Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 42,535,767 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Premiums | $ 1,272.9 | $ 1,181.2 | $ 2,536.5 | $ 2,362.5 |
Net investment income | 78.7 | 72.3 | 161.6 | 143.4 |
Net realized and unrealized investment gains (losses): | ||||
Net realized gains (losses) from sales and other | (0.4) | 7.7 | (0.1) | 11 |
Net change in fair value of equity securities | 6 | (17) | ||
Net other–than–temporary impairment losses on investments recognized in earnings | (1.9) | (1.8) | (2.6) | (3.2) |
Total net realized and unrealized investment gains (losses) | 3.7 | 5.9 | (19.7) | 7.8 |
Fees and other income | 7.5 | 6.7 | 15.3 | 13.3 |
Total revenues | 1,362.8 | 1,266.1 | 2,693.7 | 2,527 |
Losses and expenses | ||||
Losses and loss adjustment expenses | 783.6 | 725 | 1,569.4 | 1,491.5 |
Amortization of deferred acquisition costs | 288.9 | 264.6 | 576.9 | 531 |
Interest expense | 11.6 | 12.2 | 24 | 24.2 |
Other operating expenses | 158.8 | 153.3 | 322.9 | 310.3 |
Total losses and expenses | 1,242.9 | 1,155.1 | 2,493.2 | 2,357 |
Income before income taxes | 119.9 | 111 | 200.5 | 170 |
Income tax expense (benefit): | ||||
Current | 17.3 | 4.9 | 37.5 | 38.8 |
Deferred | 3.4 | 27.7 | (4) | 7.6 |
Total income tax expense | 20.7 | 32.6 | 33.5 | 46.4 |
Income from continuing operations | 99.2 | 78.4 | 167 | 123.6 |
Net gain from discontinued operations (net of tax benefit of $0.1 for the six months ended June 30, 2018) | 0.1 | |||
Net income | $ 99.3 | $ 78.4 | $ 167 | $ 123.6 |
Basic: | ||||
Income from continuing operations | $ 2.33 | $ 1.85 | $ 3.93 | $ 2.91 |
Net gain from discontinued operations | 0.01 | |||
Net income per share | $ 2.34 | $ 1.85 | $ 3.93 | $ 2.91 |
Weighted average shares outstanding | 42.5 | 42.5 | 42.5 | 42.5 |
Diluted: | ||||
Income from continuing operations | $ 2.30 | $ 1.83 | $ 3.88 | $ 2.88 |
Net gain from discontinued operations | 0.01 | |||
Net income per share | $ 2.31 | $ 1.83 | $ 3.88 | $ 2.88 |
Weighted average shares outstanding | 43.1 | 42.8 | 43.1 | 42.9 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Income Statement [Abstract] | |
Net loss from discontinued operations, income tax benefit | $ 0.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 99.3 | $ 78.4 | $ 167 | $ 123.6 |
Available-for-sale securities: | ||||
Net (depreciation) appreciation during the period | (49) | 19.4 | (172.9) | 38.3 |
Change in other-than-temporary impairment losses recognized in other comprehensive income (loss) | (0.1) | 0.4 | 0.3 | 0.5 |
Total available-for-sale securities | (49.1) | 19.8 | (172.6) | 38.8 |
Pension and postretirement benefits: | ||||
Net change in net actuarial loss and prior service cost | 0.9 | 2.4 | (1.4) | 4.7 |
Cumulative foreign currency translation adjustment: | ||||
Amount recognized as cumulative foreign currency translation during the period | (0.5) | (4.5) | (1) | 0.6 |
Total other comprehensive (loss) income, net of tax | (48.7) | 17.7 | (175) | 44.1 |
Comprehensive income (loss) | $ 50.6 | $ 96.1 | $ (8) | $ 167.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed maturities, at fair value (amortized cost of $7,847.8 and $7,688.8) | $ 7,729.9 | $ 7,779.7 |
Equity securities, at fair value | 554 | 576.5 |
Other investments | 736.8 | 685.5 |
Total investments | 9,020.7 | 9,041.7 |
Cash and cash equivalents | 244.9 | 376.4 |
Accrued investment income | 62.7 | 62.7 |
Premiums and accounts receivable, net | 1,773.4 | 1,567.6 |
Reinsurance recoverable on paid and unpaid losses and unearned premiums | 2,832.3 | 3,057 |
Deferred acquisition costs | 564.5 | 550.2 |
Deferred income taxes | 71.2 | 29.2 |
Goodwill | 192.1 | 192.6 |
Other assets | 539.2 | 504.2 |
Assets of discontinued operations | 102.6 | 88 |
Total assets | 15,403.6 | 15,469.6 |
Liabilities | ||
Loss and loss adjustment expense reserves | 7,506.4 | 7,745 |
Unearned premiums | 2,958.5 | 2,763.6 |
Expenses and taxes payable | 643.3 | 716.2 |
Reinsurance premiums payable | 452.9 | 344.8 |
Debt | 787.1 | 786.9 |
Liabilities of discontinued operations | 115.6 | 115.4 |
Total liabilities | 12,463.8 | 12,471.9 |
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 | 1,864.2 | 1,857 |
Accumulated other comprehensive income (loss) | (169.1) | 107.6 |
Retained earnings | 2,200.4 | 1,975 |
Treasury stock at cost (18.0 million shares) | (956.3) | (942.5) |
Total shareholders’ equity | 2,939.8 | 2,997.7 |
Total liabilities and shareholders’ equity | $ 15,403.6 | $ 15,469.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 7,847.8 | $ 7,688.8 |
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 | 18,000,000 | 18,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Net Unrealized Appreciation (Depreciation) on Investments [Member] | Defined Benefit Pension and Postretirement Plans [Member] | Cumulative Foreign Currency Translation Adjustment [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss), net of tax [Member] |
Balance at beginning of period at Dec. 31, 2016 | $ 0.6 | $ 1,846.7 | $ 186 | $ (102.5) | $ (20.7) | $ 1,875.6 | $ (928.2) | ||
Balance at beginning of period, as adjusted at Dec. 31, 2016 | 1,875.6 | ||||||||
Net income | $ 123.6 | 123.6 | |||||||
Shares purchased at cost | (28) | ||||||||
Employee and director stock-based awards and other | 5.3 | ||||||||
Net appreciation (depreciation) on available-for-sale securities | 38.8 | 38.8 | |||||||
Net change in net actuarial loss and prior service cost | 4.7 | 4.7 | |||||||
Amount recognized as cumulative foreign currency translation during the period | 0.6 | 0.6 | |||||||
Dividends to shareholders | (42.6) | ||||||||
Net shares reissued at cost under employee stock-based compensation plans | 12.6 | ||||||||
Balance at end of period at Jun. 30, 2017 | 2,972.5 | 0.6 | 1,852 | 224.8 | (97.8) | (20.1) | 1,956.6 | (943.6) | $ 106.9 |
Balance at beginning of period at Dec. 31, 2017 | 2,997.7 | 0.6 | 1,857 | 205.4 | (79.5) | (18.3) | 1,975 | (942.5) | |
Cumulative effect of accounting change, net of taxes at Dec. 31, 2017 | 104.3 | ||||||||
Balance at beginning of period, as adjusted at Dec. 31, 2017 | 2,079.3 | ||||||||
Net income | 167 | 167 | |||||||
Shares purchased at cost | (25.3) | (25.3) | |||||||
Employee and director stock-based awards and other | 7.2 | ||||||||
Net appreciation (depreciation) on available-for-sale securities | (172.6) | (172.6) | |||||||
Net change in net actuarial loss and prior service cost | (1.4) | (1.4) | |||||||
Amount recognized as cumulative foreign currency translation during the period | (1) | (1) | |||||||
Adoption of Accounting Standards Update | Accounting Standards Update 2016-01 and 2018-02 [Member] | (81.6) | ||||||||
Adoption of Accounting Standards Update | Accounting Standards Update 2018-02 [Member] | (16.2) | (3.9) | |||||||
Dividends to shareholders | (45.9) | ||||||||
Net shares reissued at cost under employee stock-based compensation plans | 11.5 | ||||||||
Balance at end of period at Jun. 30, 2018 | $ 2,939.8 | $ 0.6 | $ 1,864.2 | $ (48.8) | $ (97.1) | $ (23.2) | $ 2,200.4 | $ (956.3) | $ (169.1) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 167 | $ 123.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net realized and unrealized investment losses (gains) | 19.4 | (7.8) |
Net amortization and depreciation | 14.1 | 15.4 |
Stock-based compensation expense | 7.6 | 7.3 |
Amortization of defined benefit plan costs | 4.8 | 7 |
Deferred income tax (benefit) expense | (4) | 7.6 |
Change in deferred acquisition costs | (14.3) | (29.6) |
Change in premiums receivable, net of reinsurance premiums payable | (100.6) | (73.8) |
Change in loss, loss adjustment expense and unearned premium reserves | 249.3 | 384.7 |
Change in reinsurance recoverable | (53.3) | (72.7) |
Change in expenses and taxes payable | (62.4) | (74.1) |
Other, net | (48.1) | (37.8) |
Net cash provided by operating activities | 179.5 | 249.8 |
Cash Flows From Investing Activities | ||
Proceeds from disposals and maturities of fixed maturities | 637.8 | 578.8 |
Proceeds from disposals of equity securities and other investments | 51.2 | 65.8 |
Purchase of fixed maturities | (822.6) | (668.4) |
Purchase of equity securities and other investments | (92.8) | (113.5) |
Capital expenditures | (7.8) | (8.6) |
Net cash used in investing activities | (234.2) | (145.9) |
Cash Flows From Financing Activities | ||
Proceeds from exercise of employee stock options | 11.1 | 10.3 |
Change in cash collateral related to securities lending program | (12.7) | (3.4) |
Dividends paid to shareholders | (45.9) | (42.6) |
Repurchases of common stock | (25.3) | (28) |
Other financing activities | (3.2) | (2.8) |
Net cash used in financing activities | (76) | (66.5) |
Effect of exchange rate changes on cash | (0.8) | 1.6 |
Net change in cash and cash equivalents | (131.5) | 39 |
Net change in cash related to discontinued operations | (3.8) | |
Cash and cash equivalents, beginning of period | 376.4 | 282.6 |
Cash and cash equivalents, end of period | $ 244.9 | $ 317.8 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jun. 30, 2018 | |
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 accident and health and former life insurance businesses. 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 first quarter, the effect of the adoption of new accounting standards ASC Update No. 2016-01 and ASC Update No. 2018-02 was incorrectly reflected in the presentation of other comprehensive income. The presentation of the adoption has been revised to only be presented in the Statement of Shareholders' Equity for the six months ended June 30, 2018. The revision decreased the Company's previously reported three months ended March 31, 2018 total other comprehensive loss, net of tax of $228.0 million and comprehensive loss of $160.3 million, by $101.7 million. The six months ended June 30, 2018 total other comprehensive loss, net of tax and comprehensive loss, reflecting the correction to the prior quarter, are $175.0 million and $8.0 million, respectively. The Company evaluated the significance of this item and concluded that it was not material to its previously issued interim financial statements. The associated corrections are reflected in this Form 10-Q report for all periods presented and will be reflected in the Company's future filings. 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 six months ended June 30, 2018 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 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 27, 2018. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Recently Implemented Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASC Update No. 2018-02 (Topic 220) Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 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. 2017-01, (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 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 Technical Corrections and Improvements to Financial Instruments – Overall. In May 2014, the FASB issued ASC Update No. 2014-09, (Topic 606) Revenue from Contracts with Customers Revenue from Contracts with Customers 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 January 2017, the FASB issued ASC Update No. 2017-04, (Topic 350) Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment 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. This ASC update requires a lessee to recognize a right-of-use asset, which represents the lessee’s right to use a specified asset for the lease term, and a corresponding lease liability, which represents a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, for all leases that extend beyond 12 months. For finance or capital leases, interest on the lease liability will be recognized separately from amortization of the right-of-use asset in the statements of income and comprehensive income. In addition, the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. For operating leases, the asset and liability will be amortized as a single lease cost, such that the cost of the lease is allocated over the lease term, on a generally straight-line basis, with all cash flows included within operating activities in the statement of cash flows. ASC Update No. 2016-02 requires that implementation of this guidance be through a modified retrospective transition approach. In July 2018, the FASB issued ASC Update No. 2018-11, (Topic 842) Leases Targeted Improvements |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 3. Income Taxes Income tax expense for the six months ended June 30, 2018 and 2017 has been computed using estimated annual effective tax rates. These rates reflect the change in the U.S. statutory tax rate from 35% to 21%, effective January 1, 2018. 