Carrying Value | Estimated Fair Value | ||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||
December 31, 2015 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 2,041.1 | $ | — | $ | — | $ | 2,041.1 | $ | 2,041.1 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 540.0 | — | 540.0 | — | 540.0 | ||||||||||||||
Commercial paper | 682.2 | — | 682.2 | — | 682.2 | ||||||||||||||
Notes | 14,311.6 | — | 14,523.2 | — | 14,523.2 | ||||||||||||||
Convertible debentures | 330.7 | — | 980.1 | — | 980.1 | ||||||||||||||
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 |
Favorable Developments by Changes in Key Assumptions | |||||||||||
2015 | 2014 | 2013 | |||||||||
Assumed trend factors | $ | (467.9 | ) | $ | (399.5 | ) | $ | (428.4 | ) | ||
Assumed completion factors | (332.3 | ) | (142.4 | ) | (170.7 | ) | |||||
Total | $ | (800.2 | ) | $ | (541.9 | ) | $ | (599.1 | ) |
Pension Benefits | Other Benefits | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Discount rate | 3.92 | % | 3.66 | % | 4.01 | % | 3.74 | % | |||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||
Expected rate of return on plan assets | 7.84 | % | 7.62 | % | 7.00 | % | 7.00 | % |
2015 | 2014 | 2013 | ||||||
Pension Benefits | ||||||||
Discount rate | 3.66 | % | 4.39 | % | 3.60 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.62 | % | 7.66 | % | 7.91 | % | ||
Other Benefits | ||||||||
Discount rate | 3.74 | % | 4.48 | % | 3.71 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.00 | % | 7.00 | % | 7.00 | % |
2015 | 2014 | ||||||
Policy liabilities, assumed | $ | 56.7 | $ | 57.4 | |||
Unearned income, assumed | 0.5 | 0.4 | |||||
Premiums payable, ceded | 9.3 | 7.7 | |||||
Premiums receivable, assumed | 23.2 | 5.4 |
2015 | 2014 | 2013 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Reportable segments: | |||||||||||||||||||||||
Commercial and Specialty Business | $ | 33,016.9 | $ | 33,078.0 | $ | 35,084.7 | $ | 35,045.2 | $ | 35,733.9 | $ | 35,772.0 | |||||||||||
Government Business | 40,034.6 | 40,307.1 | 33,627.7 | 33,344.6 | 30,286.9 | 30,347.1 | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Net premiums | $ | 73,051.5 | $ | 73,385.1 | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 |
2015 | 2014 | ||||||
Investments: | |||||||
Gross unrealized gains | $ | 815.0 | $ | 1,154.9 | |||
Gross unrealized losses | (447.5 | ) | (196.8 | ) | |||
Net pretax unrealized gains | 367.5 | 958.1 | |||||
Deferred tax liability | (124.2 | ) | (330.5 | ) | |||
Net unrealized gains on investments | 243.3 | 627.6 | |||||
Non-credit components of OTTI on investments: | |||||||
Gross unrealized losses | (15.4 | ) | (6.8 | ) | |||
Deferred tax asset | 5.4 | 2.4 | |||||
Net unrealized non-credit component of OTTI on investments | (10.0 | ) | (4.4 | ) | |||
Cash flow hedges: | |||||||
Gross unrealized losses | (124.8 | ) | (55.2 | ) | |||
Deferred tax asset | 43.7 | 19.3 | |||||
Net unrealized losses on cash flow hedges | (81.1 | ) | (35.9 | ) | |||
Defined benefit pension plans: | |||||||
Deferred net actuarial loss | (635.0 | ) | (563.7 | ) | |||
Deferred prior service credits | 0.1 | 2.2 | |||||
Deferred tax asset | 250.4 | 223.2 | |||||
Net unrecognized periodic benefit costs for defined benefit pension plans | (384.5 | ) | (338.3 | ) | |||
Postretirement benefit plans: | |||||||
Deferred net actuarial loss | (162.7 | ) | (211.2 | ) | |||
Deferred prior service credits | 73.5 | 88.0 | |||||
Deferred tax asset | 35.1 | 48.9 | |||||
Net unrecognized periodic benefit costs for postretirement benefit plans | (54.1 | ) | (74.3 | ) | |||
Foreign currency translation adjustments: | |||||||
Gross unrealized losses | (9.5 | ) | (4.3 | ) | |||
Deferred tax asset | 3.3 | 1.5 | |||||
Net unrealized losses on foreign currency translation adjustments | (6.2 | ) | (2.8 | ) | |||
Accumulated other comprehensive (loss) income | $ | (292.6 | ) | $ | 171.9 |
2015 | 2014 | 2013 | |||||||||
Investments: | |||||||||||
Net holding (loss) gain on investment securities arising during the period, net of tax benefit (expense) of $180.4, ($107.9), and $102.4, respectively | $ | (336.1 | ) | $ | 201.8 | $ | (182.2 | ) | |||
Reclassification adjustment for net realized gain on investment securities, net of tax expense of $25.9, $44.8 and $60.6, respectively | (48.2 | ) | (83.2 | ) | (112.5 | ) | |||||
Total reclassification adjustment on investments | (384.3 | ) | 118.6 | (294.7 | ) | ||||||
Non-credit component of OTTI on investments: | |||||||||||
Non-credit component of OTTI on investments, net of tax benefit (expense) of $3.0, $2.1, and ($0.9), respectively | (5.6 | ) | (3.9 | ) | 1.7 | ||||||
Cash flow hedges: | |||||||||||
Holding (loss) gain, net of tax benefit (expense) of $24.4, $1.9, and ($1.6), respectively | (45.2 | ) | (3.6 | ) | 3.0 | ||||||
Other: | |||||||||||
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax benefit (expense) of $13.4, $75.2, and ($106.8), respectively | (26.0 | ) | (118.1 | ) | 172.7 | ||||||
Foreign currency translation adjustment, net of tax benefit (expense) of $1.8, $2.2, and ($0.6), respectively | (3.4 | ) | (4.3 | ) | 1.4 | ||||||
Net loss recognized in other comprehensive loss, net of tax benefit of $248.9, $18.3, and $53.1, respectively | $ | (464.5 | ) | $ | (11.3 | ) | $ | (115.9 | ) |
(In millions, except share data) | December 31, 2015 | December 31, 2014 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 492.3 | $ | 739.8 | |||
Investments available-for-sale, at fair value: | |||||||
Fixed maturity securities (amortized cost of $889.6 and $1,798.8) | 794.0 | 1,753.4 | |||||
Equity securities (cost of $53.0 and $148.7) | 82.0 | 206.7 | |||||
Other invested assets, current | 5.9 | 5.7 | |||||
Other receivables | 77.0 | 44.6 | |||||
Income taxes receivable | 236.5 | 227.9 | |||||
Net due from subsidiaries | — | 327.3 | |||||
Securities lending collateral | 130.6 | 224.8 | |||||
Other current assets | 394.0 | 232.5 | |||||
Total current assets | 2,212.3 | 3,762.7 | |||||
Long-term investments available-for-sale, at fair value: | |||||||
Equity securities (cost of $6.5 and $6.6) | 6.5 | 6.6 | |||||
Other invested assets, long-term | 630.1 | 654.5 | |||||
Property and equipment, net | 116.8 | 134.0 | |||||
Deferred tax assets, net | 146.6 | — | |||||
Investments in subsidiaries | 36,524.4 | 35,647.2 | |||||
Other noncurrent assets | 129.8 | 113.0 | |||||
Total assets | $ | 39,766.5 | $ | 40,318.0 | |||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 615.5 | $ | 599.9 | |||
Security trades pending payable | 13.4 | 14.0 | |||||
Securities lending payable | 130.6 | 224.8 | |||||
Net due to subsidiaries | 93.2 | — | |||||
Current portion of long-term debt | — | 624.3 | |||||
Other current liabilities | 278.1 | 280.1 | |||||
Total current liabilities | 1,130.8 | 1,743.1 | |||||
Long-term debt, less current portion | 15,299.6 | 13,994.7 | |||||
Deferred tax liabilities, net | — | 15.2 | |||||
Other noncurrent liabilities | 292.0 | 313.7 | |||||
Total liabilities | 16,722.4 | 16,066.7 | |||||
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 - 261,238,188 and 268,109,932 | 2.6 | 2.7 | |||||
Additional paid-in capital | 8,555.6 | 10,062.3 | |||||
Retained earnings | 14,778.5 | 14,014.4 | |||||
Accumulated other comprehensive (loss) income | (292.6 | ) | 171.9 | ||||
Total shareholders’ equity | 23,044.1 | 24,251.3 | |||||
Total liabilities and shareholders’ equity | $ | 39,766.5 | $ | 40,318.0 |
Years ended December 31 | |||||||||||
(In millions) | 2015 | 2014 | 2013 | ||||||||
Revenues | |||||||||||
Net investment income | $ | 99.7 | $ | 87.4 | $ | 61.2 | |||||
Net realized losses on investments | (3.8 | ) | (27.1 | ) | (83.2 | ) | |||||
Other-than-temporary impairment losses on investments: | |||||||||||
Total other-than-temporary impairment losses on investments | (49.2 | ) | (35.5 | ) | (51.6 | ) | |||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income | 10.0 | 7.0 | 0.2 | ||||||||
Other-than-temporary impairment losses recognized in income | (39.2 | ) | (28.5 | ) | (51.4 | ) | |||||
Other revenue | 3.5 | 4.8 | 4.4 | ||||||||
Total revenues (losses) | 60.2 | 36.6 | (69.0 | ) | |||||||
Expenses | |||||||||||
General and administrative expense | 77.9 | 20.3 | 196.6 | ||||||||
Interest expense | 649.7 | 597.8 | 598.4 | ||||||||
(Gain) loss on extinguishment of debt | (9.3 | ) | 81.1 | 145.3 | |||||||
Total expenses | 718.3 | 699.2 | 940.3 | ||||||||
Loss before income tax credits and equity in net income of subsidiaries | (658.1 | ) | (662.6 | ) | (1,009.3 | ) | |||||
Income tax credits | (270.1 | ) | (255.4 | ) | (369.7 | ) | |||||
Equity in net income of subsidiaries | 2,948.0 | 2,976.9 | 3,129.3 | ||||||||
Net income | $ | 2,560.0 | $ | 2,569.7 | $ | 2,489.7 |
Years ended December 31 | |||||||||||
(in millions) | 2015 | 2014 | 2013 | ||||||||
Net income | $ | 2,560.0 | $ | 2,569.7 | $ | 2,489.7 | |||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Change in net unrealized gains/losses on investments | (384.3 | ) | 118.6 | (294.7 | ) | ||||||
Change in non-credit component of other-than-temporary impairment losses on investments | (5.6 | ) | (3.9 | ) | 1.7 | ||||||
Change in net unrealized gains/losses on cash flow hedges | (45.2 | ) | (3.6 | ) | 3.0 | ||||||
Change in net periodic pension and postretirement costs | (26.0 | ) | (118.1 | ) | 172.7 | ||||||
Foreign currency translation adjustments | (3.4 | ) | (4.3 | ) | 1.4 | ||||||
Other comprehensive loss | (464.5 | ) | (11.3 | ) | (115.9 | ) | |||||
Total comprehensive income | $ | 2,095.5 | $ | 2,558.4 | $ | 2,373.8 |
Years ended December 31 | |||||||||||
(In millions) | 2015 | 2014 | 2013 | ||||||||
Operating activities | |||||||||||
Net income | $ | 2,560.0 | $ | 2,569.7 | $ | 2,489.7 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
(Undistributed) distributed earnings of subsidiaries | (287.8 | ) | 244.3 | (78.5 | ) | ||||||
