Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | THG | |
Entity Registrant Name | HANOVER INSURANCE GROUP, INC. | |
Entity Central Index Key | 944,695 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,474,995 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Premiums | $ 1,226.9 | $ 1,160.9 | $ 3,589.4 | $ 3,457.7 |
Net investment income | 76.6 | 67.8 | 220 | 205.2 |
Net realized investment gains (losses): | ||||
Net realized gains from sales and other | 14.7 | 4.3 | 25.7 | 31 |
Net other–than–temporary impairment losses on investments recognized in earnings | (1.3) | (0.1) | (4.5) | (26) |
Total net realized investment gains | 13.4 | 4.2 | 21.2 | 5 |
Fees and other income | 8.3 | 8.3 | 21.6 | 22.9 |
Total revenues | 1,325.2 | 1,241.2 | 3,852.2 | 3,690.8 |
Losses and expenses | ||||
Losses and loss adjustment expenses | 878 | 692 | 2,369.5 | 2,121.3 |
Amortization of deferred acquisition costs | 275.1 | 257.9 | 806.1 | 771.4 |
Interest expense | 12.1 | 12.5 | 36.3 | 42.8 |
Net loss from repayment of debt | 86.1 | |||
Other operating expenses | 151.1 | 154.7 | 461.4 | 444.1 |
Total losses and expenses | 1,316.3 | 1,117.1 | 3,673.3 | 3,465.7 |
Income before income taxes | 8.9 | 124.1 | 178.9 | 225.1 |
Income tax expense (benefit): | ||||
Current | 7.3 | 8 | 46.1 | 47.9 |
Deferred | (10.7) | 27.8 | (3.1) | 8.9 |
Total income tax (benefit) expense | (3.4) | 35.8 | 43 | 56.8 |
Income from continuing operations | 12.3 | 88.3 | 135.9 | 168.3 |
Net (loss) gain from discontinued operations (net of tax benefit (expense) of $0.8 for the three and nine months ended September 30, 2017 and $(0.1) and $2.1 for the three and nine months ended September 30, 2016, respectively) | (1.2) | 0.1 | (1.2) | 0.3 |
Net income | $ 11.1 | $ 88.4 | $ 134.7 | $ 168.6 |
Basic: | ||||
Income from continuing operations | $ 0.29 | $ 2.07 | $ 3.20 | $ 3.93 |
Net gain from discontinued operations | (0.03) | (0.03) | 0.01 | |
Net income per share | $ 0.26 | $ 2.07 | $ 3.17 | $ 3.94 |
Weighted average shares outstanding | 42.4 | 42.7 | 42.5 | 42.8 |
Diluted: | ||||
Income from continuing operations | $ 0.28 | $ 2.06 | $ 3.17 | $ 3.89 |
Net gain from discontinued operations | (0.02) | (0.03) | ||
Net income per share | $ 0.26 | $ 2.06 | $ 3.14 | $ 3.89 |
Weighted average shares outstanding | 42.9 | 43 | 42.9 | 43.3 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net (loss) gain from discontinued operations, income tax benefit (expense) | $ 0.8 | $ (0.1) | $ 0.8 | $ 2.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 11.1 | $ 88.4 | $ 134.7 | $ 168.6 |
Available-for-sale securities: | ||||
Net appreciation (depreciation) during the period | 1.7 | (3.6) | 40 | 164.2 |
Change in other-than-temporary impairment losses recognized in other comprehensive income | 2 | 1.6 | 2.5 | 7.3 |
Total available-for-sale securities | 3.7 | (2) | 42.5 | 171.5 |
Pension and postretirement benefits: | ||||
Amortization recognized as net periodic benefit and postretirement cost | 2.3 | 1.5 | 7 | 4.8 |
Cumulative foreign currency translation adjustment: | ||||
Amount recognized as cumulative foreign currency translation during the period | 1.1 | (1.9) | 1.7 | (3.2) |
Total other comprehensive income (loss), net of tax | 7.1 | (2.4) | 51.2 | 173.1 |
Comprehensive income | $ 18.2 | $ 86 | $ 185.9 | $ 341.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturities, at fair value (amortized cost of $7,752.4 and $7,235.1) | $ 7,890.5 | $ 7,331.3 |
Equity securities, at fair value (cost of $443.1 and $498.4) | 566.5 | 584.4 |
Other investments | 616.6 | 533.8 |
Total investments | 9,073.6 | 8,449.5 |
Cash and cash equivalents | 227.2 | 282.6 |
Accrued investment income | 64.4 | 61.7 |
Premiums and accounts receivable, net | 1,656.8 | 1,438.1 |
Reinsurance recoverable on paid and unpaid losses and unearned premiums | 2,979.7 | 2,611.8 |
Deferred acquisition costs | 562.5 | 517.5 |
Deferred income taxes | 76.3 | 115.1 |
Goodwill | 185.3 | 184.8 |
Other assets | 486 | 479.8 |
Assets of discontinued operations | 77.5 | 79.5 |
Total assets | 15,389.3 | 14,220.4 |
Liabilities | ||
Loss and loss adjustment expense reserves | 7,635.4 | 6,949.4 |
Unearned premiums | 2,862.9 | 2,561 |
Expenses and taxes payable | 676 | 728 |
Reinsurance premiums payable | 366.9 | 251.9 |
Debt | 786.8 | 786.4 |
Liabilities of discontinued operations | 89.3 | 86.2 |
Total liabilities | 12,417.3 | 11,362.9 |
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 | 1,856.4 | 1,846.7 |
Accumulated other comprehensive income | 114 | 62.8 |
Retained earnings | 1,946.5 | 1,875.6 |
Treasury stock at cost (18.1 million shares) | (945.5) | (928.2) |
Total shareholders’ equity | 2,972 | 2,857.5 |
Total liabilities and shareholders’ equity | $ 15,389.3 | $ 14,220.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 7,752.4 | $ 7,235.1 |
Equity securities, cost | $ 443.1 | $ 498.4 |
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 | 18,100,000 | 18,100,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Net Unrealized Appreciation on Investments [Member] | Defined Benefit Pension and Postretirement Plans [Member] | Cumulative Foreign Currency Translation Adjustment [Member] | Accumulated Other Comprehensive Income (Loss), net of tax [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance at beginning of period at Dec. 31, 2015 | $ 0.6 | $ 1,833.5 | $ 149.9 | $ (78.6) | $ (17.4) | $ 1,803.5 | $ (847.1) | ||
Net income | $ 168.6 | 168.6 | |||||||
Shares purchased at cost | (105.2) | ||||||||
Employee and director stock-based awards and other | 5.4 | ||||||||
Net appreciation on available-for-sale securities | 171.5 | 171.5 | |||||||
Net amount recognized as net periodic benefit cost | 4.8 | ||||||||
Amount recognized as cumulative foreign currency translation during the period | (3.2) | (3.2) | |||||||
Dividends to shareholders | (59.2) | ||||||||
Net shares reissued at cost under employee stock-based compensation plans | 21.1 | ||||||||
Stock-based compensation | (8.5) | (2.5) | |||||||
Balance at end of period at Sep. 30, 2016 | 3,045.7 | 0.6 | 1,838.9 | 321.4 | (73.8) | (20.6) | $ 227 | 1,910.4 | (931.2) |
Balance at beginning of period at Dec. 31, 2016 | 2,857.5 | 0.6 | 1,846.7 | 186 | (102.5) | (20.7) | 1,875.6 | (928.2) | |
Net income | 134.7 | 134.7 | |||||||
Shares purchased at cost | (37.2) | (37.2) | |||||||
Employee and director stock-based awards and other | 9.7 | ||||||||
Net appreciation on available-for-sale securities | 42.5 | 42.5 | |||||||
Net amount recognized as net periodic benefit cost | 7 | ||||||||
Amount recognized as cumulative foreign currency translation during the period | 1.7 | 1.7 | |||||||
Dividends to shareholders | (63.8) | ||||||||
Net shares reissued at cost under employee stock-based compensation plans | 19.9 | ||||||||
Stock-based compensation | (11.5) | ||||||||
Balance at end of period at Sep. 30, 2017 | $ 2,972 | $ 0.6 | $ 1,856.4 | $ 228.5 | $ (95.5) | $ (19) | $ 114 | $ 1,946.5 | $ (945.5) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net income | $ 134.7 | $ 168.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized investment gains | (21.2) | (5.1) |
Net amortization and depreciation | 23 | 24.6 |
Stock-based compensation expense | 11.5 | 8.5 |
Amortization of defined benefit plan costs | 10.5 | 7.5 |
Gain on disposal of U.K. motor business | (1.3) | |
Net loss from repayment of debt | 86.1 | |
Deferred income tax expense | (3.1) | 10.1 |
Change in deferred acquisition costs | (45) | (27.8) |
Change in premiums receivable, net of reinsurance premiums payable | (96.5) | (84.7) |
Change in loss, loss adjustment expense and unearned premium reserves | 917.5 | 512.5 |
Change in reinsurance recoverable | (337.4) | (102.9) |
Change in expenses and taxes payable | (53.9) | (29.3) |
Other, net | (7.9) | (6.8) |
Net cash provided by operating activities | 532.2 | 560 |
Cash Flows From Investing Activities | ||
Proceeds from disposals and maturities of fixed maturities | 819.7 | 1,190.3 |
Proceeds from disposals of equity securities and other investments | 138.2 | 226.1 |
Purchase of fixed maturities | (1,296.9) | (1,443.1) |
Purchase of equity securities and other investments | (139.8) | (292.2) |
Capital expenditures | (10.7) | (12.2) |
Other investing activities | (9.7) | 12.1 |
Net cash used in investing activities | (499.2) | (319) |
Cash Flows From Financing Activities | ||
Proceeds from exercise of employee stock options | 19.2 | 14.8 |
Proceeds from debt borrowings, net | 370.5 | |
Change in cash collateral related to securities lending program | (7.3) | (9.6) |
Dividends paid to shareholders | (63.8) | (59.2) |
Repayment of debt | (461.3) | |
Repurchases of common stock | (37.2) | (105.2) |
Other financing activities | (3) | (11.7) |
Net cash used in financing activities | (92.1) | (261.7) |
Effect of exchange rate changes on cash | 3.7 | (2.2) |
Net change in cash and cash equivalents | (55.4) | (22.9) |
Cash and cash equivalents, beginning of period | 282.6 | 338.8 |
Cash and cash equivalents, end of period | $ 227.2 | $ 315.9 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [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 Limited (“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, 2017 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 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 22, 2017. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Recently Implemented Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2016-09, (Topic 718) Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting Recently Issued Standards In March 2017, the FASB issued ASC Update No. 2017-08, (Subtopic 310-20) Receivables – Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASC Update No. 2017-07, (Topic 715) Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In January 2017, the FASB issued ASC Update No. 2017-04, (Topic 350) Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASC Update No. 2017-01, (Topic 805) Business Combinations – Clarifying the Definition of a Business In November 2016, the FASB issued ASC Update No. 2016-18 (Topic 230) Statement of Cash Flows – Restricted Cash (a consensus of the FASB Emerging Issues Task Force) In October 2016, the FASB issued ASC Update No. 2016-16, (Topic 740) Income Taxes – Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASC Update No. 2016-15, (Topic 230) Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASC Update No. 2016-13, (Topic 326) Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASC Update No. 2016-02, (Topic 842) Leases In January 2016, the FASB issued ASC Update No. 2016-01, (Subtopic 825-10) Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASC Update No. 2014-09, (Topic 606) Revenue from Contracts with Customers Revenue from Contracts with Customers |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 3. Income Taxes Income tax expense for the nine months ended September 30, 2017 and 2016 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, 2017, the tax provision was comprised of a $59.5 million U.S. federal income tax expense and a $16.5 million foreign income tax benefit. For the nine months ended September 30, 2016, the tax provision was comprised of a $28.9 million U.S. federal income tax expense and a $27.9 million foreign income tax expense. Most of the Company’s non–U.S. income is subject to U.S. federal income tax, although a portion 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 $10.4 million and $18.7 million of non-U.S. income for the nine months ended September 30, 2017 and 2016, respectively. However, in the future, if such earnings were distributed to the Company, taxes of $51.0 million would be payable on the accumulated 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. The Company or its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions, as well as foreign jurisdictions. The Company and its subsidiaries are subject to U.S. federal and state income tax examinations by tax authorities for years after 2013 and foreign examinations for years after 2012. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [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: September 30, 2017 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 $ 434.3 $ 4.1 $ 4.3 $ 434.1 $ — Foreign government 241.7 4.5 1.2 245.0 — Municipal 1,061.1 36.9 4.8 1,093.2 — Corporate 4,330.2 125.5 29.2 4,426.5 12.4 Residential mortgage-backed 1,032.8 9.7 9.4 1,033.1 — Commercial mortgage-backed 592.0 8.8 2.6 598.2 — Asset-backed 60.3 0.2 0.1 60.4 — Total fixed maturities $ 7,752.4 $ 189.7 $ 51.6 $ 7,890.5 $ 12.4 Equity securities $ 443.1 $ 123.7 $ 0.3 $ 566.5 $ — December 31, 2016 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 $ 342.5 $ 3.7 $ 5.1 $ 341.1 — Foreign government 235.8 5.4 0.5 240.7 — Municipal 1,065.8 38.8 9.2 1,095.4 — Corporate 3,989.8 113.0 49.0 4,053.8 15.8 Residential mortgage-backed 978.2 9.6 13.6 974.2 0.4 Commercial mortgage-backed 550.6 7.8 4.1 554.3 — Asset-backed 72.4 0.2 0.8 71.8 — Total fixed maturities $ 7,235.1 $ 178.5 $ 82.3 $ 7,331.3 16.2 Equity securities $ 498.4 $ 86.7 $ 0.7 $ 584.4 — Other-than-temporary impairments (“OTTI”) unrealized losses in the tables above represent OTTI recognized in accumulated other comprehensive income (“AOCI”). 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 $18.2 million and $21.4 million as of September 30, 2017 and December 31, 2016, respectively. 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 $596 million of fixed maturities and $5 million of cash and cash equivalents as of September 30, 2017. 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, 2016. 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. September 30, 2017 Amortized Fair (in millions) Cost Value Due in one year or less $ 401.2 $ 404.8 Due after one year through five years 2,763.4 2,841.9 Due after five years through ten years 2,515.0 2,548.9 Due after ten years 387.7 403.2 6,067.3 6,198.8 Mortgage-backed and asset-backed securities 1,685.1 1,691.7 Total fixed maturities $ 7,752.4 $ 7,890.5 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, 2017 and December 31, 2016 including the length of time the securities have been in an unrealized loss position: September 30, 2017 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 $ 3.1 $ 213.1 $ 1.2 $ 40.8 $ 4.3 $ 253.9 Foreign governments 1.1 112.0 0.1 7.3 1.2 119.3 Municipal 2.3 187.3 2.5 57.9 4.8 245.2 Corporate 10.1 792.5 10.2 229.9 20.3 1,022.4 Residential mortgage-backed 6.0 440.5 3.4 95.1 9.4 535.6 Commercial mortgage-backed 1.3 118.5 1.3 50.1 2.6 168.6 Asset-backed 0.1 32.5 — — 0.1 32.5 Total investment grade 24.0 1,896.4 18.7 481.1 42.7 2,377.5 Below investment grade: Corporate 1.3 33.7 7.6 52.4 8.9 86.1 Total fixed maturities 25.3 1,930.1 26.3 533.5 51.6 2,463.6 Equity securities 0.3 11.0 — — 0.3 11.0 Total $ 25.6 $ 1,941.1 $ 26.3 $ 533.5 $ 51.9 $ 2,474.6 December 31, 2016 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 $ 5.1 $ 165.9 $ — $ — $ 5.1 $ 165.9 Foreign governments 0.5 55.0 — 1.8 0.5 56.8 Municipal 7.2 268.4 2.0 29.3 9.2 297.7 Corporate 30.6 1,081.0 5.0 64.2 35.6 1,145.2 Residential mortgage-backed 12.1 570.0 1.5 29.0 13.6 599.0 Commercial mortgage-backed 4.1 187.5 — 6.3 4.1 193.8 Asset-backed 0.6 29.1 0.2 3.5 0.8 32.6 Total investment grade 60.2 2,356.9 8.7 134.1 68.9 2,491.0 Below investment grade: Corporate 1.2 45.9 12.2 81.8 13.4 127.7 Residential mortgage-backed — 0.1 — — — 0.1 Total below investment grade 1.2 46.0 12.2 81.8 13.4 127.8 Total fixed maturities 61.4 2,402.9 20.9 215.9 82.3 2,618.8 Equity securities 0.7 16.3 — — 0.7 16.3 Total $ 62.1 $ 2,419.2 $ 20.9 $ 215.9 $ 83.0 $ 2,635.1 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, 2017 2016 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 92.6 $ 3.0 $ 0.5 $ 94.2 $ 3.6 $ 0.3 Equity securities $ 68.2 $ 12.0 $ 0.2 $ 20.7 $ - $ 1.2 Nine Months Ended September 30, 2017 2016 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 322.7 $ 8.2 $ 1.9 $ 402.1 $ 9.5 $ 4.5 Equity securities $ 114.5 $ 17.9 $ 0.3 $ 194.1 $ 26.4 $ 2.9 D. Other-than-temporary impairments For the three months ended September 30, 2017, total OTTI was $1.6 million, consisting primarily of fixed maturities. Of this amount, $1.3 million was recognized in earnings and the remaining $0.3 million was recorded as unrealized losses in AOCI. For the nine months ended September 30, 2017, total OTTI was $5.0 million, consisting of equity securities, fixed maturities and other invested assets. Of this amount, $4.5 million was recognized in earnings and the remaining $0.5 million was recorded as unrealized losses in AOCI. For the three months ended September 30, 2016, $0.1 million of OTTI on fixed maturities was transferred from unrealized losses in AOCI and recognized in earnings, with no impact on total OTTI. For the nine months ended September 30, 2016, total OTTI was $19.2 million, consisting primarily of fixed maturities and, to a lesser extent, equity securities. Of this amount, $26.0 million was recognized in earnings, including $6.8 million which was transferred from unrealized losses in AOCI. The methodology and significant inputs used to measure the amount of credit losses on fixed maturities in 2017 and 2016 were as follows: Corporate bonds – the Company utilized a financial model that derives expected cash flows based on probability-of-default factors by credit rating, loss-given-default factors based on security type and position in the capital structure and asset duration. 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) 2017 2016 2017 2016 Credit losses at beginning of period $ 9.6 $ 11.7 $ 10.0 $ 18.0 Credit losses on securities for which an OTTI was not previously recognized 0.2 — 0.4 5.2 Additional credit losses on securities for which an OTTI was previously recognized — 0.1 0.1 2.2 Reductions for securities sold, matured or called (1.9 ) (2.3 ) (2.6 ) (3.9 ) Reductions for securities reclassified as intend to sell (0.4 ) — (0.4 ) (12.0 ) Credit losses at end of period $ 7.5 $ 9.5 $ 7.5 $ 9.5 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [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 techniques 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 techniques, 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 for similar securities and pricing models that incorporate observable inputs. Level 3 consists of common or preferred stock of private companies for which observable inputs are not available. 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 and reports them as Level 3. Additionally, the Company may obtain non-binding broker quotes which are reported as Level 3. Other Investments Other investments primarily include mortgage participations, cost basis limited partnerships, and overseas trust funds required in connection with the Company’s Lloyd’s business. Fair values of mortgage participations are estimated by discounting the contractual cash flows using the rates at which similar loans would be made to borrowers with comparable 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 adjusted for recent financial information and are excluded from the fair value hierarchy. Fair values of overseas trust funds are provided by the investment manager based on quoted prices for similar instruments in active markets and are reported as Level 2. Debt The fair value of debt is estimated based on quoted market prices for identical or similar issuances. 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: September 30, 2017 December 31, 2016 Carrying Fair Carrying Fair (in millions) Value Value Value Value Financial Assets Cash and cash equivalents $ 227.2 $ 227.2 $ 282.6 $ 282.6 Fixed maturities 7,890.5 7,890.5 7,331.3 7,331.3 Equity securities 566.5 566.5 584.4 584.4 Other investments 577.1 586.0 497.8 497.6 Total financial assets $ 9,261.3 $ 9,270.2 $ 8,696.1 $ 8,695.9 Financial Liabilities Debt $ 786.8 $ 873.3 $ 786.4 $ 841.9 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 approaches and 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 a process for which securities with changes in prices that exceed a defined threshold are 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 2017 and 2016, the Company did not adjust any prices received from 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. September 30, 2017 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 434.1 $ 198.4 $ 235.7 $ — Foreign government 245.0 44.7 200.3 — Municipal 1,093.2 — 1,065.1 28.1 Corporate 4,426.5 — 4,425.6 0.9 Residential mortgage-backed, U.S. agency backed 1,000.2 — 1,000.2 — Residential mortgage-backed, non-agency 32.9 — 32.9 — Commercial mortgage-backed 598.2 — 583.8 14.4 Asset-backed 60.4 — 60.4 — Total fixed maturities 7,890.5 243.1 7,604.0 43.4 Equity securities 558.1 557.0 — 1.1 Other investments 118.5 — 114.4 4.1 Total investment assets at fair value $ 8,567.1 $ 800.1 $ 7,718.4 $ 48.6 December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 341.1 $ 209.5 $ 131.6 $ — Foreign government 240.7 47.3 193.4 — Municipal 1,095.4 — 1,064.4 31.0 Corporate 4,053.8 — 4,049.6 4.2 Residential mortgage-backed, U.S. agency backed 924.4 — 924.4 — Residential mortgage-backed, non-agency 49.8 — 49.8 — Commercial mortgage-backed 554.3 — 539.3 15.0 Asset-backed 71.8 — 71.8 — Total fixed maturities 7,331.3 256.8 7,024.3 50.2 Equity securities 574.6 573.1 — 1.5 Other investments 106.3 — 102.2 4.1 Total investment assets at fair value $ 8,012.2 $ 829.9 $ 7,126.5 $ 55.8 The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value: September 30, 2017 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 227.2 $ 227.2 $ — $ — Equity securities 8.4 — 8.4 — Other investments 334.4 — — 334.4 Liabilities: Debt $ 873.3 $ — $ 873.3 $ — December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 282.6 $ 282.6 $ — $ — Equity securities 9.8 — 9.8 — Other investments 297.2 — — 297.2 Liabilities: Debt $ 841.9 $ — $ 841.9 $ — Investments measured at fair value using net asset value based on an ownership interest in partners’ capital have not been included in the table above. The fair values of these investments were $133.1 million and $94.1 million as of September 30, 2017 and December 31, 2016, respectively, which are approximately 1% of total investment assets. 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 Commercial mortgage- backed Asset- backed Total Equity and Other Total Assets Three Months Ended September 30, 2017 Balance July 1, 2017 $ 30.1 $ 1.0 $ 14.6 $ — $ 45.7 $ 5.6 $ 51.3 Transfers out of Level 3 (1.9 ) — — — (1.9 ) (0.4 ) (2.3 ) Total gains: Included in other comprehensive income-net appreciation on available-for-sale securities 0.2 — — — 0.2 — 0.2 Sales (0.3 ) (0.1 ) (0.2 ) — (0.6 ) — (0.6 ) Balance September 30, 2017 $ 28.1 $ 0.9 $ 14.4 $ — $ 43.4 $ 5.2 $ 48.6 Three Months Ended September 30, 2016 Balance July 1, 2016 $ 34.4 $ 4.4 $ 16.7 $ 0.4 $ 55.9 $ 4.9 $ 60.8 Transfers out of Level 3 (1.2 ) — — — (1.2 ) — (1.2 ) Total (losses) gains: Included in other comprehensive income-net (depreciation) appreciation on available-for-sale securities (0.1 ) (0.1 ) (0.1 ) — (0.3 ) 0.1 (0.2 ) Sales (0.8 ) — (0.4 ) (0.4 ) (1.6 ) — (1.6 ) Balance September 30, 2016 $ 32.3 $ 4.3 $ 16.2 $ — $ 52.8 $ 5.0 $ 57.8 Fixed Maturities (in millions) Municipal Corporate Commercial mortgage- backed Asset- backed Total Equity and Other Total Assets Nine Months Ended September 30, 2017 Balance January 1, 2017 $ 31.0 $ 4.2 $ 15.0 $ — $ 50.2 $ 5.6 $ 55.8 Transfers out of Level 3 (1.9 ) — — — (1.9 ) (0.4 ) (2.3 ) Total gains (losses): Included in total net realized investment gains — 0.3 — — 0.3 — 0.3 Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities 0.6 (0.2 ) 0.1 — 0.5 — 0.5 Sales (1.6 ) (3.4 ) (0.7 ) — (5.7 ) — (5.7 ) Balance September 30, 2017 $ 28.1 $ 0.9 $ 14.4 $ — $ 43.4 $ 5.2 $ 48.6 Nine Months Ended September 30, 2016 Balance January 1, 2016 $ 34.4 $ 3.7 $ 17.0 $ 0.5 $ 55.6 $ 4.9 $ 60.5 Transfers out of Level 3 (1.2 ) — — — (1.2 ) — (1.2 ) Total gains (losses): Included in total net realized investment gains 0.1 (0.2 ) — — (0.1 ) — (0.1 ) Included in other comprehensive income-net appreciation on available-for-sale securities 1.5 0.6 0.6 — 2.7 0.1 2.8 Purchases and sales: Purchases — 0.3 — — 0.3 — 0.3 Sales (2.5 ) (0.1 ) (1.4 ) (0.5 ) (4.5 ) — (4.5 ) Balance September 30, 2016 $ 32.3 $ 4.3 $ 16.2 $ — $ 52.8 $ 5.0 $ 57.8 During the three and nine months ended September 30, 2017 and 2016, fixed maturities transferred from Level 3 to Level 2 primarily as a result of assessing the significance of unobservable inputs on the fair value measurement. During the three and nine months ended September 30, 2017, equity securities transferred from Level 3 to Level 1 upon the availability of pricing from the third party pricing service. There were no transfers between Level 1 and Level 2 in 2017 or 2016. 