 | 10.5 | |||||||||
Total revenues | 1,158.10 | 1,159.60 | 1,564.20 | |||||||||
Reconciling items: | ||||||||||||
Eliminate intersegment revenues | (5.1 | ) | (9.5 | ) | (10.5 | ) | ||||||
Total consolidated revenue | $ | 1,153.00 | $ | 1,150.10 | $ | 1,553.70 | ||||||
Segment loss before federal income tax: | ||||||||||||
Insurance segments: | ||||||||||||
Personal insurance SAP underwriting loss | $ | (12.6 | ) | $ | (1.6 | ) | $ | (67.4 | ) | |||
Business insurance SAP underwriting loss | (10.2 | ) | (42.3 | ) | (70.9 | ) | ||||||
Specialty insurance SAP underwriting loss | (11.2 | ) | (48.1 | ) | (46.6 | ) | ||||||
Total insurance segments | (34.0 | ) | (92.0 | ) | (184.9 | ) | ||||||
Investment operations segment: | ||||||||||||
Net investment income | 72.8 | 75.4 | 85.4 | |||||||||
Net realized capital gains | 23.2 | 28.8 | 38.1 | |||||||||
Total investment operations segment | 96 | 104.2 | 123.5 | |||||||||
All other segments income (loss) | 0.9 | 2 | (0.5 | ) | ||||||||
Reconciling items: | ||||||||||||
GAAP adjustments | 11.8 | 7.2 | (40.7 | ) | ||||||||
Interest expense on corporate debt | (8.5 | ) | (7.0 | ) | (7.1 | ) | ||||||
Corporate expenses | (4.9 | ) | (3.8 | ) | (2.4 | ) | ||||||
Total reconciling items | $ | (1.6 | ) | $ | (3.6 | ) | $ | (50.2 | ) | |||
Total consolidated income (loss) before federal income taxes | $ | 61.3 | $ | 10.6 | $ | (112.1 | ) | |||||
Financial Information Regarding Company's Reportable Segments | ' | |||||||||||
The following table sets forth financial information regarding the Company’s reportable segments at December 31, 2013 and 2012: | ||||||||||||
($ millions) | 2013 | 2012 | ||||||||||
Segment assets: | ||||||||||||
Investment operations segment | $ | 2,331.60 | $ | 2,327.40 | ||||||||
Total segment assets | 2,331.60 | 2,327.40 | ||||||||||
Reconciling items: | ||||||||||||
Corporate assets | 164.8 | 150.4 | ||||||||||
Total consolidated assets | $ | 2,496.40 | $ | 2,477.80 | ||||||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Data | ' | |||||||||||||||
The following tables set forth quarterly financial data for 2013 and 2012: | ||||||||||||||||
($ millions, except per share amounts) | 2013 | |||||||||||||||
For three months ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Total revenues | $ | 285.3 | $ | 285.3 | $ | 292.7 | $ | 289.7 | ||||||||
Income before federal income taxes | 20 | 6.3 | 18.7 | 16.3 | ||||||||||||
Net income | 19.7 | 6.2 | 18.5 | 16.4 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.49 | $ | 0.15 | $ | 0.46 | $ | 0.4 | ||||||||
Diluted | $ | 0.49 | $ | 0.15 | $ | 0.45 | $ | 0.4 | ||||||||
2012 | ||||||||||||||||
For three months ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Total revenues | $ | 280.3 | $ | 286.7 | $ | 286.4 | $ | 296.7 | ||||||||
(Loss) income before federal income taxes | (2.0 | ) | (2.7 | ) | (5.6 | ) | 20.9 | |||||||||
Net (loss) income | (2.0 | ) | (2.7 | ) | (5.5 | ) | 20.9 | |||||||||
Earnings (loss) per common share: | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | 0.52 | |||||
Diluted | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.14 | ) | $ | 0.51 | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Schedule of Net Deferred Acquisition Costs (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2011 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ' | ' | ' | ' | ' |
Balance, beginning of year | ' | $118.50 | $91.70 | $91.70 | $118.50 |
Effect of pooling changes | -27.3 | 8.3 | 0 | 0 | ' |
Acquisition costs deferred | ' | ' | 214.6 | 213.1 | 266.6 |
Acquisition costs amortized to expense | ' | ' | -209.5 | -213.1 | -274.4 |
Balance, end of year | $91.70 | ' | $96.80 | $91.70 | $91.70 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Liability for unpaid losses and loss expenses | $24.70 | $25.70 |
Investments_Cost_or_Amortized_
Investments - Cost or Amortized Cost and Fair Value of Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | $2,050.10 | $2,021.40 |
Gross unrealized holding gains | 160.7 | 182.8 |
Gross unrealized holding losses | -34.5 | -6.3 |
Fair value | 2,176.30 | 2,197.90 |
Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 1,804 | 1,776.20 |
Gross unrealized holding gains | 60.3 | 131.8 |
Gross unrealized holding losses | -34.2 | -2.9 |
Fair value | 1,830.10 | 1,905.10 |
Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 196.6 | 196.2 |
Gross unrealized holding gains | 69 | 35.6 |
Gross unrealized holding losses | -0.3 | -3.4 |
Fair value | 265.3 | 228.4 |
Other invested assets | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 49.5 | 49 |
Gross unrealized holding gains | 31.4 | 15.4 |
Gross unrealized holding losses | 0 | 0 |
Fair value | 80.9 | 64.4 |
U.S. treasury securities and obligations of U.S. government agencies | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 345.5 | 328.2 |
Gross unrealized holding gains | 13.4 | 38.3 |
Gross unrealized holding losses | -6.5 | 0 |
Fair value | 352.4 | 366.5 |
Obligations of states and political subdivisions | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 765.3 | 750.4 |
Gross unrealized holding gains | 25.8 | 50.3 |
Gross unrealized holding losses | -16.9 | -0.4 |
Fair value | 774.2 | 800.3 |
Corporate securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 345 | 320.5 |
Gross unrealized holding gains | 11.4 | 19.2 |
Gross unrealized holding losses | -6.7 | -1.1 |
Fair value | 349.7 | 338.6 |
U.S. government agencies residential mortgage-backed securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 348.2 | 377.1 |
Gross unrealized holding gains | 9.7 | 24 |
Gross unrealized holding losses | -4.1 | -1.4 |
Fair value | 353.8 | 399.7 |
Large-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 148.2 | 152.6 |
Gross unrealized holding gains | 46.5 | 25 |
Gross unrealized holding losses | -0.3 | -3.4 |
Fair value | 194.4 | 174.2 |
Small-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or amortized cost | 48.4 | 43.6 |
Gross unrealized holding gains | 22.5 | 10.6 |
Gross unrealized holding losses | 0 | 0 |
Fair value | $70.90 | $54.20 |
Investments_Gross_Unrealized_L
Investments - Gross Unrealized Losses and Fair Value on its Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Positions | Positions |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair value | $530.50 | $181.80 |
Less than 12 months, Unrealized losses | -28 | -3.9 |
Less than 12 months, Number of positions (positions) | 154 | 41 |
12 months or more, Fair value | 85.8 | 43.7 |
12 months or more, Unrealized losses | -6.5 | -2.4 |
12 months or more, Number of positions (positions) | 25 | 18 |
Total, Fair value | 616.3 | 225.5 |
Total, Unrealized losses | -34.5 | -6.3 |
Total, Number of positions (positions) | 179 | 59 |
Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair value | 525.2 | 158.1 |
Less than 12 months, Unrealized losses | -27.7 | -1.8 |
Less than 12 months, Number of positions (positions) | 152 | 37 |
12 months or more, Fair value | 85.8 | 34.8 |
12 months or more, Unrealized losses | -6.5 | -1.1 |
12 months or more, Number of positions (positions) | 25 | 13 |
Total, Fair value | 611 | 192.9 |
Total, Unrealized losses | -34.2 | -2.9 |
Total, Number of positions (positions) | 177 | 50 |
U.S. treasury securities and obligations of U.S. government agencies | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair value | 109.6 | 7 |
Less than 12 months, Unrealized losses | -6.5 | 0 |
Less than 12 months, Number of positions (positions) | 29 | 2 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Unrealized losses | 0 | 0 |
12 months or more, Number of positions (positions) | 0 | 0 |
Total, Fair value | 109.6 | 7 |
Total, Unrealized losses | -6.5 | 0 |
Total, Number of positions (positions) | 29 | 2 |
Obligations of states and political subdivisions | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair value | 206.4 | 47.4 |
Less than 12 months, Unrealized losses | -14.7 | -0.4 |
Less than 12 months, Number of positions (positions) | 76 | 12 |
12 months or more, Fair value | 25.6 | 0 |
12 months or more, Unrealized losses | -2.2 | 0 |
12 months or more, Number of positions (positions) | 7 | 0 |
Total, Fair value | 232 | 47.4 |
Total, Unrealized losses | -16.9 | -0.4 |
Total, Number of positions (positions) | 83 | 12 |
Corporate securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair value | 105.6 | 80.4 |
Less than 12 months, Unrealized losses | -3.2 | -1.1 |
Less than 12 months, Number of positions (positions) | 22 | 17 |
12 months or more, Fair value | 40.9 | 0 |
12 months or more, Unrealized losses | -3.5 | 0 |
12 months or more, Number of positions (positions) | 8 | 0 |
Total, Fair value | 146.5 | 80.4 |
Total, Unrealized losses | -6.7 | -1.1 |
Total, Number of positions (positions) | 30 | 17 |
U.S. government agencies residential mortgage-backed securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair value | 103.6 | 23.3 |
Less than 12 months, Unrealized losses | -3.3 | -0.3 |
Less than 12 months, Number of positions (positions) | 25 | 6 |
12 months or more, Fair value | 19.3 | 34.8 |
12 months or more, Unrealized losses | -0.8 | -1.1 |
12 months or more, Number of positions (positions) | 10 | 13 |
Total, Fair value | 122.9 | 58.1 |
Total, Unrealized losses | -4.1 | -1.4 |
Total, Number of positions (positions) | 35 | 19 |
Large-cap securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair value | 5.3 | 23.7 |
Less than 12 months, Unrealized losses | -0.3 | -2.1 |
Less than 12 months, Number of positions (positions) | 2 | 4 |
12 months or more, Fair value | 0 | 8.9 |
12 months or more, Unrealized losses | 0 | -1.3 |
12 months or more, Number of positions (positions) | 0 | 5 |
Total, Fair value | 5.3 | 32.6 |
Total, Unrealized losses | ($0.30) | ($3.40) |
Total, Number of positions (positions) | 2 | 9 |
Investments_Realized_Losses_Re
Investments - Realized Losses Related to Other-Than-Temporary Impairments (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Other-than-temporary impairments | ($4) | ($3.40) | ($6.60) |
Fixed maturities: | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Other-than-temporary impairments | 0 | -0.2 | 0 |
Large-cap securities | Equity securities: | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Other-than-temporary impairments | -1.8 | 0 | -1 |
Small-cap securities | Equity securities: | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Other-than-temporary impairments | ($2.20) | ($3.20) | ($5.60) |
Investments_Amortized_Cost_and
Investments - Amortized Cost and Fair Value of Available-for-Sale Fixed Maturities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amortized cost | ' | ' |
Due in 1 year or less | $49.10 | ' |
Due after 1 year through 5 years | 391.4 | ' |
Due after 5 years through 10 years | 394.1 | ' |
Due after 10 years | 621.2 | ' |
U.S. government agencies residential mortgage-backed securities | 348.2 | ' |
Total | 1,804 | 1,776.20 |
Fair value | ' | ' |
Due in 1 year or less | 49.6 | ' |
Due after 1 year through 5 years | 407.2 | ' |
Due after 5 years through 10 years | 409.8 | ' |
Due after 10 years | 609.7 | ' |
U.S. government agencies residential mortgage-backed securities | 353.8 | ' |
Total | $1,830.10 | $1,905.10 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments [Abstract] | ' | ' | ' |
Carrying value of securities pledged as collateral for the FHLB Loan | $85 | ' | ' |
Fixed maturities fair value of deposit with insurance regulators | 8.7 | 10 | ' |
Proceeds on sales of available-for-sale securities | 220.4 | 435.3 | 369.3 |
Deferred federal income tax liability, net of valuation allowance, on the net unrealized holding gains | $41.60 | $52.50 | ' |
Investments_Components_of_Net_
Investments - Components of Net Investment Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | $74.90 | $77.40 | $87.60 |