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 six months ended June 30, 2018, the tax provision was comprised of a $25.7 million U.S. federal income tax expense and a $7.8 million foreign income tax expense. For the six months ended June 30, 2017, the tax provision was comprised of a $44.3 million U.S. federal income tax expense and a $2.1 million foreign income tax expense. 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 and foreign examinations for years after 2013. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 4. Investments A. Fixed maturities The amortized cost and fair value of available-for-sale fixed maturity securities were as follows: June 30, 2018 Gross Gross OTTI Amortized Unrealized Unrealized Unrealized (in millions) Cost Gains Losses Fair Value Losses U.S. Treasury and government agencies $ 595.1 $ 1.7 $ 16.3 $ 580.5 $ — Foreign government 209.6 2.1 2.2 209.5 — Municipal 1,035.3 17.9 15.5 1,037.7 — Corporate 4,278.7 38.9 101.3 4,216.3 6.6 Residential mortgage-backed 1,026.7 1.8 31.5 997.0 — Commercial mortgage-backed 624.0 1.0 13.4 611.6 — Asset-backed 78.4 - 1.1 77.3 — Total fixed maturities $ 7,847.8 $ 63.4 $ 181.3 $ 7,729.9 $ 6.6 December 31, 2017 Gross Gross OTTI Amortized Unrealized Unrealized Unrealized (in millions) Cost Gains Losses Fair Value Losses U.S. Treasury and government agencies $ 513.6 $ 3.4 $ 5.6 $ 511.4 $ — Foreign government 240.8 3.2 1.3 242.7 — Municipal 1,053.3 29.8 7.1 1,076.0 — Corporate 4,238.9 95.0 26.4 4,307.5 6.9 Residential mortgage-backed 990.6 6.5 11.1 986.0 — Commercial mortgage-backed 591.7 7.2 2.5 596.4 — Asset-backed 59.9 0.1 0.3 59.7 — Total fixed maturities $ 7,688.8 $ 145.2 $ 54.3 $ 7,779.7 $ 6.9 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 $9.1 million and $11.5 million as of June 30, 2018 and December 31, 2017, 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 $596.4 million of fixed maturities and $7.1 million of cash and cash equivalents as of June 30, 2018. 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, 2017. 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. June 30, 2018 Amortized Fair (in millions) Cost Value Due in one year or less $ 408.2 $ 409.7 Due after one year through five years 2,789.5 2,784.6 Due after five years through ten years 2,589.6 2,515.2 Due after ten years 331.4 334.5 6,118.7 6,044.0 Mortgage-backed and asset-backed securities 1,729.1 1,685.9 Total fixed maturities $ 7,847.8 $ 7,729.9 B. Fixed maturity securities in an unrealized loss position The following tables provide information about the Company’s available-for-sale fixed maturity securities that were in an unrealized loss position at June 30, 2018 and December 31, 2017 including the length of time the securities have been in an unrealized loss position: June 30, 2018 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 Investment grade: U.S. Treasury and government agencies $ 10.0 $ 393.6 $ 6.3 $ 103.2 $ 16.3 $ 496.8 Foreign governments 1.3 86.6 0.9 52.5 2.2 139.1 Municipal 8.5 390.7 7.0 126.6 15.5 517.3 Corporate 57.2 2,343.5 33.1 480.1 90.3 2,823.6 Residential mortgage-backed 13.1 512.5 18.4 347.4 31.5 859.9 Commercial mortgage-backed 10.4 445.6 3.0 61.2 13.4 506.8 Asset-backed 1.0 56.6 0.1 1.6 1.1 58.2 Total investment grade 101.5 4,229.1 68.8 1,172.6 170.3 5,401.7 Below investment grade: Municipal — 0.9 — — — 0.9 Corporate 4.6 151.0 6.4 38.1 11.0 189.1 Total below investment grade 4.6 151.9 6.4 38.1 11.0 190.0 Total fixed maturities $ 106.1 $ 4,381.0 $ 75.2 $ 1,210.7 $ 181.3 $ 5,591.7 December 31, 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 Investment grade: U.S. Treasury and government agencies $ 2.1 $ 282.1 $ 3.5 $ 103.1 $ 5.6 $ 385.2 Foreign governments 0.9 99.4 0.4 22.8 1.3 122.2 Municipal 2.1 257.5 5.0 133.1 7.1 390.6 Corporate 5.6 799.6 12.3 481.3 17.9 1,280.9 Residential mortgage-backed 2.0 272.9 9.1 362.4 11.1 635.3 Commercial mortgage-backed 0.9 139.3 1.6 63.2 2.5 202.5 Asset-backed 0.3 34.5 — 2.5 0.3 37.0 Total investment grade 13.9 1,885.3 31.9 1,168.4 45.8 3,053.7 Below investment grade: Corporate 1.7 53.2 6.8 43.5 8.5 96.7 Total fixed maturities $ 15.6 $ 1,938.5 $ 38.7 $ 1,211.9 $ 54.3 $ 3,150.4 The Company views gross unrealized losses on fixed maturities 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. In determining OTTI, 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 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 amortized cost. The Company also 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. C. Proceeds from sales The proceeds from sales of available-for-sale securities and gross realized gains and gross realized losses on those sales were as follows: Three Months Ended June 30, 2018 2017 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 164.6 $ 1.7 $ 2.5 $ 132.5 $ 3.1 $ 0.4 Six Months Ended June 30, 2018 2017 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 292.4 $ 2.3 $ 4.8 $ 230.1 $ 5.2 $ 1.4 D. Other-than-temporary impairments For the three months ended June 30, 2018, total OTTI of $1.9 million, which consisted of other invested assets and fixed maturities, was recognized in earnings. For the six months ended June 30, 2018, total OTTI was $2.9 million, consisting primarily of fixed maturities and other invested assets. Of this amount, $2.6 million was recognized in earnings and the remaining $0.3 million was recorded as unrealized losses in AOCI. For the three months ended June 30, 2017, total OTTI was $2.0 million, consisting primarily of equity securities. Of this amount, $1.8 million was recognized in earnings and the remaining $0.2 million was recorded as unrealized losses in AOCI. For the six months ended June 30, 2017, total OTTI was $3.4 million, consisting primarily of equity securities and other invested assets. Of this amount, $3.2 million was recognized in earnings and the remaining $0.2 million was recorded as unrealized losses in AOCI. The methodology and significant inputs used to measure the amount of credit losses on fixed maturities in 2018 and 2017 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 and asset duration and loss-given-default factors based on security type. These factors are based on historical data provided by an independent third-party rating agency. In addition, other market data relevant to the realizability of contractual cash flows may be considered. 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 June 30, Six Months Ended June 30, (in millions) 2018 2017 2018 2017 Credit losses at beginning of period $ 3.3 $ 9.9 $ 3.9 $ 10.0 Credit losses for which an OTTI was not previously recognized 0.7 0.2 0.9 0.2 Additional credit losses on securities for which an OTTI was previously recognized 0.1 0.1 0.1 0.1 Reductions for securities sold, matured or called (0.1 ) (0.6 ) (0.9 ) (0.7 ) Credit losses at end of period $ 4.0 $ 9.6 $ 4.0 $ 9.6 E. Equity securities Equity securities are carried at fair value. Effective January 1, 2018, all increases or decreases in fair value on equity securities are reported in net realized and unrealized investment gains (losses) on the Consolidated Statements of Income. Previously, equity securities were categorized as available-for-sale and unrealized gains and losses were reported in AOCI, a separate component of shareholders’ equity. As of December 31, 2017, we held equity securities with a fair value of $576.5 million and a cost of $433.7 million. On January 1, 2018, the Company recorded a cumulative effect adjustment which included the reclassification of net unrealized gains on equities of $142.8 million, pre-tax, from AOCI to retained earnings. The following table provides pre-tax realized and unrealized gains (losses) on equity securities recognized in net income during the three and six months ended June 30, 2018: (in millions) Three Months Ended Six Months Ended Net gains (losses) recognized during the period $ 6.0 $ (17.0 ) Less: net losses recognized on equity securities sold during the period (1.3 ) (0.8 ) Net unrealized gains (losses) recognized during the period on equity securities still held $ 7.3 $ (16.2 ) During the three and six months ended June 30, 2017, there were net unrealized gains on equity securities of $7.9 million and $29.4 million, respectively, recognized in AOCI and net realized gains from sales of equity securities of $3.4 million and $5.8 million, respectively, recognized in earnings. Proceeds from the sale of equities for the three and six months ended June 30, 2017 were $32.7 million and $46.3 million, respectively. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
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. 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, limited partnerships not subject to equity method of accounting, 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 limited partnerships not subject to the equity method of accounting 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: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (in millions) Value Value Value Value Financial Assets carried at (1) Fair Value through AOCI: Fixed maturities $ 7,729.9 $ 7,729.9 $ 7,779.7 $ 7,779.7 Equity securities — — 576.5 576.5 Other investments — — 3.6 3.6 Fair Value through Net Income: Equity securities 554.0 554.0 — — Other investments 286.8 286.8 122.8 122.8 Amortized Cost/Cost: Other investments 393.0 394.4 512.8 518.3 Cash and cash equivalents 244.9 244.9 376.4 376.4 $ 9,208.6 $ 9,210.0 $ 9,371.8 $ 9,377.3 Financial Liabilities carried at: Amortized Cost: Debt $ 787.1 $ 838.6 $ 786.9 $ 865.7 (1) Due to the adoption of ASU No. 2016-01, certain classifications are not comparable to the prior year. See Note 2 – “New Accounting Pronouncements”. 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 2018 and 2017, 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. June 30, 2018 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 580.5 $ 235.4 $ 345.1 $ — Foreign government 209.5 21.1 188.4 — Municipal 1,037.7 — 1,013.3 24.4 Corporate 4,216.3 — 4,215.5 0.8 Residential mortgage-backed, U.S. agency backed 993.8 — 993.8 — Residential mortgage-backed, non-agency 3.2 — 3.2 — Commercial mortgage-backed 611.6 — 598.3 13.3 Asset-backed 77.3 — 77.3 — Total fixed maturities 7,729.9 256.5 7,434.9 38.5 Equity securities 554.0 552.9 — 1.1 Other investments 128.5 — 124.9 3.6 Total investment assets at fair value $ 8,412.4 $ 809.4 $ 7,559.8 $ 43.2 December 31, 2017 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 511.4 $ 227.6 $ 283.8 $ — Foreign government 242.7 50.1 192.6 — Municipal 1,076.0 — 1,049.2 26.8 Corporate 4,307.5 — 4,306.6 0.9 Residential mortgage-backed, U.S. agency backed 956.4 — 956.4 — Residential mortgage-backed, non-agency 29.6 — 29.6 — Commercial mortgage-backed 596.4 — 582.2 14.2 Asset-backed 59.7 — 59.7 — Total fixed maturities 7,779.7 277.7 7,460.1 41.9 Equity securities 568.1 567.0 — 1.1 Other investments 126.4 — 122.8 3.6 Total investment assets at fair value $ 8,474.2 $ 844.7 $ 7,582.9 $ 46.6 Limited partnerships measured at fair value using NAV based on an ownership interest in partners’ capital have not been included in the tables above. At June 30, 2018 and December 31, 2017, the fair values of these investments were $158.3 million and $149.4 million, respectively, which are less than 2% of total investment assets. The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value: June 30, 2018 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 244.9 $ 244.9 $ — $ — Other investments 394.4 — 8.8 385.6 Liabilities: Debt $ 838.6 $ — $ 838.6 $ — December 31, 2017 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 376.4 $ 376.4 $ — $ — Equity securities 8.4 — 8.4 — Other investments 368.9 — — 