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 of $0.6 million at December 31, 2016, 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. September 30, 2017 December 31, 2016 Valuation Significant Fair Range Fair Range (in millions) Technique Unobservable Inputs Value (Wtd Average) Value (Wtd Average) Fixed maturities: Municipal Discounted Discount for: $ 28.1 $ 31.0 cash flow Small issue size Credit stress Above-market coupon 0.7 -6.8% (3.4%) 0.9 - 1.5% (1.2%) 0.3 - 0.5% (0.4%) 0.7 - 6.8% (3.3%) 0.9 - 1.5% (1.2%) 0.3 - 0.5% (0.4%) Corporate Discounted Discount for: 0.9 4.0 cash flow Small issue size Credit stress Above-market coupon 2.5% (2.5%) — 0.3% (0.3%) 2.0 - 2.5% (2.1%) 1.0% (1.0%) 0.3 - 0.8% (0.6%) Commercial mortgage-backed Discounted Discount for: 14.4 15.0 cash flow Small issue size Above-market coupon Lease structure 1.9 - 3.1% (2.6%) 0.5% (0.5%) 0.3% (0.3%) 1.9 - 3.1% (2.6%) 0.5% (0.5%) 0.3% (0.3%) Equity securities Market Net tangible asset 1.1 1.1 comparables market multiples 1.0X (1.0X) 1.0X (1.0X) Other Discounted Discount rate 4.1 18.0% (18.0%) 4.1 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 Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [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, 2017 2016 2017 2016 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ 0.2 $ — $ — Interest cost 6.4 7.4 0.1 0.2 Expected return on plan assets (6.8 ) (7.4 ) — — Recognized net actuarial loss 3.8 2.8 — — Amortization of prior service cost — — (0.3 ) (0.3 ) Net periodic pension cost (benefit) $ 3.4 $ 3.0 $ (0.2 ) $ (0.1 ) Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ 0.6 $ — $ — Interest cost 19.3 22.2 0.3 0.4 Expected return on plan assets (20.4 ) (22.4 ) — — Recognized net actuarial loss 11.4 8.4 0.1 0.1 Amortization of prior service cost — — (1.0 ) (1.0 ) Net periodic pension cost (benefit) $ 10.3 $ 8.8 $ (0.6 ) $ (0.5 ) |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income | 7. Other Comprehensive Income The following tables provide changes in other comprehensive income. Three Months Ended September 30, 2017 2016 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: Unrealized gains arising during period $ 23.1 $ (8.0 ) $ 15.1 $ 8.1 $ (2.9 ) $ 5.2 Amount of realized gains from sales and other (15.2 ) 3.0 (12.2 ) (3.4 ) (3.9 ) (7.3 ) Portion of other-than-temporary impairment losses recognized in earnings 1.3 (0.5 ) 0.8 0.1 - 0.1 Net unrealized gains (losses) 9.2 (5.5 ) 3.7 4.8 (6.8 ) (2.0 ) Pension and postretirement benefits: Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost 3.5 (1.2 ) 2.3 2.5 (1.0 ) 1.5 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period 1.7 (0.6 ) 1.1 (2.9 ) 1.0 (1.9 ) Other comprehensive income (loss) $ 14.4 $ (7.3 ) $ 7.1 $ 4.4 $ (6.8 ) $ (2.4 ) Nine Months Ended September 30, 2017 2016 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: Unrealized gains arising during period $ 102.1 $ (35.8 ) $ 66.3 $ 290.1 $ (101.5 ) $ 188.6 Amount of realized gains from sales and other (26.5 ) 0.6 (25.9 ) (30.7 ) (3.3 ) (34.0 ) Portion of other-than-temporary impairment losses recognized in earnings 3.3 (1.2 ) 2.1 26.0 (9.1 ) 16.9 Net unrealized gains 78.9 (36.4 ) 42.5 285.4 (113.9 ) 171.5 Pension and postretirement benefits: Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost 10.5 (3.5 ) 7.0 7.5 (2.7 ) 4.8 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period 2.6 (0.9 ) 1.7 (4.9 ) 1.7 (3.2 ) Other comprehensive income $ 92.0 $ (40.8 ) $ 51.2 $ 288.0 $ (114.9 ) $ 173.1 Reclassifications out of accumulated other comprehensive income were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2017 2016 2017 2016 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 $ 15.2 $ 3.4 $ 26.5 $ 30.7 Net realized gains from sales and other Net other-than-temporary impairment (1.3 ) (0.1 ) (3.3 ) (26.0 ) losses on investments recognized in earnings 13.9 3.3 23.2 4.7 Total before tax (2.5 ) 3.9 0.6 12.4 Tax (expense) benefit 11.4 7.2 23.8 17.1 Net of tax Amortization of defined benefit Loss adjustment expenses and other pension and postretirement plans (3.5 ) (2.5 ) (10.5 ) (7.5 ) operating expenses 1.2 1.0 3.5 2.7 Tax benefit (2.3 ) (1.5 ) (7.0 ) (4.8 ) Net of tax Total reclassifications for the period $ 9.1 $ 5.7 $ 16.8 $ 12.3 Benefit to income, 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 the three and nine months ended September 30, 2017 and 2016. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [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 inland marine, specialty program business, management and professional liability, surety and specialty property. Personal Lines includes personal automobile, homeowners and other personal coverages. Chaucer includes marine, aviation and political, casualty (which includes international liability, specialist coverages, and syndicate participations), energy, property, and assumed reinsurance treaty business (“treaty”). Prior to January 1, 2017, treaty was reflected in the casualty, property, and marine, aviation and political lines. 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 discontinued voluntary pools business. 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, excluding 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. 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, 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) 2017 2016 2017 2016 Operating revenues: Commercial Lines $ 648.2 $ 628.4 $ 1,913.2 $ 1,857.2 Personal Lines 421.0 391.5 1,234.3 1,154.8 Chaucer 238.6 215.0 674.5 667.9 Other 4.0 2.1 9.0 5.9 Total 1,311.8 1,237.0 3,831.0 3,685.8 Net realized investment gains 13.4 4.2 21.2 5.0 Total revenues $ 1,325.2 $ 1,241.2 $ 3,852.2 $ 3,690.8 Operating income (loss) before interest expense and income taxes: Commercial Lines: Underwriting (loss) income $ (13.7 ) $ 3.6 $ (14.1 ) $ 12.4 Net investment income 42.1 39.0 123.7 117.5 Other expense (0.2 ) (0.1 ) (0.8 ) (0.7 ) Commercial Lines operating income 28.2 42.5 108.8 129.2 Personal Lines: Underwriting income 40.8 23.3 61.9 81.2 Net investment income 17.8 17.1 52.3 51.6 Other income 1.1 1.3 3.3 3.4 Personal Lines operating income 59.7 41.7 117.5 136.2 Chaucer: Underwriting (loss) income (87.7 ) 37.8 (55.9 ) 53.8 Net investment income 13.4 10.3 37.1 32.3 Other income (expense) 0.5 0.3 (0.4 ) 1.5 Chaucer operating (loss) income (73.8 ) 48.4 (19.2 ) 87.6 Other: Underwriting loss (1.0 ) (0.8 ) (2.8 ) (2.1 ) Net investment income 3.3 1.4 6.9 3.8 Other expense (3.3 ) (3.4 ) (10.1 ) (9.8 ) Other operating loss (1.0 ) (2.8 ) (6.0 ) (8.1 ) Operating income before interest expense and income taxes 13.1 129.8 201.1 344.9 Interest on debt (12.1 ) (12.5 ) (36.3 ) (42.8 ) Operating income before income taxes 1.0 117.3 164.8 302.1 Non-operating income items: Net realized investment gains 13.4 4.2 21.2 5.0 Net loss from repayment of debt — — — (86.1 ) Other non-operating items (5.5 ) 2.6 (7.1 ) 4.1 Income before income taxes $ 8.9 $ 124.1 $ 178.9 $ 225.1 The Company recognized approximately $7 million in net foreign currency transaction losses in the Statements of Income during the three months ended September 30, 2016. The Company recognized approximately $4 million and $28 million in net foreign currency transaction losses in the Statements of Income during the nine months ended September 30, 2017 and 2016, respectively. The following table provides identifiable assets for the Company’s business segments and discontinued operations: September 30, 2017 December 31, 2016 (in millions) Identifiable Assets U.S. Companies $ 10,737.7 $ 10,225.4 Chaucer 4,574.1 3,915.5 Discontinued operations 77.5 79.5 Total $ 15,389.3 $ 14,220.4 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. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 9. Stock-based Compensation As of September 30, 2017, there were 4,267,859 shares, 2,397,260 shares and 689,062 shares available for grant under The Hanover Insurance Group 2014 Long-Term Incentive Plan, The Hanover Insurance Group 2014 Employee Stock Purchase Plan and the Chaucer Share Incentive Plan, respectively. Compensation cost for the Company’s stock-based awards and the related tax benefits were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Stock-based compensation expense $ 4.2 $ 3.0 $ 11.5 $ 8.5 Tax benefit (1.5 ) (1.1 ) (4.0 ) (3.0 ) Stock-based compensation expense, net of taxes $ 2.7 $ 1.9 $ 7.5 $ 5.5 Stock Options Information on the Company’s stock option activity for the nine months ended September 30, 2017 and 2016 is summarized below. Nine Months Ended September 30, 2017 2016 (in whole shares and dollars) Shares (1) Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of period 1,396,152 $ 68.63 1,619,948 $ 56.57 Granted 460,610 90.85 524,940 82.74 Exercised (327,205 ) 57.29 (564,389 ) 48.80 Forfeited or cancelled (28,042 ) 79.40 (207,203 ) 68.23 Outstanding, end of period 1,501,515 77.72 1,373,296 68.01 (1) Included in outstanding shares at the end of the period were 298,899 shares that are not expected to vest due to the announcement of the pending resignation of the Company’s CEO. Restricted Stock Units The following tables summarize activity information about employee restricted stock units: Nine Months Ended September 30, 2017 2016 (in whole shares and dollars) Shares (2) Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Time-based restricted stock units: Outstanding, beginning of period 269,063 $ 73.91 301,897 $ 54.54 Granted 128,850 90.53 143,107 83.43 Vested (70,590 ) 59.29 (136,398 ) 42.49 Forfeited (26,615 ) 84.59 (27,411 ) 68.07 Outstanding, end of period 300,708 83.52 281,195 73.77 Performance-based and market-based restricted stock units: Outstanding, beginning of period 115,057 $ 78.82 196,142 $ 47.89 Granted 60,101 79.48 118,736 73.14 Vested (17,642 ) 58.16 (144,141 ) 41.11 Forfeited (2,180 ) 95.36 (63,740 ) 64.13 Outstanding, end of period 155,336 81.19 106,997 75.38 (2) Included in outstanding performance-based and market-based restricted stock units at the end of the period were 52,750 stock units that are not expected to vest due to the announcement of the pending resignation of the Company’s CEO. In the first nine months of 2017 and 2016, the Company granted market-based awards totaling 56,571 and 79,153, 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 pre-selected group of property and casualty 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 in 2017 and 2016 are 5,881 shares and 30,453 shares, respectively, related to market-based awards that achieved a payout in excess of 100%. These awards vested in the first nine months of 2017 and 2016, respectively. 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. There were no awards vested in 2017 at a level greater than 100%. Included in the amounts granted above in 2016 for the performance-based restricted stock units are 1,949 shares related to awards that a performance metric in excess of 100% was achieved. These awards vested in the first nine months of 2016. |
Earnings Per Share and Sharehol
Earnings Per Share and Shareholders' Equity Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [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) 2017 2016 2017 2016 Basic shares used in the calculation of earnings per share 42.4 42.7 42.5 42.8 Dilutive effect of securities: Employee stock options 0.3 0.2 0.2 0.3 Non-vested stock grants 0.2 0.1 0.2 0.2 Diluted shares used in the calculation of earnings per share 42.9 43.0 42.9 43.3 Per share effect of dilutive securities on income from continuing operations $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.04 ) Per share effect of dilutive securities on net income $ — $ (0.01 ) $ (0.03 ) $ (0.05 ) Diluted earnings per share for the three months ended September 30, 2017 and 2016 exclude 0.5 million and 0.6 million, respectively, of common shares issuable under the Company’s stock compensation plans because their effect would be antidilutive. Diluted earnings per share for the nine months ended September 30, 2017 and 2016 exclude 0.5 million of common shares issuable under the Company’s stock compensation plans because their effect would be antidilutive. The Company’s Board of Directors has authorized aggregate repurchases of the Company’s common stock of up to $900 million. Under the repurchase authorizations, the Company may repurchase, from time to time, common shares in amounts, at prices and at such times as the Company deems appropriate, subject to market conditions and other considerations. 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 2017, the Company purchased approximately 0.4 million shares of the Company’s common stock at a cost of $37.2 million. |