Investment expenses | 2.1 | 2 | 2.2 |
Net investment income | 72.8 | 75.4 | 85.4 |
Fixed maturities: | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 63.2 | 66.9 | 77 |
Equity securities: | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 6 | 4.9 | 4.9 |
Cash and cash equivalents, and other | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | $5.70 | $5.60 | $5.70 |
Investments_Realized_and_Unrea
Investments - Realized and Unrealized Holding Gains (Losses) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Realized gains: | ' | ' | ' |
Total realized gains | $28.70 | $34.80 | $50 |
Realized losses: | ' | ' | ' |
Total realized losses | -5.5 | -6 | -11.9 |
Net realized gains on investments | 23.2 | 28.8 | 38.1 |
Change in unrealized holding gains (losses), net of tax: | ' | ' | ' |
Deferred federal income liability thereon | 17.6 | -8.6 | -14.7 |
Valuation allowance | -6.7 | 9.2 | 0 |
Change in net unrealized holding gains, net of tax | -39.4 | 25.3 | 27.4 |
Fixed maturities: | ' | ' | ' |
Realized gains: | ' | ' | ' |
Total realized gains | 2.5 | 15.7 | 4.4 |
Change in unrealized holding gains (losses), net of tax: | ' | ' | ' |
Change in net unrealized holding gains, net of tax | -102.8 | 11.3 | 79.2 |
Fixed maturities: | Sales | ' | ' | ' |
Realized losses: | ' | ' | ' |
Total realized losses | -0.3 | 0 | 0 |
Fixed maturities: | OTTI | ' | ' | ' |
Realized losses: | ' | ' | ' |
Total realized losses | 0 | -0.2 | 0 |
Equity securities: | ' | ' | ' |
Realized gains: | ' | ' | ' |
Total realized gains | 26.1 | 19 | 41.7 |
Change in unrealized holding gains (losses), net of tax: | ' | ' | ' |
Change in net unrealized holding gains, net of tax | 36.5 | 6.6 | -30.4 |
Equity securities: | Sales | ' | ' | ' |
Realized losses: | ' | ' | ' |
Total realized losses | -1.2 | -2.6 | -5.3 |
Equity securities: | OTTI | ' | ' | ' |
Realized losses: | ' | ' | ' |
Total realized losses | -4 | -3.2 | -6.6 |
Other invested assets | ' | ' | ' |
Realized gains: | ' | ' | ' |
Total realized gains | 0.1 | 0.1 | 3.9 |
Change in unrealized holding gains (losses), net of tax: | ' | ' | ' |
Change in net unrealized holding gains, net of tax | $16 | $6.80 | ($6.70) |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | 31-May-09 | Dec. 31, 2013 | Dec. 31, 2012 |
Agreement | |||
Fair Value Measurements Disclosure [Line Items] | ' | ' | ' |
Other invested assets fair value | ' | $74.20 | $59 |
Other investments and securities, at cost | ' | 5 | 0.5 |
Number of credit agreements (agreements) | 2 | ' | ' |
Notes receivable from affiliate | 70 | 70 | 70 |
Fair Value, Inputs, Level 3 | ' | ' | ' |
Fair Value Measurements Disclosure [Line Items] | ' | ' | ' |
Federal home loan bank stock | ' | 4.5 | ' |
Other investments and securities, at cost | ' | $0.50 | ' |
Corporate securities | Fair Value, Inputs, Level 3 | ' | ' | ' |
Fair Value Measurements Disclosure [Line Items] | ' | ' | ' |
Number of available for sale securities (securities) | ' | 2 | ' |
Securities with fair value estimated by present value of future cash flows (securities) | ' | 1 | ' |
International funds | ' | ' | ' |
Fair Value Measurements Disclosure [Line Items] | ' | ' | ' |
Number of available for sale securities (securities) | ' | 2 | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Company's Available-for-Sale Investments within Fair Value Hierarchy (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | $2,176.30 | $2,197.90 |
Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 1,830.10 | 1,905.10 |
Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 265.3 | 228.4 |
Other invested assets | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 80.9 | 64.4 |
U.S. treasury securities and obligations of U.S. government agencies | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 352.4 | 366.5 |
Obligations of states and political subdivisions | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 774.2 | 800.3 |
Corporate securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 349.7 | 338.6 |
U.S. government agencies residential mortgage-backed securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 353.8 | 399.7 |
Large-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 194.4 | 174.2 |
Small-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 70.9 | 54.2 |
Available-for-sale: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 2,176.30 | 2,197.90 |
Available-for-sale: | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 1,830.10 | 1,905.10 |
Available-for-sale: | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 265.3 | 228.4 |
Available-for-sale: | Other invested assets | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 80.9 | 64.4 |
Available-for-sale: | U.S. treasury securities and obligations of U.S. government agencies | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 352.4 | 366.5 |
Available-for-sale: | Obligations of states and political subdivisions | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 774.2 | 800.3 |
Available-for-sale: | Corporate securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 349.7 | 338.6 |
Available-for-sale: | U.S. government agencies residential mortgage-backed securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 353.8 | 399.7 |
Available-for-sale: | Large-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 194.4 | 174.2 |
Available-for-sale: | Small-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 70.9 | 54.2 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 272 | 233.8 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 265.3 | 228.4 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | Other invested assets | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 6.7 | 5.4 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | U.S. treasury securities and obligations of U.S. government agencies | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | Obligations of states and political subdivisions | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | Corporate securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | U.S. government agencies residential mortgage-backed securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | Large-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 194.4 | 174.2 |
Quoted prices in active markets for identical assets (Level 1) | Available-for-sale: | Small-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 70.9 | 54.2 |
Significant other observable inputs (Level 2) | Available-for-sale: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 1,895.40 | 1,955.60 |
Significant other observable inputs (Level 2) | Available-for-sale: | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 1,821.20 | 1,896.60 |
Significant other observable inputs (Level 2) | Available-for-sale: | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant other observable inputs (Level 2) | Available-for-sale: | Other invested assets | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 74.2 | 59 |
Significant other observable inputs (Level 2) | Available-for-sale: | U.S. treasury securities and obligations of U.S. government agencies | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 352.4 | 366.5 |
Significant other observable inputs (Level 2) | Available-for-sale: | Obligations of states and political subdivisions | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 774.2 | 800.3 |
Significant other observable inputs (Level 2) | Available-for-sale: | Corporate securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 340.8 | 330.1 |
Significant other observable inputs (Level 2) | Available-for-sale: | U.S. government agencies residential mortgage-backed securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 353.8 | 399.7 |
Significant other observable inputs (Level 2) | Available-for-sale: | Large-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant other observable inputs (Level 2) | Available-for-sale: | Small-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Available-for-sale: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 8.9 | 8.5 |
Significant unobservable inputs (Level 3) | Available-for-sale: | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 8.9 | 8.5 |
Significant unobservable inputs (Level 3) | Available-for-sale: | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Available-for-sale: | Other invested assets | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Available-for-sale: | U.S. treasury securities and obligations of U.S. government agencies | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Available-for-sale: | Obligations of states and political subdivisions | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Available-for-sale: | Corporate securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 8.9 | 8.5 |
Significant unobservable inputs (Level 3) | Available-for-sale: | U.S. government agencies residential mortgage-backed securities | Fixed maturities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Available-for-sale: | Large-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Available-for-sale: | Small-cap securities | Equity securities: | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total available-for-sale investments | $0 | $0 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (Recurring, Available-for-sale:, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Recurring | Available-for-sale: | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning Balance | $8.50 | $2.90 |
Total realized gains (losses)-included in earnings | 0 | -0.2 |
Total unrealized gains (losses)-included in other comprehensive income | 0.2 | 0 |
Purchases | 0.2 | 5.8 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $8.90 | $8.50 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Company Estimates Receivable from Affiliate using Market Quotations for U.S. Treasury Securities (Detail) (Affiliated entity, Significant other observable inputs (Level 2), USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Interest rate (percent) | 7.00% | 7.00% |
Carrying value | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Notes receivable from affiliate | 70 | 70 |
Fair value | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Notes receivable from affiliate | 74.6 | 78.3 |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments - Included in Notes Payable are Senior Notes and Subordinated Debentures (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 15, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Home Loan Bank Advances | Senior Notes due 2013 | Senior Notes due 2013 | Affiliate Subordinated Debentures due 2033 | Affiliate Subordinated Debentures due 2033 | Carrying value | Carrying value | Carrying value | Carrying value | Carrying value | Carrying value | Carrying value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | ||
Federal Home Loan Bank Advances | Senior Notes due 2013 | Senior Notes due 2013 | Affiliate Subordinated Debentures due 2033 | Affiliate Subordinated Debentures due 2033 | Federal Home Loan Bank Advances | Senior Notes due 2013 | Affiliate Subordinated Debentures due 2033 | Affiliate Subordinated Debentures due 2033 | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total notes payable | ' | ' | ' | ' | ' | ' | $100,800,000 | $115,900,000 | $85,300,000 | ' | $100,400,000 | $15,500,000 | $15,500,000 | $101,200,000 | $115,800,000 | $85,700,000 | $100,300,000 | $15,500,000 | $15,500,000 |
Interest rate (percent) | 5.28% | 5.03% | ' | 6.25% | 4.44% | 4.51% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, issued | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | $85,000,000 | $100,000,000 | ' | $15,500,000 | ' | ' | ' | ' | ' | ' | ' |
Losses_and_Loss_Expenses_Payab2
Losses and Loss Expenses Payable - Schedule of Activity in Liability for Losses and Loss Expenses (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ' | ' | ' | ' |