368.9 Liabilities: Debt $ 865.7 $ — $ 865.7 $ — The tables below provide a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Fixed Maturities (in millions) Municipal Corporate Commercial mortgage- backed Total Equity and Other Total Assets Three Months Ended June 30, 2018 Balance April 1, 2018 $ 25.3 $ 0.8 $ 13.5 $ 39.6 $ 4.7 $ 44.3 Total losses: Included in other comprehensive income-net depreciation on available-for-sale securities (0.1 ) — (0.1 ) (0.2 ) — (0.2 ) Sales (0.8 ) — (0.1 ) (0.9 ) — (0.9 ) Balance June 30, 2018 $ 24.4 $ 0.8 $ 13.3 $ 38.5 $ 4.7 $ 43.2 Three Months Ended June 30, 2017 Balance April 1, 2017 $ 30.8 $ 3.9 $ 14.6 $ 49.3 $ 5.6 $ 54.9 Total gains (losses): Included in total net realized and unrealized investment gains — 0.3 — 0.3 — 0.3 Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities 0.2 (0.2 ) 0.1 0.1 — 0.1 Sales (0.9 ) (3.0 ) (0.1 ) (4.0 ) — (4.0 ) Balance June 30, 2017 $ 30.1 $ 1.0 $ 14.6 $ 45.7 $ 5.6 $ 51.3 Fixed Maturities (in millions) Municipal Corporate Commercial mortgage- backed Total Equity and Other Total Assets Six Months Ended June 30, 2018 Balance January 1, 2018 $ 26.8 $ 0.9 $ 14.2 $ 41.9 $ 4.7 $ 46.6 Total gains (losses): Included in total net realized and unrealized investment gains 0.1 — — 0.1 — 0.1 Included in other comprehensive income-net depreciation on available-for-sale securities (0.6 ) — (0.3 ) (0.9 ) — (0.9 ) Sales (1.9 ) (0.1 ) (0.6 ) (2.6 ) — (2.6 ) Balance June 30, 2018 $ 24.4 $ 0.8 $ 13.3 $ 38.5 $ 4.7 $ 43.2 Six Months Ended June 30, 2017 Balance January 1, 2017 $ 31.0 $ 4.2 $ 15.0 $ 50.2 $ 5.6 $ 55.8 Total gains (losses): Included in total net realized and unrealized investment gains — 0.3 — 0.3 — 0.3 Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities 0.4 (0.2 ) 0.1 0.3 — 0.3 Sales (1.3 ) (3.3 ) (0.5 ) (5.1 ) — (5.1 ) Balance June 30, 2017 $ 30.1 $ 1.0 $ 14.6 $ 45.7 $ 5.6 $ 51.3 During the three and six months ended June 30, 2018 and 2017, there were no transfers in or out of Level 3, nor were there any transfers between Level 1 and Level 2. There were no Level 3 liabilities held by the Company for the six months ended June 30, 2018 and 2017. 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. June 30, 2018 December 31, 2017 Valuation Significant Fair Range Fair Range (in millions) Technique Unobservable Inputs Value (Wtd Average) Value (Wtd Average) Fixed maturities: Municipal Discounted Discount for: $ 24.4 $ 26.8 cash flow Small issue size Credit stress Above-market coupon 0.7 -6.8% (3.2%) 1.3% (1.3%) 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: 0.8 0.9 cash flow Small issue size Above-market coupon 2.5% (2.5%) 0.3% (0.3%) 2.5% (2.5%) 0.3% (0.3%) Commercial mortgage-backed Discounted Discount for: 13.3 14.2 cash flow Small issue size Above-market coupon Lease structure 1.9 - 3.1% (2.7%) 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 3.6 18.0% (18.0%) 3.6 18.0% (18.0%) cash flow Significant increases (decreases) in any of the above inputs in isolation would result in a significantly lower (higher) fair value measurement. There were no interrelationships between these inputs which might magnify or mitigate the effect of changes in unobservable inputs on the fair value measurement. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 2017 2018 2017 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ — $ — $ — Interest cost 5.9 6.5 0.1 0.1 Expected return on plan assets (6.8 ) (6.8 ) — — Recognized net actuarial loss 2.4 3.8 — 0.1 Amortization of prior service cost — — (0.1 ) (0.4 ) Net periodic pension cost (benefit) $ 1.5 $ 3.5 $ — $ (0.2 ) Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ — $ — $ — Interest cost 11.8 12.9 0.2 0.2 Expected return on plan assets (13.7 ) (13.6 ) — — Recognized net actuarial loss 4.9 7.6 0.1 0.1 Amortization of prior service cost — — (0.2 ) (0.7 ) Net periodic pension cost (benefit) $ 3.0 $ 6.9 $ 0.1 $ (0.4 ) |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income | 7. Other Comprehensive Income The following tables provide changes in other comprehensive income. Three Months Ended June 30, 2018 2017 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 (losses) arising during period $ (58.1 ) $ 12.4 $ (45.7 ) $ 41.0 $ (14.5 ) $ 26.5 Amount of realized gains (losses) from sales and other — (3.3 ) (3.3 ) (7.2 ) (0.7 ) (7.9 ) Portion of other-than-temporary impairment losses recognized in earnings (0.1 ) — (0.1 ) 1.8 (0.6 ) 1.2 Net unrealized gains (losses) (58.2 ) 9.1 (49.1 ) 35.6 (15.8 ) 19.8 Pension and postretirement benefits: Net change in net actuarial loss and prior service cost 1.1 (0.2 ) 0.9 3.5 (1.1 ) 2.4 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period (0.6 ) 0.1 (0.5 ) (6.9 ) 2.4 (4.5 ) Other comprehensive income (loss) $ (57.7 ) $ 9.0 $ (48.7 ) $ 32.2 $ (14.5 ) $ 17.7 Six Months Ended June 30, 2018 2017 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 (losses) arising during period $ (211.8 ) $ 44.5 $ (167.3 ) $ 79.0 $ (27.8 ) $ 51.2 Amount of realized gains (losses) from sales and other 0.2 (5.8 ) (5.6 ) (11.3 ) (2.4 ) (13.7 ) Portion of other-than-temporary impairment losses recognized in earnings 0.4 (0.1 ) 0.3 2.0 (0.7 ) 1.3 Net unrealized gains (losses) (211.2 ) 38.6 (172.6 ) 69.7 (30.9 ) 38.8 Pension and postretirement benefits: Net change in net actuarial loss and prior service cost (1.8 ) 0.4 (1.4 ) 7.0 (2.3 ) 4.7 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period (1.2 ) 0.2 (1.0 ) 0.9 (0.3 ) 0.6 Other comprehensive income (loss) $ (214.2 ) $ 39.2 $ (175.0 ) $ 77.6 $ (33.5 ) $ 44.1 Reclassifications out of accumulated other comprehensive income were as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 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 $ — $ 7.2 $ (0.2 ) $ 11.3 Net realized gains (losses) from sales and other Net other-than-temporary impairment 0.1 (1.8 ) (0.4 ) (2.0 ) losses on investments recognized in earnings 0.1 5.4 (0.6 ) 9.3 Total before tax 3.3 1.3 5.9 3.1 Tax benefit 3.4 6.7 5.3 12.4 Net of tax Amortization of defined benefit Loss adjustment expenses and other pension and postretirement plans (2.3 ) (3.5 ) (4.8 ) (7.0 ) operating expenses 0.5 1.1 1.0 2.3 Tax benefit (1.8 ) (2.4 ) (3.8 ) (4.7 ) Net of tax Total reclassifications for the period $ 1.6 $ 4.3 $ 1.5 $ 7.7 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 six months ended June 30, 2018 and 2017. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
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 run-off syndicate participations), energy, property, and assumed reinsurance treaty business (“treaty”). Included in the Other segment are Opus Investment Management, Inc., which markets investment management services to institutions, pension funds and other organizations; earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits due to the Company’s former life insurance employees and agents; and, a run-off 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 and unrealized 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 Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Operating revenues: Commercial Lines $ 681.7 $ 634.5 $ 1,358.3 $ 1,265.0 Personal Lines 444.5 411.5 879.4 813.3 Chaucer 228.8 211.2 468.2 435.9 Other 4.1 3.0 7.5 5.0 Total 1,359.1 1,260.2 2,713.4 2,519.2 Net realized and unrealized investment gains (losses) 3.7 5.9 (19.7 ) 7.8 Total revenues $ 1,362.8 $ 1,266.1 $ 2,693.7 $ 2,527.0 Operating income (loss) before interest expense and income taxes: Commercial Lines: Underwriting income (loss) $ 37.7 $ 2.3 $ 54.1 $ (0.4 ) Net investment income 44.8 41.3 90.1 81.6 Other expense (0.5 ) (0.4 ) (0.7 ) (0.6 ) Commercial Lines operating income 82.0 43.2 143.5 80.6 Personal Lines: Underwriting income 8.0 29.5 22.7 21.1 Net investment income 18.1 17.4 36.5 34.5 Other income 1.2 1.0 2.5 2.2 Personal Lines operating income 27.3 47.9 61.7 57.8 Chaucer: Underwriting income 9.3 18.0 15.5 31.8 Net investment income 12.5 11.3 28.9 23.7 Other income (expense) 0.1 0.4 0.4 (0.9 ) Chaucer operating income 21.9 29.7 44.8 54.6 Other: Underwriting loss (1.4 ) (0.9 ) (2.7 ) (1.8 ) Net investment income 3.3 2.3 6.1 3.6 Other expense (3.3 ) (3.3 ) (7.0 ) (6.8 ) Other operating (loss) gain (1.4 ) (1.9 ) (3.6 ) 5.0 Operating income before interest expense and income taxes 129.8 118.9 246.4 188.0 Interest on debt (11.6 ) (12.2 ) (24.0 ) (24.2 ) Operating income before income taxes 118.2 106.7 222.4 163.8 Non-operating income items: Net realized and unrealized investment gains (losses) 3.7 5.9 (19.7 ) 7.8 Other non-operating items (2.0 ) (1.6 ) (2.2 ) (1.6 ) Income before income taxes $ 119.9 $ 111.0 $ 200.5 $ 170.0 The Company recognized approximately $2 million in net foreign exchange gains and $3 million in net foreign exchange losses in the Statements of Income during the three months ended June 30, 2018 and 2017, respectively. The Company recognized approximately $1 million in net foreign exchange gains and $4 million in net foreign exchange losses in the Statements of Income during the six months ended June 30, 2018 and 2017, respectively. The following table provides identifiable assets for the Company’s business segments and discontinued operations: June 30, 2018 December 31, 2017 (in millions) Identifiable Assets U.S. Companies $ 11,049.8 $ 10,909.2 Chaucer 4,251.2 4,472.4 Discontinued operations 102.6 88.0 Total $ 15,403.6 $ 15,469.6 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 | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 9. Stock-based Compensation As of June 30, 2018, there were 4,075,328 shares, 2,378,832 shares and 680,810 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 June 30, Six Months Ended June 30, (in millions) 2018 2017 2018 2017 Stock-based compensation expense $ 4.6 $ 4.1 $ 7.6 $ 7.3 Tax benefit (1.0 ) (1.4 ) (1.6 ) (2.5 ) Stock-based compensation expense, net of taxes $ 3.6 $ 2.7 $ 6.0 $ 4.8 Stock Options Information on the Company’s stock option activity for the six months ended June 30, 2018 and 2017 is summarized below. Six Months Ended June 30, 2018 2017 (in whole shares and dollars) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of period 1,062,177 $ 75.53 1,396,152 $ 68.63 Granted 294,603 110.68 460,610 90.85 Exercised (149,043 ) 71.74 (180,940 ) 59.50 Forfeited or cancelled (50,491 ) 88.48 (16,567 ) 80.40 Outstanding, end of period 1,157,246 84.40 1,659,255 75.68 Restricted Stock Units The following tables summarize activity information about employee restricted stock units: Six Months Ended June 30, 2018 2017 (in whole shares and dollars) Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Time-based restricted stock units: Outstanding, beginning of period 298,528 $ 83.45 269,063 $ 73.91 Granted 143,565 111.21 128,235 90.51 Vested (71,556 ) 72.56 (70,590 ) 59.29 Forfeited (16,890 ) 89.89 (13,830 ) 84.30 Outstanding, end of period 353,647 96.61 312,878 83.55 Performance-based and market-based restricted stock units: Outstanding, beginning of period 102,586 $ 81.21 115,057 $ 78.82 Granted 34,280 117.65 60,101 79.48 Vested (14,032 ) 70.24 (17,642 ) 58.16 Forfeited (7,625 ) 81.91 (2,180 ) 95.36 Outstanding, end of period 115,209 93.34 155,336 81.19 In the first six months of 2018 and 2017, the Company granted market-based awards totaling 30,905 and 56,571, 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 2018 and 2017 are 3,115 shares and 5,881 shares, respectively, related to market-based awards that achieved a payout in excess of 100%. These awards vested in the first six months of 2018 and 2017, 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 2018 and 2017 at a level greater than 100%. |
Earnings Per Share and Sharehol
Earnings Per Share and Shareholders' Equity Transactions | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, June 30, (in millions, except per share data) 2018 2017 2018 2017 Basic shares used in the calculation of earnings per share 42.5 42.5 42.5 42.5 Dilutive effect of securities: Employee stock options 0.3 0.2 0.3 0.2 Non-vested stock grants 0.3 0.1 0.3 0.2 Diluted shares used in the calculation of earnings per share 43.1 42.8 43.1 42.9 Per share effect of dilutive securities on income from continuing operations and net income $ (0.03 ) $ (0.02 ) $ (0.05 ) $ (0.03 ) Diluted earnings per share for the three months ended June 30, 2018 and 2017 excludes 0.3 million and 1.0 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 six months ended June 30, 2018 and 2017 excludes 0.3 million and 0.9 million, respectively, 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 six months of 2018, the Company purchased approximately 0.2 million shares of the Company’s common stock at a cost of $25.3 million. |
