Carrying Value | Fair Value | ||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||
December 31, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 1,695.9 | $ | — | $ | — | $ | 1,695.9 | $ | 1,695.9 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 400.0 | — | 400.0 | — | 400.0 | ||||||||||||||
Notes | 13,777.8 | — | 14,794.8 | — | 14,794.8 | ||||||||||||||
Convertible debentures | 974.4 | — | 2,581.9 | — | 2,581.9 | ||||||||||||||
December 31, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 1,542.6 | $ | — | $ | — | $ | 1,542.6 | $ | 1,542.6 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 400.0 | — | 400.0 | — | 400.0 | ||||||||||||||
Commercial paper | 379.2 | — | 379.2 | — | 379.2 | ||||||||||||||
Notes | 12,746.4 | — | 13,014.3 | — | 13,014.3 | ||||||||||||||
Convertible debentures | 966.0 | — | 2,030.6 | — | 2,030.6 |
Favorable Developments by Changes in Key Assumptions | |||||||||||
2014 | 2013 | 2012 | |||||||||
Assumed trend factors | $ | (399.5 | ) | $ | (428.4 | ) | $ | (394.4 | ) | ||
Assumed completion factors | (142.4 | ) | (170.7 | ) | (119.2 | ) | |||||
Total | $ | (541.9 | ) | $ | (599.1 | ) | $ | (513.6 | ) |
Pension Benefits | Other Benefits | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Discount rate | 3.66 | % | 4.39 | % | 3.74 | % | 4.48 | % | |||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||
Expected rate of return on plan assets | 7.62 | % | 7.66 | % | 7.00 | % | 7.00 | % |
2014 | 2013 | 2012 | ||||||
Pension Benefits | ||||||||
Discount rate | 4.39 | % | 3.60 | % | 4.29 | % | ||
Rate of compensation increase | 3.00 | % | 3.50 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.66 | % | 7.91 | % | 8.00 | % | ||
Other Benefits | ||||||||
Discount rate | 4.48 | % | 3.71 | % | 4.36 | % | ||
Rate of compensation increase | 3.00 | % | 3.50 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.00 | % | 7.00 | % | 7.00 | % |
2013 | 2012 | ||||||||
Revenues | $ | 434.7 | $ | 214.5 | |||||
Income from discontinued operations before tax | $ | 17.3 | $ | 7.2 | |||||
Income tax (benefit) expense | (2.6 | ) | 2.7 | ||||||
Income from discontinued operations | 19.9 | 4.5 | |||||||
Loss on disposal from discontinued operations, net of tax | (164.5 | ) | — | ||||||
(Loss) income from discontinued operations, net of tax | $ | (144.6 | ) | $ | 4.5 |
2014 | 2013 | 2012 | |||||||||
Direct | $ | 57,496.6 | $ | 56,185.2 | $ | 48,135.1 | |||||
Assumed | 182.4 | 155.6 | 173.0 | ||||||||
Ceded | (824.1 | ) | (103.7 | ) | (94.5 | ) | |||||
Net benefit expense | $ | 56,854.9 | $ | 56,237.1 | $ | 48,213.6 |
2014 | 2013 | ||||||
Policy liabilities, assumed | $ | 57.4 | $ | 55.4 | |||
Unearned income, assumed | 0.4 | 0.4 | |||||
Premiums payable, ceded | 7.7 | 17.1 | |||||
Premiums receivable, assumed | 5.4 | 14.1 |
2014 | 2013 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer relationships | $ | 3,318.4 | $ | (2,473.4 | ) | $ | 845.0 | $ | 3,308.9 | $ | (2,264.2 | ) | $ | 1,044.7 | |||||||||
Provider and hospital relationships | 140.9 | (51.4 | ) | 89.5 | 140.5 | (44.7 | ) | 95.8 | |||||||||||||||
Other | 61.6 | (33.3 | ) | 28.3 | 61.7 | (28.3 | ) | 33.4 | |||||||||||||||
Total | 3,520.9 | (2,558.1 | ) | 962.8 | 3,511.1 | (2,337.2 | ) | 1,173.9 | |||||||||||||||
Intangible assets with indefinite lives: | |||||||||||||||||||||||
Blue Cross and Blue Shield and other trademarks | 6,298.7 | — | 6,298.7 | 6,298.7 | — | 6,298.7 | |||||||||||||||||
Provider network | — | — | — | 271.8 | — | 271.8 | |||||||||||||||||
State Medicaid licenses | 696.6 | — | 696.6 | 696.6 | — | 696.6 | |||||||||||||||||
Total | 6,995.3 | — | 6,995.3 | 7,267.1 | — | 7,267.1 | |||||||||||||||||
Other intangible assets | $ | 10,516.2 | $ | (2,558.1 | ) | $ | 7,958.1 | $ | 10,778.2 | $ | (2,337.2 | ) | $ | 8,441.0 |
2014 | 2013 | 2012 | |||||||||
Investments: | |||||||||||
Net holding gain (loss) on investment securities arising during the period, net of tax (expense) benefit of ($18.3), $223.6 and $5.4, respectively | $ | 35.4 | $ | (407.2 | ) | $ | (3.2 | ) | |||
Reclassification adjustment for net realized gain on investment securities, net of tax expense of ($44.8), ($60.6) and ($104.0), respectively | 83.2 | 112.5 | 193.1 | ||||||||
Total reclassification adjustment on investments | 118.6 | (294.7 | ) | 189.9 | |||||||
Non-credit component of OTTI on investments: | |||||||||||
Non-credit component of OTTI on investments, net of tax benefit (expense) of $2.1, ($0.9) and ($2.4), respectively | (3.9 | ) | 1.7 | 4.5 | |||||||
Cash flow hedges: | |||||||||||
Holding (loss) gain, net of tax benefit (expense) of $1.9, ($1.6) and ($0.1), respectively | (3.6 | ) | 3.0 | 0.1 | |||||||
Other: | |||||||||||
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax benefit (expense) of $75.2, ($106.8) and ($7.1), respectively | (118.1 | ) | 172.7 | (10.9 | ) | ||||||
Foreign currency translation adjustment, net of tax benefit (expense) of $2.2, ($0.6) and ($0.3), respectively | (4.3 | ) | 1.4 | 0.6 | |||||||
Net (loss) gain recognized in other comprehensive (loss) income, net of tax benefit (expense) of $18.3, $53.1 and ($108.5), respectively | $ | (11.3 | ) | $ | (115.9 | ) | $ | 184.2 |
2014 | 2013 | 2012 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Reportable segments: | |||||||||||||||||||||||
Commercial and Specialty Business | $ | 35,084.7 | $ | 35,045.2 | $ | 35,733.9 | $ | 35,772.0 | $ | 35,358.1 | $ | 36,036.7 | |||||||||||
Government Business | 33,627.7 | 33,344.6 | 30,286.9 | 30,347.1 | 21,209.3 | 20,460.0 | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Net premiums | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 | $ | 56,567.4 | $ | 56,496.7 |
Assets | ||||||
Cash and cash equivalents | $ | 4.8 | ||||
Property and equipment | 27.6 | |||||
Goodwill | 409.9 | |||||
Other intangibles | 415.4 | |||||
Other assets | 49.2 | |||||
Total assets | $ | 906.9 | ||||
Liabilities | ||||||
Accounts payable and other accrued expenses | $ | 34.2 | ||||
Deferred income taxes | 142.5 | |||||
Other liabilities | 4.7 | |||||
Total liabilities | $ | 181.4 |
2014 | 2013 | ||||||
Investments: | |||||||
Gross unrealized gains | $ | 1,154.9 | $ | 1,054.2 | |||
Gross unrealized losses | (196.8 | ) | (277.8 | ) | |||
Net pretax unrealized gains | 958.1 | 776.4 | |||||
Deferred tax liability | (330.5 | ) | (267.4 | ) | |||
Net unrealized gains on investments | 627.6 | 509.0 | |||||
Non-credit components of OTTI on investments: | |||||||
Gross unrealized losses | (6.8 | ) | (0.8 | ) | |||
Deferred tax asset | 2.4 | 0.3 | |||||
Net unrealized non-credit component of OTTI on investments | (4.4 | ) | (0.5 | ) | |||
Cash flow hedges: | |||||||
Gross unrealized losses | (55.2 | ) | (49.7 | ) | |||
Deferred tax asset | 19.3 | 17.4 | |||||
Net unrealized losses on cash flow hedges | (35.9 | ) | (32.3 | ) | |||
Defined benefit pension plans: | |||||||
Deferred net actuarial loss | (563.7 | ) | (427.2 | ) | |||
Deferred prior service credits | 2.2 | 3.0 | |||||
Deferred tax asset | 223.2 | 169.9 | |||||
Net unrecognized periodic benefit costs for defined benefit pension plans | (338.3 | ) | (254.3 | ) | |||
Postretirement benefit plans: | |||||||
Deferred net actuarial loss | (211.2 | ) | (169.6 | ) | |||
Deferred prior service credits | 88.0 | 102.4 | |||||
Deferred tax asset | 48.9 | 27.0 | |||||
Net unrecognized periodic benefit costs for postretirement benefit plans | (74.3 | ) | (40.2 | ) | |||
Foreign currency translation adjustments: | |||||||
Gross unrealized (losses) gains | (4.3 | ) | 2.2 | ||||
Deferred tax asset (liability) | 1.5 | (0.7 | ) | ||||
Net unrealized (losses) gains on foreign currency translation adjustments | (2.8 | ) | 1.5 | ||||
Accumulated other comprehensive income | $ | 171.9 | $ | 183.2 |
2014 | 2013 | 2012 | |||||||||
Investments: | |||||||||||
Net holding gain (loss) on investment securities arising during the period, net of tax (expense) benefit of ($18.3), $223.6 and $5.4, respectively | $ | 35.4 | $ | (407.2 | ) | $ | (3.2 | ) | |||
Reclassification adjustment for net realized gain on investment securities, net of tax expense of ($44.8), ($60.6) and ($104.0), respectively | 83.2 | 112.5 | 193.1 | ||||||||
Total reclassification adjustment on investments | 118.6 | (294.7 | ) | 189.9 | |||||||
Non-credit component of OTTI on investments: | |||||||||||
Non-credit component of OTTI on investments, net of tax benefit (expense) of $2.1, ($0.9) and ($2.4), respectively | (3.9 | ) | 1.7 | 4.5 | |||||||
Cash flow hedges: | |||||||||||
Holding (loss) gain, net of tax benefit (expense) of $1.9, ($1.6) and ($0.1), respectively | (3.6 | ) | 3.0 | 0.1 | |||||||
Other: | |||||||||||
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax benefit (expense) of $75.2, ($106.8) and ($7.1), respectively | (118.1 | ) | 172.7 | (10.9 | ) | ||||||
Foreign currency translation adjustment, net of tax benefit (expense) of $2.2, ($0.6) and ($0.3), respectively | (4.3 | ) | 1.4 | 0.6 | |||||||
Net (loss) gain recognized in other comprehensive (loss) income, net of tax benefit (expense) of $18.3, $53.1 and ($108.5), respectively | $ | (11.3 | ) | $ | (115.9 | ) | $ | 184.2 |
(In millions, except share data) | December 31, 2014 | December 31, 2013 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 739.8 | $ | 1,174.5 | |||
Investments available-for-sale, at fair value: | |||||||
Fixed maturity securities (amortized cost of $1,798.8 and $897.4) | 1,753.4 | 900.4 | |||||
Equity securities (cost of $148.7 and $52.6) | 206.7 | 89.6 | |||||
Other invested assets, current | 5.7 | 1.9 | |||||
Other receivables | 44.6 | 35.6 | |||||
Income taxes receivable | 227.9 | 154.4 | |||||
Net due from subsidiaries | 327.3 | 893.4 | |||||
Securities lending collateral | 224.8 | 46.2 | |||||
Deferred tax assets, net | 22.0 | 11.8 | |||||
Other current assets | 233.2 | 183.1 | |||||
Total current assets | 3,785.4 | 3,490.9 | |||||
Long-term investments available-for-sale, at fair value: | |||||||
Equity securities (cost of $6.6 and $6.7) | 6.6 | 6.7 | |||||
Other invested assets, long-term | 654.5 | 615.7 | |||||
Property and equipment, net | 134.0 | 148.3 | |||||
Deferred tax assets, net | — | 2.9 | |||||
Investments in subsidiaries | 35,647.2 | 35,516.2 | |||||
Other noncurrent assets | 220.6 | 152.3 | |||||
Total assets | $ | 40,448.3 | $ | 39,933.0 | |||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 599.9 | $ | 592.1 | |||
Security trades pending payable | 14.0 | 28.9 | |||||
Securities lending payable | 224.8 | 46.2 | |||||
Current portion of long-term debt | 625.0 | 518.0 | |||||
Other current liabilities | 280.1 | 213.4 | |||||
Total current liabilities | 1,743.8 | 1,398.6 | |||||
Long-term debt, less current portion | 14,102.3 | 13,548.6 | |||||
Deferred tax liabilities, net | 37.2 | — | |||||
Other noncurrent liabilities | 313.7 | 220.6 | |||||
Total liabilities | 16,197.0 | 15,167.8 | |||||
Commitments and contingencies—Note 5 | |||||||
Shareholders’ equity | |||||||
Preferred stock, without par value, shares authorized - 100,000,000; shares issued and outstanding - none | — | — | |||||
Common stock, par value $0.01, shares authorized - 900,000,000; shares issued and outstanding - 268,109,932 and 293,273,830 | 2.7 | 2.9 | |||||
Additional paid-in capital | 10,062.3 | 10,765.2 | |||||
Retained earnings | 14,014.4 | 13,813.9 | |||||
Accumulated other comprehensive income | 171.9 | 183.2 | |||||
Total shareholders’ equity | 24,251.3 | 24,765.2 | |||||
Total liabilities and shareholders’ equity | $ | 40,448.3 | $ | 39,933.0 |
Years ended December 31 | |||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||
Revenues | |||||||||||
Net investment income | $ | 87.4 | $ | 61.2 | $ | 95.3 | |||||
Net realized losses on investments | (27.1 | ) | (83.2 | ) | (28.5 | ) | |||||
Other-than-temporary impairment losses on investments: | |||||||||||
Total other-than-temporary impairment losses on investments | (35.5 | ) | (51.6 | ) | (15.3 | ) | |||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income | 7.0 | 0.2 | 1.3 | ||||||||
Other-than-temporary impairment losses recognized in income | (28.5 | ) | (51.4 | ) | (14.0 | ) | |||||
Other revenue | 4.8 | 4.4 | 3.5 | ||||||||
Total revenues (losses) | 36.6 | (69.0 | ) | 56.3 | |||||||
Expenses | |||||||||||
General and administrative expense | 20.3 | 196.6 | 211.9 | ||||||||
Interest expense | 597.8 | 598.4 | 507.0 | ||||||||
Loss on extinguishment of debt | 81.1 | 145.3 | — | ||||||||
Total expenses | 699.2 | 940.3 | 718.9 | ||||||||
Loss before income tax credits and equity in net income of subsidiaries | (662.6 | ) | (1,009.3 | ) | (662.6 | ) | |||||
Income tax credits | (255.4 | ) | (369.7 | ) | (172.1 | ) | |||||
Equity in net income of subsidiaries | 2,976.9 | 3,129.3 | 3,146.0 | ||||||||
Net income | $ | 2,569.7 | $ | 2,489.7 | $ | 2,655.5 |
(in millions) | Years ended December 31 | ||||||||||
2014 | 2013 | 2012 | |||||||||
Net income | $ | 2,569.7 | $ | 2,489.7 | $ | 2,655.5 | |||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Change in net unrealized gains/losses on investments | 118.6 | (294.7 | ) | 189.9 | |||||||
Change in non-credit component of other-than-temporary impairment losses on investments | (3.9 | ) | 1.7 | 4.5 | |||||||
Change in net unrealized gains/losses on cash flow hedges | (3.6 | ) | 3.0 | 0.1 | |||||||
Change in net periodic pension and postretirement costs | (118.1 | ) | 172.7 | (10.9 | ) | ||||||
