Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 29, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'HANOVER INSURANCE GROUP, INC. | ' |
Entity Central Index Key | '0000944695 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 44,029,507 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues | ' | ' | ' | ' |
Premiums | $1,184 | $1,124.70 | $3,521.70 | $3,309.80 |
Net investment income | 67.5 | 65.7 | 201.5 | 200.9 |
Net realized investment gains (losses): | ' | ' | ' | ' |
Net realized gains from sales and other | 5.2 | 3.1 | 31.9 | 26.5 |
Net other-than-temporary impairment losses on investments recognized in earnings | -0.3 | -2.1 | -0.4 | -3.7 |
Total net realized investment gains | 4.9 | 1 | 31.5 | 22.8 |
Fees and other income | 9.2 | 10.4 | 27.8 | 31.2 |
Total revenues | 1,265.60 | 1,201.80 | 3,782.50 | 3,564.70 |
Losses and expenses | ' | ' | ' | ' |
Losses and loss adjustment expenses | 755.6 | 695.9 | 2,231.60 | 2,071.40 |
Amortization of deferred acquisition costs | 260 | 243.9 | 773.3 | 719.1 |
Interest expense | 16.3 | 16.6 | 48.9 | 48.7 |
Other operating expenses | 158.4 | 159.3 | 473.6 | 484.6 |
Total losses and expenses | 1,190.30 | 1,115.70 | 3,527.40 | 3,323.80 |
Income before income taxes | 75.3 | 86.1 | 255.1 | 240.9 |
Income tax (benefit) expense: | ' | ' | ' | ' |
Current | -1.1 | 2.4 | 6.5 | 5.9 |
Deferred | 21.4 | 22.4 | 56.4 | 54.2 |
Total income tax expense | 20.3 | 24.8 | 62.9 | 60.1 |
Income from continuing operations | 55 | 61.3 | 192.2 | 180.8 |
Net (loss) gain from discontinued operations (net of tax benefit of $0.2 and $0.1 for the three months ended September 30, 2014 and September 30, 2013 and $0.4 and $0.1 for the nine months ended September 30, 2014 and September 30, 2013) | -0.1 | ' | -0.1 | 0.1 |
Net income | $54.90 | $61.30 | $192.10 | $180.90 |
Basic: | ' | ' | ' | ' |
Income from continuing operations | $1.25 | $1.40 | $4.37 | $4.10 |
Net (loss) gain from discontinued operations | ' | ' | ' | ' |
Net income per share | $1.25 | $1.40 | $4.37 | $4.10 |
Weighted average shares outstanding | 44.1 | 43.8 | 44 | 44.1 |
Diluted: | ' | ' | ' | ' |
Income from continuing operations | $1.22 | $1.37 | $4.29 | $4.03 |
Net (loss) gain from discontinued operations | ' | ' | ($0.01) | ' |
Net income per share | $1.22 | $1.37 | $4.28 | $4.03 |
Weighted average shares outstanding | 44.9 | 44.6 | 44.9 | 44.9 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net loss from discontinued operations, income tax benefit (expense) | $0.20 | $0.10 | $0.40 | $0.10 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $54.90 | $61.30 | $192.10 | $180.90 |
Available-for-sale securities and derivative instruments: | ' | ' | ' | ' |
Net (depreciation) appreciation during the period | -48.7 | -9.3 | 32.8 | -142 |
Change in other-than-temporary impairment losses recognized in other comprehensive income | ' | -0.2 | 1.6 | 0.5 |
Total available-for-sale securities and derivative instruments | -48.7 | -9.5 | 34.4 | -141.5 |
Pension and postretirement benefits: | ' | ' | ' | ' |
Amortization recognized as net periodic benefit and postretirement cost | 1.6 | 1.9 | 5 | 7.9 |
Cumulative foreign currency translation adjustment: | ' | ' | ' | ' |
Amount recognized as cumulative foreign currency translation during the period | -5.9 | 5.7 | -2.9 | -4.4 |
Total other comprehensive (loss) income, net of tax | -53 | -1.9 | 36.5 | -138 |
Comprehensive income (loss) | $1.90 | $59.40 | $228.60 | $42.90 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Fixed maturities, at fair value (amortized cost of $7,006.9 and $6,815.2) | $7,227.50 | $6,970.60 |
Equity securities, at fair value (cost of $479.5 and $366.5) | 548.5 | 430.2 |
Other investments | 247.6 | 192.5 |
Total investments | 8,023.60 | 7,593.30 |
Cash and cash equivalents | 509.6 | 486.2 |
Accrued investment income | 70.7 | 68 |
Premiums and accounts receivable, net | 1,493.60 | 1,324.60 |
Reinsurance recoverable on paid and unpaid losses and unearned premiums | 2,379.60 | 2,335 |
Deferred acquisition costs | 540.3 | 506 |
Deferred income taxes | 146.3 | 239.7 |
Goodwill | 184.8 | 184.9 |
Other assets | 497.5 | 526.1 |
Assets of discontinued operations | 114.2 | 114.9 |
Total assets | 13,960.20 | 13,378.70 |
Liabilities | ' | ' |
Loss and loss adjustment expense reserves | 6,435 | 6,231.50 |
Unearned premiums | 2,701.70 | 2,515.80 |
Expenses and taxes payable | 636.4 | 637.2 |
Reinsurance premiums payable | 396.7 | 374.7 |
Debt | 903.4 | 903.9 |
Liabilities of discontinued operations | 115.1 | 121.1 |
Total liabilities | 11,188.30 | 10,784.20 |
Commitments and contingencies | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, par value $0.01 per share; 20.0 million shares authorized; none issued | ' | ' |
Common stock, par value $0.01 per share; 300.0 million shares authorized; 60.5 million shares issued | 0.6 | 0.6 |
Additional paid-in capital | 1,827.40 | 1,830.10 |
Accumulated other comprehensive income | 214.1 | 177.6 |
Retained earnings | 1,489.20 | 1,349.10 |
Treasury stock at cost (16.6 and 16.8 million shares) | -759.4 | -762.9 |
Total shareholders' equity | 2,771.90 | 2,594.50 |
Total liabilities and shareholders' equity | $13,960.20 | $13,378.70 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Fixed maturities, amortized cost | $7,006.90 | $6,815.20 |
Equity securities, cost | $479.50 | $366.50 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 60,500,000 | 60,500,000 |
Treasury stock, shares | 16,800,000 | 16,800,000 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Preferred Stock [Member] | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss), net of tax | Net Unrealized Appreciation on Investments and Derivative Instruments: | Defined Benefit Pension and Postretirement Plans: | Cumulative Foreign Currency Translation Adjustment: | Retained Earnings | Treasury Stock | Total |
In Millions | ||||||||||
Balance at beginning of period at Dec. 31, 2012 | ' | $0.60 | $1,787.10 | ' | $426 | ($96.60) | ($3.60) | $1,211.60 | ($729.70) | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | 180.9 | ' | 180.9 |
Shares purchased at cost | ' | ' | ' | ' | ' | ' | ' | ' | -78.2 | ' |
Employee and director stock-based awards and other | ' | ' | 42.5 | ' | ' | ' | ' | ' | ' | ' |
Net appreciation on available-for-sale securities and derivative instruments | ' | ' | ' | ' | -141.5 | ' | ' | ' | ' | -141.5 |
Net amount recognized as net periodic benefit cost | ' | ' | ' | ' | ' | 7.9 | ' | ' | ' | ' |
Amount recognized as cumulative foreign currency translation during the period | ' | ' | ' | ' | ' | ' | -4.4 | ' | ' | -4.4 |
Dividends to shareholders | ' | ' | ' | ' | ' | ' | ' | -43.8 | ' | ' |
Total accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | -138 |
Net shares reissued at cost under employee stock-based compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | 38.9 | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | -53.5 | ' | ' |
Balance at end of period at Sep. 30, 2013 | ' | 0.6 | 1,829.60 | 187.8 | 284.5 | -88.7 | -8 | 1,295.20 | -769 | 2,544.20 |
Balance at beginning of period at Dec. 31, 2013 | ' | 0.6 | 1,830.10 | ' | 259.3 | -76.1 | -5.6 | 1,349.10 | -762.9 | 2,594.50 |
Net income | ' | ' | ' | ' | ' | ' | ' | 192.1 | ' | 192.1 |
Shares purchased at cost | ' | ' | ' | ' | ' | ' | ' | ' | -20.4 | ' |
Employee and director stock-based awards and other | ' | ' | -2.7 | ' | ' | ' | ' | ' | ' | ' |
Net appreciation on available-for-sale securities and derivative instruments | ' | ' | ' | ' | 34.4 | ' | ' | ' | ' | 34.4 |
Net amount recognized as net periodic benefit cost | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' |
Amount recognized as cumulative foreign currency translation during the period | ' | ' | ' | ' | ' | ' | -2.9 | ' | ' | -2.9 |
Dividends to shareholders | ' | ' | ' | ' | ' | ' | ' | -48.9 | ' | ' |
Total accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36.5 |
Net shares reissued at cost under employee stock-based compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | 23.9 | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | -3.1 | ' | ' |
Balance at end of period at Sep. 30, 2014 | ' | $0.60 | $1,827.40 | $214.10 | $293.70 | ($71.10) | ($8.50) | $1,489.20 | ($759.40) | $2,771.90 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net income | $192.10 | $180.90 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Loss on repurchase of debt | 0.1 | 11.3 |
Net realized investment gains | -31.5 | -22.8 |
Net amortization and depreciation | 25.3 | 25.4 |
Stock-based compensation expense | 11.1 | 8.9 |
Amortization of defined benefit plan costs | 7.7 | 12.1 |
Deferred income taxes expense | 56.4 | 54.1 |
Change in deferred acquisition costs | -34.3 | -32.2 |
Change in premiums receivable, net of reinsurance premiums payable | -147 | -155.9 |
Change in loss, loss adjustment expense and unearned premium reserves | 415.1 | 146.5 |
Change in reinsurance recoverable | -50.5 | 83.9 |
Change in expenses and taxes payable | -55.9 | -102.8 |
Other, net | 19.5 | -27.5 |
Net cash provided by operating activities | 408.1 | 181.9 |
Cash Flows From Investing Activities | ' | ' |
Proceeds from disposals and maturities of fixed maturities | 908.9 | 1,130.10 |
Proceeds from disposals of equity securities and other investments | 113.2 | 111.5 |
Purchase of fixed maturities | -1,099.40 | -1,090.90 |
Purchase of equity securities and other investments | -261.4 | -228.3 |
Capital expenditures | -8.5 | -17 |
Net cash used in investing activities | -347.2 | -94.6 |
Cash Flows From Financing Activities | ' | ' |
Proceeds from exercise of employee stock options | 8.3 | 21.7 |
Proceeds from debt borrowings, net | ' | 169.5 |
Change in cash collateral related to securities lending program | 28.3 | -18.1 |
Dividends paid to shareholders | -48.9 | -43.8 |
Repurchases of debt | -0.7 | -96.8 |
Repurchases of common stock | -20.4 | -78.2 |
Other financing activities | -2.5 | -3.8 |
Net cash used in financing activities | -35.9 | -49.5 |
Effect of exchange rate changes on cash | -1.6 | -0.5 |
Net change in cash and cash equivalents | 23.4 | 37.3 |
Net change in cash related to discontinued operations | ' | 0.1 |
Cash and cash equivalents, beginning of period | 486.2 | 564.8 |
Cash and cash equivalents, end of period | $509.60 | $602.20 |
Basis_of_Presentation_and_Prin
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation and Principles of Consolidation [Abstract] | ' |
Basis of Presentation and Principles of Consolidation | ' |
1. Basis of Presentation and Principles of Consolidation | |
The accompanying unaudited consolidated financial statements of The Hanover Insurance Group, Inc. and subsidiaries (“THG” or the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the requirements of Form 10-Q. Certain financial information that is provided in annual financial statements, but is not required in interim reports, has been omitted. | |
The interim consolidated financial statements of THG include the accounts of The Hanover Insurance Company (“Hanover Insurance”) and Citizens Insurance Company of America, THG’s principal U.S. domiciled property and casualty companies; Chaucer Holdings plc (“Chaucer”), a specialist insurance underwriting group which operates through the Society and Corporation of Lloyd’s (“Lloyd’s”) and certain other insurance and non-insurance subsidiaries. These legal entities conduct their operations through several business segments discussed in Note 8 – “Segment Information”. Additionally, the interim consolidated financial statements include the Company’s discontinued operations, consisting primarily of the Company’s former life insurance businesses and its accident and health business. All intercompany accounts and transactions have been eliminated. | |
The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
In the opinion of the Company’s management, the accompanying interim consolidated financial statements reflect all adjustments, consisting of normal recurring items, necessary for a fair presentation of the financial position and results of operations. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2014. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements [Abstract] | ' |
New Accounting Pronouncements | ' |
2. New Accounting Pronouncements | |
Recently Implemented Standards | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2013-11 (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). This ASC update clarifies the applicable guidance for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward as long as it is available, at the reporting date under the tax law of the applicable jurisdiction, to settle any additional income taxes that would result from the disallowance of a tax position (with certain exceptions). The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. This guidance was applicable for reporting periods beginning after December 15, 2013, with early adoption permitted, and was to be applied prospectively to all unrecognized tax benefits that existed at the effective date. Retrospective application to all prior periods upon the date of adoption was permitted. The Company implemented this guidance effective January 1, 2014. The effect of implementing this guidance was not material to the Company’s financial position or results of operations. | |
In March 2013, the FASB issued ASC Update No. 2013-05 (Topic 830) Foreign Currency Matters-Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force). This ASC update clarifies the applicable guidance for the release of the cumulative translation adjustment into net income when a parent either sells all or a portion of its investment in a foreign entity. This guidance is also required to be applied when an entity no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity (with certain exceptions). Additionally, this update clarifies that the sale of an investment in a foreign entity includes events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date in a business combination achieved in stages. This guidance was applicable for reporting periods beginning after December 15, 2013, with early adoption permitted, and was to be applied prospectively to derecognition events occurring after the effective date. The Company implemented this guidance effective January 1, 2014. The effect of implementing this guidance was not material to the Company’s financial position or results of operations. | |
Recently Issued Standards | |
In April 2014, the FASB issued ASC Update No. 2014-08 (Topic 205 and Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASC update modifies the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. Also, this update requires additional financial statement disclosures about discontinued operations, as well as disposals of an individually significant component of an entity that do not qualify for discontinued operations presentation. This ASC update is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual and interim periods beginning on or after December 15, 2014 and for all businesses that, on acquisition, are classified as held for sale that also occur within interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company does not expect the adoption of ASC Update 2014-08 to have a material impact on its financial position or results of operations. | |
In May 2014, the FASB issued ASC Update No. 2014-09 (Topic 606) Revenue from Contracts with Customers. This ASC was issued to clarify the principles for recognizing revenue. Insurance Contracts and financial instrument transactions are not within the scope of this updated guidance, and; therefore, only an insignificant amount of the Company’s revenue is subject to this updated guidance. The updated guidance is effective for periods beginning after December 15, 2016 and is not expected to have a material effect on the Company’s financial position or results of operations. | |
In August 2014, the FASB issued ASC update No. 2014-15 (Subtopic 205-40) Presentation of Financial Statements – Going Concern. This ASC update provides guidance on determining when and how to disclose going concern uncertainties in the financial statements, and requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. The updated guidance is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of ASC update 2014-15 to have a material impact on its financial position or results of operations. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
3. Income Taxes | |
Income tax expense for the nine months ended September 30, 2014 and 2013 has been computed using estimated annual effective tax rates. These rates are revised, if necessary, at the end of each successive interim period to reflect current estimates of the annual effective tax rates. | |
For the nine months ended September 30, 2014, the tax provision is comprised of a $38.7 million U.S. federal income tax expense and a $24.2 million foreign income tax expense. For the nine months ended September 30, 2013, the tax provision was comprised of a $41.8 million U.S. federal income tax expense and a $18.3 million foreign income tax expense. Income tax expense for the nine months ended September 30, 2014 included a benefit of $4.4 million related to foreign exchange losses that is deducted on the Company’s 2013 U.S. tax return. This permanent tax item is not otherwise recognized in the Company’s U.S. GAAP financial statements. | |
Although most of the Company’s non–U.S. income is subject to U.S. federal income tax, certain of its non–U.S. income is not subject to U.S. federal income tax until repatriated. Foreign taxes on this non–U.S. income are accrued at the local foreign tax rate, as opposed to the higher U.S. statutory rate, since these earnings currently are expected to be indefinitely reinvested overseas. This assumption could change as a result of a sale of the subsidiaries, the receipt of dividends from the subsidiaries, a change in management’s intentions, or as a result of various other events. The Company has not made a provision for U.S. taxes on $17.2 million and $14.7 million of non-U.S. income for the nine months ended September 30, 2014 and 2013, respectively. However, in the future, if such earnings were distributed to the Company, taxes of $19.0 million would be payable on such undistributed earnings and would be reflected in the tax provision for the year in which these earnings are no longer intended to be indefinitely reinvested overseas, assuming all foreign tax credits are realized. | |