Losses and loss expenses payable, at beginning of year | $942.20 | $907.10 | $893 | ' |
Less: reinsurance recoverable on losses and loss expenses payable | 13.5 | 25.5 | 18.8 | ' |
Net balance at beginning of year | 928.7 | 881.6 | 874.2 | ' |
Impact of pooling change, January 1, 2011 (Note 6a) | ' | 0 | 0 | 124.1 |
Incurred related to: | ' | ' | ' | ' |
Current year | 741 | 795.2 | 1,213.30 | ' |
Prior years | -21.2 | -16.9 | -33.3 | ' |
Total incurred | 719.8 | 778.3 | 1,180 | ' |
Paid related to: | ' | ' | ' | ' |
Current year | 355 | 397.2 | 724.2 | ' |
Prior years | 342.7 | 334 | 369.1 | ' |
Total paid | 697.7 | 731.2 | 1,093.30 | ' |
Impact of pooling change, December 31, 2011 (Note 6a) | 0 | 0 | -203.4 | ' |
Net balance at end of year | 950.8 | 928.7 | 881.6 | ' |
Plus: reinsurance recoverable on losses and loss expenses payable | 9.1 | 13.5 | 25.5 | ' |
Losses and loss expenses payable, at end of year (affiliates $438.0, $435.1 and $376.8, respectively) | $959.90 | $942.20 | $907.10 | ' |
Losses_and_Loss_Expenses_Payab3
Losses and Loss Expenses Payable - Schedule of Activity in Liability for Losses and Loss Expenses (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Insurance [Abstract] | ' | ' | ' |
Losses and loss expenses payable, affiliates | $438 | $435.10 | $376.80 |
Losses_and_Loss_Expenses_Payab4
Losses and Loss Expenses Payable - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | $21.20 | $16.90 | $33.30 |
Loss adjustment expense reserves | 8 | 6.3 | 7.6 |
Specialty insurance segment | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 10.5 | 27.8 | 6.7 |
Loss and loss expense reserve development (accident year) | ' | 2 | ' |
Catastrophe reserves | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 5.4 | 10.4 | 4.3 |
Personal and business insurance segments | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 18.3 | 28 | 28.1 |
Other & product liability | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 8.3 | 9.4 | ' |
Fire & allied lines | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 8 | 5.1 | 4.9 |
Homeowners | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 2.9 | ' | 14.2 |
RED [Member] | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 21.3 | ' | ' |
Workers' compensation [Member] | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 12.3 | ' | ' |
Workers' compensation [Member] | Specialty insurance segment | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | 0 | ' | ' |
Personal auto | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | ' | 10.5 | ' |
Commercial multi-peril | ' | ' | ' |
Loss And Loss Adjustment Expense Reserves [Line Items] | ' | ' | ' |
Loss and loss expense reserve | ' | ' | $6.10 |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 |
Reinsurance [Line Items] | ' | ' | ' |
Duration of quota share agreement | ' | '3 years | ' |
Percentage ceded to reinsurers (percent) | 75.00% | ' | ' |
Policyholders' surplus (percent) | ' | 25.00% | ' |
Commission on all premiums ceded to the reinsurers (percent) | 29.00% | ' | ' |
Unearned premium | $491 | ' | $481.60 |
Deferred ceding commission | 8.6 | ' | 8.4 |
Homeowners Quota Share Arrangement | ' | ' | ' |
Reinsurance [Line Items] | ' | ' | ' |
Unearned premium | ' | 106.3 | ' |
Reinsurance_External_Reinsuran
Reinsurance - External Reinsurance on Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Losses and loss expenses payable: | ' | ' |
Assumed | $950.80 | $928.70 |
Ceded | -512.8 | -493.6 |
Net losses and loss expenses payable | 438 | 435.1 |
Unearned premiums: | ' | ' |
Assumed | 486.3 | 477.7 |
Ceded | -407.9 | -395.8 |
Unearned Premiums From Affiliates | 78.4 | 81.9 |
Prior to reinsurance transaction with State Auto Mutual | ' | ' |
Losses and loss expenses payable: | ' | ' |
Direct | 516.9 | 499.4 |
Assumed | 5 | 7.7 |
Ceded | -9.1 | -13.5 |
Net losses and loss expenses payable | 512.8 | 493.6 |
Unearned premiums: | ' | ' |
Direct | 411.6 | 398.7 |
Assumed | 1 | 1 |
Ceded | -4.7 | -3.9 |
Unearned Premiums From Affiliates | $407.90 | $395.80 |
Reinsurance_External_Reinsuran1
Reinsurance - External Reinsurance on Income Statements (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Written premiums: | ' | ' | ' |
Assumed | $1,062.10 | $1,055.30 | $1,284.60 |
Ceded | -866.3 | -839.9 | -796.2 |
Earned premiums: | ' | ' | ' |
Direct | 874.7 | 833.3 | 812.1 |
Assumed | 1,055 | 1,042.10 | 1,428.80 |
Ceded | -855 | -809.2 | -803.6 |
Losses and loss expenses incurred: | ' | ' | ' |
Assumed | 719.8 | 778.3 | 1,180 |
Ceded | 557.2 | -575.7 | -703 |
GAAP expense adjustments | 3 | 0.8 | 2.4 |
Prior to reinsurance transaction with State Auto Mutual | ' | ' | ' |
Written premiums: | ' | ' | ' |
Direct | 886.7 | 860.1 | 814.4 |
Assumed | 3.9 | 4 | 8.7 |
Ceded | -24.3 | -24.3 | -26.9 |
Net written premiums | 866.3 | 839.8 | 796.2 |
Earned premiums: | ' | ' | ' |
Direct | 874.7 | 833.3 | 812.1 |
Assumed | 3.8 | 4.1 | 18.2 |
Ceded | -23.5 | -28.2 | -26.7 |
Net earned premiums | 855 | 809.2 | 803.6 |
Losses and loss expenses incurred: | ' | ' | ' |
Direct | 559 | 578.5 | 716.2 |
Assumed | 3 | 3.6 | 12.6 |
Ceded | -4.8 | -6.4 | -25.8 |
Net losses and loss expenses incurred | $557.20 | $575.70 | $703 |
Transactions_with_Affiliates_A
Transactions with Affiliates - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | 31-May-09 | 31-May-03 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2011 |
Agreement | ||||||
Impact Of Pooling Arrangement Amendment On Balance Sheet [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of overall participation in company STFC Pooled Companies (percent) | ' | ' | ' | ' | 80.00% | 0.00% |
Percentage of overall participation in company STFC Pooled Companies after amendment in pooling arrangement (percent) | ' | ' | ' | ' | 65.00% | ' |
Number of days intercompany balances settled after quarter end | ' | ' | '60 days | ' | ' | ' |
Company's premium share balances due | ' | ' | $295.50 | $269.30 | ' | ' |
Mandatorily redeemable preferred capital securities issued to third party | ' | 15 | ' | ' | ' | ' |
Common securities issued to state auto financial | ' | 0.5 | 4 | 1.6 | 2.6 | ' |
Proceeds from the issuance of Trust Securities | ' | 15.5 | ' | ' | ' | ' |
Subordinated Debt Securities due | ' | 31-Dec-33 | ' | ' | ' | ' |
Description of variable rate basis | ' | 'three-month LIBOR rate plus 4.20% | ' | ' | ' | ' |
Interest rate (percent) | ' | ' | 5.28% | ' | ' | ' |
Number of credit agreements (agreements) | 2 | ' | ' | ' | ' | ' |
Credit agreement loan amount | 70 | ' | 70 | 70 | ' | ' |
Fixed annual interest rate (percent) | 7.00% | ' | ' | ' | ' | ' |
Interest income earned | ' | ' | 4.9 | 4.9 | 4.9 | ' |
Revenue from investment management services | ' | ' | $1.60 | $2.90 | $1.90 | ' |
Affiliate Subordinated Debentures due 2033 | ' | ' | ' | ' | ' | ' |
Impact Of Pooling Arrangement Amendment On Balance Sheet [Line Items] | ' | ' | ' | ' | ' | ' |
Interest rate (percent) | ' | ' | 4.44% | 4.51% | ' | ' |
3 month LIBOR | Affiliate Subordinated Debentures due 2033 | ' | ' | ' | ' | ' | ' |
Impact Of Pooling Arrangement Amendment On Balance Sheet [Line Items] | ' | ' | ' | ' | ' | ' |
Interest rate of Trust Securities payable quarterly (percent) | ' | 4.20% | ' | ' | ' | ' |
Transactions_with_Affiliates_S
Transactions with Affiliates - Schedule of Reinsurance Transactions on Balance Sheets for Pooling Arrangement (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Losses and loss expenses payable: | ' | ' |
Ceded | ($512.80) | ($493.60) |
Assumed | 950.8 | 928.7 |
Net losses and loss expenses payable | 438 | 435.1 |
Unearned premiums: | ' | ' |
Ceded | -407.9 | -395.8 |
Assumed | 486.3 | 477.7 |
Unearned Premiums From Affiliates | $78.40 | $81.90 |
Transactions_with_Affiliates_S1
Transactions with Affiliates - Schedule of Reinsurance Transactions on Income Statements for Pooling Arrangement (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Written premiums: | ' | ' | ' |
Ceded | ($866.30) | ($839.90) | ($796.20) |
Assumed | 1,062.10 | 1,055.30 | 1,284.60 |
Earned premiums: | ' | ' | ' |
Ceded | -855 | -809.2 | -803.6 |
Assumed from | 1,055 | 1,042.10 | 1,428.80 |
Losses and loss expenses incurred: | ' | ' | ' |
Ceded | 557.2 | -575.7 | -703 |
Assumed | 719.8 | 778.3 | 1,180 |
GAAP expense adjustments | $3 | $0.80 | $2.40 |
Notes_Payable_and_Credit_Facil1
Notes Payable and Credit Facility - Additional Information (Detail) (USD $) | 0 Months Ended | ||
Jul. 26, 2013 | Jul. 15, 2013 | Jul. 11, 2013 | |
Senior Notes | Federal Home Loan Bank of Cincinnati | ||
Debt Instrument [Line Items] | ' | ' | ' |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | ' | ' | $85,000,000 |
Federal home loan bank advances long-term, duration | ' | ' | '20 years |
Federal home loan bank advances, long-term non-callable period | ' | ' | '3 years |
Federal home loan Bank, advances, general debt obligations, disclosures, repayment and penalties | ' | ' | 0 |
Federal home loan bank, advances, branch of FHLB Bank, interest rate (percent) | ' | ' | 5.03% |
Debt instrument, issued | ' | 100,000,000 | ' |
Debt instrument redemption price paid | ' | 103,000,000 | ' |
Current borrowing capacity | 100,000,000 | ' | ' |
Expiration period | '5 years | ' | ' |
Maximum borrowing capacity under credit facility | $150,000,000 | ' | ' |
Federal_Income_Taxes_Reconcili
Federal Income Taxes - Reconciliation Between Actual Federal Income Tax Expense (Benefit) and Amount Computed at Indicated Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' |
Amount at statutory rate | $21.50 | $3.70 | ($39.20) |
Tax-exempt interest and dividends received deduction | -9.4 | -9.1 | -10.8 |
Other, net | 0.2 | 0.5 | -4.7 |
Valuation allowance | -11.8 | 4.8 | 103.3 |
Federal income tax expense (benefit) and effective rate | $0.50 | ($0.10) | $48.60 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' |
Amount at statutory rate (percent) | 35.00% | 35.00% | 35.00% |
Tax-exempt interest and dividends received deduction (percent) | -15.00% | -85.00% | 10.00% |
Other, net (percent) | 0.00% | 4.00% | 4.00% |
Valuation allowance (percent) | -19.00% | 45.00% | -92.00% |
Federal income tax expense (benefit) and effective rate (percent) | 1.00% | -1.00% | -43.00% |
Federal_Income_Taxes_Tax_Effec
Federal Income Taxes - Tax Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Unearned premiums not currently deductible | $33.80 | $33.40 |
Losses and loss expenses payable discounting | 21.6 | 25.2 |
Postretirement and pension benefits | 24.9 | 39.4 |
Realized loss on other-than-temporary impairment | 7.5 | 7.5 |
Other liabilities | 17.3 | 14.5 |
Net operating loss carryforward | 56.5 | 66.5 |
Tax credit carryforward | 1.7 | 0.9 |
Other | 9.2 | 7.9 |
Total deferred tax assets | 172.5 | 195.3 |
Deferred tax liabilities: | ' | ' |
Deferral of policy acquisition costs | 33.9 | 32.1 |
Net unrealized holding gains on investments | 44.1 | 61.7 |
Total deferred tax liabilities | 78 | 93.8 |
Total net deferred tax assets before valuation allowance | 94.5 | 101.5 |
Less valuation allowance | 82.6 | 100.5 |
Net deferred federal income taxes | $11.90 | $1 |
Federal_Income_Taxes_Additiona
Federal Income Taxes - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Net deferred tax asset valuation allowance | $82,600,000 | $100,500,000 |
Deferred tax asset related to net operating loss carryforwards | 56,500,000 | 66,500,000 |
Balance for uncertain tax positions | 0 | ' |
Interest and penalties payable | $0 | $0 |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Eligible age of years to participate in benefit plans | '20 years | ' | ' |
Eligible years of credit service required to participate in benefit plans | '5 years | ' | ' |
Maximum age of years required to participate in benefit plans | '65 years | ' | ' |