Foreign currency translation adjustments | (4.3 | ) | 1.4 | 0.6 | |||||||
Other comprehensive (loss) income | (11.3 | ) | (115.9 | ) | 184.2 | ||||||
Total comprehensive income | $ | 2,558.4 | $ | 2,373.8 | $ | 2,839.7 |
(In millions) | Years ended December 31 | ||||||||||
2014 | 2013 | 2012 | |||||||||
Operating activities | |||||||||||
Net income | $ | 2,569.7 | $ | 2,489.7 | $ | 2,655.5 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Distributed (undistributed) earnings of subsidiaries | 244.3 | (78.5 | ) | (432.0 | ) | ||||||
Net realized losses on investments | 27.1 | 83.2 | 28.5 | ||||||||
Other-than-temporary impairment losses recognized in income | 28.5 | 51.4 | 14.0 | ||||||||
Loss on extinguishment of debt | 81.1 | 145.3 | — | ||||||||
Loss on disposal of assets | 3.9 | 3.6 | — | ||||||||
Deferred income taxes | 52.7 | (4.5 | ) | 49.2 | |||||||
Amortization, net of accretion | 17.5 | 25.2 | 23.2 | ||||||||
Depreciation expense | 67.4 | 45.7 | 13.1 | ||||||||
Share-based compensation | 168.9 | 146.0 | 146.5 | ||||||||
Excess tax benefits from share-based compensation | (46.4 | ) | (30.1 | ) | (28.8 | ) | |||||
Changes in operating assets and liabilities, net of effect of business combinations: | |||||||||||
Receivables, net | (16.6 | ) | 3.5 | 9.6 | |||||||
Other invested assets, current | (3.8 | ) | (0.3 | ) | 0.2 | ||||||
Other assets | 55.6 | 42.3 | (31.7 | ) | |||||||
Amounts due from/to subsidiaries | 566.1 | (983.1 | ) | 754.7 | |||||||
Accounts payable and accrued expenses | (111.4 | ) | 111.8 | (34.5 | ) | ||||||
Other liabilities | (113.8 | ) | (18.6 | ) | 8.9 | ||||||
Income taxes | (36.0 | ) | 83.9 | (204.0 | ) | ||||||
Net cash provided by operating activities | 3,554.8 | 2,116.5 | 2,972.4 | ||||||||
Investing activities | |||||||||||
Purchases of investments | (1,819.3 | ) | (1,964.3 | ) | (5,383.2 | ) | |||||
Proceeds from sales, maturities, calls and redemptions of investments | 820.7 | 2,443.3 | 5,554.5 | ||||||||
Settlement of non-hedging derivatives | (67.4 | ) | (109.8 | ) | (59.8 | ) | |||||
Capitalization of subsidiaries | (321.8 | ) | (121.2 | ) | (6,085.1 | ) | |||||
Changes in securities lending collateral | (178.8 | ) | (17.0 | ) | 73.8 | ||||||
Purchases of property and equipment, net of sales | (57.0 | ) | (87.4 | ) | (117.1 | ) | |||||
Other, net | (38.0 | ) | (18.9 | ) | (114.4 | ) | |||||
Net cash (used in) provided by investing activities | (1,661.6 | ) | 124.7 | (6,131.3 | ) | ||||||
Financing activities | |||||||||||
Net repayments of commercial paper borrowings | (379.2 | ) | (191.7 | ) | (229.0 | ) | |||||
Proceeds from long-term borrowings | 2,700.0 | 1,250.0 | 6,468.9 | ||||||||
Repayments of long-term borrowings | (1,730.1 | ) | (1,245.0 | ) | (800.0 | ) | |||||
Changes in securities lending payable | 178.6 | 17.1 | (72.7 | ) | |||||||
Changes in bank overdrafts | 55.5 | 71.8 | 30.5 | ||||||||
Premiums paid on equity options | — | (25.8 | ) | — | |||||||
Repurchase and retirement of common stock | (2,998.8 | ) | (1,620.1 | ) | (2,496.8 | ) | |||||
Cash dividends | (501.6 | ) | (465.9 | ) | (380.9 | ) | |||||
Proceeds from issuance of common stock under employee stock plans | 301.3 | 524.7 | 110.8 | ||||||||
Excess tax benefits from share-based compensation | 46.4 | 30.1 | 28.8 | ||||||||
Net cash (used in) provided by financing activities | (2,327.9 | ) | (1,654.8 | ) | 2,659.6 | ||||||
Change in cash and cash equivalents | (434.7 | ) | 586.4 | (499.3 | ) | ||||||
Cash and cash equivalents at beginning of year | 1,174.5 | 588.1 | 1,087.4 | ||||||||
Cash and cash equivalents at end of year | $ | 739.8 | $ | 1,174.5 | $ | 588.1 |
Outstanding principal amount | $ | 1,500.0 | |
Unamortized debt discount | $ | 525.6 | |
Net debt carrying amount | $ | 974.4 | |
Equity component carrying amount | $ | 543.6 | |
Conversion rate (shares of common stock per $1,000 of principal amount) | 13.3645 | ||
Effective conversion price (per $1,000 of principal amount) | $ | 74.8244 |
2014 | 2013 | ||||||
Senior unsecured notes: | |||||||
5.000%, due 2014 | $ | — | $ | 518.0 | |||
1.250%, due 2015 | 625.0 | 624.9 | |||||
5.250%, due 2016 | — | 1,109.6 | |||||
2.375%, due 2017 | 400.1 | 399.6 | |||||
5.875%, due 2017 | 527.7 | 545.1 | |||||
1.875%, due 2018 | 619.0 | 614.5 | |||||
2.300%, due 2018 | 648.0 | 647.5 | |||||
2.250%, due 2019 | 848.2 | — | |||||
7.000%, due 2019 | 440.0 | 452.9 | |||||
4.350%, due 2020 | 698.6 | 688.9 | |||||
3.700%, due 2021 | 699.4 | 699.4 | |||||
3.125%, due 2022 | 846.7 | 846.3 | |||||
3.300%, due 2023 | 997.2 | 996.9 | |||||
3.500%, due 2024 | 796.1 | — | |||||
5.950%, due 2034 | 447.3 | 447.3 | |||||
5.850%, due 2036 | 772.0 | 775.6 | |||||
6.375%, due 2037 | 644.1 | 651.4 | |||||
5.800%, due 2040 | 208.3 | 216.2 | |||||
4.625%, due 2042 | 893.9 | 893.9 | |||||
4.650%, due 2043 | 994.4 | 994.4 | |||||
4.650%, due 2044 | 798.3 | — | |||||
5.100%, due 2044 | 599.2 | 599.1 | |||||
4.850%, due 2054 | 249.4 | — | |||||
Senior convertible debentures: | |||||||
2.750%, due 2042 | 974.4 | 966.0 | |||||
Surplus notes: | |||||||
9.000%, due 2027 | 24.9 | 24.9 | |||||
Variable rate debt: | |||||||
Commercial paper program | — | 379.2 | |||||
Total long-term debt | 14,752.2 | 14,091.6 | |||||
Current portion of long-term debt | (625.0 | ) | (518.0 | ) | |||
Long-term debt, less current portion | $ | 14,127.2 | $ | 13,573.6 |
Outstanding principal amount | $ | 1,500.0 | |
Unamortized debt discount | $ | 525.6 | |
Net debt carrying amount | $ | 974.4 | |
Equity component carrying amount | $ | 543.6 | |
Conversion rate (shares of common stock per $1,000 of principal amount) | 13.3645 | ||
Effective conversion price (per $1,000 of principal amount) | $ | 74.8244 |
Contractual/ Notional Amount | Balance Sheet Location | Estimated Fair Value | |||||||||||
Asset | (Liability) | ||||||||||||
December 31, 2014 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps | $ | 1,185.0 | Other assets/other liabilities | $ | 2.6 | $ | (7.8 | ) | |||||
Non-hedging instruments | |||||||||||||
Derivatives embedded in convertible fixed maturity securities | 287.0 | Fixed maturity securities | 98.7 | — | |||||||||
Interest rate swaps | 97.9 | Equity securities | — | (9.4 | ) | ||||||||
Options | 12,208.5 | Other assets/other liabilities | 428.0 | (458.4 | ) | ||||||||
Futures | — | Equity securities | 0.5 | (1.5 | ) | ||||||||
Subtotal non-hedging | 12,593.4 | Subtotal non-hedging | 527.2 | (469.3 | ) | ||||||||
Total derivatives | $ | 13,778.4 | Total derivatives | 529.8 | (477.1 | ) | |||||||
Amounts netted | (216.7 | ) | 216.7 | ||||||||||
Net derivatives | $ | 313.1 | $ | (260.4 | ) | ||||||||
December 31, 2013 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps | $ | 1,660.0 | Other assets/other liabilities | $ | 30.9 | $ | (20.7 | ) | |||||
Non-hedging instruments | |||||||||||||
Derivatives embedded in convertible fixed maturity securities | 295.0 | Fixed maturity securities | 89.2 | — | |||||||||
Credit default and interest rate swaps | 72.6 | Equity securities | 1.8 | (2.5 | ) | ||||||||
Options | 14,912.4 | Equity securities/other assets | 776.5 | (787.7 | ) | ||||||||
Futures | — | Equity securities | 3.5 | (1.6 | ) | ||||||||
Subtotal non-hedging | 15,280.0 | Subtotal non-hedging | 871.0 | (791.8 | ) | ||||||||
Total derivatives | $ | 16,940.0 | Total derivatives | 901.9 | (812.5 | ) | |||||||
Amounts netted | (791.8 | ) | 791.8 | ||||||||||
Net derivatives | $ | 110.1 | $ | (20.7 | ) |
Type of Fair Value Hedges | Year Entered Into | Outstanding Notional Amount | Interest Rate Received | Expiration Date | ||||||||||||
2014 | 2013 | |||||||||||||||
Interest rate swap | 2014 | $ | 150.0 | $ | — | 4.350 | % | August 15, 2020 | ||||||||
Interest rate swap | 2013 | 10.0 | 10.0 | 4.350 | August 15, 2020 | |||||||||||
Interest rate swap | 2012 | 200.0 | 200.0 | 4.350 | August 15, 2020 | |||||||||||
Interest rate swap | 2012 | 625.0 | 625.0 | 1.875 | January 15, 2018 | |||||||||||
Interest rate swap | 2012 | 200.0 | 200.0 | 2.375 | February 15, 2017 | |||||||||||
Interest rate swap | 2011 | — | 200.0 | 5.250 | — | |||||||||||
Interest rate swap | 2010 | — | 25.0 | 5.250 | — | |||||||||||
Interest rate swap | 2006 | — | 200.0 | 5.000 | — | |||||||||||
Interest rate swap | 2005 | — | 200.0 | 5.000 | — | |||||||||||
Total notional amount outstanding | $ | 1,185.0 | $ | 1,660.0 |
Type of Fair Value Hedges | Income Statement Location of Hedge Gain | Hedge Gain Recognized | Hedged Item | Income Statement Location of Hedged Item Loss | Hedged Item Loss Recognized | |||||||||
Year ended December 31, 2014 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 25.5 | Fixed rate debt | Interest expense | $ | (25.5 | ) | ||||||
Year ended December 31, 2013 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 31.5 | Fixed rate debt | Interest expense | $ | (31.5 | ) | ||||||
Year ended December 31, 2012 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 38.2 | Fixed rate debt | Interest expense | $ | (38.2 | ) |
Effective Portion | ||||||||||||||||
Pretax Hedge Loss Recognized in Other Comprehensive (Loss) Income | Income Statement Location of Loss Reclassification from Accumulated Other Comprehensive Income | Hedge Loss Reclassified from Accumulated Other Comprehensive Income | Ineffective Portion | |||||||||||||
Type of Cash Flow Hedge | Income Statement Location of Loss Recognized | Hedge Loss Recognized | ||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Forward starting pay fixed swaps | $ | — | Interest expense | $ | (5.0 | ) | None | $ | — | |||||||
Year ended December 31, 2013 | ||||||||||||||||
Forward starting pay fixed swaps | $ | — | Interest expense | $ | (4.6 | ) | None | $ | — | |||||||
Year ended December 31, 2012 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (4.0 | ) | Interest expense | $ | (4.2 | ) | Interest expense | $ | (0.1 | ) |
Type of Non-hedging Derivatives | Income Statement Location of Gain (Loss) Recognized | Derivative Gain (Loss) Recognized | ||||
Year ended December 31, 2014 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | 11.6 | |||
Interest rate swaps | Net realized gains on investments | (11.6 | ) | |||
Options | Net realized gains on investments | (54.6 | ) | |||
Futures | Net realized gains on investments | (10.0 | ) | |||
Swaptions | Net realized gains on investments | 1.3 | ||||
Total | $ | (63.3 | ) | |||
Year ended December 31, 2013 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | 31.5 | |||
Interest rate swaps | Net realized gains on investments | 2.2 | ||||
Options | Net realized gains on investments | (111.7 | ) | |||
Futures | Net realized gains on investments | 22.3 | ||||
Swaptions | Net realized gains on investments | 3.0 | ||||
Total | $ | (52.7 | ) | |||
Year ended December 31, 2012 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | (2.4 | ) | ||
Credit default and interest rate swaps | Net realized gains on investments | (3.9 | ) | |||
Options | Net realized gains on investments | (66.0 | ) | |||
Futures | Net realized gains on investments | (6.7 | ) | |||
Total | $ | (79.0 | ) |
Declaration Date | Record Date | Payment Date | Cash Dividend per Share | Total | ||||||||
Year ended December 31, 2014 | ||||||||||||
January 28, 2014 | March 10, 2014 | March 25, 2014 | $ | 0.4375 | $ | 123.4 | ||||||
April 29, 2014 | June 10, 2014 | June 25, 2014 | 0.4375 | 120.5 | ||||||||
July 29, 2014 | September 10, 2014 | September 25, 2014 | 0.4375 | 119.2 | ||||||||
October 28, 2014 | December 5, 2014 | December 22, 2014 | 0.4375 | 117.6 | ||||||||
Year ended December 31, 2013 | ||||||||||||
February 20, 2013 | March 8, 2013 | March 25, 2013 | $ | 0.3750 | $ | 113.4 | ||||||
May 15, 2013 | June 10, 2013 | June 25, 2013 | 0.3750 | 112.7 | ||||||||
July 23, 2013 | September 10, 2013 | September 25, 2013 | 0.3750 | 111.4 | ||||||||
October 22, 2013 | December 9, 2013 | December 23, 2013 | 0.3750 | 110.5 |
2014 | 2013 | 2012 | ||||||
Denominator for basic earnings per share—weighted-average shares | 275.9 | 298.5 | 321.5 | |||||
Effect of dilutive securities—employee stock options, non-vested restricted stock awards and convertible debentures | 10.0 | 5.3 | 3.3 | |||||
Denominator for diluted earnings per share | 285.9 | 303.8 | 324.8 |
Corporate Securities | Residential Mortgage- backed Securities | Commercial Mortgage- backed Securities | Other Debt Securities | Equity Securities | Total | ||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||
Beginning balance at January 1, 2014 | $ | 115.2 | $ | — | $ | 6.5 | $ | 14.8 | $ | 41.4 | $ | 177.9 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (4.4 | ) | — | — | — | (0.7 | ) | (5.1 | ) | ||||||||||||||
Recognized in accumulated other comprehensive income | 8.5 | — | — | 0.4 | 2.8 | 11.7 | |||||||||||||||||
Purchases | 68.9 | — | 3.6 | 6.5 | 15.9 | 94.9 | |||||||||||||||||
Sales | (48.0 | ) | — | — | (3.6 | ) | (10.6 | ) | (62.2 | ) | |||||||||||||
Settlements | (11.0 | ) | — | (3.7 | ) | (0.4 | ) | — | (15.1 | ) | |||||||||||||
Transfers into Level III | 24.8 | — | — | — | — | 24.8 | |||||||||||||||||
Transfers out of Level III | (9.4 | ) | — | (3.1 | ) | (11.1 | ) | (0.5 | ) | (24.1 | ) | ||||||||||||
Ending balance at December 31, 2014 | $ | 144.6 | $ | — | $ | 3.3 | $ | 6.6 | $ | 48.3 | $ | 202.8 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2014 | $ | (11.1 | ) | $ | — | $ | — | $ | — | $ | (0.7 | ) | $ | (11.8 | ) | ||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||