In May 2014, the Company reached a final settlement with the IRS for years 2007 and 2008, related to the disallowance of deductions for certain loss reserves. As a result, a liability for uncertain tax positions was established for $4.8 million, with an offsetting deferred tax asset. This liability was paid in August 2014. The IRS audits of the years 2009 and 2010 commenced in June 2012 and final settlement was reached in May 2014 with no additional tax liability. | |
The Company or its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions, as well as foreign jurisdictions. With few exceptions, the Company and its subsidiaries are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2011. The Company and its subsidiaries are still subject to U.S. state income tax examinations by tax authorities for years after 2006 and foreign examinations for years after 2011. | |
Investments
Investments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||
Investments | ' | ||||||||||||||||||
4. Investments | |||||||||||||||||||
A. Fixed maturities and equity securities | |||||||||||||||||||
The amortized cost and fair value of available-for-sale fixed maturities and the cost and fair value of equity securities were as follows: | |||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
Amortized | Gross | Gross | OTTI | ||||||||||||||||
Cost or | Unrealized | Unrealized | Unrealized | ||||||||||||||||
(in millions) | Cost | Gains | Losses | Fair Value | Losses | ||||||||||||||
Fixed maturities: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 408.7 | $ | 5.2 | $ | 6.3 | $ | 407.6 | $ | - | |||||||||
Foreign government | 339.0 | 2.9 | 1.0 | 340.9 | - | ||||||||||||||
Municipal | 1,071.9 | 56.9 | 9.3 | 1,119.5 | - | ||||||||||||||
Corporate | 3,814.2 | 171.8 | 21.5 | 3,964.5 | 7.4 | ||||||||||||||
Residential mortgage-backed | 737.6 | 18.9 | 6.1 | 750.4 | 0.4 | ||||||||||||||
Commercial mortgage-backed | 440.0 | 10.2 | 2.3 | 447.9 | - | ||||||||||||||
Asset-backed | 195.5 | 1.4 | 0.2 | 196.7 | - | ||||||||||||||
Total fixed maturities | $ | 7,006.9 | $ | 267.3 | $ | 46.7 | $ | 7,227.5 | $ | 7.8 | |||||||||
Equity securities | $ | 479.5 | $ | 71.2 | $ | 2.2 | $ | 548.5 | $ | - | |||||||||
31-Dec-13 | |||||||||||||||||||
Amortized | Gross | Gross | OTTI | ||||||||||||||||
Cost or | Unrealized | Unrealized | Unrealized | ||||||||||||||||
(in millions) | Cost | Gains | Losses | Fair Value | Losses | ||||||||||||||
Fixed maturities: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 417.5 | $ | 3.3 | $ | 14.2 | $ | 406.6 | $ | - | |||||||||
Foreign government | 304.5 | 2.1 | 1.6 | 305.0 | - | ||||||||||||||
Municipal | 1,108.0 | 37.4 | 19.1 | 1,126.3 | - | ||||||||||||||
Corporate | 3,690.2 | 171.5 | 37.5 | 3,824.2 | 8.6 | ||||||||||||||
Residential mortgage-backed | 722.8 | 20.1 | 14.1 | 728.8 | 1.6 | ||||||||||||||
Commercial mortgage-backed | 405.9 | 10.5 | 4.8 | 411.6 | - | ||||||||||||||
Asset-backed | 166.3 | 2.0 | 0.2 | 168.1 | - | ||||||||||||||
Total fixed maturities | $ | 6,815.2 | $ | 246.9 | $ | 91.5 | $ | 6,970.6 | $ | 10.2 | |||||||||
Equity securities | $ | 366.5 | $ | 66.9 | $ | 3.2 | $ | 430.2 | $ | - | |||||||||
Other-than-temporary impairments (“OTTI”) unrealized losses in the tables above represent OTTI recognized in accumulated other comprehensive income. This amount excludes net unrealized gains on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date of $13.6 million and $16.4 million as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
The amortized cost and fair value by maturity periods for fixed maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or the Company may have the right to put or sell the obligations back to the issuers. | |||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
Amortized | Fair | ||||||||||||||||||
(in millions) | Cost | Value | |||||||||||||||||
Due in one year or less | $ | 482.4 | $ | 486.3 | |||||||||||||||
Due after one year through five years | 2,283.4 | 2,378.5 | |||||||||||||||||
Due after five years through ten years | 2,214.6 | 2,286.7 | |||||||||||||||||
Due after ten years | 653.4 | 681.0 | |||||||||||||||||
5,633.8 | 5,832.5 | ||||||||||||||||||
Mortgage-backed and asset-backed securities | 1,373.1 | 1,395.0 | |||||||||||||||||
Total fixed maturities | $ | 7,006.9 | $ | 7,227.5 | |||||||||||||||
B. Securities in an unrealized loss position | |||||||||||||||||||
The following tables provide information about the Company’s fixed maturities and equity securities that were in an unrealized loss position at September 30, 2014 and December 31, 2013. | |||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
12 months or less | Greater than 12 months | Total | |||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||
(in millions) | Losses | Value | Losses | Value | Losses | Value | |||||||||||||
Fixed maturities: | |||||||||||||||||||
Investment grade: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 0.1 | $ | 28.5 | $ | 6.2 | $ | 151.5 | $ | 6.3 | $ | 180.0 | |||||||
Foreign governments | 0.5 | 34.5 | 0.5 | 74.5 | 1.0 | 109.0 | |||||||||||||
Municipal | 0.6 | 95.7 | 5.7 | 149.9 | 6.3 | 245.6 | |||||||||||||
Corporate | 5.4 | 463.2 | 10.7 | 258.3 | 16.1 | 721.5 | |||||||||||||
Residential mortgage-backed | 0.9 | 97.2 | 5.2 | 132.5 | 6.1 | 229.7 | |||||||||||||
Commercial mortgage-backed | 0.4 | 89.0 | 1.9 | 63.4 | 2.3 | 152.4 | |||||||||||||
Asset-backed | 0.1 | 36.2 | 0.1 | 14.1 | 0.2 | 50.3 | |||||||||||||
Total investment grade | 8.0 | 844.3 | 30.3 | 844.2 | 38.3 | 1,688.5 | |||||||||||||
Below investment grade: | |||||||||||||||||||
Municipal | 3.0 | 2.0 | - | - | 3.0 | 2.0 | |||||||||||||
Corporate | 2.7 | 116.7 | 2.7 | 28.5 | 5.4 | 145.2 | |||||||||||||
Total below investment grade | 5.7 | 118.7 | 2.7 | 28.5 | 8.4 | 147.2 | |||||||||||||
Total fixed maturities | 13.7 | 963.0 | 33.0 | 872.7 | 46.7 | 1,835.7 | |||||||||||||
Equity securities | 1.3 | 37.8 | 0.9 | 3.4 | 2.2 | 41.2 | |||||||||||||
Total | $ | 15.0 | $ | 1,000.8 | $ | 33.9 | $ | 876.1 | $ | 48.9 | $ | 1,876.9 | |||||||
31-Dec-13 | |||||||||||||||||||
12 months or less | Greater than 12 months | Total | |||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||
(in millions) | Losses | Value | Losses | Value | Losses | Value | |||||||||||||
Fixed maturities: | |||||||||||||||||||
Investment grade: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 12.3 | $ | 247.9 | $ | 1.9 | $ | 18.8 | $ | 14.2 | $ | 266.7 | |||||||
Foreign governments | 1.5 | 129.0 | 0.1 | 17.3 | 1.6 | 146.3 | |||||||||||||
Municipal | 14.8 | 345.3 | 4.3 | 39.9 | 19.1 | 385.2 | |||||||||||||
Corporate | 21.4 | 872.7 | 11.6 | 87.7 | 33.0 | 960.4 | |||||||||||||
Residential mortgage-backed | 10.3 | 321.1 | 3.4 | 29.5 | 13.7 | 350.6 | |||||||||||||
Commercial mortgage-backed | 4.2 | 155.4 | 0.6 | 10.2 | 4.8 | 165.6 | |||||||||||||
Asset-backed | 0.2 | 31.0 | - | 0.3 | 0.2 | 31.3 | |||||||||||||
Total investment grade | 64.7 | 2,102.4 | 21.9 | 203.7 | 86.6 | 2,306.1 | |||||||||||||
Below investment grade: | |||||||||||||||||||
Corporate | 2.9 | 71.9 | 1.6 | 21.4 | 4.5 | 93.3 | |||||||||||||
Residential mortgage-backed | 0.1 | 2.0 | 0.3 | 1.5 | 0.4 | 3.5 | |||||||||||||
Total below investment grade | 3.0 | 73.9 | 1.9 | 22.9 | 4.9 | 96.8 | |||||||||||||
Total fixed maturities | 67.7 | 2,176.3 | 23.8 | 226.6 | 91.5 | 2,402.9 | |||||||||||||
Equity securities | 2.8 | 45.2 | 0.4 | 0.7 | 3.2 | 45.9 | |||||||||||||
Total | $ | 70.5 | $ | 2,221.5 | $ | 24.2 | $ | 227.3 | $ | 94.7 | $ | 2,448.8 | |||||||
The Company views gross unrealized losses on fixed maturities and equity securities as being temporary since it is its assessment that these securities will recover in the near term, allowing the Company to realize the anticipated long-term economic value. The Company employs a systematic methodology to evaluate declines in fair value below amortized cost for fixed maturity securities or cost for equity securities. In determining OTTI of fixed maturity and equity securities, the Company evaluates several factors and circumstances, including the issuer’s overall financial condition; the issuer’s credit and financial strength ratings; the issuer’s financial performance, including earnings trends, dividend payments and asset quality; any specific events which may influence the operations of the issuer; the general outlook for market conditions in the industry or geographic region in which the issuer operates; and the length of time and the degree to which the fair value of an issuer’s securities remains below the Company’s cost. With respect to fixed maturity investments, the Company considers any factors that might raise doubt about the issuer’s ability to make contractual payments as they come due and whether the Company expects to recover the entire amortized cost basis of the security. With respect to equity securities, the Company considers its ability and intent to hold the investment for a period of time to allow for a recovery in value. | |||||||||||||||||||
C. Proceeds from sales | |||||||||||||||||||
The proceeds from sales of available-for-sale securities and gross realized gains and losses on those sales, were as follows: | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Proceeds from | Gross | Gross | Proceeds from | Gross | Gross | ||||||||||||||
(in millions) | Sales | Gains | Losses | Sales | Gains | Losses | |||||||||||||
Fixed maturities | $ | 39.7 | $ | 1.1 | $ | - | $ | 83.3 | $ | 1.0 | $ | 0.9 | |||||||
Equity securities | $ | 13.5 | $ | 2.4 | $ | - | $ | 10.8 | $ | 1.5 | $ | - | |||||||
Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Proceeds from | Gross | Gross | Proceeds from | Gross | Gross | ||||||||||||||
(in millions) | Sales | Gains | Losses | Sales | Gains | Losses | |||||||||||||
Fixed maturities | $ | 247.8 | $ | 4.4 | $ | 2.3 | $ | 369.0 | $ | 5.6 | $ | 1.9 | |||||||
Equity securities | $ | 85.9 | $ | 26.5 | $ | 0.8 | $ | 89.7 | $ | 18.5 | $ | 0.3 | |||||||
D. Other-than-temporary impairments | |||||||||||||||||||
For the three months ended September 30, 2014, total OTTI of fixed maturities were $0.3 million, all of which were recognized in earnings. For the first nine months of 2014, total OTTI of fixed maturities were $0.3 million. Of this amount, $0.4 million were recognized in earnings including $0.1 million which was transferred from unrealized losses in accumulated other comprehensive income. | |||||||||||||||||||
For the three months ended September 30, 2013, total OTTI of equity securities and fixed maturities were $2.5 million. Of this amount, $2.1 million was recognized in earnings and the remaining $0.4 million was recorded as unrealized losses in accumulated other comprehensive income. For the first nine months of 2013, total OTTI of equities and fixed maturities were $4.5 million. Of this amount, $3.7 million was recognized in earnings and the remaining $0.8 million was recorded as unrealized losses in accumulated other comprehensive income. | |||||||||||||||||||
There were no credit impairments in 2014. The methodology and significant inputs used to measure the amount of credit losses on fixed maturities in 2013 were as follows: | |||||||||||||||||||
Asset-backed securities, including commercial and residential mortgage-backed securities – the Company utilized cash flow estimates based on bond specific facts and circumstances that include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayment speeds and structural support, including subordination and guarantees. | |||||||||||||||||||
Corporate bonds – the Company utilized a financial model that derives expected cash flows based on probability-of-default factors by credit rating and asset duration and loss-given-default factors based on security type. These factors are based on historical data provided by an independent third-party rating agency. | |||||||||||||||||||
The following table provides rollforwards of the cumulative amounts related to the Company’s credit loss portion of the OTTI losses on fixed maturity securities for which the non-credit portion of the loss is included in other comprehensive income. | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Credit losses at beginning of period | $ | 4.3 | $ | 7.3 | $ | 7.8 | $ | 8.6 | |||||||||||
Credit losses for which an OTTI was not | |||||||||||||||||||
previously recognized | - | 0.1 | - | 0.4 | |||||||||||||||
Additional credit losses on securities for which an | |||||||||||||||||||
OTTI was previously recognized | - | - | - | 0.2 | |||||||||||||||
Reductions for securities sold, matured or called | - | -0.1 | -3.1 | -1.9 | |||||||||||||||
Reductions for securities reclassified as intended to sell | - | - | -0.4 | - | |||||||||||||||
Credit losses at the end of period | $ | 4.3 | $ | 7.3 | $ | 4.3 | $ | 7.3 | |||||||||||
0 | |||||||||||||||||||
E. Funds at Lloyd’s | |||||||||||||||||||
In accordance with Lloyd’s operating guidelines, the Company deposits funds at Lloyd’s to support underwriting operations. These funds are available only to fund claim obligations. These assets consisted of approximately $456 million of fixed maturities and $5 million of cash and cash equivalents as of September 30, 2014. The Company also deposits funds with various state and governmental authorities in the U.S. For a discussion of the Company’s deposits with state and governmental authorities, see also Note 3 – “Investments” of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||||
Fair_Value
Fair Value | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||||||
5. Fair Value | |||||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, i.e., exit price, in an orderly transaction between market participants. The Company emphasizes the use of observable market data whenever available in determining fair value. Fair values presented for certain financial instruments are estimates which, in many cases, may differ significantly from the amounts that could be realized upon immediate liquidation. A hierarchy of the three broad levels of fair value are as follows, with the highest priority given to Level 1 as these are the most observable, and the lowest priority given to Level 3: | |||||||||||||||||||||||||
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||
Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data, including model-derived valuations. | |||||||||||||||||||||||||
Level 3 – Unobservable inputs that are supported by little or no market activity. | |||||||||||||||||||||||||
When more than one level of input is used to determine fair value, the financial instrument is classified as Level 2 or 3 according to the lowest level input that has a significant impact on the fair value measurement. | |||||||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments and have not changed since last year. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
The carrying amount approximates fair value. Cash equivalents primarily consist of money market instruments, which are generally valued using unadjusted quoted prices in active markets that are accessible for identical assets and are classified as Level 1. | |||||||||||||||||||||||||
Fixed Maturities | |||||||||||||||||||||||||
Level 1 securities generally include U.S. Treasury issues and other securities that are highly liquid and for which quoted market prices are available. Level 2 securities are valued using pricing for similar securities and pricing models that incorporate observable inputs including, but not limited to yield curves and issuer spreads. Level 3 securities include issues for which little observable data can be obtained, primarily due to the illiquid nature of the securities, and for which significant inputs used to determine fair value are based on the Company’s own assumptions. Non-binding broker quotes are also included in Level 3. | |||||||||||||||||||||||||
The Company utilizes a third party pricing service for the valuation of the majority of its fixed maturity securities and receives one quote per security. When quoted market prices in an active market are available, they are provided by the pricing service as the fair value and such values are classified as Level 1. Since fixed maturities other than U.S. Treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value for those securities using pricing applications based on a market approach. Inputs into the fair value pricing common to all asset classes include: benchmark U.S. Treasury security yield curves; reported trades of identical or similar fixed maturity securities; broker/dealer quotes of identical or similar fixed maturity securities and structural characteristics such as maturity date, coupon, mandatory principal payment dates, frequency of interest and principal payments, and optional redemption features. Inputs into the fair value applications that are unique by asset class include, but are not limited to: | |||||||||||||||||||||||||
•U.S. government agencies – determination of direct versus indirect government support and whether any contingencies exist with respect to the timely payment of principal and interest. | |||||||||||||||||||||||||
•Foreign government – estimates of appropriate market spread versus underlying related sovereign treasury curve(s) dependent on liquidity and direct or contingent support. | |||||||||||||||||||||||||
•Municipals – overall credit quality, including assessments of the level and variability of: sources of payment such as income, sales or property taxes, levies or user fees; credit support such as insurance; state or local economic and political base; natural resource availability; and susceptibility to natural or man-made catastrophic events such as hurricanes, earthquakes or acts of terrorism. | |||||||||||||||||||||||||
•Corporate fixed maturities – overall credit quality, including assessments of the level and variability of: economic sensitivity; liquidity; corporate financial policies; management quality; regulatory environment; competitive position; ownership; restrictive covenants; and security or collateral. | |||||||||||||||||||||||||