Net realized losses on investments | 3.8 | 27.1 | 83.2 | ||||||||
Other-than-temporary impairment losses recognized in income | 39.2 | 28.5 | 51.4 | ||||||||
(Gain) loss on extinguishment of debt | (9.3 | ) | 81.1 | 145.3 | |||||||
Loss on disposal of assets | 0.2 | 3.9 | 3.6 | ||||||||
Deferred income taxes | 55.0 | 52.7 | (4.5 | ) | |||||||
Amortization, net of accretion | 40.8 | 17.5 | 25.2 | ||||||||
Depreciation expense | 68.1 | 67.4 | 45.7 | ||||||||
Share-based compensation | 148.2 | 168.9 | 146.0 | ||||||||
Excess tax benefits from share-based compensation | (95.8 | ) | (46.4 | ) | (30.1 | ) | |||||
Changes in operating assets and liabilities: | |||||||||||
Receivables, net | (17.9 | ) | (16.6 | ) | 3.5 | ||||||
Other invested assets, current | (0.2 | ) | (3.8 | ) | (0.3 | ) | |||||
Other assets | (106.9 | ) | 55.6 | 42.3 | |||||||
Amounts due from/to subsidiaries | 420.5 | 566.1 | (983.1 | ) | |||||||
Accounts payable and accrued expenses | 7.5 | (111.4 | ) | 111.8 | |||||||
Other liabilities | (231.4 | ) | (113.8 | ) | (18.6 | ) | |||||
Income taxes | 47.2 | (36.0 | ) | 83.9 | |||||||
Other, net | (10.2 | ) | — | — | |||||||
Net cash provided by operating activities | 2,631.0 | 3,554.8 | 2,116.5 | ||||||||
Investing activities | |||||||||||
Purchases of investments | (2,130.7 | ) | (1,819.3 | ) | (1,964.3 | ) | |||||
Proceeds from sales, maturities, calls and redemptions of investments | 3,076.6 | 820.7 | 2,443.3 | ||||||||
Settlement of non-hedging derivatives | (36.5 | ) | (67.4 | ) | (109.8 | ) | |||||
Capitalization of subsidiaries | (939.7 | ) | (321.8 | ) | (121.2 | ) | |||||
Changes in securities lending collateral | 94.0 | (178.8 | ) | (17.0 | ) | ||||||
Purchases of property and equipment, net of sales | (51.1 | ) | (57.0 | ) | (87.4 | ) | |||||
Other, net | 1.5 | (38.0 | ) | (18.9 | ) | ||||||
Net cash provided by (used in) investing activities | 14.1 | (1,661.6 | ) | 124.7 | |||||||
Financing activities | |||||||||||
Net proceeds from (repayments of) commercial paper borrowings | 682.2 | (379.2 | ) | (191.7 | ) | ||||||
Proceeds from long-term borrowings | 1,226.5 | 2,700.0 | 1,250.0 | ||||||||
Repayments of long-term borrowings | (2,697.2 | ) | (1,730.1 | ) | (1,245.0 | ) | |||||
Changes in securities lending payable | (94.2 | ) | 178.6 | 17.1 | |||||||
Changes in bank overdrafts | (89.3 | ) | 55.5 | 71.8 | |||||||
Premiums paid on equity call options | (16.7 | ) | — | (25.8 | ) | ||||||
Proceeds from sale of put options | 16.6 | — | — | ||||||||
Repurchase and retirement of common stock | (1,515.8 | ) | (2,998.8 | ) | (1,620.1 | ) | |||||
Cash dividends | (686.5 | ) | (501.6 | ) | (465.9 | ) | |||||
Proceeds from issuance of common stock under employee stock plans | 186.0 | 301.3 | 524.7 | ||||||||
Excess tax benefits from share-based compensation | 95.8 | 46.4 | 30.1 | ||||||||
Net cash used in financing activities | (2,892.6 | ) | (2,327.9 | ) | (1,654.8 | ) | |||||
Change in cash and cash equivalents | (247.5 | ) | (434.7 | ) | 586.4 | ||||||
Cash and cash equivalents at beginning of year | 739.8 | 1,174.5 | 588.1 | ||||||||
Cash and cash equivalents at end of year | $ | 492.3 | $ | 739.8 | $ | 1,174.5 |
Outstanding principal amount | $ | 513.4 | |
Unamortized debt discount | $ | 176.8 | |
Net debt carrying amount | $ | 330.7 | |
Equity component carrying amount | $ | 186.1 | |
Conversion rate (shares of common stock per $1,000 of principal amount) | 13.4886 | ||
Effective conversion price (per $1,000 of principal amount) | $ | 74.1360 |
2015 | 2014 | ||||||
Senior unsecured notes: | |||||||
1.250%, due 2015 | $ | — | $ | 624.3 | |||
2.375%, due 2017 | 399.9 | 398.9 | |||||
5.875%, due 2017 | 527.6 | 526.7 | |||||
1.875%, due 2018 | 621.9 | 616.4 | |||||
2.300%, due 2018 | 645.9 | 644.3 | |||||
2.250%, due 2019 | 843.9 | 842.1 | |||||
7.000%, due 2019 | 438.9 | 438.5 | |||||
4.350%, due 2020 | 702.9 | 695.3 | |||||
3.700%, due 2021 | 696.2 | 695.6 | |||||
3.125%, due 2022 | 842.7 | 841.6 | |||||
3.300%, due 2023 | 992.2 | 991.2 | |||||
3.500%, due 2024 | 790.9 | 789.8 | |||||
5.950%, due 2034 | 444.5 | 444.4 | |||||
5.850%, due 2036 | 768.0 | 767.7 | |||||
6.375%, due 2037 | 639.6 | 639.3 | |||||
5.800%, due 2040 | 193.8 | 206.4 | |||||
4.625%, due 2042 | 885.8 | 885.4 | |||||
4.650%, due 2043 | 985.5 | 985.0 | |||||
4.650%, due 2044 | 790.5 | 790.1 | |||||
5.100%, due 2044 | 593.3 | 593.1 | |||||
4.850%, due 2054 | 246.6 | 246.5 | |||||
Remarketable subordinated notes: | |||||||
1.900%, due 2028 | 1,236.1 | — | |||||
Surplus notes: | |||||||
9.000%, due 2027 | 24.9 | 24.9 | |||||
Senior convertible debentures: | |||||||
2.750%, due 2042 | 330.7 | 956.4 | |||||
Variable rate debt: | |||||||
Commercial paper program | 682.2 | — | |||||
Total long-term debt | 15,324.5 | 14,643.9 | |||||
Current portion of long-term debt | — | (624.3 | ) | ||||
Long-term debt, less current portion | $ | 15,324.5 | $ | 14,019.6 |
Outstanding principal amount | $ | 513.4 | |
Unamortized debt discount | $ | 176.8 | |
Net debt carrying amount | $ | 330.7 | |
Equity component carrying amount | $ | 186.1 | |
Conversion rate (shares of common stock per $1,000 of principal amount) | 13.4886 | ||
Effective conversion price (per $1,000 of principal amount) | $ | 74.1360 |
Contractual/ Notional Amount | Balance Sheet Location | Estimated Fair Value | |||||||||||
Asset | (Liability) | ||||||||||||
December 31, 2015 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 1,385.0 | Other assets/other liabilities | $ | 7.0 | $ | (0.8 | ) | |||||
Interest rate swaps - forward starting pay fixed | 4,650.0 | Other assets/other liabilities | 15.7 | (90.9 | ) | ||||||||
Subtotal hedging | 6,035.0 | Subtotal hedging | 22.7 | (91.7 | ) | ||||||||
Non-hedging instruments | |||||||||||||
Interest rate swaps | 271.7 | Equity securities | 1.2 | (6.0 | ) | ||||||||
Options | 16,917.4 | Other assets/other liabilities | 305.7 | (332.1 | ) | ||||||||
Futures | — | Equity securities | 0.1 | (0.2 | ) | ||||||||
Subtotal non-hedging | 17,189.1 | Subtotal non-hedging | 307.0 | (338.3 | ) | ||||||||
Total derivatives | $ | 23,224.1 | Total derivatives | 329.7 | (430.0 | ) | |||||||
Amounts netted | (170.6 | ) | 170.6 | ||||||||||
Net derivatives | $ | 159.1 | $ | (259.4 | ) | ||||||||
December 31, 2014 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 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 | ) |
Type of Fair Value Hedges | Year Entered Into | Outstanding Notional Amount | Interest Rate Received | Expiration Date | |||||||||||
2015 | 2014 | ||||||||||||||
Interest rate swap | 2015 | $ | 200.0 | $ | — | 4.350 | % | August 15, 2020 | |||||||
Interest rate swap | 2014 | 150.0 | 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 | ||||||||||
Total notional amount outstanding | $ | 1,385.0 | $ | 1,185.0 |
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, 2015 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 12.1 | Fixed rate debt | Interest expense | $ | (12.1 | ) | ||||||
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 | ) |
Effective Portion | ||||||||||||||||
Pretax Hedge Loss Recognized in Other Comprehensive Income (Loss) | 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, 2015 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (75.2 | ) | Interest expense | $ | (5.5 | ) | None | $ | — | ||||||
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 | $ | — |
Type of Non-hedging Derivatives | Income Statement Location of Gain (Loss) Recognized | Derivative Gain (Loss) Recognized | ||||
Year ended December 31, 2015 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | (22.2 | ) | ||
Interest rate swaps | Net realized gains on investments | (1.9 | ) | |||
Options | Net realized gains on investments | 34.7 | ||||
Futures | Net realized gains on investments | (0.1 | ) | |||
Swaptions | Net realized gains on investments | (0.1 | ) | |||
Total | $ | 10.4 | ||||
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 | ) |
Declaration Date | Record Date | Payment Date | Cash Dividend per Share | Total | ||||||||
Year ended December 31, 2015 | ||||||||||||
January 27, 2015 | March 10, 2015 | March 25, 2015 | $ | 0.6250 | $ | 166.6 | ||||||
April 28, 2015 | June 10, 2015 | June 25, 2015 | 0.6250 | 163.9 | ||||||||
July 28, 2015 | September 10, 2015 | September 25, 2015 | 0.6250 | 163.0 | ||||||||
October 27, 2015 | December 4, 2015 | December 21, 2015 | 0.6250 | 163.1 | ||||||||
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 |
2015 | 2014 | 2013 | ||||||
Denominator for basic earnings per share—weighted-average shares | 263.0 | 275.9 | 298.5 | |||||
Effect of dilutive securities—employee stock options, non-vested restricted stock awards and convertible debentures | 9.9 | 10.0 | 5.3 | |||||
Denominator for diluted earnings per share | 272.9 | 285.9 | 303.8 |
2015 | 2014 | 2013 | |||||||||
Direct | $ | 61,674.0 | $ | 57,496.6 | $ | 56,185.2 | |||||
Assumed | 192.2 | 182.4 | 155.6 | ||||||||
Ceded | (749.3 | ) | (824.1 | ) | (103.7 | ) | |||||
Net benefit expense | $ | 61,116.9 | $ | 56,854.9 | $ | 56,237.1 |
Corporate Securities | Residential Mortgage- backed Securities | Commercial Mortgage- backed Securities | Other Debt Securities | Equity Securities | Total | ||||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Beginning balance at January 1, 2015 | $ | 144.6 | $ | — | $ | 3.3 | $ | 6.6 | $ | 48.3 | $ | 202.8 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | 1.4 | — | — | 0.2 | (1.5 | ) | 0.1 | ||||||||||||||||
Recognized in accumulated other comprehensive income | 0.7 | — | — | (0.2 | ) | 3.9 | 4.4 | ||||||||||||||||
Purchases | 132.6 | — | 1.1 | 28.3 | 52.1 | 214.1 | |||||||||||||||||
Sales | (11.7 | ) | — | (1.1 | ) | (0.9 | ) | (13.8 | ) | (27.5 | ) | ||||||||||||
Settlements | (51.6 | ) | — | (1.4 | ) | (0.2 | ) | — | (53.2 | ) | |||||||||||||