Beginning balance at January 1, 2013 | $ | 121.1 | $ | 4.3 | $ | — | $ | 3.9 | $ | 26.2 | $ | 155.5 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (30.3 | ) | — | — | (0.1 | ) | (4.8 | ) | (35.2 | ) | |||||||||||||
Recognized in accumulated other comprehensive income | (3.5 | ) | — | — | 0.6 | 9.5 | 6.6 | ||||||||||||||||
Purchases | 51.9 | — | — | 1.6 | 17.6 | 71.1 | |||||||||||||||||
Sales | (4.8 | ) | — | — | — | (7.1 | ) | (11.9 | ) | ||||||||||||||
Settlements | (15.5 | ) | (1.9 | ) | (6.1 | ) | (0.7 | ) | — | (24.2 | ) | ||||||||||||
Transfers into Level III | 3.0 | 13.1 | 12.6 | 9.8 | — | 38.5 | |||||||||||||||||
Transfers out of Level III | (6.7 | ) | (15.5 | ) | — | (0.3 | ) | — | (22.5 | ) | |||||||||||||
Ending balance at December 31, 2013 | $ | 115.2 | $ | — | $ | 6.5 | $ | 14.8 | $ | 41.4 | $ | 177.9 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2013 | $ | (30.8 | ) | $ | — | $ | — | $ | (0.1 | ) | $ | (6.5 | ) | $ | (37.4 | ) | |||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||
Beginning balance at January 1, 2012 | $ | 195.1 | $ | — | $ | 6.3 | $ | 59.0 | $ | 24.4 | $ | 284.8 | |||||||||||
Total gains (losses): | |||||||||||||||||||||||
Recognized in net income | 15.2 | — | — | 0.1 | (0.9 | ) | 14.4 | ||||||||||||||||
Recognized in accumulated other comprehensive income | (19.7 | ) | — | 0.1 | 0.7 | (14.2 | ) | (33.1 | ) | ||||||||||||||
Purchases | 77.8 | 3.0 | 3.4 | — | 4.9 | 89.1 | |||||||||||||||||
Business combinations | 2.6 | — | — | — | — | 2.6 | |||||||||||||||||
Sales | (29.8 | ) | — | — | (16.6 | ) | (0.5 | ) | (46.9 | ) | |||||||||||||
Settlements | (67.8 | ) | (0.1 | ) | (0.1 | ) | (1.3 | ) | — | (69.3 | ) | ||||||||||||
Transfers into Level III | 2.9 | 1.4 | 1.9 | 12.0 | 12.5 | 30.7 | |||||||||||||||||
Transfers out of Level III | (55.2 | ) | — | (11.6 | ) | (50.0 | ) | — | (116.8 | ) | |||||||||||||
Ending balance at December 31, 2012 | $ | 121.1 | $ | 4.3 | $ | — | $ | 3.9 | $ | 26.2 | $ | 155.5 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2012 | $ | — | $ | — | $ | — | $ | — | $ | (0.7 | ) | $ | (0.7 | ) |
Level Input: | Input Definition: | |
Level I | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | |
Level II | Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. | |
Level III | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2014 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 573.2 | $ | — | $ | — | $ | 573.2 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 320.0 | — | — | 320.0 | |||||||||||
Government sponsored securities | — | 95.0 | — | 95.0 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 5,733.6 | — | 5,733.6 | |||||||||||
Corporate securities | 7.1 | 8,180.8 | 144.6 | 8,332.5 | |||||||||||
Options embedded in convertible securities | — | 98.7 | — | 98.7 | |||||||||||
Residential mortgage-backed securities | — | 2,159.0 | — | 2,159.0 | |||||||||||
Commercial mortgage-backed securities | — | 506.6 | 3.3 | 509.9 | |||||||||||
Other debt securities | 89.2 | 627.3 | 6.6 | 723.1 | |||||||||||
Total fixed maturity securities | 416.3 | 17,401.0 | 154.5 | 17,971.8 | |||||||||||
Equity securities | 1,696.9 | 192.9 | 48.3 | 1,938.1 | |||||||||||
Other invested assets, current | 20.2 | — | — | 20.2 | |||||||||||
Securities lending collateral | 808.3 | 706.9 | — | 1,515.2 | |||||||||||
Derivatives excluding embedded options (reported with other assets) | — | 224.8 | — | 224.8 | |||||||||||
Total assets | $ | 3,514.9 | $ | 18,525.6 | $ | 202.8 | $ | 22,243.3 | |||||||
Liabilities: | |||||||||||||||
Derivatives excluding embedded options (reported with other liabilities) | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) | |||||
Total liabilities | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) | |||||
December 31, 2013 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 632.3 | $ | — | $ | — | $ | 632.3 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 299.9 | — | — | 299.9 | |||||||||||
Government sponsored securities | — | 173.5 | — | 173.5 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,002.7 | — | 6,002.7 | |||||||||||
Corporate securities | — | 7,593.4 | 115.2 | 7,708.6 | |||||||||||
Options embedded in convertible securities | — | 89.2 | — | 89.2 | |||||||||||
Residential mortgage-backed securities | — | 2,268.9 | — | 2,268.9 | |||||||||||
Commercial mortgage-backed securities | — | 480.1 | 6.5 | 486.6 | |||||||||||
Other debt securities | 35.6 | 408.3 | 14.8 | 458.7 | |||||||||||
Total fixed maturity securities | 335.5 | 17,016.1 | 136.5 | 17,488.1 | |||||||||||
Equity securities | 1,475.7 | 249.7 | 41.4 | 1,766.8 | |||||||||||
Other invested assets, current | 16.3 | — | — | 16.3 | |||||||||||
Securities lending collateral | 408.5 | 561.3 | — | 969.8 | |||||||||||
Derivatives excluding embedded options (reported with other assets) | — | 58.4 | — | 58.4 | |||||||||||
Total assets | $ | 2,868.3 | $ | 17,885.5 | $ | 177.9 | $ | 20,931.7 | |||||||
Liabilities: | |||||||||||||||
Derivatives excluding embedded options (reported with other liabilities) | $ | — | $ | (20.7 | ) | $ | — | $ | (20.7 | ) | |||||
Total liabilities | $ | — | $ | (20.7 | ) | $ | — | $ | (20.7 | ) |
Corporate Securities | Residential Mortgage- backed Securities | Commercial Mortgage- backed Securities | Other Debt Securities | Equity Securities | Total | ||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||
Beginning balance at January 1, 2014 | $ | 115.2 | $ | — | $ | 6.5 | $ | 14.8 | $ | 41.4 | $ | 177.9 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (4.4 | ) | — | — | — | (0.7 | ) | (5.1 | ) | ||||||||||||||
Recognized in accumulated other comprehensive income | 8.5 | — | — | 0.4 | 2.8 | 11.7 | |||||||||||||||||
Purchases | 68.9 | — | 3.6 | 6.5 | 15.9 | 94.9 | |||||||||||||||||
Sales | (48.0 | ) | — | — | (3.6 | ) | (10.6 | ) | (62.2 | ) | |||||||||||||
Settlements | (11.0 | ) | — | (3.7 | ) | (0.4 | ) | — | (15.1 | ) | |||||||||||||
Transfers into Level III | 24.8 | — | — | — | — | 24.8 | |||||||||||||||||
Transfers out of Level III | (9.4 | ) | — | (3.1 | ) | (11.1 | ) | (0.5 | ) | (24.1 | ) | ||||||||||||
Ending balance at December 31, 2014 | $ | 144.6 | $ | — | $ | 3.3 | $ | 6.6 | $ | 48.3 | $ | 202.8 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2014 | $ | (11.1 | ) | $ | — | $ | — | $ | — | $ | (0.7 | ) | $ | (11.8 | ) | ||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||
Beginning balance at January 1, 2013 | $ | 121.1 | $ | 4.3 | $ | — | $ | 3.9 | $ | 26.2 | $ | 155.5 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (30.3 | ) | — | — | (0.1 | ) | (4.8 | ) | (35.2 | ) | |||||||||||||
Recognized in accumulated other comprehensive income | (3.5 | ) | — | — | 0.6 | 9.5 | 6.6 | ||||||||||||||||
Purchases | 51.9 | — | — | 1.6 | 17.6 | 71.1 | |||||||||||||||||
Sales | (4.8 | ) | — | — | — | (7.1 | ) | (11.9 | ) | ||||||||||||||
Settlements | (15.5 | ) | (1.9 | ) | (6.1 | ) | (0.7 | ) | — | (24.2 | ) | ||||||||||||
Transfers into Level III | 3.0 | 13.1 | 12.6 | 9.8 | — | 38.5 | |||||||||||||||||
Transfers out of Level III | (6.7 | ) | (15.5 | ) | — | (0.3 | ) | — | (22.5 | ) | |||||||||||||
Ending balance at December 31, 2013 | $ | 115.2 | $ | — | $ | 6.5 | $ | 14.8 | $ | 41.4 | $ | 177.9 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2013 | $ | (30.8 | ) | $ | — | $ | — | $ | (0.1 | ) | $ | (6.5 | ) | $ | (37.4 | ) | |||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||
Beginning balance at January 1, 2012 | $ | 195.1 | $ | — | $ | 6.3 | $ | 59.0 | $ | 24.4 | $ | 284.8 | |||||||||||
Total gains (losses): | |||||||||||||||||||||||
Recognized in net income | 15.2 | — | — | 0.1 | (0.9 | ) | 14.4 | ||||||||||||||||
Recognized in accumulated other comprehensive income | (19.7 | ) | — | 0.1 | 0.7 | (14.2 | ) | (33.1 | ) | ||||||||||||||
Purchases | 77.8 | 3.0 | 3.4 | — | 4.9 | 89.1 | |||||||||||||||||
Business combinations | 2.6 | — | — | — | — | 2.6 | |||||||||||||||||
Sales | (29.8 | ) | — | — | (16.6 | ) | (0.5 | ) | (46.9 | ) | |||||||||||||
Settlements | (67.8 | ) | (0.1 | ) | (0.1 | ) | (1.3 | ) | — | (69.3 | ) | ||||||||||||
Transfers into Level III | 2.9 | 1.4 | 1.9 | 12.0 | 12.5 | 30.7 | |||||||||||||||||
Transfers out of Level III | (55.2 | ) | — | (11.6 | ) | (50.0 | ) | — | (116.8 | ) | |||||||||||||
Ending balance at December 31, 2012 | $ | 121.1 | $ | 4.3 | $ | — | $ | 3.9 | $ | 26.2 | $ | 155.5 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2012 | $ | — | $ | — | $ | — | $ | — | $ | (0.7 | ) | $ | (0.7 | ) |
Carrying Value | Fair Value | ||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||
December 31, 2014 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 1,695.9 | $ | — | $ | — | $ | 1,695.9 | $ | 1,695.9 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 400.0 | — | 400.0 | — | 400.0 | ||||||||||||||
Notes | 13,777.8 | — | 14,794.8 | — | 14,794.8 | ||||||||||||||
Convertible debentures | 974.4 | — | 2,581.9 | — | 2,581.9 | ||||||||||||||
December 31, 2013 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 1,542.6 | $ | — | $ | — | $ | 1,542.6 | $ | 1,542.6 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 400.0 | — | 400.0 | — | 400.0 | ||||||||||||||
Commercial paper | 379.2 | — | 379.2 | — | 379.2 | ||||||||||||||
Notes | 12,746.4 | — | 13,014.3 | — | 13,014.3 | ||||||||||||||
Convertible debentures | 966.0 | — | 2,030.6 | — | 2,030.6 |
Current assets | $ | 2,716.5 | |
Goodwill | 3,062.0 | ||
Other intangible assets | 975.0 | ||
Other noncurrent assets | 406.1 | ||
Total assets acquired | 7,159.6 | ||
Current liabilities | 1,416.6 | ||
Noncurrent liabilities | 967.5 | ||
Total liabilities assumed | 2,384.1 | ||
Net assets acquired | $ | 4,775.5 |
2014 | 2013 | 2012 | |||||||||
Net realized gains (losses) on investments: | |||||||||||
Fixed maturity securities: | |||||||||||
Gross realized gains from sales | $ | 198.2 | $ | 225.9 | $ | 401.0 | |||||
Gross realized losses from sales | (50.6 | ) | (125.7 | ) | (54.8 | ) | |||||
Net realized gains from sales of fixed maturity securities | 147.6 | 100.2 | 346.2 | ||||||||
Equity securities: | |||||||||||
Gross realized gains from sales | 106.5 | 224.1 | 82.0 | ||||||||
Gross realized losses from sales | (90.2 | ) | (100.5 | ) | (93.8 | ) | |||||
Net realized gains (losses) from sales of equity securities | 16.3 | 123.6 | (11.8 | ) | |||||||
Other realized gains on investments | 13.1 | 48.1 | 0.5 | ||||||||
Net realized gains on investments | 177.0 | 271.9 | 334.9 | ||||||||
Other-than-temporary impairment losses recognized in income: | |||||||||||
Fixed maturity securities | (22.3 | ) | (42.5 | ) | (11.8 | ) | |||||
Equity securities | (13.5 | ) | (13.9 | ) | (17.5 | ) | |||||
Other invested assets, long-term | (13.2 | ) | (42.5 | ) | (8.5 | ) | |||||
Other-than-temporary impairment losses recognized in income | (49.0 | ) | (98.9 | ) | (37.8 | ) | |||||
Change in net unrealized gains (losses) on investments: | |||||||||||
Fixed maturity securities | 145.2 | (679.8 | ) | 199.8 | |||||||
Equity securities | 36.5 | 225.4 | 94.7 | ||||||||
Total change in net unrealized gains (losses) on investments | 181.7 | (454.4 | ) | 294.5 | |||||||
Deferred income tax (expense) benefit | (63.1 | ) | 159.7 | (104.6 | ) | ||||||
Net change in net unrealized gains (losses) on investments | 118.6 | (294.7 | ) | 189.9 | |||||||
Net realized gains on investments, other-than-temporary impairment losses recognized in income and net change in net unrealized gains (losses) on investments | $ | 246.6 | $ | (121.7 | ) | $ | 487.0 |
Commercial and Specialty Business | Government Business | Total | |||||||||
Balance as of January 1, 2013 | $ | 11,555.3 | $ | 5,334.5 | $ | 16,889.8 | |||||
Measurement period adjustments | (1.3 | ) | 28.7 | 27.4 | |||||||
Balance as of December 31, 2013 | $ | 11,554.0 | $ | 5,363.2 | $ | 16,917.2 | |||||
Measurement period adjustments | (1.6 | ) | (0.2 | ) | (1.8 | ) | |||||
Other adjustments | 266.5 | (99.9 | ) | 166.6 | |||||||
Balance as of December 31, 2014 | $ | 11,818.9 | $ | 5,263.1 | $ | 17,082.0 | |||||
Accumulated impairment as of December 31, 2014 | $ | (41.0 | ) | $ | — | $ | (41.0 | ) |
2014 | 2013 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer relationships | $ | 3,318.4 | $ | (2,473.4 | ) | $ | 845.0 | $ | 3,308.9 | $ | (2,264.2 | ) | $ | 1,044.7 | |||||||||
Provider and hospital relationships | 140.9 | (51.4 | ) | 89.5 | 140.5 | (44.7 | ) | 95.8 | |||||||||||||||
Other | 61.6 | (33.3 | ) | 28.3 | 61.7 | (28.3 | ) | 33.4 | |||||||||||||||
Total | 3,520.9 | (2,558.1 | ) | 962.8 | 3,511.1 | (2,337.2 | ) | 1,173.9 | |||||||||||||||
Intangible assets with indefinite lives: | |||||||||||||||||||||||
Blue Cross and Blue Shield and other trademarks | 6,298.7 | — | 6,298.7 | 6,298.7 | — | 6,298.7 | |||||||||||||||||
Provider network | — | — | — | 271.8 | — | 271.8 | |||||||||||||||||
State Medicaid licenses | 696.6 | — | 696.6 | 696.6 | — | 696.6 | |||||||||||||||||
Total | 6,995.3 | — | 6,995.3 | 7,267.1 | — | 7,267.1 | |||||||||||||||||
Other intangible assets | $ | 10,516.2 | $ | (2,558.1 | ) | $ | 7,958.1 | $ | 10,778.2 | $ | (2,337.2 | ) | $ | 8,441.0 |
2014 | 2013 | ||||||
Deferred tax assets relating to: | |||||||
Retirement benefits | $ | 357.7 | $ | 287.8 | |||
Accrued expenses | 329.9 | 342.8 | |||||
Insurance reserves | 209.7 | 213.1 | |||||
Net operating loss carryforwards | 14.8 | 17.2 | |||||
Bad debt reserves | 132.9 | 124.8 | |||||