•Residential mortgage-backed securities – estimates of prepayment speeds based upon: historical prepayment rate trends; underlying collateral interest rates; geographic concentration; vintage year; borrower credit quality characteristics; interest rate and yield curve forecasts; government or monetary authority support programs; tax policies; delinquency/default trends; and, in the case of non-agency collateralized mortgage obligations, severity of loss upon default and length of time to recover proceeds following default. | |||||||||||||||||||||||||
•Commercial mortgage-backed securities – overall credit quality, including assessments of the value and supply/demand characteristics of: collateral type such as office, retail, residential, lodging, or other; geographic concentration by region, state, metropolitan statistical area and locale; vintage year; historical collateral performance including defeasance, delinquency, default and special servicer trends; and capital structure support features. | |||||||||||||||||||||||||
•Asset-backed securities – overall credit quality, including assessments of the underlying collateral type such as credit card receivables, auto loan receivables and equipment lease receivables; geographic diversification; vintage year; historical collateral performance including delinquency, default and casualty trends; economic conditions influencing use rates and resale values; and contract structural support features. | |||||||||||||||||||||||||
Generally, all prices provided by the pricing service, except actively traded securities with quoted market prices, are reported as Level 2. | |||||||||||||||||||||||||
The Company holds privately placed fixed maturity securities and certain other fixed maturity securities that do not have an active market and for which the pricing service cannot provide fair values. The Company determines fair values for these securities using either matrix pricing utilizing the market approach or broker quotes. The Company will use observable market data as inputs into the fair value applications, as discussed in the determination of Level 2 fair values, to the extent it is available, but is also required to use a certain amount of unobservable judgment due to the illiquid nature of the securities involved. Unobservable judgment reflected in the Company’s matrix model accounts for estimates of additional spread required by market participants for factors such as issue size, structural complexity, high bond coupon or other unique features. These matrix-priced securities are reported as Level 2 or Level 3, depending on the significance of the impact of unobservable judgment on the security’s value. Additionally, the Company may obtain non-binding broker quotes which are reported as Level 3. | |||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||
Level 1 consists of publicly traded securities, including exchange traded funds, valued at quoted market prices. Level 2 includes securities that are valued using pricing models that incorporate observable inputs. Level 3 consists of common or preferred stock of private companies for which observable inputs are not available. Non-binding broker quotes are also included in Level 3. | |||||||||||||||||||||||||
The Company utilizes a third party pricing service for the valuation of the majority of its equity securities and receives one quote for each equity security. When quoted market prices in an active market are available, they are provided by the pricing service as the fair value and such values are classified as Level 1. The Company holds certain equity securities that have been issued by privately-held entities that do not have an active market and for which the pricing service cannot provide fair values. Generally, the Company estimates fair value for these securities based on the issuer’s book value and market multiples. These securities are reported as Level 2 or Level 3 depending on the significance of the impact of unobservable judgment on the security’s value. | |||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||
Other investments consist primarily of overseas trust funds, for which fair values are provided by the investment manager based on quoted prices for similar instruments in active markets and are reported as Level 2. Also included in other investments are mortgage and other loans and cost basis limited partnerships. Fair values of mortgage and other loans are estimated by discounting the future contractual cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and are reported as Level 3. The fair values of cost basis limited partnerships are based on the net asset value provided by the general partner and recent financial information and are reported as Level 3. | |||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||
The fair value of debt is estimated based on quoted market prices. If a quoted market price is not available, fair values are estimated using discounted cash flows that are based on current interest rates and yield curves for debt issuances with maturities and credit risks consistent with the debt being valued. Debt is reported as Level 2. | |||||||||||||||||||||||||
The estimated fair value of the financial instruments were as follows: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
(in millions) | Value | Value | Value | Value | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 509.6 | $ | 509.6 | $ | 486.2 | $ | 486.2 | |||||||||||||||||
Fixed maturities | 7,227.5 | 7,227.5 | 6,970.6 | 6,970.6 | |||||||||||||||||||||
Equity securities | 548.5 | 548.5 | 430.2 | 430.2 | |||||||||||||||||||||
Other investments | 222.6 | 225.2 | 173.1 | 173.7 | |||||||||||||||||||||
Total financial assets | $ | 8,508.2 | $ | 8,510.8 | $ | 8,060.1 | $ | 8,060.7 | |||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Debt | $ | 903.4 | $ | 1,020.5 | $ | 903.9 | $ | 961.7 | |||||||||||||||||
The Company has processes designed to ensure that the values received from its third party pricing service are accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. The Company performs a review of the fair value hierarchy classifications and of prices received from its pricing service on a quarterly basis. The Company reviews the pricing services’ policies describing its methodology, processes, practices and inputs, including various financial models used to value securities. Also, the Company reviews the portfolio pricing, including securities with changes in prices that exceed a defined threshold being verified to independent sources, if available. If upon review, the Company is not satisfied with the validity of a given price, a pricing challenge would be submitted to the pricing service along with supporting documentation for its review. The Company does not adjust quotes or prices obtained from the pricing service unless the pricing service agrees with the Company’s challenge. During 2014 and 2013, the Company did not adjust any prices received from brokers or its pricing service. | |||||||||||||||||||||||||
Changes in the observability of valuation inputs may result in a reclassification of certain financial assets or liabilities within the fair value hierarchy. Reclassifications between levels of the fair value hierarchy are reported as of the beginning of the period in which the reclassification occurs. As previously discussed, the Company utilizes a third party pricing service for the valuation of the majority of its fixed maturities and equity securities. The pricing service has indicated that it will only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If the pricing service discontinues pricing an investment, the Company will use observable market data to the extent it is available, but may also be required to make assumptions for market based inputs that are unavailable due to market conditions. | |||||||||||||||||||||||||
The following tables provide, for each hierarchy level, the Company’s assets that were measured at fair value on a recurring basis. | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | 407.6 | $ | 160.4 | $ | 247.2 | $ | - | |||||||||||||||||
Foreign government | 340.9 | 43.1 | 297.8 | - | |||||||||||||||||||||
Municipal | 1,119.5 | - | 1,093.5 | 26.0 | |||||||||||||||||||||
Corporate | 3,964.5 | - | 3,949.4 | 15.1 | |||||||||||||||||||||
Residential mortgage-backed, U.S. agency backed | 639.1 | - | 639.1 | - | |||||||||||||||||||||
Residential mortgage-backed, non-agency | 111.3 | - | 111.3 | - | |||||||||||||||||||||
Commercial mortgage-backed | 447.9 | - | 426.1 | 21.8 | |||||||||||||||||||||
Asset-backed | 196.7 | - | 196.7 | - | |||||||||||||||||||||
Total fixed maturities | 7,227.5 | 203.5 | 6,961.1 | 62.9 | |||||||||||||||||||||
Equity securities | 539.2 | 538.0 | - | 1.2 | |||||||||||||||||||||
Other investments | 129.6 | - | 126.0 | 3.6 | |||||||||||||||||||||
Total investment assets at fair value | $ | 7,896.3 | $ | 741.5 | $ | 7,087.1 | $ | 67.7 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | 406.6 | $ | 167.2 | $ | 239.4 | $ | - | |||||||||||||||||
Foreign government | 305.0 | 45.6 | 259.4 | - | |||||||||||||||||||||
Municipal | 1,126.3 | - | 1,100.7 | 25.6 | |||||||||||||||||||||
Corporate | 3,824.2 | - | 3,811.2 | 13.0 | |||||||||||||||||||||
Residential mortgage-backed, U.S. agency backed | 573.2 | - | 573.2 | - | |||||||||||||||||||||
Residential mortgage-backed, non-agency | 155.6 | - | 155.1 | 0.5 | |||||||||||||||||||||
Commercial mortgage-backed | 411.6 | - | 388.7 | 22.9 | |||||||||||||||||||||
Asset-backed | 168.1 | - | 168.1 | - | |||||||||||||||||||||
Total fixed maturities | 6,970.6 | 212.8 | 6,695.8 | 62.0 | |||||||||||||||||||||
Equity securities | 420.9 | 382.3 | - | 38.6 | |||||||||||||||||||||
Other investments | 153.2 | - | 149.6 | 3.6 | |||||||||||||||||||||
Total investment assets at fair value | $ | 7,544.7 | $ | 595.1 | $ | 6,845.4 | $ | 104.2 | |||||||||||||||||
The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value: | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 509.6 | $ | 509.6 | $ | - | $ | - | |||||||||||||||||
Equity securities | 9.3 | - | 9.3 | - | |||||||||||||||||||||
Other investments | 95.6 | - | - | 95.6 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Debt | $ | 1,020.5 | $ | - | $ | 1,020.5 | $ | - | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 486.2 | $ | 486.2 | $ | - | $ | - | |||||||||||||||||
Equity securities | 9.3 | - | 9.3 | - | |||||||||||||||||||||
Other investments | 20.5 | - | 2.7 | 17.8 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Debt | $ | 961.7 | $ | - | $ | 961.7 | $ | - | |||||||||||||||||
The tables below provide a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). | |||||||||||||||||||||||||
Fixed Maturities | |||||||||||||||||||||||||
(in millions) | Municipal | Corporate | Residential mortgage-backed, non-agency | Commercial mortgage-backed | Total | Equity and Other | Total Assets | ||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Balance July 1, 2014 | $ | 26.8 | $ | 13.2 | $ | - | $ | 22.5 | $ | 62.5 | $ | 4.8 | $ | 67.3 | |||||||||||
Transfers into Level 3 | - | 2.2 | - | - | 2.2 | - | 2.2 | ||||||||||||||||||
Total losses: | |||||||||||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income - net depreciation on available-for-sale securities | -0.2 | -0.2 | - | -0.3 | -0.7 | - | -0.7 | ||||||||||||||||||
Sales | -0.6 | -0.1 | - | -0.4 | -1.1 | - | -1.1 | ||||||||||||||||||
Balance September 30, 2014 | $ | 26.0 | $ | 15.1 | $ | - | $ | 21.8 | $ | 62.9 | $ | 4.8 | $ | 67.7 | |||||||||||
Three Months Ended | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Balance July 1, 2013 | $ | 27.9 | $ | 19.5 | $ | 0.6 | $ | 23.6 | $ | 71.6 | $ | 32.3 | $ | 103.9 | |||||||||||
Total gains (losses): | |||||||||||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income - net (depreciation) appreciation on available-for-sale securities | -0.1 | 0.1 | - | - | - | 2.8 | 2.8 | ||||||||||||||||||
Sales | -0.9 | - | -0.1 | -0.4 | -1.4 | - | -1.4 | ||||||||||||||||||
Balance September 30, 2013 | $ | 26.9 | $ | 19.6 | $ | 0.5 | $ | 23.2 | $ | 70.2 | $ | 35.1 | $ | 105.3 | |||||||||||
Fixed Maturities | |||||||||||||||||||||||||
(in millions) | Municipal | Corporate | Residential mortgage-backed, non-agency | Commercial mortgage-backed | Asset-backed | Total | Equity and Other | Total Assets | |||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Balance January 1, 2014 | $ | 25.6 | $ | 13.0 | $ | 0.5 | $ | 22.9 | $ | - | $ | 62.0 | $ | 42.2 | $ | 104.2 | |||||||||
Transfers into Level 3 | 2.2 | 2.2 | - | - | - | 4.4 | - | 4.4 | |||||||||||||||||
Transfers out of Level 3 | -2.6 | - | - | - | - | -2.6 | -37.4 | -40 | |||||||||||||||||
Total gains: | |||||||||||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income-net appreciation on available-for-sale securities | 0.4 | - | - | 0.4 | - | 0.8 | - | 0.8 | |||||||||||||||||
Purchases and sales: | - | ||||||||||||||||||||||||
Purchases | 2.5 | - | - | - | - | 2.5 | - | 2.5 | |||||||||||||||||
Sales | -2.1 | -0.1 | -0.5 | -1.5 | - | -4.2 | -4.2 | ||||||||||||||||||
Balance September 30, 2014 | $ | 26.0 | $ | 15.1 | $ | - | $ | 21.8 | $ | - | $ | 62.9 | $ | 4.8 | $ | 67.7 | |||||||||
Nine Months Ended | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Balance January 1, 2013 | $ | 19.4 | $ | 26.4 | $ | 0.7 | $ | 26.7 | $ | 1.5 | $ | 74.7 | $ | 28.0 | $ | 102.7 | |||||||||
Transfers into Level 3 | 9.7 | 0.2 | - | - | - | 9.9 | - | 9.9 | |||||||||||||||||
Transfers out of Level 3 | - | -2.2 | - | - | -1.5 | -3.7 | -0.9 | -4.6 | |||||||||||||||||
Total gains (losses): | |||||||||||||||||||||||||
Included in earnings | - | 0.4 | - | - | - | 0.4 | - | 0.4 | |||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income-net (depreciation) appreciation on available-for-sale securities | -0.4 | -0.9 | - | -1.4 | - | -2.7 | 8.0 | 5.3 | |||||||||||||||||
Sales | -1.8 | -4.3 | -0.2 | -2.1 | - | -8.4 | - | -8.4 | |||||||||||||||||
Balance September 30, 2013 | $ | 26.9 | $ | 19.6 | $ | 0.5 | $ | 23.2 | $ | - | $ | 70.2 | $ | 35.1 | $ | 105.3 | |||||||||
During the three and nine months ended September 30, 2014 and the nine months ended September 30, 2013, the Company transferred fixed maturities between Level 2 and Level 3 primarily as a result of assessing the significance of unobservable inputs on the fair value measurement. There were no transfers between Level 2 and Level 3 during the three months ended September 30, 2013. There were no transfers between Level 1 and Level 2 during the three months or nine months ended September 30, 2014. | |||||||||||||||||||||||||
There were no Level 3 liabilities held by the Company for the nine months ended September 30, 2014 and 2013. The following table summarizes gains and losses due to changes in fair value that were recorded in net income for Level 3 assets: | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Net Realized Investment | Net Realized Investment | ||||||||||||||||||||||||
(in millions) | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||||
Level 3 Assets: | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Corporate | $ | - | $ | - | $ | - | $ | 0.4 | |||||||||||||||||
The following table provides quantitative information about the significant unobservable inputs used by the Company in the fair value measurements of Level 3 assets. Where discounted cash flows were used in the valuation of fixed maturities, the internally-developed discount rate was adjusted by the significant unobservable inputs shown in the table. Valuations for securities based on broker quotes for which there was a lack of transparency as to inputs used to develop the valuations have been excluded. | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Valuation | Significant | Fair | Range | Fair | Range | ||||||||||||||||||||
(in millions) | Technique | Unobservable Inputs | Value | (Wtd Average) | Value | (Wtd Average) | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Municipal | Discounted | Discount for: | $ | 26.0 | $ | 25.6 | |||||||||||||||||||
cash flow | Small issue size | 0.6-4.5% (2.0%) | 1.0-4.0% (2.3%) | ||||||||||||||||||||||
Above-market coupon | 0.3-1.0% (0.4%) | 0.3-1.0% (0.5%) | |||||||||||||||||||||||
Corporate | Discounted | Discount for: | 14.8 | 12.8 | |||||||||||||||||||||
cash flow | Above-market coupon | 0.3-0.8% (0.6%) | 0.3-0.8% (0.6%) | ||||||||||||||||||||||
Small issue size | 0.3-1.0% (0.6%) | 0.3-1.0% (0.5%) | |||||||||||||||||||||||
Residential mortgage-backed, | Discounted | Discount for: | - | 0.5 | |||||||||||||||||||||
non-agency | cash flow | Small issue size | N/A | 0.5% (0.5%) | |||||||||||||||||||||
Commercial mortgage-backed | Discounted | Discount for: | 21.8 | 22.9 | |||||||||||||||||||||
cash flow | Above-market coupon | 0.5-0.8% (0.5%) | 0.5-0.8% (0.6%) | ||||||||||||||||||||||
Credit stress | 0.5% (0.5%) | 0.5% (0.5%) | |||||||||||||||||||||||
Small issue size | 0.5% (0.5%) | 0.5% (0.5%) | |||||||||||||||||||||||
Lease structure | 0.3% (0.3%) | 0.3% (0.3%) | |||||||||||||||||||||||
Equity securities | Market | Net tangible asset | 1.1 | 38.5 | |||||||||||||||||||||
comparables | market multiples | 1.0X (1.0X) | 1.3X (1.3X) | ||||||||||||||||||||||
Other | Discounted | Discount rate | 3.6 | 18.0% (18.0%) | 3.6 | 18.0% (18.0%) | |||||||||||||||||||
cash flow | |||||||||||||||||||||||||
Significant increases (decreases) in any of the above inputs in isolation would result in a significantly lower (higher) fair value measurement. There were no interrelationships between these inputs which might magnify or mitigate the effect of changes in unobservable inputs on the fair value measurement. | |||||||||||||||||||||||||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Pension and Other Postretirement Benefit Plans [Abstract] | ' | ||||||||||||
Pension and Other Postretirement Benefit Plans | ' | ||||||||||||
6. Pension and Other Postretirement Benefit Plans | |||||||||||||
The components of net periodic pension cost for defined benefit pension and other postretirement benefit plans included in the Company’s results of operations are as follows: | |||||||||||||
Three Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | Pension Plans | Postretirement Plans | |||||||||||
Service cost - benefits earned during the period | $ | 0.4 | $ | 0.4 | $ | 0.1 | $ | - | |||||
Interest cost | 8.4 | 8.0 | 0.2 | 0.2 | |||||||||
Expected return on plan assets | -9.2 | -8.9 | - | - | |||||||||
Recognized net actuarial loss | 2.9 | 3.7 | - | 0.1 | |||||||||