Liabilities For Outstanding Cla
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses | 11. Liabilities for Outstanding Claims, Losses and Loss Adjustment Expenses Reserve Rollforward and Prior Year Development The Company regularly updates its reserve estimates as new information becomes available and further events occur which may impact the resolution of unsettled claims. Reserve adjustments are reflected in results of operations as adjustments to losses and LAE. Often these adjustments are recognized in periods subsequent to the period in which the underlying policy was written and loss event occurred. These types of subsequent adjustments are described as “prior years’ loss reserves”. Such development can be either favorable or unfavorable to the Company’s financial results and may vary by line of business. In this section, all amounts presented include catastrophe losses and LAE, unless otherwise indicated. The table below provides a reconciliation of the gross beginning and ending reserve for unpaid losses and loss adjustment expenses. Nine Months Ended September 30, (in millions) 2017 2016 Gross loss and LAE reserves, beginning of period $ 6,949.4 $ 6,574.4 Reinsurance recoverable on unpaid losses 2,274.8 2,280.8 Net loss and LAE reserves, beginning of period 4,674.6 4,293.6 Net incurred losses and LAE in respect of losses occurring in: Current year 2,414.1 2,145.1 Prior years (44.6 ) (23.8 ) Total incurred losses and LAE 2,369.5 2,121.3 Net payments of losses and LAE in respect of losses occurring in: Current year 851.2 775.1 Prior years 1,131.5 1,088.3 Total payments 1,982.7 1,863.4 Effect of foreign exchange rate changes 40.3 (52.6 ) Net reserve for losses and LAE, end of period 5,101.7 4,498.9 Reinsurance recoverable on unpaid losses 2,533.7 2,303.4 Gross reserve for losses and LAE, end of period $ 7,635.4 $ 6,802.3 As a result of continuing trends in the Company’s business, reserves including catastrophes have been re-estimated for all prior accident years and were decreased by $44.6 million in 2017 in comparison to $23.8 million in 2016. 2017 For the nine months ended September 30, 2017, net favorable loss and LAE development was $44.6 million, primarily as a result of net favorable development of $44.3 million for Chaucer. Chaucer’s favorable development during the nine months ended September 30, 2017 was primarily the result of lower loss estimates in the energy line of $23.0 million, primarily in the 2011 through 2016 accident years, in the political line of $10.8 million, primarily in the 2014 through 2016 accident years, and to a lesser extent in the treaty business. 2016 For the nine months ended September 30, 2016, net favorable loss and LAE development was $23.8 million, primarily as a result of net favorable development of $89.9 million for Chaucer, partially offset by unfavorable development of $61.8 million for Commercial Lines. Chaucer’s favorable development during the nine months ended September 30, 2016 was primarily the result of lower than expected losses in the treaty business of $28.4 million, primarily in the 2014 through 2015 accident years, in the casualty line of $17.6 million, primarily in the 2014 and prior accident years, in the energy line of $16.8 million, primarily in the 2014 through 2015 accident years, in the political line of $15.8 million, primarily in the 2014 through 2015 accident years, and in the property line of $10.1 million, primarily in the 2013 through 2015 accident years. Partially offsetting Chaucer’s favorable development was the unfavorable impact of foreign exchange rate movements on prior years’ loss reserves. The net unfavorable Commercial Lines development primarily resulted from higher than expected losses in other commercial lines of $37.3 million, which includes the AIX program business. This was primarily driven by AIX programs and business classes which have since been terminated or substantially revised in the 2013 and prior accident years and by general liability coverages in the 2013 through 2014 accident years. The Company also experienced higher than expected losses within the commercial multiple peril line of $30.1 million in the 2012 through 2014 accident years. Partially offsetting the unfavorable development was lower than expected losses within the workers’ compensation line of $14.7 million, primarily related to the 2013 through 2015 accident years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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 The plaintiff filed an Amended Complaint adding two new named plaintiffs and additional claims on December 11, 2009. Two of the three new claims set forth in the Amended Complaint were dismissed by the District Court, which action was upheld in November 2015 by the U.S. Court of Appeals, Sixth Circuit. The District Court, however, did allow to stand the portion of the Amended Complaint which set forth claims against the Company for breach of fiduciary duty and failure to meet notice requirements arising under the Employee Retirement Income Security Act of 1974 (“ERISA”) from the various interest crediting and lump sum distribution matters of which plaintiffs complain, but only as to plaintiffs’ “whipsaw” claim that remained in the case. 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. The Company filed a summary judgment motion that was based on the statute of limitations and seeks to dismiss the subclass of plaintiffs who received lump sum distributions prior to March 13, 2002. This summary judgment motion has been stayed pending additional discovery, which is ongoing. 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 statute of limitations applicable to the sub-class consisting of all persons who received lump sum distributions between March 1, 1997 and March 12, 2002 has not yet been determined, and the extent of potential liability, if any, will depend on this 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 and the workers’ compensation line of business. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. 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, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and fair value of available-for-sale fixed maturities and the cost and fair value of equity securities were as follows: September 30, 2017 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 $ 434.3 $ 4.1 $ 4.3 $ 434.1 $ — Foreign government 241.7 4.5 1.2 245.0 — Municipal 1,061.1 36.9 4.8 1,093.2 — Corporate 4,330.2 125.5 29.2 4,426.5 12.4 Residential mortgage-backed 1,032.8 9.7 9.4 1,033.1 — Commercial mortgage-backed 592.0 8.8 2.6 598.2 — Asset-backed 60.3 0.2 0.1 60.4 — Total fixed maturities $ 7,752.4 $ 189.7 $ 51.6 $ 7,890.5 $ 12.4 Equity securities $ 443.1 $ 123.7 $ 0.3 $ 566.5 $ — December 31, 2016 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 $ 342.5 $ 3.7 $ 5.1 $ 341.1 — Foreign government 235.8 5.4 0.5 240.7 — Municipal 1,065.8 38.8 9.2 1,095.4 — Corporate 3,989.8 113.0 49.0 4,053.8 15.8 Residential mortgage-backed 978.2 9.6 13.6 974.2 0.4 Commercial mortgage-backed 550.6 7.8 4.1 554.3 — Asset-backed 72.4 0.2 0.8 71.8 — Total fixed maturities $ 7,235.1 $ 178.5 $ 82.3 $ 7,331.3 16.2 Equity securities $ 498.4 $ 86.7 $ 0.7 $ 584.4 — |
Investments Classified by Contractual Maturity Date | 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. September 30, 2017 Amortized Fair (in millions) Cost Value Due in one year or less $ 401.2 $ 404.8 Due after one year through five years 2,763.4 2,841.9 Due after five years through ten years 2,515.0 2,548.9 Due after ten years 387.7 403.2 6,067.3 6,198.8 Mortgage-backed and asset-backed securities 1,685.1 1,691.7 Total fixed maturities $ 7,752.4 $ 7,890.5 |
Schedule of Unrealized Loss on Investments | The following tables provide information about the Company’s fixed maturities and equity securities that were in an unrealized loss position at September 30, 2017 and December 31, 2016 including the length of time the securities have been in an unrealized loss position: September 30, 2017 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 $ 3.1 $ 213.1 $ 1.2 $ 40.8 $ 4.3 $ 253.9 Foreign governments 1.1 112.0 0.1 7.3 1.2 119.3 Municipal 2.3 187.3 2.5 57.9 4.8 245.2 Corporate 10.1 792.5 10.2 229.9 20.3 1,022.4 Residential mortgage-backed 6.0 440.5 3.4 95.1 9.4 535.6 Commercial mortgage-backed 1.3 118.5 1.3 50.1 2.6 168.6 Asset-backed 0.1 32.5 — — 0.1 32.5 Total investment grade 24.0 1,896.4 18.7 481.1 42.7 2,377.5 Below investment grade: Corporate 1.3 33.7 7.6 52.4 8.9 86.1 Total fixed maturities 25.3 1,930.1 26.3 533.5 51.6 2,463.6 Equity securities 0.3 11.0 — — 0.3 11.0 Total $ 25.6 $ 1,941.1 $ 26.3 $ 533.5 $ 51.9 $ 2,474.6 December 31, 2016 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 $ 5.1 $ 165.9 $ — $ — $ 5.1 $ 165.9 Foreign governments 0.5 55.0 — 1.8 0.5 56.8 Municipal 7.2 268.4 2.0 29.3 9.2 297.7 Corporate 30.6 1,081.0 5.0 64.2 35.6 1,145.2 Residential mortgage-backed 12.1 570.0 1.5 29.0 13.6 599.0 Commercial mortgage-backed 4.1 187.5 — 6.3 4.1 193.8 Asset-backed 0.6 29.1 0.2 3.5 0.8 32.6 Total investment grade 60.2 2,356.9 8.7 134.1 68.9 2,491.0 Below investment grade: Corporate 1.2 45.9 12.2 81.8 13.4 127.7 Residential mortgage-backed — 0.1 — — — 0.1 Total below investment grade 1.2 46.0 12.2 81.8 13.4 127.8 Total fixed maturities 61.4 2,402.9 20.9 215.9 82.3 2,618.8 Equity securities 0.7 16.3 — — 0.7 16.3 Total $ 62.1 $ 2,419.2 $ 20.9 $ 215.9 $ 83.0 $ 2,635.1 |
Schedule of Realized Gain (Loss) | 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, 2017 2016 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 92.6 $ 3.0 $ 0.5 $ 94.2 $ 3.6 $ 0.3 Equity securities $ 68.2 $ 12.0 $ 0.2 $ 20.7 $ - $ 1.2 Nine Months Ended September 30, 2017 2016 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 322.7 $ 8.2 $ 1.9 $ 402.1 $ 9.5 $ 4.5 Equity securities $ 114.5 $ 17.9 $ 0.3 $ 194.1 $ 26.4 $ 2.9 |
Rollforward of Cumulative Amounts Related to Credit Loss Portion of OTTI Losses | 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) 2017 2016 2017 2016 Credit losses at beginning of period $ 9.6 $ 11.7 $ 10.0 $ 18.0 Credit losses on securities for which an OTTI was not previously recognized 0.2 — 0.4 5.2 Additional credit losses on securities for which an OTTI was previously recognized — 0.1 0.1 2.2 Reductions for securities sold, matured or called (1.9 ) (2.3 ) (2.6 ) (3.9 ) Reductions for securities reclassified as intend to sell (0.4 ) — (0.4 ) (12.0 ) Credit losses at end of period $ 7.5 $ 9.5 $ 7.5 $ 9.5 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The estimated fair value of the financial instruments were as follows: September 30, 2017 December 31, 2016 Carrying Fair Carrying Fair (in millions) Value Value Value Value Financial Assets Cash and cash equivalents $ 227.2 $ 227.2 $ 282.6 $ 282.6 Fixed maturities 7,890.5 7,890.5 7,331.3 7,331.3 Equity securities 566.5 566.5 584.4 584.4 Other investments 577.1 586.0 497.8 497.6 Total financial assets $ 9,261.3 $ 9,270.2 $ 8,696.1 $ 8,695.9 Financial Liabilities Debt $ 786.8 $ 873.3 $ 786.4 $ 841.9 |
Fair Value, Assets Measured on Recurring Basis | The following tables provide, for each hierarchy level, the Company’s assets that were measured at fair value on a recurring basis. September 30, 2017 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 434.1 $ 198.4 $ 235.7 $ — Foreign government 245.0 44.7 200.3 — Municipal 1,093.2 — 1,065.1 28.1 Corporate 4,426.5 — 4,425.6 0.9 Residential mortgage-backed, U.S. agency backed 1,000.2 — 1,000.2 — Residential mortgage-backed, non-agency 32.9 — 32.9 — Commercial mortgage-backed 598.2 — 583.8 14.4 Asset-backed 60.4 — 60.4 — Total fixed maturities 7,890.5 243.1 7,604.0 43.4 Equity securities 558.1 557.0 — 1.1 Other investments 118.5 — 114.4 4.1 Total investment assets at fair value $ 8,567.1 $ 800.1 $ 7,718.4 $ 48.6 December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 341.1 $ 209.5 $ 131.6 $ — Foreign government 240.7 47.3 193.4 — Municipal 1,095.4 — 1,064.4 31.0 Corporate 4,053.8 — 4,049.6 4.2 Residential mortgage-backed, U.S. agency backed 924.4 — 924.4 — Residential mortgage-backed, non-agency 49.8 — 49.8 — Commercial mortgage-backed 554.3 — 539.3 15.0 Asset-backed 71.8 — 71.8 — Total fixed maturities 7,331.3 256.8 7,024.3 50.2 Equity securities 574.6 573.1 — 1.5 Other investments 106.3 — 102.2 4.1 Total investment assets at fair value $ 8,012.2 $ 829.9 $ 7,126.5 $ 55.8 |
Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value: September 30, 2017 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 227.2 $ 227.2 $ — $ — Equity securities 8.4 — 8.4 — Other investments 334.4 — — 334.4 Liabilities: Debt $ 873.3 $ — $ 873.3 $ — December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 282.6 $ 282.6 $ — $ — Equity securities 9.8 — 9.8 — Other investments 297.2 — — 297.2 Liabilities: Debt $ 841.9 $ — $ 841.9 $ — |
Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | 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 Commercial mortgage- backed Asset- backed Total Equity and Other Total Assets Three Months Ended September 30, 2017 Balance July 1, 2017 $ 30.1 $ 1.0 $ 14.6 $ — $ 45.7 $ 5.6 $ 51.3 Transfers out of Level 3 (1.9 ) — — — (1.9 ) (0.4 ) (2.3 ) Total gains: Included in other comprehensive income-net appreciation on available-for-sale securities 0.2 — — — 0.2 — 0.2 Sales (0.3 ) (0.1 ) (0.2 ) — (0.6 ) — (0.6 ) Balance September 30, 2017 $ 28.1 $ 0.9 $ 14.4 $ — $ 43.4 $ 5.2 $ 48.6 Three Months Ended September 30, 2016 Balance July 1, 2016 $ 34.4 $ 4.4 $ 16.7 $ 0.4 $ 55.9 $ 4.9 $ 60.8 Transfers out of Level 3 (1.2 ) — — — (1.2 ) — (1.2 ) Total (losses) gains: Included in other comprehensive income-net (depreciation) appreciation on available-for-sale securities (0.1 ) (0.1 ) (0.1 ) — (0.3 ) 0.1 (0.2 ) Sales (0.8 ) — (0.4 ) (0.4 ) (1.6 ) — (1.6 ) Balance September 30, 2016 $ 32.3 $ 4.3 $ 16.2 $ — $ 52.8 $ 5.0 $ 57.8 Fixed Maturities (in millions) Municipal Corporate Commercial mortgage- backed Asset- backed Total Equity and Other Total Assets Nine Months Ended September 30, 2017 Balance January 1, 2017 $ 31.0 $ 4.2 $ 15.0 $ — $ 50.2 $ 5.6 $ 55.8 Transfers out of Level 3 (1.9 ) — — — (1.9 ) (0.4 ) (2.3 ) Total gains (losses): Included in total net realized investment gains — 0.3 — — 0.3 — 0.3 Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities 0.6 (0.2 ) 0.1 — 0.5 — 0.5 Sales (1.6 ) (3.4 ) (0.7 ) — (5.7 ) — (5.7 ) Balance September 30, 2017 $ 28.1 $ 0.9 $ 14.4 $ — $ 43.4 $ 5.2 $ 48.6 Nine Months Ended September 30, 2016 Balance January 1, 2016 $ 34.4 $ 3.7 $ 17.0 $ 0.5 $ 55.6 $ 4.9 $ 60.5 Transfers out of Level 3 (1.2 ) — — — (1.2 ) — (1.2 ) Total gains (losses): Included in total net realized investment gains 0.1 (0.2 ) — — (0.1 ) — (0.1 ) Included in other comprehensive income-net appreciation on available-for-sale securities 1.5 0.6 0.6 — 2.7 0.1 2.8 Purchases and sales: Purchases — 0.3 — — 0.3 — 0.3 Sales (2.5 ) (0.1 ) (1.4 ) (0.5 ) (4.5 ) — (4.5 ) Balance September 30, 2016 $ 32.3 $ 4.3 $ 16.2 $ — $ 52.8 $ 5.0 $ 57.8 |
Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3 | 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 of $0.6 million at December 31, 2016, 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. September 30, 2017 December 31, 2016 Valuation Significant Fair Range Fair Range (in millions) Technique Unobservable Inputs Value (Wtd Average) Value (Wtd Average) Fixed maturities: Municipal Discounted Discount for: $ 28.1 $ 31.0 cash flow Small issue size Credit stress Above-market coupon 0.7 -6.8% (3.4%) 0.9 - 1.5% (1.2%) 0.3 - 0.5% (0.4%) 0.7 - 6.8% (3.3%) 0.9 - 1.5% (1.2%) 0.3 - 0.5% (0.4%) Corporate Discounted Discount for: 0.9 4.0 cash flow Small issue size Credit stress Above-market coupon 2.5% (2.5%) — 0.3% (0.3%) 2.0 - 2.5% (2.1%) 1.0% (1.0%) 0.3 - 0.8% (0.6%) Commercial mortgage-backed Discounted Discount for: 14.4 15.0 cash flow Small issue size Above-market coupon Lease structure 1.9 - 3.1% (2.6%) 0.5% (0.5%) 0.3% (0.3%) 1.9 - 3.1% (2.6%) 0.5% (0.5%) 0.3% (0.3%) Equity securities Market Net tangible asset 1.1 1.1 comparables market multiples 1.0X (1.0X) 1.0X (1.0X) Other Discounted Discount rate 4.1 18.0% (18.0%) 4.1 18.0% (18.0%) cash flow |
Pension and Other Postretirem24
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | 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, 2017 2016 2017 2016 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ 0.2 $ — $ — Interest cost 6.4 7.4 0.1 0.2 Expected return on plan assets (6.8 ) (7.4 ) — — Recognized net actuarial loss 3.8 2.8 — — Amortization of prior service cost — — (0.3 ) (0.3 ) Net periodic pension cost (benefit) $ 3.4 $ 3.0 $ (0.2 ) $ (0.1 ) Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ 0.6 $ — $ — Interest cost 19.3 22.2 0.3 0.4 Expected return on plan assets (20.4 ) (22.4 ) — — Recognized net actuarial loss 11.4 8.4 0.1 0.1 Amortization of prior service cost — — (1.0 ) (1.0 ) Net periodic pension cost (benefit) $ 10.3 $ 8.8 $ (0.6 ) $ (0.5 ) |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Changes in Other Comprehensive Income | The following tables provide changes in other comprehensive income. Three Months Ended September 30, 2017 2016 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: Unrealized gains arising during period $ 23.1 $ (8.0 ) $ 15.1 $ 8.1 $ (2.9 ) $ 5.2 Amount of realized gains from sales and other (15.2 ) 3.0 (12.2 ) (3.4 ) (3.9 ) (7.3 ) Portion of other-than-temporary impairment losses recognized in earnings 1.3 (0.5 ) 0.8 0.1 - 0.1 Net unrealized gains (losses) 9.2 (5.5 ) 3.7 4.8 (6.8 ) (2.0 ) Pension and postretirement benefits: Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost 3.5 (1.2 ) 2.3 2.5 (1.0 ) 1.5 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period 1.7 (0.6 ) 1.1 (2.9 ) 1.0 (1.9 ) Other comprehensive income (loss) $ 14.4 $ (7.3 ) $ 7.1 $ 4.4 $ (6.8 ) $ (2.4 ) Nine Months Ended September 30, 2017 2016 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: Unrealized gains arising during period $ 102.1 $ (35.8 ) $ 66.3 $ 290.1 $ (101.5 ) $ 188.6 Amount of realized gains from sales and other (26.5 ) 0.6 (25.9 ) (30.7 ) (3.3 ) (34.0 ) Portion of other-than-temporary impairment losses recognized in earnings 3.3 (1.2 ) 2.1 26.0 (9.1 ) 16.9 Net unrealized gains 78.9 (36.4 ) 42.5 285.4 (113.9 ) 171.5 Pension and postretirement benefits: Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost 10.5 (3.5 ) 7.0 7.5 (2.7 ) 4.8 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period 2.6 (0.9 ) 1.7 (4.9 ) 1.7 (3.2 ) Other comprehensive income $ 92.0 $ (40.8 ) $ 51.2 $ 288.0 $ (114.9 ) $ 173.1 |
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2017 2016 2017 2016 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 $ 15.2 $ 3.4 $ 26.5 $ 30.7 Net realized gains from sales and other Net other-than-temporary impairment (1.3 ) (0.1 ) (3.3 ) (26.0 ) losses on investments recognized in earnings 13.9 3.3 23.2 4.7 Total before tax (2.5 ) 3.9 0.6 12.4 Tax (expense) benefit 11.4 7.2 23.8 17.1 Net of tax Amortization of defined benefit Loss adjustment expenses and other pension and postretirement plans (3.5 ) (2.5 ) (10.5 ) (7.5 ) operating expenses 1.2 1.0 3.5 2.7 Tax benefit (2.3 ) (1.5 ) (7.0 ) (4.8 ) Net of tax Total reclassifications for the period $ 9.1 $ 5.7 $ 16.8 $ 12.3 Benefit to income, net of tax |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial Information with Respect to Business Segments | 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) 2017 2016 2017 2016 Operating revenues: Commercial Lines $ 648.2 $ 628.4 $ 1,913.2 $ 1,857.2 Personal Lines 421.0 391.5 1,234.3 1,154.8 Chaucer 238.6 215.0 674.5 667.9 Other 4.0 2.1 9.0 5.9 Total 1,311.8 1,237.0 3,831.0 3,685.8 Net realized investment gains 13.4 4.2 21.2 5.0 Total revenues $ 1,325.2 $ 1,241.2 $ 3,852.2 $ 3,690.8 Operating income (loss) before interest expense and income taxes: Commercial Lines: Underwriting (loss) income $ (13.7 ) $ 3.6 $ (14.1 ) $ 12.4 Net investment income 42.1 39.0 123.7 117.5 Other expense (0.2 ) (0.1 ) (0.8 ) (0.7 ) Commercial Lines operating income 28.2 42.5 108.8 129.2 Personal Lines: Underwriting income 40.8 23.3 61.9 81.2 Net investment income 17.8 17.1 52.3 51.6 Other income 1.1 1.3 3.3 3.4 Personal Lines operating income 59.7 41.7 117.5 136.2 Chaucer: Underwriting (loss) income (87.7 ) 37.8 (55.9 ) 53.8 Net investment income 13.4 10.3 37.1 32.3 Other income (expense) 0.5 0.3 (0.4 ) 1.5 Chaucer operating (loss) income (73.8 ) 48.4 (19.2 ) 87.6 Other: Underwriting loss (1.0 ) (0.8 ) (2.8 ) (2.1 ) Net investment income 3.3 1.4 6.9 3.8 Other expense (3.3 ) (3.4 ) (10.1 ) (9.8 ) Other operating loss (1.0 ) (2.8 ) (6.0 ) (8.1 ) Operating income before interest expense and income taxes 13.1 129.8 201.1 344.9 Interest on debt (12.1 ) (12.5 ) (36.3 ) (42.8 ) Operating income before income taxes 1.0 117.3 164.8 302.1 Non-operating income items: Net realized investment gains 13.4 4.2 21.2 5.0 Net loss from repayment of debt — — — (86.1 ) Other non-operating items (5.5 ) 2.6 (7.1 ) 4.1 Income before income taxes $ 8.9 $ 124.1 $ 178.9 $ 225.1 |
Identifiable Assets by Business Segment | The following table provides identifiable assets for the Company’s business segments and discontinued operations: September 30, 2017 December 31, 2016 (in millions) Identifiable Assets U.S. Companies $ 10,737.7 $ 10,225.4 Chaucer 4,574.1 3,915.5 Discontinued operations 77.5 79.5 Total $ 15,389.3 $ 14,220.4 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Cost and Related Tax Benefits | Compensation cost for the Company’s stock-based awards and the related tax benefits were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Stock-based compensation expense $ 4.2 $ 3.0 $ 11.5 $ 8.5 Tax benefit (1.5 ) (1.1 ) (4.0 ) (3.0 ) Stock-based compensation expense, net of taxes $ 2.7 $ 1.9 $ 7.5 $ 5.5 |
Summary of Stock Option Activity | Information on the Company’s stock option activity for the nine months ended September 30, 2017 and 2016 is summarized below. Nine Months Ended September 30, 2017 2016 (in whole shares and dollars) Shares (1) Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of period 1,396,152 $ 68.63 1,619,948 $ 56.57 Granted 460,610 90.85 524,940 82.74 Exercised (327,205 ) 57.29 (564,389 ) 48.80 Forfeited or cancelled (28,042 ) 79.40 (207,203 ) 68.23 Outstanding, end of period 1,501,515 77.72 1,373,296 68.01 (1) Included in outstanding shares at the end of the period were 298,899 shares that are not expected to vest due to the announcement of the pending resignation of the Company’s CEO. |
Summary of Restricted Stock Activity | The following tables summarize activity information about employee restricted stock units: Nine Months Ended September 30, 2017 2016 (in whole shares and dollars) Shares (2) Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Time-based restricted stock units: Outstanding, beginning of period 269,063 $ 73.91 301,897 $ 54.54 Granted 128,850 90.53 143,107 83.43 Vested (70,590 ) 59.29 (136,398 ) 42.49 Forfeited (26,615 ) 84.59 (27,411 ) 68.07 Outstanding, end of period 300,708 83.52 281,195 73.77 Performance-based and market-based restricted stock units: Outstanding, beginning of period 115,057 $ 78.82 196,142 $ 47.89 Granted 60,101 79.48 118,736 73.14 Vested (17,642 ) 58.16 (144,141 ) 41.11 Forfeited (2,180 ) 95.36 (63,740 ) 64.13 Outstanding, end of period 155,336 81.19 106,997 75.38 (2) Included in outstanding performance-based and market-based restricted stock units at the end of the period were 52,750 stock units that are not expected to vest due to the announcement of the pending resignation of the Company’s CEO. |
Earnings Per Share and Shareh28
Earnings Per Share and Shareholders' Equity Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Information Regarding Basic and Diluted Earnings Per Share | 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) 2017 2016 2017 2016 Basic shares used in the calculation of earnings per share 42.4 42.7 42.5 42.8 Dilutive effect of securities: Employee stock options 0.3 0.2 0.2 0.3 Non-vested stock grants 0.2 0.1 0.2 0.2 Diluted shares used in the calculation of earnings per share 42.9 43.0 42.9 43.3 Per share effect of dilutive securities on income from continuing operations $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.04 ) Per share effect of dilutive securities on net income $ — $ (0.01 ) $ (0.03 ) $ (0.05 ) |
Liabilities For Outstanding C29