State income tax | 40.6 | 32.9 | |||||
Deferred compensation | 46.6 | 52.0 | |||||
Investment basis difference | 88.2 | 166.3 | |||||
Other | 34.2 | 84.0 | |||||
Total deferred tax assets | 1,254.6 | 1,320.9 | |||||
Valuation allowance | (2.6 | ) | (24.1 | ) | |||
Total deferred tax assets, net of valuation allowance | 1,252.0 | 1,296.8 | |||||
Deferred tax liabilities relating to: | |||||||
Unrealized gains on securities | 331.4 | 266.5 | |||||
Acquisition related: | |||||||
Trademarks and other non-amortizable intangible assets | 2,200.5 | 2,200.5 | |||||
Subscriber base, provider and hospital networks | 301.1 | 370.9 | |||||
Internally developed software and other amortization differences | 654.9 | 703.9 | |||||
Retirement benefits | 241.1 | 231.5 | |||||
Debt discount | 184.0 | 186.9 | |||||
State deferred tax | 49.1 | 55.3 | |||||
Depreciation and amortization | 29.6 | 33.1 | |||||
Other | 205.9 | 190.4 | |||||
Total deferred tax liabilities | 4,197.6 | 4,239.0 | |||||
Net deferred tax liability | $ | (2,945.6 | ) | $ | (2,942.2 | ) | |
Deferred tax asset-current | $ | 280.4 | $ | 383.0 | |||
Deferred tax liability-noncurrent | (3,226.0 | ) | (3,325.2 | ) | |||
Net deferred tax liability | $ | (2,945.6 | ) | $ | (2,942.2 | ) |
2014 | 2013 | 2012 | |||||||||
Current tax expense (benefit): | |||||||||||
Federal | $ | 1,629.4 | $ | 1,226.4 | $ | 1,060.2 | |||||
State and local | 65.8 | (42.6 | ) | 95.7 | |||||||
Total current tax expense | 1,695.2 | 1,183.8 | 1,155.9 | ||||||||
Deferred tax expense | 112.8 | 22.1 | 51.4 | ||||||||
Total income tax expense | $ | 1,808.0 | $ | 1,205.9 | $ | 1,207.3 |
2014 | 2013 | 2012 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Amount at statutory rate | $ | 1,528.8 | 35.0 | % | $ | 1,344.1 | 35.0 | % | $ | 1,350.4 | 35.0 | % | ||||||||
State and local income taxes net of federal tax benefit | 49.0 | 1.1 | 24.4 | 0.6 | 25.5 | 0.6 | ||||||||||||||
Tax exempt interest and dividends received deduction | (65.9 | ) | (1.5 | ) | (64.9 | ) | (1.7 | ) | (59.3 | ) | (1.5 | ) | ||||||||
Health Insurance Provider fee | 312.6 | 7.2 | — | — | — | — | ||||||||||||||
Audit settlements | — | — | — | — | (200.5 | ) | (5.2 | ) | ||||||||||||
Other, net | (16.5 | ) | (0.4 | ) | (97.7 | ) | (2.5 | ) | 91.2 | 2.4 | ||||||||||
Total income tax expense | $ | 1,808.0 | 41.4 | % | $ | 1,205.9 | 31.4 | % | $ | 1,207.3 | 31.3 | % |
2014 | 2013 | ||||||
Balance at January 1 | $ | 103.2 | $ | 143.5 | |||
Additions for tax positions related to: | |||||||
Current year | 10.9 | 5.0 | |||||
Prior years | 31.3 | — | |||||
Reductions related to: | |||||||
Tax positions of prior years | (24.5 | ) | (45.3 | ) | |||
Settlements with taxing authorities | (5.1 | ) | — | ||||
Balance at December 31 | $ | 115.8 | $ | 103.2 |
2014 | 2013 | 2012 | |||||||||
Fixed maturity securities | $ | 644.1 | $ | 638.9 | $ | 671.2 | |||||
Equity securities | 57.7 | 45.9 | 38.4 | ||||||||
Cash and cash equivalents | 0.8 | 1.0 | 2.5 | ||||||||
Other | 66.3 | 19.8 | 16.2 | ||||||||
Investment income | 768.9 | 705.6 | 728.3 | ||||||||
Investment expense | (44.5 | ) | (46.5 | ) | (42.2 | ) | |||||
Net investment income | $ | 724.4 | $ | 659.1 | $ | 686.1 |
Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 507.3 | $ | 510.8 | |||
Due after one year through five years | 4,649.6 | 4,702.9 | |||||
Due after five years through ten years | 5,227.9 | 5,360.8 | |||||
Due after ten years | 4,631.8 | 4,728.4 | |||||
Mortgage-backed securities | 2,604.5 | 2,668.9 | |||||
Total available-for-sale fixed maturity securities | $ | 17,621.1 | $ | 17,971.8 |
Non-Credit Component of Other-Than- Temporary Impairments Recognized in AOCI | |||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 315.7 | $ | 4.6 | $ | (0.3 | ) | $ | — | $ | 320.0 | $ | — | ||||||||||
Government sponsored securities | 94.6 | 0.8 | — | (0.4 | ) | 95.0 | — | ||||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,451.4 | 287.0 | (1.8 | ) | (3.0 | ) | 5,733.6 | — | |||||||||||||||
Corporate securities | 8,335.9 | 162.9 | (123.1 | ) | (43.2 | ) | 8,332.5 | (6.8 | ) | ||||||||||||||
Options embedded in convertible securities | 98.7 | — | — | — | 98.7 | — | |||||||||||||||||
Residential mortgage-backed securities | 2,099.7 | 68.9 | (1.0 | ) | (8.6 | ) | 2,159.0 | — | |||||||||||||||
Commercial mortgage-backed securities | 504.8 | 6.1 | (0.6 | ) | (0.4 | ) | 509.9 | — | |||||||||||||||
Other debt securities | 720.3 | 6.1 | (1.7 | ) | (1.6 | ) | 723.1 | — | |||||||||||||||
Total fixed maturity securities | 17,621.1 | 536.4 | (128.5 | ) | (57.2 | ) | 17,971.8 | $ | (6.8 | ) | |||||||||||||
Equity securities | 1,330.7 | 618.5 | (11.1 | ) | — | 1,938.1 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,951.8 | $ | 1,154.9 | $ | (139.6 | ) | $ | (57.2 | ) | $ | 19,909.9 | |||||||||||
December 31, 2013 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 300.8 | $ | 2.5 | $ | (3.4 | ) | $ | — | $ | 299.9 | $ | — | ||||||||||
Government sponsored securities | 174.4 | 0.4 | (1.3 | ) | — | 173.5 | — | ||||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,899.5 | 202.9 | (90.1 | ) | (9.6 | ) | 6,002.7 | (0.6 | ) | ||||||||||||||
Corporate securities | 7,614.1 | 205.2 | (95.2 | ) | (15.5 | ) | 7,708.6 | (0.1 | ) | ||||||||||||||
Options embedded in convertible securities | 89.2 | — | — | — | 89.2 | — | |||||||||||||||||
Residential mortgage-backed securities | 2,269.4 | 48.0 | (41.4 | ) | (7.1 | ) | 2,268.9 | — | |||||||||||||||
Commercial mortgage-backed securities | 479.0 | 10.5 | (2.6 | ) | (0.3 | ) | 486.6 | — | |||||||||||||||
Other debt securities | 456.2 | 5.8 | (2.5 | ) | (0.8 | ) | 458.7 | (0.1 | ) | ||||||||||||||
Total fixed maturity securities | 17,282.6 | 475.3 | (236.5 | ) | (33.3 | ) | 17,488.1 | $ | (0.8 | ) | |||||||||||||
Equity securities | 1,195.9 | 578.9 | (8.0 | ) | — | 1,766.8 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,478.5 | $ | 1,054.2 | $ | (244.5 | ) | $ | (33.3 | ) | $ | 19,254.9 |
Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||
Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | ||||||||||||||||
(Securities are whole amounts) | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 17 | $ | 145.3 | $ | (0.3 | ) | 2 | $ | 0.9 | $ | — | ||||||||||
Government sponsored securities | 2 | 0.3 | — | 16 | 29.3 | (0.4 | ) | ||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 136 | 315.6 | (1.8 | ) | 80 | 174.3 | (3.0 | ) | |||||||||||||
Corporate securities | 1,802 | 3,213.3 | (123.1 | ) | 314 | 514.6 | (43.2 | ) | |||||||||||||
Residential mortgage-backed securities | 78 | 155.0 | (1.0 | ) | 186 | 398.3 | (8.6 | ) | |||||||||||||
Commercial mortgage-backed securities | 43 | 156.2 | (0.6 | ) | 10 | 33.2 | (0.4 | ) | |||||||||||||
Other debt securities | 79 | 270.6 | (1.7 | ) | 21 | 65.0 | (1.6 | ) | |||||||||||||
Total fixed maturity securities | 2,157 | 4,256.3 | (128.5 | ) | 629 | 1,215.6 | (57.2 | ) | |||||||||||||
Equity securities | 407 | 125.4 | (11.1 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 2,564 | $ | 4,381.7 | $ | (139.6 | ) | 629 | $ | 1,215.6 | $ | (57.2 | ) | |||||||||
December 31, 2013 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 27 | $ | 179.2 | $ | (3.4 | ) | — | $ | — | $ | — | ||||||||||
Government sponsored securities | 22 | 73.4 | (1.3 | ) | — | — | — | ||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 806 | 2,070.9 | (90.1 | ) | 42 | 82.4 | (9.6 | ) | |||||||||||||
Corporate securities | 1,448 | 2,586.6 | (95.2 | ) | 107 | 81.3 | (15.5 | ) | |||||||||||||
Residential mortgage-backed securities | 605 | 1,243.0 | (41.4 | ) | 80 | 116.2 | (7.1 | ) | |||||||||||||
Commercial mortgage-backed securities | 52 | 177.7 | (2.6 | ) | 4 | 5.6 | (0.3 | ) | |||||||||||||
Other debt securities | 65 | 185.3 | (2.5 | ) | 17 | 16.2 | (0.8 | ) | |||||||||||||
Total fixed maturity securities | 3,025 | 6,516.1 | (236.5 | ) | 250 | 301.7 | (33.3 | ) | |||||||||||||
Equity securities | 426 | 120.8 | (8.0 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 3,451 | $ | 6,636.9 | $ | (244.5 | ) | 250 | $ | 301.7 | $ | (33.3 | ) |
Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 507.3 | $ | 510.8 | |||
Due after one year through five years | 4,649.6 | 4,702.9 | |||||
Due after five years through ten years | 5,227.9 | 5,360.8 | |||||
Due after ten years | 4,631.8 | 4,728.4 | |||||
Mortgage-backed securities | 2,604.5 | 2,668.9 | |||||
Total available-for-sale fixed maturity securities | $ | 17,621.1 | $ | 17,971.8 |
2014 | 2013 | 2012 | |||||||||
Fixed maturity securities | $ | 644.1 | $ | 638.9 | $ | 671.2 | |||||
Equity securities | 57.7 | 45.9 | 38.4 | ||||||||
Cash and cash equivalents | 0.8 | 1.0 | 2.5 | ||||||||
Other | 66.3 | 19.8 | 16.2 | ||||||||
Investment income | 768.9 | 705.6 | 728.3 | ||||||||
Investment expense | (44.5 | ) | (46.5 | ) | (42.2 | ) | |||||
Net investment income | $ | 724.4 | $ | 659.1 | $ | 686.1 |
2014 | 2013 | 2012 | |||||||||
Net realized gains (losses) on investments: | |||||||||||
Fixed maturity securities: | |||||||||||
Gross realized gains from sales | $ | 198.2 | $ | 225.9 | $ | 401.0 | |||||
Gross realized losses from sales | (50.6 | ) | (125.7 | ) | (54.8 | ) | |||||
Net realized gains from sales of fixed maturity securities | 147.6 | 100.2 | 346.2 | ||||||||
Equity securities: | |||||||||||
Gross realized gains from sales | 106.5 | 224.1 | 82.0 | ||||||||
Gross realized losses from sales | (90.2 | ) | (100.5 | ) | (93.8 | ) | |||||
Net realized gains (losses) from sales of equity securities | 16.3 | 123.6 | (11.8 | ) | |||||||
Other realized gains on investments | 13.1 | 48.1 | 0.5 | ||||||||
Net realized gains on investments | 177.0 | 271.9 | 334.9 | ||||||||
Other-than-temporary impairment losses recognized in income: | |||||||||||
Fixed maturity securities | (22.3 | ) | (42.5 | ) | (11.8 | ) | |||||
Equity securities | (13.5 | ) | (13.9 | ) | (17.5 | ) | |||||
Other invested assets, long-term | (13.2 | ) | (42.5 | ) | (8.5 | ) | |||||
Other-than-temporary impairment losses recognized in income | (49.0 | ) | (98.9 | ) | (37.8 | ) | |||||
Change in net unrealized gains (losses) on investments: | |||||||||||
Fixed maturity securities | 145.2 | (679.8 | ) | 199.8 | |||||||
Equity securities | 36.5 | 225.4 | 94.7 | ||||||||
Total change in net unrealized gains (losses) on investments | 181.7 | (454.4 | ) | 294.5 | |||||||
Deferred income tax (expense) benefit | (63.1 | ) | 159.7 | (104.6 | ) | ||||||
Net change in net unrealized gains (losses) on investments | 118.6 | (294.7 | ) | 189.9 | |||||||
Net realized gains on investments, other-than-temporary impairment losses recognized in income and net change in net unrealized gains (losses) on investments | $ | 246.6 | $ | (121.7 | ) | $ | 487.0 |
2014 | 2013 | 2012 | |||||||||
Proceeds | $ | 10,255.9 | $ | 13,662.8 | $ | 15,915.6 | |||||
Gross realized gains | 317.8 | 498.1 | 483.5 | ||||||||
Gross realized losses | (140.8 | ) | (226.2 | ) | (148.6 | ) |
2015 | $ | 148.7 | |
2016 | 132.1 | ||
2017 | 125.0 | ||
2018 | 115.8 | ||
2019 | 99.6 | ||
Thereafter | 274.9 | ||
Total minimum payments required | $ | 896.1 |
Years Ended December 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Gross medical claims payable, beginning of year | $ | 6,127.2 | $ | 6,174.5 | $ | 5,489.0 | |||||
Ceded medical claims payable, beginning of year | (23.4 | ) | (27.2 | ) | (16.4 | ) | |||||
Net medical claims payable, beginning of year | 6,103.8 | 6,147.3 | 5,472.6 | ||||||||
Business combinations and purchase adjustments | — | — | 804.4 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 56,305.8 | 55,894.3 | 48,080.1 | ||||||||
Prior years redundancies | (541.9 | ) | (599.1 | ) | (513.6 | ) | |||||
Total net incurred medical claims | 55,763.9 | 55,295.2 | 47,566.5 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 50,353.9 | 49,887.2 | 42,832.4 | ||||||||
Prior years medical claims | 5,420.0 | 5,451.5 | 4,863.8 | ||||||||
Total net payments | 55,773.9 | 55,338.7 | 47,696.2 | ||||||||
Net medical claims payable, end of year | 6,093.8 | 6,103.8 | 6,147.3 | ||||||||
Ceded medical claims payable, end of year | 767.4 | 23.4 | 27.2 | ||||||||
Gross medical claims payable, end of year | $ | 6,861.2 | $ | 6,127.2 | $ | 6,174.5 |
Favorable Developments by Changes in Key Assumptions | |||||||||||
2014 | 2013 | 2012 | |||||||||
Assumed trend factors | $ | (399.5 | ) | $ | (428.4 | ) | $ | (394.4 | ) | ||
Assumed completion factors | (142.4 | ) | (170.7 | ) | (119.2 | ) | |||||
Total | $ | (541.9 | ) | $ | (599.1 | ) | $ | (513.6 | ) |
Current assets | $ | 2,716.5 | |
Goodwill | 3,062.0 | ||
Other intangible assets | 975.0 | ||
Other noncurrent assets | 406.1 | ||
Total assets acquired | 7,159.6 | ||
Current liabilities | 1,416.6 | ||
Noncurrent liabilities | 967.5 | ||
Total liabilities assumed | 2,384.1 | ||
Net assets acquired | $ | 4,775.5 |
2013 | 2012 | ||||||||
Revenues | $ | 434.7 | $ | 214.5 | |||||
Income from discontinued operations before tax | $ | 17.3 | $ | 7.2 | |||||
Income tax (benefit) expense | (2.6 | ) | 2.7 | ||||||
Income from discontinued operations | 19.9 | 4.5 | |||||||
Loss on disposal from discontinued operations, net of tax | (164.5 | ) | — | ||||||
(Loss) income from discontinued operations, net of tax | $ | (144.6 | ) | $ | 4.5 |
Assets | ||||||
Cash and cash equivalents | $ | 4.8 | ||||
Property and equipment | 27.6 | |||||
Goodwill | 409.9 | |||||
Other intangibles | 415.4 | |||||