Amortization of prior service cost | - | - | -0.5 | -0.9 | |||||||||
Net periodic pension cost (benefit) | $ | 2.5 | $ | 3.2 | $ | -0.2 | $ | -0.6 | |||||
Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | Pension Plans | Postretirement Plans | |||||||||||
Service cost - benefits earned during the period | $ | 1.1 | $ | 1.3 | $ | 0.1 | $ | 0.1 | |||||
Interest cost | 25.3 | 23.9 | 0.6 | 1.0 | |||||||||
Expected return on plan assets | -27.5 | -26.7 | - | - | |||||||||
Recognized net actuarial loss | 8.7 | 11.0 | - | 0.2 | |||||||||
Amortization of prior service cost | 0.1 | - | -1.4 | -2.8 | |||||||||
Net settlement gain | - | - | - | -1.6 | |||||||||
Net periodic pension cost (benefit) | $ | 7.7 | $ | 9.5 | $ | -0.7 | $ | -3.1 | |||||
In May 2013, the Company settled and defeased the life insurance portion of its postretirement benefits by decreasing the level of death benefits and concurrently fully funding the remaining benefits through the purchase of life insurance policies for the plan beneficiaries from an unaffiliated life insurer, resulting in a net settlement gain. | |||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Other Comprehensive Income | ' | ||||||||||||||||||
7. Other Comprehensive Income | |||||||||||||||||||
The following table provides changes in other comprehensive income. | |||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Tax | Tax | ||||||||||||||||||
Benefit | Net of | Benefit | Net of | ||||||||||||||||
(in millions) | Pre-Tax | (Expense) | Tax | Pre-Tax | (Expense) | Tax | |||||||||||||
Unrealized gains (losses) on available-for-sale securities and | |||||||||||||||||||
derivative instruments: | |||||||||||||||||||
Unrealized (losses) gains arising during period (net of | |||||||||||||||||||
pre-tax, ceded unrealized (losses) of $(0.4) million for the three months ended September 30, 2014) | $ | -64.3 | 22.4 | -41.9 | $ | -7.1 | $ | 2.2 | $ | -4.9 | |||||||||
Less: | |||||||||||||||||||
Amount of realized gains from sales and other | -4.6 | -2.4 | -7 | -3.9 | -2.1 | -6 | |||||||||||||
Portion of other-than-temporary impairment losses | |||||||||||||||||||
recognized in earnings | 0.3 | -0.1 | 0.2 | 2.1 | -0.7 | 1.4 | |||||||||||||
Net unrealized (losses) gains | -68.6 | 19.9 | -48.7 | -8.9 | -0.6 | -9.5 | |||||||||||||
Pension and postretirement benefits: | |||||||||||||||||||
Amortization of net actuarial loss and prior service | |||||||||||||||||||
cost recognized as net periodic benefit cost | 2.5 | -0.9 | 1.6 | 2.9 | -1 | 1.9 | |||||||||||||
Cumulative foreign currency translation adjustment: | |||||||||||||||||||
Foreign currency translation recognized during | |||||||||||||||||||
the period | -9.2 | 3.3 | -5.9 | 8.7 | -3 | 5.7 | |||||||||||||
Other comprehensive (loss) income | $ | -75.3 | $ | 22.3 | $ | -53 | $ | 2.7 | $ | -4.6 | $ | -1.9 | |||||||
Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Tax | Tax | ||||||||||||||||||
Benefit | Net of | Benefit | Net of | ||||||||||||||||
(in millions) | Pre-Tax | (Expense) | Tax | Pre-Tax | (Expense) | Tax | |||||||||||||
Unrealized gains (losses) on available-for-sale securities and | |||||||||||||||||||
derivative instruments: | |||||||||||||||||||
Unrealized gains (losses) arising during period (net of | |||||||||||||||||||
pre-tax, ceded unrealized gains (losses) of $0.8 million and ($0.8) million for the nine months ended September 30, 2014 and 2013) | $ | 102.2 | $ | -32.9 | $ | 69.3 | $ | -172.1 | $ | 60.1 | $ | -112 | |||||||
Less: | |||||||||||||||||||
Amount of realized gains from sales | |||||||||||||||||||
and other | -31.3 | -3.9 | -35.2 | -27.7 | -4.2 | -31.9 | |||||||||||||
Portion of other-than-temporary impairment losses | |||||||||||||||||||
recognized in earnings | 0.4 | -0.1 | 0.3 | 3.7 | -1.3 | 2.4 | |||||||||||||
Net unrealized gains (losses) | 71.3 | -36.9 | 34.4 | -196.1 | 54.6 | -141.5 | |||||||||||||
Pension and postretirement benefits: | |||||||||||||||||||
Amortization of net actuarial loss and prior service | |||||||||||||||||||
cost recognized as net periodic benefit cost | 7.7 | -2.7 | 5.0 | 12.1 | -4.2 | 7.9 | |||||||||||||
Cumulative foreign currency translation adjustment: | |||||||||||||||||||
Foreign currency translation recognized during | |||||||||||||||||||
the period | -4.5 | 1.6 | -2.9 | -6.8 | 2.4 | -4.4 | |||||||||||||
Other comprehensive income (loss) | $ | 74.5 | $ | -38 | $ | 36.5 | $ | -190.8 | $ | 52.8 | $ | -138 | |||||||
Reclassifications out of accumulated other comprehensive income were as follows: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amount Reclassified from | |||||||||||||||||||
Details about Accumulated Other | Accumulated Other | Affected Line Item in the Statement | |||||||||||||||||
Comprehensive Income Components | Comprehensive Income | Where Net Income is Presented | |||||||||||||||||
Unrealized gains on available-for-sale | |||||||||||||||||||
securities and derivative instruments | $ | 4.6 | $ | 3.9 | $ | 31.3 | $ | 27.7 | Net realized gains from sales and other | ||||||||||
Net other-than-temporary impairment | |||||||||||||||||||
-0.3 | -2.1 | -0.4 | -3.7 | losses on investments recognized | |||||||||||||||
in earnings | |||||||||||||||||||
4.3 | 1.8 | 30.9 | 24.0 | Total before tax | |||||||||||||||
2.4 | 2.8 | 3.9 | 5.5 | Tax benefit | |||||||||||||||
6.7 | 4.6 | 34.8 | 29.5 | Net of tax | |||||||||||||||
Amortization of defined benefit pension | Loss adjustment expenses and other | ||||||||||||||||||
and postretirement plans | -2.5 | -2.9 | -7.7 | -12.1 | operating expenses | ||||||||||||||
0.9 | 1.0 | 2.7 | 4.2 | Tax benefit | |||||||||||||||
-1.6 | -1.9 | -5 | -7.9 | Net of tax | |||||||||||||||
Total reclassifications for the period | $ | 5.1 | $ | 2.7 | $ | 29.8 | $ | 21.6 | Net of tax | ||||||||||
The amount reclassified from accumulated other comprehensive income for the pension and postretirement benefits was allocated approximately 40% to loss adjustment expenses and 60% to other operating expenses for both the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
8. Segment Information | |||||||||||||
The Company’s primary business operations include insurance products and services provided through four operating segments. The domestic operating segments are Commercial Lines, Personal Lines and Other, and the Company’s international operating segment is Chaucer. Commercial Lines includes commercial multiple peril, commercial automobile, workers’ compensation, and other commercial coverages, such as specialty program business, inland marine, management and professional liability and surety. Personal Lines includes personal automobile, homeowners and other personal coverages. Chaucer includes marine and aviation, energy, property, U.K. motor, and casualty and other coverages (which includes international liability, specialist coverages, and syndicate participations). Included in Other are Opus Investment Management, Inc., which markets investment management services to institutions, pension funds and other organizations; earnings on holding company assets; and, a voluntary pools business which is in run-off. The separate financial information is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. | |||||||||||||
The Company reports interest expense related to debt separately from the earnings of its operating segments. This consists of interest on the Company’s senior debentures, subordinated debentures, collateralized borrowings with the Federal Home Loan Bank of Boston, and letter of credit facility. Management evaluates the results of the aforementioned segments based on operating income before taxes, which also excludes interest expense on debt. Operating income before taxes excludes certain items which are included in net income, such as net realized investment gains and losses (including gains and losses on certain derivative instruments). Such gains and losses are excluded since they are determined by interest rates, financial markets and the timing of sales. Also, operating income before taxes excludes net gains and losses on disposals of businesses, gains and losses related to the repayment of debt, discontinued operations, costs to acquire businesses, restructuring costs, extraordinary items, the cumulative effect of accounting changes and certain other items. Although the items excluded from operating income before taxes may be important components in understanding and assessing the Company’s overall financial performance, management believes that the presentation of operating income before taxes enhances an investor’s understanding of the Company’s results of operations by highlighting net income attributable to the core operations of the business. However, operating income before taxes should not be construed as a substitute for income before income taxes and operating income should not be construed as a substitute for net income. | |||||||||||||
Summarized below is financial information with respect to the Company’s business segments. | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||
Operating revenues: | |||||||||||||
Commercial Lines | $ | 561.4 | $ | 530.0 | $ | 1,670.3 | $ | 1,568.4 | |||||
Personal Lines | 373.9 | 385.1 | 1,116.3 | 1,165.1 | |||||||||
Chaucer | 323.6 | 283.4 | 958.7 | 800.8 | |||||||||
Other | 1.8 | 2.3 | 5.7 | 7.6 | |||||||||
Total | 1,260.7 | 1,200.8 | 3,751.0 | 3,541.9 | |||||||||
Net realized investment gains | 4.9 | 1.0 | 31.5 | 22.8 | |||||||||
Total revenues | $ | 1,265.6 | $ | 1,201.8 | $ | 3,782.5 | $ | 3,564.7 | |||||
Operating income (loss) before income taxes: | |||||||||||||
Commercial Lines: | |||||||||||||
GAAP underwriting gain (loss) | $ | 5.9 | $ | 2.8 | $ | -8.1 | $ | -9.8 | |||||
Net investment income | 37.4 | 35.3 | 111.9 | 107.4 | |||||||||
Other (expense) income | -0.2 | 0.4 | -0.4 | 0.1 | |||||||||
Commercial Lines operating income | 43.1 | 38.5 | 103.4 | 97.7 | |||||||||
Personal Lines: | |||||||||||||
GAAP underwriting (loss) income | -12.4 | 18.0 | -6.7 | 27.8 | |||||||||
Net investment income | 18.0 | 18.6 | 53.9 | 56.7 | |||||||||
Other income | 1.1 | 1.1 | 3.8 | 3.6 | |||||||||
Personal Lines operating income | 6.7 | 37.7 | 51.0 | 88.1 | |||||||||
Chaucer: | |||||||||||||
GAAP underwriting income | 25.2 | 20.8 | 86.0 | 78.5 | |||||||||
Net investment income | 11.0 | 10.2 | 32.2 | 31.4 | |||||||||
Other income | 3.2 | 1.4 | 8.5 | 0.3 | |||||||||
Chaucer operating income | 39.4 | 32.4 | 126.7 | 110.2 | |||||||||
Other: | |||||||||||||
GAAP underwriting loss | -0.7 | -0.2 | -2.1 | -2.3 | |||||||||
Net investment income | 1.1 | 1.6 | 3.5 | 5.4 | |||||||||
Other net expenses | -3.2 | -2.8 | -8.9 | -8.6 | |||||||||
Other operating loss | -2.8 | -1.4 | -7.5 | -5.5 | |||||||||
Operating income before interest expense and income taxes | 86.4 | 107.2 | 273.6 | 290.5 | |||||||||
Interest on debt | -16.3 | -16.6 | -48.9 | -48.7 | |||||||||
Operating income before income taxes | 70.1 | 90.6 | 224.7 | 241.8 | |||||||||
Non-operating income items: | |||||||||||||
Net realized investment gains | 4.9 | 1.0 | 31.5 | 22.8 | |||||||||
Loss on real estate | - | -4.7 | - | -4.7 | |||||||||
Net loss from repayment of debt | -0.1 | - | -0.1 | -19.1 | |||||||||
Net costs related to acquired businesses | - | -0.2 | -1.1 | - | |||||||||
Net foreign exchange gains (losses) | 0.4 | -0.6 | 0.1 | 0.1 | |||||||||
Income before income taxes | $ | 75.3 | $ | 86.1 | $ | 255.1 | $ | 240.9 | |||||
The Company recognized $0.1 million in net foreign currency transaction gains in the Statements of Income during the three months ended September 30, 2014 compared to $7.5 million in net foreign currency gains during the three months ended September 30, 2013. The Company recognized $5.9 million in net foreign currency transaction gains in the Statements of Income during the nine months ended September 30, 2014 compared to $0.2 million in net foreign currency losses during the nine months ended September 30, 2013. | |||||||||||||
The following table provides identifiable assets for the Company’s business segments and discontinued operations: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in millions) | Identifiable Assets | ||||||||||||
U.S. Companies | $ | 9,353.3 | $ | 8,962.6 | |||||||||
Chaucer | 4,492.7 | 4,301.2 | |||||||||||
Discontinued operations | 114.2 | 114.9 | |||||||||||
Total | $ | 13,960.2 | $ | 13,378.7 | |||||||||
The Company reviews the assets of its U.S. Companies collectively and does not allocate them between the Commercial Lines, Personal Lines and Other segments. | |||||||||||||
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stock-based Compensation [Abstract] | ' | ||||||||||||
Stock-based Compensation | ' | ||||||||||||
9. Stock-based Compensation | |||||||||||||
On May 20, 2014 the shareholders approved the adoption of The Hanover Insurance Group 2014 Long-Term Incentive Plan (the “2014 Stock Plan”). With respect to new share-based award issuances, the 2014 Stock Plan replaced The Hanover Insurance Group, Inc. 2006 Long-Term Incentive Plan (the “2006 Stock Plan”) and provided authorization for 6,100,000 shares in a new share pool plus any shares from the 2006 Stock Plan that may become available as a result of the cash settlement, forfeiture, expiration or cancellation of such awards. The 2014 Stock Plan provides for the granting of the same types of awards as the 2006 Stock Plan, which includes stock options and stock appreciation rights “SAR”, restricted and unrestricted stock, stock units, performance and market-based stock awards, and cash awards. In accordance with the 2014 Stock Plan, the issuance of one share of common stock in the form of an option or SAR will reduce the share pool by one share, whereas the issuance of one share of common stock for the other types of stock awards provided by the plan will reduce the pool by 3.8 shares. As of September 30, 2014, there were 6,154,360 shares available for grants under the 2014 Stock Plan. | |||||||||||||
Additionally, on May 20, 2014, the shareholders approved The Hanover Insurance Group 2014 Employee Stock Purchase plan (the “ESPP Plan”) and the Chaucer Share Incentive Plan (the “SIP Plan”), authorizing the issuance of 2,500,000 and 750,000 shares, respectively, under such plans. As of September 30, 2014, 23,105 shares and 11,667 shares have been issued under the ESPP Plan and the SIP Plan, respectively. | |||||||||||||
Compensation cost and the related tax benefits were as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||
Stock-based compensation expense | $ | 3.8 | $ | 3.2 | $ | 11.1 | $ | 8.9 | |||||
Tax benefit | -1.3 | -1.1 | -3.9 | -3.1 | |||||||||
Stock-based compensation expense, net of taxes | $ | 2.5 | $ | 2.1 | $ | 7.2 | $ | 5.8 | |||||
Stock Options | |||||||||||||
Information on the Company’s stock option plans is summarized below. | |||||||||||||
Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in whole shares and dollars) | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||
Outstanding, beginning of period | 2,049,173 | $ | 41.18 | 2,892,882 | $ | 38.28 | |||||||
Granted | 684,200 | 58.03 | 537,800 | 42.53 | |||||||||
Exercised | -278,368 | 38.99 | -965,861 | 33.80 | |||||||||
Forfeited or cancelled | -47,553 | 43.77 | -183,250 | 41.60 | |||||||||
Outstanding, end of period | 2,407,452 | 46.17 | 2,281,571 | 40.91 | |||||||||
Restricted Stock Units | |||||||||||||
The following tables summarize activity information about employee restricted stock units: | |||||||||||||
Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in whole shares and dollars) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||
Time-based restricted stock units: | |||||||||||||
Outstanding, beginning of period | 525,980 | $ | 41.20 | 750,837 | $ | 40.15 | |||||||
Granted | 94,240 | 58.02 | 139,682 | 43.21 | |||||||||
Vested | -225,178 | 41.64 | -265,209 | 39.59 | |||||||||
Forfeited | -10,851 | 41.82 | -60,042 | 41.25 | |||||||||
Outstanding, end of period | 384,191 | 45.05 | 565,268 | 41.05 | |||||||||
Performance-based and market-based restricted stock units: | |||||||||||||
Outstanding, beginning of period | 184,626 | $ | 40.42 | 132,775 | $ | 39.97 | |||||||
Granted | 60,338 | 55.73 | 82,795 | 41.85 | |||||||||
Vested | -22,826 | 44.78 | - | - | |||||||||
Forfeited | -3,800 | 37.90 | -22,700 | 40.83 | |||||||||
Outstanding, end of period | 218,338 | 44.24 | 192,870 | 40.68 | |||||||||
Performance based restricted stock units are based upon the achievement of the performance metric at 100%. These units have the potential to range from 0% to 200% of the shares disclosed, which varies based on grant year and individual participation level. Increases above the 100% target level are reflected as granted in the period in which performance-based stock unit goals are achieved. Decreases below the 100% target level are reflected as forfeited. Included in the amounts granted above for the performance-based restricted stock units were 1,013 shares related to awards that a performance metric in excess of 100% was achieved. These awards vested in the first quarter of 2014. | |||||||||||||
In the first nine months of 2014 and 2013, the Company granted market-based awards totaling 56,625 and 76,175, respectively, to certain members of senior management, which are included in the table above as performance and market-based restricted stock activity. The vesting of these stock units is based on the relative total shareholder return (“TSR”) of the Company. This metric is generally based on relative TSR for a three-year period, as compared to a Property and Casualty Index of peer companies. The fair value of market based awards was estimated at the date of grant using a valuation model. These units have the potential to range from 0% to 150% of the shares disclosed. Included in the amount granted above were 1,875 shares related to market-based awards that achieved a payout in excess of 100%. These awards vested in the first quarter of 2014. | |||||||||||||
Earnings_Per_Share_and_Shareho
Earnings Per Share and Shareholders' Equity Transactions | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share and Shareholdersb Equity Transactions [Abstract] | ' | ||||||||||||
Earnings Per Share and Shareholders' Equity Transactions | ' | ||||||||||||
10. Earnings Per Share and Shareholders’ Equity Transactions | |||||||||||||