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Losses and Loss Adjustment Expenses | The table below provides a reconciliation of the gross beginning and ending reserve for unpaid losses and loss adjustment expenses. Nine Months Ended September 30, (in millions) 2017 2016 Gross loss and LAE reserves, beginning of period $ 6,949.4 $ 6,574.4 Reinsurance recoverable on unpaid losses 2,274.8 2,280.8 Net loss and LAE reserves, beginning of period 4,674.6 4,293.6 Net incurred losses and LAE in respect of losses occurring in: Current year 2,414.1 2,145.1 Prior years (44.6 ) (23.8 ) Total incurred losses and LAE 2,369.5 2,121.3 Net payments of losses and LAE in respect of losses occurring in: Current year 851.2 775.1 Prior years 1,131.5 1,088.3 Total payments 1,982.7 1,863.4 Effect of foreign exchange rate changes 40.3 (52.6 ) Net reserve for losses and LAE, end of period 5,101.7 4,498.9 Reinsurance recoverable on unpaid losses 2,533.7 2,303.4 Gross reserve for losses and LAE, end of period $ 7,635.4 $ 6,802.3 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax expense | $ 59.5 | $ 28.9 |
Foreign income tax expense (benefit) | (16.5) | 27.9 |
Foreign income permanently reinvested | 10.4 | $ 18.7 |
Estimated taxes payable on undistributed earnings | $ 51 |
Investments (Schedule of Availa
Investments (Schedule of Available-for-sale Securities Reconciliation) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | $ 1,061.1 | $ 1,065.8 |
Gross Unrealized Gains | 36.9 | 38.8 |
Gross Unrealized Loss | 4.8 | 9.2 |
Fair Value | 1,093.2 | 1,095.4 |
US Treasury and Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 434.3 | 342.5 |
Gross Unrealized Gains | 4.1 | 3.7 |
Gross Unrealized Loss | 4.3 | 5.1 |
Fair Value | 434.1 | 341.1 |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 241.7 | 235.8 |
Gross Unrealized Gains | 4.5 | 5.4 |
Gross Unrealized Loss | 1.2 | 0.5 |
Fair Value | 245 | 240.7 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 4,330.2 | 3,989.8 |
Gross Unrealized Gains | 125.5 | 113 |
Gross Unrealized Loss | 29.2 | 49 |
Fair Value | 4,426.5 | 4,053.8 |
OTTI Unrealized Losses | 12.4 | 15.8 |
Residential Mortgage Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 1,032.8 | 978.2 |
Gross Unrealized Gains | 9.7 | 9.6 |
Gross Unrealized Loss | 9.4 | 13.6 |
Fair Value | 1,033.1 | 974.2 |
OTTI Unrealized Losses | 0.4 | |
Commercial Mortgage Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 592 | 550.6 |
Gross Unrealized Gains | 8.8 | 7.8 |
Gross Unrealized Loss | 2.6 | 4.1 |
Fair Value | 598.2 | 554.3 |
Asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 60.3 | 72.4 |
Gross Unrealized Gains | 0.2 | 0.2 |
Gross Unrealized Loss | 0.1 | 0.8 |
Fair Value | 60.4 | 71.8 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 7,752.4 | 7,235.1 |
Gross Unrealized Gains | 189.7 | 178.5 |
Gross Unrealized Loss | 51.6 | 82.3 |
Fair Value | 7,890.5 | 7,331.3 |
OTTI Unrealized Losses | 12.4 | 16.2 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 443.1 | 498.4 |
Gross Unrealized Gains | 123.7 | 86.7 |
Gross Unrealized Loss | 0.3 | 0.7 |
Fair Value | $ 566.5 | $ 584.4 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |||||
Net unrealized gains on impaired securities | $ 18.2 | $ 18.2 | $ 21.4 | ||
Restricted assets, fixed maturities | 596 | 596 | |||
Restricted assets, cash and cash equivalents | 5 | 5 | |||
Other-than-temporary impairments | 1.6 | $ 0.1 | 5 | $ 19.2 | |
Other-than-temporary impairments recorded as unrealized losses in AOCI | 0.3 | 0.5 | 6.8 | ||
Other-than-temporary impairments recognized in earnings | $ 1.3 | $ 0.1 | $ 4.5 | $ 26 |
Investments (Investments Classi
Investments (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 401.2 | |
Due after one year through five years, Amortized Cost | 2,763.4 | |
Due after five years through ten years, Amortized Cost | 2,515 | |
Due after ten years, Amortized Cost | 387.7 | |
Gross fixed maturities, Amortized Cost | 6,067.3 | |
Mortgage-backed and asset-backed securities, Amortized Cost | 1,685.1 | |
Total fixed maturities, Amortized Cost | 7,752.4 | $ 7,235.1 |
Due in one year or less, Fair Value | 404.8 | |
Due after one year through five years, Fair Value | 2,841.9 | |
Due after five years through ten years, Fair Value | 2,548.9 | |
Due after ten years, Fair Value | 403.2 | |
Gross fixed maturities, Fair Value | 6,198.8 | |
Mortgage-backed and asset-backed securities, Fair Value | 1,691.7 | |
Fixed maturities, Fair Value | $ 7,890.5 | $ 7,331.3 |
Investments (Schedule of Unreal
Investments (Schedule of Unrealized Loss on Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | $ 25.6 | $ 62.1 |
12 months or less, Fair Value | 1,941.1 | 2,419.2 |
Greater than 12 months, Gross Unrealized Losses | 26.3 | 20.9 |
Greater than 12 months, Fair Value | 533.5 | 215.9 |
Total, Gross Unrealized Losses | 51.9 | 83 |
Total, Fair Value | 2,474.6 | 2,635.1 |
Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 24 | 60.2 |
12 months or less, Fair Value | 1,896.4 | 2,356.9 |
Greater than 12 months, Gross Unrealized Losses | 18.7 | 8.7 |
Greater than 12 months, Fair Value | 481.1 | 134.1 |
Total, Gross Unrealized Losses | 42.7 | 68.9 |
Total, Fair Value | 2,377.5 | 2,491 |
Below Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 1.2 | |
12 months or less, Fair Value | 46 | |
Greater than 12 months, Gross Unrealized Losses | 12.2 | |
Greater than 12 months, Fair Value | 81.8 | |
Total, Gross Unrealized Losses | 13.4 | |
Total, Fair Value | 127.8 | |
US Treasury and Government Agencies [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 3.1 | 5.1 |
12 months or less, Fair Value | 213.1 | 165.9 |
Greater than 12 months, Gross Unrealized Losses | 1.2 | |
Greater than 12 months, Fair Value | 40.8 | |
Total, Gross Unrealized Losses | 4.3 | 5.1 |
Total, Fair Value | 253.9 | 165.9 |
Foreign Government [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 1.1 | 0.5 |
12 months or less, Fair Value | 112 | 55 |
Greater than 12 months, Gross Unrealized Losses | 0.1 | |
Greater than 12 months, Fair Value | 7.3 | 1.8 |
Total, Gross Unrealized Losses | 1.2 | 0.5 |
Total, Fair Value | 119.3 | 56.8 |
Municipal [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 2.3 | 7.2 |
12 months or less, Fair Value | 187.3 | 268.4 |
Greater than 12 months, Gross Unrealized Losses | 2.5 | 2 |
Greater than 12 months, Fair Value | 57.9 | 29.3 |
Total, Gross Unrealized Losses | 4.8 | 9.2 |
Total, Fair Value | 245.2 | 297.7 |
Corporate [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 10.1 | 30.6 |
12 months or less, Fair Value | 792.5 | 1,081 |
Greater than 12 months, Gross Unrealized Losses | 10.2 | 5 |
Greater than 12 months, Fair Value | 229.9 | 64.2 |
Total, Gross Unrealized Losses | 20.3 | 35.6 |
Total, Fair Value | 1,022.4 | 1,145.2 |
Corporate [Member] | Below Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 1.3 | 1.2 |
12 months or less, Fair Value | 33.7 | 45.9 |
Greater than 12 months, Gross Unrealized Losses | 7.6 | 12.2 |
Greater than 12 months, Fair Value | 52.4 | 81.8 |
Total, Gross Unrealized Losses | 8.9 | 13.4 |
Total, Fair Value | 86.1 | 127.7 |
Residential Mortgage Backed [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 6 | 12.1 |
12 months or less, Fair Value | 440.5 | 570 |
Greater than 12 months, Gross Unrealized Losses | 3.4 | 1.5 |
Greater than 12 months, Fair Value | 95.1 | 29 |
Total, Gross Unrealized Losses | 9.4 | 13.6 |
Total, Fair Value | 535.6 | 599 |
Residential Mortgage Backed [Member] | Below Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Fair Value | 0.1 | |
Total, Fair Value | 0.1 | |
Commercial Mortgage Backed [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 1.3 | 4.1 |
12 months or less, Fair Value | 118.5 | 187.5 |
Greater than 12 months, Gross Unrealized Losses | 1.3 | |
Greater than 12 months, Fair Value | 50.1 | 6.3 |
Total, Gross Unrealized Losses | 2.6 | 4.1 |
Total, Fair Value | 168.6 | 193.8 |
Asset-backed [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 0.1 | 0.6 |
12 months or less, Fair Value | 32.5 | 29.1 |
Greater than 12 months, Gross Unrealized Losses | 0.2 | |
Greater than 12 months, Fair Value | 3.5 | |
Total, Gross Unrealized Losses | 0.1 | 0.8 |
Total, Fair Value | 32.5 | 32.6 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 25.3 | 61.4 |
12 months or less, Fair Value | 1,930.1 | 2,402.9 |
Greater than 12 months, Gross Unrealized Losses | 26.3 | 20.9 |
Greater than 12 months, Fair Value | 533.5 | 215.9 |
Total, Gross Unrealized Losses | 51.6 | 82.3 |
Total, Fair Value | 2,463.6 | 2,618.8 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 0.3 | 0.7 |
12 months or less, Fair Value | 11 | 16.3 |
Total, Gross Unrealized Losses | 0.3 | 0.7 |
Total, Fair Value | $ 11 | $ 16.3 |
Investments (Schedule of Realiz
Investments (Schedule of Realized Gain (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fixed Maturities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Proceeds from Sales | $ 92.6 | $ 94.2 | $ 322.7 | $ 402.1 |
Gross Gains | 3 | 3.6 | 8.2 | 9.5 |
Gross Losses | 0.5 | 0.3 | 1.9 | 4.5 |
Equity Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Proceeds from Sales | 68.2 | 20.7 | 114.5 | 194.1 |
Gross Gains | 12 | 17.9 | 26.4 | |
Gross Losses | $ 0.2 | $ 1.2 | $ 0.3 | $ 2.9 |
Investments (Rollforward of Cum
Investments (Rollforward of Cumulative Amounts Related to Credit Loss Portion of OTTI Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Credit losses at beginning of period | $ 9.6 | $ 11.7 | $ 10 | $ 18 |
Credit losses on securities for which an OTTI was not previously recognized | 0.2 | 0.4 | 5.2 | |
Additional credit losses on securities for which an OTTI was previously recognized | 0.1 | 0.1 | 2.2 | |
Reductions for securities sold, matured or called | (1.9) | (2.3) | (2.6) | (3.9) |
Reductions for securities reclassified as intend to sell | (0.4) | (0.4) | (12) | |
Credit losses at end of period | $ 7.5 | $ 9.5 | $ 7.5 | $ 9.5 |
Fair Value (Fair Value of Finan
Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 227.2 | $ 282.6 |
Total financial assets | 9,261.3 | 8,696.1 |
Debt | 786.8 | 786.4 |
Carrying Value [Member] | Other Investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of investments | 577.1 | 497.8 |
Carrying Value [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of investments | 7,890.5 | 7,331.3 |
Carrying Value [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of investments | 566.5 | 584.4 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 227.2 | 282.6 |
Total financial assets | 9,270.2 | 8,695.9 |
Debt | 873.3 | 841.9 |
Estimated Fair Value [Member] | Other Investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of investments | 586 | 497.6 |
Estimated Fair Value [Member] | Fixed Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of investments | 7,890.5 | 7,331.3 |
Estimated Fair Value [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of investments | $ 566.5 | $ 584.4 |
Fair Value (Fair Value, Assets
Fair Value (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 7,890.5 | $ 7,331.3 |
Equity securities | 566.5 | 584.4 |
Other investments | 616.6 | 533.8 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 7,890.5 | 7,331.3 |
Equity securities | 558.1 | 574.6 |
Other investments | 118.5 | 106.3 |
Total investment assets at fair value | 8,567.1 | 8,012.2 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 243.1 | 256.8 |
Equity securities | 557 | 573.1 |
Total investment assets at fair value | 800.1 | 829.9 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 7,604 | 7,024.3 |
Other investments | 114.4 | 102.2 |
Total investment assets at fair value | 7,718.4 | 7,126.5 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 43.4 | 50.2 |
Equity securities | 1.1 | 1.5 |
Other investments | 4.1 | 4.1 |
Total investment assets at fair value | 48.6 | 55.8 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury And Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 434.1 | 341.1 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury And Government Agencies [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 198.4 | 209.5 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury And Government Agencies [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 235.7 | 131.6 |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 245 | 240.7 |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 44.7 | 47.3 |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 200.3 | 193.4 |