Transfers into Level III | 4.8 | — | — | — | 13.1 | 17.9 | |||||||||||||||||
Transfers out of Level III | (34.6 | ) | — | — | (8.2 | ) | — | (42.8 | ) | ||||||||||||||
Ending balance at December 31, 2015 | $ | 186.2 | $ | — | $ | 1.9 | $ | 25.6 | $ | 102.1 | $ | 315.8 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2015 | $ | (0.6 | ) | $ | — | $ | — | $ | — | $ | (1.4 | ) | $ | (2.0 | ) | ||||||||
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 | ) |
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, 2015 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 701.0 | $ | — | $ | — | $ | 701.0 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 349.9 | — | — | 349.9 | |||||||||||
Government sponsored securities | — | 75.9 | — | 75.9 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,251.6 | — | 6,251.6 | |||||||||||
Corporate securities | 77.6 | 7,629.3 | 186.2 | 7,893.1 | |||||||||||
Residential mortgage-backed securities | — | 1,750.9 | — | 1,750.9 | |||||||||||
Commercial mortgage-backed securities | — | 402.4 | 1.9 | 404.3 | |||||||||||
Other debt securities | 55.7 | 671.2 | 25.6 | 752.5 | |||||||||||
Total fixed maturity securities | 483.2 | 16,781.3 | 213.7 | 17,478.2 | |||||||||||
Equity securities | 1,253.8 | 116.9 | 102.1 | 1,472.8 | |||||||||||
Other invested assets, current | 19.1 | — | — | 19.1 | |||||||||||
Securities lending collateral | 708.1 | 592.3 | — | 1,300.4 | |||||||||||
Derivatives (reported with other assets) | — | 159.1 | — | 159.1 | |||||||||||
Total assets | $ | 3,165.2 | $ | 17,649.6 | $ | 315.8 | $ | 21,130.6 | |||||||
Liabilities: | |||||||||||||||
Derivatives (reported with other liabilities) | $ | — | $ | (259.4 | ) | $ | — | $ | (259.4 | ) | |||||
Total liabilities | $ | — | $ | (259.4 | ) | $ | — | $ | (259.4 | ) | |||||
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 (reported with other liabilities) | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) | |||||
Total liabilities | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) |
Corporate Securities | Residential Mortgage- backed Securities | Commercial Mortgage- backed Securities | Other Debt Securities | Equity Securities | Total | ||||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Beginning balance at January 1, 2015 | $ | 144.6 | $ | — | $ | 3.3 | $ | 6.6 | $ | 48.3 | $ | 202.8 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | 1.4 | — | — | 0.2 | (1.5 | ) | 0.1 | ||||||||||||||||
Recognized in accumulated other comprehensive income | 0.7 | — | — | (0.2 | ) | 3.9 | 4.4 | ||||||||||||||||
Purchases | 132.6 | — | 1.1 | 28.3 | 52.1 | 214.1 | |||||||||||||||||
Sales | (11.7 | ) | — | (1.1 | ) | (0.9 | ) | (13.8 | ) | (27.5 | ) | ||||||||||||
Settlements | (51.6 | ) | — | (1.4 | ) | (0.2 | ) | — | (53.2 | ) | |||||||||||||
Transfers into Level III | 4.8 | — | — | — | 13.1 | 17.9 | |||||||||||||||||
Transfers out of Level III | (34.6 | ) | — | — | (8.2 | ) | — | (42.8 | ) | ||||||||||||||
Ending balance at December 31, 2015 | $ | 186.2 | $ | — | $ | 1.9 | $ | 25.6 | $ | 102.1 | $ | 315.8 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2015 | $ | (0.6 | ) | $ | — | $ | — | $ | — | $ | (1.4 | ) | $ | (2.0 | ) | ||||||||
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 | ) |
Carrying Value | Estimated Fair Value | ||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||
December 31, 2015 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 2,041.1 | $ | — | $ | — | $ | 2,041.1 | $ | 2,041.1 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 540.0 | — | 540.0 | — | 540.0 | ||||||||||||||
Commercial paper | 682.2 | — | 682.2 | — | 682.2 | ||||||||||||||
Notes | 14,311.6 | — | 14,523.2 | — | 14,523.2 | ||||||||||||||
Convertible debentures | 330.7 | — | 980.1 | — | 980.1 | ||||||||||||||
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 |
2015 | 2014 | 2013 | |||||||||
Net realized gains (losses) on investments: | |||||||||||
Fixed maturity securities: | |||||||||||
Gross realized gains from sales | $ | 135.9 | $ | 198.2 | $ | 225.9 | |||||
Gross realized losses from sales | (182.1 | ) | (50.6 | ) | (125.7 | ) | |||||
Net realized (losses) gains from sales of fixed maturity securities | (46.2 | ) | 147.6 | 100.2 | |||||||
Equity securities: | |||||||||||
Gross realized gains from sales | 233.4 | 93.5 | 189.6 | ||||||||
Gross realized losses from sales | (45.1 | ) | (13.9 | ) | (13.4 | ) | |||||
Net realized gains from sales of equity securities | 188.3 | 79.6 | 176.2 | ||||||||
Other investments: | |||||||||||
Gross realized gains from sales | 139.8 | 14.4 | 107.2 | ||||||||
Gross realized losses from sales | (124.4 | ) | (64.6 | ) | (111.7 | ) | |||||
Net realized gains (losses) from sales of other investments | 15.4 | (50.2 | ) | (4.5 | ) | ||||||
Net realized gains on investments | 157.5 | 177.0 | 271.9 | ||||||||
Other-than-temporary impairment losses recognized in income: | |||||||||||
Fixed maturity securities | (31.2 | ) | (22.3 | ) | (42.5 | ) | |||||
Equity securities | (35.6 | ) | (13.5 | ) | (13.9 | ) | |||||
Other invested assets, long-term | (16.6 | ) | (13.2 | ) | (42.5 | ) | |||||
Other-than-temporary impairment losses recognized in income | (83.4 | ) | (49.0 | ) | (98.9 | ) | |||||
Change in net unrealized (losses) gains on investments: | |||||||||||
Fixed maturity securities | (372.9 | ) | 145.2 | (679.8 | ) | ||||||
Equity securities | (217.7 | ) | 36.5 | 225.4 | |||||||
Other invested assets, long-term | (4.1 | ) | — | — | |||||||
Total change in net unrealized (losses) gains on investments | (594.7 | ) | 181.7 | (454.4 | ) | ||||||
Deferred income tax benefit (expense) | 210.4 | (63.1 | ) | 159.7 | |||||||
Net change in net unrealized (losses) gains on investments | (384.3 | ) | 118.6 | (294.7 | ) | ||||||
Net realized gains on investments, other-than-temporary impairment losses recognized in income and net change in net unrealized (losses) gains on investments | $ | (310.2 | ) | $ | 246.6 | $ | (121.7 | ) |
Commercial and Specialty Business | Government Business | Total | |||||||||
Balance as of January 1, 2014 | $ | 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 | ||||||||
Measurement period adjustments | — | — | — | ||||||||
Acquisitions | — | 480.2 | 480.2 | ||||||||
Balance as of December 31, 2015 | $ | 11,818.9 | $ | 5,743.3 | $ | 17,562.2 | |||||
Accumulated impairment as of December 31, 2015 | $ | (41.0 | ) | $ | — | $ | (41.0 | ) |
2015 | 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer relationships | $ | 3,394.4 | $ | (2,670.0 | ) | $ | 724.4 | $ | 3,318.4 | $ | (2,473.4 | ) | $ | 845.0 | |||||||||
Provider and hospital relationships | 150.9 | (58.6 | ) | 92.3 | 140.9 | (51.4 | ) | 89.5 | |||||||||||||||
Other | 90.7 | (39.7 | ) | 51.0 | 61.6 | (33.3 | ) | 28.3 | |||||||||||||||
Total | 3,636.0 | (2,768.3 | ) | 867.7 | 3,520.9 | (2,558.1 | ) | 962.8 | |||||||||||||||
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 | |||||||||||||||||
State Medicaid licenses | 991.6 | — | 991.6 | 696.6 | — | 696.6 | |||||||||||||||||
Total | 7,290.3 | — | 7,290.3 | 6,995.3 | — | 6,995.3 | |||||||||||||||||
Other intangible assets | $ | 10,926.3 | $ | (2,768.3 | ) | $ | 8,158.0 | $ | 10,516.2 | $ | (2,558.1 | ) | $ | 7,958.1 |
2015 | 2014 | ||||||
Deferred tax assets relating to: | |||||||
Retirement benefits | $ | 364.8 | $ | 357.7 | |||
Accrued expenses | 344.6 | 329.9 | |||||
Insurance reserves | 247.1 | 209.7 | |||||
Net operating loss carryforwards | 18.1 | 14.8 | |||||
Bad debt reserves | 154.8 | 132.9 | |||||
State income tax | 43.4 | 40.6 | |||||
Deferred compensation | 40.1 | 46.6 | |||||
Investment basis difference | 62.2 | 88.2 | |||||
Other | 68.4 | 34.2 | |||||
Total deferred tax assets | 1,343.5 | 1,254.6 | |||||
Valuation allowance | — | (2.6 | ) | ||||
Total deferred tax assets, net of valuation allowance | 1,343.5 | 1,252.0 | |||||
Deferred tax liabilities relating to: | |||||||
Unrealized gains on securities | 127.8 | 331.4 | |||||
Intangible assets: | |||||||
Trademarks and state Medicaid licenses | 2,547.6 | 2,444.3 | |||||
Customer, provider and hospital relationships | 269.2 | 308.6 | |||||
Internally developed software and other amortization differences | 436.6 | 403.6 | |||||
Retirement benefits | 252.7 | 241.1 | |||||
Debt discount | 61.9 | 184.0 | |||||
State deferred tax | 36.4 | 49.1 | |||||
Depreciation and amortization | 44.2 | 29.6 | |||||
Other | 197.7 | 205.9 | |||||
Total deferred tax liabilities | 3,974.1 | 4,197.6 | |||||
Net deferred tax liability | $ | (2,630.6 | ) | $ | (2,945.6 | ) |
2015 | 2014 | 2013 | |||||||||
Current tax expense (benefit): | |||||||||||
Federal | $ | 1,996.6 | $ | 1,629.4 | $ | 1,226.4 | |||||
State and local | 133.0 | 65.8 | (42.6 | ) | |||||||
Total current tax expense | 2,129.6 | 1,695.2 | 1,183.8 | ||||||||
Deferred tax (benefit) expense | (58.6 | ) | 112.8 | 22.1 | |||||||
Total income tax expense | $ | 2,071.0 | $ | 1,808.0 | $ | 1,205.9 |
2015 | 2014 | 2013 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Amount at statutory rate | $ | 1,620.9 | 35.0 | % | $ | 1,528.8 | 35.0 | % | $ | 1,344.1 | 35.0 | % | ||||||||
State and local income taxes net of federal tax benefit | 75.3 | 1.6 | 49.0 | 1.1 | 24.4 | 0.6 | ||||||||||||||
Tax exempt interest and dividends received deduction | (63.2 | ) | (1.3 | ) | (65.9 | ) | (1.5 | ) | (64.9 | ) | (1.7 | ) | ||||||||
HIP Fee | 422.6 | 9.1 | 312.6 | 7.2 | — | — | ||||||||||||||
Other, net | 15.4 | 0.3 | (16.5 | ) | (0.4 | ) | (97.7 | ) | (2.5 | ) | ||||||||||
Total income tax expense | $ | 2,071.0 | 44.7 | % | $ | 1,808.0 | 41.4 | % | $ | 1,205.9 | 31.4 | % |
2015 | 2014 | ||||||
Balance at January 1 | $ | 115.8 | $ | 103.2 | |||
Additions for tax positions related to: | |||||||
Current year | 39.8 | 10.9 | |||||
Prior years | 65.1 | 31.3 | |||||
Reductions related to: | |||||||