The following table provides weighted average share information used in the calculation of the Company’s basic and diluted earnings per share: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||
Basic shares used in the calculation of earnings per share | 44.1 | 43.8 | 44.0 | 44.1 | |||||||||
Dilutive effect of securities: | |||||||||||||
Employee stock options | 0.4 | 0.4 | 0.5 | 0.3 | |||||||||
Non-vested stock grants | 0.4 | 0.4 | 0.4 | 0.5 | |||||||||
Diluted shares used in the calculation of earnings per share | 44.9 | 44.6 | 44.9 | 44.9 | |||||||||
Per share effect of dilutive securities on income from continuing operations | $ | -0.03 | $ | -0.03 | $ | -0.08 | $ | -0.07 | |||||
Per share effect of dilutive securities on net income | $ | -0.03 | $ | -0.03 | $ | -0.09 | $ | -0.07 | |||||
Diluted earnings per share for the three months ended September 30, 2014 excludes 0.7 million of common shares issuable under the Company’s stock compensation plans, because their effect would be antidilutive. All of the common shares issuable under the Company’s stock compensation plan were included in the diluted earnings per share for the three months ended September 30, 2013. Diluted earnings per share for both the nine months ended September 30, 2014 and 2013 excludes 0.7 million of common shares issuable under the Company’s stock compensation plans, because their effect would be antidilutive. | |||||||||||||
Since October 2007 and through September 2014, the Company’s Board of Directors has authorized aggregate repurchases of the Company’s common stock of up to $600 million. As of September 30, 2014, the Company has $116.6 million available for repurchases under these repurchase authorizations. Repurchases may be executed using open market purchases, privately negotiated transactions, accelerated repurchase programs or other transactions. The Company is not required to purchase any specific number of shares or to make purchases by any certain date under this program. During the first nine months of 2014, the Company purchased 0.3 million shares of the Company’s common stock at a cost of $20.4 million. | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
11. Commitments and Contingencies | |
Legal Proceedings | |
Durand Litigation | |
On March 12, 2007, a putative class action suit captioned Jennifer A. Durand v. The Hanover Insurance Group, Inc., and The Allmerica Financial Cash Balance Pension Plan was filed in the United States District Court for the Western District of Kentucky. The named plaintiff, a former employee who received a lump sum distribution from the Company’s Cash Balance Plan (the “Plan”) at or about the time of her termination, claims that she and others similarly situated did not receive the appropriate lump sum distribution because in computing the lump sum, the Company and the Plan understated the accrued benefit in the calculation. The plaintiff claims that the Plan underpaid her distributions and those of similarly situated participants by failing to pay an additional so-called “whipsaw” amount reflecting the present value of an estimate of future interest credits from the date of the lump sum distribution to each participant’s retirement age of 65. | |
The plaintiff filed an Amended Complaint adding two new named plaintiffs and additional claims on December 11, 2009. In response, the Company filed a Motion to Dismiss on January 30, 2010. In addition to the pending claim challenging the calculation of lump sum distributions, the Amended Complaint included: (a) a claim that the Plan failed to calculate participants’ account balances and lump sum payments properly because interest credits were based solely upon the performance of each participant’s selection from among various hypothetical investment options (as the Plan provided) rather than crediting the greater of that performance or the 30 year Treasury rate; (b) a claim that the 2004 Plan amendment, which changed interest crediting for all participants from the performance of participant’s investment selections to the 30 year Treasury rate, reduced benefits in violation of the Employee Retirement Income Security Act of 1974 (“ERISA”) for participants who had account balances as of the amendment date by not continuing to provide them performance-based interest crediting on those balances; and (c) claims against the Company for breach of fiduciary duty and ERISA notice requirements arising from the various interest crediting and lump sum distribution matters of which plaintiffs complain. On March 31, 2011, the District Court granted the Company and the Plan’s Motion to Dismiss on statute of limitations grounds the additional claims set forth in (a) and (b) above, however, in response to a motion for reconsideration, the Court allowed the new breach of fiduciary duty claim to stand, but only as to plaintiffs’ “whipsaw” claim that remained in the case. On June 22, 2012, the Company and the Plan filed a Partial Motion for Summary Judgment to dismiss the “whipsaw” claim of one of the named plaintiffs who received his lump sum distribution after December 31, 2003. On October 2, 2013, the Court granted the Company and the Plan’s Partial Motion for Summary Judgment and dismissed with prejudice the “whipsaw” claim of the named plaintiff who received a lump sum distribution after December 31, 2003 and the similar claims of the putative class members he sought to represent. On December 17, 2013, the Court entered an order certifying a class to bring “whipsaw” and related breach of fiduciary duty claims consisting of all persons who received a lump sum distribution between March 1, 1997 and December 31, 2003, and a subclass to bring such claims consisting of all persons who received lump sum distributions between March 1, 1997 and March 12, 2002. On December 17, 2013, the Court also granted plaintiffs’ motion for entry of a final order allowing an immediate appeal by the two named plaintiffs added in the Amended Complaint of their dismissed claims that the 2004 Plan amendment reduced benefits in violation of ERISA, and for one of them, that his post-2003 lump sum distribution should have been greater. On January 14, 2014, the Company filed a Motion to Alter or Amend the Court’s December 17, 2013 Order requesting that the Court reverse its order making the dismissed claims final and appealable or, in the alternative, stay merits discovery on the claims remaining in the district court pending resolution of the dismissed plaintiffs’ appeal. The Court denied this motion on April 30, 2014. The appeal of the dismissal of the claims of the two named plaintiffs added in the Amended Complaint was filed on May 30, 2014 and is pending. | |
At this time, the Company is unable to provide a reasonable estimate of the potential range of ultimate liability if the outcome of the suit is unfavorable. The extent to which any of the plaintiffs’ multiple theories of liability, some of which are overlapping and others of which are quite complex and novel, are accepted and upheld on appeal will significantly affect the Plan’s or the Company’s potential liability. The statute of limitations applicable to the class has not yet been finally determined and the extent of potential liability, if any, will depend on this final determination. In addition, assuming for these purposes that the plaintiffs prevail with respect to claims that benefits accrued or payable under the Plan were understated, then there are numerous possible theories and other variables upon which any revised calculation of benefits as requested under plaintiffs’ claims could be based. Any adverse judgment in this case against the Plan would be expected to create a liability for the Plan, with resulting effects on the Plan’s assets available to pay benefits. The Company’s future required funding of the Plan could also be impacted by such a liability. | |
Other Matters | |
The Company has been named a defendant in various other legal proceedings arising in the normal course of business. In addition, the Company is involved, from time to time, in examinations, investigations and proceedings by governmental and self-regulatory agencies. The potential outcome of any such action or regulatory proceedings in which the Company has been named a defendant or the subject of an inquiry or investigation, and its ultimate liability, if any, from such action or regulatory proceedings, is difficult to predict at this time. The ultimate resolutions of such proceedings are not expected to have a material effect on its financial position, although they could have a material effect on the results of operations for a particular quarter or annual period. | |
Residual Markets | |
The Company is required to participate in residual markets in various states, which generally pertain to high risk insureds, disrupted markets or lines of business or geographic areas where rates are regarded as excessive. The results of the residual markets are not subject to the predictability associated with the Company’s own managed business, and are significant to both the personal and commercial automobile lines of business, the workers’ compensation line of business, and the homeowners line of business. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
12. Subsequent Events | |
There were no subsequent events requiring adjustment to the financial statements and no additional disclosures required in the notes to the interim consolidated financial statements. | |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
Amortized | Gross | Gross | OTTI | ||||||||||||||||
Cost or | Unrealized | Unrealized | Unrealized | ||||||||||||||||
(in millions) | Cost | Gains | Losses | Fair Value | Losses | ||||||||||||||
Fixed maturities: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 408.7 | $ | 5.2 | $ | 6.3 | $ | 407.6 | $ | - | |||||||||
Foreign government | 339.0 | 2.9 | 1.0 | 340.9 | - | ||||||||||||||
Municipal | 1,071.9 | 56.9 | 9.3 | 1,119.5 | - | ||||||||||||||
Corporate | 3,814.2 | 171.8 | 21.5 | 3,964.5 | 7.4 | ||||||||||||||
Residential mortgage-backed | 737.6 | 18.9 | 6.1 | 750.4 | 0.4 | ||||||||||||||
Commercial mortgage-backed | 440.0 | 10.2 | 2.3 | 447.9 | - | ||||||||||||||
Asset-backed | 195.5 | 1.4 | 0.2 | 196.7 | - | ||||||||||||||
Total fixed maturities | $ | 7,006.9 | $ | 267.3 | $ | 46.7 | $ | 7,227.5 | $ | 7.8 | |||||||||
Equity securities | $ | 479.5 | $ | 71.2 | $ | 2.2 | $ | 548.5 | $ | - | |||||||||
31-Dec-13 | |||||||||||||||||||
Amortized | Gross | Gross | OTTI | ||||||||||||||||
Cost or | Unrealized | Unrealized | Unrealized | ||||||||||||||||
(in millions) | Cost | Gains | Losses | Fair Value | Losses | ||||||||||||||
Fixed maturities: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 417.5 | $ | 3.3 | $ | 14.2 | $ | 406.6 | $ | - | |||||||||
Foreign government | 304.5 | 2.1 | 1.6 | 305.0 | - | ||||||||||||||
Municipal | 1,108.0 | 37.4 | 19.1 | 1,126.3 | - | ||||||||||||||
Corporate | 3,690.2 | 171.5 | 37.5 | 3,824.2 | 8.6 | ||||||||||||||
Residential mortgage-backed | 722.8 | 20.1 | 14.1 | 728.8 | 1.6 | ||||||||||||||
Commercial mortgage-backed | 405.9 | 10.5 | 4.8 | 411.6 | - | ||||||||||||||
Asset-backed | 166.3 | 2.0 | 0.2 | 168.1 | - | ||||||||||||||
Total fixed maturities | $ | 6,815.2 | $ | 246.9 | $ | 91.5 | $ | 6,970.6 | $ | 10.2 | |||||||||
Equity securities | $ | 366.5 | $ | 66.9 | $ | 3.2 | $ | 430.2 | $ | - | |||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
Amortized | Fair | ||||||||||||||||||
(in millions) | Cost | Value | |||||||||||||||||
Due in one year or less | $ | 482.4 | $ | 486.3 | |||||||||||||||
Due after one year through five years | 2,283.4 | 2,378.5 | |||||||||||||||||
Due after five years through ten years | 2,214.6 | 2,286.7 | |||||||||||||||||
Due after ten years | 653.4 | 681.0 | |||||||||||||||||
5,633.8 | 5,832.5 | ||||||||||||||||||
Mortgage-backed and asset-backed securities | 1,373.1 | 1,395.0 | |||||||||||||||||
Total fixed maturities | $ | 7,006.9 | $ | 7,227.5 | |||||||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
12 months or less | Greater than 12 months | Total | |||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||
(in millions) | Losses | Value | Losses | Value | Losses | Value | |||||||||||||
Fixed maturities: | |||||||||||||||||||
Investment grade: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 0.1 | $ | 28.5 | $ | 6.2 | $ | 151.5 | $ | 6.3 | $ | 180.0 | |||||||
Foreign governments | 0.5 | 34.5 | 0.5 | 74.5 | 1.0 | 109.0 | |||||||||||||
Municipal | 0.6 | 95.7 | 5.7 | 149.9 | 6.3 | 245.6 | |||||||||||||
Corporate | 5.4 | 463.2 | 10.7 | 258.3 | 16.1 | 721.5 | |||||||||||||
Residential mortgage-backed | 0.9 | 97.2 | 5.2 | 132.5 | 6.1 | 229.7 | |||||||||||||
Commercial mortgage-backed | 0.4 | 89.0 | 1.9 | 63.4 | 2.3 | 152.4 | |||||||||||||
Asset-backed | 0.1 | 36.2 | 0.1 | 14.1 | 0.2 | 50.3 | |||||||||||||
Total investment grade | 8.0 | 844.3 | 30.3 | 844.2 | 38.3 | 1,688.5 | |||||||||||||
Below investment grade: | |||||||||||||||||||
Municipal | 3.0 | 2.0 | - | - | 3.0 | 2.0 | |||||||||||||
Corporate | 2.7 | 116.7 | 2.7 | 28.5 | 5.4 | 145.2 | |||||||||||||
Total below investment grade | 5.7 | 118.7 | 2.7 | 28.5 | 8.4 | 147.2 | |||||||||||||
Total fixed maturities | 13.7 | 963.0 | 33.0 | 872.7 | 46.7 | 1,835.7 | |||||||||||||
Equity securities | 1.3 | 37.8 | 0.9 | 3.4 | 2.2 | 41.2 | |||||||||||||
Total | $ | 15.0 | $ | 1,000.8 | $ | 33.9 | $ | 876.1 | $ | 48.9 | $ | 1,876.9 | |||||||
31-Dec-13 | |||||||||||||||||||
12 months or less | Greater than 12 months | Total | |||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | ||||||||||||||
(in millions) | Losses | Value | Losses | Value | Losses | Value | |||||||||||||
Fixed maturities: | |||||||||||||||||||
Investment grade: | |||||||||||||||||||
U.S. Treasury and government agencies | $ | 12.3 | $ | 247.9 | $ | 1.9 | $ | 18.8 | $ | 14.2 | $ | 266.7 | |||||||
Foreign governments | 1.5 | 129.0 | 0.1 | 17.3 | 1.6 | 146.3 | |||||||||||||
Municipal | 14.8 | 345.3 | 4.3 | 39.9 | 19.1 | 385.2 | |||||||||||||
Corporate | 21.4 | 872.7 | 11.6 | 87.7 | 33.0 | 960.4 | |||||||||||||
Residential mortgage-backed | 10.3 | 321.1 | 3.4 | 29.5 | 13.7 | 350.6 | |||||||||||||
Commercial mortgage-backed | 4.2 | 155.4 | 0.6 | 10.2 | 4.8 | 165.6 | |||||||||||||
Asset-backed | 0.2 | 31.0 | - | 0.3 | 0.2 | 31.3 | |||||||||||||
Total investment grade | 64.7 | 2,102.4 | 21.9 | 203.7 | 86.6 | 2,306.1 | |||||||||||||
Below investment grade: | |||||||||||||||||||
Corporate | 2.9 | 71.9 | 1.6 | 21.4 | 4.5 | 93.3 | |||||||||||||
Residential mortgage-backed | 0.1 | 2.0 | 0.3 | 1.5 | 0.4 | 3.5 | |||||||||||||
Total below investment grade | 3.0 | 73.9 | 1.9 | 22.9 | 4.9 | 96.8 | |||||||||||||
Total fixed maturities | 67.7 | 2,176.3 | 23.8 | 226.6 | 91.5 | 2,402.9 | |||||||||||||
Equity securities | 2.8 | 45.2 | 0.4 | 0.7 | 3.2 | 45.9 | |||||||||||||
Total | $ | 70.5 | $ | 2,221.5 | $ | 24.2 | $ | 227.3 | $ | 94.7 | $ | 2,448.8 | |||||||
Schedule of Realized Gain (Loss) | ' | ||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Proceeds from | Gross | Gross | Proceeds from | Gross | Gross | ||||||||||||||
(in millions) | Sales | Gains | Losses | Sales | Gains | Losses | |||||||||||||
Fixed maturities | $ | 39.7 | $ | 1.1 | $ | - | $ | 83.3 | $ | 1.0 | $ | 0.9 | |||||||
Equity securities | $ | 13.5 | $ | 2.4 | $ | - | $ | 10.8 | $ | 1.5 | $ | - | |||||||
Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Proceeds from | Gross | Gross | Proceeds from | Gross | Gross | ||||||||||||||
(in millions) | Sales | Gains | Losses | Sales | Gains | Losses | |||||||||||||
Fixed maturities | $ | 247.8 | $ | 4.4 | $ | 2.3 | $ | 369.0 | $ | 5.6 | $ | 1.9 | |||||||
Equity securities | $ | 85.9 | $ | 26.5 | $ | 0.8 | $ | 89.7 | $ | 18.5 | $ | 0.3 | |||||||
Rollforward of Cumulative Amounts Related to Credit Loss Portion of OTTI Losses | ' | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Credit losses at beginning of period | $ | 4.3 | $ | 7.3 | $ | 7.8 | $ | 8.6 | |||||||||||
Credit losses for which an OTTI was not | |||||||||||||||||||
previously recognized | - | 0.1 | - | 0.4 | |||||||||||||||
Additional credit losses on securities for which an | |||||||||||||||||||
OTTI was previously recognized | - | - | - | 0.2 | |||||||||||||||
Reductions for securities sold, matured or called | - | -0.1 | -3.1 | -1.9 | |||||||||||||||
Reductions for securities reclassified as intended to sell | - | - | -0.4 | - | |||||||||||||||
Credit losses at the end of period | $ | 4.3 | $ | 7.3 | $ | 4.3 | $ | 7.3 | |||||||||||
0 | |||||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
(in millions) | Value | Value | Value | Value | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 509.6 | $ | 509.6 | $ | 486.2 | $ | 486.2 | |||||||||||||||||
Fixed maturities | 7,227.5 | 7,227.5 | 6,970.6 | 6,970.6 | |||||||||||||||||||||
Equity securities | 548.5 | 548.5 | 430.2 | 430.2 | |||||||||||||||||||||
Other investments | 222.6 | 225.2 | 173.1 | 173.7 | |||||||||||||||||||||
Total financial assets | $ | 8,508.2 | $ | 8,510.8 | $ | 8,060.1 | $ | 8,060.7 | |||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Debt | $ | 903.4 | $ | 1,020.5 | $ | 903.9 | $ | 961.7 | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | 407.6 | $ | 160.4 | $ | 247.2 | $ | - | |||||||||||||||||
Foreign government | 340.9 | 43.1 | 297.8 | - | |||||||||||||||||||||
Municipal | 1,119.5 | - | 1,093.5 | 26.0 | |||||||||||||||||||||
Corporate | 3,964.5 | - | 3,949.4 | 15.1 | |||||||||||||||||||||
Residential mortgage-backed, U.S. agency backed | 639.1 | - | 639.1 | - | |||||||||||||||||||||
Residential mortgage-backed, non-agency | 111.3 | - | 111.3 | - | |||||||||||||||||||||
Commercial mortgage-backed | 447.9 | - | 426.1 | 21.8 | |||||||||||||||||||||
Asset-backed | 196.7 | - | 196.7 | - | |||||||||||||||||||||
Total fixed maturities | 7,227.5 | 203.5 | 6,961.1 | 62.9 | |||||||||||||||||||||
Equity securities | 539.2 | 538.0 | - | 1.2 | |||||||||||||||||||||
Other investments | 129.6 | - | 126.0 | 3.6 | |||||||||||||||||||||
Total investment assets at fair value | $ | 7,896.3 | $ | 741.5 | $ | 7,087.1 | $ | 67.7 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | 406.6 | $ | 167.2 | $ | 239.4 | $ | - | |||||||||||||||||
Foreign government | 305.0 | 45.6 | 259.4 | - | |||||||||||||||||||||
Municipal | 1,126.3 | - | 1,100.7 | 25.6 | |||||||||||||||||||||
Corporate | 3,824.2 | - | 3,811.2 | 13.0 | |||||||||||||||||||||