Liabilities For Outstanding Cla
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2018 | |
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. Six Months Ended June 30, (in millions) 2018 2017 Gross loss and LAE reserves, beginning of period $ 7,745.0 $ 6,949.4 Reinsurance recoverable on unpaid losses 2,608.4 2,274.8 Net loss and LAE reserves, beginning of period 5,136.6 4,674.6 Net incurred losses and LAE in respect of losses occurring in: Current year 1,603.5 1,516.0 Prior years (34.1 ) (24.5 ) Total incurred losses and LAE 1,569.4 1,491.5 Net payments of losses and LAE in respect of losses occurring in: Current year 504.9 491.2 Prior years 944.1 799.7 Total payments 1,449.0 1,290.9 Effect of foreign exchange rate changes (14.1 ) 25.8 Net reserve for losses and LAE, end of period 5,242.9 4,901.0 Reinsurance recoverable on unpaid losses 2,263.5 2,261.4 Gross reserve for losses and LAE, end of period $ 7,506.4 $ 7,162.4 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 $34.1 million in 2018 in comparison to a decrease of $24.5 million in 2017. 2018 For the six months ended June 30, 2018, net favorable loss and LAE development was $34.1 million, primarily as a result of net favorable development of $27.4 million for Chaucer. Chaucer’s favorable development during the six months ended June 30, 2018 was primarily the result of lower loss estimates in the political, marine and aviation lines of $27.2 million and in the energy line, partially offset by higher than expected losses in the casualty line and the U.S. casualty business within the treaty line. Also partially offsetting Chaucer’s favorable development was the unfavorable impact of foreign exchange rate movements on prior years’ loss reserves. Additionally, lower than expected losses in other commercial, commercial multiple peril and workers’ compensation lines was partially offset by higher than expected losses in our commercial and personal automobile lines. Within other commercial lines, lower than expected losses in our professional and management liability and monoline general liability lines was partially offset by higher than expected losses in AIX programs and business classes which have been terminated. 2017 For the six months ended June 30, 2017, net favorable loss and LAE development was $24.5 million, primarily as a result of net favorable development of $24.3 million for Chaucer. Chaucer’s favorable development during the six months ended June 30, 2017 was primarily the result of lower loss estimates in the energy line of $15.5 million and in the treaty line. Partially offsetting Chaucer’s favorable development was the unfavorable impact of foreign exchange rate movements on prior years’ loss reserves. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
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, prior to the decision on the appeal, 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. On November 2, 2017, plaintiffs filed a motion conceding that the statutory “whipsaw” claims, but not the breach of fiduciary duty or failure to meet ERISA notice requirement claims, of participants who received lump sum distributions prior to March 13, 2002 are time-barred. Consequently, on February 16, 2018, the Court entered an order limiting the claims of those participants to alleged violations of ERISA’s disclosure requirements and breaches of fiduciary duty. After the Court denied plaintiffs’ motion for reconsideration of the Court’s February 16, 2018 order, the parties entered into settlement discussions and have reached a settlement in principle on major terms, which is subject to agreement on certain other terms, written documentation, and Court approval. Provided the parties are able to finalize such settlement on substantially the terms agreed upon in principle and obtain the necessary court approval, we do not believe the resulting settlement amount will be material to the Company’s financial position or have a material effect on its results of operations. 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 | 6 Months Ended |
Jun. 30, 2018 | |
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. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Implemented Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASC Update No. 2018-02 (Topic 220) Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 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. 2017-01, (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 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 Technical Corrections and Improvements to Financial Instruments – Overall. In May 2014, the FASB issued ASC Update No. 2014-09, (Topic 606) Revenue from Contracts with Customers Revenue from Contracts with Customers 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 January 2017, the FASB issued ASC Update No. 2017-04, (Topic 350) Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment 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. This ASC update requires a lessee to recognize a right-of-use asset, which represents the lessee’s right to use a specified asset for the lease term, and a corresponding lease liability, which represents a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, for all leases that extend beyond 12 months. For finance or capital leases, interest on the lease liability will be recognized separately from amortization of the right-of-use asset in the statements of income and comprehensive income. In addition, the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. For operating leases, the asset and liability will be amortized as a single lease cost, such that the cost of the lease is allocated over the lease term, on a generally straight-line basis, with all cash flows included within operating activities in the statement of cash flows. ASC Update No. 2016-02 requires that implementation of this guidance be through a modified retrospective transition approach. In July 2018, the FASB issued ASC Update No. 2018-11, (Topic 842) Leases Targeted Improvements |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and fair value of available-for-sale fixed maturity securities were as follows: June 30, 2018 Gross Gross OTTI Amortized Unrealized Unrealized Unrealized (in millions) Cost Gains Losses Fair Value Losses U.S. Treasury and government agencies $ 595.1 $ 1.7 $ 16.3 $ 580.5 $ — Foreign government 209.6 2.1 2.2 209.5 — Municipal 1,035.3 17.9 15.5 1,037.7 — Corporate 4,278.7 38.9 101.3 4,216.3 6.6 Residential mortgage-backed 1,026.7 1.8 31.5 997.0 — Commercial mortgage-backed 624.0 1.0 13.4 611.6 — Asset-backed 78.4 - 1.1 77.3 — Total fixed maturities $ 7,847.8 $ 63.4 $ 181.3 $ 7,729.9 $ 6.6 December 31, 2017 Gross Gross OTTI Amortized Unrealized Unrealized Unrealized (in millions) Cost Gains Losses Fair Value Losses U.S. Treasury and government agencies $ 513.6 $ 3.4 $ 5.6 $ 511.4 $ — Foreign government 240.8 3.2 1.3 242.7 — Municipal 1,053.3 29.8 7.1 1,076.0 — Corporate 4,238.9 95.0 26.4 4,307.5 6.9 Residential mortgage-backed 990.6 6.5 11.1 986.0 — Commercial mortgage-backed 591.7 7.2 2.5 596.4 — Asset-backed 59.9 0.1 0.3 59.7 — Total fixed maturities $ 7,688.8 $ 145.2 $ 54.3 $ 7,779.7 $ 6.9 |
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. June 30, 2018 Amortized Fair (in millions) Cost Value Due in one year or less $ 408.2 $ 409.7 Due after one year through five years 2,789.5 2,784.6 Due after five years through ten years 2,589.6 2,515.2 Due after ten years 331.4 334.5 6,118.7 6,044.0 Mortgage-backed and asset-backed securities 1,729.1 1,685.9 Total fixed maturities $ 7,847.8 $ 7,729.9 |
Schedule of Unrealized Loss on Investments | The following tables provide information about the Company’s available-for-sale fixed maturity securities that were in an unrealized loss position at June 30, 2018 and December 31, 2017 including the length of time the securities have been in an unrealized loss position: June 30, 2018 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 Investment grade: U.S. Treasury and government agencies $ 10.0 $ 393.6 $ 6.3 $ 103.2 $ 16.3 $ 496.8 Foreign governments 1.3 86.6 0.9 52.5 2.2 139.1 Municipal 8.5 390.7 7.0 126.6 15.5 517.3 Corporate 57.2 2,343.5 33.1 480.1 90.3 2,823.6 Residential mortgage-backed 13.1 512.5 18.4 347.4 31.5 859.9 Commercial mortgage-backed 10.4 445.6 3.0 61.2 13.4 506.8 Asset-backed 1.0 56.6 0.1 1.6 1.1 58.2 Total investment grade 101.5 4,229.1 68.8 1,172.6 170.3 5,401.7 Below investment grade: Municipal — 0.9 — — — 0.9 Corporate 4.6 151.0 6.4 38.1 11.0 189.1 Total below investment grade 4.6 151.9 6.4 38.1 11.0 190.0 Total fixed maturities $ 106.1 $ 4,381.0 $ 75.2 $ 1,210.7 $ 181.3 $ 5,591.7 December 31, 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 Investment grade: U.S. Treasury and government agencies $ 2.1 $ 282.1 $ 3.5 $ 103.1 $ 5.6 $ 385.2 Foreign governments 0.9 99.4 0.4 22.8 1.3 122.2 Municipal 2.1 257.5 5.0 133.1 7.1 390.6 Corporate 5.6 799.6 12.3 481.3 17.9 1,280.9 Residential mortgage-backed 2.0 272.9 9.1 362.4 11.1 635.3 Commercial mortgage-backed 0.9 139.3 1.6 63.2 2.5 202.5 Asset-backed 0.3 34.5 — 2.5 0.3 37.0 Total investment grade 13.9 1,885.3 31.9 1,168.4 45.8 3,053.7 Below investment grade: Corporate 1.7 53.2 6.8 43.5 8.5 96.7 Total fixed maturities $ 15.6 $ 1,938.5 $ 38.7 $ 1,211.9 $ 54.3 $ 3,150.4 |
Schedule of Realized Gain (Loss) | The proceeds from sales of available-for-sale securities and gross realized gains and gross realized losses on those sales were as follows: Three Months Ended June 30, 2018 2017 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 164.6 $ 1.7 $ 2.5 $ 132.5 $ 3.1 $ 0.4 Six Months Ended June 30, 2018 2017 Proceeds from Gross Gross Proceeds from Gross Gross (in millions) Sales Gains Losses Sales Gains Losses Fixed maturities $ 292.4 $ 2.3 $ 4.8 $ 230.1 $ 5.2 $ 1.4 |
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 June 30, Six Months Ended June 30, (in millions) 2018 2017 2018 2017 Credit losses at beginning of period $ 3.3 $ 9.9 $ 3.9 $ 10.0 Credit losses for which an OTTI was not previously recognized 0.7 0.2 0.9 0.2 Additional credit losses on securities for which an OTTI was previously recognized 0.1 0.1 0.1 0.1 Reductions for securities sold, matured or called (0.1 ) (0.6 ) (0.9 ) (0.7 ) Credit losses at end of period $ 4.0 $ 9.6 $ 4.0 $ 9.6 |
Schedule of Pre-tax Realized and Unrealized Gains and Losses on Equity Securities Recognized in Net Income | The following table provides pre-tax realized and unrealized gains (losses) on equity securities recognized in net income during the three and six months ended June 30, 2018: (in millions) Three Months Ended Six Months Ended Net gains (losses) recognized during the period $ 6.0 $ (17.0 ) Less: net losses recognized on equity securities sold during the period (1.3 ) (0.8 ) Net unrealized gains (losses) recognized during the period on equity securities still held $ 7.3 $ (16.2 ) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The estimated fair value of the financial instruments were as follows: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (in millions) Value Value Value Value Financial Assets carried at (1) Fair Value through AOCI: Fixed maturities $ 7,729.9 $ 7,729.9 $ 7,779.7 $ 7,779.7 Equity securities — — 576.5 576.5 Other investments — — 3.6 3.6 Fair Value through Net Income: Equity securities 554.0 554.0 — — Other investments 286.8 286.8 122.8 122.8 Amortized Cost/Cost: Other investments 393.0 394.4 512.8 518.3 Cash and cash equivalents 244.9 244.9 376.4 376.4 $ 9,208.6 $ 9,210.0 $ 9,371.8 $ 9,377.3 Financial Liabilities carried at: Amortized Cost: Debt $ 787.1 $ 838.6 $ 786.9 $ 865.7 (1) Due to the adoption of ASU No. 2016-01, certain classifications are not comparable to the prior year. See Note 2 – “New Accounting Pronouncements”. |