Tax positions of prior years | (7.9 | ) | (24.5 | ) | |||
Settlements with taxing authorities | (0.8 | ) | (5.1 | ) | |||
Balance at December 31 | $ | 212.0 | $ | 115.8 |
2015 | 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer relationships | $ | 3,394.4 | $ | (2,670.0 | ) | $ | 724.4 | $ | 3,318.4 | $ | (2,473.4 | ) | $ | 845.0 | |||||||||
Provider and hospital relationships | 150.9 | (58.6 | ) | 92.3 | 140.9 | (51.4 | ) | 89.5 | |||||||||||||||
Other | 90.7 | (39.7 | ) | 51.0 | 61.6 | (33.3 | ) | 28.3 | |||||||||||||||
Total | 3,636.0 | (2,768.3 | ) | 867.7 | 3,520.9 | (2,558.1 | ) | 962.8 | |||||||||||||||
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 | |||||||||||||||||
State Medicaid licenses | 991.6 | — | 991.6 | 696.6 | — | 696.6 | |||||||||||||||||
Total | 7,290.3 | — | 7,290.3 | 6,995.3 | — | 6,995.3 | |||||||||||||||||
Other intangible assets | $ | 10,926.3 | $ | (2,768.3 | ) | $ | 8,158.0 | $ | 10,516.2 | $ | (2,558.1 | ) | $ | 7,958.1 |
2015 | 2014 | 2013 | |||||||||
Fixed maturity securities | $ | 679.0 | $ | 644.1 | $ | 638.9 | |||||
Equity securities | 61.7 | 57.7 | 45.9 | ||||||||
Cash equivalents | 0.7 | 0.8 | 1.0 | ||||||||
Other | (22.6 | ) | 66.3 | 19.8 | |||||||
Investment income | 718.8 | 768.9 | 705.6 | ||||||||
Investment expense | (41.2 | ) | (44.5 | ) | (46.5 | ) | |||||
Net investment income | $ | 677.6 | $ | 724.4 | $ | 659.1 |
Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 276.6 | $ | 278.6 | |||
Due after one year through five years | 4,872.9 | 4,792.3 | |||||
Due after five years through ten years | 5,392.0 | 5,390.1 | |||||
Due after ten years | 4,826.8 | 4,862.0 | |||||
Mortgage-backed securities | 2,132.1 | 2,155.2 | |||||
Total available-for-sale fixed maturity securities | $ | 17,500.4 | $ | 17,478.2 |
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, 2015 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 349.5 | $ | 2.0 | $ | (1.6 | ) | $ | — | $ | 349.9 | $ | — | ||||||||||
Government sponsored securities | 75.6 | 0.5 | (0.1 | ) | (0.1 | ) | 75.9 | — | |||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,976.7 | 284.1 | (4.0 | ) | (5.2 | ) | 6,251.6 | — | |||||||||||||||
Corporate securities | 8,209.7 | 61.1 | (267.2 | ) | (110.5 | ) | 7,893.1 | (15.4 | ) | ||||||||||||||
Residential mortgage-backed securities | 1,724.5 | 41.2 | (7.6 | ) | (7.2 | ) | 1,750.9 | — | |||||||||||||||
Commercial mortgage-backed securities | 407.6 | 1.4 | (4.3 | ) | (0.4 | ) | 404.3 | — | |||||||||||||||
Other debt securities | 756.8 | 4.1 | (5.8 | ) | (2.6 | ) | 752.5 | — | |||||||||||||||
Total fixed maturity securities | 17,500.4 | 394.4 | (290.6 | ) | (126.0 | ) | 17,478.2 | $ | (15.4 | ) | |||||||||||||
Equity securities | 1,083.1 | 420.6 | (30.9 | ) | — | 1,472.8 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,583.5 | $ | 815.0 | $ | (321.5 | ) | $ | (126.0 | ) | $ | 18,951.0 | |||||||||||
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 |
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, 2015 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 48 | $ | 248.4 | $ | (1.6 | ) | 2 | $ | 0.9 | $ | — | ||||||||||
Government sponsored securities | 13 | 18.3 | (0.1 | ) | 6 | 8.2 | (0.1 | ) | |||||||||||||
States, municipalities and political subdivisions, tax-exempt | 198 | 467.8 | (4.0 | ) | 43 | 83.0 | (5.2 | ) | |||||||||||||
Corporate securities | 2,492 | 4,912.3 | (267.2 | ) | 372 | 447.0 | (110.5 | ) | |||||||||||||
Residential mortgage-backed securities | 298 | 668.3 | (7.6 | ) | 119 | 186.3 | (7.2 | ) | |||||||||||||
Commercial mortgage-backed securities | 66 | 263.0 | (4.3 | ) | 17 | 38.5 | (0.4 | ) | |||||||||||||
Other debt securities | 153 | 488.2 | (5.8 | ) | 28 | 77.0 | (2.6 | ) | |||||||||||||
Total fixed maturity securities | 3,268 | 7,066.3 | (290.6 | ) | 587 | 840.9 | (126.0 | ) | |||||||||||||
Equity securities | 792 | 261.1 | (30.9 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 4,060 | $ | 7,327.4 | $ | (321.5 | ) | 587 | $ | 840.9 | $ | (126.0 | ) | |||||||||
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 | ) |
Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 276.6 | $ | 278.6 | |||
Due after one year through five years | 4,872.9 | 4,792.3 | |||||
Due after five years through ten years | 5,392.0 | 5,390.1 | |||||
Due after ten years | 4,826.8 | 4,862.0 | |||||
Mortgage-backed securities | 2,132.1 | 2,155.2 | |||||
Total available-for-sale fixed maturity securities | $ | 17,500.4 | $ | 17,478.2 |
2015 | 2014 | 2013 | |||||||||
Fixed maturity securities | $ | 679.0 | $ | 644.1 | $ | 638.9 | |||||
Equity securities | 61.7 | 57.7 | 45.9 | ||||||||
Cash equivalents | 0.7 | 0.8 | 1.0 | ||||||||
Other | (22.6 | ) | 66.3 | 19.8 | |||||||
Investment income | 718.8 | 768.9 | 705.6 | ||||||||
Investment expense | (41.2 | ) | (44.5 | ) | (46.5 | ) | |||||
Net investment income | $ | 677.6 | $ | 724.4 | $ | 659.1 |
2015 | 2014 | 2013 | |||||||||
Net realized gains (losses) on investments: | |||||||||||
Fixed maturity securities: | |||||||||||
Gross realized gains from sales | $ | 135.9 | $ | 198.2 | $ | 225.9 | |||||
Gross realized losses from sales | (182.1 | ) | (50.6 | ) | (125.7 | ) | |||||
Net realized (losses) gains from sales of fixed maturity securities | (46.2 | ) | 147.6 | 100.2 | |||||||
Equity securities: | |||||||||||
Gross realized gains from sales | 233.4 | 93.5 | 189.6 | ||||||||
Gross realized losses from sales | (45.1 | ) | (13.9 | ) | (13.4 | ) | |||||
Net realized gains from sales of equity securities | 188.3 | 79.6 | 176.2 | ||||||||
Other investments: | |||||||||||
Gross realized gains from sales | 139.8 | 14.4 | 107.2 | ||||||||
Gross realized losses from sales | (124.4 | ) | (64.6 | ) | (111.7 | ) | |||||
Net realized gains (losses) from sales of other investments | 15.4 | (50.2 | ) | (4.5 | ) | ||||||
Net realized gains on investments | 157.5 | 177.0 | 271.9 | ||||||||
Other-than-temporary impairment losses recognized in income: | |||||||||||
Fixed maturity securities | (31.2 | ) | (22.3 | ) | (42.5 | ) | |||||
Equity securities | (35.6 | ) | (13.5 | ) | (13.9 | ) | |||||
Other invested assets, long-term | (16.6 | ) | (13.2 | ) | (42.5 | ) | |||||
Other-than-temporary impairment losses recognized in income | (83.4 | ) | (49.0 | ) | (98.9 | ) | |||||
Change in net unrealized (losses) gains on investments: | |||||||||||
Fixed maturity securities | (372.9 | ) | 145.2 | (679.8 | ) | ||||||
Equity securities | (217.7 | ) | 36.5 | 225.4 | |||||||
Other invested assets, long-term | (4.1 | ) | — | — | |||||||
Total change in net unrealized (losses) gains on investments | (594.7 | ) | 181.7 | (454.4 | ) | ||||||
Deferred income tax benefit (expense) | 210.4 | (63.1 | ) | 159.7 | |||||||
Net change in net unrealized (losses) gains on investments | (384.3 | ) | 118.6 | (294.7 | ) | ||||||
Net realized gains on investments, other-than-temporary impairment losses recognized in income and net change in net unrealized (losses) gains on investments | $ | (310.2 | ) | $ | 246.6 | $ | (121.7 | ) |
2015 | 2014 | 2013 | |||||||||
Proceeds | $ | 11,779.8 | $ | 10,255.9 | $ | 13,662.8 | |||||
Gross realized gains | 509.1 | 306.1 | 522.7 | ||||||||
Gross realized losses | (351.6 | ) | (129.1 | ) | (250.8 | ) |
Overnight and Continuous | Less than 30 days | 30-90 days | Greater Than 90 days | Total | |||||||||||||||
Securities lending transactions | |||||||||||||||||||
United States Government securities | $ | 102.3 | $ | 9.7 | $ | 1.0 | $ | 32.1 | $ | 145.1 | |||||||||
Corporate securities | 813.3 | — | — | — | 813.3 | ||||||||||||||
Equity securities | 300.2 | 6.3 | — | — | 306.5 | ||||||||||||||
Other debt securities | 36.0 | — | — | — | 36.0 | ||||||||||||||
Total | $ | 1,251.8 | $ | 16.0 | $ | 1.0 | $ | 32.1 | $ | 1,300.9 |
2016 | $ | 141.5 | |
2017 | 140.0 | ||
2018 | 127.2 | ||
2019 | 109.9 | ||
2020 | 84.3 | ||
Thereafter | 245.8 | ||
Total minimum payments required | $ | 848.7 |
Years Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
Gross medical claims payable, beginning of year | $ | 6,861.2 | $ | 6,127.2 | $ | 6,174.5 | |||||
Ceded medical claims payable, beginning of year | (767.4 | ) | (23.4 | ) | (27.2 | ) | |||||
Net medical claims payable, beginning of year | 6,093.8 | 6,103.8 | 6,147.3 | ||||||||
Business combinations and purchase adjustments | 121.8 | — | — | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 60,708.4 | 56,305.8 | 55,894.3 | ||||||||
Prior years redundancies | (800.2 | ) | (541.9 | ) | (599.1 | ) | |||||
Total net incurred medical claims | 59,908.2 | 55,763.9 | 55,295.2 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 54,067.7 | 50,353.9 | 49,887.2 | ||||||||
Prior years medical claims | 5,131.9 | 5,420.0 | 5,451.5 | ||||||||
Total net payments | 59,199.6 | 55,773.9 | 55,338.7 | ||||||||
Net medical claims payable, end of year | 6,924.2 | 6,093.8 | 6,103.8 | ||||||||
Ceded medical claims payable, end of year | 645.6 | 767.4 | 23.4 | ||||||||
Gross medical claims payable, end of year | $ | 7,569.8 | $ | 6,861.2 | $ | 6,127.2 |
Favorable Developments by Changes in Key Assumptions | |||||||||||
2015 | 2014 | 2013 | |||||||||
Assumed trend factors | $ | (467.9 | ) | $ | (399.5 | ) | $ | (428.4 | ) | ||
Assumed completion factors | (332.3 | ) | (142.4 | ) | (170.7 | ) | |||||
Total | $ | (800.2 | ) | $ | (541.9 | ) | $ | (599.1 | ) |
2013 | ||||
Revenues | $ | 434.7 | ||
Income from discontinued operations before tax | $ | 17.3 | ||
Income tax benefit | (2.6 | ) | ||
Income from discontinued operations | 19.9 | |||
Loss on disposal from discontinued operations, net of tax | (164.5 | ) | ||
Loss from discontinued operations, net of tax | $ | (144.6 | ) |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Benefit obligation at beginning of year | $ | 1,914.4 | $ | 1,764.7 | $ | 646.6 | $ | 607.5 | |||||||
Service cost | 13.1 | 13.0 | 2.1 | 3.2 | |||||||||||