Residential mortgage-backed, U.S. agency backed | 573.2 | - | 573.2 | - | |||||||||||||||||||||
Residential mortgage-backed, non-agency | 155.6 | - | 155.1 | 0.5 | |||||||||||||||||||||
Commercial mortgage-backed | 411.6 | - | 388.7 | 22.9 | |||||||||||||||||||||
Asset-backed | 168.1 | - | 168.1 | - | |||||||||||||||||||||
Total fixed maturities | 6,970.6 | 212.8 | 6,695.8 | 62.0 | |||||||||||||||||||||
Equity securities | 420.9 | 382.3 | - | 38.6 | |||||||||||||||||||||
Other investments | 153.2 | - | 149.6 | 3.6 | |||||||||||||||||||||
Total investment assets at fair value | $ | 7,544.7 | $ | 595.1 | $ | 6,845.4 | $ | 104.2 | |||||||||||||||||
Estimated Fair Values of Financial Instruments Not Carried at Fair Value | ' | ||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 509.6 | $ | 509.6 | $ | - | $ | - | |||||||||||||||||
Equity securities | 9.3 | - | 9.3 | - | |||||||||||||||||||||
Other investments | 95.6 | - | - | 95.6 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Debt | $ | 1,020.5 | $ | - | $ | 1,020.5 | $ | - | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 486.2 | $ | 486.2 | $ | - | $ | - | |||||||||||||||||
Equity securities | 9.3 | - | 9.3 | - | |||||||||||||||||||||
Other investments | 20.5 | - | 2.7 | 17.8 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Debt | $ | 961.7 | $ | - | $ | 961.7 | $ | - | |||||||||||||||||
Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||||||
Fixed Maturities | |||||||||||||||||||||||||
(in millions) | Municipal | Corporate | Residential mortgage-backed, non-agency | Commercial mortgage-backed | Total | Equity and Other | Total Assets | ||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Balance July 1, 2014 | $ | 26.8 | $ | 13.2 | $ | - | $ | 22.5 | $ | 62.5 | $ | 4.8 | $ | 67.3 | |||||||||||
Transfers into Level 3 | - | 2.2 | - | - | 2.2 | - | 2.2 | ||||||||||||||||||
Total losses: | |||||||||||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income - net depreciation on available-for-sale securities | -0.2 | -0.2 | - | -0.3 | -0.7 | - | -0.7 | ||||||||||||||||||
Sales | -0.6 | -0.1 | - | -0.4 | -1.1 | - | -1.1 | ||||||||||||||||||
Balance September 30, 2014 | $ | 26.0 | $ | 15.1 | $ | - | $ | 21.8 | $ | 62.9 | $ | 4.8 | $ | 67.7 | |||||||||||
Three Months Ended | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Balance July 1, 2013 | $ | 27.9 | $ | 19.5 | $ | 0.6 | $ | 23.6 | $ | 71.6 | $ | 32.3 | $ | 103.9 | |||||||||||
Total gains (losses): | |||||||||||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income - net (depreciation) appreciation on available-for-sale securities | -0.1 | 0.1 | - | - | - | 2.8 | 2.8 | ||||||||||||||||||
Sales | -0.9 | - | -0.1 | -0.4 | -1.4 | - | -1.4 | ||||||||||||||||||
Balance September 30, 2013 | $ | 26.9 | $ | 19.6 | $ | 0.5 | $ | 23.2 | $ | 70.2 | $ | 35.1 | $ | 105.3 | |||||||||||
Fixed Maturities | |||||||||||||||||||||||||
(in millions) | Municipal | Corporate | Residential mortgage-backed, non-agency | Commercial mortgage-backed | Asset-backed | Total | Equity and Other | Total Assets | |||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Balance January 1, 2014 | $ | 25.6 | $ | 13.0 | $ | 0.5 | $ | 22.9 | $ | - | $ | 62.0 | $ | 42.2 | $ | 104.2 | |||||||||
Transfers into Level 3 | 2.2 | 2.2 | - | - | - | 4.4 | - | 4.4 | |||||||||||||||||
Transfers out of Level 3 | -2.6 | - | - | - | - | -2.6 | -37.4 | -40 | |||||||||||||||||
Total gains: | |||||||||||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income-net appreciation on available-for-sale securities | 0.4 | - | - | 0.4 | - | 0.8 | - | 0.8 | |||||||||||||||||
Purchases and sales: | - | ||||||||||||||||||||||||
Purchases | 2.5 | - | - | - | - | 2.5 | - | 2.5 | |||||||||||||||||
Sales | -2.1 | -0.1 | -0.5 | -1.5 | - | -4.2 | -4.2 | ||||||||||||||||||
Balance September 30, 2014 | $ | 26.0 | $ | 15.1 | $ | - | $ | 21.8 | $ | - | $ | 62.9 | $ | 4.8 | $ | 67.7 | |||||||||
Nine Months Ended | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Balance January 1, 2013 | $ | 19.4 | $ | 26.4 | $ | 0.7 | $ | 26.7 | $ | 1.5 | $ | 74.7 | $ | 28.0 | $ | 102.7 | |||||||||
Transfers into Level 3 | 9.7 | 0.2 | - | - | - | 9.9 | - | 9.9 | |||||||||||||||||
Transfers out of Level 3 | - | -2.2 | - | - | -1.5 | -3.7 | -0.9 | -4.6 | |||||||||||||||||
Total gains (losses): | |||||||||||||||||||||||||
Included in earnings | - | 0.4 | - | - | - | 0.4 | - | 0.4 | |||||||||||||||||
Included in other comprehensive | |||||||||||||||||||||||||
income-net (depreciation) appreciation on available-for-sale securities | -0.4 | -0.9 | - | -1.4 | - | -2.7 | 8.0 | 5.3 | |||||||||||||||||
Sales | -1.8 | -4.3 | -0.2 | -2.1 | - | -8.4 | - | -8.4 | |||||||||||||||||
Balance September 30, 2013 | $ | 26.9 | $ | 19.6 | $ | 0.5 | $ | 23.2 | $ | - | $ | 70.2 | $ | 35.1 | $ | 105.3 | |||||||||
Summary Gains and Losses due to Changes in Fair Value Recorded in Income for Level Three Assets | ' | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Net Realized Investment | Net Realized Investment | ||||||||||||||||||||||||
(in millions) | Gains (Losses) | Gains (Losses) | |||||||||||||||||||||||
Level 3 Assets: | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Corporate | $ | - | $ | - | $ | - | $ | 0.4 | |||||||||||||||||
Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3 | ' | ||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Valuation | Significant | Fair | Range | Fair | Range | ||||||||||||||||||||
(in millions) | Technique | Unobservable Inputs | Value | (Wtd Average) | Value | (Wtd Average) | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Municipal | Discounted | Discount for: | $ | 26.0 | $ | 25.6 | |||||||||||||||||||
cash flow | Small issue size | 0.6-4.5% (2.0%) | 1.0-4.0% (2.3%) | ||||||||||||||||||||||
Above-market coupon | 0.3-1.0% (0.4%) | 0.3-1.0% (0.5%) | |||||||||||||||||||||||
Corporate | Discounted | Discount for: | 14.8 | 12.8 | |||||||||||||||||||||
cash flow | Above-market coupon | 0.3-0.8% (0.6%) | 0.3-0.8% (0.6%) | ||||||||||||||||||||||
Small issue size | 0.3-1.0% (0.6%) | 0.3-1.0% (0.5%) | |||||||||||||||||||||||
Residential mortgage-backed, | Discounted | Discount for: | - | 0.5 | |||||||||||||||||||||
non-agency | cash flow | Small issue size | N/A | 0.5% (0.5%) | |||||||||||||||||||||
Commercial mortgage-backed | Discounted | Discount for: | 21.8 | 22.9 | |||||||||||||||||||||
cash flow | Above-market coupon | 0.5-0.8% (0.5%) | 0.5-0.8% (0.6%) | ||||||||||||||||||||||
Credit stress | 0.5% (0.5%) | 0.5% (0.5%) | |||||||||||||||||||||||
Small issue size | 0.5% (0.5%) | 0.5% (0.5%) | |||||||||||||||||||||||
Lease structure | 0.3% (0.3%) | 0.3% (0.3%) | |||||||||||||||||||||||
Equity securities | Market | Net tangible asset | 1.1 | 38.5 | |||||||||||||||||||||
comparables | market multiples | 1.0X (1.0X) | 1.3X (1.3X) | ||||||||||||||||||||||
Other | Discounted | Discount rate | 3.6 | 18.0% (18.0%) | 3.6 | 18.0% (18.0%) | |||||||||||||||||||
cash flow | |||||||||||||||||||||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Pension and Other Postretirement Benefit Plans [Abstract] | ' | ||||||||||||
Components of Net Periodic Pension Cost | ' | ||||||||||||
Three Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | Pension Plans | Postretirement Plans | |||||||||||
Service cost - benefits earned during the period | $ | 0.4 | $ | 0.4 | $ | 0.1 | $ | - | |||||
Interest cost | 8.4 | 8.0 | 0.2 | 0.2 | |||||||||
Expected return on plan assets | -9.2 | -8.9 | - | - | |||||||||
Recognized net actuarial loss | 2.9 | 3.7 | - | 0.1 | |||||||||
Amortization of prior service cost | - | - | -0.5 | -0.9 | |||||||||
Net periodic pension cost (benefit) | $ | 2.5 | $ | 3.2 | $ | -0.2 | $ | -0.6 | |||||
Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | Pension Plans | Postretirement Plans | |||||||||||
Service cost - benefits earned during the period | $ | 1.1 | $ | 1.3 | $ | 0.1 | $ | 0.1 | |||||
Interest cost | 25.3 | 23.9 | 0.6 | 1.0 | |||||||||
Expected return on plan assets | -27.5 | -26.7 | - | - | |||||||||
Recognized net actuarial loss | 8.7 | 11.0 | - | 0.2 | |||||||||
Amortization of prior service cost | 0.1 | - | -1.4 | -2.8 | |||||||||
Net settlement gain | - | - | - | -1.6 | |||||||||
Net periodic pension cost (benefit) | $ | 7.7 | $ | 9.5 | $ | -0.7 | $ | -3.1 | |||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Changes in Other Comprehensive Income | ' | ||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Tax | Tax | ||||||||||||||||||
Benefit | Net of | Benefit | Net of | ||||||||||||||||
(in millions) | Pre-Tax | (Expense) | Tax | Pre-Tax | (Expense) | Tax | |||||||||||||
Unrealized gains (losses) on available-for-sale securities and | |||||||||||||||||||
derivative instruments: | |||||||||||||||||||
Unrealized (losses) gains arising during period (net of | |||||||||||||||||||
pre-tax, ceded unrealized (losses) of $(0.4) million for the three months ended September 30, 2014) | $ | -64.3 | 22.4 | -41.9 | $ | -7.1 | $ | 2.2 | $ | -4.9 | |||||||||
Less: | |||||||||||||||||||
Amount of realized gains from sales and other | -4.6 | -2.4 | -7 | -3.9 | -2.1 | -6 | |||||||||||||
Portion of other-than-temporary impairment losses | |||||||||||||||||||
recognized in earnings | 0.3 | -0.1 | 0.2 | 2.1 | -0.7 | 1.4 | |||||||||||||
Net unrealized (losses) gains | -68.6 | 19.9 | -48.7 | -8.9 | -0.6 | -9.5 | |||||||||||||
Pension and postretirement benefits: | |||||||||||||||||||
Amortization of net actuarial loss and prior service | |||||||||||||||||||
cost recognized as net periodic benefit cost | 2.5 | -0.9 | 1.6 | 2.9 | -1 | 1.9 | |||||||||||||
Cumulative foreign currency translation adjustment: | |||||||||||||||||||
Foreign currency translation recognized during | |||||||||||||||||||
the period | -9.2 | 3.3 | -5.9 | 8.7 | -3 | 5.7 | |||||||||||||
Other comprehensive (loss) income | $ | -75.3 | $ | 22.3 | $ | -53 | $ | 2.7 | $ | -4.6 | $ | -1.9 | |||||||
Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Tax | Tax | ||||||||||||||||||
Benefit | Net of | Benefit | Net of | ||||||||||||||||
(in millions) | Pre-Tax | (Expense) | Tax | Pre-Tax | (Expense) | Tax | |||||||||||||
Unrealized gains (losses) on available-for-sale securities and | |||||||||||||||||||
derivative instruments: | |||||||||||||||||||
Unrealized gains (losses) arising during period (net of | |||||||||||||||||||
pre-tax, ceded unrealized gains (losses) of $0.8 million and ($0.8) million for the nine months ended September 30, 2014 and 2013) | $ | 102.2 | $ | -32.9 | $ | 69.3 | $ | -172.1 | $ | 60.1 | $ | -112 | |||||||
Less: | |||||||||||||||||||
Amount of realized gains from sales | |||||||||||||||||||
and other | -31.3 | -3.9 | -35.2 | -27.7 | -4.2 | -31.9 | |||||||||||||
Portion of other-than-temporary impairment losses | |||||||||||||||||||
recognized in earnings | 0.4 | -0.1 | 0.3 | 3.7 | -1.3 | 2.4 | |||||||||||||
Net unrealized gains (losses) | 71.3 | -36.9 | 34.4 | -196.1 | 54.6 | -141.5 | |||||||||||||
Pension and postretirement benefits: | |||||||||||||||||||
Amortization of net actuarial loss and prior service | |||||||||||||||||||
cost recognized as net periodic benefit cost | 7.7 | -2.7 | 5.0 | 12.1 | -4.2 | 7.9 | |||||||||||||
Cumulative foreign currency translation adjustment: | |||||||||||||||||||
Foreign currency translation recognized during | |||||||||||||||||||
the period | -4.5 | 1.6 | -2.9 | -6.8 | 2.4 | -4.4 | |||||||||||||
Other comprehensive income (loss) | $ | 74.5 | $ | -38 | $ | 36.5 | $ | -190.8 | $ | 52.8 | $ | -138 | |||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amount Reclassified from | |||||||||||||||||||
Details about Accumulated Other | Accumulated Other | Affected Line Item in the Statement | |||||||||||||||||
Comprehensive Income Components | Comprehensive Income | Where Net Income is Presented | |||||||||||||||||
Unrealized gains on available-for-sale | |||||||||||||||||||
securities and derivative instruments | $ | 4.6 | $ | 3.9 | $ | 31.3 | $ | 27.7 | Net realized gains from sales and other | ||||||||||
Net other-than-temporary impairment | |||||||||||||||||||
-0.3 | -2.1 | -0.4 | -3.7 | losses on investments recognized | |||||||||||||||
in earnings | |||||||||||||||||||
4.3 | 1.8 | 30.9 | 24.0 | Total before tax | |||||||||||||||
2.4 | 2.8 | 3.9 | 5.5 | Tax benefit | |||||||||||||||
6.7 | 4.6 | 34.8 | 29.5 | Net of tax | |||||||||||||||
Amortization of defined benefit pension | Loss adjustment expenses and other | ||||||||||||||||||
and postretirement plans | -2.5 | -2.9 | -7.7 | -12.1 | operating expenses | ||||||||||||||
0.9 | 1.0 | 2.7 | 4.2 | Tax benefit | |||||||||||||||
-1.6 | -1.9 | -5 | -7.9 | Net of tax | |||||||||||||||
Total reclassifications for the period | $ | 5.1 | $ | 2.7 | $ | 29.8 | $ | 21.6 | Net of tax | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Financial Information with Respect to Business Segments | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||
Operating revenues: | |||||||||||||
Commercial Lines | $ | 561.4 | $ | 530.0 | $ | 1,670.3 | $ | 1,568.4 | |||||
Personal Lines | 373.9 | 385.1 | 1,116.3 | 1,165.1 | |||||||||
Chaucer | 323.6 | 283.4 | 958.7 | 800.8 | |||||||||
Other | 1.8 | 2.3 | 5.7 | 7.6 | |||||||||
Total | 1,260.7 | 1,200.8 | 3,751.0 | 3,541.9 | |||||||||
Net realized investment gains | 4.9 | 1.0 | 31.5 | 22.8 | |||||||||
Total revenues | $ | 1,265.6 | $ | 1,201.8 | $ | 3,782.5 | $ | 3,564.7 | |||||
Operating income (loss) before income taxes: | |||||||||||||
Commercial Lines: | |||||||||||||
GAAP underwriting gain (loss) | $ | 5.9 | $ | 2.8 | $ | -8.1 | $ | -9.8 | |||||
Net investment income | 37.4 | 35.3 | 111.9 | 107.4 | |||||||||
Other (expense) income | -0.2 | 0.4 | -0.4 | 0.1 | |||||||||
Commercial Lines operating income | 43.1 | 38.5 | 103.4 | 97.7 | |||||||||
Personal Lines: | |||||||||||||
GAAP underwriting (loss) income | -12.4 | 18.0 | -6.7 | 27.8 | |||||||||
Net investment income | 18.0 | 18.6 | 53.9 | 56.7 | |||||||||
Other income | 1.1 | 1.1 | 3.8 | 3.6 | |||||||||
Personal Lines operating income | 6.7 | 37.7 | 51.0 | 88.1 | |||||||||
Chaucer: | |||||||||||||
GAAP underwriting income | 25.2 | 20.8 | 86.0 | 78.5 | |||||||||
Net investment income | 11.0 | 10.2 | 32.2 | 31.4 | |||||||||
Other income | 3.2 | 1.4 | 8.5 | 0.3 | |||||||||
Chaucer operating income | 39.4 | 32.4 | 126.7 | 110.2 | |||||||||
Other: | |||||||||||||
GAAP underwriting loss | -0.7 | -0.2 | -2.1 | -2.3 | |||||||||
Net investment income | 1.1 | 1.6 | 3.5 | 5.4 | |||||||||
Other net expenses | -3.2 | -2.8 | -8.9 | -8.6 | |||||||||
Other operating loss | -2.8 | -1.4 | -7.5 | -5.5 | |||||||||
Operating income before interest expense and income taxes | 86.4 | 107.2 | 273.6 | 290.5 | |||||||||
Interest on debt | -16.3 | -16.6 | -48.9 | -48.7 | |||||||||
Operating income before income taxes | 70.1 | 90.6 | 224.7 | 241.8 | |||||||||
Non-operating income items: | |||||||||||||
Net realized investment gains | 4.9 | 1.0 | 31.5 | 22.8 | |||||||||
Loss on real estate | - | -4.7 | - | -4.7 | |||||||||
Net loss from repayment of debt | -0.1 | - | -0.1 | -19.1 | |||||||||
Net costs related to acquired businesses | - | -0.2 | -1.1 | - | |||||||||
Net foreign exchange gains (losses) | 0.4 | -0.6 | 0.1 | 0.1 | |||||||||
Income before income taxes | $ | 75.3 | $ | 86.1 | $ | 255.1 | $ | 240.9 | |||||
Identifiable Assets by Business Segment | ' | ||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(in millions) | Identifiable Assets | ||||||||||||
U.S. Companies | $ | 9,353.3 | $ | 8,962.6 | |||||||||
Chaucer | 4,492.7 | 4,301.2 | |||||||||||
Discontinued operations | 114.2 | 114.9 | |||||||||||
Total | $ | 13,960.2 | $ | 13,378.7 | |||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stock-based Compensation [Abstract] | ' | ||||||||||||
Compensation Cost and Related Tax Benefits | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||
Stock-based compensation expense | $ | 3.8 | $ | 3.2 | $ | 11.1 | $ | 8.9 | |||||
Tax benefit | -1.3 | -1.1 | -3.9 | -3.1 | |||||||||
Stock-based compensation expense, net of taxes | $ | 2.5 | $ | 2.1 | $ | 7.2 | $ | 5.8 | |||||
Summary of Stock Option Plan Activity | ' | ||||||||||||
Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in whole shares and dollars) | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||
Outstanding, beginning of period | 2,049,173 | $ | 41.18 | 2,892,882 | $ | 38.28 | |||||||
Granted | 684,200 | 58.03 | 537,800 | 42.53 | |||||||||
Exercised | -278,368 | 38.99 | -965,861 | 33.80 | |||||||||
Forfeited or cancelled | -47,553 | 43.77 | -183,250 | 41.60 | |||||||||
Outstanding, end of period | 2,407,452 | 46.17 | 2,281,571 | 40.91 | |||||||||
Summary of Restricted Stock Activity | ' | ||||||||||||
Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in whole shares and dollars) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||
Time-based restricted stock units: | |||||||||||||
Outstanding, beginning of period | 525,980 | $ | 41.20 | 750,837 | $ | 40.15 | |||||||
Granted | 94,240 | 58.02 | 139,682 | 43.21 | |||||||||
Vested | -225,178 | 41.64 | -265,209 | 39.59 | |||||||||
Forfeited | -10,851 | 41.82 | -60,042 | 41.25 | |||||||||
Outstanding, end of period | 384,191 | 45.05 | 565,268 | 41.05 | |||||||||
Performance-based and market-based restricted stock units: | |||||||||||||
Outstanding, beginning of period | 184,626 | $ | 40.42 | 132,775 | $ | 39.97 | |||||||
Granted | 60,338 | 55.73 | 82,795 | 41.85 | |||||||||
Vested | -22,826 | 44.78 | - | - | |||||||||
Forfeited | -3,800 | 37.90 | -22,700 | 40.83 | |||||||||
Outstanding, end of period | 218,338 | 44.24 | 192,870 | 40.68 | |||||||||
Earnings_Per_Share_and_Shareho1
Earnings Per Share and Shareholders' Equity Transactions (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share and Shareholdersb Equity Transactions [Abstract] | ' | ||||||||||||
Information Regarding Basic and Diluted Earnings Per Share | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||
Basic shares used in the calculation of earnings per share | 44.1 | 43.8 | 44.0 | 44.1 | |||||||||
Dilutive effect of securities: | |||||||||||||
Employee stock options | 0.4 | 0.4 | 0.5 | 0.3 | |||||||||
Non-vested stock grants | 0.4 | 0.4 | 0.4 | 0.5 | |||||||||
Diluted shares used in the calculation of earnings per share | 44.9 | 44.6 | 44.9 | 44.9 | |||||||||
Per share effect of dilutive securities on income from continuing operations | $ | -0.03 | $ | -0.03 | $ | -0.08 | $ | -0.07 | |||||