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. June 30, 2018 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 580.5 $ 235.4 $ 345.1 $ — Foreign government 209.5 21.1 188.4 — Municipal 1,037.7 — 1,013.3 24.4 Corporate 4,216.3 — 4,215.5 0.8 Residential mortgage-backed, U.S. agency backed 993.8 — 993.8 — Residential mortgage-backed, non-agency 3.2 — 3.2 — Commercial mortgage-backed 611.6 — 598.3 13.3 Asset-backed 77.3 — 77.3 — Total fixed maturities 7,729.9 256.5 7,434.9 38.5 Equity securities 554.0 552.9 — 1.1 Other investments 128.5 — 124.9 3.6 Total investment assets at fair value $ 8,412.4 $ 809.4 $ 7,559.8 $ 43.2 December 31, 2017 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 511.4 $ 227.6 $ 283.8 $ — Foreign government 242.7 50.1 192.6 — Municipal 1,076.0 — 1,049.2 26.8 Corporate 4,307.5 — 4,306.6 0.9 Residential mortgage-backed, U.S. agency backed 956.4 — 956.4 — Residential mortgage-backed, non-agency 29.6 — 29.6 — Commercial mortgage-backed 596.4 — 582.2 14.2 Asset-backed 59.7 — 59.7 — Total fixed maturities 7,779.7 277.7 7,460.1 41.9 Equity securities 568.1 567.0 — 1.1 Other investments 126.4 — 122.8 3.6 Total investment assets at fair value $ 8,474.2 $ 844.7 $ 7,582.9 $ 46.6 |
Estimated Fair Values of Financial Instruments Not Carried at Fair Value | Limited partnerships measured at fair value using NAV based on an ownership interest in partners’ capital have not been included in the tables above. At June 30, 2018 and December 31, 2017, the fair values of these investments were $158.3 million and $149.4 million, respectively, which are less than 2% of total investment assets. The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value: June 30, 2018 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 244.9 $ 244.9 $ — $ — Other investments 394.4 — 8.8 385.6 Liabilities: Debt $ 838.6 $ — $ 838.6 $ — December 31, 2017 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 376.4 $ 376.4 $ — $ — Equity securities 8.4 — 8.4 — Other investments 368.9 — — 368.9 Liabilities: Debt $ 865.7 $ — $ 865.7 $ — |
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 Total Equity and Other Total Assets Three Months Ended June 30, 2018 Balance April 1, 2018 $ 25.3 $ 0.8 $ 13.5 $ 39.6 $ 4.7 $ 44.3 Total losses: Included in other comprehensive income-net depreciation on available-for-sale securities (0.1 ) — (0.1 ) (0.2 ) — (0.2 ) Sales (0.8 ) — (0.1 ) (0.9 ) — (0.9 ) Balance June 30, 2018 $ 24.4 $ 0.8 $ 13.3 $ 38.5 $ 4.7 $ 43.2 Three Months Ended June 30, 2017 Balance April 1, 2017 $ 30.8 $ 3.9 $ 14.6 $ 49.3 $ 5.6 $ 54.9 Total gains (losses): Included in total net realized and unrealized investment gains — 0.3 — 0.3 — 0.3 Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities 0.2 (0.2 ) 0.1 0.1 — 0.1 Sales (0.9 ) (3.0 ) (0.1 ) (4.0 ) — (4.0 ) Balance June 30, 2017 $ 30.1 $ 1.0 $ 14.6 $ 45.7 $ 5.6 $ 51.3 Fixed Maturities (in millions) Municipal Corporate Commercial mortgage- backed Total Equity and Other Total Assets Six Months Ended June 30, 2018 Balance January 1, 2018 $ 26.8 $ 0.9 $ 14.2 $ 41.9 $ 4.7 $ 46.6 Total gains (losses): Included in total net realized and unrealized investment gains 0.1 — — 0.1 — 0.1 Included in other comprehensive income-net depreciation on available-for-sale securities (0.6 ) — (0.3 ) (0.9 ) — (0.9 ) Sales (1.9 ) (0.1 ) (0.6 ) (2.6 ) — (2.6 ) Balance June 30, 2018 $ 24.4 $ 0.8 $ 13.3 $ 38.5 $ 4.7 $ 43.2 Six Months Ended June 30, 2017 Balance January 1, 2017 $ 31.0 $ 4.2 $ 15.0 $ 50.2 $ 5.6 $ 55.8 Total gains (losses): Included in total net realized and unrealized investment gains — 0.3 — 0.3 — 0.3 Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities 0.4 (0.2 ) 0.1 0.3 — 0.3 Sales (1.3 ) (3.3 ) (0.5 ) (5.1 ) — (5.1 ) Balance June 30, 2017 $ 30.1 $ 1.0 $ 14.6 $ 45.7 $ 5.6 $ 51.3 |
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. June 30, 2018 December 31, 2017 Valuation Significant Fair Range Fair Range (in millions) Technique Unobservable Inputs Value (Wtd Average) Value (Wtd Average) Fixed maturities: Municipal Discounted Discount for: $ 24.4 $ 26.8 cash flow Small issue size Credit stress Above-market coupon 0.7 -6.8% (3.2%) 1.3% (1.3%) 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: 0.8 0.9 cash flow Small issue size Above-market coupon 2.5% (2.5%) 0.3% (0.3%) 2.5% (2.5%) 0.3% (0.3%) Commercial mortgage-backed Discounted Discount for: 13.3 14.2 cash flow Small issue size Above-market coupon Lease structure 1.9 - 3.1% (2.7%) 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 3.6 18.0% (18.0%) 3.6 18.0% (18.0%) cash flow |
Pension and Other Postretirem25
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 2017 2018 2017 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ — $ — $ — Interest cost 5.9 6.5 0.1 0.1 Expected return on plan assets (6.8 ) (6.8 ) — — Recognized net actuarial loss 2.4 3.8 — 0.1 Amortization of prior service cost — — (0.1 ) (0.4 ) Net periodic pension cost (benefit) $ 1.5 $ 3.5 $ — $ (0.2 ) Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Pension Plans Postretirement Plans Service cost - benefits earned during the period $ — $ — $ — $ — Interest cost 11.8 12.9 0.2 0.2 Expected return on plan assets (13.7 ) (13.6 ) — — Recognized net actuarial loss 4.9 7.6 0.1 0.1 Amortization of prior service cost — — (0.2 ) (0.7 ) Net periodic pension cost (benefit) $ 3.0 $ 6.9 $ 0.1 $ (0.4 ) |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Other Comprehensive Income | The following tables provide changes in other comprehensive income. Three Months Ended June 30, 2018 2017 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 (losses) arising during period $ (58.1 ) $ 12.4 $ (45.7 ) $ 41.0 $ (14.5 ) $ 26.5 Amount of realized gains (losses) from sales and other — (3.3 ) (3.3 ) (7.2 ) (0.7 ) (7.9 ) Portion of other-than-temporary impairment losses recognized in earnings (0.1 ) — (0.1 ) 1.8 (0.6 ) 1.2 Net unrealized gains (losses) (58.2 ) 9.1 (49.1 ) 35.6 (15.8 ) 19.8 Pension and postretirement benefits: Net change in net actuarial loss and prior service cost 1.1 (0.2 ) 0.9 3.5 (1.1 ) 2.4 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period (0.6 ) 0.1 (0.5 ) (6.9 ) 2.4 (4.5 ) Other comprehensive income (loss) $ (57.7 ) $ 9.0 $ (48.7 ) $ 32.2 $ (14.5 ) $ 17.7 Six Months Ended June 30, 2018 2017 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 (losses) arising during period $ (211.8 ) $ 44.5 $ (167.3 ) $ 79.0 $ (27.8 ) $ 51.2 Amount of realized gains (losses) from sales and other 0.2 (5.8 ) (5.6 ) (11.3 ) (2.4 ) (13.7 ) Portion of other-than-temporary impairment losses recognized in earnings 0.4 (0.1 ) 0.3 2.0 (0.7 ) 1.3 Net unrealized gains (losses) (211.2 ) 38.6 (172.6 ) 69.7 (30.9 ) 38.8 Pension and postretirement benefits: Net change in net actuarial loss and prior service cost (1.8 ) 0.4 (1.4 ) 7.0 (2.3 ) 4.7 Cumulative foreign currency translation adjustment: Foreign currency translation recognized during the period (1.2 ) 0.2 (1.0 ) 0.9 (0.3 ) 0.6 Other comprehensive income (loss) $ (214.2 ) $ 39.2 $ (175.0 ) $ 77.6 $ (33.5 ) $ 44.1 |
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income were as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 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 $ — $ 7.2 $ (0.2 ) $ 11.3 Net realized gains (losses) from sales and other Net other-than-temporary impairment 0.1 (1.8 ) (0.4 ) (2.0 ) losses on investments recognized in earnings 0.1 5.4 (0.6 ) 9.3 Total before tax 3.3 1.3 5.9 3.1 Tax benefit 3.4 6.7 5.3 12.4 Net of tax Amortization of defined benefit Loss adjustment expenses and other pension and postretirement plans (2.3 ) (3.5 ) (4.8 ) (7.0 ) operating expenses 0.5 1.1 1.0 2.3 Tax benefit (1.8 ) (2.4 ) (3.8 ) (4.7 ) Net of tax Total reclassifications for the period $ 1.6 $ 4.3 $ 1.5 $ 7.7 Benefit to income, net of tax |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Operating revenues: Commercial Lines $ 681.7 $ 634.5 $ 1,358.3 $ 1,265.0 Personal Lines 444.5 411.5 879.4 813.3 Chaucer 228.8 211.2 468.2 435.9 Other 4.1 3.0 7.5 5.0 Total 1,359.1 1,260.2 2,713.4 2,519.2 Net realized and unrealized investment gains (losses) 3.7 5.9 (19.7 ) 7.8 Total revenues $ 1,362.8 $ 1,266.1 $ 2,693.7 $ 2,527.0 Operating income (loss) before interest expense and income taxes: Commercial Lines: Underwriting income (loss) $ 37.7 $ 2.3 $ 54.1 $ (0.4 ) Net investment income 44.8 41.3 90.1 81.6 Other expense (0.5 ) (0.4 ) (0.7 ) (0.6 ) Commercial Lines operating income 82.0 43.2 143.5 80.6 Personal Lines: Underwriting income 8.0 29.5 22.7 21.1 Net investment income 18.1 17.4 36.5 34.5 Other income 1.2 1.0 2.5 2.2 Personal Lines operating income 27.3 47.9 61.7 57.8 Chaucer: Underwriting income 9.3 18.0 15.5 31.8 Net investment income 12.5 11.3 28.9 23.7 Other income (expense) 0.1 0.4 0.4 (0.9 ) Chaucer operating income 21.9 29.7 44.8 54.6 Other: Underwriting loss (1.4 ) (0.9 ) (2.7 ) (1.8 ) Net investment income 3.3 2.3 6.1 3.6 Other expense (3.3 ) (3.3 ) (7.0 ) (6.8 ) Other operating (loss) gain (1.4 ) (1.9 ) (3.6 ) 5.0 Operating income before interest expense and income taxes 129.8 118.9 246.4 188.0 Interest on debt (11.6 ) (12.2 ) (24.0 ) (24.2 ) Operating income before income taxes 118.2 106.7 222.4 163.8 Non-operating income items: Net realized and unrealized investment gains (losses) 3.7 5.9 (19.7 ) 7.8 Other non-operating items (2.0 ) (1.6 ) (2.2 ) (1.6 ) Income before income taxes $ 119.9 $ 111.0 $ 200.5 $ 170.0 |
Identifiable Assets by Business Segment | The following table provides identifiable assets for the Company’s business segments and discontinued operations: June 30, 2018 December 31, 2017 (in millions) Identifiable Assets U.S. Companies $ 11,049.8 $ 10,909.2 Chaucer 4,251.2 4,472.4 Discontinued operations 102.6 88.0 Total $ 15,403.6 $ 15,469.6 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, (in millions) 2018 2017 2018 2017 Stock-based compensation expense $ 4.6 $ 4.1 $ 7.6 $ 7.3 Tax benefit (1.0 ) (1.4 ) (1.6 ) (2.5 ) Stock-based compensation expense, net of taxes $ 3.6 $ 2.7 $ 6.0 $ 4.8 |
Summary of Stock Option Plan Activity | Information on the Company’s stock option activity for the six months ended June 30, 2018 and 2017 is summarized below. Six Months Ended June 30, 2018 2017 (in whole shares and dollars) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of period 1,062,177 $ 75.53 1,396,152 $ 68.63 Granted 294,603 110.68 460,610 90.85 Exercised (149,043 ) 71.74 (180,940 ) 59.50 Forfeited or cancelled (50,491 ) 88.48 (16,567 ) 80.40 Outstanding, end of period 1,157,246 84.40 1,659,255 75.68 |
Summary of Restricted Stock Activity | The following tables summarize activity information about employee restricted stock units: Six Months Ended June 30, 2018 2017 (in whole shares and dollars) Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Time-based restricted stock units: Outstanding, beginning of period 298,528 $ 83.45 269,063 $ 73.91 Granted 143,565 111.21 128,235 90.51 Vested (71,556 ) 72.56 (70,590 ) 59.29 Forfeited (16,890 ) 89.89 (13,830 ) 84.30 Outstanding, end of period 353,647 96.61 312,878 83.55 Performance-based and market-based restricted stock units: Outstanding, beginning of period 102,586 $ 81.21 115,057 $ 78.82 Granted 34,280 117.65 60,101 79.48 Vested (14,032 ) 70.24 (17,642 ) 58.16 Forfeited (7,625 ) 81.91 (2,180 ) 95.36 Outstanding, end of period 115,209 93.34 155,336 81.19 |
Earnings Per Share and Shareh29
Earnings Per Share and Shareholders' Equity Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, June 30, (in millions, except per share data) 2018 2017 2018 2017 Basic shares used in the calculation of earnings per share 42.5 42.5 42.5 42.5 Dilutive effect of securities: Employee stock options 0.3 0.2 0.3 0.2 Non-vested stock grants 0.3 0.1 0.3 0.2 Diluted shares used in the calculation of earnings per share 43.1 42.8 43.1 42.9 Per share effect of dilutive securities on income from continuing operations and net income $ (0.03 ) $ (0.02 ) $ (0.05 ) $ (0.03 ) |
Liabilities For Outstanding C30