Postretirement plan's subsidy related to Medicare Prescription Drug Improvement and Modernization Act of 2003 | $100,000 | ' | ' |
Postretirement plan's estimated future subsidies | 200,000 | ' | ' |
Employer contribution | 13,000,000 | ' | ' |
Contributions of participant salary (percent) | 1.00% | ' | ' |
Matching contribution on participant's salary | 1 | ' | ' |
Matching contribution by the employer | 0.5 | ' | ' |
Company's share of expense under the plan | 4,600,000 | 4,500,000 | 4,800,000 |
Minimum | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Participant's contribution (percent) | 2.00% | ' | ' |
Maximum | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Participant's contribution (percent) | 6.00% | ' | ' |
Postretirement Benefit Costs | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer contribution | 0 | 0 | ' |
Postretirement Benefit Costs | Gross Benefit Payments | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Postretirement plan's gross benefit payments | $1,200,000 | ' | ' |
Pension_and_Postretirement_Ben3
Pension and Postretirement Benefit Plans - Summary of Pension and Postretirement Benefit Plans' Change in Benefit Obligation, Plan Assets and Funded Status (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in benefit obligation: | ' | ' | ' |
Actuarial (gain) loss | $32.50 | ($7.40) | ($69.80) |
Change in plan assets available for plan benefits: | ' | ' | ' |
Employer contribution | 13 | ' | ' |
Pension Costs | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 246.1 | 229.6 | ' |
Service cost | 6.1 | 7.8 | ' |
Interest cost | 9.6 | 9.9 | ' |
Actuarial (gain) loss | -19.6 | 10.6 | ' |
Benefits paid | -11.7 | -11.8 | ' |
The Companybs portion of benefit obligation at end of year | 230.5 | 246.1 | ' |
Change in plan assets available for plan benefits: | ' | ' | ' |
Fair value of plan assets available for plan benefits at beginning of year | 162.2 | 147.7 | ' |
Employer contribution | 13 | 13 | ' |
Actual return on plan assets | 22.4 | 13.3 | ' |
Benefits paid | -11.7 | -11.8 | ' |
The Companybs portion of fair value of plan assets at end of year | 185.9 | 162.2 | ' |
Supplemental executive retirement plan | -6 | -5.8 | ' |
Funded status at end of year | -50.6 | -89.7 | ' |
Accumulated benefit obligation end of year | 211.2 | 223 | ' |
Postretirement Benefit Costs | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 25.1 | 27.1 | ' |
Service cost | 0 | 0 | ' |
Interest cost | 1 | 1.1 | ' |
Actuarial (gain) loss | -2.6 | -1.6 | ' |
Benefits paid | -1.2 | -1.5 | ' |
The Companybs portion of benefit obligation at end of year | 22.3 | 25.1 | ' |
Change in plan assets available for plan benefits: | ' | ' | ' |
Fair value of plan assets available for plan benefits at beginning of year | 1.8 | 1.8 | ' |
Employer contribution | 0 | 0 | ' |
Actual return on plan assets | 0.3 | 0 | ' |
Benefits paid | -0.8 | 0 | ' |
The Companybs portion of fair value of plan assets at end of year | 1.3 | 1.8 | ' |
Supplemental executive retirement plan | 0 | 0 | ' |
Funded status at end of year | ($21) | ($23.30) | ' |
Pension_and_Postretirement_Ben4
Pension and Postretirement Benefit Plans - Company's Share of Amounts Included in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ' |
Prior service benefit | ($70.30) | ($75.60) |
Net actuarial loss | 94.3 | 135.7 |
Total | $24 | $60.10 |
Pension_and_Postretirement_Ben5
Pension and Postretirement Benefit Plans - Company's Share of Amortization Expected to be Recognized (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' |
Prior service benefit | ($7.80) |
Net actuarial loss | 6.3 |
Total | ($1.50) |
Pension_and_Postretirement_Ben6
Pension and Postretirement Benefit Plans - Company's Share of Net Periodic Cost Components (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortization of: | ' | ' | ' |
Prior service cost (benefit) | ($70.30) | ($75.60) | ' |
Pension | ' | ' | ' |
Components of net periodic cost: | ' | ' | ' |
Service cost | 6.1 | 7.8 | 8.5 |
Interest cost | 9.6 | 9.9 | 12.3 |
Expected return on plan assets | -12.2 | -11.7 | -14.6 |
Amortization of: | ' | ' | ' |
Prior service cost (benefit) | 0 | 0.3 | 0.3 |
Net actuarial loss | 8.1 | 6.7 | 7 |
Net periodic cost (benefit) | 11.6 | 13 | 13.5 |
Postretirement | ' | ' | ' |
Components of net periodic cost: | ' | ' | ' |
Service cost | 0.4 | 0 | 4.1 |
Interest cost | 1.2 | 1.1 | 5.1 |
Expected return on plan assets | -0.2 | -0.1 | -0.2 |
Amortization of: | ' | ' | ' |
Prior service cost (benefit) | -5.5 | -5.5 | -2.1 |
Net actuarial loss | 1 | 1.1 | 0.3 |
Net periodic cost (benefit) | ($3.10) | ($3.40) | $7.20 |
Pension_and_Postretirement_Ben7
Pension and Postretirement Benefit Plans-Company's Share of Expected Future Benefits Payments Schedule (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension | ' |
Schedule of Expected Future Pension Benefit Payment [Line Items] | ' |
2014 | $8.90 |
2015 | 9.3 |
2016 | 9.7 |
2017 | 10.2 |
2018 | 11 |
2019 - 2023 | 66.4 |
Postretirement | ' |
Schedule of Expected Future Pension Benefit Payment [Line Items] | ' |
2014 | 1.9 |
2015 | 1.9 |
2016 | 1.9 |
2017 | 1.9 |
2018 | 1.8 |
2019 - 2023 | $8 |
Pension_and_Postretirement_Ben8
Pension and Postretirement Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Plans' Obligations (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension | ' | ' |
Benefit obligations weighted-average assumptions: | ' | ' |
Discount rate (percent) | 4.85% | 4.05% |
Rates of increase in compensation levels (percent) | 3.50% | 4.00% |
Postretirement | ' | ' |
Benefit obligations weighted-average assumptions: | ' | ' |
Discount rate (percent) | 4.85% | 4.05% |
Rates of increase in compensation levels (percent) | 0.00% | 0.00% |
Pension_and_Postretirement_Ben9
Pension and Postretirement Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Plan's Net Periodic Cost (Detail) | 2 Months Ended | 10 Months Ended | 12 Months Ended | |||
Dec. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Pension | ' | ' | ' | ' | ' | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | |
Discount rate (percent) | ' | ' | 4.05% | 4.40% | 5.50% | |
Expected long-term rate of return on assets (percent) | ' | ' | 7.50% | 7.50% | 8.00% | |
Rates of increase in compensation levels (percent) | ' | ' | 4.00% | 4.00% | 4.00% | |
Postretirement | ' | ' | ' | ' | ' | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | |
Discount rate (percent) | 4.75% | [1] | 5.50% | 4.05% | 4.40% | ' |
Expected long-term rate of return on assets (percent) | ' | ' | 7.50% | 7.50% | 8.00% | |
Rates of increase in compensation levels (percent) | ' | ' | 0.00% | 0.00% | 0.00% | |
[1] | Due to the curtailment resulting from the postretirement benefit plan amendment, the expense was remeasured at NovemberB 1, 2011, using discount rate of 4.75%. |
Recovered_Sheet1
Pension and Postretirement Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Plan's Net Periodic Cost (Parenthetical) (Detail) (Postretirement Benefit Costs) | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Postretirement Benefit Costs | ' | ' | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | |
Discount rate (percent) | 4.75% | [1] | 5.50% | 4.05% | 4.40% |
[1] | Due to the curtailment resulting from the postretirement benefit plan amendment, the expense was remeasured at NovemberB 1, 2011, using discount rate of 4.75%. |
Recovered_Sheet2
Pension and Postretirement Benefit Plans - Schedule of Assumed Health Care Cost Trend Rates Used (Detail) (Postretirement) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Postretirement | ' | ' | ' |
Assumed health care cost trend rates: | ' | ' | ' |
Health care cost trend rate assumed for the next year (percent) | 10.00% | 10.00% | 10.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (percent) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | '2018 | '2017 | '2016 |
Recovered_Sheet3
Pension and Postretirement Benefit Plans - Summary on Effective Impact of Assumed Health Care Cost Trend Rates on Amounts Reported for Postretirement Plan (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
One percentage point change: | ' |
Effect on total service and interest cost | $0.10 |
Effect on accumulated postretirement benefit obligation | 2.7 |
Postretirement | ' |
One percentage point change: | ' |
Effect on total service and interest cost | -0.1 |
Effect on accumulated postretirement benefit obligation | ($2.40) |
Recovered_Sheet4
Pension and Postretirement Benefit Plans - Summary of Asset Allocation Targets (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Asset Category: | ' |
Asset allocation target (percent) | 100.00% |
Fixed maturity | ' |
Asset Category: | ' |
Asset allocation target (percent) | 36.00% |
Large-cap securities | ' |
Asset Category: | ' |
Asset allocation target (percent) | 33.00% |
Small-cap securities | ' |
Asset Category: | ' |
Asset allocation target (percent) | 14.00% |
International equity | ' |
Asset Category: | ' |
Asset allocation target (percent) | 12.00% |
Emerging market equity | ' |
Asset Category: | ' |
Asset allocation target (percent) | 5.00% |
Recovered_Sheet5
Pension and Postretirement Benefit Plans - Company's Share of Pension Plans' Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | $2,176.30 | $2,197.90 |
Pension | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 175.6 | 160.7 |
Pension | International instruments | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 25.4 | 20 |
Pension | Fixed maturities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 65.9 | 51.7 |
Pension | Fixed maturities: | U.S. treasury securities and obligations of U.S. government agencies | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 30 | 30.4 |
Pension | Fixed maturities: | Corporate securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 24.6 | 7.4 |
Pension | Fixed maturities: | U.S. government agencies mortgage-backed securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 11.3 | 13.9 |
Pension | Equity securities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 84.3 | 84.9 |
Pension | Equity securities: | Large-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 58 | 60.8 |
Pension | Equity securities: | Small-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 26.3 | 24.1 |
Pension | Short-term money market funds | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | 4.1 |
Pension | Quoted prices in active markets for identical assets (Level 1) | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 84.3 | 89 |
Pension | Quoted prices in active markets for identical assets (Level 1) | International instruments | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Fixed maturities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Fixed maturities: | U.S. treasury securities and obligations of U.S. government agencies | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Fixed maturities: | Corporate securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Fixed maturities: | U.S. government agencies mortgage-backed securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Equity securities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 84.3 | 84.9 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Equity securities: | Large-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 58 | 60.8 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Equity securities: | Small-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 26.3 | 24.1 |
Pension | Quoted prices in active markets for identical assets (Level 1) | Short-term money market funds | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | 4.1 |
Pension | Significant other observable inputs (Level 2) | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 91.3 | 71.7 |