Per share effect of dilutive securities on net income | $ | -0.03 | $ | -0.03 | $ | -0.09 | $ | -0.07 | |||||
Income_Taxes_Detail
Income Taxes - (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes [Abstract] | ' | ' |
Federal income tax expense | $38.70 | $41.80 |
Foreign income tax expense | 24.2 | 18.3 |
Foreign income permanently reinvested | 17.2 | 14.7 |
Effective Income Tax Rate Reconciliation, Deduction, Amount | 4.4 | ' |
Estimated taxes payable on undistributed earnings | 19 | ' |
Liability for uncertain tax positions | $4.80 | ' |
Investments_Narrative_Detail
Investments - (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Investments [Abstract] | ' | ' | ' | ' | ' |
Net unrealized gains on impaired securities | $13.60 | ' | $13.60 | ' | $16.40 |
Other Comprehensive Income Loss Reclassification Adjustment From A O C I For Writedown Of Securities Before Tax | 0.3 | 2.1 | 0.4 | 3.7 | ' |
Other-than-temporary impairments | 0.3 | 2.5 | 0.3 | 4.5 | ' |
Net other-than-temporary impairment losses on securities recognized in earnings | 0.3 | 2.1 | 0.4 | 3.7 | ' |
Amount transferred from unrealized losses in accumulated other comprehensive income | ' | 0.4 | 0.1 | 0.8 | ' |
Restricted assets, fixed maturities | 456 | ' | 456 | ' | ' |
Restricted assets, cash and cash equivalents | $5 | ' | $5 | ' | ' |
Investments_Schedule_of_Availa
Investments (Schedule of Available-for-sale Securities Reconciliation) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | $7,006.90 | $6,815.20 |
Gross Unrealized Gains | 267.3 | 246.9 |
Gross Unrealized Loss | 46.7 | 91.5 |
Fair Value | 7,227.50 | 6,970.60 |
OTTI Unrealized Losses | 7.8 | 10.2 |
US Treasury and Government [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 408.7 | 417.5 |
Gross Unrealized Gains | 5.2 | 3.3 |
Gross Unrealized Loss | 6.3 | 14.2 |
Fair Value | 407.6 | 406.6 |
Foreign Government Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 339 | 304.5 |
Gross Unrealized Gains | 2.9 | 2.1 |
Gross Unrealized Loss | 1 | 1.6 |
Fair Value | 340.9 | 305 |
Municipal [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 1,071.90 | 1,108 |
Gross Unrealized Gains | 56.9 | 37.4 |
Gross Unrealized Loss | 9.3 | 19.1 |
Fair Value | 1,119.50 | 1,126.30 |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 3,814.20 | 3,690.20 |
Gross Unrealized Gains | 171.8 | 171.5 |
Gross Unrealized Loss | 21.5 | 37.5 |
Fair Value | 3,964.50 | 3,824.20 |
OTTI Unrealized Losses | 7.4 | 8.6 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 737.6 | 722.8 |
Gross Unrealized Gains | 18.9 | 20.1 |
Gross Unrealized Loss | 6.1 | 14.1 |
Fair Value | 750.4 | 728.8 |
OTTI Unrealized Losses | 0.4 | 1.6 |
Commercial Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 440 | 405.9 |
Gross Unrealized Gains | 10.2 | 10.5 |
Gross Unrealized Loss | 2.3 | 4.8 |
Fair Value | 447.9 | 411.6 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 195.5 | 166.3 |
Gross Unrealized Gains | 1.4 | 2 |
Gross Unrealized Loss | 0.2 | 0.2 |
Fair Value | 196.7 | 168.1 |
Equity Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost or Cost | 479.5 | 366.5 |
Gross Unrealized Gains | 71.2 | 66.9 |
Gross Unrealized Loss | 2.2 | 3.2 |
Fair Value | $548.50 | $430.20 |
Investments_Investments_Classi
Investments (Investments Classified by Contractual Maturity Date) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Due in one year or less, Amortized Cost | $482.40 | ' |
Due after one year through five years, Amortized Cost | 2,283.40 | ' |
Due after five years through ten years, Amortized Cost | 2,214.60 | ' |
Due after ten years, Amortized Cost | 653.4 | ' |
Gross fixed maturities, Amortized Cost | 5,633.80 | ' |
Mortgage-backed and asset-backed securities, Amortized Cost | 1,373.10 | ' |
Total fixed maturities, Amortized Cost | 7,006.90 | 6,815.20 |
Due in one year or less, Fair Value | 486.3 | ' |
Due after one year through five years, Fair Value | 2,378.50 | ' |
Due after five years through ten years, Fair Value | 2,286.70 | ' |
Due after ten years, Fair Value | 681 | ' |
Gross fixed maturities, Fair Value | 5,832.50 | ' |
Mortgage-backed and asset-backed securities, Fair Value | 1,395 | ' |
Fixed maturities, Fair Value | $7,227.50 | $6,970.60 |
Investments_Schedule_of_Unreal
Investments (Schedule of Unrealized Loss on Investments) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | $15 | $70.50 |
12 months or less, Fair Value | 1,000.80 | 2,221.50 |
Greater than 12 months, Gross Unrealized Losses | 33.9 | 24.2 |
Greater than 12 months, Fair Value | 876.1 | 227.3 |
Total, Gross Unrealized Losses | 48.9 | 94.7 |
Total, Fair Value | 1,876.90 | 2,448.80 |
Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 8 | 64.7 |
12 months or less, Fair Value | 844.3 | 2,102.40 |
Greater than 12 months, Gross Unrealized Losses | 30.3 | 21.9 |
Greater than 12 months, Fair Value | 844.2 | 203.7 |
Total, Gross Unrealized Losses | 38.3 | 86.6 |
Total, Fair Value | 1,688.50 | 2,306.10 |
Below Investment Grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 5.7 | 3 |
12 months or less, Fair Value | 118.7 | 73.9 |
Greater than 12 months, Gross Unrealized Losses | 2.7 | 1.9 |
Greater than 12 months, Fair Value | 28.5 | 22.9 |
Total, Gross Unrealized Losses | 8.4 | 4.9 |
Total, Fair Value | 147.2 | 96.8 |
Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 13.7 | 67.7 |
12 months or less, Fair Value | 963 | 2,176.30 |
Greater than 12 months, Gross Unrealized Losses | 33 | 23.8 |
Greater than 12 months, Fair Value | 872.7 | 226.6 |
Total, Gross Unrealized Losses | 46.7 | 91.5 |
Total, Fair Value | 1,835.70 | 2,402.90 |
US Treasury and Government [Member] | Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 0.1 | 12.3 |
12 months or less, Fair Value | 28.5 | 247.9 |
Greater than 12 months, Gross Unrealized Losses | 6.2 | 1.9 |
Greater than 12 months, Fair Value | 151.5 | 18.8 |
Total, Gross Unrealized Losses | 6.3 | 14.2 |
Total, Fair Value | 180 | 266.7 |
Foreign Government Debt Securities [Member] | Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 0.5 | 1.5 |
12 months or less, Fair Value | 34.5 | 129 |
Greater than 12 months, Gross Unrealized Losses | 0.5 | 0.1 |
Greater than 12 months, Fair Value | 74.5 | 17.3 |
Total, Gross Unrealized Losses | 1 | 1.6 |
Total, Fair Value | 109 | 146.3 |
Municipal [Member] | Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 0.6 | 14.8 |
12 months or less, Fair Value | 95.7 | 345.3 |
Greater than 12 months, Gross Unrealized Losses | 5.7 | 4.3 |
Greater than 12 months, Fair Value | 149.9 | 39.9 |
Total, Gross Unrealized Losses | 6.3 | 19.1 |
Total, Fair Value | 245.6 | 385.2 |
Municipal [Member] | Below Investment Grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 3 | ' |
12 months or less, Fair Value | 2 | ' |
Total, Gross Unrealized Losses | 3 | ' |
Total, Fair Value | 2 | ' |
Corporate Debt Securities [Member] | Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 5.4 | 21.4 |
12 months or less, Fair Value | 463.2 | 872.7 |
Greater than 12 months, Gross Unrealized Losses | 10.7 | 11.6 |
Greater than 12 months, Fair Value | 258.3 | 87.7 |
Total, Gross Unrealized Losses | 16.1 | 33 |
Total, Fair Value | 721.5 | 960.4 |
Corporate Debt Securities [Member] | Below Investment Grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 2.7 | 2.9 |
12 months or less, Fair Value | 116.7 | 71.9 |
Greater than 12 months, Gross Unrealized Losses | 2.7 | 1.6 |
Greater than 12 months, Fair Value | 28.5 | 21.4 |
Total, Gross Unrealized Losses | 5.4 | 4.5 |
Total, Fair Value | 145.2 | 93.3 |
Residential Mortgage Backed Securities [Member] | Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 0.9 | 10.3 |
12 months or less, Fair Value | 97.2 | 321.1 |
Greater than 12 months, Gross Unrealized Losses | 5.2 | 3.4 |
Greater than 12 months, Fair Value | 132.5 | 29.5 |
Total, Gross Unrealized Losses | 6.1 | 13.7 |
Total, Fair Value | 229.7 | 350.6 |
Residential Mortgage Backed Securities [Member] | Below Investment Grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | ' | 0.1 |
12 months or less, Fair Value | ' | 2 |
Greater than 12 months, Gross Unrealized Losses | ' | 0.3 |
Greater than 12 months, Fair Value | ' | 1.5 |
Total, Gross Unrealized Losses | ' | 0.4 |
Total, Fair Value | ' | 3.5 |
Commercial Mortgage Backed Securities [Member] | Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 0.4 | 4.2 |
12 months or less, Fair Value | 89 | 155.4 |
Greater than 12 months, Gross Unrealized Losses | 1.9 | 0.6 |
Greater than 12 months, Fair Value | 63.4 | 10.2 |
Total, Gross Unrealized Losses | 2.3 | 4.8 |
Total, Fair Value | 152.4 | 165.6 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | Investment grade | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 0.1 | 0.2 |
12 months or less, Fair Value | 36.2 | 31 |
Greater than 12 months, Gross Unrealized Losses | 0.1 | ' |
Greater than 12 months, Fair Value | 14.1 | 0.3 |
Total, Gross Unrealized Losses | 0.2 | 0.2 |
Total, Fair Value | 50.3 | 31.3 |
Equity Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 months or less, Gross Unrealized Losses | 1.3 | 2.8 |
12 months or less, Fair Value | 37.8 | 45.2 |
Greater than 12 months, Gross Unrealized Losses | 0.9 | 0.4 |
Greater than 12 months, Fair Value | 3.4 | 0.7 |
Total, Gross Unrealized Losses | 2.2 | 3.2 |
Total, Fair Value | $41.20 | $45.90 |
Investments_Schedule_of_Realiz
Investments (Schedule of Realized Gain (Loss)) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Debt Securities [Member] | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Proceeds from Sales | $39.70 | $83.30 | $247.80 | $369 |
Gross Gains | 1.1 | 1 | 4.4 | 5.6 |
Gross Losses | ' | 0.9 | 2.3 | 1.9 |
Equity Securities | ' | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' | ' |
Proceeds from Sales | 13.5 | 10.8 | 85.9 | 89.7 |
Gross Gains | 2.4 | 1.5 | 26.5 | 18.5 |
Gross Losses | ' | ' | $0.80 | $0.30 |
Investments_Rollforward_of_Cum
Investments (Rollforward of Cumulative Amounts Related to Credit Loss Portion of OTTI Losses) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Investments [Abstract] | ' | ' | ' | ' |
Credit losses at beginning of period | $4.30 | $7.30 | $7.80 | $8.60 |
Credit losses for which an OTTI was not previously recognized | ' | 0.1 | ' | 0.4 |
Additional credit losses on securities for which an OTTI was previously recognized | ' | ' | ' | 0.2 |
Reductions for securities sold, matured or called | ' | -0.1 | -3.1 | -1.9 |
Reductions for securities reclassified as intended to sell | ' | ' | -0.4 | ' |
Credit losses at end of period | $4.30 | $7.30 | $4.30 | $7.30 |
Fair_Value_Narrative_Detail
Fair Value (Narrative) (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value [Abstract] | ' | ' |
Transfer between Level 1 and Level 2 | $0 | $0 |
Fair_Value_Fair_Value_of_Finan
Fair Value (Fair Value of Financial Instruments) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $509.60 | $486.20 | $602.20 | $564.80 |
Fixed maturities | 7,227.50 | 6,970.60 | ' | ' |
Equity securities | 548.5 | 430.2 | ' | ' |
Other investments | 247.6 | 192.5 | ' | ' |
Debt | 903.4 | 903.9 | ' | ' |
Carrying Value [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 509.6 | 486.2 | ' | ' |
Fixed maturities | 7,227.50 | 6,970.60 | ' | ' |
Equity securities | 548.5 | 430.2 | ' | ' |
Other investments | 222.6 | 173.1 | ' | ' |
Total financial assets | 8,508.20 | 8,060.10 | ' | ' |
Debt | 903.4 | 903.9 | ' | ' |
Fair Value [Member] | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 509.6 | 486.2 | ' | ' |
Fixed maturities | 7,227.50 | 6,970.60 | ' | ' |
Equity securities | 548.5 | 430.2 | ' | ' |
Other investments | 225.2 | 173.7 | ' | ' |
Total financial assets | 8,510.80 | 8,060.70 | ' | ' |
Debt | $1,020.50 | $961.70 | ' | ' |
Fair_Value_Assets_and_Liabilit
Fair Value (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | $7,227.50 | $6,970.60 |
Equity securities | 548.5 | 430.2 |
Other investments | 247.6 | 192.5 |
Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 129.6 | 153.2 |
Total investment assets at fair value | 7,896.30 | 7,544.70 |
Fair Value, Measurements, Recurring | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total investment assets at fair value | 741.5 | 595.1 |
Fair Value, Measurements, Recurring | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 126 | 149.6 |
Total investment assets at fair value | 7,087.10 | 6,845.40 |
Fair Value, Measurements, Recurring | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 3.6 | 3.6 |
Total investment assets at fair value | 67.7 | 104.2 |
Fair Value, Measurements, Recurring | Fixed Maturities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 7,227.50 | 6,970.60 |
Fair Value, Measurements, Recurring | Fixed Maturities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 203.5 | 212.8 |
Fair Value, Measurements, Recurring | Fixed Maturities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 6,961.10 | 6,695.80 |
Fair Value, Measurements, Recurring | Fixed Maturities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 62.9 | 62 |
Fair Value, Measurements, Recurring | Fixed Maturities | U.S. Treasury And Government Agencies | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 407.6 | 406.6 |
Fair Value, Measurements, Recurring | Fixed Maturities | U.S. Treasury And Government Agencies | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 160.4 | 167.2 |
Fair Value, Measurements, Recurring | Fixed Maturities | U.S. Treasury And Government Agencies | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 247.2 | 239.4 |
Fair Value, Measurements, Recurring | Fixed Maturities | Foreign Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 340.9 | 305 |
Fair Value, Measurements, Recurring | Fixed Maturities | Foreign Government Debt Securities [Member] | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 43.1 | 45.6 |
Fair Value, Measurements, Recurring | Fixed Maturities | Foreign Government Debt Securities [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 297.8 | 259.4 |
Fair Value, Measurements, Recurring | Fixed Maturities | Municipal [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,119.50 | 1,126.30 |
Fair Value, Measurements, Recurring | Fixed Maturities | Municipal [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,093.50 | 1,100.70 |
Fair Value, Measurements, Recurring | Fixed Maturities | Municipal [Member] | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 26 | 25.6 |
Fair Value, Measurements, Recurring | Fixed Maturities | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 3,964.50 | 3,824.20 |
Fair Value, Measurements, Recurring | Fixed Maturities | Corporate Debt Securities [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 3,949.40 | 3,811.20 |
Fair Value, Measurements, Recurring | Fixed Maturities | Corporate Debt Securities [Member] | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 15.1 | 13 |
Fair Value, Measurements, Recurring | Fixed Maturities | Residential Mortgage Backed Securities U S Agency Backed | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 639.1 | 573.2 |
Fair Value, Measurements, Recurring | Fixed Maturities | Residential Mortgage Backed Securities U S Agency Backed | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 639.1 | 573.2 |
Fair Value, Measurements, Recurring | Fixed Maturities | Residential Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 111.3 | 155.6 |
Fair Value, Measurements, Recurring | Fixed Maturities | Residential Mortgage Backed Securities [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 111.3 | 155.1 |
Fair Value, Measurements, Recurring | Fixed Maturities | Residential Mortgage Backed Securities [Member] | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | ' | 0.5 |
Fair Value, Measurements, Recurring | Fixed Maturities | Commercial Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 447.9 | 411.6 |
Fair Value, Measurements, Recurring | Fixed Maturities | Commercial Mortgage Backed Securities [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 426.1 | 388.7 |
Fair Value, Measurements, Recurring | Fixed Maturities | Commercial Mortgage Backed Securities [Member] | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 21.8 | 22.9 |
Fair Value, Measurements, Recurring | Fixed Maturities | Asset-backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 196.7 | 168.1 |
Fair Value, Measurements, Recurring | Fixed Maturities | Asset-backed Securities [Member] | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 196.7 | 168.1 |
Fair Value, Measurements, Recurring | Equity Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 539.2 | 420.9 |
Fair Value, Measurements, Recurring | Equity Securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 538 | 382.3 |
Fair Value, Measurements, Recurring | Equity Securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | $1.20 | $38.60 |
Fair_Value_Estimated_Fair_Valu
Fair Value (Estimated Fair Values of Financial Instruments Not Carried at Fair Value) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities | $548.50 | $430.20 |
Estimate of Fair Value, Fair Value Disclosure | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 509.6 | 486.2 |
Equity securities | 9.3 | 9.3 |
Other investments | 95.6 | 20.5 |
Debt | 1,020.50 | 961.7 |
Estimate of Fair Value, Fair Value Disclosure | Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 509.6 | 486.2 |
Estimate of Fair Value, Fair Value Disclosure | Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities | 9.3 | 9.3 |
Other investments | ' | 2.7 |
Debt | 1,020.50 | 961.7 |
Estimate of Fair Value, Fair Value Disclosure | Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Other investments | $95.60 | $17.80 |
Fair_Value_Fair_Value_on_Recur
Fair Value (Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 |
Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Equity Securities and Other Investments | Equity Securities and Other Investments | Equity Securities and Other Investments | Equity Securities and Other Investments | |||||
Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Residential Mortgage Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Asset-backed Securities [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | $67.30 | $103.90 | $104.20 | $102.70 | $62.50 | $71.60 | $62 | $74.70 | $26.80 | $27.90 | $25.60 | $19.40 | $13.20 | $19.50 | $13 | $26.40 | $0.60 | $0.50 | $0.70 | $22.50 | $23.60 | $22.90 | $26.70 | $1.50 | $32.30 | $42.20 | $28 | $4.80 |