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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. Six Months Ended June 30, (in millions) 2018 2017 Gross loss and LAE reserves, beginning of period $ 7,745.0 $ 6,949.4 Reinsurance recoverable on unpaid losses 2,608.4 2,274.8 Net loss and LAE reserves, beginning of period 5,136.6 4,674.6 Net incurred losses and LAE in respect of losses occurring in: Current year 1,603.5 1,516.0 Prior years (34.1 ) (24.5 ) Total incurred losses and LAE 1,569.4 1,491.5 Net payments of losses and LAE in respect of losses occurring in: Current year 504.9 491.2 Prior years 944.1 799.7 Total payments 1,449.0 1,290.9 Effect of foreign exchange rate changes (14.1 ) 25.8 Net reserve for losses and LAE, end of period 5,242.9 4,901.0 Reinsurance recoverable on unpaid losses 2,263.5 2,261.4 Gross reserve for losses and LAE, end of period $ 7,506.4 $ 7,162.4 |
Basis of Presentation and Pri31
Basis of Presentation and Principles of Consolidation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Total other comprehensive (loss) income, net of tax | $ (48.7) | $ 17.7 | $ (175) | $ 44.1 | |
Comprehensive income (loss) | $ 50.6 | $ 96.1 | (8) | $ 167.7 | |
Accounting Standards Update 2016-01 and 2018-02 [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Total other comprehensive (loss) income, net of tax | $ (228) | (175) | |||
Comprehensive income (loss) | (160.3) | $ (8) | |||
Adoption of Accounting Standards Update | $ 101.7 |
New Accounting Pronouncements32
New Accounting Pronouncements (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Accounting Standards Update 2018-02 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Cumulative effect on retained earnings, net of tax | $ 6.5 |
Accounting Standards Update 2016-01 And 2018-03 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Cumulative effect adjustment benefit to retained earnings | 97.8 |
Cumulative effect on retained earnings, net of tax | 95.2 |
Gains on partnership investments at NAV | $ 2.6 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 21.00% | 35.00% | |
Federal income tax expense | $ 25.7 | $ 44.3 | |
Foreign income tax expense (benefit) | $ (7.8) | $ 2.1 |
Investments (Schedule of Availa
Investments (Schedule of Available-for-sale Securities Reconciliation) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | $ 7,847.8 | $ 7,688.8 |
Fair Value | 7,729.9 | 7,779.7 |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 1,035.3 | 1,053.3 |
Gross Unrealized Gains | 17.9 | 29.8 |
Gross Unrealized Loss | 15.5 | 7.1 |
Fair Value | 1,037.7 | 1,076 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 7,847.8 | 7,688.8 |
Gross Unrealized Gains | 63.4 | 145.2 |
Gross Unrealized Loss | 181.3 | 54.3 |
Fair Value | 7,729.9 | 7,779.7 |
OTTI Unrealized Losses | 6.6 | 6.9 |
US Treasury and Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 595.1 | 513.6 |
Gross Unrealized Gains | 1.7 | 3.4 |
Gross Unrealized Loss | 16.3 | 5.6 |
Fair Value | 580.5 | 511.4 |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 209.6 | 240.8 |
Gross Unrealized Gains | 2.1 | 3.2 |
Gross Unrealized Loss | 2.2 | 1.3 |
Fair Value | 209.5 | 242.7 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 4,278.7 | 4,238.9 |
Gross Unrealized Gains | 38.9 | 95 |
Gross Unrealized Loss | 101.3 | 26.4 |
Fair Value | 4,216.3 | 4,307.5 |
OTTI Unrealized Losses | 6.6 | 6.9 |
Residential Mortgage Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 1,026.7 | 990.6 |
Gross Unrealized Gains | 1.8 | 6.5 |
Gross Unrealized Loss | 31.5 | 11.1 |
Fair Value | 997 | 986 |
Commercial Mortgage Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 624 | 591.7 |
Gross Unrealized Gains | 1 | 7.2 |
Gross Unrealized Loss | 13.4 | 2.5 |
Fair Value | 611.6 | 596.4 |
Asset-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost or Cost | 78.4 | 59.9 |
Gross Unrealized Gains | 0.1 | |
Gross Unrealized Loss | 1.1 | 0.3 |
Fair Value | $ 77.3 | $ 59.7 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | Jan. 02, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Schedule Of Investments [Line Items] | ||||||
Net unrealized gains on impaired securities | $ 9.1 | $ 9.1 | $ 11.5 | |||
Restricted assets, fixed maturities | 596.4 | 596.4 | ||||
Restricted assets, cash and cash equivalents | 7.1 | 7.1 | ||||
Other-than-temporary impairments on fixed maturities | 1.9 | $ 2 | 2.9 | $ 3.4 | ||
Other-than-temporary impairments on fixed maturities recorded as unrealized losses in AOCI | 0.2 | 0.3 | 0.2 | |||
Other-than-temporary impairments on fixed maturities recognized in earnings | 1.9 | 1.8 | 2.6 | 3.2 | ||
Equity securities, at fair value | 554 | 554 | 576.5 | |||
Equity securities, cost | $ 433.7 | |||||
Net unrealized gains (losses) recognized during the period on equity securities still held | $ 7.3 | $ (16.2) | ||||
Proceeds from the sale of equities | 32.7 | 46.3 | ||||
Retained Earnings [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Net realized gains from sales of equity securities | 3.4 | 5.8 | ||||
Accumulated Other Comprehensive Income (Loss), net of tax [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Net unrealized gains (losses) recognized during the period on equity securities still held | $ 7.9 | $ 29.4 | ||||
Equity Securities [Member] | Retained Earnings [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Cumulative effect on retained earnings, before tax | $ 142.8 |
Investments (Investments Classi
Investments (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 408.2 | |
Due after one year through five years, Amortized Cost | 2,789.5 | |
Due after five years through ten years, Amortized Cost | 2,589.6 | |
Due after ten years, Amortized Cost | 331.4 | |
Gross fixed maturities, Amortized Cost | 6,118.7 | |
Mortgage-backed and asset-backed securities, Amortized Cost | 1,729.1 | |
Amortized Cost or Cost | 7,847.8 | $ 7,688.8 |
Due in one year or less, Fair Value | 409.7 | |
Due after one year through five years, Fair Value | 2,784.6 | |
Due after five years through ten years, Fair Value | 2,515.2 | |
Due after ten years, Fair Value | 334.5 | |
Gross fixed maturities, Fair Value | 6,044 | |
Mortgage-backed and asset-backed securities, Fair Value | 1,685.9 | |
Fixed maturities, Fair Value | $ 7,729.9 | $ 7,779.7 |
Investments (Schedule of Unreal
Investments (Schedule of Unrealized Loss on Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | $ 101.5 | $ 13.9 |
12 months or less, Fair Value | 4,229.1 | 1,885.3 |
Greater than 12 months, Gross Unrealized Losses | 68.8 | 31.9 |
Greater than 12 months, Fair Value | 1,172.6 | 1,168.4 |
Total, Gross Unrealized Losses | 170.3 | 45.8 |
Total, Fair Value | 5,401.7 | 3,053.7 |
Below Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 4.6 | |
12 months or less, Fair Value | 151.9 | |
Greater than 12 months, Gross Unrealized Losses | 6.4 | |
Greater than 12 months, Fair Value | 38.1 | |
Total, Gross Unrealized Losses | 11 | |
Total, Fair Value | 190 | |
US Treasury and Government Agencies [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 10 | 2.1 |
12 months or less, Fair Value | 393.6 | 282.1 |
Greater than 12 months, Gross Unrealized Losses | 6.3 | 3.5 |
Greater than 12 months, Fair Value | 103.2 | 103.1 |
Total, Gross Unrealized Losses | 16.3 | 5.6 |
Total, Fair Value | 496.8 | 385.2 |
Foreign Government [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 1.3 | 0.9 |
12 months or less, Fair Value | 86.6 | 99.4 |
Greater than 12 months, Gross Unrealized Losses | 0.9 | 0.4 |
Greater than 12 months, Fair Value | 52.5 | 22.8 |
Total, Gross Unrealized Losses | 2.2 | 1.3 |
Total, Fair Value | 139.1 | 122.2 |
Municipal [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 8.5 | 2.1 |
12 months or less, Fair Value | 390.7 | 257.5 |
Greater than 12 months, Gross Unrealized Losses | 7 | 5 |
Greater than 12 months, Fair Value | 126.6 | 133.1 |
Total, Gross Unrealized Losses | 15.5 | 7.1 |
Total, Fair Value | 517.3 | 390.6 |
Municipal [Member] | Below Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Fair Value | 0.9 | |
Total, Fair Value | 0.9 | |
Corporate [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 57.2 | 5.6 |
12 months or less, Fair Value | 2,343.5 | 799.6 |
Greater than 12 months, Gross Unrealized Losses | 33.1 | 12.3 |
Greater than 12 months, Fair Value | 480.1 | 481.3 |
Total, Gross Unrealized Losses | 90.3 | 17.9 |
Total, Fair Value | 2,823.6 | 1,280.9 |
Corporate [Member] | Below Investment Grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 4.6 | 1.7 |
12 months or less, Fair Value | 151 | 53.2 |
Greater than 12 months, Gross Unrealized Losses | 6.4 | 6.8 |
Greater than 12 months, Fair Value | 38.1 | 43.5 |
Total, Gross Unrealized Losses | 11 | 8.5 |
Total, Fair Value | 189.1 | 96.7 |
Residential Mortgage Backed [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 13.1 | 2 |
12 months or less, Fair Value | 512.5 | 272.9 |
Greater than 12 months, Gross Unrealized Losses | 18.4 | 9.1 |
Greater than 12 months, Fair Value | 347.4 | 362.4 |
Total, Gross Unrealized Losses | 31.5 | 11.1 |
Total, Fair Value | 859.9 | 635.3 |
Commercial Mortgage Backed [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 10.4 | 0.9 |
12 months or less, Fair Value | 445.6 | 139.3 |
Greater than 12 months, Gross Unrealized Losses | 3 | 1.6 |
Greater than 12 months, Fair Value | 61.2 | 63.2 |
Total, Gross Unrealized Losses | 13.4 | 2.5 |
Total, Fair Value | 506.8 | 202.5 |
Asset-backed [Member] | Investment grade [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 1 | 0.3 |
12 months or less, Fair Value | 56.6 | 34.5 |
Greater than 12 months, Gross Unrealized Losses | 0.1 | |
Greater than 12 months, Fair Value | 1.6 | 2.5 |
Total, Gross Unrealized Losses | 1.1 | 0.3 |
Total, Fair Value | 58.2 | 37 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or less, Gross Unrealized Losses | 106.1 | 15.6 |
12 months or less, Fair Value | 4,381 | 1,938.5 |
Greater than 12 months, Gross Unrealized Losses | 75.2 | 38.7 |
Greater than 12 months, Fair Value | 1,210.7 | 1,211.9 |
Total, Gross Unrealized Losses | 181.3 | 54.3 |
Total, Fair Value | $ 5,591.7 | $ 3,150.4 |
Investments (Schedule of Realiz
Investments (Schedule of Realized Gain (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Gain (Loss) on Investments [Line Items] | ||||
Proceeds from disposals and maturities of fixed maturities | $ 637.8 | $ 578.8 | ||
Debt Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Proceeds from disposals and maturities of fixed maturities | $ 164.6 | $ 132.5 | 292.4 | 230.1 |
Gross Gains | 1.7 | 3.1 | 2.3 | 5.2 |
Gross Losses | $ 2.5 | $ 0.4 | $ 4.8 | $ 1.4 |
Investments (Rollforward of Cum
Investments (Rollforward of Cumulative Amounts Related to Credit Loss Portion of OTTI Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Credit losses at beginning of period | $ 3.3 | $ 9.9 | $ 3.9 | $ 10 |
Credit losses for which an OTTI was not previously recognized | 0.7 | 0.2 | 0.9 | 0.2 |
Additional credit losses on securities for which an OTTI was previously recognized | 0.1 | 0.1 | 0.1 | 0.1 |
Reductions for securities sold, matured or called | (0.1) | (0.6) | (0.9) | (0.7) |
Credit losses at end of period | $ 4 | $ 9.6 | $ 4 | $ 9.6 |
Investments (Schedule of Pre-ta
Investments (Schedule of Pre-tax Realized and Unrealized Gains (Losses) on Equity Securities Recognized in Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Net gains (losses) recognized during the period | $ 6 | $ (17) |
Less: net losses recognized on equity securities sold during the period | (1.3) | (0.8) |
Net unrealized gains (losses) recognized during the period on equity securities still held | $ 7.3 | $ (16.2) |
Fair Value (Fair Value of Finan
Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 244.9 | $ 376.4 | |
Financial Assets carried at | [1] | 9,208.6 | 9,371.8 |
Carrying Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through AOCI [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 3.6 | |
Carrying Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through AOCI [Member] | Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 7,729.9 | 7,779.7 |
Carrying Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through AOCI [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 576.5 | |