Interest cost | 68.2 | 74.1 | 23.4 | 26.3 | |||||||||||
Plan amendment | 0.8 | — | — | — | |||||||||||
Actuarial (gain) loss | (41.2 | ) | 185.4 | (58.1 | ) | 45.3 | |||||||||
Benefits paid | (122.0 | ) | (122.8 | ) | (35.3 | ) | (35.7 | ) | |||||||
Benefit obligation at end of year | $ | 1,833.3 | $ | 1,914.4 | $ | 578.7 | $ | 646.6 |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Fair value of plan assets at beginning of year | $ | 1,985.0 | $ | 1,944.0 | $ | 347.9 | $ | 349.8 | |||||||
Actual return on plan assets | (1.5 | ) | 160.2 | (1.2 | ) | 17.7 | |||||||||
Employer contributions | 3.7 | 3.6 | 17.3 | 16.1 | |||||||||||
Benefits paid | (122.0 | ) | (122.8 | ) | (35.6 | ) | (35.7 | ) | |||||||
Fair value of plan assets at end of year | $ | 1,865.2 | $ | 1,985.0 | $ | 328.4 | $ | 347.9 |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Noncurrent assets | $ | 103.4 | $ | 146.3 | $ | — | $ | — | |||||||
Current liabilities | (10.5 | ) | (4.3 | ) | — | — | |||||||||
Noncurrent liabilities | (61.0 | ) | (71.4 | ) | (250.3 | ) | (298.7 | ) | |||||||
Net amount at December 31 | $ | 31.9 | $ | 70.6 | $ | (250.3 | ) | $ | (298.7 | ) |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net actuarial loss | $ | 635.0 | $ | 563.7 | $ | 162.7 | $ | 211.2 | |||||||
Prior service credit | (0.1 | ) | (2.2 | ) | (73.5 | ) | (88.0 | ) | |||||||
Net amount before tax at December 31 | $ | 634.9 | $ | 561.5 | $ | 89.2 | $ | 123.2 |
Pension Benefits | Other Benefits | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Discount rate | 3.92 | % | 3.66 | % | 4.01 | % | 3.74 | % | |||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||
Expected rate of return on plan assets | 7.84 | % | 7.62 | % | 7.00 | % | 7.00 | % |
2015 | 2014 | 2013 | |||||||||
Pension Benefits | |||||||||||
Service cost | $ | 13.1 | $ | 13.0 | $ | 14.2 | |||||
Interest cost | 68.2 | 74.1 | 67.8 | ||||||||
Expected return on assets | (143.2 | ) | (137.5 | ) | (133.1 | ) | |||||
Recognized actuarial loss | 25.7 | 21.0 | 28.3 | ||||||||
Amortization of prior service credit | (0.6 | ) | (0.8 | ) | (0.8 | ) | |||||
Settlement loss | 6.5 | 5.2 | 11.0 | ||||||||
Net periodic benefit credit | $ | (30.3 | ) | $ | (25.0 | ) | $ | (12.6 | ) | ||
Other Benefits | |||||||||||
Service cost | $ | 2.1 | $ | 3.2 | $ | 6.7 | |||||
Interest cost | 23.4 | 26.3 | 22.4 | ||||||||
Expected return on assets | (23.7 | ) | (23.4 | ) | (22.1 | ) | |||||
Recognized actuarial loss | 15.3 | 9.4 | 11.2 | ||||||||
Amortization of prior service credit | (14.4 | ) | (14.4 | ) | (13.3 | ) | |||||
Net periodic benefit cost | $ | 2.7 | $ | 1.1 | $ | 4.9 |
2015 | 2014 | 2013 | ||||||
Pension Benefits | ||||||||
Discount rate | 3.66 | % | 4.39 | % | 3.60 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.62 | % | 7.66 | % | 7.91 | % | ||
Other Benefits | ||||||||
Discount rate | 3.74 | % | 4.48 | % | 3.71 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.50 | % | ||
Expected rate of return on plan assets | 7.00 | % | 7.00 | % | 7.00 | % |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2015 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 542.8 | $ | 4.4 | $ | — | $ | 547.2 | |||||||
Foreign securities | 258.8 | — | — | 258.8 | |||||||||||
Mutual funds | 34.7 | — | — | 34.7 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 176.6 | — | — | 176.6 | |||||||||||
Corporate securities | — | 364.0 | — | 364.0 | |||||||||||
Asset-backed securities | — | 141.1 | — | 141.1 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 48.1 | — | 48.1 | |||||||||||
Partnership interests | — | — | 117.1 | 117.1 | |||||||||||
Insurance company contracts | — | — | 174.2 | 174.2 | |||||||||||
Total pension benefit assets | $ | 1,012.9 | $ | 557.6 | $ | 291.3 | $ | 1,861.8 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 16.8 | $ | 0.3 | $ | — | $ | 17.1 | |||||||
Foreign securities | 7.4 | — | — | 7.4 | |||||||||||
Mutual funds | 36.6 | — | — | 36.6 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 3.8 | — | — | 3.8 | |||||||||||
Corporate securities | — | 9.5 | — | 9.5 | |||||||||||
Asset-backed securities | — | 7.7 | — | 7.7 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 1.5 | — | 1.5 | |||||||||||
Partnership interests | — | — | 1.5 | 1.5 | |||||||||||
Life insurance contracts | — | — | 229.9 | 229.9 | |||||||||||
Investment in DOL 103-12 trust | — | 13.4 | — | 13.4 | |||||||||||
Total other benefit assets | $ | 64.6 | $ | 32.4 | $ | 231.4 | $ | 328.4 |
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 |
Partnership Interests | Insurance Company Contracts | Life Insurance Contracts | Total | ||||||||||||
Year ended December 31, 2015 | |||||||||||||||
Beginning balance at January 1, 2015 | $ | 122.2 | $ | 187.7 | $ | 238.4 | $ | 548.3 | |||||||
Actual return on plan assets: | |||||||||||||||
Relating to assets still held at the reporting date | (5.9 | ) | (5.7 | ) | (6.8 | ) | (18.4 | ) | |||||||
Purchases | 10.9 | 7.0 | — | 17.9 | |||||||||||
Sales | (8.6 | ) | (14.8 | ) | (1.7 | ) | (25.1 | ) | |||||||
Ending balance at December 31, 2015 | $ | 118.6 | $ | 174.2 | $ | 229.9 | $ | 522.7 | |||||||
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 |
Pension Benefits | Other Benefits | ||||||
2016 | $ | 157.5 | $ | 41.1 | |||
2017 | 151.9 | 41.8 | |||||
2018 | 150.4 | 42.4 | |||||
2019 | 147.8 | 42.8 | |||||
2020 | 146.5 | 42.6 | |||||
2021 – 2025 | 637.1 | 201.8 |
2015 | 2014 | ||||||
Land and improvements | $ | 21.5 | $ | 25.8 | |||
Building and improvements | 216.6 | 279.9 | |||||
Data processing equipment, furniture and other equipment | 1,046.1 | 940.3 | |||||
Computer software, purchased and internally developed | 2,344.9 | 2,162.4 | |||||
Leasehold improvements | 429.3 | 356.4 | |||||
Property and equipment, gross | 4,058.4 | 3,764.8 | |||||
Accumulated depreciation and amortization | (2,038.6 | ) | (1,820.5 | ) | |||
Property and equipment, net | $ | 2,019.8 | $ | 1,944.3 |
2015 | 2014 | ||||||
Land and improvements | $ | 21.5 | $ | 25.8 | |||
Building and improvements | 216.6 | 279.9 | |||||
Data processing equipment, furniture and other equipment | 1,046.1 | 940.3 | |||||
Computer software, purchased and internally developed | 2,344.9 | 2,162.4 | |||||
Leasehold improvements | 429.3 | 356.4 | |||||
Property and equipment, gross | 4,058.4 | 3,764.8 | |||||
Accumulated depreciation and amortization | (2,038.6 | ) | (1,820.5 | ) | |||
Property and equipment, net | $ | 2,019.8 | $ | 1,944.3 |
For the Quarter Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
2015 | |||||||||||||||
Total revenues | $ | 19,051.5 | $ | 20,015.5 | $ | 19,901.6 | $ | 20,187.9 | |||||||
Income before income taxes | 1,569.1 | 1,558.0 | 1,129.6 | 374.3 | |||||||||||
Net income | 865.2 | 859.1 | 654.8 | 180.9 | |||||||||||
Basic net income per share | $ | 3.25 | $ | 3.27 | $ | 2.51 | $ | 0.69 | |||||||
Diluted net income per share | 3.09 | 3.13 | 2.43 | 0.68 | |||||||||||
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 |
2015 | 2014 | 2013 | |||||||||
Proceeds | $ | 11,779.8 | $ | 10,255.9 | $ | 13,662.8 | |||||
Gross realized gains | 509.1 | 306.1 | 522.7 | ||||||||
Gross realized losses | (351.6 | ) | (129.1 | ) | (250.8 | ) |
2015 | 2014 | 2013 | |||||||||
Reportable segments operating gain | $ | 4,753.1 | $ | 4,418.4 | $ | 4,001.4 | |||||
Net investment income | 677.6 | 724.4 | 659.1 | ||||||||
Net realized gains on investments | 157.5 | 177.0 | 271.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (83.4 | ) | (49.0 | ) | (98.9 | ) | |||||
Interest expense | (653.0 | ) | (600.7 | ) | (602.7 | ) | |||||
Amortization of other intangible assets | (230.1 | ) | (220.9 | ) | (245.3 | ) | |||||
Gain (loss) on extinguishment of debt | 9.3 | (81.1 | ) | (145.3 | ) | ||||||
Income from continuing operations before income tax expense | $ | 4,631.0 | $ | 4,368.1 | $ | 3,840.2 |
2015 | 2014 | 2013 | |||||||||
Reportable segments operating revenues | $ | 78,404.8 | $ | 73,021.7 | $ | 70,191.4 | |||||
Net investment income | 677.6 | 724.4 | 659.1 | ||||||||
Net realized gains on investments | 157.5 | 177.0 | 271.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (83.4 | ) | (49.0 | ) | (98.9 | ) | |||||
Total revenues | $ | 79,156.5 | $ | 73,874.1 | $ | 71,023.5 |
2015 | 2014 | 2013 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 72,925.5 | $ | 73,259.2 | $ | 68,628.6 | $ | 68,304.3 | $ | 65,939.1 | $ | 66,038.9 | |||||||||||
Assumed | 221.8 | 221.9 | 192.3 | 194.0 | 174.3 | 174.0 | |||||||||||||||||
Ceded | (95.8 | ) | (96.0 | ) | (108.5 | ) | (108.5 | ) | (92.6 | ) | (93.8 | ) | |||||||||||
Net premiums | $ | 73,051.5 | $ | 73,385.1 | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 | |||||||||||
Percentage—assumed to net premiums | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % |
2015 | 2014 | 2013 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Reportable segments: | |||||||||||||||||||||||
Commercial and Specialty Business | $ | 33,016.9 | $ | 33,078.0 | $ | 35,084.7 | $ | 35,045.2 | $ | 35,733.9 | $ | 35,772.0 | |||||||||||
Government Business | 40,034.6 | 40,307.1 | 33,627.7 | 33,344.6 | 30,286.9 | 30,347.1 | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Net premiums | $ | 73,051.5 | $ | 73,385.1 | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 |
2015 | 2014 | 2013 | |||||||||
Direct | $ | 61,674.0 | $ | 57,496.6 | $ | 56,185.2 | |||||
Assumed | 192.2 | 182.4 | 155.6 | ||||||||
Ceded | (749.3 | ) | (824.1 | ) | (103.7 | ) | |||||
Net benefit expense | $ | 61,116.9 | $ | 56,854.9 | $ | 56,237.1 |
2015 | 2014 | ||||||
Policy liabilities, assumed | $ | 56.7 | $ | 57.4 | |||
Unearned income, assumed | 0.5 | 0.4 | |||||
Premiums payable, ceded | 9.3 | 7.7 | |||||
Premiums receivable, assumed | 23.2 | 5.4 |
2015 | 2014 | ||||||
Investments: | |||||||
Gross unrealized gains | $ | 815.0 | $ | 1,154.9 | |||