Transfers into Level 3 | 2.2 | ' | 4.4 | 9.9 | 2.2 | ' | 4.4 | 9.9 | ' | ' | 2.2 | 9.7 | 2.2 | ' | 2.2 | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfers out of Level 3 | ' | ' | -40 | -4.6 | ' | ' | -2.6 | -3.7 | ' | ' | -2.6 | ' | ' | ' | ' | -2.2 | ' | ' | ' | ' | ' | ' | ' | -1.5 | ' | -37.4 | -0.9 | ' |
Included in earnings | ' | ' | ' | 0.4 | ' | ' | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Included in other comprehensive income - net appreciation (depreciation) on available-for-sale securities | -0.7 | 2.8 | 0.8 | 5.3 | -0.7 | ' | 0.8 | -2.7 | -0.2 | -0.1 | 0.4 | -0.4 | -0.2 | 0.1 | ' | -0.9 | ' | ' | ' | -0.3 | ' | 0.4 | -1.4 | ' | 2.8 | ' | 8 | ' |
Purchases | ' | ' | 2.5 | ' | ' | ' | 2.5 | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | -1.1 | -1.4 | -4.2 | -8.4 | -1.1 | -1.4 | -4.2 | -8.4 | -0.6 | -0.9 | -2.1 | -1.8 | -0.1 | ' | -0.1 | -4.3 | -0.1 | -0.5 | -0.2 | -0.4 | -0.4 | -1.5 | -2.1 | ' | ' | ' | ' | ' |
Ending Balance | $67.70 | $105.30 | $67.70 | $105.30 | $62.90 | $70.20 | $62.90 | $70.20 | $26 | $26.90 | $26 | $26.90 | $15.10 | $19.60 | $15.10 | $19.60 | $0.50 | ' | $0.50 | $21.80 | $23.20 | $21.80 | $23.20 | ' | $35.10 | $4.80 | $35.10 | $4.80 |
Fair_Value_Summary_Gains_and_L
Fair Value (Summary Gains and Losses due to Changes in Fair Value Recorded in Income) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Fair Value [Abstract] | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings 1 | $0.40 |
Fair_Value_Schedule_of_Additio
Fair Value (Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3) (Detail) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Fixed Maturities | Other securities | Other securities | Equity Securities | Equity Securities | ||||||
Discount For Small Issue Size | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Municipal [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Residential Mortgage Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Market comparables [Member] | Market comparables [Member] | |||||||
Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discounted cash flow [Member] | Discounted cash flow [Member] | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discounted cash flow [Member] | Discount For Small Issue Size | Discounted cash flow [Member] | Discounted cash flow [Member] | Discount For Small Issue Size | Discount For Small Issue Size | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Above Market Coupon | Discount For Credit Stress | Discount For Credit Stress | Discount For Lease Structure | Discount For Lease Structure | Level 3 | Level 3 | Level 3 | Level 3 | |||||||
Level 3 | Level 3 | Level 3 | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Level 3 | Level 3 | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Level 3 | Discounted cash flow [Member] | Level 3 | Level 3 | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | |||||||||||
Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | ||||||||||||||||||||||
Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | |||||||||||||||||||||||||||||||||||
Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value measurement weighted average market multiples | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1.3 |
Fair Value | $67.70 | $67.30 | $104.20 | $105.30 | $103.90 | $102.70 | ' | $26 | $25.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.80 | $12.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | ' | $21.80 | $22.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.60 | $3.60 | $1.10 | $38.50 |
Discount Rate | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | 2.30% | 0.60% | 1.00% | 4.50% | 4.00% | 0.40% | 0.50% | 0.30% | 0.30% | 1.00% | 1.00% | ' | ' | 0.60% | 0.50% | 0.30% | 0.30% | 1.00% | 1.00% | 0.60% | 0.60% | 0.30% | 0.30% | 0.80% | 0.80% | ' | 0.50% | ' | ' | 0.50% | 0.50% | 0.50% | 0.60% | 0.50% | 0.50% | 0.80% | 0.80% | 0.50% | 0.50% | 0.30% | 0.30% | 18.00% | 18.00% | ' | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Plans | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost - benefits earned during the period | $0.40 | $0.40 | $1.10 | $1.30 |
Interest cost | 8.4 | 8 | 25.3 | 23.9 |
Expected return on plan assets | -9.2 | -8.9 | -27.5 | -26.7 |
Recognized net actuarial loss | 2.9 | 3.7 | 8.7 | 11 |
Amortization of prior service cost | ' | ' | 0.1 | ' |
Net periodic pension cost (benefit) | 2.5 | 3.2 | 7.7 | 9.5 |
Postretirement Plans | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost - benefits earned during the period | 0.1 | ' | 0.1 | 0.1 |
Interest cost | 0.2 | 0.2 | 0.6 | 1 |
Recognized net actuarial loss | ' | 0.1 | ' | 0.2 |
Amortization of prior service cost | -0.5 | -0.9 | -1.4 | -2.8 |
Net settlement gain | ' | ' | ' | -1.6 |
Net periodic pension cost (benefit) | ($0.20) | ($0.60) | ($0.70) | ($3.10) |
Other_Comprehensive_Income_Nar
Other Comprehensive Income (Narrative) (Detail) (Defined Benefit Pension and Postretirement Plans:) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Pension and Postretirement Plans: | ' | ' | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Loss Adjustment Expense | 40.00% | 40.00% | 40.00% | 40.00% |
Percentage Of Other Operating Expenses | 60.00% | 60.00% | 60.00% | 60.00% |
Other_Comprehensive_Income_Cha
Other Comprehensive Income (Changes in Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Unrealized gains (losses) arising during period, Pre-Tax | ($64.30) | ($7.10) | $102.20 | ($172.10) |
Amount of realized gains from sales and other, Pre-tax | -4.6 | -3.9 | -31.3 | -27.7 |
Portion of other-than-temporary impairment losses recognized in earnings, Pre-tax | 0.3 | 2.1 | 0.4 | 3.7 |
Net unrealized gains (losses), Pre-tax | -68.6 | -8.9 | 71.3 | -196.1 |
Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost, Pre-tax | 2.5 | 2.9 | 7.7 | 12.1 |
Foreign currency translation recognized during the period, Pre-tax | -9.2 | 8.7 | -4.5 | -6.8 |
Other comprehensive income (loss), Pre-tax | -75.3 | 2.7 | 74.5 | -190.8 |
Unrealized gains (losses) arising during period, Tax Benefit (Expense) | 22.4 | 2.2 | -32.9 | 60.1 |
Amount of realized gains from sales and other, Tax Benefit (Expense) | -2.4 | -2.1 | -3.9 | -4.2 |
Portion of other-than-temporary impairment losses recognized in earnings, Tax Benefit (Expense) | -0.1 | -0.7 | -0.1 | -1.3 |
Net unrealized gains (losses), Tax Benefit (Expense) | 19.9 | -0.6 | -36.9 | 54.6 |
Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost, Tax Benefit (Expense) | -0.9 | -1 | -2.7 | -4.2 |
Foreign currency translation recognized during the period, Tax Benefit (Expense) | 3.3 | -3 | 1.6 | 2.4 |
Other comprehensive income (loss), Tax Benefit (Expense) | 22.3 | -4.6 | -38 | 52.8 |
Unrealized gains (losses) arising during period, Net of Tax | -41.9 | -4.9 | 69.3 | -112 |
Amount of realized gains from sales and other, Net of Tax | -7 | -6 | -35.2 | -31.9 |
Portion of other-than-temporary impairment losses recognized in earnings, Net of Tax | 0.2 | 1.4 | 0.3 | 2.4 |
Total available-for-sale securities and derivative instruments | -48.7 | -9.5 | 34.4 | -141.5 |
Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost, Net of Tax | 1.6 | 1.9 | 5 | 7.9 |
Foreign currency translation recognized during the period, Net of Tax | -5.9 | 5.7 | -2.9 | -4.4 |
Other comprehensive income (loss), Net of Tax | -53 | -1.9 | 36.5 | -138 |
Net of pre-tax, ceded unrealized gains (losses) | ($0.40) | ' | $0.80 | ($0.80) |
Other_Comprehensive_Income_Rec
Other Comprehensive Income (Reclassifications out of Accumulated Other Comprehensive Income) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net realized gains from sales and other | $5.20 | $3.10 | $31.90 | $26.50 |
Total losses and expenses | -1,190.30 | -1,115.70 | -3,527.40 | -3,323.80 |
Net other-than-temporary impairment losses on investments recognized in earnings | -0.3 | -2.1 | -0.4 | -3.7 |
Total before tax | 75.3 | 86.1 | 255.1 | 240.9 |
Tax benefit (expense) | -20.3 | -24.8 | -62.9 | -60.1 |
Income from continuing operations | 55 | 61.3 | 192.2 | 180.8 |
Income Loss From Discontinued Operations Net Of Tax | -0.1 | ' | -0.1 | 0.1 |
Net of tax | 54.9 | 61.3 | 192.1 | 180.9 |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net realized gains from sales and other | 4.6 | 3.9 | 31.3 | 27.7 |
Net other-than-temporary impairment losses on investments recognized in earnings | -0.3 | -2.1 | -0.4 | -3.7 |
Net of tax | 5.1 | 2.7 | 29.8 | 21.6 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Appreciation on Investments and Derivative Instruments: | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total before tax | 4.3 | 1.8 | 30.9 | 24 |
Tax benefit (expense) | 2.4 | 2.8 | 3.9 | 5.5 |
Net of tax | 6.7 | 4.6 | 34.8 | 29.5 |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension and Postretirement Plans: | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total losses and expenses | -2.5 | -2.9 | -7.7 | -12.1 |
Tax benefit (expense) | 0.9 | 1 | 2.7 | 4.2 |
Net of tax | ($1.60) | ($1.90) | ($5) | ($7.90) |
Segment_Information_Narrative_
Segment Information - (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
segment | ||||
Segment Information [Abstract] | ' | ' | ' | ' |
Operating segments | ' | ' | 4 | ' |
Net foreign currency transaction gains | $0.10 | ' | $5.90 | ' |
Net foreign currency transaction losses | ' | $7.50 | ' | $0.20 |
Segment_Information_Financial_
Segment Information (Financial Information with Respect to Business Segments) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating revenues | $1,260.70 | $1,200.80 | $3,751 | $3,541.90 |
Net realized investment gains | 4.9 | 1 | 31.5 | 22.8 |
Net investment income | 67.5 | 65.7 | 201.5 | 200.9 |
Total revenues | 1,265.60 | 1,201.80 | 3,782.50 | 3,564.70 |
Operating income (loss) before interest expense and income taxes | 86.4 | 107.2 | 273.6 | 290.5 |
Interest on debt | -16.3 | -16.6 | -48.9 | -48.7 |
Operating income before income taxes | 70.1 | 90.6 | 224.7 | 241.8 |
Loss on real estate | ' | -4.7 | ' | -4.7 |
Net loss from repayment of debt | -0.1 | ' | -0.1 | -19.1 |
Net benefit (costs) related to acquired businesses | ' | -0.2 | -1.1 | ' |
Net foreign exchange gains (losses) | 0.4 | -0.6 | 0.1 | 0.1 |
Income before income taxes | 75.3 | 86.1 | 255.1 | 240.9 |
Commercial Lines | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating revenues | 561.4 | 530 | 1,670.30 | 1,568.40 |
GAAP underwriting income (loss) | 5.9 | 2.8 | -8.1 | -9.8 |
Net investment income | 37.4 | 35.3 | 111.9 | 107.4 |
Other income (expense) | -0.2 | 0.4 | -0.4 | 0.1 |
Operating income (loss) before interest expense and income taxes | 43.1 | 38.5 | 103.4 | 97.7 |
Personal Lines | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating revenues | 373.9 | 385.1 | 1,116.30 | 1,165.10 |
GAAP underwriting income (loss) | -12.4 | 18 | -6.7 | 27.8 |
Net realized investment gains | 18 | 18.6 | 53.9 | 56.7 |
Other income (expense) | 1.1 | 1.1 | 3.8 | 3.6 |
Operating income (loss) before interest expense and income taxes | 6.7 | 37.7 | 51 | 88.1 |
Chaucer | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating revenues | 323.6 | 283.4 | 958.7 | 800.8 |
GAAP underwriting income (loss) | 25.2 | 20.8 | 86 | 78.5 |
Net investment income | 11 | 10.2 | 32.2 | 31.4 |
Other income (expense) | 3.2 | 1.4 | 8.5 | 0.3 |
Operating income (loss) before interest expense and income taxes | 39.4 | 32.4 | 126.7 | 110.2 |
Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating revenues | 1.8 | 2.3 | 5.7 | 7.6 |
GAAP underwriting income (loss) | -0.7 | -0.2 | -2.1 | -2.3 |
Net investment income | 1.1 | 1.6 | 3.5 | 5.4 |
Other net expenses | -3.2 | -2.8 | -8.9 | -8.6 |
Operating income (loss) before interest expense and income taxes | -2.8 | -1.4 | -7.5 | -5.5 |
Interest on debt | ($16.30) | ($16.60) | ($48.90) | ($48.70) |
Segment_Information_Identifiab
Segment Information (Identifiable Assets by Business Segment) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Discontinued operations | $114.20 | $114.90 |
Identifiable assets | 13,960.20 | 13,378.70 |
U.S. Companies | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Identifiable assets | 9,353.30 | 8,962.60 |
Chaucer | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Identifiable assets | $4,492.70 | $4,301.20 |
Stock_Based_Compensation_Narra
Stock Based Compensation (Narrative) (Detail) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Performance metric for performance based restricted stock units | 100.00% | ' |
Performance metric for performance based restricted stock units minimum potential range | 0.00% | ' |
Performance metric for performance based restricted stock units maximum potential range | 200.00% | ' |
2014 Stock Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares authorized under plan | 6,100,000 | ' |
Number of shares available for grant | 6,154,360 | ' |
ESPP Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares authorized under plan | 2,500,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 23,105 | ' |
SIP Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares authorized under plan | 750,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 11,667 | ' |
Minimum | 2014 Stock Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Reduction in Shares Available for Grant per Share Issued | 1 | ' |
Maximum | 2014 Stock Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Reduction in Shares Available for Grant per Share Issued | 3.8 | ' |
Performance-based restricted stock units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted, Shares | 1,013 | ' |
Performance And Market-Based Restricted Stock Units | Senior management | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Performance metric, minimum | 0.00% | ' |
Performance metric, maximum | 150.00% | ' |
Market-based awards | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted, Shares | 56,625 | 76,175 |
Market-based awards | Payout in excess of 100% [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted, Shares | 1,875 | ' |
Stockbased_Compensation_Compen
Stock-based Compensation (Compensation Cost and Related Tax Benefits) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock-based Compensation [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $3.80 | $3.20 | $11.10 | $8.90 |
Tax benefit | -1.3 | -1.1 | -3.9 | -3.1 |
Stock-based compensation expense, net of taxes | $2.50 | $2.10 | $7.20 | $5.80 |
Stockbased_Compensation_Summar
Stock-based Compensation (Summary of Stock Option Plan Activity) (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-based Compensation [Abstract] | ' | ' |
Outstanding, beginning of period, Shares | 2,049,173 | 2,892,882 |
Granted, Shares | 684,200 | 537,800 |
Exercised, Shares | -278,368 | -965,861 |
Forfeited or cancelled, Shares | -47,553 | -183,250 |
Outstanding, end of period, Shares | 2,407,452 | 2,281,571 |
Outstanding, beginning of period, Weighted Average Exercise Price | $41.18 | $38.28 |
Granted, Weighted Average Exercise Price | $58.03 | $42.53 |
Exercised, Weighted Average Exercise Price | $38.99 | $33.80 |
Forfeited or cancelled, Weighted Average Exercise Price | $43.77 | $41.60 |
Outstanding, end of period, Weighted Average Exercise Price | $46.17 | $40.91 |
Stockbased_Compensation_Summar1
Stock-based Compensation (Summary of Restricted Stock Activity) (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Outstanding, beginning of period, Shares | 525,980 | 750,837 |
Granted, Shares | 94,240 | 139,682 |
Vested, Shares | -225,178 | -265,209 |
Forfeited, Shares | -10,851 | -60,042 |
Outstanding, end of period, Shares | 384,191 | 565,268 |
Outstanding, beginning of period, Weighted Average Grant Date Fair Value | $41.20 | $40.15 |
Granted, Weighted Average Grant Date Fair Value | $58.02 | $43.21 |
Vested, Weighted Average Grant Date Fair Value | $41.64 | $39.59 |
Forfeited, Weighted Average Grant Date Fair Value | $41.82 | $41.25 |
Outstanding, end of period, Weighted Average Grant Date Fair Value | $45.05 | $41.05 |
Performance Shares [Member] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Outstanding, beginning of period, Shares | 184,626 | 132,775 |
Granted, Shares | 60,338 | 82,795 |
Vested, Shares | -22,826 | ' |
Forfeited, Shares | -3,800 | -22,700 |
Outstanding, end of period, Shares | 218,338 | 192,870 |
Outstanding, beginning of period, Weighted Average Grant Date Fair Value | $40.42 | $39.97 |
Granted, Weighted Average Grant Date Fair Value | $55.73 | $41.85 |
Vested, Weighted Average Grant Date Fair Value | $44.78 | ' |
Forfeited, Weighted Average Grant Date Fair Value | $37.90 | $40.83 |
Outstanding, end of period, Weighted Average Grant Date Fair Value | $44.24 | $40.68 |
Earnings_Per_Share_and_Shareho2
Earnings Per Share and Shareholders Equity Transactions (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share and Shareholdersb Equity Transactions [Abstract] | ' | ' | ' |
Antidilutive securities excluded from calculation of earnings per share | 0.7 | 0.7 | 0.7 |
Repurchases common stock, authorized | $600 | $600 | ' |
Repurchases common stock, available for repurchases | 116.6 | 116.6 | ' |
Repurchases common stock, shares | ' | 0.3 | ' |
Repurchases common stock, value | ' | $20.40 | ' |
Earnings_Per_Share_and_Shareho3
Earnings Per Share and Shareholdersb Equity Transactions (Information Regarding Basic and Diluted Earnings Per Share) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Basic shares used in the calculation of earnings per share | 44.1 | 43.8 | 44 | 44.1 |
Diluted shares used in the calculation of earnings per share | 44.9 | 44.6 | 44.9 | 44.9 |
Per share effect of dilutive securities on income from continuing operations | ($0.03) | ($0.03) | ($0.08) | ($0.07) |
Per share effect of dilutive securities on income from net income | ($0.03) | ($0.03) | ($0.09) | ($0.07) |
Employee Stock Option | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Dilutive effect of securities | 0.4 | 0.4 | 0.5 | 0.3 |
Non-Vested Stock Grants | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Dilutive effect of securities | 0.4 | 0.4 | 0.4 | 0.5 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
plaintiff | |
Commitments and Contingencies [Abstract] | ' |
Participant's retirement age | '65 years |
Treasury rate, years | '30 years |
Named plaintiffs | 2 |