Pension | Significant other observable inputs (Level 2) | International instruments | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 25.4 | 20 |
Pension | Significant other observable inputs (Level 2) | Fixed maturities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 65.9 | 51.7 |
Pension | Significant other observable inputs (Level 2) | Fixed maturities: | U.S. treasury securities and obligations of U.S. government agencies | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 30 | 30.4 |
Pension | Significant other observable inputs (Level 2) | Fixed maturities: | Corporate securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 24.6 | 7.4 |
Pension | Significant other observable inputs (Level 2) | Fixed maturities: | U.S. government agencies mortgage-backed securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 11.3 | 13.9 |
Pension | Significant other observable inputs (Level 2) | Equity securities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Significant other observable inputs (Level 2) | Equity securities: | Large-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Significant other observable inputs (Level 2) | Equity securities: | Small-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Pension | Significant other observable inputs (Level 2) | Short-term money market funds | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | $0 |
Recovered_Sheet6
Pension and Postretirement Benefit Plans - Company's Share of Postretirement Plans' Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | $2,176.30 | $2,197.90 |
Postretirement | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 1 | 1.9 |
Postretirement | Fixed maturities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.2 | 0.7 |
Postretirement | Fixed maturities: | U.S. treasury securities and obligations of U.S. government agencies [Member] | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | 0.5 |
Postretirement | Fixed maturities: | Corporate securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.2 | 0.2 |
Postretirement | Equity securities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.8 | 0.7 |
Postretirement | Equity securities: | Large-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.8 | 0.7 |
Postretirement | Short-term money market funds | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | 0.5 |
Quoted prices in active markets for identical assets (Level 1) | Postretirement | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.8 | 1.2 |
Quoted prices in active markets for identical assets (Level 1) | Postretirement | Fixed maturities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Postretirement | Fixed maturities: | U.S. treasury securities and obligations of U.S. government agencies [Member] | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | 0 |
Quoted prices in active markets for identical assets (Level 1) | Postretirement | Fixed maturities: | Corporate securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Postretirement | Equity securities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.8 | 0.7 |
Quoted prices in active markets for identical assets (Level 1) | Postretirement | Equity securities: | Large-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.8 | 0.7 |
Quoted prices in active markets for identical assets (Level 1) | Postretirement | Short-term money market funds | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | 0.5 |
Significant other observable inputs (Level 2) | Postretirement | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.2 | 0.7 |
Significant other observable inputs (Level 2) | Postretirement | Fixed maturities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.2 | 0.7 |
Significant other observable inputs (Level 2) | Postretirement | Fixed maturities: | U.S. treasury securities and obligations of U.S. government agencies [Member] | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | 0.5 |
Significant other observable inputs (Level 2) | Postretirement | Fixed maturities: | Corporate securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0.2 | 0.2 |
Significant other observable inputs (Level 2) | Postretirement | Equity securities: | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Significant other observable inputs (Level 2) | Postretirement | Equity securities: | Large-cap securities | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | 0 | 0 |
Significant other observable inputs (Level 2) | Postretirement | Short-term money market funds | ' | ' |
Schedule Of Available For Sale Securities Fair Value Hierarchy [Line Items] | ' | ' |
Asset Available-for-sale, at fair value | ' | $0 |
Other_Comprehensive_Income_and2
Other Comprehensive Income and Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income by Component, Net of Tax (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | $84.20 | $63.80 | ($7.90) |
Other comprehensive income before reclassifications | 16.4 | 46.7 | 108.6 |
Amounts reclassified from AOCI | -19.8 | -26.3 | -36.9 |
Net current period other comprehensive income | -3.4 | 20.4 | 71.7 |
Ending balance | 80.8 | 84.2 | 63.8 |
Unrealized Gains and Losses on Available-for-Sale Securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | 124 | 98.7 | 71.3 |
Other comprehensive income before reclassifications | -16.1 | 54.1 | 52.1 |
Amounts reclassified from AOCI | -23.3 | -28.8 | -24.7 |
Net current period other comprehensive income | -39.4 | 25.3 | 27.4 |
Ending balance | 84.6 | 124 | 98.7 |
Gains and Losses on Cash Flow Hedges | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | 0.1 | 0.2 | 0.3 |
Other comprehensive income before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | -0.1 | -0.1 | -0.1 |
Net current period other comprehensive income | -0.1 | -0.1 | -0.1 |
Ending balance | 0 | 0.1 | 0.2 |
Benefit Plan Items | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' |
Beginning balance | -39.9 | -35.1 | -79.5 |
Other comprehensive income before reclassifications | 32.5 | -7.4 | 56.5 |
Amounts reclassified from AOCI | 3.6 | 2.6 | -12.1 |
Net current period other comprehensive income | 36.1 | -4.8 | 44.4 |
Ending balance | ($3.80) | ($39.90) | ($35.10) |
Other_Comprehensive_Income_and3
Other Comprehensive Income and Accumulated Other Comprehensive Income - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Realized gain on sale of securities | $23.20 | $29 | $37 |
Tax benefit | -0.5 | 0.1 | -48.6 |
Total reclassifications for the period | 19.8 | 26.3 | 36.9 |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total reclassifications for the period | 19.8 | 26.3 | 36.9 |
Unrealized Gains and Losses on Available-for-Sale Securities | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total reclassifications for the period | 23.3 | 28.8 | 24.7 |
Unrealized Gains and Losses on Available-for-Sale Securities | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Realized gain on sale of securities | 23.2 | 28.8 | 24.7 |
Total before tax | 23.2 | 28.8 | 24.7 |
Tax benefit | 0.1 | 0 | 0 |
Net of tax | 23.3 | 28.8 | 24.7 |
Gains and Losses on Cash Flow Hedges | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total reclassifications for the period | 0.1 | 0.1 | 0.1 |
Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Realized gain on sale of securities | 0.1 | 0.1 | 0.1 |
Total before tax | 0.1 | 0.1 | 0.1 |
Tax benefit | 0 | 0 | 0 |
Net of tax | 0.1 | 0.1 | 0.1 |
Benefit Plan Items | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total reclassifications for the period | -3.6 | -2.6 | 12.1 |
Benefit Plan Items | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total before tax | -3.6 | -2.6 | 12.1 |
Tax benefit | 0 | 0 | 0 |
Net of tax | -3.6 | -2.6 | 12.1 |
Negative prior service costs | 5.5 | 5.2 | 19 |
Net loss | ($9.10) | ($7.80) | ($6.90) |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Amount of dividends available for distributions without prior approval | $75.30 | ' | ' |
Statutory surplus in excess of authorized level, no remedial action required (percent) | 200.00% | ' | ' |
Statutory surplus in excess of authorized level, level maintained by company and subsidiaries (percent) | 450.00% | ' | ' |
State Auto Financial | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Dividends received from insurance subsidiaries | $10 | $20 | $0 |
Stockholders_Equity_Reconcilia
Stockholders' Equity - Reconciliations of Statutory Capital and Surplus and Net Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory capital and surplus of insurance subsidiaries | $753.20 | ' | ' | ' | $630.10 | ' | ' | ' | $753.20 | $630.10 | ' | ' |
Net liabilities of non-insurance parent and affiliates | -82.4 | ' | ' | ' | -74.8 | ' | ' | ' | -82.4 | -74.8 | ' | ' |
Total | 670.8 | ' | ' | ' | 555.3 | ' | ' | ' | 670.8 | 555.3 | ' | ' |
Increases (decreases): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred acquisition costs | 96.8 | ' | ' | ' | 91.7 | ' | ' | ' | 96.8 | 91.7 | 91.7 | 118.5 |
Postretirement and pension benefits | 6.3 | ' | ' | ' | 6.6 | ' | ' | ' | 6.3 | 6.6 | ' | ' |
Deferred federal income taxes | -15.8 | ' | ' | ' | -38 | ' | ' | ' | -15.8 | -38 | ' | ' |
Fixed maturities at fair value | 26.1 | ' | ' | ' | 128.5 | ' | ' | ' | 26.1 | 128.5 | ' | ' |
Other, net | 0.8 | ' | ' | ' | -6.9 | ' | ' | ' | 0.8 | -6.9 | ' | ' |
Stockholdersb equity per accompanying consolidated financial statements | 785 | ' | ' | ' | 737.2 | ' | ' | ' | 785 | 737.2 | 723.8 | ' |
Statutory net (loss) income of insurance subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 51.1 | 5.5 | -64.6 | ' |
Net income (loss) of non-insurance parent and affiliates | ' | ' | ' | ' | ' | ' | ' | ' | -5.1 | 0.2 | 1.9 | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | -46 | -5.7 | 62.7 | ' |
Deferred acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | 5.1 | 0 | -26.8 | ' |
Postretirement and pension benefits | ' | ' | ' | ' | ' | ' | ' | ' | 10.3 | 5.3 | -2.5 | ' |
Deferred federal income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -3.3 | -59.5 | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | -1.3 | -2.7 | -2.9 | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | 5.7 | -6.3 | ' |
Net income (loss) | $16.40 | $18.50 | $6.20 | $19.70 | $20.90 | ($5.50) | ($2.70) | ($2) | $60.80 | $10.70 | ($160.70) | ' |
Preferred_Stock_Preferred_Stoc
Preferred Stock Preferred Stock (Details) | 12 Months Ended |
Dec. 31, 2013 | |
quarter | |
class_of_stock | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' |
Number of authorized classes of preferred stock (class of stock) | 2 |
Minimum number of quarters dividends are paid in arrears (minimum of 6 quarters) | 6 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock options granted (shares) | 500,000 | 400,000 | 600,000 |
Common shares valued (shares) | $118,800,000 | $118,100,000 | ' |
Total intrinsic value of stock options exercised | 500,000 | 0 | 100,000 |
Tax benefit for tax deductions from share-based awards | 0 | 0 | 0 |
Aggregate intrinsic value for total options outstanding | 14,000,000 | ' | ' |
Aggregate intrinsic value for total options exercisable | 5,300,000 | ' | ' |
Share-based compensation | 4,100,000 | 3,500,000 | 3,200,000 |
Equity Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock shares reserved (shares) | 3,000,000 | ' | ' |
Common shares available for issuance (shares) | 1,100,000 | ' | ' |
Percentage of common shares authorized for issuance (percent) | 33.00% | ' | ' |
Stock options awards description | 'the maximum number of common shares subject to awards of stock options, restricted shares and performance shares that may be granted in any calendar year is equal to 1.5% of the total number of common shares of the Company outstanding as of DecemberB 31 of the prior year | ' | ' |
Maximum number of common shares available for awards of stock options (shares) | 250,000 | ' | ' |
Termination date | 'MayB 8, 2019 | ' | ' |