Fair Value, Measurements, Recurring [Member] | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,093.2 | 1,095.4 |
Fair Value, Measurements, Recurring [Member] | Municipal [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,065.1 | 1,064.4 |
Fair Value, Measurements, Recurring [Member] | Municipal [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 28.1 | 31 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,426.5 | 4,053.8 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,425.6 | 4,049.6 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0.9 | 4.2 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities U S Agency Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,000.2 | 924.4 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities U S Agency Backed [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,000.2 | 924.4 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 32.9 | 49.8 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 32.9 | 49.8 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 598.2 | 554.3 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 583.8 | 539.3 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 14.4 | 15 |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 60.4 | 71.8 |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 60.4 | $ 71.8 |
Fair Value (Estimated Fair Valu
Fair Value (Estimated Fair Values of Financial Instruments Not Carried at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | $ 566.5 | $ 584.4 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 227.2 | 282.6 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 227.2 | 282.6 |
Equity securities | 8.4 | 9.8 |
Other investments | 334.4 | 297.2 |
Debt | 873.3 | 841.9 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 227.2 | 282.6 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 8.4 | 9.8 |
Debt | 873.3 | 841.9 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | $ 334.4 | $ 297.2 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value Measurements [Line Items] | |||||
Investments measured at fair value using net asset value | $ 133,100,000 | $ 133,100,000 | $ 94,100,000 | ||
Investments measured at net asset value based on an ownership interest in partners' | 1.00% | 1.00% | 1.00% | ||
Transfer between Level 1 and Level 2 | $ 0 | $ 0 | $ 0 | $ 0 | |
Level 3 [Member] | |||||
Fair Value Measurements [Line Items] | |||||
Valuations excluded | $ 600,000 |
Fair Value (Fair Value on Recur
Fair Value (Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | $ 51.3 | $ 60.8 | $ 55.8 | $ 60.5 |
Transfers out of Level 3 | (2.3) | (1.2) | (2.3) | (1.2) |
Included in total net realized investment gains | 0.3 | (0.1) | ||
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | 0.2 | (0.2) | 0.5 | 2.8 |
Purchases | 0.3 | |||
Sales | (0.6) | (1.6) | (5.7) | (4.5) |
Ending Balance | 48.6 | 57.8 | 48.6 | 57.8 |
Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 30.1 | 34.4 | 31 | 34.4 |
Transfers out of Level 3 | (1.9) | (1.2) | (1.9) | (1.2) |
Included in total net realized investment gains | 0.1 | |||
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | 0.2 | (0.1) | 0.6 | 1.5 |
Sales | (0.3) | (0.8) | (1.6) | (2.5) |
Ending Balance | 28.1 | 32.3 | 28.1 | 32.3 |
Corporate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 1 | 4.4 | 4.2 | 3.7 |
Included in total net realized investment gains | 0.3 | (0.2) | ||
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | (0.1) | (0.2) | 0.6 | |
Purchases | 0.3 | |||
Sales | (0.1) | (3.4) | (0.1) | |
Ending Balance | 0.9 | 4.3 | 0.9 | 4.3 |
Commercial Mortgage Backed [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 14.6 | 16.7 | 15 | 17 |
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | (0.1) | 0.1 | 0.6 | |
Sales | (0.2) | (0.4) | (0.7) | (1.4) |
Ending Balance | 14.4 | 16.2 | 14.4 | 16.2 |
Asset-backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 0.4 | 0.5 | ||
Sales | (0.4) | (0.5) | ||
Fixed Maturities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 45.7 | 55.9 | 50.2 | 55.6 |
Transfers out of Level 3 | (1.9) | (1.2) | (1.9) | (1.2) |
Included in total net realized investment gains | 0.3 | (0.1) | ||
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | 0.2 | (0.3) | 0.5 | 2.7 |
Purchases | 0.3 | |||
Sales | (0.6) | (1.6) | (5.7) | (4.5) |
Ending Balance | 43.4 | 52.8 | 43.4 | 52.8 |
Equity Securities and Other Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 5.6 | 4.9 | 5.6 | 4.9 |
Transfers out of Level 3 | (0.4) | (0.4) | ||
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | 0.1 | 0.1 | ||
Ending Balance | $ 5.2 | $ 5 | $ 5.2 | $ 5 |
Fair Value (Schedule of Additio
Fair Value (Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value [Line Items] | ||||||
Fair Value | $ 48.6 | $ 55.8 | $ 51.3 | $ 57.8 | $ 60.8 | $ 60.5 |
Municipal [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | 28.1 | 31 | 30.1 | 32.3 | 34.4 | 34.4 |
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 28.1 | $ 31 | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.70% | 0.70% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Discount For Credit Stress [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.90% | 0.90% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.30% | 0.30% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 6.80% | 6.80% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Discount For Credit Stress [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 1.50% | 1.50% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.50% | 0.50% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 3.40% | 3.30% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Credit Stress [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 1.20% | 1.20% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.40% | 0.40% | ||||
Corporate [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 0.9 | $ 4.2 | 1 | 4.3 | 4.4 | 3.7 |
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 0.9 | $ 4 | ||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 2.50% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Discount For Credit Stress [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 1.00% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.30% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 2.00% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.30% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 2.50% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.80% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 2.50% | 2.10% | ||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Credit Stress [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 1.00% | |||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.30% | 0.60% | ||||
Commercial Mortgage Backed [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 14.4 | $ 15 | $ 14.6 | $ 16.2 | $ 16.7 | $ 17 |
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 14.4 | $ 15 | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.50% | 0.50% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Discount For Lease Structure [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.30% | 0.30% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 1.90% | 1.90% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 3.10% | 3.10% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Small Issue Size [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 2.60% | 2.60% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Above Market Coupon [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.50% | 0.50% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount For Lease Structure [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.30% | 0.30% | ||||
Equity Securities [Member] | Market comparables [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 1.1 | $ 1.1 | ||||
Equity Securities [Member] | Market comparables [Member] | Level 3 [Member] | Net Tangible Asset Market Multiples [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair value measurement market multiples | 1 | 1 | ||||
Equity Securities [Member] | Market comparables [Member] | Level 3 [Member] | Weighted Average [Member] | Net Tangible Asset Market Multiples [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair value measurement market multiples | 1 | 1 | ||||
Other securities [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 4.1 | $ 4.1 | ||||
Other securities [Member] | Discounted cash flow [Member] | Level 3 [Member] | Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 18.00% | 18.00% | ||||
Other securities [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 18.00% | 18.00% |
Pension and Other Postretirem43
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost - benefits earned during the period | $ 0.2 | $ 0.6 | ||
Interest cost | $ 6.4 | 7.4 | $ 19.3 | 22.2 |
Expected return on plan assets | (6.8) | (7.4) | (20.4) | (22.4) |
Recognized net actuarial loss | 3.8 | 2.8 | 11.4 | 8.4 |
Net periodic pension cost (benefit) | 3.4 | 3 | 10.3 | 8.8 |
Postretirement Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 0.1 | 0.2 | 0.3 | 0.4 |
Recognized net actuarial loss | 0.1 | 0.1 | ||
Amortization of prior service cost | (0.3) | (0.3) | (1) | (1) |
Net periodic pension cost (benefit) | $ (0.2) | $ (0.1) | $ (0.6) | $ (0.5) |
Other Comprehensive Income (Cha
Other Comprehensive Income (Changes in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||||
Unrealized gains arising during period, Pre -Tax | $ 23.1 | $ 8.1 | $ 102.1 | $ 290.1 |
Amount of realized gains from sales and other, Pre-tax | (15.2) | (3.4) | (26.5) | (30.7) |
Portion of other-than-temporary impairment losses recognized in earnings, Pre-tax | 1.3 | 0.1 | 3.3 | 26 |
Net unrealized gains (losses), Pre-tax | 9.2 | 4.8 | 78.9 | 285.4 |
Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost, Pre-tax | 3.5 | 2.5 | 10.5 | 7.5 |
Foreign currency translation recognized during the period, Pre-tax | 1.7 | (2.9) | 2.6 | (4.9) |
Other comprehensive income (loss), Pre-tax | 14.4 | 4.4 | 92 | 288 |
Unrealized gains arising during period, Tax Benefit (Expense) | (8) | (2.9) | (35.8) | (101.5) |
Amount of realized gains from sales and other, Tax Benefit (Expense) | 3 | (3.9) | 0.6 | (3.3) |
Portion of other-than-temporary impairment losses recognized in earnings, Tax Benefit (Expense) | (0.5) | (1.2) | (9.1) | |
Net unrealized gains (losses), Tax Benefit (Expense) | (5.5) | (6.8) | (36.4) | (113.9) |
Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost, Tax Benefit (Expense) | (1.2) | (1) | (3.5) | (2.7) |
Foreign currency translation recognized during the period, Tax Benefit (Expense) | (0.6) | 1 | (0.9) | 1.7 |
Other comprehensive income (loss), Tax Benefit (Expense) | (7.3) | (6.8) | (40.8) | (114.9) |
Unrealized gains arising during period, Net of Tax | 15.1 | 5.2 | 66.3 | 188.6 |
Amount of realized gains from sales and other, Net of Tax | (12.2) | (7.3) | (25.9) | (34) |
Portion of other-than-temporary impairment losses recognized in earnings, Net of Tax | 0.8 | 0.1 | 2.1 | 16.9 |
Total available-for-sale securities | 3.7 | (2) | 42.5 | 171.5 |
Amortization of net actuarial loss and prior service cost recognized as net periodic benefit cost, Net of Tax | 2.3 | 1.5 | 7 | 4.8 |
Foreign currency translation recognized during the period, Net of Tax | 1.1 | (1.9) | 1.7 | (3.2) |
Total other comprehensive income (loss), net of tax | $ 7.1 | $ (2.4) | $ 51.2 | $ 173.1 |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains from sales and other | $ 14.7 | $ 4.3 | $ 25.7 | $ 31 |
Net other–than–temporary impairment losses on investments recognized in earnings | (1.3) | (0.1) | (4.5) | (26) |
Income before income taxes | 8.9 | 124.1 | 178.9 | 225.1 |
Loss adjustment expenses and other operating expenses | (1,316.3) | (1,117.1) | (3,673.3) | (3,465.7) |
Tax (expense) benefit | 3.4 | (35.8) | (43) | (56.8) |
Net of tax | 11.1 | 88.4 | 134.7 | 168.6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax | 9.1 | 5.7 | 16.8 | 12.3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Unrealized Appreciation on Investments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains from sales and other | 15.2 | 3.4 | 26.5 | 30.7 |
Net other–than–temporary impairment losses on investments recognized in earnings | (1.3) | (0.1) | (3.3) | (26) |