Gross unrealized losses | (447.5 | ) | (196.8 | ) | |||
Net pretax unrealized gains | 367.5 | 958.1 | |||||
Deferred tax liability | (124.2 | ) | (330.5 | ) | |||
Net unrealized gains on investments | 243.3 | 627.6 | |||||
Non-credit components of OTTI on investments: | |||||||
Gross unrealized losses | (15.4 | ) | (6.8 | ) | |||
Deferred tax asset | 5.4 | 2.4 | |||||
Net unrealized non-credit component of OTTI on investments | (10.0 | ) | (4.4 | ) | |||
Cash flow hedges: | |||||||
Gross unrealized losses | (124.8 | ) | (55.2 | ) | |||
Deferred tax asset | 43.7 | 19.3 | |||||
Net unrealized losses on cash flow hedges | (81.1 | ) | (35.9 | ) | |||
Defined benefit pension plans: | |||||||
Deferred net actuarial loss | (635.0 | ) | (563.7 | ) | |||
Deferred prior service credits | 0.1 | 2.2 | |||||
Deferred tax asset | 250.4 | 223.2 | |||||
Net unrecognized periodic benefit costs for defined benefit pension plans | (384.5 | ) | (338.3 | ) | |||
Postretirement benefit plans: | |||||||
Deferred net actuarial loss | (162.7 | ) | (211.2 | ) | |||
Deferred prior service credits | 73.5 | 88.0 | |||||
Deferred tax asset | 35.1 | 48.9 | |||||
Net unrecognized periodic benefit costs for postretirement benefit plans | (54.1 | ) | (74.3 | ) | |||
Foreign currency translation adjustments: | |||||||
Gross unrealized losses | (9.5 | ) | (4.3 | ) | |||
Deferred tax asset | 3.3 | 1.5 | |||||
Net unrealized losses on foreign currency translation adjustments | (6.2 | ) | (2.8 | ) | |||
Accumulated other comprehensive (loss) income | $ | (292.6 | ) | $ | 171.9 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2015 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 542.8 | $ | 4.4 | $ | — | $ | 547.2 | |||||||
Foreign securities | 258.8 | — | — | 258.8 | |||||||||||
Mutual funds | 34.7 | — | — | 34.7 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 176.6 | — | — | 176.6 | |||||||||||
Corporate securities | — | 364.0 | — | 364.0 | |||||||||||
Asset-backed securities | — | 141.1 | — | 141.1 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 48.1 | — | 48.1 | |||||||||||
Partnership interests | — | — | 117.1 | 117.1 | |||||||||||
Insurance company contracts | — | — | 174.2 | 174.2 | |||||||||||
Total pension benefit assets | $ | 1,012.9 | $ | 557.6 | $ | 291.3 | $ | 1,861.8 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 16.8 | $ | 0.3 | $ | — | $ | 17.1 | |||||||
Foreign securities | 7.4 | — | — | 7.4 | |||||||||||
Mutual funds | 36.6 | — | — | 36.6 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 3.8 | — | — | 3.8 | |||||||||||
Corporate securities | — | 9.5 | — | 9.5 | |||||||||||
Asset-backed securities | — | 7.7 | — | 7.7 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 1.5 | — | 1.5 | |||||||||||
Partnership interests | — | — | 1.5 | 1.5 | |||||||||||
Life insurance contracts | — | — | 229.9 | 229.9 | |||||||||||
Investment in DOL 103-12 trust | — | 13.4 | — | 13.4 | |||||||||||
Total other benefit assets | $ | 64.6 | $ | 32.4 | $ | 231.4 | $ | 328.4 |
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 |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Noncurrent assets | $ | 103.4 | $ | 146.3 | $ | — | $ | — | |||||||
Current liabilities | (10.5 | ) | (4.3 | ) | — | — | |||||||||
Noncurrent liabilities | (61.0 | ) | (71.4 | ) | (250.3 | ) | (298.7 | ) | |||||||
Net amount at December 31 | $ | 31.9 | $ | 70.6 | $ | (250.3 | ) | $ | (298.7 | ) |
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, 2015 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 349.5 | $ | 2.0 | $ | (1.6 | ) | $ | — | $ | 349.9 | $ | — | ||||||||||
Government sponsored securities | 75.6 | 0.5 | (0.1 | ) | (0.1 | ) | 75.9 | — | |||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,976.7 | 284.1 | (4.0 | ) | (5.2 | ) | 6,251.6 | — | |||||||||||||||
Corporate securities | 8,209.7 | 61.1 | (267.2 | ) | (110.5 | ) | 7,893.1 | (15.4 | ) | ||||||||||||||
Residential mortgage-backed securities | 1,724.5 | 41.2 | (7.6 | ) | (7.2 | ) | 1,750.9 | — | |||||||||||||||
Commercial mortgage-backed securities | 407.6 | 1.4 | (4.3 | ) | (0.4 | ) | 404.3 | — | |||||||||||||||
Other debt securities | 756.8 | 4.1 | (5.8 | ) | (2.6 | ) | 752.5 | — | |||||||||||||||
Total fixed maturity securities | 17,500.4 | 394.4 | (290.6 | ) | (126.0 | ) | 17,478.2 | $ | (15.4 | ) | |||||||||||||
Equity securities | 1,083.1 | 420.6 | (30.9 | ) | — | 1,472.8 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,583.5 | $ | 815.0 | $ | (321.5 | ) | $ | (126.0 | ) | $ | 18,951.0 | |||||||||||
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 |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Fair value of plan assets at beginning of year | $ | 1,985.0 | $ | 1,944.0 | $ | 347.9 | $ | 349.8 | |||||||
Actual return on plan assets | (1.5 | ) | 160.2 | (1.2 | ) | 17.7 | |||||||||
Employer contributions | 3.7 | 3.6 | 17.3 | 16.1 | |||||||||||
Benefits paid | (122.0 | ) | (122.8 | ) | (35.6 | ) | (35.7 | ) | |||||||
Fair value of plan assets at end of year | $ | 1,865.2 | $ | 1,985.0 | $ | 328.4 | $ | 347.9 |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Benefit obligation at beginning of year | $ | 1,914.4 | $ | 1,764.7 | $ | 646.6 | $ | 607.5 | |||||||
Service cost | 13.1 | 13.0 | 2.1 | 3.2 | |||||||||||
Interest cost | 68.2 | 74.1 | 23.4 | 26.3 | |||||||||||
Plan amendment | 0.8 | — | — | — | |||||||||||
Actuarial (gain) loss | (41.2 | ) | 185.4 | (58.1 | ) | 45.3 | |||||||||
Benefits paid | (122.0 | ) | (122.8 | ) | (35.3 | ) | (35.7 | ) | |||||||
Benefit obligation at end of year | $ | 1,833.3 | $ | 1,914.4 | $ | 578.7 | $ | 646.6 |
2015 | 2014 | 2013 | |||||||||
Current tax expense (benefit): | |||||||||||
Federal | $ | 1,996.6 | $ | 1,629.4 | $ | 1,226.4 | |||||
State and local | 133.0 | 65.8 | (42.6 | ) | |||||||
Total current tax expense | 2,129.6 | 1,695.2 | 1,183.8 | ||||||||
Deferred tax (benefit) expense | (58.6 | ) | 112.8 | 22.1 | |||||||
Total income tax expense | $ | 2,071.0 | $ | 1,808.0 | $ | 1,205.9 |
2015 | 2014 | 2013 | |||||||||
Investments: | |||||||||||
Net holding (loss) gain on investment securities arising during the period, net of tax benefit (expense) of $180.4, ($107.9), and $102.4, respectively | $ | (336.1 | ) | $ | 201.8 | $ | (182.2 | ) | |||
Reclassification adjustment for net realized gain on investment securities, net of tax expense of $25.9, $44.8 and $60.6, respectively | (48.2 | ) | (83.2 | ) | (112.5 | ) | |||||
Total reclassification adjustment on investments | (384.3 | ) | 118.6 | (294.7 | ) | ||||||
Non-credit component of OTTI on investments: | |||||||||||
Non-credit component of OTTI on investments, net of tax benefit (expense) of $3.0, $2.1, and ($0.9), respectively | (5.6 | ) | (3.9 | ) | 1.7 | ||||||
Cash flow hedges: | |||||||||||
Holding (loss) gain, net of tax benefit (expense) of $24.4, $1.9, and ($1.6), respectively | (45.2 | ) | (3.6 | ) | 3.0 | ||||||
Other: | |||||||||||
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax benefit (expense) of $13.4, $75.2, and ($106.8), respectively | (26.0 | ) | (118.1 | ) | 172.7 | ||||||
Foreign currency translation adjustment, net of tax benefit (expense) of $1.8, $2.2, and ($0.6), respectively | (3.4 | ) | (4.3 | ) | 1.4 | ||||||
Net loss recognized in other comprehensive loss, net of tax benefit of $248.9, $18.3, and $53.1, respectively | $ | (464.5 | ) | $ | (11.3 | ) | $ | (115.9 | ) |
2015 | 2014 | ||||||
Senior unsecured notes: | |||||||
1.250%, due 2015 | $ | — | $ | 624.3 | |||
2.375%, due 2017 | 399.9 | 398.9 | |||||
5.875%, due 2017 | 527.6 | 526.7 | |||||
1.875%, due 2018 | 621.9 | 616.4 | |||||
2.300%, due 2018 | 645.9 | 644.3 | |||||
2.250%, due 2019 | 843.9 | 842.1 | |||||
7.000%, due 2019 | 438.9 | 438.5 | |||||
4.350%, due 2020 | 702.9 | 695.3 | |||||
3.700%, due 2021 | 696.2 | 695.6 | |||||
3.125%, due 2022 | 842.7 | 841.6 | |||||
3.300%, due 2023 | 992.2 | 991.2 | |||||
3.500%, due 2024 | 790.9 | 789.8 | |||||
5.950%, due 2034 | 444.5 | 444.4 | |||||
5.850%, due 2036 | 768.0 | 767.7 | |||||
6.375%, due 2037 | 639.6 | 639.3 | |||||
5.800%, due 2040 | 193.8 | 206.4 | |||||
4.625%, due 2042 | 885.8 | 885.4 | |||||
4.650%, due 2043 | 985.5 | 985.0 | |||||
4.650%, due 2044 | 790.5 | 790.1 | |||||
5.100%, due 2044 | 593.3 | 593.1 | |||||
4.850%, due 2054 | 246.6 | 246.5 | |||||
Remarketable subordinated notes: | |||||||
1.900%, due 2028 | 1,236.1 | — | |||||
Surplus notes: | |||||||
9.000%, due 2027 | 24.9 | 24.9 | |||||
Senior convertible debentures: | |||||||
2.750%, due 2042 | 330.7 | 956.4 | |||||
Variable rate debt: | |||||||
Commercial paper program | 682.2 | — | |||||
Total long-term debt | 15,324.5 | 14,643.9 | |||||
Current portion of long-term debt | — | (624.3 | ) | ||||
Long-term debt, less current portion | $ | 15,324.5 | $ | 14,019.6 |
2015 | 2014 | ||||||
Deferred tax assets relating to: | |||||||
Retirement benefits | $ | 364.8 | $ | 357.7 | |||
Accrued expenses | 344.6 | 329.9 | |||||
Insurance reserves | 247.1 | 209.7 | |||||
Net operating loss carryforwards | 18.1 | 14.8 | |||||
Bad debt reserves | 154.8 | 132.9 | |||||
State income tax | 43.4 | 40.6 | |||||
Deferred compensation | 40.1 | 46.6 | |||||
Investment basis difference | 62.2 | 88.2 | |||||
Other | 68.4 | 34.2 | |||||
Total deferred tax assets | 1,343.5 | 1,254.6 | |||||
Valuation allowance | — | (2.6 | ) | ||||
Total deferred tax assets, net of valuation allowance | 1,343.5 | 1,252.0 | |||||
Deferred tax liabilities relating to: | |||||||
Unrealized gains on securities | 127.8 | 331.4 | |||||
Intangible assets: | |||||||
Trademarks and state Medicaid licenses | 2,547.6 | 2,444.3 | |||||
Customer, provider and hospital relationships | 269.2 | 308.6 | |||||
Internally developed software and other amortization differences | 436.6 | 403.6 | |||||
Retirement benefits | 252.7 | 241.1 | |||||
Debt discount | 61.9 | 184.0 | |||||