Share based compensation expiration period | '10 years | ' | ' |
Stock options granted (shares) | 500,000 | 300,000 | 600,000 |
Unrecognized compensation cost related to non-vested restricted share | 100,000 | ' | ' |
Remaining unrecognized compensation cost to be recognized in years | '1 year 2 months 30 days | ' | ' |
Equity Plan | Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock vesting percentage three years after grant date (percent) | 100.00% | ' | ' |
Equity Plan | Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Vesting percent (percent) | 33.33% | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock shares reserved (shares) | 3,400,000 | ' | ' |
Percentage of annual base earnings (percent) | 6.00% | ' | ' |
Purchase price of the common shares (percent) | 85.00% | ' | ' |
Common shares purchased under this plan | 3,100,000 | ' | ' |
Outside Directors Plan | Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted share units issued to non employee directors (shares) | 1,400 | ' | ' |
Restricted stock units awarded to directors, award vesting period | '6 months | ' | ' |
RSU Plan automatically termination date | '2015-05-31T00:00:00 | ' | ' |
RSUs granted in period (shares) | 33,712 | 26,480 | 23,928 |
Common shares valued (shares) | 51,000 | 39,000 | ' |
Outside Directors Plan | Restricted Stock Units (RSUs) | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of RSU awards granted to each outside director (shares) | 5,000 | ' | ' |
Outside Directors Plan | Restricted Stock Units (RSUs) | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of RSU awards granted to each outside director (shares) | 500 | ' | ' |
Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost related to non-vested restricted share | $2,500,000 | ' | ' |
Remaining unrecognized compensation cost to be recognized in years | '3 years | ' | ' |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Non-Vested and Vested Restricted Shares and Changes (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Shares | ' | ' | ' |
Outstanding, beginning of year (shares) | 55,413 | 33,887 | 17,180 |
Granted (shares) | 0 | 21,526 | 16,707 |
Vested (shares) | -17,180 | 0 | 0 |
Outstanding, end of year (shares) | 38,233 | 55,413 | 33,887 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Outstanding, beginning of year (usd per share) | $16.21 | $17.92 | $18.78 |
Granted (usd per share) | $0 | $13.53 | $17.03 |
Vested (usd per share) | $18.78 | $0 | $0 |
Outstanding, end of year (usd per share) | $15.06 | $16.21 | $17.92 |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Fair Values and Related Assumptions for Options Granted (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation [Abstract] | ' | ' | ' |
Fair value per share (usd per share) | $5.15 | $3.46 | $4.69 |
Expected dividend yield (percent) | 2.40% | 4.41% | 3.51% |
Risk free interest rate (percent) | 1.26% | 1.10% | 2.50% |
Expected volatility factor (percent) | 37.59% | 41.50% | 34.90% |
Expected life in years | '6 years 3 months 18 days | '5 years 4 months 24 days | '6 years 3 months 18 days |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Shares | ' | ' | ' |
Options Outstanding, beginning of year | 3.9 | 3.8 | 3.4 |
Granted | 0.5 | 0.4 | 0.6 |
Options, Exercised | -0.2 | 0 | 0 |
Options, Canceled | -0.3 | -0.3 | -0.2 |
Options Outstanding, end of year | 3.9 | 3.9 | 3.8 |
Weighted- Average Exercise Price | ' | ' | ' |
Outstanding, beginning of year (usd per share) | $22.25 | $22.79 | $23.53 |
Granted (usd per share) | $16.82 | $13.54 | $16.98 |
Exercised (usd per share) | $16.82 | $14.49 | $16.40 |
Canceled (usd per share) | $19.52 | $17.95 | $18.94 |
Outstanding, end of year (usd per share) | $22.01 | $22.25 | $22.79 |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Stock Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule Of Share Based Compensation Arrangement [Line Items] | ' | ' | ' | ' |
Number (shares) | 3.9 | 3.9 | 3.8 | 3.4 |
Weighted- Average Remaining Contractual Life | '4 years 9 months 18 days | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $22.01 | $22.25 | $22.79 | $23.53 |
Number (shares) | 2.9 | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $24.02 | ' | ' | ' |
$10.01 - $20.00 | ' | ' | ' | ' |
Schedule Of Share Based Compensation Arrangement [Line Items] | ' | ' | ' | ' |
Exercise price range, lower range limit | $10.01 | ' | ' | ' |
Exercise price range, upper range limit | $20 | ' | ' | ' |
Number (shares) | 2.2 | ' | ' | ' |
Weighted- Average Remaining Contractual Life | '6 years 8 months 12 days | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $16.47 | ' | ' | ' |
Number (shares) | 1.2 | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $16.83 | ' | ' | ' |
$20.01 - $30.00 | ' | ' | ' | ' |
Schedule Of Share Based Compensation Arrangement [Line Items] | ' | ' | ' | ' |
Exercise price range, lower range limit | $20.01 | ' | ' | ' |
Exercise price range, upper range limit | $30 | ' | ' | ' |
Number (shares) | 1 | ' | ' | ' |
Weighted- Average Remaining Contractual Life | '2 years 10 months 24 days | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $27.18 | ' | ' | ' |
Number (shares) | 1 | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $27.27 | ' | ' | ' |
Greater than $30.00 | ' | ' | ' | ' |
Schedule Of Share Based Compensation Arrangement [Line Items] | ' | ' | ' | ' |
Exercise price range, lower range limit | $30.01 | ' | ' | ' |
Number (shares) | 0.7 | ' | ' | ' |
Weighted- Average Remaining Contractual Life | '1 year 4 months 24 days | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $32.10 | ' | ' | ' |
Number (shares) | 0.7 | ' | ' | ' |
Weighted- Average Exercise Price (usd per share) | $32.10 | ' | ' | ' |
Recovered_Sheet7
Net Earnings (Loss) per Common Share - Compilation of Basic and Diluted Net (Loss) Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (loss) for basic net earnings per common share | $16.40 | $18.50 | $6.20 | $19.70 | $20.90 | ($5.50) | ($2.70) | ($2) | $60.80 | $10.70 | ($160.70) |
Effect of dilutive share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Adjusted net earnings (loss) for dilutive net earnings (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | $60.80 | $10.70 | ($160.70) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares for basic net earnings (loss) per common share (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 40.6 | 40.4 | 40.1 |
Effect of dilutive share-based awards (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.1 | 0.1 |
Adjusted weighted average shares for diluted net earnings (loss) per common share (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 40.7 | 40.5 | 40.2 |
Basic net earnings (loss) per common share (usd per share) | $0.40 | $0.46 | $0.15 | $0.49 | $0.52 | ($0.14) | ($0.07) | ($0.05) | $1.50 | $0.26 | ($4) |
Diluted net earnings (loss) per common share (usd per share) | $0.40 | $0.45 | $0.15 | $0.49 | $0.51 | ($0.14) | ($0.07) | ($0.05) | $1.49 | $0.26 | ($4) |
Recovered_Sheet8
Net Earnings (Loss) per Common Share - Options to Purchase Shares of Common Stock (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of options and awards (shares) | 2.6 | 3.7 | 3.3 |
Reportable_Segments_Additional
Reportable Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2012 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments (segment) | 4 |
Reportable_Segments_Financial_
Reportable Segments - Financial Information Regarding Company's Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earned premiums | ' | ' | ' | ' | ' | ' | ' | ' | $1,055 | $1,042.10 | $1,428.80 |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 72.8 | 75.4 | 85.4 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 61.3 | 10.6 | -112.1 |
Intersegment revenues | 289.7 | 292.7 | 285.3 | 285.3 | 296.7 | 286.4 | 286.7 | 280.3 | 1,153 | 1,150.10 | 1,553.70 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 61.3 | 10.6 | -112.1 |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 72.8 | 75.4 | 85.4 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 61.3 | 10.6 | -112.1 |
Segment assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total segment assets | 2,331.60 | ' | ' | ' | 2,327.40 | ' | ' | ' | 2,331.60 | 2,327.40 | ' |
Reconciling items: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consolidated assets | 2,496.40 | ' | ' | ' | 2,477.80 | ' | ' | ' | 2,496.40 | 2,477.80 | ' |
Total investment operations segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total segment assets | 2,331.60 | ' | ' | ' | 2,327.40 | ' | ' | ' | 2,331.60 | 2,327.40 | ' |
Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | -5.1 | -9.5 | -10.5 |
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciling items: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consolidated assets | 164.8 | ' | ' | ' | 150.4 | ' | ' | ' | 164.8 | 150.4 | ' |
Reportable segments | Personal insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earned premiums | ' | ' | ' | ' | ' | ' | ' | ' | 464 | 469.8 | 800.6 |
Reportable segments | Business insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earned premiums | ' | ' | ' | ' | ' | ' | ' | ' | 364.2 | 327.2 | 379 |
Reportable segments | Specialty insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earned premiums | ' | ' | ' | ' | ' | ' | ' | ' | 226.8 | 245.1 | 249.2 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -11.2 | -48.1 | -46.6 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -11.2 | -48.1 | -46.6 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -11.2 | -48.1 | -46.6 |
Reportable segments | Total insurance segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earned premiums | ' | ' | ' | ' | ' | ' | ' | ' | 1,055 | 1,042.10 | 1,428.80 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -34 | -92 | -184.9 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -34 | -92 | -184.9 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -34 | -92 | -184.9 |
Reportable segments | Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 72.8 | 75.4 | 85.4 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 72.8 | 75.4 | 85.4 |
Reportable segments | Net realized capital gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 23.2 | 28.8 | 38.1 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 23.2 | 28.8 | 38.1 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 23.2 | 28.8 | 38.1 |
Reportable segments | Total investment operations segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total investment operations segment | ' | ' | ' | ' | ' | ' | ' | ' | 96 | 104.2 | 123.5 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total investment operations segment | ' | ' | ' | ' | ' | ' | ' | ' | 96 | 104.2 | 123.5 |
Reportable segments | Reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,151 | 1,146.30 | 1,552.30 |
Reportable segments | All other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | 2 | -0.5 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | 2 | -0.5 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | 2 | -0.5 |
Reportable segments | Personal insurance SAP underwriting loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -12.6 | -1.6 | -67.4 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -12.6 | -1.6 | -67.4 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -12.6 | -1.6 | -67.4 |
Reportable segments | Business insurance SAP underwriting loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -10.2 | -42.3 | -70.9 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -10.2 | -42.3 | -70.9 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -10.2 | -42.3 | -70.9 |
All other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -1.6 | -3.6 | -50.2 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -1.6 | -3.6 | -50.2 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -1.6 | -3.6 | -50.2 |