Income before income taxes | 13.9 | 3.3 | 23.2 | 4.7 |
Tax (expense) benefit | (2.5) | 3.9 | 0.6 | 12.4 |
Net of tax | 11.4 | 7.2 | 23.8 | 17.1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension and Postretirement Plans [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss adjustment expenses and other operating expenses | (3.5) | (2.5) | (10.5) | (7.5) |
Tax (expense) benefit | 1.2 | 1 | 3.5 | 2.7 |
Net of tax | $ (2.3) | $ (1.5) | $ (7) | $ (4.8) |
Other Comprehensive Income (Nar
Other Comprehensive Income (Narrative) (Details) - Defined Benefit Pension and Postretirement Plans [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
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% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Operating segments | segment | 4 | ||
Net foreign currency transaction losses | $ | $ 7 | $ 4 | $ 28 |
Segment Information (Financial
Segment Information (Financial Information with Respect to Business Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,311.8 | $ 1,237 | $ 3,831 | $ 3,685.8 |
Net realized investment gains | 13.4 | 4.2 | 21.2 | 5 |
Total revenues | 1,325.2 | 1,241.2 | 3,852.2 | 3,690.8 |
Net investment income | 76.6 | 67.8 | 220 | 205.2 |
Operating income (loss) before interest expense and income taxes | 13.1 | 129.8 | 201.1 | 344.9 |
Interest on debt | (12.1) | (12.5) | (36.3) | (42.8) |
Operating income before income taxes | 1 | 117.3 | 164.8 | 302.1 |
Net loss from repayment of debt | (86.1) | |||
Other non-operating items | (5.5) | 2.6 | (7.1) | 4.1 |
Income before income taxes | 8.9 | 124.1 | 178.9 | 225.1 |
Commercial Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 648.2 | 628.4 | 1,913.2 | 1,857.2 |
Underwriting (loss) income | (13.7) | 3.6 | (14.1) | 12.4 |
Net investment income | 42.1 | 39 | 123.7 | 117.5 |
Other income (expense) | (0.2) | (0.1) | (0.8) | (0.7) |
Operating income (loss) before interest expense and income taxes | 28.2 | 42.5 | 108.8 | 129.2 |
Personal Lines | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 421 | 391.5 | 1,234.3 | 1,154.8 |
Underwriting (loss) income | 40.8 | 23.3 | 61.9 | 81.2 |
Net realized investment gains | 17.8 | 17.1 | 52.3 | 51.6 |
Other income (expense) | 1.1 | 1.3 | 3.3 | 3.4 |
Operating income (loss) before interest expense and income taxes | 59.7 | 41.7 | 117.5 | 136.2 |
Chaucer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 238.6 | 215 | 674.5 | 667.9 |
Underwriting (loss) income | (87.7) | 37.8 | (55.9) | 53.8 |
Net investment income | 13.4 | 10.3 | 37.1 | 32.3 |
Other income (expense) | 0.5 | 0.3 | (0.4) | 1.5 |
Operating income (loss) before interest expense and income taxes | (73.8) | 48.4 | (19.2) | 87.6 |
Other (including eliminations) | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 4 | 2.1 | 9 | 5.9 |
Underwriting (loss) income | (1) | (0.8) | (2.8) | (2.1) |
Net investment income | 3.3 | 1.4 | 6.9 | 3.8 |
Other expense | (3.3) | (3.4) | (10.1) | (9.8) |
Operating income (loss) before interest expense and income taxes | $ (1) | $ (2.8) | $ (6) | $ (8.1) |
Segment Information (Identifiab
Segment Information (Identifiable Assets by Business Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 15,389.3 | $ 14,220.4 |
Discontinued operations | 77.5 | 79.5 |
U.S. Companies | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 10,737.7 | 10,225.4 |
Chaucer [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 4,574.1 | $ 3,915.5 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Market-based awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Shares | 56,571 | 79,153 |
Average period based on relative TSR | 3 years | |
Market-based awards | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance metric achieved | 100.00% | |
Performance And Market-Based Restricted Stock Units | Minimum [Member] | Senior management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance metric, potential range | 0.00% | |
Performance And Market-Based Restricted Stock Units | Maximum [Member] | Senior management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance metric, potential range | 150.00% | |
Market Based Awards That Achieved Payout In Excess Of 1[Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Shares | 5,881 | 30,453 |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Shares | 0 | 1,949 |
Performance metric achieved | 100.00% | |
Performance-based restricted stock units | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance metric, potential range | 0.00% | |
Performance-based restricted stock units | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance metric, potential range | 200.00% | |
2014 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 4,267,859 | |
ESPP Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 2,397,260 | |
SIP Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 689,062 |
Stock-based Compensation (Compe
Stock-based Compensation (Compensation Cost and Related Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Stock-based compensation expense | $ 4.2 | $ 3 | $ 11.5 | $ 8.5 |
Tax benefit | (1.5) | (1.1) | (4) | (3) |
Stock-based compensation expense, net of taxes | $ 2.7 | $ 1.9 | $ 7.5 | $ 5.5 |
Stock-based Compensation (Summa
Stock-based Compensation (Summary of Stock Option Activity) (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning of period, Shares | 1,396,152 | [1] | 1,619,948 |
Granted, Shares | 460,610 | [1] | 524,940 |
Exercised, Shares | (327,205) | [1] | (564,389) |
Forfeited or cancelled, Shares | (28,042) | [1] | (207,203) |
Outstanding, end of period, Shares | 1,501,515 | [1] | 1,373,296 |
Outstanding, beginning of period, Weighted Average Exercise Price | $ 68.63 | $ 56.57 | |
Granted, Weighted Average Exercise Price | 90.85 | 82.74 | |
Exercised, Weighted Average Exercise Price | 57.29 | 48.80 | |
Forfeited or cancelled, Weighted Average Exercise Price | 79.40 | 68.23 | |
Outstanding, end of period, Weighted Average Exercise Price | $ 77.72 | $ 68.01 | |
Chief Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding shares that are not expected to vest | 298,899 | ||
[1] | Included in outstanding shares at the end of the period were 298,899 shares that are not expected to vest due to the announcement of the pending resignation of the Company’s CEO. |
Stock-based Compensation (Sum53
Stock-based Compensation (Summary of Restricted Stock Activity) (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning of period, Shares | 269,063 | [1] | 301,897 |
Granted, Shares | 128,850 | [1] | 143,107 |
Vested, Shares | (70,590) | [1] | (136,398) |
Forfeited, Shares | (26,615) | [1] | (27,411) |
Outstanding, end of period, Shares | 300,708 | [1] | 281,195 |
Outstanding, beginning of period, Weighted Average Grant Date Fair Value | $ 73.91 | $ 54.54 | |
Granted, Weighted Average Grant Date Fair Value | 90.53 | 83.43 | |
Vested, Weighted Average Grant Date Fair Value | 59.29 | 42.49 | |
Forfeited, Weighted Average Grant Date Fair Value | 84.59 | 68.07 | |
Outstanding, end of period, Weighted Average Grant Date Fair Value | $ 83.52 | $ 73.77 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning of period, Shares | 115,057 | [1] | 196,142 |
Granted, Shares | 60,101 | [1] | 118,736 |
Vested, Shares | (17,642) | [1] | (144,141) |
Forfeited, Shares | (2,180) | [1] | (63,740) |
Outstanding, end of period, Shares | 155,336 | [1] | 106,997 |
Outstanding, beginning of period, Weighted Average Grant Date Fair Value | $ 78.82 | $ 47.89 | |
Granted, Weighted Average Grant Date Fair Value | 79.48 | 73.14 | |
Vested, Weighted Average Grant Date Fair Value | 58.16 | 41.11 | |
Forfeited, Weighted Average Grant Date Fair Value | 95.36 | 64.13 | |
Outstanding, end of period, Weighted Average Grant Date Fair Value | $ 81.19 | $ 75.38 | |
Performance Shares [Member] | Chief Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding shares that are not expected to vest | 52,750 | ||
[1] | Included in outstanding performance-based and market-based restricted stock units at the end of the period were 52,750 stock units that are not expected to vest due to the announcement of the pending resignation of the Company’s CEO. |
Earnings Per Share and Shareh54
Earnings Per Share and Shareholders' Equity Transactions (Information Regarding Basic and Diluted Earnings Per Share) (Details) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Basic shares used in the calculation of earnings per share | 42.4 | 42.7 | 42.5 | 42.8 |
Diluted shares used in the calculation of earnings per share | 42.9 | 43 | 42.9 | 43.3 |
Per share effect of dilutive securities on income from continuing operations | $ (0.01) | $ (0.01) | $ (0.03) | $ (0.04) |
Per share effect of dilutive securities on net income | $ (0.01) | $ (0.03) | $ (0.05) | |
Employee Stock Option [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive effect of securities | 0.3 | 0.2 | 0.2 | 0.3 |
Non-Vested Stock Grants [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive effect of securities | 0.2 | 0.1 | 0.2 | 0.2 |
Earnings Per Share and Shareh55
Earnings Per Share and Shareholders' Equity Transactions (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Class Of Stock [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share | 0.5 | 0.6 | 0.5 | 0.5 |
Repurchases common stock, shares | 0.4 | |||
Repurchases common stock, value | $ 37,200,000 | |||
Maximum [Member] | ||||
Class Of Stock [Line Items] | ||||
Repurchases common stock, authorized | $ 900,000,000 | $ 900,000,000 |
Liabilities For Outstanding C56
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses (Schedule of Liability for Unpaid Losses and Loss Adjustment Expenses) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Insurance [Abstract] | ||
Gross loss and LAE reserves, beginning of period | $ 6,949.4 | $ 6,574.4 |
Reinsurance recoverable on unpaid losses, beginning of period | 2,274.8 | 2,280.8 |
Net loss and LAE reserves, beginning of period | 4,674.6 | 4,293.6 |
Net incurred losses and LAE in respect of losses occurring in current year | 2,414.1 | 2,145.1 |
Net incurred losses and LAE in respect of losses occurring in prior years | (44.6) | (23.8) |
Total incurred losses and LAE | 2,369.5 | 2,121.3 |
Net payments of losses and LAE in respect of losses occurring in Current year | 851.2 | 775.1 |
Net payments of losses and LAE in respect of losses occurring in Prior years | 1,131.5 | 1,088.3 |
Total payments | 1,982.7 | 1,863.4 |
Effect of foreign exchange rate changes | 40.3 | (52.6) |
Net reserve for losses and LAE, end of period | 5,101.7 | 4,498.9 |
Reinsurance recoverable on unpaid losses, end of Period | 2,533.7 | 2,303.4 |
Gross reserve for losses and LAE, end of period | $ 7,635.4 | $ 6,802.3 |
Liabilities For Outstanding C57
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | $ (44.6) | $ (23.8) |
Commercial Lines [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 61.8 | |
Other Commercial Lines [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 37.3 | |
Year 2013 to 2015 [Member] | Workers' Compensation Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 14.7 | |
Years 2012 To 2014 [Member] | Commercial Multiple Peril Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 30.1 | |
Chaucer [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 44.3 | 89.9 |
Chaucer [Member] | Year 2011 to 2016 [Member] | Energy Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 23 | |
Chaucer [Member] | Year 2014 to 2016 [Member] | Political Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | $ 10.8 | |
Chaucer [Member] | Year 2014 to 2015 [Member] | Energy Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 16.8 | |
Chaucer [Member] | Year 2014 to 2015 [Member] | Political Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 15.8 | |
Chaucer [Member] | Year 2014 to 2015 [Member] | Treaty Line | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 28.4 | |
Chaucer [Member] | Year 2014 and Prior [Member] | Casualty Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | 17.6 | |
Chaucer [Member] | Year 2013 to 2015 [Member] | Property Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | $ 10.1 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | Dec. 11, 2009plaintiffclaim | Nov. 30, 2015claim | Sep. 30, 2017 |
Commitments And Contingencies Disclosure [Abstract] | |||
Participant's retirement age | 65 years | ||
Number of plaintiffs | plaintiff | 2 | ||
New claims | 2 | 3 | |
Claims Dismissed | 2 |