Other assets | 49.2 | |||||
Total assets | $ | 906.9 | ||||
Liabilities | ||||||
Accounts payable and other accrued expenses | $ | 34.2 | ||||
Deferred income taxes | 142.5 | |||||
Other liabilities | 4.7 | |||||
Total liabilities | $ | 181.4 |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Benefit obligation at beginning of year | $ | 1,764.7 | $ | 1,948.5 | $ | 607.5 | $ | 623.0 | |||||||
Service cost | 13.0 | 14.2 | 3.2 | 6.7 | |||||||||||
Interest cost | 74.1 | 67.8 | 26.3 | 22.4 | |||||||||||
Actuarial loss (gain) | 185.4 | (129.9 | ) | 45.3 | 4.8 | ||||||||||
Benefits paid | (122.8 | ) | (135.9 | ) | (35.7 | ) | (49.4 | ) | |||||||
Benefit obligation at end of year | $ | 1,914.4 | $ | 1,764.7 | $ | 646.6 | $ | 607.5 |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Fair value of plan assets at beginning of year | $ | 1,944.0 | $ | 1,817.9 | $ | 349.8 | $ | 320.3 | |||||||
Actual return on plan assets | 160.2 | 223.4 | 17.7 | 37.0 | |||||||||||
Employer contributions | 3.6 | 38.6 | 16.1 | 31.3 | |||||||||||
Benefits paid | (122.8 | ) | (135.9 | ) | (35.7 | ) | (38.8 | ) | |||||||
Fair value of plan assets at end of year | $ | 1,985.0 | $ | 1,944.0 | $ | 347.9 | $ | 349.8 |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Noncurrent assets | $ | 146.3 | $ | 240.8 | $ | — | $ | — | |||||||
Current liabilities | (4.3 | ) | (3.5 | ) | — | — | |||||||||
Noncurrent liabilities | (71.4 | ) | (58.0 | ) | (298.7 | ) | (257.7 | ) | |||||||
Net amount at December 31 | $ | 70.6 | $ | 179.3 | $ | (298.7 | ) | $ | (257.7 | ) |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net actuarial loss | $ | 563.7 | $ | 427.2 | $ | 211.2 | $ | 169.6 | |||||||
Prior service credit | (2.2 | ) | (3.0 | ) | (88.0 | ) | (102.4 | ) | |||||||
Net amount before tax at December 31 | $ | 561.5 | $ | 424.2 | $ | 123.2 | $ | 67.2 |
Pension Benefits | Other Benefits | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Discount rate | 3.66 | % | 4.39 | % | 3.74 | % | 4.48 | % | |||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||
Expected rate of return on plan assets | 7.62 | % | 7.66 | % | 7.00 | % | 7.00 | % |
2014 | 2013 | 2012 | |||||||||
Pension Benefits | |||||||||||
Service cost | $ | 13.0 | $ | 14.2 | $ | 16.4 | |||||
Interest cost | 74.1 | 67.8 | 76.4 | ||||||||
Expected return on assets | (137.5 | ) | (133.1 | ) | (134.7 | ) | |||||
Recognized actuarial loss | 21.0 | 28.3 | 30.5 | ||||||||
Amortization of prior service credit | (0.8 | ) | (0.8 | ) | (0.8 | ) | |||||
Settlement loss | 5.2 | 11.0 | 13.8 | ||||||||
Net periodic (credit) benefit cost | $ | (25.0 | ) | $ | (12.6 | ) | $ | 1.6 | |||
Other Benefits | |||||||||||
Service cost | $ | 3.2 | $ | 6.7 | $ | 6.8 | |||||
Interest cost | 26.3 | 22.4 | 27.5 | ||||||||
Expected return on assets | (23.4 | ) | (22.1 | ) | (21.0 | ) | |||||
Recognized actuarial loss | 9.4 | 11.2 | 14.1 | ||||||||
Amortization of prior service credit | (14.4 | ) | (13.3 | ) | (13.3 | ) | |||||
Net periodic benefit cost | $ | 1.1 | $ | 4.9 | $ | 14.1 |
2014 | 2013 | 2012 | ||||||
Pension Benefits | ||||||||
Discount rate | 4.39 | % | 3.60 | % | 4.29 | % | ||
Rate of compensation increase | 3.00 | % | 3.50 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.66 | % | 7.91 | % | 8.00 | % | ||
Other Benefits | ||||||||
Discount rate | 4.48 | % | 3.71 | % | 4.36 | % | ||
Rate of compensation increase | 3.00 | % | 3.50 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.00 | % | 7.00 | % | 7.00 | % |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2014 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 591.2 | $ | 4.5 | $ | — | $ | 595.7 | |||||||
Foreign securities | 246.2 | — | — | 246.2 | |||||||||||
Mutual funds | 36.8 | — | — | 36.8 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 206.5 | 11.5 | — | 218.0 | |||||||||||
Corporate securities | — | 373.6 | — | 373.6 | |||||||||||
Asset-backed securities | — | 170.0 | — | 170.0 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 37.1 | — | 37.1 | |||||||||||
Partnership interests | — | — | 120.7 | 120.7 | |||||||||||
Insurance company contracts | — | — | 187.7 | 187.7 | |||||||||||
Treasury futures contracts | (0.9 | ) | — | — | (0.9 | ) | |||||||||
Total pension benefit assets | $ | 1,079.8 | $ | 596.7 | $ | 308.4 | $ | 1,984.9 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 22.0 | $ | 0.3 | $ | — | $ | 22.3 | |||||||
Foreign securities | 9.5 | — | — | 9.5 | |||||||||||
Mutual funds | 33.6 | — | — | 33.6 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 6.2 | — | — | 6.2 | |||||||||||
Corporate securities | — | 10.0 | — | 10.0 | |||||||||||
Asset-backed securities | — | 10.5 | — | 10.5 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 1.4 | — | 1.4 | |||||||||||
Partnership interests | — | — | 1.5 | 1.5 | |||||||||||
Life insurance contracts | — | — | 238.4 | 238.4 | |||||||||||
Investment in DOL 103-12 trust | — | 14.8 | — | 14.8 | |||||||||||
Total other benefit assets | $ | 71.3 | $ | 37.0 | $ | 239.9 | $ | 348.2 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2013 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 613.8 | $ | — | $ | — | $ | 613.8 | |||||||
Foreign securities | 296.8 | — | — | 296.8 | |||||||||||
Mutual funds | 37.4 | — | — | 37.4 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 177.9 | 11.5 | — | 189.4 | |||||||||||
Corporate securities | — | 272.1 | — | 272.1 | |||||||||||
Asset-backed securities | — | 127.0 | — | 127.0 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 46.6 | — | 46.6 | |||||||||||
Partnership interests | — | — | 159.1 | 159.1 | |||||||||||
Insurance company contracts | — | — | 197.4 | 197.4 | |||||||||||
Treasury futures contracts | 0.7 | — | — | 0.7 | |||||||||||
Total pension benefit assets | $ | 1,126.6 | $ | 457.2 | $ | 356.5 | $ | 1,940.3 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 39.0 | $ | — | $ | — | $ | 39.0 | |||||||
Foreign securities | 18.6 | — | — | 18.6 | |||||||||||
Mutual funds | 4.7 | — | — | 4.7 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 14.3 | — | — | 14.3 | |||||||||||
Corporate securities | 4.3 | 9.9 | — | 14.2 | |||||||||||
Asset-backed securities | — | 11.2 | — | 11.2 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 2.2 | — | 2.2 | |||||||||||
Partnership interests | — | — | 1.2 | 1.2 | |||||||||||
Life insurance contracts | — | — | 230.0 | 230.0 | |||||||||||
Investment in DOL 103-12 trust | — | 14.2 | — | 14.2 | |||||||||||
Total other benefit assets | $ | 80.9 | $ | 37.5 | $ | 231.2 | $ | 349.6 |
U.S. Equity Securities | Partnership Interests | Insurance Company Contracts | Life Insurance Contracts | Total | |||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
Beginning balance at January 1, 2014 | $ | — | $ | 160.3 | $ | 197.4 | $ | 230.0 | $ | 587.7 | |||||||||
Actual return on plan assets: | |||||||||||||||||||
Relating to assets still held at the reporting date | — | (5.4 | ) | 1.4 | 8.4 | 4.4 | |||||||||||||
Purchases | — | 8.4 | 11.6 | — | 20.0 | ||||||||||||||
Sales | — | (41.1 | ) | (22.7 | ) | — | (63.8 | ) | |||||||||||
Ending balance at December 31, 2014 | $ | — | $ | 122.2 | $ | 187.7 | $ | 238.4 | $ | 548.3 | |||||||||
Year ended December 31, 2013 | |||||||||||||||||||
Beginning balance at January 1, 2013 | $ | — | $ | 177.7 | $ | 202.5 | $ | 203.7 | $ | 583.9 | |||||||||
Actual return on plan assets: | |||||||||||||||||||
Relating to assets still held at the reporting date | — | 2.2 | (5.6 | ) | 26.3 | 22.9 | |||||||||||||
Purchases | — | 15.6 | 9.5 | — | 25.1 | ||||||||||||||
Sales | — | (35.2 | ) | (9.0 | ) | — | (44.2 | ) | |||||||||||
Ending balance at December 31, 2013 | $ | — | $ | 160.3 | $ | 197.4 | $ | 230.0 | $ | 587.7 | |||||||||
Year ended December 31, 2012 | |||||||||||||||||||
Beginning balance at January 1, 2012 | $ | 317.6 | $ | 166.1 | $ | 195.5 | $ | 95.7 | $ | 774.9 | |||||||||
Actual return on plan assets: | |||||||||||||||||||
Relating to assets still held at the reporting date | — | 4.5 | 5.5 | 13.2 | 23.2 | ||||||||||||||
Purchases | — | 14.1 | 8.8 | 94.8 | 117.7 | ||||||||||||||
Sales | (317.6 | ) | (7.0 | ) | (7.3 | ) | — | (331.9 | ) | ||||||||||
Ending balance at December 31, 2012 | $ | — | $ | 177.7 | $ | 202.5 | $ | 203.7 | $ | 583.9 |
Pension Benefits | Other Benefits | ||||||
2015 | $ | 148.8 | $ | 40.8 | |||
2016 | 152.6 | 41.4 | |||||
2017 | 146.7 | 42.4 | |||||
2018 | 143.4 | 43.3 | |||||
2019 | 142.8 | 43.8 | |||||
2020 – 2024 | 619.3 | 213.5 |
2014 | 2013 | ||||||
Land and improvements | $ | 25.8 | $ | 35.4 | |||
Building and components | 279.9 | 384.0 | |||||
Data processing equipment, furniture and other equipment | 940.3 | 861.5 | |||||
Computer software, purchased and internally developed | 2,162.4 | 1,879.0 | |||||
Leasehold improvements | 356.4 | 325.1 | |||||
Property and equipment, gross | 3,764.8 | 3,485.0 | |||||
Accumulated depreciation and amortization | (1,820.5 | ) | (1,683.5 | ) | |||
Property and equipment, net | $ | 1,944.3 | $ | 1,801.5 |
2014 | 2013 | ||||||
Land and improvements | $ | 25.8 | $ | 35.4 | |||
Building and components | 279.9 | 384.0 | |||||
Data processing equipment, furniture and other equipment | 940.3 | 861.5 | |||||
Computer software, purchased and internally developed | 2,162.4 | 1,879.0 | |||||
Leasehold improvements | 356.4 | 325.1 | |||||
Property and equipment, gross | 3,764.8 | 3,485.0 | |||||
Accumulated depreciation and amortization | (1,820.5 | ) | (1,683.5 | ) | |||
Property and equipment, net | $ | 1,944.3 | $ | 1,801.5 |
For the Quarter Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
2014 | |||||||||||||||
Total revenues | $ | 17,859.4 | $ | 18,473.4 | $ | 18,557.0 | $ | 18,984.3 | |||||||
Income from continuing operations before income taxes | 1,130.1 | 1,263.7 | 1,087.2 | 887.1 | |||||||||||
Income from continuing operations | 691.4 | 731.1 | 630.9 | 506.7 | |||||||||||
Income from discontinued operations | 9.6 | — | — | — | |||||||||||
Net income | 701.0 | 731.1 | 630.9 | 506.7 | |||||||||||
Basic net income per share - continuing operations | $ | 2.43 | $ | 2.64 | $ | 2.31 | $ | 1.88 | |||||||
Basic net income per share - discontinued operations | 0.03 | — | — | — | |||||||||||
Basic net income per share | 2.46 | 2.64 | 2.31 | 1.88 | |||||||||||
Diluted net income per share - continuing operations | $ | 2.37 | $ | 2.56 | $ | 2.22 | $ | 1.80 | |||||||
Diluted net income per share - discontinued operations | 0.03 | — | — | — | |||||||||||
Diluted net income per share | 2.40 | 2.56 | 2.22 | 1.80 | |||||||||||
2013 | |||||||||||||||
Total revenues | $ | 17,576.0 | $ | 17,690.3 | $ | 17,855.5 | $ | 17,901.7 | |||||||
Income from continuing operations before income taxes | 1,282.5 | 1,208.1 | 879.7 | 469.9 | |||||||||||
Income from continuing operations | 872.3 | 799.3 | 653.8 | 308.9 | |||||||||||
Income (loss) from discontinued operations | 12.9 | 0.8 | 2.4 | (160.7 | ) | ||||||||||
Net income | 885.2 | 800.1 | 656.2 | 148.2 | |||||||||||
Basic net income per share - continuing operations | $ | 2.88 | $ | 2.67 | $ | 2.20 | $ | 1.05 | |||||||
Basic net income (loss) per share - discontinued operations | 0.04 | — | 0.01 | (0.55 | ) | ||||||||||
Basic net income per share | 2.92 | 2.67 | 2.21 | 0.50 | |||||||||||
Diluted net income per share - continuing operations | $ | 2.85 | $ | 2.64 | $ | 2.15 | $ | 1.02 | |||||||
Diluted net income (loss) per share - discontinued operations | 0.04 | — | 0.01 | (0.53 | ) | ||||||||||
Diluted net income per share | 2.89 | 2.64 | 2.16 | 0.49 |
2014 | 2013 | 2012 | |||||||||
Proceeds | $ | 10,255.9 | $ | 13,662.8 | $ | 15,915.6 | |||||
Gross realized gains | 317.8 | 498.1 | 483.5 | ||||||||
Gross realized losses | (140.8 | ) | (226.2 | ) | (148.6 | ) |
2014 | 2013 | 2012 | |||||||||
Reportable segments operating gain | $ | 4,418.4 | $ | 4,001.4 | $ | 3,619.9 | |||||
Net investment income | 724.4 | 659.1 | 686.1 | ||||||||
Net realized gains on investments | 177.0 | 271.9 | 334.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (49.0 | ) | (98.9 | ) | (37.8 | ) | |||||
Interest expense | (600.7 | ) | (602.7 | ) | (511.8 | ) | |||||
Amortization of other intangible assets | (220.9 | ) | (245.3 | ) | (233.0 | ) | |||||
Loss on extinguishment of debt | (81.1 | ) | (145.3 | ) | — | ||||||
Income from continuing operations before income tax expense | $ | 4,368.1 | $ | 3,840.2 | $ | 3,858.3 |
2014 | 2013 | 2012 | |||||||||
Reportable segments operating revenues | $ | 73,021.7 | $ | 70,191.4 | $ | 60,514.0 | |||||
Net investment income | 724.4 | 659.1 | 686.1 | ||||||||
Net realized gains on investments | 177.0 | 271.9 | 334.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (49.0 | ) | (98.9 | ) | (37.8 | ) | |||||
Total revenues | $ | 73,874.1 | $ | 71,023.5 | $ | 61,497.2 |
2014 | 2013 | 2012 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 68,628.6 | $ | 68,304.3 | $ | 65,939.1 | $ | 66,038.9 | $ | 56,443.6 | $ | 56,373.6 | |||||||||||
Assumed | 192.3 | 194.0 | 174.3 | 174.0 | 197.0 | 196.4 | |||||||||||||||||
Ceded | (108.5 | ) | (108.5 | ) | (92.6 | ) | (93.8 | ) | (73.2 | ) | (73.3 | ) | |||||||||||
Net premiums | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 | $ | 56,567.4 | $ | 56,496.7 | |||||||||||
Percentage—assumed to net premiums | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % |
2014 | 2013 | 2012 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Reportable segments: | |||||||||||||||||||||||