All other | All other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 3.8 | 1.4 |
All other | GAAP adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 11.8 | 7.2 | -40.7 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 11.8 | 7.2 | -40.7 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | 11.8 | 7.2 | -40.7 |
All other | Interest expense on corporate debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -8.5 | -7 | -7.1 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -8.5 | -7 | -7.1 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -8.5 | -7 | -7.1 |
All other | Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -4.9 | -3.8 | -2.4 |
Segment loss before federal income tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -4.9 | -3.8 | -2.4 |
Income (loss) before federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | -4.9 | -3.8 | -2.4 |
Intersegment revenues | Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5.1 | 9.5 | 10.5 |
External and Intersegment Sources | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,158.10 | 1,159.60 | 1,564.20 |
Total consolidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external sources: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | $1,153 | $1,150.10 | $1,553.70 |
Quarterly_Financial_Data_Sched
Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $289.70 | $292.70 | $285.30 | $285.30 | $296.70 | $286.40 | $286.70 | $280.30 | $1,153 | $1,150.10 | $1,553.70 |
Income before federal income taxes | 16.3 | 18.7 | 6.3 | 20 | 20.9 | -5.6 | -2.7 | -2 | ' | ' | ' |
Net income | $16.40 | $18.50 | $6.20 | $19.70 | $20.90 | ($5.50) | ($2.70) | ($2) | $60.80 | $10.70 | ($160.70) |
Earnings (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (usd per share) | $0.40 | $0.46 | $0.15 | $0.49 | $0.52 | ($0.14) | ($0.07) | ($0.05) | $1.50 | $0.26 | ($4) |
Diluted (usd per share) | $0.40 | $0.45 | $0.15 | $0.49 | $0.51 | ($0.14) | ($0.07) | ($0.05) | $1.49 | $0.26 | ($4) |
Recovered_Sheet9
Schedule I - Summary of Investments - Other Than Investments in Related Parties (Detail) (USD $) | Dec. 31, 2013 | |
In Millions, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | $2,055.10 | [1] |
Fair value | 2,181.30 | |
Amount at which shown in the balance sheet | 2,181.30 | |
Equity securities: | Available-for-sale: | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 196.6 | [1] |
Fair value | 265.3 | |
Amount at which shown in the balance sheet | 265.3 | |
Other invested assets | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 5 | [1] |
Fair value | 5 | |
Amount at which shown in the balance sheet | 5 | |
Available-for-sale: | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 2,050.10 | [1] |
Fair value | 2,176.30 | |
Amount at which shown in the balance sheet | 2,176.30 | |
Available-for-sale: | Fixed maturities: | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 1,804 | [1] |
Fair value | 1,830.10 | |
Amount at which shown in the balance sheet | 1,830.10 | |
Available-for-sale: | Fixed maturities: | U.S. treasury securities and obligations of U.S. government agencies | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 345.5 | [1] |
Fair value | 352.4 | |
Amount at which shown in the balance sheet | 352.4 | |
Available-for-sale: | Fixed maturities: | Obligations of states and political subdivisions | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 765.3 | [1] |
Fair value | 774.2 | |
Amount at which shown in the balance sheet | 774.2 | |
Available-for-sale: | Fixed maturities: | Corporate securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 345 | [1] |
Fair value | 349.7 | |
Amount at which shown in the balance sheet | 349.7 | |
Available-for-sale: | Fixed maturities: | U.S. government agencies residential mortgage-backed securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 348.2 | [1] |
Fair value | 353.8 | |
Amount at which shown in the balance sheet | 353.8 | |
Available-for-sale: | Equity securities: | Large-cap securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 148.2 | [1] |
Fair value | 194.4 | |
Amount at which shown in the balance sheet | 194.4 | |
Available-for-sale: | Equity securities: | Small-cap securities | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 48.4 | [1] |
Fair value | 70.9 | |
Amount at which shown in the balance sheet | 70.9 | |
Available-for-sale: | Other invested assets | ' | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' | |
Cost or amortized cost | 49.5 | [1] |
Fair value | 80.9 | |
Amount at which shown in the balance sheet | $80.90 | |
[1] | Text selection found with no content. |
Recovered_Sheet10
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Assets | ' | ' | ' | ' |
Fixed maturities, available-for-sale, at fair value | $1,830,100,000 | $1,905,100,000 | ' | ' |
Equity securities, available-for-sale, at fair value | 265,300,000 | 228,400,000 | ' | ' |
Other invested assets | 5,000,000 | 500,000 | ' | ' |
Cash and cash equivalents | 80,300,000 | 59,000,000 | ' | ' |
Other assets | -800,000 | 6,900,000 | ' | ' |
Federal income tax, net | 11,900,000 | 1,000,000 | ' | ' |
Total assets | 2,496,400,000 | 2,477,800,000 | ' | ' |
Liabilities and Stockholdersb Equity | ' | ' | ' | ' |
Notes payable (affiliates $116.8 and $15.5, respectively) | 100,800,000 | 115,900,000 | ' | ' |
Other liabilities | 86,800,000 | 79,300,000 | ' | ' |
Total liabilities | 1,711,400,000 | 1,740,600,000 | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Common stock, without par value. Authorized 100.0 shares; 47.5 and 47.3 issued, respectively, at stated value of $2.50 per share | 118,800,000 | 118,100,000 | ' | ' |
Treasury stock, 6.8 and 6.8 shares, respectively, at cost | -115,900,000 | -115,800,000 | ' | ' |
Additional paid-in capital | 137,500,000 | 131,600,000 | ' | ' |
Accumulated other comprehensive income | 80,800,000 | 84,200,000 | 63,800,000 | -7,900,000 |
Retained earnings | 563,800,000 | 519,100,000 | ' | ' |
Stockholdersb equity per accompanying consolidated financial statements | 785,000,000 | 737,200,000 | 723,800,000 | ' |
Total liabilities and stockholders' equity | 2,496,400,000 | 2,477,800,000 | ' | ' |
Class A Preferred stock | ' | ' | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Preferred stock, value | 0 | 0 | ' | ' |
Class B Preferred stock | ' | ' | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Preferred stock, value | 0 | 0 | ' | ' |
State Auto Financial | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in common stock of subsidiaries (equity method) | 891,100,000 | 834,900,000 | ' | ' |
Fixed maturities, available-for-sale, at fair value | 1,600,000 | 5,900,000 | ' | ' |
Equity securities, available-for-sale, at fair value | 0 | 3,200,000 | ' | ' |
Other invested assets | 2,600,000 | 2,100,000 | ' | ' |
Cash and cash equivalents | 6,100,000 | 7,000,000 | 8,400,000 | 4,300,000 |
Other assets | 400,000 | 1,600,000 | ' | ' |
Due from affiliates | 1,500,000 | 1,800,000 | ' | ' |
Federal income tax, net | 4,600,000 | 1,300,000 | ' | ' |
Total assets | 907,900,000 | 857,800,000 | ' | ' |
Liabilities and Stockholdersb Equity | ' | ' | ' | ' |
Notes payable (affiliates $116.8 and $15.5, respectively) | 116,800,000 | 115,900,000 | ' | ' |
Other liabilities | 6,100,000 | 4,700,000 | ' | ' |
Total liabilities | 122.9 | 120.6 | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Common stock, without par value. Authorized 100.0 shares; 47.5 and 47.3 issued, respectively, at stated value of $2.50 per share | 118,800,000 | 118,100,000 | ' | ' |
Treasury stock, 6.8 and 6.8 shares, respectively, at cost | -115,900,000 | -115,800,000 | ' | ' |
Additional paid-in capital | 137,500,000 | 131,600,000 | ' | ' |
Accumulated other comprehensive income | 80,800,000 | 84,200,000 | ' | ' |
Retained earnings | 563,800,000 | 519,100,000 | ' | ' |
Stockholdersb equity per accompanying consolidated financial statements | 785,000,000 | 737,200,000 | ' | ' |
Total liabilities and stockholders' equity | 907,900,000 | 857,800,000 | ' | ' |
State Auto Financial | Class A Preferred stock | ' | ' | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Preferred stock, value | 0 | 0 | ' | ' |
State Auto Financial | Class B Preferred stock | ' | ' | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Preferred stock, value | $0 | $0 | ' | ' |
Schedule_II_Condensed_Financia1
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Notes payable, affiliates | $15.50 | $15.50 |
Common stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (shares) | 47,500,000 | 47,300,000 |
Common stock, stated value per share (usd per share) | $2.50 | $2.50 |
Treasury stock, shares (shares) | 6,800,000 | 6,800,000 |
Class A Preferred stock | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Preferred stock, shares authorized (shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Class B Preferred stock | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Preferred stock, shares authorized (shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
State Auto Financial | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Notes payable, affiliates | $116.80 | $15.50 |
Common stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (shares) | 47,500,000 | 47,300,000 |
Common stock, stated value per share (usd per share) | $2.50 | $2.50 |
Treasury stock, shares (shares) | 6,800,000 | 6,800,000 |
State Auto Financial | Class A Preferred stock | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Preferred stock, shares authorized (shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
State Auto Financial | Class B Preferred stock | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Preferred stock, shares authorized (shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Schedule_II_Condensed_Financia2
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | $72.80 | $75.40 | $85.40 |
Net realized gain on investments | ' | ' | ' | ' | ' | ' | ' | ' | 23.2 | 29 | 37 |
Total revenues | 289.7 | 292.7 | 285.3 | 285.3 | 296.7 | 286.4 | 286.7 | 280.3 | 1,153 | 1,150.10 | 1,553.70 |
Interest expense (affiliates $0.7, $0.7 and $0.7, respectively) | ' | ' | ' | ' | ' | ' | ' | ' | 8.5 | 7 | 7.1 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 8.6 | 8.3 | 8.6 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,091.70 | 1,139.50 | 1,665.80 |
Income (loss) before federal income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 61.3 | 10.6 | -112.1 |
Federal income tax (benefit) expense | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | -0.1 | 48.6 |
Net income (loss) | 16.4 | 18.5 | 6.2 | 19.7 | 20.9 | -5.5 | -2.7 | -2 | 60.8 | 10.7 | -160.7 |
State Auto Financial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.2 | 0.6 |
Net realized gain on investments | ' | ' | ' | ' | ' | ' | ' | ' | 0.7 | 0.4 | 0.7 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0.6 | 1.3 |
Interest expense (affiliates $0.7, $0.7 and $0.7, respectively) | ' | ' | ' | ' | ' | ' | ' | ' | 8.8 | 7 | 7.1 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 6.8 | 5.8 | 4.2 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 15.6 | 12.8 | 11.3 |
Income (loss) before federal income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -14.6 | -12.2 | -10 |
Federal income tax (benefit) expense | ' | ' | ' | ' | ' | ' | ' | ' | -4.8 | -1.7 | 8.6 |
Net loss before equity in net income (loss) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -9.8 | -10.5 | -18.6 |
Equity in net income (loss) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 70.6 | 21.2 | -142.1 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $60.80 | $10.70 | ($160.70) |
Schedule_II_Condensed_Financia3
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Income (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Interest expense, affiliates | $3.20 | $0.70 | $0.70 |