State deferred tax | 36.4 | 49.1 | |||||
Depreciation and amortization | 44.2 | 29.6 | |||||
Other | 197.7 | 205.9 | |||||
Total deferred tax liabilities | 3,974.1 | 4,197.6 | |||||
Net deferred tax liability | $ | (2,630.6 | ) | $ | (2,945.6 | ) |
Effective Portion | ||||||||||||||||
Pretax Hedge Loss Recognized in Other Comprehensive Income (Loss) | 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, 2015 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (75.2 | ) | Interest expense | $ | (5.5 | ) | None | $ | — | ||||||
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 | $ | — |
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, 2015 | ||||||||||||||
Interest rate swaps | Interest expense | $ | 12.1 | Fixed rate debt | Interest expense | $ | (12.1 | ) | ||||||
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 | ) |
Contractual/ Notional Amount | Balance Sheet Location | Estimated Fair Value | |||||||||||
Asset | (Liability) | ||||||||||||
December 31, 2015 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 1,385.0 | Other assets/other liabilities | $ | 7.0 | $ | (0.8 | ) | |||||
Interest rate swaps - forward starting pay fixed | 4,650.0 | Other assets/other liabilities | 15.7 | (90.9 | ) | ||||||||
Subtotal hedging | 6,035.0 | Subtotal hedging | 22.7 | (91.7 | ) | ||||||||
Non-hedging instruments | |||||||||||||
Interest rate swaps | 271.7 | Equity securities | 1.2 | (6.0 | ) | ||||||||
Options | 16,917.4 | Other assets/other liabilities | 305.7 | (332.1 | ) | ||||||||
Futures | — | Equity securities | 0.1 | (0.2 | ) | ||||||||
Subtotal non-hedging | 17,189.1 | Subtotal non-hedging | 307.0 | (338.3 | ) | ||||||||
Total derivatives | $ | 23,224.1 | Total derivatives | 329.7 | (430.0 | ) | |||||||
Amounts netted | (170.6 | ) | 170.6 | ||||||||||
Net derivatives | $ | 159.1 | $ | (259.4 | ) | ||||||||
December 31, 2014 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 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 | ) |
Type of Fair Value Hedges | Year Entered Into | Outstanding Notional Amount | Interest Rate Received | Expiration Date | |||||||||||
2015 | 2014 | ||||||||||||||
Interest rate swap | 2015 | $ | 200.0 | $ | — | 4.350 | % | August 15, 2020 | |||||||
Interest rate swap | 2014 | 150.0 | 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 | ||||||||||
Total notional amount outstanding | $ | 1,385.0 | $ | 1,185.0 |
2013 | ||||
Revenues | $ | 434.7 | ||
Income from discontinued operations before tax | $ | 17.3 | ||
Income tax benefit | (2.6 | ) | ||
Income from discontinued operations | 19.9 | |||
Loss on disposal from discontinued operations, net of tax | (164.5 | ) | ||
Loss from discontinued operations, net of tax | $ | (144.6 | ) |
2015 | 2014 | 2013 | ||||||
Denominator for basic earnings per share—weighted-average shares | 263.0 | 275.9 | 298.5 | |||||
Effect of dilutive securities—employee stock options, non-vested restricted stock awards and convertible debentures | 9.9 | 10.0 | 5.3 | |||||
Denominator for diluted earnings per share | 272.9 | 285.9 | 303.8 |
Partnership Interests | Insurance Company Contracts | Life Insurance Contracts | Total | ||||||||||||
Year ended December 31, 2015 | |||||||||||||||
Beginning balance at January 1, 2015 | $ | 122.2 | $ | 187.7 | $ | 238.4 | $ | 548.3 | |||||||
Actual return on plan assets: | |||||||||||||||
Relating to assets still held at the reporting date | (5.9 | ) | (5.7 | ) | (6.8 | ) | (18.4 | ) | |||||||
Purchases | 10.9 | 7.0 | — | 17.9 | |||||||||||
Sales | (8.6 | ) | (14.8 | ) | (1.7 | ) | (25.1 | ) | |||||||
Ending balance at December 31, 2015 | $ | 118.6 | $ | 174.2 | $ | 229.9 | $ | 522.7 | |||||||
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 |
2015 | 2014 | 2013 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Amount at statutory rate | $ | 1,620.9 | 35.0 | % | $ | 1,528.8 | 35.0 | % | $ | 1,344.1 | 35.0 | % | ||||||||
State and local income taxes net of federal tax benefit | 75.3 | 1.6 | 49.0 | 1.1 | 24.4 | 0.6 | ||||||||||||||
Tax exempt interest and dividends received deduction | (63.2 | ) | (1.3 | ) | (65.9 | ) | (1.5 | ) | (64.9 | ) | (1.7 | ) | ||||||||
HIP Fee | 422.6 | 9.1 | 312.6 | 7.2 | — | — | ||||||||||||||
Other, net | 15.4 | 0.3 | (16.5 | ) | (0.4 | ) | (97.7 | ) | (2.5 | ) | ||||||||||
Total income tax expense | $ | 2,071.0 | 44.7 | % | $ | 1,808.0 | 41.4 | % | $ | 1,205.9 | 31.4 | % |
2015 | 2014 | 2013 | |||||||||
Commercial and Specialty Business | |||||||||||
Managed care products | $ | 31,676.9 | $ | 33,755.6 | $ | 34,516.9 | |||||
Managed care services | 4,344.8 | 3,997.8 | 3,474.0 | ||||||||
Dental/Vision products and services | 1,111.7 | 1,037.3 | 952.5 | ||||||||
Other | 437.4 | 408.9 | 460.8 | ||||||||
Total Commercial and Specialty Business | 37,570.8 | 39,199.6 | 39,404.2 | ||||||||
Government Business | |||||||||||
Managed care products | 40,307.0 | 33,344.6 | 30,347.1 | ||||||||
Managed care services | 506.0 | 451.8 | 405.5 | ||||||||
Total Government Business | 40,813.0 | 33,796.4 | 30,752.6 | ||||||||
Other | |||||||||||
Other | 21.0 | 25.7 | 34.6 | ||||||||
Total product revenues | $ | 78,404.8 | $ | 73,021.7 | $ | 70,191.4 |
Pension Benefits | Other Benefits | ||||||
2016 | $ | 157.5 | $ | 41.1 | |||
2017 | 151.9 | 41.8 | |||||
2018 | 150.4 | 42.4 | |||||
2019 | 147.8 | 42.8 | |||||
2020 | 146.5 | 42.6 | |||||
2021 – 2025 | 637.1 | 201.8 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2015 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 701.0 | $ | — | $ | — | $ | 701.0 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 349.9 | — | — | 349.9 | |||||||||||
Government sponsored securities | — | 75.9 | — | 75.9 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,251.6 | — | 6,251.6 | |||||||||||
Corporate securities | 77.6 | 7,629.3 | 186.2 | 7,893.1 | |||||||||||
Residential mortgage-backed securities | — | 1,750.9 | — | 1,750.9 | |||||||||||
Commercial mortgage-backed securities | — | 402.4 | 1.9 | 404.3 | |||||||||||
Other debt securities | 55.7 | 671.2 | 25.6 | 752.5 | |||||||||||
Total fixed maturity securities | 483.2 | 16,781.3 | 213.7 | 17,478.2 | |||||||||||
Equity securities | 1,253.8 | 116.9 | 102.1 | 1,472.8 | |||||||||||
Other invested assets, current | 19.1 | — | — | 19.1 | |||||||||||
Securities lending collateral | 708.1 | 592.3 | — | 1,300.4 | |||||||||||
Derivatives (reported with other assets) | — | 159.1 | — | 159.1 | |||||||||||
Total assets | $ | 3,165.2 | $ | 17,649.6 | $ | 315.8 | $ | 21,130.6 | |||||||
Liabilities: | |||||||||||||||
Derivatives (reported with other liabilities) | $ | — | $ | (259.4 | ) | $ | — | $ | (259.4 | ) | |||||
Total liabilities | $ | — | $ | (259.4 | ) | $ | — | $ | (259.4 | ) | |||||
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 (reported with other liabilities) | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) | |||||
Total liabilities | $ | — | $ | (260.4 | ) | $ | — | $ | (260.4 | ) |
2016 | $ | 141.5 | |
2017 | 140.0 | ||
2018 | 127.2 | ||
2019 | 109.9 | ||
2020 | 84.3 | ||
Thereafter | 245.8 | ||
Total minimum payments required | $ | 848.7 |
Commercial and Specialty Business | Government Business | Total | |||||||||
Balance as of January 1, 2014 | $ | 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 | ||||||||
Measurement period adjustments | — | — | — | ||||||||
Acquisitions | — | 480.2 | 480.2 | ||||||||
Balance as of December 31, 2015 | $ | 11,818.9 | $ | 5,743.3 | $ | 17,562.2 | |||||
Accumulated impairment as of December 31, 2015 | $ | (41.0 | ) | $ | — | $ | (41.0 | ) |
Years Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
Gross medical claims payable, beginning of year | $ | 6,861.2 | $ | 6,127.2 | $ | 6,174.5 | |||||
Ceded medical claims payable, beginning of year | (767.4 | ) | (23.4 | ) | (27.2 | ) | |||||
Net medical claims payable, beginning of year | 6,093.8 | 6,103.8 | 6,147.3 | ||||||||
Business combinations and purchase adjustments | 121.8 | — | — | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 60,708.4 | 56,305.8 | 55,894.3 | ||||||||
Prior years redundancies | (800.2 | ) | (541.9 | ) | (599.1 | ) | |||||
Total net incurred medical claims | 59,908.2 | 55,763.9 | 55,295.2 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 54,067.7 | 50,353.9 | 49,887.2 | ||||||||
Prior years medical claims | 5,131.9 | 5,420.0 | 5,451.5 | ||||||||
Total net payments | 59,199.6 | 55,773.9 | 55,338.7 | ||||||||
Net medical claims payable, end of year | 6,924.2 | 6,093.8 | 6,103.8 | ||||||||
Ceded medical claims payable, end of year | 645.6 | 767.4 | 23.4 | ||||||||
Gross medical claims payable, end of year | $ | 7,569.8 | $ | 6,861.2 | $ | 6,127.2 |
2015 | 2014 | 2013 | |||||||||
Pension Benefits | |||||||||||
Service cost | $ | 13.1 | $ | 13.0 | $ | 14.2 | |||||
Interest cost | 68.2 | 74.1 | 67.8 | ||||||||
Expected return on assets | (143.2 | ) | (137.5 | ) | (133.1 | ) | |||||
Recognized actuarial loss | 25.7 | 21.0 | 28.3 | ||||||||
Amortization of prior service credit | (0.6 | ) | (0.8 | ) | (0.8 | ) | |||||
Settlement loss | 6.5 | 5.2 | 11.0 | ||||||||
Net periodic benefit credit | $ | (30.3 | ) | $ | (25.0 | ) | $ | (12.6 | ) | ||
Other Benefits | |||||||||||
Service cost | $ | 2.1 | $ | 3.2 | $ | 6.7 | |||||
Interest cost | 23.4 | 26.3 | 22.4 | ||||||||
Expected return on assets | (23.7 | ) | (23.4 | ) | (22.1 | ) | |||||
Recognized actuarial loss | 15.3 | 9.4 | 11.2 | ||||||||
Amortization of prior service credit | (14.4 | ) | (14.4 | ) | (13.3 | ) | |||||
Net periodic benefit cost | $ | 2.7 | $ | 1.1 | $ | 4.9 |
Pension Benefits | Other Benefits | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net actuarial loss | $ | 635.0 | $ | 563.7 | $ | 162.7 | $ | 211.2 | |||||||
Prior service credit | (0.1 | ) | (2.2 | ) | (73.5 | ) | (88.0 | ) | |||||||
Net amount before tax at December 31 | $ | 634.9 | $ | 561.5 | $ | 89.2 | $ | 123.2 |