Commercial and Specialty Business | $ | 35,084.7 | $ | 35,045.2 | $ | 35,733.9 | $ | 35,772.0 | $ | 35,358.1 | $ | 36,036.7 | |||||||||||
Government Business | 33,627.7 | 33,344.6 | 30,286.9 | 30,347.1 | 21,209.3 | 20,460.0 | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Net premiums | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 | $ | 56,567.4 | $ | 56,496.7 |
2014 | 2013 | 2012 | |||||||||
Direct | $ | 57,496.6 | $ | 56,185.2 | $ | 48,135.1 | |||||
Assumed | 182.4 | 155.6 | 173.0 | ||||||||
Ceded | (824.1 | ) | (103.7 | ) | (94.5 | ) | |||||
Net benefit expense | $ | 56,854.9 | $ | 56,237.1 | $ | 48,213.6 |
2014 | 2013 | ||||||
Policy liabilities, assumed | $ | 57.4 | $ | 55.4 | |||
Unearned income, assumed | 0.4 | 0.4 | |||||
Premiums payable, ceded | 7.7 | 17.1 | |||||
Premiums receivable, assumed | 5.4 | 14.1 |
2014 | 2013 | ||||||
Investments: | |||||||
Gross unrealized gains | $ | 1,154.9 | $ | 1,054.2 | |||
Gross unrealized losses | (196.8 | ) | (277.8 | ) | |||
Net pretax unrealized gains | 958.1 | 776.4 | |||||
Deferred tax liability | (330.5 | ) | (267.4 | ) | |||
Net unrealized gains on investments | 627.6 | 509.0 | |||||
Non-credit components of OTTI on investments: | |||||||
Gross unrealized losses | (6.8 | ) | (0.8 | ) | |||
Deferred tax asset | 2.4 | 0.3 | |||||
Net unrealized non-credit component of OTTI on investments | (4.4 | ) | (0.5 | ) | |||
Cash flow hedges: | |||||||
Gross unrealized losses | (55.2 | ) | (49.7 | ) | |||
Deferred tax asset | 19.3 | 17.4 | |||||
Net unrealized losses on cash flow hedges | (35.9 | ) | (32.3 | ) | |||
Defined benefit pension plans: | |||||||
Deferred net actuarial loss | (563.7 | ) | (427.2 | ) | |||
Deferred prior service credits | 2.2 | 3.0 | |||||
Deferred tax asset | 223.2 | 169.9 | |||||
Net unrecognized periodic benefit costs for defined benefit pension plans | (338.3 | ) | (254.3 | ) | |||
Postretirement benefit plans: | |||||||
Deferred net actuarial loss | (211.2 | ) | (169.6 | ) | |||
Deferred prior service credits | 88.0 | 102.4 | |||||
Deferred tax asset | 48.9 | 27.0 | |||||
Net unrecognized periodic benefit costs for postretirement benefit plans | (74.3 | ) | (40.2 | ) | |||
Foreign currency translation adjustments: | |||||||
Gross unrealized (losses) gains | (4.3 | ) | 2.2 | ||||
Deferred tax asset (liability) | 1.5 | (0.7 | ) | ||||
Net unrealized (losses) gains on foreign currency translation adjustments | (2.8 | ) | 1.5 | ||||
Accumulated other comprehensive income | $ | 171.9 | $ | 183.2 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2014 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 591.2 | $ | 4.5 | $ | — | $ | 595.7 | |||||||
Foreign securities | 246.2 | — | — | 246.2 | |||||||||||
Mutual funds | 36.8 | — | — | 36.8 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 206.5 | 11.5 | — | 218.0 | |||||||||||
Corporate securities | — | 373.6 | — | 373.6 | |||||||||||
Asset-backed securities | — | 170.0 | — | 170.0 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 37.1 | — | 37.1 | |||||||||||
Partnership interests | — | — | 120.7 | 120.7 | |||||||||||
Insurance company contracts | — | — | 187.7 | 187.7 | |||||||||||
Treasury futures contracts | (0.9 | ) | — | — | (0.9 | ) | |||||||||
Total pension benefit assets | $ | 1,079.8 | $ | 596.7 | $ | 308.4 | $ | 1,984.9 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 22.0 | $ | 0.3 | $ | — | $ | 22.3 | |||||||
Foreign securities | 9.5 | — | — | 9.5 | |||||||||||
Mutual funds | 33.6 | — | — | 33.6 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 6.2 | — | — | 6.2 | |||||||||||
Corporate securities | — | 10.0 | — | 10.0 | |||||||||||
Asset-backed securities | — | 10.5 | — | 10.5 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 1.4 | — | 1.4 | |||||||||||
Partnership interests | — | — | 1.5 | 1.5 | |||||||||||
Life insurance contracts | — | — | 238.4 | 238.4 | |||||||||||
Investment in DOL 103-12 trust | — | 14.8 | — | 14.8 | |||||||||||
Total other benefit assets | $ | 71.3 | $ | 37.0 | $ | 239.9 | $ | 348.2 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2013 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 613.8 | $ | — | $ | — | $ | 613.8 | |||||||
Foreign securities | 296.8 | — | — | 296.8 | |||||||||||
Mutual funds | 37.4 | — | — | 37.4 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 177.9 | 11.5 | — | 189.4 | |||||||||||
Corporate securities | — | 272.1 | — | 272.1 | |||||||||||
Asset-backed securities | — | 127.0 | — | 127.0 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 46.6 | — | 46.6 | |||||||||||
Partnership interests | — | — | 159.1 | 159.1 | |||||||||||
Insurance company contracts | — | — | 197.4 | 197.4 | |||||||||||
Treasury futures contracts | 0.7 | — | — | 0.7 | |||||||||||
Total pension benefit assets | $ | 1,126.6 | $ | 457.2 | $ | 356.5 | $ | 1,940.3 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 39.0 | $ | — | $ | — | $ | 39.0 | |||||||
Foreign securities | 18.6 | — | — | 18.6 | |||||||||||
Mutual funds | 4.7 | — | — | 4.7 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 14.3 | — | — | 14.3 | |||||||||||
Corporate securities | 4.3 | 9.9 | — | 14.2 | |||||||||||
Asset-backed securities | — | 11.2 | — | 11.2 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 2.2 | — | 2.2 | |||||||||||
Partnership interests | — | — | 1.2 | 1.2 | |||||||||||
Life insurance contracts | — | — | 230.0 | 230.0 | |||||||||||
Investment in DOL 103-12 trust | — | 14.2 | — | 14.2 | |||||||||||
Total other benefit assets | $ | 80.9 | $ | 37.5 | $ | 231.2 | $ | 349.6 |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Noncurrent assets | $ | 146.3 | $ | 240.8 | $ | — | $ | — | |||||||
Current liabilities | (4.3 | ) | (3.5 | ) | — | — | |||||||||
Noncurrent liabilities | (71.4 | ) | (58.0 | ) | (298.7 | ) | (257.7 | ) | |||||||
Net amount at December 31 | $ | 70.6 | $ | 179.3 | $ | (298.7 | ) | $ | (257.7 | ) |
Non-Credit Component of Other-Than- Temporary Impairments Recognized in AOCI | |||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 315.7 | $ | 4.6 | $ | (0.3 | ) | $ | — | $ | 320.0 | $ | — | ||||||||||
Government sponsored securities | 94.6 | 0.8 | — | (0.4 | ) | 95.0 | — | ||||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,451.4 | 287.0 | (1.8 | ) | (3.0 | ) | 5,733.6 | — | |||||||||||||||
Corporate securities | 8,335.9 | 162.9 | (123.1 | ) | (43.2 | ) | 8,332.5 | (6.8 | ) | ||||||||||||||
Options embedded in convertible securities | 98.7 | — | — | — | 98.7 | — | |||||||||||||||||
Residential mortgage-backed securities | 2,099.7 | 68.9 | (1.0 | ) | (8.6 | ) | 2,159.0 | — | |||||||||||||||
Commercial mortgage-backed securities | 504.8 | 6.1 | (0.6 | ) | (0.4 | ) | 509.9 | — | |||||||||||||||
Other debt securities | 720.3 | 6.1 | (1.7 | ) | (1.6 | ) | 723.1 | — | |||||||||||||||
Total fixed maturity securities | 17,621.1 | 536.4 | (128.5 | ) | (57.2 | ) | 17,971.8 | $ | (6.8 | ) | |||||||||||||
Equity securities | 1,330.7 | 618.5 | (11.1 | ) | — | 1,938.1 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,951.8 | $ | 1,154.9 | $ | (139.6 | ) | $ | (57.2 | ) | $ | 19,909.9 | |||||||||||
December 31, 2013 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 300.8 | $ | 2.5 | $ | (3.4 | ) | $ | — | $ | 299.9 | $ | — | ||||||||||
Government sponsored securities | 174.4 | 0.4 | (1.3 | ) | — | 173.5 | — | ||||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,899.5 | 202.9 | (90.1 | ) | (9.6 | ) | 6,002.7 | (0.6 | ) | ||||||||||||||
Corporate securities | 7,614.1 | 205.2 | (95.2 | ) | (15.5 | ) | 7,708.6 | (0.1 | ) | ||||||||||||||
Options embedded in convertible securities | 89.2 | — | — | — | 89.2 | — | |||||||||||||||||
Residential mortgage-backed securities | 2,269.4 | 48.0 | (41.4 | ) | (7.1 | ) | 2,268.9 | — | |||||||||||||||
Commercial mortgage-backed securities | 479.0 | 10.5 | (2.6 | ) | (0.3 | ) | 486.6 | — | |||||||||||||||
Other debt securities | 456.2 | 5.8 | (2.5 | ) | (0.8 | ) | 458.7 | (0.1 | ) | ||||||||||||||
Total fixed maturity securities | 17,282.6 | 475.3 | (236.5 | ) | (33.3 | ) | 17,488.1 | $ | (0.8 | ) | |||||||||||||
Equity securities | 1,195.9 | 578.9 | (8.0 | ) | — | 1,766.8 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,478.5 | $ | 1,054.2 | $ | (244.5 | ) | $ | (33.3 | ) | $ | 19,254.9 |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Fair value of plan assets at beginning of year | $ | 1,944.0 | $ | 1,817.9 | $ | 349.8 | $ | 320.3 | |||||||
Actual return on plan assets | 160.2 | 223.4 | 17.7 | 37.0 | |||||||||||
Employer contributions | 3.6 | 38.6 | 16.1 | 31.3 | |||||||||||
Benefits paid | (122.8 | ) | (135.9 | ) | (35.7 | ) | (38.8 | ) | |||||||
Fair value of plan assets at end of year | $ | 1,985.0 | $ | 1,944.0 | $ | 347.9 | $ | 349.8 |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Benefit obligation at beginning of year | $ | 1,764.7 | $ | 1,948.5 | $ | 607.5 | $ | 623.0 | |||||||
Service cost | 13.0 | 14.2 | 3.2 | 6.7 | |||||||||||
Interest cost | 74.1 | 67.8 | 26.3 | 22.4 | |||||||||||
Actuarial loss (gain) | 185.4 | (129.9 | ) | 45.3 | 4.8 | ||||||||||
Benefits paid | (122.8 | ) | (135.9 | ) | (35.7 | ) | (49.4 | ) | |||||||
Benefit obligation at end of year | $ | 1,914.4 | $ | 1,764.7 | $ | 646.6 | $ | 607.5 |
2014 | 2013 | 2012 | |||||||||
Current tax expense (benefit): | |||||||||||
Federal | $ | 1,629.4 | $ | 1,226.4 | $ | 1,060.2 | |||||
State and local | 65.8 | (42.6 | ) | 95.7 | |||||||
Total current tax expense | 1,695.2 | 1,183.8 | 1,155.9 | ||||||||
Deferred tax expense | 112.8 | 22.1 | 51.4 | ||||||||
Total income tax expense | $ | 1,808.0 | $ | 1,205.9 | $ | 1,207.3 |
2014 | 2013 | ||||||
Senior unsecured notes: | |||||||
5.000%, due 2014 | $ | — | $ | 518.0 | |||
1.250%, due 2015 | 625.0 | 624.9 | |||||
5.250%, due 2016 | — | 1,109.6 | |||||
2.375%, due 2017 | 400.1 | 399.6 | |||||
5.875%, due 2017 | 527.7 | 545.1 | |||||
1.875%, due 2018 | 619.0 | 614.5 | |||||
2.300%, due 2018 | 648.0 | 647.5 | |||||
2.250%, due 2019 | 848.2 | — | |||||
7.000%, due 2019 | 440.0 | 452.9 | |||||
4.350%, due 2020 | 698.6 | 688.9 | |||||
3.700%, due 2021 | 699.4 | 699.4 | |||||
3.125%, due 2022 | 846.7 | 846.3 | |||||
3.300%, due 2023 | 997.2 | 996.9 | |||||
3.500%, due 2024 | 796.1 | — | |||||
5.950%, due 2034 | 447.3 | 447.3 | |||||
5.850%, due 2036 | 772.0 | 775.6 | |||||
6.375%, due 2037 | 644.1 | 651.4 | |||||
5.800%, due 2040 | 208.3 | 216.2 | |||||
4.625%, due 2042 | 893.9 | 893.9 | |||||
4.650%, due 2043 | 994.4 | 994.4 | |||||
4.650%, due 2044 | 798.3 | — | |||||
5.100%, due 2044 | 599.2 | 599.1 | |||||
4.850%, due 2054 | 249.4 | — | |||||
Senior convertible debentures: | |||||||
2.750%, due 2042 | 974.4 | 966.0 | |||||
Surplus notes: | |||||||
9.000%, due 2027 | 24.9 | 24.9 | |||||
Variable rate debt: | |||||||
Commercial paper program | — | 379.2 | |||||
Total long-term debt | 14,752.2 | 14,091.6 | |||||
Current portion of long-term debt | (625.0 | ) | (518.0 | ) | |||
Long-term debt, less current portion | $ | 14,127.2 | $ | 13,573.6 |
2014 | 2013 | ||||||
Deferred tax assets relating to: | |||||||
Retirement benefits | $ | 357.7 | $ | 287.8 | |||
Accrued expenses | 329.9 | 342.8 | |||||
Insurance reserves | 209.7 | 213.1 | |||||
Net operating loss carryforwards | 14.8 | 17.2 | |||||
Bad debt reserves | 132.9 | 124.8 | |||||
State income tax | 40.6 | 32.9 | |||||
Deferred compensation | 46.6 | 52.0 | |||||
Investment basis difference | 88.2 | 166.3 | |||||
Other | 34.2 | 84.0 | |||||
Total deferred tax assets | 1,254.6 | 1,320.9 | |||||
Valuation allowance | (2.6 | ) | (24.1 | ) | |||
Total deferred tax assets, net of valuation allowance | 1,252.0 | 1,296.8 | |||||
Deferred tax liabilities relating to: | |||||||
Unrealized gains on securities | 331.4 | 266.5 | |||||
Acquisition related: | |||||||
Trademarks and other non-amortizable intangible assets | 2,200.5 | 2,200.5 | |||||
Subscriber base, provider and hospital networks | 301.1 | 370.9 | |||||
Internally developed software and other amortization differences | 654.9 | 703.9 | |||||
Retirement benefits | 241.1 | 231.5 | |||||
Debt discount | 184.0 | 186.9 | |||||
State deferred tax | 49.1 | 55.3 | |||||
Depreciation and amortization | 29.6 | 33.1 | |||||
Other | 205.9 | 190.4 | |||||
Total deferred tax liabilities | 4,197.6 | 4,239.0 | |||||
Net deferred tax liability | $ | (2,945.6 | ) | $ | (2,942.2 | ) | |
Deferred tax asset-current | $ | 280.4 | $ | 383.0 | |||
Deferred tax liability-noncurrent | (3,226.0 | ) | (3,325.2 | ) | |||
Net deferred tax liability | $ | (2,945.6 | ) | $ | (2,942.2 | ) |
Effective Portion | ||||||||||||||||
Pretax Hedge Loss Recognized in Other Comprehensive (Loss) Income | Income Statement Location of Loss Reclassification from Accumulated Other Comprehensive Income | Hedge Loss Reclassified from Accumulated Other Comprehensive Income | Ineffective Portion | |||||||||||||
Type of Cash Flow Hedge | Income Statement Location of Loss Recognized | Hedge Loss Recognized | ||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Forward starting pay fixed swaps | $ | — | Interest expense | $ | (5.0 | ) | None | $ | — | |||||||
Year ended December 31, 2013 | ||||||||||||||||
Forward starting pay fixed swaps | $ | — | Interest expense | $ | (4.6 | ) | None | $ | — | |||||||
Year ended December 31, 2012 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (4.0 | ) | Interest expense | $ | (4.2 | ) | Interest expense | $ | (0.1 | ) |