State Auto Financial | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Interest expense, affiliates | $3.20 | $0.70 | $0.70 |
Schedule_II_Condensed_Financia4
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $16.40 | $18.50 | $6.20 | $19.70 | $20.90 | ($5.50) | ($2.70) | ($2) | $60.80 | $10.70 | ($160.70) |
Net unrealized holding gains on investments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized holding gain arising during the year | ' | ' | ' | ' | ' | ' | ' | ' | -27.1 | 53.5 | 80.2 |
Reclassification adjustments for gains realized in net income | ' | ' | ' | ' | ' | ' | ' | ' | -23.2 | -28.8 | -38.1 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 10.9 | 0.6 | -14.7 |
Total net unrealized holding (losses) gains on investments | ' | ' | ' | ' | ' | ' | ' | ' | -39.4 | 25.3 | 27.4 |
Other comprehensive (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -3.4 | 20.4 | 71.7 |
Comprehensive Income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 57.4 | 31.1 | -89 |
State Auto Financial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 60.8 | 10.7 | -160.7 |
Net unrealized holding gains on investments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized holding gain arising during the year | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.7 | -0.1 |
Reclassification adjustments for gains realized in net income | ' | ' | ' | ' | ' | ' | ' | ' | -0.7 | -0.4 | -0.7 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0.3 |
Total net unrealized holding (losses) gains on investments | ' | ' | ' | ' | ' | ' | ' | ' | -0.2 | 0.3 | -0.5 |
Unrealized equity in subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -3.2 | 20.1 | 72.2 |
Other comprehensive (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -3.4 | 20.4 | 71.7 |
Comprehensive Income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $57.40 | $31.10 | ($89) |
Schedule_II_Condensed_Financia5
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $60.80 | $10.70 | ($160.70) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization, net | 13.5 | 7.1 | 5.3 |
Share-based compensation | 4.1 | 3.5 | 3.2 |
Net realized gain on investments | -23.2 | -29 | -37 |
Changes in operating assets and liabilities: | ' | ' | ' |
Other liabilities and due from affiliates | -0.9 | -9.8 | 97.6 |
Other assets | -1.7 | -5.7 | 6.3 |
Excess tax benefits on share-based awards | 0.1 | 0 | 0 |
Federal income taxes, net | -0.3 | 12.3 | 50.9 |
Net cash provided by (used in) operating activities | 72.1 | -285.6 | 43 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of equity securities - available-for-sale | -86 | -143 | -92.6 |
Purchases of other invested assets | -5.5 | -1.1 | -1.2 |
Maturities, calls and pay downs of fixed maturities - available-for-sale | 174.6 | 257 | 327.2 |
Sales of fixed maturities - available-for-sale | 113.3 | 332.8 | 167.6 |
Sales of equity securities - available-for-sale | 106.4 | 101.8 | 180.9 |
Sale of subsidiary | 0 | 0 | 13.2 |
Net cash (used in) provided by investing activities | -23 | 9.3 | 246.2 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock | 4 | 1.6 | 2.6 |
Payments to acquire treasury stock | -0.1 | 0 | 0 |
Payment of dividends | -16.1 | -22.3 | -24.1 |
Excess tax benefits on share-based awards | -0.1 | 0 | 0 |
Proceeds from long-term debt | 85 | 0 | 0 |
Redemption of long-term debt | -100 | 0 | 0 |
Net cash used in financing activities | -27.8 | -20.7 | -21.5 |
Net increase (decrease) in cash and cash equivalents | 21.3 | -297 | 267.7 |
Cash and cash equivalents at beginning of year | 59 | ' | ' |
Cash and cash equivalents at end of year | 80.3 | 59 | ' |
Supplemental disclosures: | ' | ' | ' |
Federal income tax benefit received | 0.8 | -12.4 | -2.3 |
Interest paid (affiliates $0.7, $0.7 and $0.7, respectively) | 8.5 | 7 | 7 |
State Auto Financial | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | 60.8 | 10.7 | -160.7 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization, net | 1.3 | -0.3 | -0.6 |
Share-based compensation | 1.6 | 0.4 | 0.1 |
Net realized gain on investments | -0.7 | -0.4 | -0.7 |
Equity in net (income) loss from consolidated subsidiaries | -70.6 | -21.2 | 142.1 |
Changes in operating assets and liabilities: | ' | ' | ' |
Other liabilities and due from affiliates | 0.1 | 1.5 | 0.4 |
Other assets | 0.5 | 0.2 | 0.1 |
Excess tax benefits on share-based awards | 0.1 | 0 | 0 |
Federal income taxes, net | -3.1 | -1.2 | 10.6 |
Net cash provided by (used in) operating activities | -10 | -10.3 | -8.7 |
Cash flows from investing activities: | ' | ' | ' |
Dividends received from consolidated subsidiaries | 13.8 | 27 | 6.5 |
Purchases of equity securities - available-for-sale | 0 | -3.2 | 0 |
Purchases of other invested assets | -0.2 | -0.3 | -0.2 |
Maturities, calls and pay downs of fixed maturities - available-for-sale | 0.2 | 2.5 | 1 |
Sales of fixed maturities - available-for-sale | 3.9 | 0.3 | 13.8 |
Sales of equity securities - available-for-sale | 3.7 | 3.2 | 0 |
Sale of subsidiary | 0 | 0 | 13.2 |
Net cash (used in) provided by investing activities | 21.4 | 29.5 | 34.3 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock | 4 | 1.6 | 2.6 |
Payments to acquire treasury stock | -0.1 | 0 | 0 |
Payment of dividends | -16.1 | -22.2 | -24.1 |
Excess tax benefits on share-based awards | -0.1 | 0 | 0 |
Proceeds from long-term debt | 100 | 0 | 0 |
Redemption of long-term debt | -100 | 0 | 0 |
Net cash used in financing activities | -12.3 | -20.6 | -21.5 |
Net increase (decrease) in cash and cash equivalents | -0.9 | -1.4 | 4.1 |
Cash and cash equivalents at beginning of year | 7 | 8.4 | 4.3 |
Cash and cash equivalents at end of year | 6.1 | 7 | 8.4 |
Supplemental disclosures: | ' | ' | ' |
Federal income tax benefit received | 1.5 | 0.4 | 2 |
Interest paid (affiliates $0.7, $0.7 and $0.7, respectively) | ($8) | ($7) | ($7) |
Schedule_II_Condensed_Financia6
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Interest paid, affiliates | $0.70 | $0.70 | $0.70 |
State Auto Financial | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Interest paid, affiliates | $3.20 | $0.70 | $0.70 |
Schedule_II_Condensed_Financia7
Schedule II - Condensed Financial Information of Registrant - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Jul. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 11, 2013 | Dec. 31, 2013 | Jul. 11, 2013 | |
subsidiary | State Auto Financial | Notes Payable | Notes Payable | Notes Payable | Notes Payable | Notes Payable | Notes Payable | ||
Agreement | State Auto P&C | State Auto P&C | Milbank | Milbank | |||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends received from Stateco | ' | ' | $9,200,000 | ' | ' | ' | ' | ' | ' |
Number of credit agreements (agreements) | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of subsidiaries with shared credit agreements (subsidiaries) | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, issued | ' | ' | ' | ' | 100,000,000 | 85,000,000 | 85,000,000 | 15,000,000 | 15,000,000 |
Fair Value | ' | ' | ' | ' | $95,800,000 | $81,400,000 | ' | $14,400,000 | ' |
Interest rate (percent) | ' | 5.28% | ' | 5.28% | ' | ' | ' | ' | ' |
Recovered_Sheet11
Schedule III - Supplementary Insurance Information (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
Deferred policy acquisition cost | $96.80 | $91.70 | $91.70 | |||
Future benefits, claims and losses | 950.8 | [1] | 928.7 | [1] | 881.6 | [1] |
Unearned premiums | 491 | 481.6 | 470.2 | |||
Other policy claims and benefits payable | 0 | 0 | 0 | |||
Premium revenue | 1,055 | 1,042.10 | 1,428.80 | |||
Net investment income | 72.8 | 75.4 | 85.4 | |||
Benefits, losses and settlement expenses | 722.7 | [1],[2] | 779 | [1],[2] | 1,177.70 | [1],[2] |
Amortization of deferred policy acquisition costs | 209.6 | 213.1 | 274.4 | |||
Other operating expenses | 145.2 | 132.8 | 210.6 | |||
Premiums written | 1,062.10 | 1,055.30 | 1,284.60 | |||
Personal insurance | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
Deferred policy acquisition cost | 31.5 | 30.1 | 30.5 | |||
Future benefits, claims and losses | 223.7 | [1] | 231 | [1] | 279 | [1] |
Unearned premiums | 189.9 | 188.4 | 188.7 | |||
Other policy claims and benefits payable | 0 | 0 | 0 | |||
Premium revenue | 464 | 469.8 | 800.6 | |||
Net investment income | 0 | 0 | 0 | |||
Benefits, losses and settlement expenses | 342.2 | [1],[2] | 344.8 | [1],[2] | 698.9 | [1],[2] |
Amortization of deferred policy acquisition costs | 74.7 | 76.6 | 133.4 | |||
Other operating expenses | 55.5 | 46.6 | 54.7 | |||
Premiums written | 465.4 | 469.5 | 647.4 | |||
Business insurance segment | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
Deferred policy acquisition cost | 38.8 | 35 | 28.5 | |||
Future benefits, claims and losses | 359.6 | [1] | 341.8 | [1] | 336.9 | [1] |
Unearned premiums | 193.1 | 180.9 | 161.3 | |||
Other policy claims and benefits payable | 0 | 0 | 0 | |||
Premium revenue | 364.2 | 327.2 | 379 | |||
Net investment income | 0 | 0 | 0 | |||
Benefits, losses and settlement expenses | 221.8 | [1],[2] | 222.5 | [1],[2] | 296.4 | [1],[2] |
Amortization of deferred policy acquisition costs | 74.3 | 63.1 | 67.5 | |||
Other operating expenses | 73.5 | 80.6 | 103.3 | |||
Premiums written | 374.8 | 349.4 | 341.7 | |||
Specialty insurance segment | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
Deferred policy acquisition cost | 26.5 | 26.6 | 32.7 | |||
Future benefits, claims and losses | 367.5 | [1] | 355.9 | [1] | 265.7 | [1] |
Unearned premiums | 108 | 112.3 | 120.2 | |||
Other policy claims and benefits payable | 0 | 0 | 0 | |||
Premium revenue | 226.8 | 245.1 | 249.2 | |||
Net investment income | 0 | 0 | 0 | |||
Benefits, losses and settlement expenses | 158.7 | [1],[2] | 211.7 | [1],[2] | 182.4 | [1],[2] |
Amortization of deferred policy acquisition costs | 60.6 | 73.4 | 73.5 | |||
Other operating expenses | 16.2 | 5.6 | 52.6 | |||
Premiums written | 221.9 | 236.4 | 295.5 | |||
Investment operations segment | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
Deferred policy acquisition cost | 0 | 0 | 0 | |||
Future benefits, claims and losses | 0 | [1] | 0 | [1] | 0 | [1] |
Unearned premiums | 0 | 0 | 0 | |||
Other policy claims and benefits payable | 0 | 0 | 0 | |||
Premium revenue | 0 | 0 | 0 | |||
Net investment income | 72.8 | 75.4 | 85.4 | |||
Benefits, losses and settlement expenses | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | |||
Other operating expenses | 0 | 0 | 0 | |||
Premiums written | $0 | $0 | $0 | |||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmQ4MjdhN2RlMmQ0OTRjNjdhMmI1MjQ5OTE3YWVjYzNmfFRleHRTZWxlY3Rpb246RTJFNkM4NTQ4NEE5MDg5RkY2QjYyRUI1MDc2RUQxQjAM} | |||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmQ4MjdhN2RlMmQ0OTRjNjdhMmI1MjQ5OTE3YWVjYzNmfFRleHRTZWxlY3Rpb246RTYxRTU0RUVDNjkzRjgzQTk3RDIyRUI1NkNDRjIxMkUM} |
Schedule_IV_Reinsurance_Detail
Schedule IV - Reinsurance (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Gross Amount | $874.70 | $833.30 | $812.10 |
Ceded to | 855 | 809.2 | 803.6 |
Assumed from | 1,055 | 1,042.10 | 1,428.80 |
Net Amount | 1,055 | 1,042.10 | 1,428.80 |
Percentage of amount assumed to net (percent) | 0.40% | 0.40% | 1.30% |
Unaffiliated Companies | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Ceded to | 23.5 | 28.2 | 26.7 |
Assumed from | 3.8 | 4.1 | 18.2 |
Affiliated entity | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Ceded to | 855 | 809.2 | 803.6 |
Assumed from | $1,055 | $1,042.10 | $1,428.80 |
Recovered_Sheet12
Schedule V - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation allowance for deferred tax assets: | ' | ' | ' |
Balance at beginning of period | $100.50 | $103.30 | $0 |
Additions | 0 | 0 | 103.3 |
Deductions | 17.9 | 2.8 | 0 |
Balance at end of period | $82.60 | $100.50 | $103.30 |