Type of Non-hedging Derivatives | Income Statement Location of Gain (Loss) Recognized | Derivative Gain (Loss) Recognized | ||||
Year ended December 31, 2015 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on investments | $ | (22.2 | ) | ||
Interest rate swaps | Net realized gains on investments | (1.9 | ) | |||
Options | Net realized gains on investments | 34.7 | ||||
Futures | Net realized gains on investments | (0.1 | ) | |||
Swaptions | Net realized gains on investments | (0.1 | ) | |||
Total | $ | 10.4 | ||||
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 | ) |
For the Quarter Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
2015 | |||||||||||||||
Total revenues | $ | 19,051.5 | $ | 20,015.5 | $ | 19,901.6 | $ | 20,187.9 | |||||||
Income before income taxes | 1,569.1 | 1,558.0 | 1,129.6 | 374.3 | |||||||||||
Net income | 865.2 | 859.1 | 654.8 | 180.9 | |||||||||||
Basic net income per share | $ | 3.25 | $ | 3.27 | $ | 2.51 | $ | 0.69 | |||||||
Diluted net income per share | 3.09 | 3.13 | 2.43 | 0.68 | |||||||||||
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 |
Commercial and Specialty Business | Government Business | Other | Total | ||||||||||||
Year ended December 31, 2015 | |||||||||||||||
Operating revenue | $ | 37,570.8 | $ | 40,813.0 | $ | 21.0 | $ | 78,404.8 | |||||||
Operating gain (loss) | 2,854.0 | 1,978.5 | (79.4 | ) | 4,753.1 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 515.6 | 515.6 | |||||||||||
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 |
Number of Shares | Weighted-Average Option Price per Share | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2015 | 7.3 | $ | 70.30 | |||||||||
Granted | 1.3 | 146.73 | ||||||||||
Exercised | (2.4 | ) | 67.74 | |||||||||
Forfeited or expired | (0.2 | ) | 102.14 | |||||||||
Outstanding at December 31, 2015 | 6.0 | 87.23 | 4.21 | $ | 322.7 | |||||||
Exercisable at December 31, 2015 | 3.9 | 71.96 | 2.76 | $ | 263.3 |
2015 | 2014 | 2013 | ||||||
Risk-free interest rate | 1.96 | % | 2.16 | % | 1.25 | % | ||
Volatility factor | 31.00 | % | 35.00 | % | 35.00 | % | ||
Dividend yield (annual) | 1.70 | % | 2.00 | % | 2.40 | % | ||
Weighted-average expected life (years) | 4.00 | 3.75 | 4.00 |
Restricted Stock Shares and Units | Weighted-Average Grant Date Fair Value per Share | |||||
Nonvested at January 1, 2015 | 3.6 | $ | 75.63 | |||
Granted | 0.9 | 147.00 | ||||
Vested | (1.7 | ) | 72.25 | |||
Forfeited | (0.1 | ) | 101.57 | |||
Nonvested at December 31, 2015 | 2.7 | 101.66 |
Years Ended December 31 | ||||||||
2015 | 2014 | |||||||
Shares repurchased | 10.4 | 30.4 | ||||||
Average price per share | $ | 145.50 | $ | 98.52 | ||||
Aggregate cost | $ | 1,515.8 | $ | 2,998.8 | ||||
Authorization remaining at the end of each period | $ | 4,175.9 | $ | 5,691.7 |
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, 2015 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 48 | $ | 248.4 | $ | (1.6 | ) | 2 | $ | 0.9 | $ | — | ||||||||||
Government sponsored securities | 13 | 18.3 | (0.1 | ) | 6 | 8.2 | (0.1 | ) | |||||||||||||
States, municipalities and political subdivisions, tax-exempt | 198 | 467.8 | (4.0 | ) | 43 | 83.0 | (5.2 | ) | |||||||||||||
Corporate securities | 2,492 | 4,912.3 | (267.2 | ) | 372 | 447.0 | (110.5 | ) | |||||||||||||
Residential mortgage-backed securities | 298 | 668.3 | (7.6 | ) | 119 | 186.3 | (7.2 | ) | |||||||||||||
Commercial mortgage-backed securities | 66 | 263.0 | (4.3 | ) | 17 | 38.5 | (0.4 | ) | |||||||||||||
Other debt securities | 153 | 488.2 | (5.8 | ) | 28 | 77.0 | (2.6 | ) | |||||||||||||
Total fixed maturity securities | 3,268 | 7,066.3 | (290.6 | ) | 587 | 840.9 | (126.0 | ) | |||||||||||||
Equity securities | 792 | 261.1 | (30.9 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 4,060 | $ | 7,327.4 | $ | (321.5 | ) | 587 | $ | 840.9 | $ | (126.0 | ) | |||||||||
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 | ) |
Commercial and Specialty Business | Government Business | Other | Total | ||||||||||||
Year ended December 31, 2015 | |||||||||||||||
Operating revenue | $ | 37,570.8 | $ | 40,813.0 | $ | 21.0 | $ | 78,404.8 | |||||||
Operating gain (loss) | 2,854.0 | 1,978.5 | (79.4 | ) | 4,753.1 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 515.6 | 515.6 | |||||||||||
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 |
2015 | 2014 | 2013 | |||||||||
Commercial and Specialty Business | |||||||||||
Managed care products | $ | 31,676.9 | $ | 33,755.6 | $ | 34,516.9 | |||||
Managed care services | 4,344.8 | 3,997.8 | 3,474.0 | ||||||||
Dental/Vision products and services | 1,111.7 | 1,037.3 | 952.5 | ||||||||
Other | 437.4 | 408.9 | 460.8 | ||||||||
Total Commercial and Specialty Business | 37,570.8 | 39,199.6 | 39,404.2 | ||||||||
Government Business | |||||||||||
Managed care products | 40,307.0 | 33,344.6 | 30,347.1 | ||||||||
Managed care services | 506.0 | 451.8 | 405.5 | ||||||||
Total Government Business | 40,813.0 | 33,796.4 | 30,752.6 | ||||||||
Other | |||||||||||
Other | 21.0 | 25.7 | 34.6 | ||||||||
Total product revenues | $ | 78,404.8 | $ | 73,021.7 | $ | 70,191.4 |
2015 | 2014 | 2013 | |||||||||
Reportable segments operating revenues | $ | 78,404.8 | $ | 73,021.7 | $ | 70,191.4 | |||||
Net investment income | 677.6 | 724.4 | 659.1 | ||||||||
Net realized gains on investments | 157.5 | 177.0 | 271.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (83.4 | ) | (49.0 | ) | (98.9 | ) | |||||
Total revenues | $ | 79,156.5 | $ | 73,874.1 | $ | 71,023.5 |
2015 | 2014 | 2013 | |||||||||
Reportable segments operating gain | $ | 4,753.1 | $ | 4,418.4 | $ | 4,001.4 | |||||
Net investment income | 677.6 | 724.4 | 659.1 | ||||||||
Net realized gains on investments | 157.5 | 177.0 | 271.9 | ||||||||
Other-than-temporary impairment losses recognized in income | (83.4 | ) | (49.0 | ) | (98.9 | ) | |||||
Interest expense | (653.0 | ) | (600.7 | ) | (602.7 | ) | |||||
Amortization of other intangible assets | (230.1 | ) | (220.9 | ) | (245.3 | ) | |||||
Gain (loss) on extinguishment of debt | 9.3 | (81.1 | ) | (145.3 | ) | ||||||
Income from continuing operations before income tax expense | $ | 4,631.0 | $ | 4,368.1 | $ | 3,840.2 |
2015 | 2014 | 2013 | |||||||||
Options granted during the year | $ | 33.97 | $ | 22.41 | $ | 14.64 | |||||
Restricted stock and stock awards granted during the year | 147.00 | 90.53 | 63.06 |
Number of Shares | Weighted-Average Option Price per Share | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2015 | 7.3 | $ | 70.30 | |||||||||
Granted | 1.3 | 146.73 | ||||||||||
Exercised | (2.4 | ) | 67.74 | |||||||||
Forfeited or expired | (0.2 | ) | 102.14 | |||||||||
Outstanding at December 31, 2015 | 6.0 | 87.23 | 4.21 | $ | 322.7 | |||||||
Exercisable at December 31, 2015 | 3.9 | 71.96 | 2.76 | $ | 263.3 |
Restricted Stock Shares and Units | Weighted-Average Grant Date Fair Value per Share | |||||
Nonvested at January 1, 2015 | 3.6 | $ | 75.63 | |||
Granted | 0.9 | 147.00 | ||||
Vested | (1.7 | ) | 72.25 | |||
Forfeited | (0.1 | ) | 101.57 | |||
Nonvested at December 31, 2015 | 2.7 | 101.66 |
2015 | 2014 | 2013 | ||||||
Risk-free interest rate | 1.96 | % | 2.16 | % | 1.25 | % | ||
Volatility factor | 31.00 | % | 35.00 | % | 35.00 | % | ||
Dividend yield (annual) | 1.70 | % | 2.00 | % | 2.40 | % | ||
Weighted-average expected life (years) | 4.00 | 3.75 | 4.00 |
2015 | 2014 | 2013 | |||||||||
Options granted during the year | $ | 33.97 | $ | 22.41 | $ | 14.64 | |||||
Restricted stock and stock awards granted during the year | 147.00 | 90.53 | 63.06 |
Declaration Date | Record Date | Payment Date | Cash Dividend per Share | Total | ||||||||
Year ended December 31, 2015 | ||||||||||||
January 27, 2015 | March 10, 2015 | March 25, 2015 | $ | 0.6250 | $ | 166.6 | ||||||
April 28, 2015 | June 10, 2015 | June 25, 2015 | 0.6250 | 163.9 | ||||||||
July 28, 2015 | September 10, 2015 | September 25, 2015 | 0.6250 | 163.0 | ||||||||
October 27, 2015 | December 4, 2015 | December 21, 2015 | 0.6250 | 163.1 | ||||||||
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 |
Years Ended December 31 | ||||||||
2015 | 2014 | |||||||
Shares repurchased | 10.4 | 30.4 | ||||||
Average price per share | $ | 145.50 | $ | 98.52 | ||||
Aggregate cost | $ | 1,515.8 | $ | 2,998.8 | ||||
Authorization remaining at the end of each period | $ | 4,175.9 | $ | 5,691.7 |
2015 | 2014 | ||||||
Balance at January 1 | $ | 115.8 | $ | 103.2 | |||
Additions for tax positions related to: | |||||||
Current year | 39.8 | 10.9 | |||||
Prior years | 65.1 | 31.3 | |||||
Reductions related to: | |||||||
Tax positions of prior years | (7.9 | ) | (24.5 | ) | |||
Settlements with taxing authorities | (0.8 | ) | (5.1 | ) | |||
Balance at December 31 | $ | 212.0 | $ | 115.8 |
2015 | 2014 | 2013 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 72,925.5 | $ | 73,259.2 | $ | 68,628.6 | $ | 68,304.3 | $ | 65,939.1 | $ | 66,038.9 | |||||||||||
Assumed | 221.8 | 221.9 | 192.3 | 194.0 | 174.3 | 174.0 | |||||||||||||||||
Ceded | (95.8 | ) | (96.0 | ) | (108.5 | ) | (108.5 | ) | (92.6 | ) | (93.8 | ) | |||||||||||
Net premiums | $ | 73,051.5 | $ | 73,385.1 | $ | 68,712.4 | $ | 68,389.8 | $ | 66,020.8 | $ | 66,119.1 | |||||||||||
Percentage—assumed to net premiums | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % |
Overnight and Continuous | Less than 30 days | 30-90 days | Greater Than 90 days | Total | |||||||||||||||
Securities lending transactions | |||||||||||||||||||
United States Government securities | $ | 102.3 | $ | 9.7 | $ | 1.0 | $ | 32.1 | $ | 145.1 | |||||||||
Corporate securities | 813.3 | — | — | — | 813.3 | ||||||||||||||
Equity securities | 300.2 | 6.3 | — | — | 306.5 | ||||||||||||||
Other debt securities | 36.0 | — | — | — | 36.0 | ||||||||||||||
Total | $ | 1,251.8 | $ | 16.0 | $ | 1.0 | $ | 32.1 | $ | 1,300.9 |