Type of Fair Value Hedges | Income Statement Location of Hedge Gain | Hedge Gain Recognized | Hedged Item | Income Statement Location of Hedged Item Loss | Hedged Item Loss Recognized | |||||||||
Year ended December 31, 2014 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 25.5 | Fixed rate debt | Interest expense | $ | (25.5 | ) | ||||||
Year ended December 31, 2013 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 31.5 | Fixed rate debt | Interest expense | $ | (31.5 | ) | ||||||
Year ended December 31, 2012 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 38.2 | Fixed rate debt | Interest expense | $ | (38.2 | ) |
Contractual/ Notional Amount | Balance Sheet Location | Estimated Fair Value | |||||||||||
Asset | (Liability) | ||||||||||||
December 31, 2014 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps | $ | 1,185.0 | Other assets/other liabilities | $ | 2.6 | $ | (7.8 | ) | |||||
Non-hedging instruments | |||||||||||||
Derivatives embedded in convertible fixed maturity securities | 287.0 | Fixed maturity securities | 98.7 | — | |||||||||
Interest rate swaps | 97.9 | Equity securities | — | (9.4 | ) | ||||||||
Options | 12,208.5 | Other assets/other liabilities | 428.0 | (458.4 | ) | ||||||||
Futures | — | Equity securities | 0.5 | (1.5 | ) | ||||||||
Subtotal non-hedging | 12,593.4 | Subtotal non-hedging | 527.2 | (469.3 | ) | ||||||||
Total derivatives | $ | 13,778.4 | Total derivatives | 529.8 | (477.1 | ) | |||||||
Amounts netted | (216.7 | ) | 216.7 | ||||||||||
Net derivatives | $ | 313.1 | $ | (260.4 | ) | ||||||||
December 31, 2013 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps | $ | 1,660.0 | Other assets/other liabilities | $ | 30.9 | $ | (20.7 | ) | |||||
Non-hedging instruments | |||||||||||||
Derivatives embedded in convertible fixed maturity securities | 295.0 | Fixed maturity securities | 89.2 | — | |||||||||
Credit default and interest rate swaps | 72.6 | Equity securities | 1.8 | (2.5 | ) | ||||||||
Options | 14,912.4 | Equity securities/other assets | 776.5 | (787.7 | ) | ||||||||
Futures | — | Equity securities | 3.5 | (1.6 | ) | ||||||||
Subtotal non-hedging | 15,280.0 | Subtotal non-hedging | 871.0 | (791.8 | ) | ||||||||
Total derivatives | $ | 16,940.0 | Total derivatives | 901.9 | (812.5 | ) | |||||||
Amounts netted | (791.8 | ) | 791.8 | ||||||||||
Net derivatives | $ | 110.1 | $ | (20.7 | ) |
Type of Fair Value Hedges | Year Entered Into | Outstanding Notional Amount | Interest Rate Received | Expiration Date | ||||||||||||
2014 | 2013 | |||||||||||||||
Interest rate swap | 2014 | $ | 150.0 | $ | — | 4.350 | % | August 15, 2020 | ||||||||
Interest rate swap | 2013 | 10.0 | 10.0 | 4.350 | August 15, 2020 | |||||||||||
Interest rate swap | 2012 | 200.0 | 200.0 | 4.350 | August 15, 2020 | |||||||||||
Interest rate swap | 2012 | 625.0 | 625.0 | 1.875 | January 15, 2018 | |||||||||||
Interest rate swap | 2012 | 200.0 | 200.0 | 2.375 | February 15, 2017 | |||||||||||
Interest rate swap | 2011 | — | 200.0 | 5.250 | — | |||||||||||
Interest rate swap | 2010 | — | 25.0 | 5.250 | — | |||||||||||
Interest rate swap | 2006 | — | 200.0 | 5.000 | — | |||||||||||
Interest rate swap | 2005 | — | 200.0 | 5.000 | — | |||||||||||
Total notional amount outstanding | $ | 1,185.0 | $ | 1,660.0 |
2014 | 2013 | 2012 | ||||||
Denominator for basic earnings per share—weighted-average shares | 275.9 | 298.5 | 321.5 | |||||
Effect of dilutive securities—employee stock options, non-vested restricted stock awards and convertible debentures | 10.0 | 5.3 | 3.3 | |||||
Denominator for diluted earnings per share | 285.9 | 303.8 | 324.8 |
U.S. Equity Securities | Partnership Interests | Insurance Company Contracts | Life Insurance Contracts | Total | |||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
Beginning balance at January 1, 2014 | $ | — | $ | 160.3 | $ | 197.4 | $ | 230.0 | $ | 587.7 | |||||||||
Actual return on plan assets: | |||||||||||||||||||
Relating to assets still held at the reporting date | — | (5.4 | ) | 1.4 | 8.4 | 4.4 | |||||||||||||
Purchases | — | 8.4 | 11.6 | — | 20.0 | ||||||||||||||
Sales | — | (41.1 | ) | (22.7 | ) | — | (63.8 | ) | |||||||||||
Ending balance at December 31, 2014 | $ | — | $ | 122.2 | $ | 187.7 | $ | 238.4 | $ | 548.3 | |||||||||
Year ended December 31, 2013 | |||||||||||||||||||
Beginning balance at January 1, 2013 | $ | — | $ | 177.7 | $ | 202.5 | $ | 203.7 | $ | 583.9 | |||||||||
Actual return on plan assets: | |||||||||||||||||||
Relating to assets still held at the reporting date | — | 2.2 | (5.6 | ) | 26.3 | 22.9 | |||||||||||||
Purchases | — | 15.6 | 9.5 | — | 25.1 | ||||||||||||||
Sales | — | (35.2 | ) | (9.0 | ) | — | (44.2 | ) | |||||||||||
Ending balance at December 31, 2013 | $ | — | $ | 160.3 | $ | 197.4 | $ | 230.0 | $ | 587.7 | |||||||||
Year ended December 31, 2012 | |||||||||||||||||||
Beginning balance at January 1, 2012 | $ | 317.6 | $ | 166.1 | $ | 195.5 | $ | 95.7 | $ | 774.9 | |||||||||
Actual return on plan assets: | |||||||||||||||||||
Relating to assets still held at the reporting date | — | 4.5 | 5.5 | 13.2 | 23.2 | ||||||||||||||
Purchases | — | 14.1 | 8.8 | 94.8 | 117.7 | ||||||||||||||
Sales | (317.6 | ) | (7.0 | ) | (7.3 | ) | — | (331.9 | ) | ||||||||||
Ending balance at December 31, 2012 | $ | — | $ | 177.7 | $ | 202.5 | $ | 203.7 | $ | 583.9 |
2014 | 2013 | 2012 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Amount at statutory rate | $ | 1,528.8 | 35.0 | % | $ | 1,344.1 | 35.0 | % | $ | 1,350.4 | 35.0 | % | ||||||||
State and local income taxes net of federal tax benefit | 49.0 | 1.1 | 24.4 | 0.6 | 25.5 | 0.6 | ||||||||||||||
Tax exempt interest and dividends received deduction | (65.9 | ) | (1.5 | ) | (64.9 | ) | (1.7 | ) | (59.3 | ) | (1.5 | ) | ||||||||
Health Insurance Provider fee | 312.6 | 7.2 | — | — | — | — | ||||||||||||||
Audit settlements | — | — | — | — | (200.5 | ) | (5.2 | ) | ||||||||||||
Other, net | (16.5 | ) | (0.4 | ) | (97.7 | ) | (2.5 | ) | 91.2 | 2.4 | ||||||||||
Total income tax expense | $ | 1,808.0 | 41.4 | % | $ | 1,205.9 | 31.4 | % | $ | 1,207.3 | 31.3 | % |
2014 | 2013 | 2012 | |||||||||
Commercial and Specialty Business | |||||||||||
Managed care products | $ | 33,755.6 | $ | 34,516.9 | $ | 34,875.4 | |||||
Managed care services | 3,997.8 | 3,474.0 | 3,446.9 | ||||||||
Dental/Vision products and services | 1,037.3 | 952.5 | 903.9 | ||||||||
Other | 408.9 | 460.8 | 413.7 | ||||||||
Total Commercial and Specialty Business | 39,199.6 | 39,404.2 | 39,639.9 | ||||||||
Government Business | |||||||||||
Managed care products | 33,344.6 | 30,347.1 | 20,460.0 | ||||||||
Managed care services | 451.8 | 405.5 | 378.9 | ||||||||
Total Government Business | 33,796.4 | 30,752.6 | 20,838.9 | ||||||||
Other | |||||||||||
Other | 25.7 | 34.6 | 35.2 | ||||||||
Total product revenues | $ | 73,021.7 | $ | 70,191.4 | $ | 60,514.0 |
Pension Benefits | Other Benefits | ||||||
2015 | $ | 148.8 | $ | 40.8 | |||
2016 | 152.6 | 41.4 | |||||
2017 | 146.7 | 42.4 | |||||
2018 | 143.4 | 43.3 | |||||
2019 | 142.8 | 43.8 | |||||
2020 – 2024 | 619.3 | 213.5 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2014 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 573.2 | $ | — | $ | — | $ | 573.2 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 320.0 | — | — | 320.0 | |||||||||||
Government sponsored securities | — | 95.0 | — | 95.0 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 5,733.6 | — | 5,733.6 | |||||||||||
Corporate securities | 7.1 | 8,180.8 | 144.6 | 8,332.5 | |||||||||||
Options embedded in convertible securities | — | 98.7 | — | 98.7 | |||||||||||
Residential mortgage-backed securities | — | 2,159.0 | — | 2,159.0 | |||||||||||
Commercial mortgage-backed securities | — | 506.6 | 3.3 | 509.9 | |||||||||||
Other debt securities | 89.2 | 627.3 | 6.6 | 723.1 | |||||||||||
Total fixed maturity securities | 416.3 | 17,401.0 | 154.5 | 17,971.8 | |||||||||||
Equity securities | 1,696.9 | 192.9 | 48.3 | 1,938.1 | |||||||||||
Other invested assets, current | 20.2 | — | — | 20.2 | |||||||||||
Securities lending collateral | 808.3 | 706.9 | — | 1,515.2 | |||||||||||
Derivatives excluding embedded options (reported with other assets) | — | 224.8 | — | 224.8 | |||||||||||
Total assets | $ | 3,514.9 | $ | 18,525.6 | $ | 202.8 | $ | 22,243.3 | |||||||
Liabilities: | |||||||||||||||
Derivatives excluding embedded options (reported with other liabilities) | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) | |||||
Total liabilities | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) | |||||
December 31, 2013 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 632.3 | $ | — | $ | — | $ | 632.3 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 299.9 | — | — | 299.9 | |||||||||||
Government sponsored securities | — | 173.5 | — | 173.5 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,002.7 | — | 6,002.7 | |||||||||||
Corporate securities | — | 7,593.4 | 115.2 | 7,708.6 | |||||||||||
Options embedded in convertible securities | — | 89.2 | — | 89.2 | |||||||||||
Residential mortgage-backed securities | — | 2,268.9 | — | 2,268.9 | |||||||||||
Commercial mortgage-backed securities | — | 480.1 | 6.5 | 486.6 | |||||||||||
Other debt securities | 35.6 | 408.3 | 14.8 | 458.7 | |||||||||||
Total fixed maturity securities | 335.5 | 17,016.1 | 136.5 | 17,488.1 | |||||||||||
Equity securities | 1,475.7 | 249.7 | 41.4 | 1,766.8 | |||||||||||
Other invested assets, current | 16.3 | — | — | 16.3 | |||||||||||
Securities lending collateral | 408.5 | 561.3 | — | 969.8 | |||||||||||
Derivatives excluding embedded options (reported with other assets) | — | 58.4 | — | 58.4 | |||||||||||
Total assets | $ | 2,868.3 | $ | 17,885.5 | $ | 177.9 | $ | 20,931.7 | |||||||
Liabilities: | |||||||||||||||
Derivatives excluding embedded options (reported with other liabilities) | $ | — | $ | (20.7 | ) | $ | — | $ | (20.7 | ) | |||||
Total liabilities | $ | — | $ | (20.7 | ) | $ | — | $ | (20.7 | ) |
2015 | $ | 148.7 | |
2016 | 132.1 | ||
2017 | 125.0 | ||
2018 | 115.8 | ||
2019 | 99.6 | ||
Thereafter | 274.9 | ||
Total minimum payments required | $ | 896.1 |
Commercial and Specialty Business | Government Business | Total | |||||||||
Balance as of January 1, 2013 | $ | 11,555.3 | $ | 5,334.5 | $ | 16,889.8 | |||||
Measurement period adjustments | (1.3 | ) | 28.7 | 27.4 | |||||||
Balance as of December 31, 2013 | $ | 11,554.0 | $ | 5,363.2 | $ | 16,917.2 | |||||
Measurement period adjustments | (1.6 | ) | (0.2 | ) | (1.8 | ) | |||||
Other adjustments | 266.5 | (99.9 | ) | 166.6 | |||||||
Balance as of December 31, 2014 | $ | 11,818.9 | $ | 5,263.1 | $ | 17,082.0 | |||||
Accumulated impairment as of December 31, 2014 | $ | (41.0 | ) | $ | — | $ | (41.0 | ) |
Years Ended December 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Gross medical claims payable, beginning of year | $ | 6,127.2 | $ | 6,174.5 | $ | 5,489.0 | |||||
Ceded medical claims payable, beginning of year | (23.4 | ) | (27.2 | ) | (16.4 | ) | |||||
Net medical claims payable, beginning of year | 6,103.8 | 6,147.3 | 5,472.6 | ||||||||
Business combinations and purchase adjustments | — | — | 804.4 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 56,305.8 | 55,894.3 | 48,080.1 | ||||||||
Prior years redundancies | (541.9 | ) | (599.1 | ) | (513.6 | ) | |||||
Total net incurred medical claims | 55,763.9 | 55,295.2 | 47,566.5 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 50,353.9 | 49,887.2 | 42,832.4 | ||||||||
Prior years medical claims | 5,420.0 | 5,451.5 | 4,863.8 | ||||||||
Total net payments | 55,773.9 | 55,338.7 | 47,696.2 | ||||||||
Net medical claims payable, end of year | 6,093.8 | 6,103.8 | 6,147.3 | ||||||||
Ceded medical claims payable, end of year | 767.4 | 23.4 | 27.2 | ||||||||
Gross medical claims payable, end of year | $ | 6,861.2 | $ | 6,127.2 | $ | 6,174.5 |
2014 | 2013 | 2012 | |||||||||
Pension Benefits | |||||||||||
Service cost | $ | 13.0 | $ | 14.2 | $ | 16.4 | |||||
Interest cost | 74.1 | 67.8 | 76.4 | ||||||||
Expected return on assets | (137.5 | ) | (133.1 | ) | (134.7 | ) | |||||
Recognized actuarial loss | 21.0 | 28.3 | 30.5 | ||||||||
Amortization of prior service credit | (0.8 | ) | (0.8 | ) | (0.8 | ) | |||||
Settlement loss | 5.2 | 11.0 | 13.8 | ||||||||
Net periodic (credit) benefit cost | $ | (25.0 | ) | $ | (12.6 | ) | $ | 1.6 | |||
Other Benefits | |||||||||||
Service cost | $ | 3.2 | $ | 6.7 | $ | 6.8 | |||||
Interest cost | 26.3 | 22.4 | 27.5 | ||||||||
Expected return on assets | (23.4 | ) | (22.1 | ) | (21.0 | ) | |||||
Recognized actuarial loss | 9.4 | 11.2 | 14.1 | ||||||||
Amortization of prior service credit | (14.4 | ) | (13.3 | ) | (13.3 | ) | |||||
Net periodic benefit cost | $ | 1.1 | $ | 4.9 | $ | 14.1 |
Pension Benefits | Other Benefits | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net actuarial loss | $ | 563.7 | $ | 427.2 | $ | 211.2 | $ | 169.6 | |||||||
Prior service credit | (2.2 | ) | (3.0 | ) | (88.0 | ) | (102.4 | ) | |||||||
Net amount before tax at December 31 | $ | 561.5 | $ | 424.2 | $ | 123.2 | $ | 67.2 |
Type of Non-hedging Derivatives | Income Statement Location of Gain (Loss) Recognized | Derivative Gain (Loss) Recognized | ||||
Year ended December 31, 2014 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | 11.6 | |||
Interest rate swaps | Net realized gains on investments | (11.6 | ) | |||
Options | Net realized gains on investments | (54.6 | ) | |||