Carrying Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through Net Income [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 286.8 | 122.8 |
Carrying Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through Net Income [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 554 | |
Carrying Value [Member] | Cost Approach Valuation Technique [Member] | Amortized Cost/Cost [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | [1] | 244.9 | 376.4 |
Carrying Value [Member] | Cost Approach Valuation Technique [Member] | Amortized Cost/Cost [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 393 | 512.8 |
Carrying Value [Member] | Cost Approach Valuation Technique [Member] | Amortized Cost [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 787.1 | 786.9 | |
Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 244.9 | 376.4 | |
Financial Assets carried at | [1] | 9,210 | 9,377.3 |
Debt | 838.6 | 865.7 | |
Estimated Fair Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through AOCI [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 3.6 | |
Estimated Fair Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through AOCI [Member] | Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 7,729.9 | 7,779.7 |
Estimated Fair Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through AOCI [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 576.5 | |
Estimated Fair Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through Net Income [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 286.8 | 122.8 |
Estimated Fair Value [Member] | Income Approach Valuation Technique [Member] | Fair Value Through Net Income [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 554 | |
Estimated Fair Value [Member] | Cost Approach Valuation Technique [Member] | Amortized Cost/Cost [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | [1] | 244.9 | 376.4 |
Estimated Fair Value [Member] | Cost Approach Valuation Technique [Member] | Amortized Cost/Cost [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of investments | [1] | 394.4 | 518.3 |
Estimated Fair Value [Member] | Cost Approach Valuation Technique [Member] | Amortized Cost [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | $ 838.6 | $ 865.7 | |
[1] | Due to the adoption of ASU No. 2016-01, certain classifications are not comparable to the prior year. See Note 2 – “New Accounting Pronouncements”. |
Fair Value (Fair Value, Assets
Fair Value (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 7,729.9 | $ 7,779.7 |
Equity securities | 554 | 576.5 |
Other investments | 736.8 | 685.5 |
Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,037.7 | 1,076 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,729.9 | 7,779.7 |
Equity securities | 554 | 568.1 |
Other investments | 128.5 | 126.4 |
Total investment assets at fair value | 8,412.4 | 8,474.2 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 256.5 | 277.7 |
Equity securities | 552.9 | 567 |
Total investment assets at fair value | 809.4 | 844.7 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,434.9 | 7,460.1 |
Other investments | 124.9 | 122.8 |
Total investment assets at fair value | 7,559.8 | 7,582.9 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 38.5 | 41.9 |
Equity securities | 1.1 | 1.1 |
Other investments | 3.6 | 3.6 |
Total investment assets at fair value | 43.2 | 46.6 |
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] | ||
Fair Value | 580.5 | 511.4 |
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] | ||
Fair Value | 235.4 | 227.6 |
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] | ||
Fair Value | 345.1 | 283.8 |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 209.5 | 242.7 |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 21.1 | 50.1 |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 188.4 | 192.6 |
Fair Value, Measurements, Recurring [Member] | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,037.7 | 1,076 |
Fair Value, Measurements, Recurring [Member] | Municipal [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,013.3 | 1,049.2 |
Fair Value, Measurements, Recurring [Member] | Municipal [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24.4 | 26.8 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,216.3 | 4,307.5 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,215.5 | 4,306.6 |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0.8 | 0.9 |
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] | ||
Fair Value | 993.8 | 956.4 |
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] | ||
Fair Value | 993.8 | 956.4 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3.2 | 29.6 |
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] | ||
Fair Value | 3.2 | 29.6 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 611.6 | 596.4 |
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] | ||
Fair Value | 598.3 | 582.2 |
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] | ||
Fair Value | 13.3 | 14.2 |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 77.3 | 59.7 |
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] | ||
Fair Value | $ 77.3 | $ 59.7 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value Measurements [Line Items] | |||||
Investments measured at net asset value based on an ownership interest in partners' | 2.00% | 2.00% | 2.00% | ||
Fair value of assets , transfer into Level 3 | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair value of assets, transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Fair value of liabilities , transfer into Level 3 | 0 | 0 | 0 | 0 | |
Fair value of liabilities , transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Transfer between Level 1 and Level 2 | 0 | 0 | 0 | 0 | |
Fair Value Measured Using NAV [Member] | Limited Partnerships Interest [Member] | |||||
Fair Value Measurements [Line Items] | |||||
Investments measured at fair value using net asset value | 158,300,000 | 158,300,000 | $ 149,400,000 | ||
Level 3 [Member] | |||||
Fair Value Measurements [Line Items] | |||||
Liabilities held | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value (Estimated Fair Valu
Fair Value (Estimated Fair Values of Financial Instruments Not Carried at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | $ 554 | $ 576.5 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 244.9 | 376.4 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 244.9 | 376.4 |
Equity securities | 8.4 | |
Other investments | 394.4 | 368.9 |
Debt | 838.6 | 865.7 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 244.9 | 376.4 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 8.4 | |
Other investments | 8.8 | |
Debt | 838.6 | 865.7 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | $ 385.6 | $ 368.9 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | $ 44.3 | $ 54.9 | $ 46.6 | $ 55.8 |
Included in total net realized and unrealized investment gains | 0.3 | 0.1 | 0.3 | |
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | (0.2) | 0.1 | (0.9) | 0.3 |
Sales | (0.9) | (4) | (2.6) | (5.1) |
Ending Balance | 43.2 | 51.3 | 43.2 | 51.3 |
Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 25.3 | 30.8 | 26.8 | 31 |
Included in total net realized and unrealized investment gains | 0.1 | |||
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | (0.1) | 0.2 | (0.6) | 0.4 |
Sales | (0.8) | (0.9) | (1.9) | (1.3) |
Ending Balance | 24.4 | 30.1 | 24.4 | 30.1 |
Corporate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 0.8 | 3.9 | 0.9 | 4.2 |
Included in total net realized and unrealized investment gains | 0.3 | 0.3 | ||
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | (0.2) | (0.2) | ||
Sales | (3) | (0.1) | (3.3) | |
Ending Balance | 0.8 | 1 | 0.8 | 1 |
Commercial Mortgage Backed [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 13.5 | 14.6 | 14.2 | 15 |
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | (0.1) | 0.1 | (0.3) | 0.1 |
Sales | (0.1) | (0.1) | (0.6) | (0.5) |
Ending Balance | 13.3 | 14.6 | 13.3 | 14.6 |
Fixed Maturities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 39.6 | 49.3 | 41.9 | 50.2 |
Included in total net realized and unrealized investment gains | 0.3 | 0.1 | 0.3 | |
Included in other comprehensive income-net appreciation (depreciation) on available-for-sale securities | (0.2) | 0.1 | (0.9) | 0.3 |
Sales | (0.9) | (4) | (2.6) | (5.1) |
Ending Balance | 38.5 | 45.7 | 38.5 | 45.7 |
Equity Securities and Other Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning Balance | 4.7 | 5.6 | 4.7 | 5.6 |
Ending Balance | $ 4.7 | $ 5.6 | $ 4.7 | $ 5.6 |
Fair Value (Schedule of Additio
Fair Value (Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value [Line Items] | ||||||
Fair Value | $ 43.2 | $ 46.6 | $ 44.3 | $ 51.3 | $ 54.9 | $ 55.8 |
Municipal [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | 24.4 | 26.8 | 25.3 | 30.1 | 30.8 | 31 |
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 24.4 | $ 26.8 | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Credit stress | 1.30% | |||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 0.70% | 0.70% | ||||
Credit stress | 0.90% | |||||
Above-market coupon | 0.30% | 0.30% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 6.80% | 6.80% | ||||
Credit stress | 1.50% | |||||
Above-market coupon | 0.50% | 0.50% | ||||
Municipal [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 3.20% | 3.30% | ||||
Credit stress | 1.30% | 1.20% | ||||
Above-market coupon | 0.40% | 0.40% | ||||
Corporate [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 0.8 | $ 0.9 | 0.8 | 1 | 3.9 | 4.2 |
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 0.8 | $ 0.9 | ||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 2.50% | 2.50% | ||||
Above-market coupon | 0.30% | 0.30% | ||||
Corporate [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 2.50% | 2.50% | ||||
Above-market coupon | 0.30% | 0.30% | ||||
Commercial Mortgage Backed [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 13.3 | $ 14.2 | $ 13.5 | $ 14.6 | $ 14.6 | $ 15 |
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 13.3 | $ 14.2 | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Above-market coupon | 0.50% | 0.50% | ||||
Lease structure | 0.30% | 0.30% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 1.90% | 1.90% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 3.10% | 3.10% | ||||
Commercial Mortgage Backed [Member] | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Small issue size | 2.70% | 2.60% | ||||
Above-market coupon | 0.50% | 0.50% | ||||
Lease structure | 0.30% | 0.30% | ||||
Equity Securities [Member] | Market comparables [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 1.1 | $ 1.1 | ||||
Fair value measurement market multiples | 1 | 1 | ||||
Equity Securities [Member] | Market comparables [Member] | Level 3 [Member] | Weighted Average [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair value measurement market multiples | 1 | 1 | ||||
Other securities | Discounted cash flow [Member] | Level 3 [Member] | ||||||
Fair Value [Line Items] | ||||||
Fair Value | $ 3.6 | $ 3.6 | ||||
Other securities | Discounted cash flow [Member] | Level 3 [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.180 | 0.180 | ||||
Other securities | Discounted cash flow [Member] | Level 3 [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value [Line Items] | ||||||
Range | 0.180 | 0.180 |
Pension and Other Postretirem47
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | $ 5.9 | $ 6.5 | $ 11.8 | $ 12.9 |
Expected return on plan assets | (6.8) | (6.8) | (13.7) | (13.6) |
Recognized net actuarial loss | 2.4 | 3.8 | 4.9 | 7.6 |
Net periodic pension cost (benefit) | 1.5 | 3.5 | 3 | 6.9 |
Postretirement Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Recognized net actuarial loss | 0.1 | 0.1 | 0.1 | |
Amortization of prior service cost | $ (0.1) | (0.4) | (0.2) | (0.7) |
Net periodic pension cost (benefit) | $ (0.2) | $ 0.1 | $ (0.4) |
Other Comprehensive Income (Cha
Other Comprehensive Income (Changes in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Unrealized gains (losses) arising during period, Pre-Tax | $ (58.1) | $ 41 | $ (211.8) | $ 79 |
Amount of realized gains (losses) from sales and other, Pre-Tax | (7.2) | 0.2 | (11.3) | |
Portion of other-than-temporary impairment losses recognized in earnings, Pre-Tax | (0.1) | 1.8 | 0.4 | 2 |
Net unrealized gains (losses), Pre-Tax | (58.2) | 35.6 | (211.2) | 69.7 |
Net change in net actuarial loss and prior service cost, Pre-Tax | 1.1 | 3.5 | (1.8) | 7 |
Foreign currency translation recognized during the period, Pre-Tax | (0.6) | (6.9) | (1.2) | 0.9 |
Other comprehensive (loss) income, Pre-Tax | (57.7) | 32.2 | (214.2) | 77.6 |
Unrealized gains (losses) arising during period, Tax Benefit (Expense) | 12.4 | (14.5) | 44.5 | (27.8) |
Amount of realized gains (losses) from sales and other, Tax Benefit (Expense) | (3.3) | (0.7) | (5.8) | (2.4) |
Portion of other-than-temporary impairment losses recognized in earnings, Tax Benefit (Expense) | (0.6) | (0.1) | (0.7) | |
Net unrealized gains, Tax Benefit (Expense) | 9.1 | (15.8) | 38.6 | (30.9) |
Net change in net actuarial loss and prior service cost, Tax Benefit (Expense) | (0.2) | (1.1) | 0.4 | (2.3) |
Foreign currency translation recognized during the period, Tax Benefit (Expense) | 0.1 | 2.4 | 0.2 | (0.3) |
Other comprehensive (loss) income, Tax Benefit (Expense) | 9 | (14.5) | 39.2 | (33.5) |
Unrealized gains (losses) arising during period, Net of Tax | (45.7) | 26.5 | (167.3) | 51.2 |
Amount of realized gains (losses) from sales and other, Net of Tax | (3.3) | (7.9) | (5.6) | (13.7) |
Portion of other-than-temporary impairment losses recognized in earnings, Net of Tax | (0.1) | 1.2 | 0.3 | 1.3 |
Total available-for-sale securities | (49.1) | 19.8 | (172.6) | 38.8 |
Net change in net actuarial loss and prior service cost, Net of Tax | 0.9 | 2.4 | (1.4) | 4.7 |
Foreign currency translation recognized during the period, Net of Tax | (0.5) | (4.5) | (1) | 0.6 |
Total other comprehensive (loss) income, net of tax | $ (48.7) | $ 17.7 | $ (175) | $ 44.1 |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains (losses) from sales and other | $ (0.4) | $ 7.7 | $ (0.1) | $ 11 |
Net other–than–temporary impairment losses on investments recognized in earnings | (1.9) | (1.8) | (2.6) | (3.2) |
Income before income taxes | 119.9 | 111 | 200.5 | 170 |
Loss adjustment expenses and other operating expenses | (1,242.9) | (1,155.1) | (2,493.2) | (2,357) |
Tax benefit | (20.7) | (32.6) | (33.5) | (46.4) |
Net of tax | 99.3 | 78.4 | 167 | 123.6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax | 1.6 | 4.3 | 1.5 | 7.7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Unrealized Appreciation (Depreciation) on Investments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains (losses) from sales and other | 7.2 | (0.2) | 11.3 | |
Net other–than–temporary impairment losses on investments recognized in earnings | 0.1 | (1.8) | (0.4) | (2) |
Income before income taxes | 0.1 | 5.4 | (0.6) | 9.3 |
Tax benefit | 3.3 | 1.3 | 5.9 | 3.1 |
Net of tax | 3.4 | 6.7 | 5.3 | 12.4 |
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 | (2.3) | (3.5) | (4.8) | (7) |
Tax benefit | 0.5 | 1.1 | 1 | 2.3 |
Net of tax | $ (1.8) | $ (2.4) | $ (3.8) | $ (4.7) |
Other Comprehensive Income (Nar
Other Comprehensive Income (Narrative) (Details) - Defined Benefit Pension and Postretirement Plans [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
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 | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | |
Segment Reporting [Abstract] | ||||
Operating segments | segment | 4 | |||
Net foreign exchange gains (losses) | $ | $ 2 | $ (3) | $ 1 | $ (4) |
Segment Information (Financial
Segment Information (Financial Information with Respect to Business Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,359.1 | $ 1,260.2 | $ 2,713.4 | $ 2,519.2 |
Net realized and unrealized investment gains (losses) | 3.7 | 5.9 | (19.7) | 7.8 |
Total revenues | 1,362.8 | 1,266.1 | 2,693.7 | 2,527 |
Net investment income | 78.7 | 72.3 | 161.6 | 143.4 |
Operating income (loss) before interest expense and income taxes | 129.8 | 118.9 | 246.4 | 188 |
Interest on debt | (11.6) | (12.2) | (24) | (24.2) |
Operating income before income taxes | 118.2 | 106.7 | 222.4 | 163.8 |
Other non-operating items | (2) | (1.6) | (2.2) | (1.6) |
Income before income taxes | 119.9 | 111 | 200.5 | 170 |
Commercial Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 681.7 | 634.5 | 1,358.3 | 1,265 |
Underwriting income (loss) | 37.7 | 2.3 | 54.1 | (0.4) |
Net investment income | 44.8 | 41.3 | 90.1 | 81.6 |
Other income (expense) | (0.5) | (0.4) | (0.7) | (0.6) |
Operating income (loss) before interest expense and income taxes | 82 | 43.2 | 143.5 | 80.6 |
Personal Lines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 444.5 | 411.5 | 879.4 | 813.3 |
Underwriting income (loss) | 8 | 29.5 | 22.7 | 21.1 |
Net investment income | 18.1 | 17.4 | 36.5 | 34.5 |
Other income (expense) | 1.2 | 1 | 2.5 | 2.2 |
Operating income (loss) before interest expense and income taxes | 27.3 | 47.9 | 61.7 | 57.8 |
Chaucer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 228.8 | 211.2 | 468.2 | 435.9 |
Underwriting income (loss) | 9.3 | 18 | 15.5 | 31.8 |
Net investment income | 12.5 | 11.3 | 28.9 | 23.7 |
Other income (expense) | 0.1 | 0.4 | 0.4 | (0.9) |
Operating income (loss) before interest expense and income taxes | 21.9 | 29.7 | 44.8 | 54.6 |
Other (including eliminations) [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 4.1 | 3 | 7.5 | 5 |
Underwriting income (loss) | (1.4) | (0.9) | (2.7) | (1.8) |
Net investment income | 3.3 | 2.3 | 6.1 | 3.6 |
Other expense | (3.3) | (3.3) | (7) | (6.8) |
Operating income (loss) before interest expense and income taxes | $ (1.4) | $ (1.9) | $ (3.6) | $ 5 |
Segment Information (Identifiab
Segment Information (Identifiable Assets by Business Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 15,403.6 | $ 15,469.6 |
Discontinued operations | 102.6 | 88 |
U.S. Companies [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 11,049.8 | 10,909.2 |
Chaucer [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 4,251.2 | $ 4,472.4 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Market-based awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Shares | 30,905 | 56,571 |
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 | 3,115 | 5,881 |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Shares | 0 | 0 |
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 | 4,075,328 | |
ESPP Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 2,378,832 | |
SIP Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 680,810 |
Stock-based Compensation (Compe
Stock-based Compensation (Compensation Cost and Related Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Stock-based compensation expense | $ 4.6 | $ 4.1 | $ 7.6 | $ 7.3 |
Tax benefit | (1) | (1.4) | (1.6) | (2.5) |
Stock-based compensation expense, net of taxes | $ 3.6 | $ 2.7 | $ 6 | $ 4.8 |
Stock-based Compensation (Summa
Stock-based Compensation (Summary of Stock Option Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Outstanding, beginning of period, Shares | 1,062,177 | 1,396,152 |
Granted, Shares | 294,603 | 460,610 |
Exercised, Shares | (149,043) | (180,940) |
Forfeited or cancelled, Shares | (50,491) | (16,567) |
Outstanding, end of period, Shares | 1,157,246 | 1,659,255 |
Outstanding, beginning of period, Weighted Average Exercise Price | $ 75.53 | $ 68.63 |
Granted, Weighted Average Exercise Price | 110.68 | 90.85 |
Exercised, Weighted Average Exercise Price | 71.74 | 59.50 |
Forfeited or cancelled, Weighted Average Exercise Price | 88.48 | 80.40 |
Outstanding, end of period, Weighted Average Exercise Price | $ 84.40 | $ 75.68 |
Stock-based Compensation (Sum57
Stock-based Compensation (Summary of Restricted Stock Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of period, Shares | 298,528 | 269,063 |
Granted, Shares | 143,565 | 128,235 |
Vested, Shares | (71,556) | (70,590) |
Forfeited, Shares | (16,890) | (13,830) |
Outstanding, end of period, Shares | 353,647 | 312,878 |
Outstanding, beginning of period, Weighted Average Grant Date Fair Value | $ 83.45 | $ 73.91 |
Granted, Weighted Average Grant Date Fair Value | 111.21 | 90.51 |
Vested, Weighted Average Grant Date Fair Value | 72.56 | 59.29 |
Forfeited, Weighted Average Grant Date Fair Value | 89.89 | 84.30 |
Outstanding, end of period, Weighted Average Grant Date Fair Value | $ 96.61 | $ 83.55 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of period, Shares | 102,586 | 115,057 |
Granted, Shares | 34,280 | 60,101 |
Vested, Shares | (14,032) | (17,642) |
Forfeited, Shares | (7,625) | (2,180) |
Outstanding, end of period, Shares | 115,209 | 155,336 |
Outstanding, beginning of period, Weighted Average Grant Date Fair Value | $ 81.21 | $ 78.82 |
Granted, Weighted Average Grant Date Fair Value | 117.65 | 79.48 |
Vested, Weighted Average Grant Date Fair Value | 70.24 | 58.16 |
Forfeited, Weighted Average Grant Date Fair Value | 81.91 | 95.36 |
Outstanding, end of period, Weighted Average Grant Date Fair Value | $ 93.34 | $ 81.19 |
Earnings Per Share and Shareh58
Earnings Per Share and Shareholders' Equity Transactions (Information Regarding Basic and Diluted Earnings Per Share) (Details) - $ / shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Basic shares used in the calculation of earnings per share | 42.5 | 42.5 | 42.5 | 42.5 |
Diluted shares used in the calculation of earnings per share | 43.1 | 42.8 | 43.1 | 42.9 |
Per share effect of dilutive securities on income from continuing operations and net income | $ (0.03) | $ (0.02) | $ (0.05) | $ (0.03) |
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 | 0.3 | 0.2 |
Non-Vested Stock Grants [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive effect of securities | 0.3 | 0.1 | 0.3 | 0.2 |
Earnings Per Share and Shareh59
Earnings Per Share and Shareholders' Equity Transactions (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Class Of Stock [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share | 0.3 | 1 | 0.3 | 0.9 |
Repurchases common stock, shares | 0.2 | |||
Repurchases common stock, value | $ 25,300,000 | |||
Maximum [Member] | ||||
Class Of Stock [Line Items] | ||||
Repurchases common stock, authorized | $ 900,000,000 | $ 900,000,000 |
Liabilities For Outstanding C60
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses (Schedule of Liability for Unpaid Losses and Loss Adjustment Expenses) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Insurance [Abstract] | ||
Gross loss and LAE reserves, beginning of period | $ 7,745 | $ 6,949.4 |
Reinsurance recoverable on unpaid losses, beginning of period | 2,608.4 | 2,274.8 |
Net loss and LAE reserves, beginning of period | 5,136.6 | 4,674.6 |
Net incurred losses and LAE in respect of losses occurring in current year | 1,603.5 | 1,516 |
Net incurred losses and LAE in respect of losses occurring in prior years | (34.1) | (24.5) |
Total incurred losses and LAE | 1,569.4 | 1,491.5 |
Net payments of losses and LAE in respect of losses occurring in Current year | 504.9 | 491.2 |
Net payments of losses and LAE in respect of losses occurring in Prior years | 944.1 | 799.7 |
Total payments | 1,449 | 1,290.9 |
Effect of foreign exchange rate changes | (14.1) | 25.8 |
Net reserve for losses and LAE, end of period | 5,242.9 | 4,901 |
Reinsurance recoverable on unpaid losses, end of Period | 2,263.5 | 2,261.4 |
Gross reserve for losses and LAE, end of period | $ 7,506.4 | $ 7,162.4 |
Liabilities For Outstanding C61
Liabilities For Outstanding Claims, Losses And Loss Adjustment Expenses (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | $ (34.1) | $ (24.5) |
Chaucer [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | (27.4) | (24.3) |
Chaucer [Member] | Political, Marine and Aviation Lines [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | $ (27.2) | |
Chaucer [Member] | Energy Line [Member] | ||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable loss and LAE development | $ (15.5) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | Dec. 11, 2009plaintiffclaim | Nov. 30, 2015claim | Jun. 30, 2018 |
Commitments And Contingencies Disclosure [Abstract] | |||
Participant's retirement age | 65 years | ||
Number of plaintiffs | plaintiff | 2 | ||
New claims | 2 | 3 | |
Claims Dismissed | 2 |