Futures | Net realized gains on investments | (10.0 | ) | |||
Swaptions | Net realized gains on investments | 1.3 | ||||
Total | $ | (63.3 | ) | |||
Year ended December 31, 2013 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | 31.5 | |||
Interest rate swaps | Net realized gains on investments | 2.2 | ||||
Options | Net realized gains on investments | (111.7 | ) | |||
Futures | Net realized gains on investments | 22.3 | ||||
Swaptions | Net realized gains on investments | 3.0 | ||||
Total | $ | (52.7 | ) | |||
Year ended December 31, 2012 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | (2.4 | ) | ||
Credit default and interest rate swaps | Net realized gains on investments | (3.9 | ) | |||
Options | Net realized gains on investments | (66.0 | ) | |||
Futures | Net realized gains on investments | (6.7 | ) | |||
Total | $ | (79.0 | ) |
For the Quarter Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
2014 | |||||||||||||||
Total revenues | $ | 17,859.4 | $ | 18,473.4 | $ | 18,557.0 | $ | 18,984.3 | |||||||
Income from continuing operations before income taxes | 1,130.1 | 1,263.7 | 1,087.2 | 887.1 | |||||||||||
Income from continuing operations | 691.4 | 731.1 | 630.9 | 506.7 | |||||||||||
Income from discontinued operations | 9.6 | — | — | — | |||||||||||
Net income | 701.0 | 731.1 | 630.9 | 506.7 | |||||||||||
Basic net income per share - continuing operations | $ | 2.43 | $ | 2.64 | $ | 2.31 | $ | 1.88 | |||||||
Basic net income per share - discontinued operations | 0.03 | — | — | — | |||||||||||
Basic net income per share | 2.46 | 2.64 | 2.31 | 1.88 | |||||||||||
Diluted net income per share - continuing operations | $ | 2.37 | $ | 2.56 | $ | 2.22 | $ | 1.80 | |||||||
Diluted net income per share - discontinued operations | 0.03 | — | — | — | |||||||||||
Diluted net income per share | 2.40 | 2.56 | 2.22 | 1.80 | |||||||||||
2013 | |||||||||||||||
Total revenues | $ | 17,576.0 | $ | 17,690.3 | $ | 17,855.5 | $ | 17,901.7 | |||||||
Income from continuing operations before income taxes | 1,282.5 | 1,208.1 | 879.7 | 469.9 | |||||||||||
Income from continuing operations | 872.3 | 799.3 | 653.8 | 308.9 | |||||||||||
Income (loss) from discontinued operations | 12.9 | 0.8 | 2.4 | (160.7 | ) | ||||||||||
Net income | 885.2 | 800.1 | 656.2 | 148.2 | |||||||||||
Basic net income per share - continuing operations | $ | 2.88 | $ | 2.67 | $ | 2.20 | $ | 1.05 | |||||||
Basic net income (loss) per share - discontinued operations | 0.04 | — | 0.01 | (0.55 | ) | ||||||||||
Basic net income per share | 2.92 | 2.67 | 2.21 | 0.50 | |||||||||||
Diluted net income per share - continuing operations | $ | 2.85 | $ | 2.64 | $ | 2.15 | $ | 1.02 | |||||||
Diluted net income (loss) per share - discontinued operations | 0.04 | — | 0.01 | (0.53 | ) | ||||||||||
Diluted net income per share | 2.89 | 2.64 | 2.16 | 0.49 |
Commercial and Specialty Business | Government Business | Other | Total | ||||||||||||
Year ended December 31, 2014 | |||||||||||||||
Operating revenue | $ | 39,199.6 | $ | 33,796.4 | $ | 25.7 | $ | 73,021.7 | |||||||
Operating gain (loss) | 3,260.9 | 1,191.9 | (34.4 | ) | 4,418.4 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 474.3 | 474.3 | |||||||||||
Year ended December 31, 2013 | |||||||||||||||
Operating revenue | $ | 39,404.2 | $ | 30,752.6 | $ | 34.6 | $ | 70,191.4 | |||||||
Operating gain (loss) | 3,176.4 | 844.0 | (19.0 | ) | 4,001.4 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 457.1 | 457.1 | |||||||||||
Year ended December 31, 2012 | |||||||||||||||
Operating revenue | $ | 39,639.9 | $ | 20,838.9 | $ | 35.2 | $ | 60,514.0 | |||||||
Operating gain (loss) | 3,396.3 | 285.4 | (61.8 | ) | 3,619.9 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 363.5 | 363.5 |
Number of Shares | Weighted-Average Option Price per Share | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2014 | 10.0 | $ | 65.38 | |||||||||
Granted | 1.8 | 90.32 | ||||||||||
Exercised | (4.2 | ) | 67.26 | |||||||||
Forfeited or expired | (0.3 | ) | 69.30 | |||||||||
Outstanding at December 31, 2014 | 7.3 | 70.30 | 3.54 | $ | 402.0 | |||||||
Exercisable at December 31, 2014 | 4.8 | 65.94 | 2.46 | $ | 286.8 |
2014 | 2013 | 2012 | ||||||
Risk-free interest rate | 2.16 | % | 1.25 | % | 1.41 | % | ||
Volatility factor | 35.00 | % | 35.00 | % | 34.00 | % | ||
Dividend yield (annual) | 2.00 | % | 2.40 | % | 1.60 | % | ||
Weighted-average expected life (years) | 3.75 | 4.00 | 4.10 |
Restricted Stock Shares and Units | Weighted-Average Grant Date Fair Value per Share | |||||
Nonvested at January 1, 2014 | 4.2 | $ | 63.83 | |||
Granted | 1.7 | 90.53 | ||||
Vested | (1.9 | ) | 64.10 | |||
Forfeited | (0.4 | ) | 68.71 | |||
Nonvested at December 31, 2014 | 3.6 | 75.63 |
January 1, 2015 through February 5, 2015 | Years Ended December 31 | ||||||||||
2014 | 2013 | ||||||||||
Shares repurchased | 1.8 | 30.4 | 20.7 | ||||||||
Average price per share | $ | 131.16 | $ | 98.52 | $ | 78.08 | |||||
Aggregate cost | $ | 229.9 | $ | 2,998.8 | $ | 1,620.1 | |||||
Authorization remaining at the end of each period | $ | 5,461.8 | $ | 5,691.7 | $ | 3,691.0 |
Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||
Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | ||||||||||||||||
(Securities are whole amounts) | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 17 | $ | 145.3 | $ | (0.3 | ) | 2 | $ | 0.9 | $ | — | ||||||||||
Government sponsored securities | 2 | 0.3 | — | 16 | 29.3 | (0.4 | ) | ||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 136 | 315.6 | (1.8 | ) | 80 | 174.3 | (3.0 | ) | |||||||||||||
Corporate securities | 1,802 | 3,213.3 | (123.1 | ) | 314 | 514.6 | (43.2 | ) | |||||||||||||
Residential mortgage-backed securities | 78 | 155.0 | (1.0 | ) | 186 | 398.3 | (8.6 | ) | |||||||||||||
Commercial mortgage-backed securities | 43 | 156.2 | (0.6 | ) | 10 | 33.2 | (0.4 | ) | |||||||||||||
Other debt securities | 79 | 270.6 | (1.7 | ) | 21 | 65.0 | (1.6 | ) | |||||||||||||
Total fixed maturity securities | 2,157 | 4,256.3 | (128.5 | ) | 629 | 1,215.6 | (57.2 | ) | |||||||||||||
Equity securities | 407 | 125.4 | (11.1 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 2,564 | $ | 4,381.7 | $ | (139.6 | ) | 629 | $ | 1,215.6 | $ | (57.2 | ) | |||||||||
December 31, 2013 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 27 | $ | 179.2 | $ | (3.4 | ) | — | $ | — | $ | — | ||||||||||
Government sponsored securities | 22 | 73.4 | (1.3 | ) | — | — | — | ||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 806 | 2,070.9 | (90.1 | ) | 42 | 82.4 | (9.6 | ) | |||||||||||||
Corporate securities | 1,448 | 2,586.6 | (95.2 | ) | 107 | 81.3 | (15.5 | ) | |||||||||||||
Residential mortgage-backed securities | 605 | 1,243.0 | (41.4 | ) | 80 | 116.2 | (7.1 | ) | |||||||||||||
Commercial mortgage-backed securities | 52 | 177.7 | (2.6 | ) | 4 | 5.6 | (0.3 | ) | |||||||||||||
Other debt securities | 65 | 185.3 | (2.5 | ) | 17 | 16.2 | (0.8 | ) | |||||||||||||
Total fixed maturity securities | 3,025 | 6,516.1 | (236.5 | ) | 250 | 301.7 | (33.3 | ) | |||||||||||||
Equity securities | 426 | 120.8 | (8.0 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 3,451 | $ | 6,636.9 | $ | (244.5 | ) | 250 | $ | 301.7 | $ | (33.3 | ) |
Commercial and Specialty Business | Government Business | Other | Total | ||||||||||||
Year ended December 31, 2014 | |||||||||||||||
Operating revenue | $ | 39,199.6 | $ | 33,796.4 | $ | 25.7 | $ | 73,021.7 | |||||||
Operating gain (loss) | 3,260.9 | 1,191.9 | (34.4 | ) | 4,418.4 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 474.3 | 474.3 | |||||||||||
Year ended December 31, 2013 | |||||||||||||||
Operating revenue | $ | 39,404.2 | $ | 30,752.6 | $ | 34.6 | $ | 70,191.4 | |||||||
Operating gain (loss) | 3,176.4 | 844.0 | (19.0 | ) | 4,001.4 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 457.1 | 457.1 | |||||||||||
Year ended December 31, 2012 | |||||||||||||||
Operating revenue | $ | 39,639.9 | $ | 20,838.9 | $ | 35.2 | $ | 60,514.0 | |||||||
Operating gain (loss) | 3,396.3 | 285.4 | (61.8 | ) | 3,619.9 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 363.5 | 363.5 |
2014 | 2013 | 2012 | |||||||||
Commercial and Specialty Business | |||||||||||
Managed care products | $ | 33,755.6 | $ | 34,516.9 | $ | 34,875.4 | |||||
Managed care services | 3,997.8 | 3,474.0 | 3,446.9 | ||||||||
Dental/Vision products and services | 1,037.3 | 952.5 | 903.9 | ||||||||
Other | 408.9 | 460.8 | 413.7 | ||||||||
Total Commercial and Specialty Business | 39,199.6 | 39,404.2 | 39,639.9 | ||||||||
Government Business | |||||||||||
Managed care products | 33,344.6 | 30,347.1 | 20,460.0 | ||||||||
Managed care services | 451.8 | 405.5 | 378.9 | ||||||||
Total Government Business | 33,796.4 | 30,752.6 | 20,838.9 | ||||||||
Other | |||||||||||
Other | 25.7 | 34.6 | 35.2 | ||||||||
Total product revenues | $ | 73,021.7 | $ | 70,191.4 | $ | 60,514.0 |
2014 | 2013 | 2012 | |||||||||
Reportable segments operating revenues | $ | 73,021.7 | $ | 70,191.4 | $ | 60,514.0 | |||||
Net investment income | 724.4 | 659.1 | 686.1 | ||||||||
Net realized gains on investments | 177.0 | 271.9 | 334.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (49.0 | ) | (98.9 | ) | (37.8 | ) | |||||
Total revenues | $ | 73,874.1 | $ | 71,023.5 | $ | 61,497.2 |
2014 | 2013 | 2012 | |||||||||
Reportable segments operating gain | $ | 4,418.4 | $ | 4,001.4 | $ | 3,619.9 | |||||
Net investment income | 724.4 | 659.1 | 686.1 | ||||||||
Net realized gains on investments | 177.0 | 271.9 | 334.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (49.0 | ) | (98.9 | ) | (37.8 | ) | |||||
Interest expense | (600.7 | ) | (602.7 | ) | (511.8 | ) | |||||
Amortization of other intangible assets | (220.9 | ) | (245.3 | ) | (233.0 | ) | |||||
Loss on extinguishment of debt | (81.1 | ) | (145.3 | ) | — | ||||||
Income from continuing operations before income tax expense | $ | 4,368.1 | $ | 3,840.2 | $ | 3,858.3 |
2014 | 2013 | 2012 | |||||||||
Options granted during the year | $ | 22.41 | $ | 14.64 | $ | 16.50 | |||||
Restricted stock and stock awards granted during the year | 90.53 | 63.06 | 65.91 |
Number of Shares | Weighted-Average Option Price per Share | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2014 | 10.0 | $ | 65.38 | |||||||||
Granted | 1.8 | 90.32 | ||||||||||
Exercised | (4.2 | ) | 67.26 | |||||||||
Forfeited or expired | (0.3 | ) | 69.30 | |||||||||
Outstanding at December 31, 2014 | 7.3 | 70.30 | 3.54 | $ | 402.0 | |||||||
Exercisable at December 31, 2014 | 4.8 | 65.94 | 2.46 | $ | 286.8 |
Restricted Stock Shares and Units | Weighted-Average Grant Date Fair Value per Share | |||||
Nonvested at January 1, 2014 | 4.2 | $ | 63.83 | |||
Granted | 1.7 | 90.53 | ||||
Vested | (1.9 | ) | 64.10 | |||
Forfeited | (0.4 | ) | 68.71 | |||
Nonvested at December 31, 2014 | 3.6 | 75.63 |
2014 | 2013 | 2012 | ||||||
Risk-free interest rate | 2.16 | % | 1.25 | % | 1.41 | % | ||
Volatility factor | 35.00 | % | 35.00 | % | 34.00 | % | ||
Dividend yield (annual) | 2.00 | % | 2.40 | % | 1.60 | % | ||
Weighted-average expected life (years) | 3.75 | 4.00 | 4.10 |
2014 | 2013 | 2012 | |||||||||
Options granted during the year | $ | 22.41 | $ | 14.64 | $ | 16.50 | |||||
Restricted stock and stock awards granted during the year | 90.53 | 63.06 | 65.91 |
Declaration Date | Record Date | Payment Date | Cash Dividend per Share | Total | ||||||||
Year ended December 31, 2014 | ||||||||||||
January 28, 2014 | March 10, 2014 | March 25, 2014 | $ | 0.4375 | $ | 123.4 | ||||||
April 29, 2014 | June 10, 2014 | June 25, 2014 | 0.4375 | 120.5 | ||||||||
July 29, 2014 | September 10, 2014 | September 25, 2014 | 0.4375 | 119.2 | ||||||||
October 28, 2014 | December 5, 2014 | December 22, 2014 | 0.4375 | 117.6 | ||||||||
Year ended December 31, 2013 | ||||||||||||
February 20, 2013 | March 8, 2013 | March 25, 2013 | $ | 0.3750 | $ | 113.4 | ||||||
May 15, 2013 | June 10, 2013 | June 25, 2013 | 0.3750 | 112.7 | ||||||||
July 23, 2013 | September 10, 2013 | September 25, 2013 | 0.3750 | 111.4 | ||||||||
October 22, 2013 | December 9, 2013 | December 23, 2013 | 0.3750 | 110.5 |
January 1, 2015 through February 5, 2015 | Years Ended December 31 | ||||||||||
2014 | 2013 | ||||||||||
Shares repurchased | 1.8 | 30.4 | 20.7 | ||||||||
Average price per share | $ | 131.16 | $ | 98.52 | $ | 78.08 | |||||
Aggregate cost | $ | 229.9 | $ | 2,998.8 | $ | 1,620.1 | |||||
Authorization remaining at the end of each period | $ | 5,461.8 | $ | 5,691.7 | $ | 3,691.0 |
2014 | 2013 | ||||||
Balance at January 1 | $ | 103.2 | $ | 143.5 | |||
Additions for tax positions related to: | |||||||
Current year | 10.9 | 5.0 | |||||
Prior years | 31.3 | — | |||||
Reductions related to: | |||||||
Tax positions of prior years | (24.5 | ) | (45.3 | ) | |||
Settlements with taxing authorities | (5.1 | ) | — | ||||
Balance at December 31 | $ | 115.8 | $ | 103.2 |
2014 | 2013 | 2012 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 68,628.6 | $ | 68,304.3 | $ | 65,939.1 | $ | 66,038.9 | $ | 56,443.6 | $ | 56,373.6 | |||||||||||
Assumed | 192.3 | 194.0 | 174.3 | 174.0 | 197.0 | 196.4 | |||||||||||||||||
Ceded | (108.5 | ) | (108.5 | ) | (92.6 | ) | (93.8 | ) | (73.2 | ) | (73.3 | ) | |||||||||||
Net premiums | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 | $ | 56,567.4 | $ | 56,496.7 | |||||||||||
Percentage—assumed to net premiums | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % |