Carrying Value | Estimated Fair Value | ||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||
December 31, 2017 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 3,343.8 | $ | — | $ | — | $ | 3,343.8 | $ | 3,343.8 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 1,275.0 | — | 1,275.0 | — | 1,275.0 | ||||||||||||||
Commercial paper | 803.6 | — | 803.6 | — | 803.6 | ||||||||||||||
Notes | 17,592.7 | — | 18,815.1 | — | 18,815.1 | ||||||||||||||
Convertible debentures | 260.5 | — | 1,215.7 | — | 1,215.7 | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 2,240.5 | $ | — | $ | — | $ | 2,240.5 | $ | 2,240.5 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 440.0 | — | 440.0 | — | 440.0 | ||||||||||||||
Commercial paper | 629.0 | — | 629.0 | — | 629.0 | ||||||||||||||
Notes | 14,323.8 | — | 14,858.4 | — | 14,858.4 | ||||||||||||||
Convertible debentures | 334.1 | — | 1,020.2 | — | 1,020.2 |
Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships | |||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||
Net Realized Gains on Financial Instruments | Interest Expense | Net Realized Gains on Financial Instruments | Interest Expense | Interest Expense | |||||||||||||||
Total amount of income or expense in the income statement in which the effects of fair value or cash flow hedges are recorded | $ | 144.8 | $ | (739.0 | ) | $ | 4.9 | $ | (723.0 | ) | $ | (653.0 | ) | ||||||
Gain (loss) on fair value hedging relationships | |||||||||||||||||||
Interest rate swaps | |||||||||||||||||||
Hedged items | — | 0.4 | — | (8.1 | ) | (12.1 | ) | ||||||||||||
Derivatives designated as hedging instruments | — | (0.4 | ) | — | 8.1 | 12.1 | |||||||||||||
Loss on cash flow hedging relationships | |||||||||||||||||||
Forward starting pay fixed swaps | |||||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive loss into net income | — | (6.6 | ) | — | (5.8 | ) | (5.5 | ) | |||||||||||
Amount of loss reclassified from accumulated other comprehensive loss into net income due to ineffectiveness and missed forecasted transactions | (7.2 | ) | — | (7.7 | ) | — | — |
Years Ended December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net incurred medical claims: | ||||||||||||
Commercial & Specialty Business | $ | 29,259.4 | $ | 27,330.8 | $ | 26,318.2 | ||||||
Government Business | 41,448.3 | 38,190.2 | 33,590.0 | |||||||||
Total net incurred medical claims | 70,707.7 | 65,521.0 | 59,908.2 | |||||||||
Quality improvement and other claims expense | 1,528.5 | 1,313.4 | 1,208.7 | |||||||||
Benefit expense | $ | 72,236.2 | $ | 66,834.4 | $ | 61,116.9 |
Pension Benefits | Other Benefits | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Discount rate | 3.44 | % | 3.77 | % | 3.42 | % | 3.82 | % | |||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||
Expected rate of return on plan assets | 7.83 | % | 7.95 | % | 7.00 | % | 7.00 | % |
2017 | 2016 | 2015 | ||||||
Pension Benefits | ||||||||
Discount rate | 3.77 | % | 3.92 | % | 3.66 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | ||
Expected rate of return on plan assets | 7.95 | % | 7.84 | % | 7.62 | % | ||
Other Benefits | ||||||||
Discount rate | 3.82 | % | 4.01 | % | 3.74 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | ||
Expected rate of return on plan assets | 7.00 | % | 7.00 | % | 7.00 | % |
2017 | 2016 | ||||||
Policy liabilities, assumed | $ | 54.3 | $ | 47.2 | |||
Unearned income, assumed | 0.6 | 0.6 | |||||
Premiums payable, ceded | 9.3 | 5.2 | |||||
Premiums receivable, assumed | 32.9 | 25.9 |
2017 | 2016 | 2015 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Reportable segments: | |||||||||||||||||||||||
Commercial & Specialty Business | $ | 35,683.1 | $ | 35,804.3 | $ | 33,355.6 | $ | 33,831.5 | $ | 33,016.9 | $ | 33,078.0 | |||||||||||
Government Business | 48,522.1 | 47,843.4 | 44,982.4 | 45,028.6 | 40,034.6 | 40,307.1 | |||||||||||||||||
Net premiums | $ | 84,205.2 | $ | 83,647.7 | $ | 78,338.0 | $ | 78,860.1 | $ | 73,051.5 | $ | 73,385.1 |
2017 | 2016 | ||||||
Investments: | |||||||
Gross unrealized gains | $ | 939.7 | $ | 748.6 | |||
Gross unrealized losses | (104.9 | ) | (180.9 | ) | |||
Net pretax unrealized gains | 834.8 | 567.7 | |||||
Deferred tax liability | (301.1 | ) | (206.5 | ) | |||
Net unrealized gains on investments | 533.7 | 361.2 | |||||
Non-credit components of OTTI on investments: | |||||||
Gross unrealized losses | (0.3 | ) | (7.2 | ) | |||
Deferred tax asset | 0.1 | 2.6 | |||||
Net unrealized non-credit component of OTTI on investments | (0.2 | ) | (4.6 | ) | |||
Cash flow hedges: | |||||||
Gross unrealized losses | (358.6 | ) | (259.1 | ) | |||
Deferred tax asset | 125.6 | 90.7 | |||||
Net unrealized losses on cash flow hedges | (233.0 | ) | (168.4 | ) | |||
Defined benefit pension plans: | |||||||
Deferred net actuarial loss | (624.7 | ) | (655.8 | ) | |||
Deferred prior service cost | (1.0 | ) | (0.5 | ) | |||
Deferred tax asset | 244.1 | 257.2 | |||||
Net unrecognized periodic benefit costs for defined benefit pension plans | (381.6 | ) | (399.1 | ) | |||
Postretirement benefit plans: | |||||||
Deferred net actuarial loss | (77.5 | ) | (146.6 | ) | |||
Deferred prior service credits | 46.1 | 59.7 | |||||
Deferred tax asset | 12.3 | 34.0 | |||||
Net unrecognized periodic benefit costs for postretirement benefit plans | (19.1 | ) | (52.9 | ) | |||
Foreign currency translation adjustments: | |||||||
Gross unrealized losses | (2.1 | ) | (6.3 | ) | |||
Deferred tax asset | 0.8 | 2.2 | |||||
Net unrealized losses on foreign currency translation adjustments | (1.3 | ) | (4.1 | ) | |||
Accumulated other comprehensive loss | $ | (101.5 | ) | $ | (267.9 | ) |
2017 | 2016 | 2015 | |||||||||
Investments: | |||||||||||
Net holding gain (loss) on investment securities arising during the period, net of tax (expense) benefit of ($152.6), ($118.9), and $180.4, respectively | $ | 280.1 | $ | 186.0 | $ | (336.1 | ) | ||||
Reclassification adjustment for net realized gain on investment securities, net of tax expense of $58.0, $36.6, and $25.9, respectively | (107.6 | ) | (68.1 | ) | (48.2 | ) | |||||
Total reclassification adjustment on investments | 172.5 | 117.9 | (384.3 | ) | |||||||
Non-credit component of OTTI on investments: | |||||||||||
Non-credit component of OTTI on investments, net of tax (expense) benefit of ($2.8), ($2.8), and $3.0, respectively | 4.4 | 5.4 | (5.6 | ) | |||||||
Cash flow hedges: | |||||||||||
Holding loss, net of tax benefit of $34.9, $47.0, and $24.4, respectively | (64.6 | ) | (87.3 | ) | (45.2 | ) | |||||
Other: | |||||||||||
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax (expense) benefit of ($34.8), $5.7, and $13.4, respectively | 51.3 | (13.4 | ) | (26.0 | ) | ||||||
Foreign currency translation adjustment, net of tax (expense) benefit of ($1.4), ($1.1), and $1.8, respectively | 2.8 | 2.1 | (3.4 | ) | |||||||
Net gain (loss) recognized in other comprehensive loss, net of tax (expense) benefit of ($98.7), ($33.5), and $248.9, respectively | $ | 166.4 | $ | 24.7 | $ | (464.5 | ) |
(In millions, except share data) | December 31, 2017 | December 31, 2016 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 956.0 | $ | 882.7 | |||
Investments available-for-sale, at fair value: | |||||||
Fixed maturity securities (amortized cost of $341.7 and $463.4) | 345.5 | 477.6 | |||||
Equity securities (cost of $1,400.9 and $35.7) | 1,458.3 | 85.5 | |||||
Other invested assets, current | 5.5 | 4.6 | |||||
Other receivables | 60.6 | 47.8 | |||||
Income taxes receivable | 75.4 | 69.0 | |||||
Net due from subsidiaries | 2,428.5 | 1,394.6 | |||||
Securities lending collateral | 14.5 | 39.7 | |||||
Other current assets | 227.8 | 277.0 | |||||
Total current assets | 5,572.1 | 3,278.5 | |||||
Long-term investments available-for-sale, at fair value: | |||||||
Fixed maturity securities (amortized cost of $0.4 and $0.0) | 0.4 | — | |||||
Equity securities (cost of $6.3 and $6.4) | 6.3 | 6.4 | |||||
Other invested assets, long-term | 644.2 | 632.4 | |||||
Property and equipment, net | 117.6 | 142.8 | |||||
Deferred tax assets, net | 161.8 | 107.5 | |||||
Investments in subsidiaries | 40,211.2 | 37,378.8 | |||||
Other noncurrent assets | 88.5 | 87.6 | |||||
Total assets | $ | 46,802.1 | $ | 41,634.0 | |||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 1,232.5 | $ | 690.2 | |||
Security trades pending payable | 11.1 | 18.2 | |||||
Securities lending payable | 14.5 | 39.7 | |||||
Current portion of long-term debt | 1,274.6 | 928.4 | |||||
Other current liabilities | 219.0 | 301.4 | |||||
Total current liabilities | 2,751.7 | 1,977.9 | |||||
Long-term debt, less current portion | 17,356.7 | 14,333.6 | |||||
Other noncurrent liabilities | 190.8 | 222.1 | |||||
Total liabilities | 20,299.2 | 16,533.6 | |||||
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 - 256,084,913 and 263,747,395 | 2.6 | 2.6 | |||||
Additional paid-in capital | 8,547.4 | 8,805.1 | |||||
Retained earnings | 18,054.4 | 16,560.6 | |||||
Accumulated other comprehensive loss | (101.5 | ) | (267.9 | ) | |||
Total shareholders’ equity | 26,502.9 | 25,100.4 | |||||
Total liabilities and shareholders’ equity | $ | 46,802.1 | $ | 41,634.0 |
Years ended December 31 | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Revenues | |||||||||||
Net investment income | $ | 64.3 | $ | 74.7 | $ | 99.7 | |||||
Net realized losses on financial instruments | (18.2 | ) | (195.0 | ) | (3.8 | ) | |||||
Other-than-temporary impairment losses on investments: | |||||||||||
Total other-than-temporary impairment losses on investments | (7.6 | ) | (65.0 | ) | (49.2 | ) | |||||
Portion of other-than-temporary impairment losses recognized in other comprehensive income | 0.1 | 17.2 | 10.0 | ||||||||
Other-than-temporary impairment losses recognized in income | (7.5 | ) | (47.8 | ) | (39.2 | ) | |||||
Other revenue | — | — | 3.5 | ||||||||
Total revenues (losses) | 38.6 | (168.1 | ) | 60.2 | |||||||
Expenses | |||||||||||
General and administrative expense | 437.2 | 270.0 | 77.9 | ||||||||
Interest expense | 726.5 | 719.3 | 649.7 | ||||||||
Loss (gain) on extinguishment of debt | 282.4 | — | (9.3 | ) | |||||||
Total expenses | 1,446.1 | 989.3 | 718.3 | ||||||||
Loss before income tax credits and equity in net income of subsidiaries | (1,407.5 | ) | (1,157.4 | ) | (658.1 | ) | |||||
Income tax credits | (215.5 | ) | (438.5 | ) | (270.1 | ) | |||||
Equity in net income of subsidiaries | 5,034.8 | 3,188.7 | 2,948.0 | ||||||||
Net income | $ | 3,842.8 | $ | 2,469.8 | $ | 2,560.0 |
Years ended December 31 | |||||||||||
(in millions) | 2017 | 2016 | 2015 | ||||||||
Net income | $ | 3,842.8 | $ | 2,469.8 | $ | 2,560.0 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Change in net unrealized gains/losses on investments | 172.5 | 117.9 | (384.3 | ) | |||||||
Change in non-credit component of other-than-temporary impairment losses on investments | 4.4 | 5.4 | (5.6 | ) | |||||||
Change in net unrealized gains/losses on cash flow hedges | (64.6 | ) | (87.3 | ) | (45.2 | ) | |||||
Change in net periodic pension and postretirement costs | 51.3 | (13.4 | ) | (26.0 | ) | ||||||
Foreign currency translation adjustments | 2.8 | 2.1 | (3.4 | ) | |||||||
Other comprehensive income (loss) | 166.4 | 24.7 | (464.5 | ) | |||||||
Total comprehensive income | $ | 4,009.2 | $ | 2,494.5 | $ | 2,095.5 |
Years ended December 31 | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Operating activities | |||||||||||
Net income | $ | 3,842.8 | $ | 2,469.8 | $ | 2,560.0 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed earnings of subsidiaries | (2,436.7 | ) | (502.4 | ) | (287.8 | ) | |||||
Net realized losses on financial instruments | 18.2 | 195.0 | 3.8 | ||||||||
Other-than-temporary impairment losses recognized in income | 7.5 | 47.8 | 39.2 | ||||||||
Loss (gain) on extinguishment of debt | 282.4 | — | (9.3 | ) | |||||||
Loss on disposal of assets | — | 2.3 | 0.2 | ||||||||
Deferred income taxes | (32.5 | ) | (7.0 | ) | 55.0 | ||||||
Amortization, net of accretion | 25.4 | 33.5 | 40.8 | ||||||||
Depreciation expense | 69.2 | 70.4 | 68.1 | ||||||||
Share-based compensation | 169.6 | 164.6 | 148.2 | ||||||||
Excess tax benefits from share-based compensation | — | (53.5 | ) | (95.8 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables, net | (17.1 | ) | 17.5 | (17.9 | ) | ||||||
Other invested assets, current | (0.9 | ) | 1.3 | (0.2 | ) | ||||||
Other assets | (102.0 | ) | 213.2 | (106.9 | ) | ||||||
Amounts due from/to subsidiaries | (1,033.9 | ) | (1,487.8 | ) | 420.5 | ||||||
Accounts payable and accrued expenses | 490.5 | 43.9 | 103.4 | ||||||||
Other liabilities | (61.0 | ) | (30.7 | ) | (231.4 | ) | |||||
Income taxes | (6.4 | ) | 198.4 | 47.2 | |||||||
Other, net | (2.3 | ) | 5.1 | (10.2 | ) | ||||||
Net cash provided by operating activities | 1,212.8 | 1,381.4 | 2,726.9 | ||||||||
Investing activities | |||||||||||
Purchases of investments | (3,814.3 | ) | (2,874.9 | ) | (2,130.7 | ) | |||||
Proceeds from sales, maturities, calls and redemptions of investments | 2,594.7 | 3,309.8 | 3,076.6 | ||||||||
Changes in collateral and settlement of non-hedging derivatives | 64.9 | (34.5 | ) | (36.5 | ) | ||||||
Capitalization of subsidiaries | (124.2 | ) | (295.0 | ) | (939.7 | ) | |||||
Changes in securities lending collateral | 25.0 | 91.8 | 94.0 | ||||||||
Purchases of property and equipment, net of sales | (44.0 | ) | (98.7 | ) | (51.1 | ) | |||||
Other, net | 18.7 | (7.9 | ) | 1.5 | |||||||
Net cash (used in) provided by investing activities | (1,279.2 | ) | 90.6 | 14.1 | |||||||
Financing activities | |||||||||||
Net proceeds from (repayments of) commercial paper borrowings | 174.6 | (53.2 | ) | 682.2 | |||||||
Proceeds from long-term borrowings | 5,457.8 | — | 1,226.5 | ||||||||
Repayments of long-term borrowings | (2,815.1 | ) | — | (2,697.2 | ) | ||||||
Changes in securities lending payable | (25.2 | ) | (90.9 | ) | (94.2 | ) | |||||
Changes in bank overdrafts | 51.8 | 30.8 | (89.3 | ) | |||||||
Premiums paid on equity call options | — | — | (16.7 | ) | |||||||
Proceeds from sale of put options | 0.9 | — | 16.6 | ||||||||
Repurchase and retirement of common stock | (1,997.7 | ) | — | (1,515.8 | ) | ||||||
Change in collateral and settlements of debt-related derivatives | (149.0 | ) | (360.4 | ) | — | ||||||
Cash dividends | (737.2 | ) | (715.1 | ) | (686.5 | ) | |||||
Proceeds from issuance of common stock under employee stock plans | 225.3 | 119.4 | 186.0 | ||||||||
Taxes paid through withholding of common stock under employee stock plans | (46.5 | ) | (65.7 | ) | (95.9 | ) | |||||
Excess tax benefits from share-based compensation | — | 53.5 | 95.8 | ||||||||
Net cash provided by (used in) financing activities | 139.7 | (1,081.6 | ) | (2,988.5 | ) | ||||||
Change in cash and cash equivalents | 73.3 | 390.4 | (247.5 | ) | |||||||
Cash and cash equivalents at beginning of year | 882.7 | 492.3 | 739.8 | ||||||||
Cash and cash equivalents at end of year | $ | 956.0 | $ | 882.7 | $ | 492.3 |
Outstanding principal amount | $ | 396.1 | |
Unamortized debt discount | $ | 131.4 | |
Net debt carrying amount | $ | 260.5 | |
Equity component carrying amount | $ | 143.6 | |
Conversion rate (shares of common stock per $1,000 of principal amount) | 13.7467 | ||
Effective conversion price (per $1,000 of principal amount) | $ | 72.7441 |
2017 | 2016 | ||||||
Senior unsecured notes: | |||||||
2.375%, due 2017 | $ | — | $ | 400.1 | |||
5.875%, due 2017 | — | 528.3 | |||||
1.875%, due 2018 | 625.5 | 624.3 | |||||
2.300%, due 2018 | 649.1 | 647.5 | |||||
2.250%, due 2019 | 847.2 | 845.6 | |||||
7.000%, due 2019 | — | 439.4 | |||||
2.500%, due 2020 | 894.9 | — | |||||
4.350%, due 2020 | 692.9 | 700.0 | |||||
3.700%, due 2021 | 697.6 | 696.9 | |||||
2.950%, due 2022 | 745.9 | — | |||||
3.125%, due 2022 | 844.9 | 843.8 | |||||
3.300%, due 2023 | 994.4 | 993.3 | |||||
3.350%, due 2024 | 845.0 | — | |||||
3.500%, due 2024 | 792.9 | 791.9 | |||||
3.650%, due 2027 | 1,589.2 | — | |||||
5.950%, due 2034 | 334.0 | 444.7 | |||||
5.850%, due 2036 | 395.6 | 768.3 | |||||
6.375%, due 2037 | 366.3 | 639.9 | |||||
5.800%, due 2040 | 123.5 | 193.9 | |||||
4.625%, due 2042 | 886.7 | 886.3 | |||||
4.650%, due 2043 | 986.3 | 985.9 | |||||
4.650%, due 2044 | 791.1 | 790.8 | |||||
5.100%, due 2044 | 593.8 | 593.6 | |||||
4.375%, due 2047 | 1,385.5 | — | |||||
4.850%, due 2054 | 246.8 | 246.8 | |||||
Remarketable subordinated notes: | |||||||
1.900%, due 2028 | 1,238.7 | 1,237.6 | |||||
Surplus note: | |||||||
9.000%, due 2027 | 24.9 | 24.9 | |||||
Senior convertible debentures: | |||||||
2.750%, due 2042 | 260.5 | 334.1 | |||||
Variable rate debt: | |||||||
Commercial paper program | 803.6 | 629.0 | |||||
Total long-term debt | 18,656.8 | 15,286.9 | |||||
Current portion of long-term debt | (1,274.6 | ) | (928.4 | ) | |||
Long-term debt, less current portion | $ | 17,382.2 | $ | 14,358.5 |
Outstanding principal amount | $ | 396.1 | |
Unamortized debt discount | $ | 131.4 | |
Net debt carrying amount | $ | 260.5 | |
Equity component carrying amount | $ | 143.6 | |
Conversion rate (shares of common stock per $1,000 of principal amount) | 13.7467 | ||
Effective conversion price (per $1,000 of principal amount) | $ | 72.7441 |
Contractual/ Notional Amount | Balance Sheet Location | Estimated Fair Value | |||||||||||
Asset | (Liability) | ||||||||||||
December 31, 2017 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 1,235.0 | Other assets/other liabilities | $ | 2.0 | $ | (5.3 | ) | |||||
Interest rate swaps - forward starting pay fixed | 425.0 | Other assets/other liabilities | — | (8.9 | ) | ||||||||
Subtotal hedging | 1,660.0 | Subtotal hedging | 2.0 | (14.2 | ) | ||||||||
Non-hedging instruments | |||||||||||||
Interest rate swaps | 171.3 | Equity securities | 1.0 | (4.7 | ) | ||||||||
Options | 100.0 | Other assets/other liabilities | — | (0.1 | ) | ||||||||
Futures | 116.8 | Equity securities | 0.1 | (2.5 | ) | ||||||||
Subtotal non-hedging | 388.1 | Subtotal non-hedging | 1.1 | (7.3 | ) | ||||||||
Total derivatives | $ | 2,048.1 | Total derivatives | 3.1 | (21.5 | ) | |||||||
Amounts netted | (1.6 | ) | 1.6 | ||||||||||
Net derivatives | $ | 1.5 | $ | (19.9 | ) | ||||||||
December 31, 2016 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 1,385.0 | Other assets/other liabilities | $ | 4.0 | $ | (0.7 | ) | |||||
Interest rate swaps - forward starting pay fixed | 4,775.0 | Other assets/other liabilities | 528.8 | $ | (6.0 | ) | |||||||
Subtotal hedging | 6,160.0 | Subtotal hedging | 532.8 | (6.7 | ) | ||||||||
Non-hedging instruments | |||||||||||||
Interest rate swaps | 209.4 | Equity securities | 4.7 | (0.2 | ) | ||||||||
Options | 10,280.2 | Other assets/other liabilities | 220.7 | (233.9 | ) | ||||||||
Futures | 185.3 | Equity securities | 0.5 | (1.1 | ) | ||||||||
Subtotal non-hedging | 10,674.9 | Subtotal non-hedging | 225.9 | (235.2 | ) | ||||||||
Total derivatives | $ | 16,834.9 | Total derivatives | 758.7 | (241.9 | ) | |||||||
Amounts netted | (92.8 | ) | 92.8 | ||||||||||
Net derivatives | $ | 665.9 | $ | (149.1 | ) |
Type of Fair Value Hedges | Year Entered Into | Outstanding Notional Amount | Interest Rate Received | Expiration Date | |||||||||||
2017 | 2016 | ||||||||||||||
Interest rate swap | 2017 | $ | 50.0 | $ | — | 4.350 | % | August 15, 2020 | |||||||
Interest rate swap | 2015 | 200.0 | 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 | 2.375 | February 15, 2017 | ||||||||||
Total notional amount outstanding | $ | 1,235.0 | $ | 1,385.0 |
Balance Sheet Classification in Which Hedged Item is Included | Carrying Amount of Hedged Liability | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Current portion of long term-debt | $ | 1,274.6 | $ | 928.4 | $ | 2.0 | $ | 0.3 | ||||||||
Long-term debt | 17,382.2 | 14,358.5 | (5.3 | ) | 3.0 |
Hedge Loss Recognized in Other Comprehensive Income | Income Statement Location of Loss Reclassification from Accumulated Other Comprehensive Loss | Hedge Loss Reclassified from Accumulated Other Comprehensive Loss | ||||||||
Type of Cash Flow Hedge | ||||||||||
Year ended December 31, 2017 | ||||||||||
Forward starting pay fixed swaps | $ | (112.0 | ) | Interest expense | $ | (6.6 | ) | |||
Forward starting pay fixed swaps | Net realized gains on financial instruments | $ | (7.2 | ) |
Effective Portion | ||||||||||||||||
Hedge Loss Recognized in Other Comprehensive Income (Loss) | Income Statement Location of Loss Reclassification from Accumulated Other Comprehensive Loss | Hedge Loss Reclassified from Accumulated Other Comprehensive Loss | Ineffective Portion | |||||||||||||
Type of Cash Flow Hedge | Income Statement Location of Loss Recognized | Hedge Loss Recognized | ||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (140.1 | ) | Interest expense | $ | (5.8 | ) | Net realized gains on financial instruments | $ | (7.7 | ) | |||||
Year ended December 31, 2015 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (75.2 | ) | Interest expense | $ | (5.5 | ) | None | $ | — |
Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships | |||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||
Net Realized Gains on Financial Instruments | Interest Expense | Net Realized Gains on Financial Instruments | Interest Expense | Interest Expense | |||||||||||||||
Total amount of income or expense in the income statement in which the effects of fair value or cash flow hedges are recorded | $ | 144.8 | $ | (739.0 | ) | $ | 4.9 | $ | (723.0 | ) | $ | (653.0 | ) | ||||||
Gain (loss) on fair value hedging relationships | |||||||||||||||||||
Interest rate swaps | |||||||||||||||||||
Hedged items | — | 0.4 | — | (8.1 | ) | (12.1 | ) | ||||||||||||
Derivatives designated as hedging instruments | — | (0.4 | ) | — | 8.1 | 12.1 | |||||||||||||
Loss on cash flow hedging relationships | |||||||||||||||||||
Forward starting pay fixed swaps | |||||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive loss into net income | — | (6.6 | ) | — | (5.8 | ) | (5.5 | ) | |||||||||||
Amount of loss reclassified from accumulated other comprehensive loss into net income due to ineffectiveness and missed forecasted transactions | (7.2 | ) | — | (7.7 | ) | — | — |
Type of Non-hedging Derivatives | Income Statement Location of (Loss) Gain Recognized | Derivative (Loss) Gain Recognized | ||||
Year ended December 31, 2017 | ||||||
Interest rate swaps | Net realized gains on financial instruments | $ | (9.2 | ) | ||
Options | Net realized gains on financial instruments | (35.6 | ) | |||
Futures | Net realized gains on financial instruments | (3.5 | ) | |||
Total | $ | (48.3 | ) | |||
Year ended December 31, 2016 | ||||||
Interest rate swaps | Net realized gains on financial instruments | $ | 0.2 | |||
Options | Net realized gains on financial instruments | (209.1 | ) | |||
Futures | Net realized gains on financial instruments | 1.4 | ||||
Total | $ | (207.5 | ) | |||
Year ended December 31, 2015 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on financial instruments | $ | (22.2 | ) | ||
Interest rate swaps | Net realized gains on financial instruments | (1.9 | ) | |||
Options | Net realized gains on financial instruments | 34.6 | ||||
Futures | Net realized gains on financial instruments | (0.1 | ) | |||
Total | $ | 10.4 |
Declaration Date | Record Date | Payment Date | Cash Dividend per Share | Total | ||||||||
Year ended December 31, 2017 | ||||||||||||
February 22, 2017 | March 10, 2017 | March 24, 2017 | $ | 0.65 | $ | 172.2 | ||||||
April 27, 2017 | June 9, 2017 | June 23, 2017 | 0.65 | 171.8 | ||||||||
July 25, 2017 | September 8, 2017 | September 25, 2017 | 0.70 | 181.4 | ||||||||
October 24, 2017 | December 5, 2017 | December 21, 2017 | 0.70 | 179.5 | ||||||||
Year ended December 31, 2016 | ||||||||||||
February 18, 2016 | March 10, 2016 | March 25, 2016 | $ | 0.65 | $ | 170.7 | ||||||
April 26, 2016 | June 10, 2016 | June 24, 2016 | 0.65 | 170.9 | ||||||||
July 26, 2016 | September 9, 2016 | September 26, 2016 | 0.65 | 171.1 | ||||||||
November 1, 2016 | December 5, 2016 | December 21, 2016 | 0.65 | 171.3 |
2017 | 2016 | 2015 | ||||||
Denominator for basic earnings per share—weighted-average shares | 261.5 | 262.9 | 263.0 | |||||
Effect of dilutive securities—employee stock options, non-vested restricted stock awards and convertible debentures | 6.3 | 5.2 | 9.9 | |||||
Denominator for diluted earnings per share | 267.8 | 268.1 | 272.9 |
2017 | 2016 | 2015 | |||||||||
Direct | $ | 72,135.0 | $ | 67,221.7 | $ | 61,674.0 | |||||
Assumed | 216.7 | 184.9 | 192.2 | ||||||||
Ceded | (115.5 | ) | (572.2 | ) | (749.3 | ) | |||||
Net benefit expense | $ | 72,236.2 | $ | 66,834.4 | $ | 61,116.9 |
Corporate Securities | Residential Mortgage- backed Securities | Commercial Mortgage- backed Securities | Other Securities | Equity Securities | Total | ||||||||||||||||||
Year ended December 31, 2017 | |||||||||||||||||||||||
Beginning balance at January 1, 2017 | $ | 238.8 | $ | 12.0 | $ | — | $ | 42.8 | $ | 187.8 | $ | 481.4 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (0.7 | ) | — | — | (0.1 | ) | (0.2 | ) | (1.0 | ) | |||||||||||||
Recognized in accumulated other comprehensive loss | 3.3 | — | — | 0.2 | 10.7 | 14.2 | |||||||||||||||||
Purchases | 88.3 | 3.6 | — | 35.6 | 89.6 | 217.1 | |||||||||||||||||
Sales | (48.1 | ) | (5.4 | ) | — | (1.2 | ) | (0.5 | ) | (55.2 | ) | ||||||||||||
Settlements | (64.1 | ) | (2.3 | ) | — | (6.7 | ) | — | (73.1 | ) | |||||||||||||
Transfers into Level III | 14.2 | 3.2 | — | 15.3 | — | 32.7 | |||||||||||||||||
Transfers out of Level III | (2.5 | ) | (6.1 | ) | — | (70.0 | ) | — | (78.6 | ) | |||||||||||||
Ending balance at December 31, 2017 | $ | 229.2 | $ | 5.0 | $ | — | $ | 15.9 | $ | 287.4 | $ | 537.5 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2017 | $ | (3.3 | ) | $ | — | $ | — | $ | — | $ | — | $ | (3.3 | ) | |||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||
Beginning balance at January 1, 2016 | $ | 186.2 | $ | — | $ | 1.9 | $ | 25.6 | $ | 102.1 | $ | 315.8 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (2.9 | ) | — | — | — | 0.7 | (2.2 | ) | |||||||||||||||
Recognized in accumulated other comprehensive loss | (2.0 | ) | — | — | (0.5 | ) | (0.5 | ) | (3.0 | ) | |||||||||||||
Purchases | 170.2 | 4.3 | — | — | 222.6 | 397.1 | |||||||||||||||||
Sales | (5.4 | ) | — | — | — | (136.7 | ) | (142.1 | ) | ||||||||||||||
Settlements | (56.8 | ) | — | — | (0.9 | ) | (0.4 | ) | (58.1 | ) | |||||||||||||
Transfers into Level III | 6.6 | 9.3 | — | 28.8 | — | 44.7 | |||||||||||||||||
Transfers out of Level III | (57.1 | ) | (1.6 | ) | (1.9 | ) | (10.2 | ) | — | (70.8 | ) | ||||||||||||
Ending balance at December 31, 2016 | $ | 238.8 | $ | 12.0 | $ | — | $ | 42.8 | $ | 187.8 | $ | 481.4 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2016 | $ | (2.0 | ) | $ | — | $ | — | $ | — | $ | — | $ | (2.0 | ) | |||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Beginning balance at January 1, 2015 | $ | 144.6 | $ | — | $ | 3.3 | $ | 6.6 | $ | 48.3 | $ | 202.8 | |||||||||||
Total gains (losses): | |||||||||||||||||||||||
Recognized in net income | 1.4 | — | — | 0.2 | (1.5 | ) | 0.1 | ||||||||||||||||
Recognized in accumulated other comprehensive loss | 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 | ) |
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, 2017 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 1,956.4 | $ | — | $ | — | $ | 1,956.4 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | — | 645.5 | — | 645.5 | |||||||||||
Government sponsored securities | — | 90.1 | — | 90.1 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,034.9 | — | 6,034.9 | |||||||||||
Corporate securities | 24.8 | 7,231.8 | 229.2 | 7,485.8 | |||||||||||
Residential mortgage-backed securities | — | 2,533.9 | 5.0 | 2,538.9 | |||||||||||
Commercial mortgage-backed securities | — | 78.7 | — | 78.7 | |||||||||||
Other securities | 75.2 | 973.1 | 15.9 | 1,064.2 | |||||||||||
Total fixed maturity securities | 100.0 | 17,588.0 | 250.1 | 17,938.1 | |||||||||||
Equity securities | 2,446.9 | 897.7 | 287.4 | 3,632.0 | |||||||||||
Other invested assets, current | 17.2 | — | — | 17.2 | |||||||||||
Securities lending collateral | 214.1 | 241.0 | — | 455.1 | |||||||||||
Derivatives | — | 3.1 | — | 3.1 | |||||||||||
Total assets | $ | 4,734.6 | $ | 18,729.8 | $ | 537.5 | $ | 24,001.9 | |||||||
Liabilities: | |||||||||||||||
Derivatives | $ | — | $ | (21.5 | ) | $ | — | $ | (21.5 | ) | |||||
Total liabilities | $ | — | $ | (21.5 | ) | $ | — | $ | (21.5 | ) | |||||
December 31, 2016 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 1,546.0 | $ | — | $ | — | $ | 1,546.0 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 558.5 | — | — | 558.5 | |||||||||||
Government sponsored securities | — | 40.0 | — | 40.0 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,105.3 | — | 6,105.3 | |||||||||||
Corporate securities | 79.9 | 7,775.9 | 238.8 | 8,094.6 | |||||||||||
Residential mortgage-backed securities | — | 1,917.3 | 12.0 | 1,929.3 | |||||||||||
Commercial mortgage-backed securities | — | 214.3 | — | 214.3 | |||||||||||
Other securities | 53.4 | 649.3 | 42.8 | 745.5 | |||||||||||
Total fixed maturity securities | 691.8 | 16,702.1 | 293.6 | 17,687.5 | |||||||||||
Equity securities | 1,200.2 | 111.9 | 187.8 | 1,499.9 | |||||||||||
Other invested assets, current | 15.8 | — | — | 15.8 | |||||||||||
Securities lending collateral | 726.0 | 353.8 | — | 1,079.8 | |||||||||||
Derivatives | — | 758.7 | — | 758.7 | |||||||||||
Total assets | $ | 4,179.8 | $ | 17,926.5 | $ | 481.4 | $ | 22,587.7 | |||||||
Liabilities: | |||||||||||||||
Derivatives | $ | — | $ | (241.9 | ) | $ | — | $ | (241.9 | ) | |||||
Total liabilities | $ | — | $ | (241.9 | ) | $ | — | $ | (241.9 | ) |
Corporate Securities | Residential Mortgage- backed Securities | Commercial Mortgage- backed Securities | Other Securities | Equity Securities | Total | ||||||||||||||||||
Year ended December 31, 2017 | |||||||||||||||||||||||
Beginning balance at January 1, 2017 | $ | 238.8 | $ | 12.0 | $ | — | $ | 42.8 | $ | 187.8 | $ | 481.4 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (0.7 | ) | — | — | (0.1 | ) | (0.2 | ) | (1.0 | ) | |||||||||||||
Recognized in accumulated other comprehensive loss | 3.3 | — | — | 0.2 | 10.7 | 14.2 | |||||||||||||||||
Purchases | 88.3 | 3.6 | — | 35.6 | 89.6 | 217.1 | |||||||||||||||||
Sales | (48.1 | ) | (5.4 | ) | — | (1.2 | ) | (0.5 | ) | (55.2 | ) | ||||||||||||
Settlements | (64.1 | ) | (2.3 | ) | — | (6.7 | ) | — | (73.1 | ) | |||||||||||||
Transfers into Level III | 14.2 | 3.2 | — | 15.3 | — | 32.7 | |||||||||||||||||
Transfers out of Level III | (2.5 | ) | (6.1 | ) | — | (70.0 | ) | — | (78.6 | ) | |||||||||||||
Ending balance at December 31, 2017 | $ | 229.2 | $ | 5.0 | $ | — | $ | 15.9 | $ | 287.4 | $ | 537.5 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2017 | $ | (3.3 | ) | $ | — | $ | — | $ | — | $ | — | $ | (3.3 | ) | |||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||
Beginning balance at January 1, 2016 | $ | 186.2 | $ | — | $ | 1.9 | $ | 25.6 | $ | 102.1 | $ | 315.8 | |||||||||||
Total (losses) gains: | |||||||||||||||||||||||
Recognized in net income | (2.9 | ) | — | — | — | 0.7 | (2.2 | ) | |||||||||||||||
Recognized in accumulated other comprehensive loss | (2.0 | ) | — | — | (0.5 | ) | (0.5 | ) | (3.0 | ) | |||||||||||||
Purchases | 170.2 | 4.3 | — | — | 222.6 | 397.1 | |||||||||||||||||
Sales | (5.4 | ) | — | — | — | (136.7 | ) | (142.1 | ) | ||||||||||||||
Settlements | (56.8 | ) | — | — | (0.9 | ) | (0.4 | ) | (58.1 | ) | |||||||||||||
Transfers into Level III | 6.6 | 9.3 | — | 28.8 | — | 44.7 | |||||||||||||||||
Transfers out of Level III | (57.1 | ) | (1.6 | ) | (1.9 | ) | (10.2 | ) | — | (70.8 | ) | ||||||||||||
Ending balance at December 31, 2016 | $ | 238.8 | $ | 12.0 | $ | — | $ | 42.8 | $ | 187.8 | $ | 481.4 | |||||||||||
Change in unrealized losses included in net income related to assets still held for the year ended December 31, 2016 | $ | (2.0 | ) | $ | — | $ | — | $ | — | $ | — | $ | (2.0 | ) | |||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Beginning balance at January 1, 2015 | $ | 144.6 | $ | — | $ | 3.3 | $ | 6.6 | $ | 48.3 | $ | 202.8 | |||||||||||
Total gains (losses): | |||||||||||||||||||||||
Recognized in net income | 1.4 | — | — | 0.2 | (1.5 | ) | 0.1 | ||||||||||||||||
Recognized in accumulated other comprehensive loss | 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 | ) |
Carrying Value | Estimated Fair Value | ||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||
December 31, 2017 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 3,343.8 | $ | — | $ | — | $ | 3,343.8 | $ | 3,343.8 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 1,275.0 | — | 1,275.0 | — | 1,275.0 | ||||||||||||||
Commercial paper | 803.6 | — | 803.6 | — | 803.6 | ||||||||||||||
Notes | 17,592.7 | — | 18,815.1 | — | 18,815.1 | ||||||||||||||
Convertible debentures | 260.5 | — | 1,215.7 | — | 1,215.7 | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Other invested assets, long-term | $ | 2,240.5 | $ | — | $ | — | $ | 2,240.5 | $ | 2,240.5 | |||||||||
Liabilities: | |||||||||||||||||||
Debt: | |||||||||||||||||||
Short-term borrowings | 440.0 | — | 440.0 | — | 440.0 | ||||||||||||||
Commercial paper | 629.0 | — | 629.0 | — | 629.0 | ||||||||||||||
Notes | 14,323.8 | — | 14,858.4 | — | 14,858.4 | ||||||||||||||
Convertible debentures | 334.1 | — | 1,020.2 | — | 1,020.2 |
2017 | 2016 | 2015 | |||||||||
Net realized gains (losses): | |||||||||||
Fixed maturity securities: | |||||||||||
Gross realized gains from sales | $ | 136.6 | $ | 209.9 | $ | 135.9 | |||||
Gross realized losses from sales | (54.9 | ) | (152.1 | ) | (182.1 | ) | |||||
Net realized gains (losses) from sales of fixed maturity securities | 81.7 | 57.8 | (46.2 | ) | |||||||
Equity securities: | |||||||||||
Gross realized gains from sales | 140.1 | 205.5 | 233.4 | ||||||||
Gross realized losses from sales | (16.9 | ) | (50.0 | ) | (45.1 | ) | |||||
Net realized gains from sales of equity securities | 123.2 | 155.5 | 188.3 | ||||||||
Other investments: | |||||||||||
Gross realized gains from sales | 0.3 | 7.2 | 5.0 | ||||||||
Gross realized losses from sales | (4.9 | ) | (0.4 | ) | — | ||||||
Net realized (losses) gains from sales of other investments | (4.6 | ) | 6.8 | 5.0 | |||||||
Net realized gains | 200.3 | 220.1 | 147.1 | ||||||||
Other-than-temporary impairment losses recognized in income: | |||||||||||
Fixed maturity securities | (3.7 | ) | (74.7 | ) | (31.2 | ) | |||||
Equity securities | (15.5 | ) | (22.3 | ) | (35.6 | ) | |||||
Other investments | (13.9 | ) | (18.4 | ) | (16.6 | ) | |||||
Other-than-temporary impairment losses recognized in income | (33.1 | ) | (115.4 | ) | (83.4 | ) | |||||
Change in net unrealized gains (losses) on investments: | |||||||||||
Fixed maturity securities | 156.5 | 193.3 | (372.9 | ) | |||||||
Equity securities | 110.6 | 6.9 | (217.7 | ) | |||||||
Other investments | (9.8 | ) | (2.5 | ) | (4.1 | ) | |||||
Total change in net unrealized gains (losses) on investments | 257.3 | 197.7 | (594.7 | ) | |||||||
Deferred income tax (expense) benefit | (84.8 | ) | (79.8 | ) | 210.4 | ||||||
Net change in net unrealized gains (losses) on investments | 172.5 | 117.9 | (384.3 | ) | |||||||
Net realized gains on investments, other-than-temporary impairment losses recognized in income and net change in net unrealized gains (losses) on investments | $ | 339.7 | $ | 222.6 | $ | (320.6 | ) |
Commercial and Specialty Business | Government Business | Other | Total | ||||||||||||
Balance as of January 1, 2016 | $ | 11,818.9 | $ | 5,743.3 | $ | — | $ | 17,562.2 | |||||||
Other adjustments | (1.0 | ) | — | — | (1.0 | ) | |||||||||
Balance as of December 31, 2016 | 11,817.9 | 5,743.3 | — | 17,561.2 | |||||||||||
Acquisitions | — | 1,658.5 | 11.5 | 1,670.0 | |||||||||||
Balance as of December 31, 2017 | $ | 11,817.9 | $ | 7,401.8 | $ | 11.5 | $ | 19,231.2 | |||||||
Accumulated impairment as of December 31, 2017 | $ | (41.0 | ) | $ | — | $ | — | $ | (41.0 | ) |
2017 | 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer relationships | $ | 3,724.9 | $ | (2,877.8 | ) | $ | 847.1 | $ | 3,310.9 | $ | (2,759.7 | ) | $ | 551.2 | |||||||||
Provider and hospital relationships | 187.4 | (73.2 | ) | 114.2 | 150.5 | (65.9 | ) | 84.6 | |||||||||||||||
Other | 184.0 | (67.2 | ) | 116.8 | 89.4 | (50.6 | ) | 38.8 | |||||||||||||||
Total | 4,096.3 | (3,018.2 | ) | 1,078.1 | 3,550.8 | (2,876.2 | ) | 674.6 | |||||||||||||||
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 | 991.6 | — | 991.6 | |||||||||||||||||
Total | 7,290.3 | — | 7,290.3 | 7,290.3 | — | 7,290.3 | |||||||||||||||||
Other intangible assets | $ | 11,386.6 | $ | (3,018.2 | ) | $ | 8,368.4 | $ | 10,841.1 | $ | (2,876.2 | ) | $ | 7,964.9 |
2017 | 2016 | ||||||
Deferred tax assets relating to: | |||||||
Retirement benefits | $ | 210.7 | $ | 362.9 | |||
Accrued expenses | 278.6 | 331.9 | |||||
Insurance reserves | 136.5 | 229.5 | |||||
Net operating loss carryforwards | 3.7 | 9.2 | |||||
Bad debt reserves | 128.4 | 119.6 | |||||
State income tax | 32.7 | 59.8 | |||||
Deferred compensation | 23.7 | 38.2 | |||||
Investment basis difference | 23.9 | 42.4 | |||||
Other | 81.5 | 110.5 | |||||
Total deferred tax assets | 919.7 | 1,304.0 | |||||
Deferred tax liabilities relating to: | |||||||
Unrealized gains on securities | 174.9 | 202.9 | |||||
Intangible assets: | |||||||
Trademarks and state Medicaid licenses | 1,528.5 | 2,547.6 | |||||
Customer, provider and hospital relationships | 186.0 | 194.1 | |||||
Internally developed software and other amortization differences | 324.1 | 450.5 | |||||
Retirement benefits | 170.2 | 267.3 | |||||
Debt discount | 27.6 | 60.8 | |||||
State deferred tax | 104.5 | 106.0 | |||||
Depreciation and amortization | 41.5 | 54.1 | |||||
Other | 88.9 | 200.6 | |||||
Total deferred tax liabilities | 2,646.2 | 4,083.9 | |||||
Net deferred tax liability | $ | (1,726.5 | ) | $ | (2,779.9 | ) |
2017 | 2016 | 2015 | |||||||||
Current tax expense: | |||||||||||
Federal | $ | 1,355.9 | $ | 1,862.6 | $ | 1,996.6 | |||||
State and local | 39.5 | 93.9 | 133.0 | ||||||||
Total current tax expense | 1,395.4 | 1,956.5 | 2,129.6 | ||||||||
Deferred tax (benefit) expense | (1,274.4 | ) | 129.1 | (58.6 | ) | ||||||
Total income tax expense | $ | 121.0 | $ | 2,085.6 | $ | 2,071.0 |
2017 | 2016 | 2015 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Amount at statutory rate | $ | 1,387.3 | 35.0 | % | $ | 1,594.4 | 35.0 | % | $ | 1,620.9 | 35.0 | % | ||||||||
State and local income taxes net of federal tax expense/benefit | (2.2 | ) | (0.1 | ) | 61.5 | 1.4 | 75.3 | 1.6 | ||||||||||||
Tax exempt interest and dividends received deduction | (57.9 | ) | (1.4 | ) | (61.7 | ) | (1.4 | ) | (63.2 | ) | (1.3 | ) | ||||||||
HIP Fee | — | — | 411.7 | 9.0 | 422.6 | 9.1 | ||||||||||||||
Tax Cuts and Jobs Act | (1,108.3 | ) | (27.9 | ) | — | — | — | — | ||||||||||||
Other, net | (97.9 | ) | (2.5 | ) | 79.7 | 1.8 | 15.4 | 0.3 | ||||||||||||
Total income tax expense | $ | 121.0 | 3.1 | % | $ | 2,085.6 | 45.8 | % | $ | 2,071.0 | 44.7 | % |
2017 | 2016 | ||||||
Balance at January 1 | $ | 131.1 | $ | 212.0 | |||
Additions based on: | |||||||
Tax positions related to current year | 2.6 | — | |||||
Tax positions related to prior years | 83.4 | 13.9 | |||||
Reductions based on: | |||||||
Tax positions related to current year | — | (1.1 | ) | ||||
Tax positions related to prior years | (18.5 | ) | (88.4 | ) | |||
Settlements with taxing authorities | (9.0 | ) | (5.3 | ) | |||
Balance at December 31 | $ | 189.6 | $ | 131.1 |
2017 | 2016 | 2015 | |||||||||
Fixed maturity securities | $ | 614.2 | $ | 673.1 | $ | 679.0 | |||||
Equity securities | 116.4 | 61.7 | 61.7 | ||||||||
Cash equivalents | 24.8 | 3.6 | 0.7 | ||||||||
Other | 152.2 | 84.9 | (22.6 | ) | |||||||
Investment income | 907.6 | 823.3 | 718.8 | ||||||||
Investment expense | (41.1 | ) | (43.8 | ) | (41.2 | ) | |||||
Net investment income | $ | 866.5 | $ | 779.5 | $ | 677.6 |
Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 496.2 | $ | 496.5 | |||
Due after one year through five years | 4,945.2 | 5,000.1 | |||||
Due after five years through ten years | 5,556.4 | 5,668.0 | |||||
Due after ten years | 4,012.6 | 4,155.9 | |||||
Mortgage-backed securities | 2,600.1 | 2,617.6 | |||||
Total available-for-sale fixed maturity securities | $ | 17,610.5 | $ | 17,938.1 |
Non-Credit Component of OTTIs Recognized in Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 649.0 | $ | 2.2 | $ | (5.0 | ) | $ | (0.7 | ) | $ | 645.5 | $ | — | |||||||||
Government sponsored securities | 90.3 | 0.3 | (0.1 | ) | (0.4 | ) | 90.1 | — | |||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,854.6 | 192.6 | (5.0 | ) | (7.3 | ) | 6,034.9 | — | |||||||||||||||
Corporate securities | 7,362.8 | 165.8 | (30.2 | ) | (12.6 | ) | 7,485.8 | (0.3 | ) | ||||||||||||||
Residential mortgage-backed securities | 2,520.0 | 38.5 | (8.0 | ) | (11.6 | ) | 2,538.9 | — | |||||||||||||||
Commercial mortgage-backed securities | 80.1 | 0.7 | (0.1 | ) | (2.0 | ) | 78.7 | — | |||||||||||||||
Other securities | 1,053.7 | 14.4 | (2.4 | ) | (1.5 | ) | 1,064.2 | — | |||||||||||||||
Total fixed maturity securities | 17,610.5 | 414.5 | (50.8 | ) | (36.1 | ) | 17,938.1 | $ | (0.3 | ) | |||||||||||||
Equity securities | 3,124.8 | 525.2 | (18.0 | ) | — | 3,632.0 | |||||||||||||||||
Total investments, available-for-sale | $ | 20,735.3 | $ | 939.7 | $ | (68.8 | ) | $ | (36.1 | ) | $ | 21,570.1 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 561.7 | $ | 2.5 | $ | (5.7 | ) | $ | — | $ | 558.5 | $ | — | ||||||||||
Government sponsored securities | 40.1 | 0.3 | (0.3 | ) | (0.1 | ) | 40.0 | — | |||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 6,024.6 | 139.1 | (55.2 | ) | (3.2 | ) | 6,105.3 | (3.8 | ) | ||||||||||||||
Corporate securities | 8,011.7 | 159.5 | (49.5 | ) | (27.1 | ) | 8,094.6 | (3.4 | ) | ||||||||||||||
Residential mortgage-backed securities | 1,916.9 | 32.3 | (15.3 | ) | (4.6 | ) | 1,929.3 | — | |||||||||||||||
Commercial mortgage-backed securities | 216.8 | 1.2 | (0.3 | ) | (3.4 | ) | 214.3 | — | |||||||||||||||
Other securities | 744.6 | 6.4 | (1.5 | ) | (4.0 | ) | 745.5 | — | |||||||||||||||
Total fixed maturity securities | 17,516.4 | 341.3 | (127.8 | ) | (42.4 | ) | 17,687.5 | $ | (7.2 | ) | |||||||||||||
Equity securities | 1,103.3 | 407.3 | (10.7 | ) | — | 1,499.9 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,619.7 | $ | 748.6 | $ | (138.5 | ) | $ | (42.4 | ) | $ | 19,187.4 |
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, 2017 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 36 | $ | 450.4 | $ | (5.0 | ) | 11 | $ | 56.1 | $ | (0.7 | ) | |||||||||
Government sponsored securities | 12 | 16.3 | (0.1 | ) | 16 | 14.8 | (0.4 | ) | |||||||||||||
States, municipalities and political subdivisions, tax-exempt | 414 | 641.4 | (5.0 | ) | 189 | 355.5 | (7.3 | ) | |||||||||||||
Corporate securities | 1,081 | 2,200.1 | (30.2 | ) | 279 | 329.7 | (12.6 | ) | |||||||||||||
Residential mortgage-backed securities | 445 | 1,050.3 | (8.0 | ) | 287 | 478.0 | (11.6 | ) | |||||||||||||
Commercial mortgage-backed securities | 7 | 13.7 | (0.1 | ) | 12 | 27.2 | (2.0 | ) | |||||||||||||
Other securities | 132 | 406.1 | (2.4 | ) | 20 | 35.8 | (1.5 | ) | |||||||||||||
Total fixed maturity securities | 2,127 | 4,778.3 | (50.8 | ) | 814 | 1,297.1 | (36.1 | ) | |||||||||||||
Equity securities | 386 | 1,070.5 | (18.0 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 2,513 | $ | 5,848.8 | $ | (68.8 | ) | 814 | $ | 1,297.1 | $ | (36.1 | ) | |||||||||
December 31, 2016 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 51 | $ | 359.9 | $ | (5.7 | ) | — | $ | — | $ | — | ||||||||||
Government sponsored securities | 18 | 26.4 | (0.3 | ) | 1 | 1.0 | (0.1 | ) | |||||||||||||
States, municipalities and political subdivisions, tax-exempt | 1,022 | 1,849.0 | (55.2 | ) | 28 | 60.7 | (3.2 | ) | |||||||||||||
Corporate securities | 1,272 | 2,640.6 | (49.5 | ) | 203 | 422.8 | (27.1 | ) | |||||||||||||
Residential mortgage-backed securities | 430 | 905.8 | (15.3 | ) | 114 | 136.9 | (4.6 | ) | |||||||||||||
Commercial mortgage-backed securities | 19 | 61.2 | (0.3 | ) | 24 | 60.8 | (3.4 | ) | |||||||||||||
Other securities | 66 | 144.3 | (1.5 | ) | 55 | 133.8 | (4.0 | ) | |||||||||||||
Total fixed maturity securities | 2,878 | 5,987.2 | (127.8 | ) | 425 | 816.0 | (42.4 | ) | |||||||||||||
Equity securities | 452 | 233.1 | (10.7 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 3,330 | $ | 6,220.3 | $ | (138.5 | ) | 425 | $ | 816.0 | $ | (42.4 | ) |
Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 496.2 | $ | 496.5 | |||
Due after one year through five years | 4,945.2 | 5,000.1 | |||||
Due after five years through ten years | 5,556.4 | 5,668.0 | |||||
Due after ten years | 4,012.6 | 4,155.9 | |||||
Mortgage-backed securities | 2,600.1 | 2,617.6 | |||||
Total available-for-sale fixed maturity securities | $ | 17,610.5 | $ | 17,938.1 |
2017 | 2016 | 2015 | |||||||||
Fixed maturity securities | $ | 614.2 | $ | 673.1 | $ | 679.0 | |||||
Equity securities | 116.4 | 61.7 | 61.7 | ||||||||
Cash equivalents | 24.8 | 3.6 | 0.7 | ||||||||
Other | 152.2 | 84.9 | (22.6 | ) | |||||||
Investment income | 907.6 | 823.3 | 718.8 | ||||||||
Investment expense | (41.1 | ) | (43.8 | ) | (41.2 | ) | |||||
Net investment income | $ | 866.5 | $ | 779.5 | $ | 677.6 |
2017 | 2016 | 2015 | |||||||||
Net realized gains (losses): | |||||||||||
Fixed maturity securities: | |||||||||||
Gross realized gains from sales | $ | 136.6 | $ | 209.9 | $ | 135.9 | |||||
Gross realized losses from sales | (54.9 | ) | (152.1 | ) | (182.1 | ) | |||||
Net realized gains (losses) from sales of fixed maturity securities | 81.7 | 57.8 | (46.2 | ) | |||||||
Equity securities: | |||||||||||
Gross realized gains from sales | 140.1 | 205.5 | 233.4 | ||||||||
Gross realized losses from sales | (16.9 | ) | (50.0 | ) | (45.1 | ) | |||||
Net realized gains from sales of equity securities | 123.2 | 155.5 | 188.3 | ||||||||
Other investments: | |||||||||||
Gross realized gains from sales | 0.3 | 7.2 | 5.0 | ||||||||
Gross realized losses from sales | (4.9 | ) | (0.4 | ) | — | ||||||
Net realized (losses) gains from sales of other investments | (4.6 | ) | 6.8 | 5.0 | |||||||
Net realized gains | 200.3 | 220.1 | 147.1 | ||||||||
Other-than-temporary impairment losses recognized in income: | |||||||||||
Fixed maturity securities | (3.7 | ) | (74.7 | ) | (31.2 | ) | |||||
Equity securities | (15.5 | ) | (22.3 | ) | (35.6 | ) | |||||
Other investments | (13.9 | ) | (18.4 | ) | (16.6 | ) | |||||
Other-than-temporary impairment losses recognized in income | (33.1 | ) | (115.4 | ) | (83.4 | ) | |||||
Change in net unrealized gains (losses) on investments: | |||||||||||
Fixed maturity securities | 156.5 | 193.3 | (372.9 | ) | |||||||
Equity securities | 110.6 | 6.9 | (217.7 | ) | |||||||
Other investments | (9.8 | ) | (2.5 | ) | (4.1 | ) | |||||
Total change in net unrealized gains (losses) on investments | 257.3 | 197.7 | (594.7 | ) | |||||||
Deferred income tax (expense) benefit | (84.8 | ) | (79.8 | ) | 210.4 | ||||||
Net change in net unrealized gains (losses) on investments | 172.5 | 117.9 | (384.3 | ) | |||||||
Net realized gains on investments, other-than-temporary impairment losses recognized in income and net change in net unrealized gains (losses) on investments | $ | 339.7 | $ | 222.6 | $ | (320.6 | ) |
2017 | 2016 | 2015 | |||||||||
Proceeds | $ | 13,460.8 | $ | 11,952.3 | $ | 11,779.8 | |||||
Gross realized gains | 277.0 | 422.6 | 374.3 | ||||||||
Gross realized losses | (76.7 | ) | (202.5 | ) | (227.2 | ) |
Overnight and Continuous | Less than 30 days | 30-90 days | Greater Than 90 days | Total | |||||||||||||||
Securities lending transactions | |||||||||||||||||||
United States Government securities | $ | 16.3 | $ | — | $ | 6.1 | $ | — | $ | 22.4 | |||||||||
Corporate securities | 368.6 | — | — | — | 368.6 | ||||||||||||||
Equity securities | 63.4 | — | — | — | 63.4 | ||||||||||||||
Total | $ | 448.3 | $ | — | $ | 6.1 | $ | — | $ | 454.4 |
2018 | $ | 154.5 | |
2019 | 145.5 | ||
2020 | 123.9 | ||
2021 | 100.4 | ||
2022 | 88.2 | ||
Thereafter | 286.0 | ||
Total minimum payments required | $ | 898.5 |
Commercial & Specialty Business | Government Business | Total | |||||||||
Gross medical claims payable, beginning of year | $ | 3,267.0 | $ | 4,625.6 | $ | 7,892.6 | |||||
Ceded medical claims payable, beginning of year | (521.3 | ) | (17.8 | ) | (539.1 | ) | |||||
Net medical claims payable, beginning of year | 2,745.7 | 4,607.8 | 7,353.5 | ||||||||
Business combinations and purchase adjustments | — | 75.8 | 75.8 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 29,722.1 | 42,150.2 | 71,872.3 | ||||||||
Prior years redundancies | (462.7 | ) | (701.9 | ) | (1,164.6 | ) | |||||
Total net incurred medical claims | 29,259.4 | 41,448.3 | 70,707.7 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 26,481.8 | 37,767.9 | 64,249.7 | ||||||||
Prior years medical claims | 2,194.7 | 3,806.0 | 6,000.7 | ||||||||
Total net payments | 28,676.5 | 41,573.9 | 70,250.4 | ||||||||
Net medical claims payable, end of year | 3,328.6 | 4,558.0 | 7,886.6 | ||||||||
Ceded medical claims payable, end of year | 78.0 | 26.9 | 104.9 | ||||||||
Gross medical claims payable, end of year | $ | 3,406.6 | $ | 4,584.9 | $ | 7,991.5 |
Commercial & Specialty Business | Government Business | Total | |||||||||
Gross medical claims payable, beginning of year | $ | 3,396.1 | $ | 4,173.7 | $ | 7,569.8 | |||||
Ceded medical claims payable, beginning of year | (635.7 | ) | (9.9 | ) | (645.6 | ) | |||||
Net medical claims payable, beginning of year | 2,760.4 | 4,163.8 | 6,924.2 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 27,797.3 | 38,574.1 | 66,371.4 | ||||||||
Prior years redundancies | (466.5 | ) | (383.9 | ) | (850.4 | ) | |||||
Total net incurred medical claims | 27,330.8 | 38,190.2 | 65,521.0 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 25,119.3 | 34,037.3 | 59,156.6 | ||||||||
Prior years medical claims | 2,226.2 | 3,708.9 | 5,935.1 | ||||||||
Total net payments | 27,345.5 | 37,746.2 | 65,091.7 | ||||||||
Net medical claims payable, end of year | 2,745.7 | 4,607.8 | 7,353.5 | ||||||||
Ceded medical claims payable, end of year | 521.3 | 17.8 | 539.1 | ||||||||
Gross medical claims payable, end of year | $ | 3,267.0 | $ | 4,625.6 | $ | 7,892.6 |
Commercial & Specialty Business | Government Business | Total | |||||||||
Gross medical claims payable, beginning of year | $ | 3,541.4 | $ | 3,319.8 | $ | 6,861.2 | |||||
Ceded medical claims payable, beginning of year | (762.5 | ) | (4.9 | ) | (767.4 | ) | |||||
Net medical claims payable, beginning of year | 2,778.9 | 3,314.9 | 6,093.8 | ||||||||
Business combinations and purchase adjustments | — | 121.8 | 121.8 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 26,798.5 | 33,909.9 | 60,708.4 | ||||||||
Prior years redundancies | (480.3 | ) | (319.9 | ) | (800.2 | ) | |||||
Total net incurred medical claims | 26,318.2 | 33,590.0 | 59,908.2 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 24,145.7 | 29,922.0 | 54,067.7 | ||||||||
Prior years medical claims | 2,191.0 | 2,940.9 | 5,131.9 | ||||||||
Total net payments | 26,336.7 | 32,862.9 | 59,199.6 | ||||||||
Net medical claims payable, end of year | 2,760.4 | 4,163.8 | 6,924.2 | ||||||||
Ceded medical claims payable, end of year | 635.7 | 9.9 | 645.6 | ||||||||
Gross medical claims payable, end of year | $ | 3,396.1 | $ | 4,173.7 | $ | 7,569.8 |
Favorable Developments by Changes in Key Assumptions | |||||||||||
2017 | 2016 | 2015 | |||||||||
Assumed trend factors | $ | (651.3 | ) | $ | (591.3 | ) | $ | (467.9 | ) | ||
Assumed completion factors | (513.3 | ) | (259.1 | ) | (332.3 | ) | |||||
Total | $ | (1,164.6 | ) | $ | (850.4 | ) | $ | (800.2 | ) |
Years Ended December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net incurred medical claims: | ||||||||||||
Commercial & Specialty Business | $ | 29,259.4 | $ | 27,330.8 | $ | 26,318.2 | ||||||
Government Business | 41,448.3 | 38,190.2 | 33,590.0 | |||||||||
Total net incurred medical claims | 70,707.7 | 65,521.0 | 59,908.2 | |||||||||
Quality improvement and other claims expense | 1,528.5 | 1,313.4 | 1,208.7 | |||||||||
Benefit expense | $ | 72,236.2 | $ | 66,834.4 | $ | 61,116.9 |
Commercial & Specialty Business | Cumulative Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 29,097.0 | $ | 28,630.5 | $ | 28,581.0 | ||||||
2016 | 27,797.3 | 27,384.1 | ||||||||||
2017 | 29,722.1 | |||||||||||
Total | $ | 85,687.2 |
Commercial & Specialty Business | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 26,336.7 | $ | 28,562.8 | $ | 28,546.9 | ||||||
2016 | 25,119.3 | 27,329.9 | ||||||||||
2017 | 26,481.8 | |||||||||||
Total | $ | 82,358.6 |
Government Business | Cumulative Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 37,026.7 | $ | 36,642.9 | $ | 36,594.3 | ||||||
2016 | 38,574.1 | 37,920.8 | ||||||||||
2017 | 42,226.0 | |||||||||||
Total | $ | 116,741.1 |
Government Business | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 32,862.9 | $ | 36,572.0 | $ | 36,572.0 | ||||||
2016 | 34,037.3 | 37,843.2 | ||||||||||
2017 | 37,767.9 | |||||||||||
Total | $ | 112,183.1 |
Commercial & Specialty Business | Government Business | Total | |||||||||
Cumulative incurred claims and allocated claim adjustment expenses, net of reinsurance | $ | 85,687.2 | $ | 116,741.1 | $ | 202,428.3 | |||||
Less: cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 82,358.6 | 112,183.1 | 194,541.7 | ||||||||
Net medical claims payable, end of year | 3,328.6 | 4,558.0 | 7,886.6 | ||||||||
Ceded medical claims payable, end of year | 78.0 | 26.9 | 104.9 | ||||||||
Gross medical claims payable, end of year | $ | 3,406.6 | $ | 4,584.9 | $ | 7,991.5 |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Benefit obligation at beginning of year | $ | 1,824.9 | $ | 1,833.3 | $ | 565.2 | $ | 578.7 | |||||||
Service cost | 10.1 | 11.6 | 1.4 | 1.6 | |||||||||||
Interest cost | 66.3 | 68.5 | 20.8 | 22.4 | |||||||||||
Actuarial loss (gain) | 103.7 | 32.2 | (39.2 | ) | (4.2 | ) | |||||||||
Benefits paid | (132.6 | ) | (120.7 | ) | (24.0 | ) | (33.3 | ) | |||||||
Benefit obligation at end of year | $ | 1,872.4 | $ | 1,824.9 | $ | 524.2 | $ | 565.2 |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Fair value of plan assets at beginning of year | $ | 1,887.8 | $ | 1,865.2 | $ | 331.8 | $ | 328.4 | |||||||
Actual return on plan assets | 253.2 | 132.2 | 41.0 | 21.8 | |||||||||||
Employer contributions | 3.9 | 11.1 | 7.5 | 14.9 | |||||||||||
Benefits paid | (132.6 | ) | (120.7 | ) | (24.0 | ) | (33.3 | ) | |||||||
Fair value of plan assets at end of year | $ | 2,012.3 | $ | 1,887.8 | $ | 356.3 | $ | 331.8 |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Noncurrent assets | $ | 202.0 | $ | 126.7 | $ | — | $ | — | |||||||
Current liabilities | (5.4 | ) | (3.7 | ) | — | — | |||||||||
Noncurrent liabilities | (56.7 | ) | (60.1 | ) | (167.9 | ) | (233.4 | ) | |||||||
Net amount at December 31 | $ | 139.9 | $ | 62.9 | $ | (167.9 | ) | $ | (233.4 | ) |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net actuarial loss | $ | 624.7 | $ | 655.8 | $ | 77.5 | $ | 146.6 | |||||||
Prior service cost (credit) | 1.0 | 0.5 | (46.1 | ) | (59.7 | ) | |||||||||
Net amount before tax at December 31 | $ | 625.7 | $ | 656.3 | $ | 31.4 | $ | 86.9 |
Pension Benefits | Other Benefits | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Discount rate | 3.44 | % | 3.77 | % | 3.42 | % | 3.82 | % | |||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||
Expected rate of return on plan assets | 7.83 | % | 7.95 | % | 7.00 | % | 7.00 | % |
2017 | 2016 | 2015 | |||||||||
Pension Benefits | |||||||||||
Service cost | $ | 10.1 | $ | 11.6 | $ | 13.1 | |||||
Interest cost | 66.3 | 68.5 | 68.2 | ||||||||
Expected return on assets | (147.6 | ) | (147.1 | ) | (143.2 | ) | |||||
Recognized actuarial loss | 21.8 | 19.0 | 25.7 | ||||||||
Amortization of prior service credit | (0.4 | ) | (0.6 | ) | (0.6 | ) | |||||
Settlement loss | 7.4 | 7.3 | 6.5 | ||||||||
Net periodic benefit credit | $ | (42.4 | ) | $ | (41.3 | ) | $ | (30.3 | ) | ||
Other Benefits | |||||||||||
Service cost | $ | 1.4 | $ | 1.6 | $ | 2.1 | |||||
Interest cost | 20.8 | 22.4 | 23.4 | ||||||||
Expected return on assets | (22.6 | ) | (22.4 | ) | (23.7 | ) | |||||
Recognized actuarial loss | 11.4 | 12.4 | 15.3 | ||||||||
Amortization of prior service credit | (13.6 | ) | (13.8 | ) | (14.4 | ) | |||||
Net periodic (benefit credit) benefit cost | $ | (2.6 | ) | $ | 0.2 | $ | 2.7 |
2017 | 2016 | 2015 | ||||||
Pension Benefits | ||||||||
Discount rate | 3.77 | % | 3.92 | % | 3.66 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | ||
Expected rate of return on plan assets | 7.95 | % | 7.84 | % | 7.62 | % | ||
Other Benefits | ||||||||
Discount rate | 3.82 | % | 4.01 | % | 3.74 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | ||
Expected rate of return on plan assets | 7.00 | % | 7.00 | % | 7.00 | % |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2017 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 584.4 | $ | 4.8 | $ | — | $ | 589.2 | |||||||
Foreign securities | 178.7 | — | — | 178.7 | |||||||||||
Mutual funds | 39.4 | — | — | 39.4 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 226.9 | — | — | 226.9 | |||||||||||
Corporate securities | — | 376.5 | — | 376.5 | |||||||||||
Asset-backed securities | — | 139.9 | — | 139.9 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 53.9 | — | 53.9 | |||||||||||
Partnership interests | — | — | 220.8 | 220.8 | |||||||||||
Insurance company contracts | — | — | 173.4 | 173.4 | |||||||||||
Total pension benefit assets | $ | 1,029.4 | $ | 575.1 | $ | 394.2 | $ | 1,998.7 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 10.3 | $ | 0.2 | $ | — | $ | 10.5 | |||||||
Foreign securities | 3.3 | — | — | 3.3 | |||||||||||
Mutual funds | 47.8 | — | — | 47.8 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 2.5 | — | — | 2.5 | |||||||||||
Corporate securities | — | 5.2 | — | 5.2 | |||||||||||
Asset-backed securities | — | 4.7 | — | 4.7 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 0.5 | — | 0.5 | |||||||||||
Partnership interests | — | — | 0.4 | 0.4 | |||||||||||
Life insurance contracts | — | — | 268.5 | 268.5 | |||||||||||
Investment in DOL 103-12 trust | — | 11.4 | — | 11.4 | |||||||||||
Total other benefit assets | $ | 63.9 | $ | 22.0 | $ | 268.9 | $ | 354.8 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2016 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 561.4 | $ | 4.4 | $ | — | $ | 565.8 | |||||||
Foreign securities | 264.5 | — | — | 264.5 | |||||||||||
Mutual funds | 36.6 | — | — | 36.6 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 183.9 | — | — | 183.9 | |||||||||||
Corporate securities | — | 385.9 | — | 385.9 | |||||||||||
Asset-backed securities | — | 134.7 | — | 134.7 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 27.5 | — | 27.5 | |||||||||||
Partnership interests | — | — | 112.5 | 112.5 | |||||||||||
Insurance company contracts | — | — | 173.3 | 173.3 | |||||||||||
Treasury futures contracts | 0.3 | — | — | 0.3 | |||||||||||
Total pension benefit assets | $ | 1,046.7 | $ | 552.5 | $ | 285.8 | $ | 1,885.0 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 13.0 | $ | 0.2 | $ | — | $ | 13.2 | |||||||
Foreign securities | 5.4 | — | — | 5.4 | |||||||||||
Mutual funds | 47.1 | — | — | 47.1 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 2.7 | — | — | 2.7 | |||||||||||
Corporate securities | — | 7.9 | — | 7.9 | |||||||||||
Asset-backed securities | — | 5.8 | — | 5.8 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 1.0 | — | 1.0 | |||||||||||
Partnership interests | — | — | 1.2 | 1.2 | |||||||||||
Life insurance contracts | — | — | 237.7 | 237.7 | |||||||||||
Investment in DOL 103-12 trust | — | 9.8 | — | 9.8 | |||||||||||
Total other benefit assets | $ | 68.2 | $ | 24.7 | $ | 238.9 | $ | 331.8 |
Partnership Interests | Insurance Company Contracts | Life Insurance Contracts | Total | ||||||||||||
Year ended December 31, 2017 | |||||||||||||||
Beginning balance at January 1, 2017 | $ | 113.7 | $ | 173.3 | $ | 237.7 | $ | 524.7 | |||||||
Actual return on plan assets relating to assets still held at the reporting date | 20.4 | (0.5 | ) | 30.8 | 50.7 | ||||||||||
Purchases | 126.1 | 9.7 | — | 135.8 | |||||||||||
Sales | (39.0 | ) | (9.1 | ) | — | (48.1 | ) | ||||||||
Ending balance at December 31, 2017 | $ | 221.2 | $ | 173.4 | $ | 268.5 | $ | 663.1 | |||||||
Year ended December 31, 2016 | |||||||||||||||
Beginning balance at January 1, 2016 | $ | 118.6 | $ | 174.2 | $ | 229.9 | $ | 522.7 | |||||||
Actual return on plan assets relating to assets still held at the reporting date | (3.5 | ) | (3.1 | ) | 10.8 | 4.2 | |||||||||
Purchases | 17.8 | 8.9 | — | 26.7 | |||||||||||
Sales | (19.2 | ) | (6.7 | ) | (3.0 | ) | (28.9 | ) | |||||||
Ending balance at December 31, 2016 | $ | 113.7 | $ | 173.3 | $ | 237.7 | $ | 524.7 | |||||||
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 |
Pension Benefits | Other Benefits | ||||||
2018 | $ | 156.4 | $ | 39.6 | |||
2019 | 152.3 | 40.0 | |||||
2020 | 149.6 | 39.9 | |||||
2021 | 145.8 | 39.6 | |||||
2022 | 144.5 | 39.3 | |||||
2023 - 2027 | 636.9 | 179.4 |
2017 | 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer relationships | $ | 3,724.9 | $ | (2,877.8 | ) | $ | 847.1 | $ | 3,310.9 | $ | (2,759.7 | ) | $ | 551.2 | |||||||||
Provider and hospital relationships | 187.4 | (73.2 | ) | 114.2 | 150.5 | (65.9 | ) | 84.6 | |||||||||||||||
Other | 184.0 | (67.2 | ) | 116.8 | 89.4 | (50.6 | ) | 38.8 | |||||||||||||||
Total | 4,096.3 | (3,018.2 | ) | 1,078.1 | 3,550.8 | (2,876.2 | ) | 674.6 | |||||||||||||||
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 | 991.6 | — | 991.6 | |||||||||||||||||
Total | 7,290.3 | — | 7,290.3 | 7,290.3 | — | 7,290.3 | |||||||||||||||||
Other intangible assets | $ | 11,386.6 | $ | (3,018.2 | ) | $ | 8,368.4 | $ | 10,841.1 | $ | (2,876.2 | ) | $ | 7,964.9 |
2017 | 2016 | ||||||
Land and improvements | $ | 17.8 | $ | 21.2 | |||
Building and improvements | 167.7 | 215.1 | |||||
Computer equipment, furniture and other equipment | 1,080.1 | 1,024.5 | |||||
Computer software, purchased and internally developed | 2,612.9 | 2,416.7 | |||||
Leasehold improvements | 494.0 | 462.4 | |||||
Property and equipment, gross | 4,372.5 | 4,139.9 | |||||
Accumulated depreciation and amortization | (2,197.6 | ) | (2,162.0 | ) | |||
Property and equipment, net | $ | 2,174.9 | $ | 1,977.9 |
2017 | 2016 | ||||||
Land and improvements | $ | 17.8 | $ | 21.2 | |||
Building and improvements | 167.7 | 215.1 | |||||
Computer equipment, furniture and other equipment | 1,080.1 | 1,024.5 | |||||
Computer software, purchased and internally developed | 2,612.9 | 2,416.7 | |||||
Leasehold improvements | 494.0 | 462.4 | |||||
Property and equipment, gross | 4,372.5 | 4,139.9 | |||||
Accumulated depreciation and amortization | (2,197.6 | ) | (2,162.0 | ) | |||
Property and equipment, net | $ | 2,174.9 | $ | 1,977.9 |
For the Quarter Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
2017 | |||||||||||||||
Total revenues | $ | 22,525.9 | $ | 22,407.2 | $ | 22,426.0 | $ | 22,680.3 | |||||||
Income before income tax expense | 1,515.0 | 1,205.7 | 1,118.9 | 124.2 | |||||||||||
Net income | 1,009.9 | 855.3 | 746.9 | 1,230.7 | |||||||||||
Basic net income per share | $ | 3.82 | $ | 3.23 | $ | 2.87 | $ | 4.80 | |||||||
Diluted net income per share | 3.73 | 3.16 | 2.80 | 4.67 | |||||||||||
2016 | |||||||||||||||
Total revenues | $ | 20,288.5 | $ | 21,456.2 | $ | 21,403.9 | $ | 21,714.4 | |||||||
Income before income tax expense | 1,312.0 | 1,448.3 | 1,136.5 | 658.6 | |||||||||||
Net income | 703.0 | 780.6 | 617.8 | 368.4 | |||||||||||
Basic net income per share | $ | 2.69 | $ | 2.97 | $ | 2.35 | $ | 1.40 | |||||||
Diluted net income per share | 2.63 | 2.91 | 2.30 | 1.37 |
2017 | 2016 | 2015 | |||||||||
Proceeds | $ | 13,460.8 | $ | 11,952.3 | $ | 11,779.8 | |||||
Gross realized gains | 277.0 | 422.6 | 374.3 | ||||||||
Gross realized losses | (76.7 | ) | (202.5 | ) | (227.2 | ) |
2017 | 2016 | 2015 | |||||||||
Reportable segments operating gain | $ | 4,175.4 | $ | 4,801.7 | $ | 4,753.1 | |||||
Net investment income | 866.5 | 779.5 | 677.6 | ||||||||
Net realized gains on financial instruments | 144.8 | 4.9 | 157.5 | ||||||||
Other-than-temporary impairment losses recognized in income | (33.1 | ) | (115.4 | ) | (83.4 | ) | |||||
Interest expense | (739.0 | ) | (723.0 | ) | (653.0 | ) | |||||
Amortization of other intangible assets | (168.4 | ) | (192.3 | ) | (230.1 | ) | |||||
(Loss) gain on extinguishment of debt | (282.4 | ) | — | 9.3 | |||||||
Income before income tax expense | $ | 3,963.8 | $ | 4,555.4 | $ | 4,631.0 |
2017 | 2016 | 2015 | |||||||||
Reportable segments operating revenues | $ | 89,061.2 | $ | 84,194.0 | $ | 78,404.8 | |||||
Net investment income | 866.5 | 779.5 | 677.6 | ||||||||
Net realized gains on financial instruments | 144.8 | 4.9 | 157.5 | ||||||||
Other-than-temporary impairment losses recognized in income | (33.1 | ) | (115.4 | ) | (83.4 | ) | |||||
Total revenues | $ | 90,039.4 | $ | 84,863.0 | $ | 79,156.5 |
2017 | 2016 | 2015 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 83,974.3 | $ | 83,417.8 | $ | 78,200.4 | $ | 78,726.2 | $ | 72,925.5 | $ | 73,259.2 | |||||||||||
Assumed | 274.6 | 274.6 | 217.4 | 217.3 | 221.8 | 221.9 | |||||||||||||||||
Ceded | (43.7 | ) | (44.7 | ) | (79.8 | ) | (83.4 | ) | (95.8 | ) | (96.0 | ) | |||||||||||
Net premiums | $ | 84,205.2 | $ | 83,647.7 | $ | 78,338.0 | $ | 78,860.1 | $ | 73,051.5 | $ | 73,385.1 | |||||||||||
Percentage—assumed to net premiums | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % |
2017 | 2016 | 2015 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Reportable segments: | |||||||||||||||||||||||
Commercial & Specialty Business | $ | 35,683.1 | $ | 35,804.3 | $ | 33,355.6 | $ | 33,831.5 | $ | 33,016.9 | $ | 33,078.0 | |||||||||||
Government Business | 48,522.1 | 47,843.4 | 44,982.4 | 45,028.6 | 40,034.6 | 40,307.1 | |||||||||||||||||
Net premiums | $ | 84,205.2 | $ | 83,647.7 | $ | 78,338.0 | $ | 78,860.1 | $ | 73,051.5 | $ | 73,385.1 |
2017 | 2016 | 2015 | |||||||||
Direct | $ | 72,135.0 | $ | 67,221.7 | $ | 61,674.0 | |||||
Assumed | 216.7 | 184.9 | 192.2 | ||||||||
Ceded | (115.5 | ) | (572.2 | ) | (749.3 | ) | |||||
Net benefit expense | $ | 72,236.2 | $ | 66,834.4 | $ | 61,116.9 |
2017 | 2016 | ||||||
Policy liabilities, assumed | $ | 54.3 | $ | 47.2 | |||
Unearned income, assumed | 0.6 | 0.6 | |||||
Premiums payable, ceded | 9.3 | 5.2 | |||||
Premiums receivable, assumed | 32.9 | 25.9 |
2017 | 2016 | ||||||
Investments: | |||||||
Gross unrealized gains | $ | 939.7 | $ | 748.6 | |||
Gross unrealized losses | (104.9 | ) | (180.9 | ) | |||
Net pretax unrealized gains | 834.8 | 567.7 | |||||
Deferred tax liability | (301.1 | ) | (206.5 | ) | |||
Net unrealized gains on investments | 533.7 | 361.2 | |||||
Non-credit components of OTTI on investments: | |||||||
Gross unrealized losses | (0.3 | ) | (7.2 | ) | |||
Deferred tax asset | 0.1 | 2.6 | |||||
Net unrealized non-credit component of OTTI on investments | (0.2 | ) | (4.6 | ) | |||
Cash flow hedges: | |||||||
Gross unrealized losses | (358.6 | ) | (259.1 | ) | |||
Deferred tax asset | 125.6 | 90.7 | |||||
Net unrealized losses on cash flow hedges | (233.0 | ) | (168.4 | ) | |||
Defined benefit pension plans: | |||||||
Deferred net actuarial loss | (624.7 | ) | (655.8 | ) | |||
Deferred prior service cost | (1.0 | ) | (0.5 | ) | |||
Deferred tax asset | 244.1 | 257.2 | |||||
Net unrecognized periodic benefit costs for defined benefit pension plans | (381.6 | ) | (399.1 | ) | |||
Postretirement benefit plans: | |||||||
Deferred net actuarial loss | (77.5 | ) | (146.6 | ) | |||
Deferred prior service credits | 46.1 | 59.7 | |||||
Deferred tax asset | 12.3 | 34.0 | |||||
Net unrecognized periodic benefit costs for postretirement benefit plans | (19.1 | ) | (52.9 | ) | |||
Foreign currency translation adjustments: | |||||||
Gross unrealized losses | (2.1 | ) | (6.3 | ) | |||
Deferred tax asset | 0.8 | 2.2 | |||||
Net unrealized losses on foreign currency translation adjustments | (1.3 | ) | (4.1 | ) | |||
Accumulated other comprehensive loss | $ | (101.5 | ) | $ | (267.9 | ) |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2017 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 584.4 | $ | 4.8 | $ | — | $ | 589.2 | |||||||
Foreign securities | 178.7 | — | — | 178.7 | |||||||||||
Mutual funds | 39.4 | — | — | 39.4 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 226.9 | — | — | 226.9 | |||||||||||
Corporate securities | — | 376.5 | — | 376.5 | |||||||||||
Asset-backed securities | — | 139.9 | — | 139.9 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 53.9 | — | 53.9 | |||||||||||
Partnership interests | — | — | 220.8 | 220.8 | |||||||||||
Insurance company contracts | — | — | 173.4 | 173.4 | |||||||||||
Total pension benefit assets | $ | 1,029.4 | $ | 575.1 | $ | 394.2 | $ | 1,998.7 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 10.3 | $ | 0.2 | $ | — | $ | 10.5 | |||||||
Foreign securities | 3.3 | — | — | 3.3 | |||||||||||
Mutual funds | 47.8 | — | — | 47.8 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 2.5 | — | — | 2.5 | |||||||||||
Corporate securities | — | 5.2 | — | 5.2 | |||||||||||
Asset-backed securities | — | 4.7 | — | 4.7 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 0.5 | — | 0.5 | |||||||||||
Partnership interests | — | — | 0.4 | 0.4 | |||||||||||
Life insurance contracts | — | — | 268.5 | 268.5 | |||||||||||
Investment in DOL 103-12 trust | — | 11.4 | — | 11.4 | |||||||||||
Total other benefit assets | $ | 63.9 | $ | 22.0 | $ | 268.9 | $ | 354.8 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2016 | |||||||||||||||
Pension Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 561.4 | $ | 4.4 | $ | — | $ | 565.8 | |||||||
Foreign securities | 264.5 | — | — | 264.5 | |||||||||||
Mutual funds | 36.6 | — | — | 36.6 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 183.9 | — | — | 183.9 | |||||||||||
Corporate securities | — | 385.9 | — | 385.9 | |||||||||||
Asset-backed securities | — | 134.7 | — | 134.7 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 27.5 | — | 27.5 | |||||||||||
Partnership interests | — | — | 112.5 | 112.5 | |||||||||||
Insurance company contracts | — | — | 173.3 | 173.3 | |||||||||||
Treasury futures contracts | 0.3 | — | — | 0.3 | |||||||||||
Total pension benefit assets | $ | 1,046.7 | $ | 552.5 | $ | 285.8 | $ | 1,885.0 | |||||||
Other Benefit Assets: | |||||||||||||||
Equity securities: | |||||||||||||||
U.S. securities | $ | 13.0 | $ | 0.2 | $ | — | $ | 13.2 | |||||||
Foreign securities | 5.4 | — | — | 5.4 | |||||||||||
Mutual funds | 47.1 | — | — | 47.1 | |||||||||||
Fixed maturity securities: | |||||||||||||||
Government securities | 2.7 | — | — | 2.7 | |||||||||||
Corporate securities | — | 7.9 | — | 7.9 | |||||||||||
Asset-backed securities | — | 5.8 | — | 5.8 | |||||||||||
Other types of investments: | |||||||||||||||
Common and collective trusts | — | 1.0 | — | 1.0 | |||||||||||
Partnership interests | — | — | 1.2 | 1.2 | |||||||||||
Life insurance contracts | — | — | 237.7 | 237.7 | |||||||||||
Investment in DOL 103-12 trust | — | 9.8 | — | 9.8 | |||||||||||
Total other benefit assets | $ | 68.2 | $ | 24.7 | $ | 238.9 | $ | 331.8 |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Noncurrent assets | $ | 202.0 | $ | 126.7 | $ | — | $ | — | |||||||
Current liabilities | (5.4 | ) | (3.7 | ) | — | — | |||||||||
Noncurrent liabilities | (56.7 | ) | (60.1 | ) | (167.9 | ) | (233.4 | ) | |||||||
Net amount at December 31 | $ | 139.9 | $ | 62.9 | $ | (167.9 | ) | $ | (233.4 | ) |
Non-Credit Component of OTTIs Recognized in Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 649.0 | $ | 2.2 | $ | (5.0 | ) | $ | (0.7 | ) | $ | 645.5 | $ | — | |||||||||
Government sponsored securities | 90.3 | 0.3 | (0.1 | ) | (0.4 | ) | 90.1 | — | |||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 5,854.6 | 192.6 | (5.0 | ) | (7.3 | ) | 6,034.9 | — | |||||||||||||||
Corporate securities | 7,362.8 | 165.8 | (30.2 | ) | (12.6 | ) | 7,485.8 | (0.3 | ) | ||||||||||||||
Residential mortgage-backed securities | 2,520.0 | 38.5 | (8.0 | ) | (11.6 | ) | 2,538.9 | — | |||||||||||||||
Commercial mortgage-backed securities | 80.1 | 0.7 | (0.1 | ) | (2.0 | ) | 78.7 | — | |||||||||||||||
Other securities | 1,053.7 | 14.4 | (2.4 | ) | (1.5 | ) | 1,064.2 | — | |||||||||||||||
Total fixed maturity securities | 17,610.5 | 414.5 | (50.8 | ) | (36.1 | ) | 17,938.1 | $ | (0.3 | ) | |||||||||||||
Equity securities | 3,124.8 | 525.2 | (18.0 | ) | — | 3,632.0 | |||||||||||||||||
Total investments, available-for-sale | $ | 20,735.3 | $ | 939.7 | $ | (68.8 | ) | $ | (36.1 | ) | $ | 21,570.1 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
United States Government securities | $ | 561.7 | $ | 2.5 | $ | (5.7 | ) | $ | — | $ | 558.5 | $ | — | ||||||||||
Government sponsored securities | 40.1 | 0.3 | (0.3 | ) | (0.1 | ) | 40.0 | — | |||||||||||||||
States, municipalities and political subdivisions, tax-exempt | 6,024.6 | 139.1 | (55.2 | ) | (3.2 | ) | 6,105.3 | (3.8 | ) | ||||||||||||||
Corporate securities | 8,011.7 | 159.5 | (49.5 | ) | (27.1 | ) | 8,094.6 | (3.4 | ) | ||||||||||||||
Residential mortgage-backed securities | 1,916.9 | 32.3 | (15.3 | ) | (4.6 | ) | 1,929.3 | — | |||||||||||||||
Commercial mortgage-backed securities | 216.8 | 1.2 | (0.3 | ) | (3.4 | ) | 214.3 | — | |||||||||||||||
Other securities | 744.6 | 6.4 | (1.5 | ) | (4.0 | ) | 745.5 | — | |||||||||||||||
Total fixed maturity securities | 17,516.4 | 341.3 | (127.8 | ) | (42.4 | ) | 17,687.5 | $ | (7.2 | ) | |||||||||||||
Equity securities | 1,103.3 | 407.3 | (10.7 | ) | — | 1,499.9 | |||||||||||||||||
Total investments, available-for-sale | $ | 18,619.7 | $ | 748.6 | $ | (138.5 | ) | $ | (42.4 | ) | $ | 19,187.4 |
Hedge Loss Recognized in Other Comprehensive Income | Income Statement Location of Loss Reclassification from Accumulated Other Comprehensive Loss | Hedge Loss Reclassified from Accumulated Other Comprehensive Loss | ||||||||
Type of Cash Flow Hedge | ||||||||||
Year ended December 31, 2017 | ||||||||||
Forward starting pay fixed swaps | $ | (112.0 | ) | Interest expense | $ | (6.6 | ) | |||
Forward starting pay fixed swaps | Net realized gains on financial instruments | $ | (7.2 | ) |
Effective Portion | ||||||||||||||||
Hedge Loss Recognized in Other Comprehensive Income (Loss) | Income Statement Location of Loss Reclassification from Accumulated Other Comprehensive Loss | Hedge Loss Reclassified from Accumulated Other Comprehensive Loss | Ineffective Portion | |||||||||||||
Type of Cash Flow Hedge | Income Statement Location of Loss Recognized | Hedge Loss Recognized | ||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (140.1 | ) | Interest expense | $ | (5.8 | ) | Net realized gains on financial instruments | $ | (7.7 | ) | |||||
Year ended December 31, 2015 | ||||||||||||||||
Forward starting pay fixed swaps | $ | (75.2 | ) | Interest expense | $ | (5.5 | ) | None | $ | — |
Favorable Developments by Changes in Key Assumptions | |||||||||||
2017 | 2016 | 2015 | |||||||||
Assumed trend factors | $ | (651.3 | ) | $ | (591.3 | ) | $ | (467.9 | ) | ||
Assumed completion factors | (513.3 | ) | (259.1 | ) | (332.3 | ) | |||||
Total | $ | (1,164.6 | ) | $ | (850.4 | ) | $ | (800.2 | ) |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Fair value of plan assets at beginning of year | $ | 1,887.8 | $ | 1,865.2 | $ | 331.8 | $ | 328.4 | |||||||
Actual return on plan assets | 253.2 | 132.2 | 41.0 | 21.8 | |||||||||||
Employer contributions | 3.9 | 11.1 | 7.5 | 14.9 | |||||||||||
Benefits paid | (132.6 | ) | (120.7 | ) | (24.0 | ) | (33.3 | ) | |||||||
Fair value of plan assets at end of year | $ | 2,012.3 | $ | 1,887.8 | $ | 356.3 | $ | 331.8 |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Benefit obligation at beginning of year | $ | 1,824.9 | $ | 1,833.3 | $ | 565.2 | $ | 578.7 | |||||||
Service cost | 10.1 | 11.6 | 1.4 | 1.6 | |||||||||||
Interest cost | 66.3 | 68.5 | 20.8 | 22.4 | |||||||||||
Actuarial loss (gain) | 103.7 | 32.2 | (39.2 | ) | (4.2 | ) | |||||||||
Benefits paid | (132.6 | ) | (120.7 | ) | (24.0 | ) | (33.3 | ) | |||||||
Benefit obligation at end of year | $ | 1,872.4 | $ | 1,824.9 | $ | 524.2 | $ | 565.2 |
2017 | 2016 | 2015 | |||||||||
Current tax expense: | |||||||||||
Federal | $ | 1,355.9 | $ | 1,862.6 | $ | 1,996.6 | |||||
State and local | 39.5 | 93.9 | 133.0 | ||||||||
Total current tax expense | 1,395.4 | 1,956.5 | 2,129.6 | ||||||||
Deferred tax (benefit) expense | (1,274.4 | ) | 129.1 | (58.6 | ) | ||||||
Total income tax expense | $ | 121.0 | $ | 2,085.6 | $ | 2,071.0 |
2017 | 2016 | 2015 | |||||||||
Investments: | |||||||||||
Net holding gain (loss) on investment securities arising during the period, net of tax (expense) benefit of ($152.6), ($118.9), and $180.4, respectively | $ | 280.1 | $ | 186.0 | $ | (336.1 | ) | ||||
Reclassification adjustment for net realized gain on investment securities, net of tax expense of $58.0, $36.6, and $25.9, respectively | (107.6 | ) | (68.1 | ) | (48.2 | ) | |||||
Total reclassification adjustment on investments | 172.5 | 117.9 | (384.3 | ) | |||||||
Non-credit component of OTTI on investments: | |||||||||||
Non-credit component of OTTI on investments, net of tax (expense) benefit of ($2.8), ($2.8), and $3.0, respectively | 4.4 | 5.4 | (5.6 | ) | |||||||
Cash flow hedges: | |||||||||||
Holding loss, net of tax benefit of $34.9, $47.0, and $24.4, respectively | (64.6 | ) | (87.3 | ) | (45.2 | ) | |||||
Other: | |||||||||||
Net change in unrecognized periodic benefit costs for defined benefit pension and postretirement benefit plans, net of tax (expense) benefit of ($34.8), $5.7, and $13.4, respectively | 51.3 | (13.4 | ) | (26.0 | ) | ||||||
Foreign currency translation adjustment, net of tax (expense) benefit of ($1.4), ($1.1), and $1.8, respectively | 2.8 | 2.1 | (3.4 | ) | |||||||
Net gain (loss) recognized in other comprehensive loss, net of tax (expense) benefit of ($98.7), ($33.5), and $248.9, respectively | $ | 166.4 | $ | 24.7 | $ | (464.5 | ) |
2017 | 2016 | ||||||
Senior unsecured notes: | |||||||
2.375%, due 2017 | $ | — | $ | 400.1 | |||
5.875%, due 2017 | — | 528.3 | |||||
1.875%, due 2018 | 625.5 | 624.3 | |||||
2.300%, due 2018 | 649.1 | 647.5 | |||||
2.250%, due 2019 | 847.2 | 845.6 | |||||
7.000%, due 2019 | — | 439.4 | |||||
2.500%, due 2020 | 894.9 | — | |||||
4.350%, due 2020 | 692.9 | 700.0 | |||||
3.700%, due 2021 | 697.6 | 696.9 | |||||
2.950%, due 2022 | 745.9 | — | |||||
3.125%, due 2022 | 844.9 | 843.8 | |||||
3.300%, due 2023 | 994.4 | 993.3 | |||||
3.350%, due 2024 | 845.0 | — | |||||
3.500%, due 2024 | 792.9 | 791.9 | |||||
3.650%, due 2027 | 1,589.2 | — | |||||
5.950%, due 2034 | 334.0 | 444.7 | |||||
5.850%, due 2036 | 395.6 | 768.3 | |||||
6.375%, due 2037 | 366.3 | 639.9 | |||||
5.800%, due 2040 | 123.5 | 193.9 | |||||
4.625%, due 2042 | 886.7 | 886.3 | |||||
4.650%, due 2043 | 986.3 | 985.9 | |||||
4.650%, due 2044 | 791.1 | 790.8 | |||||
5.100%, due 2044 | 593.8 | 593.6 | |||||
4.375%, due 2047 | 1,385.5 | — | |||||
4.850%, due 2054 | 246.8 | 246.8 | |||||
Remarketable subordinated notes: | |||||||
1.900%, due 2028 | 1,238.7 | 1,237.6 | |||||
Surplus note: | |||||||
9.000%, due 2027 | 24.9 | 24.9 | |||||
Senior convertible debentures: | |||||||
2.750%, due 2042 | 260.5 | 334.1 | |||||
Variable rate debt: | |||||||
Commercial paper program | 803.6 | 629.0 | |||||
Total long-term debt | 18,656.8 | 15,286.9 | |||||
Current portion of long-term debt | (1,274.6 | ) | (928.4 | ) | |||
Long-term debt, less current portion | $ | 17,382.2 | $ | 14,358.5 |
2017 | 2016 | ||||||
Deferred tax assets relating to: | |||||||
Retirement benefits | $ | 210.7 | $ | 362.9 | |||
Accrued expenses | 278.6 | 331.9 | |||||
Insurance reserves | 136.5 | 229.5 | |||||
Net operating loss carryforwards | 3.7 | 9.2 | |||||
Bad debt reserves | 128.4 | 119.6 | |||||
State income tax | 32.7 | 59.8 | |||||
Deferred compensation | 23.7 | 38.2 | |||||
Investment basis difference | 23.9 | 42.4 | |||||
Other | 81.5 | 110.5 | |||||
Total deferred tax assets | 919.7 | 1,304.0 | |||||
Deferred tax liabilities relating to: | |||||||
Unrealized gains on securities | 174.9 | 202.9 | |||||
Intangible assets: | |||||||
Trademarks and state Medicaid licenses | 1,528.5 | 2,547.6 | |||||
Customer, provider and hospital relationships | 186.0 | 194.1 | |||||
Internally developed software and other amortization differences | 324.1 | 450.5 | |||||
Retirement benefits | 170.2 | 267.3 | |||||
Debt discount | 27.6 | 60.8 | |||||
State deferred tax | 104.5 | 106.0 | |||||
Depreciation and amortization | 41.5 | 54.1 | |||||
Other | 88.9 | 200.6 | |||||
Total deferred tax liabilities | 2,646.2 | 4,083.9 | |||||
Net deferred tax liability | $ | (1,726.5 | ) | $ | (2,779.9 | ) |
Contractual/ Notional Amount | Balance Sheet Location | Estimated Fair Value | |||||||||||
Asset | (Liability) | ||||||||||||
December 31, 2017 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 1,235.0 | Other assets/other liabilities | $ | 2.0 | $ | (5.3 | ) | |||||
Interest rate swaps - forward starting pay fixed | 425.0 | Other assets/other liabilities | — | (8.9 | ) | ||||||||
Subtotal hedging | 1,660.0 | Subtotal hedging | 2.0 | (14.2 | ) | ||||||||
Non-hedging instruments | |||||||||||||
Interest rate swaps | 171.3 | Equity securities | 1.0 | (4.7 | ) | ||||||||
Options | 100.0 | Other assets/other liabilities | — | (0.1 | ) | ||||||||
Futures | 116.8 | Equity securities | 0.1 | (2.5 | ) | ||||||||
Subtotal non-hedging | 388.1 | Subtotal non-hedging | 1.1 | (7.3 | ) | ||||||||
Total derivatives | $ | 2,048.1 | Total derivatives | 3.1 | (21.5 | ) | |||||||
Amounts netted | (1.6 | ) | 1.6 | ||||||||||
Net derivatives | $ | 1.5 | $ | (19.9 | ) | ||||||||
December 31, 2016 | |||||||||||||
Hedging instruments | |||||||||||||
Interest rate swaps - fixed to floating | $ | 1,385.0 | Other assets/other liabilities | $ | 4.0 | $ | (0.7 | ) | |||||
Interest rate swaps - forward starting pay fixed | 4,775.0 | Other assets/other liabilities | 528.8 | $ | (6.0 | ) | |||||||
Subtotal hedging | 6,160.0 | Subtotal hedging | 532.8 | (6.7 | ) | ||||||||
Non-hedging instruments | |||||||||||||
Interest rate swaps | 209.4 | Equity securities | 4.7 | (0.2 | ) | ||||||||
Options | 10,280.2 | Other assets/other liabilities | 220.7 | (233.9 | ) | ||||||||
Futures | 185.3 | Equity securities | 0.5 | (1.1 | ) | ||||||||
Subtotal non-hedging | 10,674.9 | Subtotal non-hedging | 225.9 | (235.2 | ) | ||||||||
Total derivatives | $ | 16,834.9 | Total derivatives | 758.7 | (241.9 | ) | |||||||
Amounts netted | (92.8 | ) | 92.8 | ||||||||||
Net derivatives | $ | 665.9 | $ | (149.1 | ) |
Type of Fair Value Hedges | Year Entered Into | Outstanding Notional Amount | Interest Rate Received | Expiration Date | |||||||||||
2017 | 2016 | ||||||||||||||
Interest rate swap | 2017 | $ | 50.0 | $ | — | 4.350 | % | August 15, 2020 | |||||||
Interest rate swap | 2015 | 200.0 | 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 | 2.375 | February 15, 2017 | ||||||||||
Total notional amount outstanding | $ | 1,235.0 | $ | 1,385.0 |
2017 | 2016 | 2015 | ||||||
Denominator for basic earnings per share—weighted-average shares | 261.5 | 262.9 | 263.0 | |||||
Effect of dilutive securities—employee stock options, non-vested restricted stock awards and convertible debentures | 6.3 | 5.2 | 9.9 | |||||
Denominator for diluted earnings per share | 267.8 | 268.1 | 272.9 |
Partnership Interests | Insurance Company Contracts | Life Insurance Contracts | Total | ||||||||||||
Year ended December 31, 2017 | |||||||||||||||
Beginning balance at January 1, 2017 | $ | 113.7 | $ | 173.3 | $ | 237.7 | $ | 524.7 | |||||||
Actual return on plan assets relating to assets still held at the reporting date | 20.4 | (0.5 | ) | 30.8 | 50.7 | ||||||||||
Purchases | 126.1 | 9.7 | — | 135.8 | |||||||||||
Sales | (39.0 | ) | (9.1 | ) | — | (48.1 | ) | ||||||||
Ending balance at December 31, 2017 | $ | 221.2 | $ | 173.4 | $ | 268.5 | $ | 663.1 | |||||||
Year ended December 31, 2016 | |||||||||||||||
Beginning balance at January 1, 2016 | $ | 118.6 | $ | 174.2 | $ | 229.9 | $ | 522.7 | |||||||
Actual return on plan assets relating to assets still held at the reporting date | (3.5 | ) | (3.1 | ) | 10.8 | 4.2 | |||||||||
Purchases | 17.8 | 8.9 | — | 26.7 | |||||||||||
Sales | (19.2 | ) | (6.7 | ) | (3.0 | ) | (28.9 | ) | |||||||
Ending balance at December 31, 2016 | $ | 113.7 | $ | 173.3 | $ | 237.7 | $ | 524.7 | |||||||
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 |
2017 | 2016 | 2015 | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Amount at statutory rate | $ | 1,387.3 | 35.0 | % | $ | 1,594.4 | 35.0 | % | $ | 1,620.9 | 35.0 | % | ||||||||
State and local income taxes net of federal tax expense/benefit | (2.2 | ) | (0.1 | ) | 61.5 | 1.4 | 75.3 | 1.6 | ||||||||||||
Tax exempt interest and dividends received deduction | (57.9 | ) | (1.4 | ) | (61.7 | ) | (1.4 | ) | (63.2 | ) | (1.3 | ) | ||||||||
HIP Fee | — | — | 411.7 | 9.0 | 422.6 | 9.1 | ||||||||||||||
Tax Cuts and Jobs Act | (1,108.3 | ) | (27.9 | ) | — | — | — | — | ||||||||||||
Other, net | (97.9 | ) | (2.5 | ) | 79.7 | 1.8 | 15.4 | 0.3 | ||||||||||||
Total income tax expense | $ | 121.0 | 3.1 | % | $ | 2,085.6 | 45.8 | % | $ | 2,071.0 | 44.7 | % |
2017 | 2016 | 2015 | |||||||||
Commercial & Specialty Business | |||||||||||
Managed care products | $ | 34,272.1 | $ | 32,369.8 | $ | 31,676.9 | |||||
Managed care services | 4,821.0 | 4,710.1 | 4,344.8 | ||||||||
Dental/Vision products and services | 1,218.1 | 1,182.3 | 1,111.7 | ||||||||
Other | 442.9 | 429.9 | 437.4 | ||||||||
Total Commercial & Specialty Business | 40,754.1 | 38,692.1 | 37,570.8 | ||||||||
Government Business | |||||||||||
Managed care products | 47,843.4 | 45,028.5 | 40,307.0 | ||||||||
Managed care services | 432.8 | 449.2 | 506.0 | ||||||||
Total Government Business | 48,276.2 | 45,477.7 | 40,813.0 | ||||||||
Other | |||||||||||
Other | 30.9 | 24.2 | 21.0 | ||||||||
Total product revenues | $ | 89,061.2 | $ | 84,194.0 | $ | 78,404.8 |
Pension Benefits | Other Benefits | ||||||
2018 | $ | 156.4 | $ | 39.6 | |||
2019 | 152.3 | 40.0 | |||||
2020 | 149.6 | 39.9 | |||||
2021 | 145.8 | 39.6 | |||||
2022 | 144.5 | 39.3 | |||||
2023 - 2027 | 636.9 | 179.4 |
Level I | Level II | Level III | Total | ||||||||||||
December 31, 2017 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 1,956.4 | $ | — | $ | — | $ | 1,956.4 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | — | 645.5 | — | 645.5 | |||||||||||
Government sponsored securities | — | 90.1 | — | 90.1 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,034.9 | — | 6,034.9 | |||||||||||
Corporate securities | 24.8 | 7,231.8 | 229.2 | 7,485.8 | |||||||||||
Residential mortgage-backed securities | — | 2,533.9 | 5.0 | 2,538.9 | |||||||||||
Commercial mortgage-backed securities | — | 78.7 | — | 78.7 | |||||||||||
Other securities | 75.2 | 973.1 | 15.9 | 1,064.2 | |||||||||||
Total fixed maturity securities | 100.0 | 17,588.0 | 250.1 | 17,938.1 | |||||||||||
Equity securities | 2,446.9 | 897.7 | 287.4 | 3,632.0 | |||||||||||
Other invested assets, current | 17.2 | — | — | 17.2 | |||||||||||
Securities lending collateral | 214.1 | 241.0 | — | 455.1 | |||||||||||
Derivatives | — | 3.1 | — | 3.1 | |||||||||||
Total assets | $ | 4,734.6 | $ | 18,729.8 | $ | 537.5 | $ | 24,001.9 | |||||||
Liabilities: | |||||||||||||||
Derivatives | $ | — | $ | (21.5 | ) | $ | — | $ | (21.5 | ) | |||||
Total liabilities | $ | — | $ | (21.5 | ) | $ | — | $ | (21.5 | ) | |||||
December 31, 2016 | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 1,546.0 | $ | — | $ | — | $ | 1,546.0 | |||||||
Investments available-for-sale: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
United States Government securities | 558.5 | — | — | 558.5 | |||||||||||
Government sponsored securities | — | 40.0 | — | 40.0 | |||||||||||
States, municipalities and political subdivisions, tax-exempt | — | 6,105.3 | — | 6,105.3 | |||||||||||
Corporate securities | 79.9 | 7,775.9 | 238.8 | 8,094.6 | |||||||||||
Residential mortgage-backed securities | — | 1,917.3 | 12.0 | 1,929.3 | |||||||||||
Commercial mortgage-backed securities | — | 214.3 | — | 214.3 | |||||||||||
Other securities | 53.4 | 649.3 | 42.8 | 745.5 | |||||||||||
Total fixed maturity securities | 691.8 | 16,702.1 | 293.6 | 17,687.5 | |||||||||||
Equity securities | 1,200.2 | 111.9 | 187.8 | 1,499.9 | |||||||||||
Other invested assets, current | 15.8 | — | — | 15.8 | |||||||||||
Securities lending collateral | 726.0 | 353.8 | — | 1,079.8 | |||||||||||
Derivatives | — | 758.7 | — | 758.7 | |||||||||||
Total assets | $ | 4,179.8 | $ | 17,926.5 | $ | 481.4 | $ | 22,587.7 | |||||||
Liabilities: | |||||||||||||||
Derivatives | $ | — | $ | (241.9 | ) | $ | — | $ | (241.9 | ) | |||||
Total liabilities | $ | — | $ | (241.9 | ) | $ | — | $ | (241.9 | ) |
Balance Sheet Classification in Which Hedged Item is Included | Carrying Amount of Hedged Liability | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Current portion of long term-debt | $ | 1,274.6 | $ | 928.4 | $ | 2.0 | $ | 0.3 | ||||||||
Long-term debt | 17,382.2 | 14,358.5 | (5.3 | ) | 3.0 |
2018 | $ | 154.5 | |
2019 | 145.5 | ||
2020 | 123.9 | ||
2021 | 100.4 | ||
2022 | 88.2 | ||
Thereafter | 286.0 | ||
Total minimum payments required | $ | 898.5 |
Commercial and Specialty Business | Government Business | Other | Total | ||||||||||||
Balance as of January 1, 2016 | $ | 11,818.9 | $ | 5,743.3 | $ | — | $ | 17,562.2 | |||||||
Other adjustments | (1.0 | ) | — | — | (1.0 | ) | |||||||||
Balance as of December 31, 2016 | 11,817.9 | 5,743.3 | — | 17,561.2 | |||||||||||
Acquisitions | — | 1,658.5 | 11.5 | 1,670.0 | |||||||||||
Balance as of December 31, 2017 | $ | 11,817.9 | $ | 7,401.8 | $ | 11.5 | $ | 19,231.2 | |||||||
Accumulated impairment as of December 31, 2017 | $ | (41.0 | ) | $ | — | $ | — | $ | (41.0 | ) |
Commercial & Specialty Business | Government Business | Total | |||||||||
Gross medical claims payable, beginning of year | $ | 3,267.0 | $ | 4,625.6 | $ | 7,892.6 | |||||
Ceded medical claims payable, beginning of year | (521.3 | ) | (17.8 | ) | (539.1 | ) | |||||
Net medical claims payable, beginning of year | 2,745.7 | 4,607.8 | 7,353.5 | ||||||||
Business combinations and purchase adjustments | — | 75.8 | 75.8 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 29,722.1 | 42,150.2 | 71,872.3 | ||||||||
Prior years redundancies | (462.7 | ) | (701.9 | ) | (1,164.6 | ) | |||||
Total net incurred medical claims | 29,259.4 | 41,448.3 | 70,707.7 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 26,481.8 | 37,767.9 | 64,249.7 | ||||||||
Prior years medical claims | 2,194.7 | 3,806.0 | 6,000.7 | ||||||||
Total net payments | 28,676.5 | 41,573.9 | 70,250.4 | ||||||||
Net medical claims payable, end of year | 3,328.6 | 4,558.0 | 7,886.6 | ||||||||
Ceded medical claims payable, end of year | 78.0 | 26.9 | 104.9 | ||||||||
Gross medical claims payable, end of year | $ | 3,406.6 | $ | 4,584.9 | $ | 7,991.5 |
Commercial & Specialty Business | Government Business | Total | |||||||||
Gross medical claims payable, beginning of year | $ | 3,396.1 | $ | 4,173.7 | $ | 7,569.8 | |||||
Ceded medical claims payable, beginning of year | (635.7 | ) | (9.9 | ) | (645.6 | ) | |||||
Net medical claims payable, beginning of year | 2,760.4 | 4,163.8 | 6,924.2 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 27,797.3 | 38,574.1 | 66,371.4 | ||||||||
Prior years redundancies | (466.5 | ) | (383.9 | ) | (850.4 | ) | |||||
Total net incurred medical claims | 27,330.8 | 38,190.2 | 65,521.0 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 25,119.3 | 34,037.3 | 59,156.6 | ||||||||
Prior years medical claims | 2,226.2 | 3,708.9 | 5,935.1 | ||||||||
Total net payments | 27,345.5 | 37,746.2 | 65,091.7 | ||||||||
Net medical claims payable, end of year | 2,745.7 | 4,607.8 | 7,353.5 | ||||||||
Ceded medical claims payable, end of year | 521.3 | 17.8 | 539.1 | ||||||||
Gross medical claims payable, end of year | $ | 3,267.0 | $ | 4,625.6 | $ | 7,892.6 |
Commercial & Specialty Business | Government Business | Total | |||||||||
Gross medical claims payable, beginning of year | $ | 3,541.4 | $ | 3,319.8 | $ | 6,861.2 | |||||
Ceded medical claims payable, beginning of year | (762.5 | ) | (4.9 | ) | (767.4 | ) | |||||
Net medical claims payable, beginning of year | 2,778.9 | 3,314.9 | 6,093.8 | ||||||||
Business combinations and purchase adjustments | — | 121.8 | 121.8 | ||||||||
Net incurred medical claims: | |||||||||||
Current year | 26,798.5 | 33,909.9 | 60,708.4 | ||||||||
Prior years redundancies | (480.3 | ) | (319.9 | ) | (800.2 | ) | |||||
Total net incurred medical claims | 26,318.2 | 33,590.0 | 59,908.2 | ||||||||
Net payments attributable to: | |||||||||||
Current year medical claims | 24,145.7 | 29,922.0 | 54,067.7 | ||||||||
Prior years medical claims | 2,191.0 | 2,940.9 | 5,131.9 | ||||||||
Total net payments | 26,336.7 | 32,862.9 | 59,199.6 | ||||||||
Net medical claims payable, end of year | 2,760.4 | 4,163.8 | 6,924.2 | ||||||||
Ceded medical claims payable, end of year | 635.7 | 9.9 | 645.6 | ||||||||
Gross medical claims payable, end of year | $ | 3,396.1 | $ | 4,173.7 | $ | 7,569.8 |
2017 | 2016 | 2015 | |||||||||
Pension Benefits | |||||||||||
Service cost | $ | 10.1 | $ | 11.6 | $ | 13.1 | |||||
Interest cost | 66.3 | 68.5 | 68.2 | ||||||||
Expected return on assets | (147.6 | ) | (147.1 | ) | (143.2 | ) | |||||
Recognized actuarial loss | 21.8 | 19.0 | 25.7 | ||||||||
Amortization of prior service credit | (0.4 | ) | (0.6 | ) | (0.6 | ) | |||||
Settlement loss | 7.4 | 7.3 | 6.5 | ||||||||
Net periodic benefit credit | $ | (42.4 | ) | $ | (41.3 | ) | $ | (30.3 | ) | ||
Other Benefits | |||||||||||
Service cost | $ | 1.4 | $ | 1.6 | $ | 2.1 | |||||
Interest cost | 20.8 | 22.4 | 23.4 | ||||||||
Expected return on assets | (22.6 | ) | (22.4 | ) | (23.7 | ) | |||||
Recognized actuarial loss | 11.4 | 12.4 | 15.3 | ||||||||
Amortization of prior service credit | (13.6 | ) | (13.8 | ) | (14.4 | ) | |||||
Net periodic (benefit credit) benefit cost | $ | (2.6 | ) | $ | 0.2 | $ | 2.7 |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net actuarial loss | $ | 624.7 | $ | 655.8 | $ | 77.5 | $ | 146.6 | |||||||
Prior service cost (credit) | 1.0 | 0.5 | (46.1 | ) | (59.7 | ) | |||||||||
Net amount before tax at December 31 | $ | 625.7 | $ | 656.3 | $ | 31.4 | $ | 86.9 |
Type of Non-hedging Derivatives | Income Statement Location of (Loss) Gain Recognized | Derivative (Loss) Gain Recognized | ||||
Year ended December 31, 2017 | ||||||
Interest rate swaps | Net realized gains on financial instruments | $ | (9.2 | ) | ||
Options | Net realized gains on financial instruments | (35.6 | ) | |||
Futures | Net realized gains on financial instruments | (3.5 | ) | |||
Total | $ | (48.3 | ) | |||
Year ended December 31, 2016 | ||||||
Interest rate swaps | Net realized gains on financial instruments | $ | 0.2 | |||
Options | Net realized gains on financial instruments | (209.1 | ) | |||
Futures | Net realized gains on financial instruments | 1.4 | ||||
Total | $ | (207.5 | ) | |||
Year ended December 31, 2015 | ||||||
Derivatives embedded in convertible fixed maturity securities | Net realized gains on financial instruments | $ | (22.2 | ) | ||
Interest rate swaps | Net realized gains on financial instruments | (1.9 | ) | |||
Options | Net realized gains on financial instruments | 34.6 | ||||
Futures | Net realized gains on financial instruments | (0.1 | ) | |||
Total | $ | 10.4 |
For the Quarter Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
2017 | |||||||||||||||
Total revenues | $ | 22,525.9 | $ | 22,407.2 | $ | 22,426.0 | $ | 22,680.3 | |||||||
Income before income tax expense | 1,515.0 | 1,205.7 | 1,118.9 | 124.2 | |||||||||||
Net income | 1,009.9 | 855.3 | 746.9 | 1,230.7 | |||||||||||
Basic net income per share | $ | 3.82 | $ | 3.23 | $ | 2.87 | $ | 4.80 | |||||||
Diluted net income per share | 3.73 | 3.16 | 2.80 | 4.67 | |||||||||||
2016 | |||||||||||||||
Total revenues | $ | 20,288.5 | $ | 21,456.2 | $ | 21,403.9 | $ | 21,714.4 | |||||||
Income before income tax expense | 1,312.0 | 1,448.3 | 1,136.5 | 658.6 | |||||||||||
Net income | 703.0 | 780.6 | 617.8 | 368.4 | |||||||||||
Basic net income per share | $ | 2.69 | $ | 2.97 | $ | 2.35 | $ | 1.40 | |||||||
Diluted net income per share | 2.63 | 2.91 | 2.30 | 1.37 |
Commercial & Specialty Business | Government Business | Other | Total | ||||||||||||
Year ended December 31, 2017 | |||||||||||||||
Operating revenue | $ | 40,754.1 | $ | 48,276.2 | $ | 30.9 | $ | 89,061.2 | |||||||
Operating gain (loss) | 2,876.1 | 1,430.2 | (130.9 | ) | 4,175.4 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 601.0 | 601.0 | |||||||||||
Year ended December 31, 2016 | |||||||||||||||
Operating revenue | $ | 38,692.1 | $ | 45,477.7 | $ | 24.2 | $ | 84,194.0 | |||||||
Operating gain (loss) | 3,195.2 | 1,784.3 | (177.8 | ) | 4,801.7 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 576.0 | 576.0 | |||||||||||
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 |
Number of Shares | Weighted-Average Option Price per Share | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2017 | 5.6 | $ | 102.80 | |||||||||
Granted | 1.1 | 167.57 | ||||||||||
Exercised | (2.2 | ) | 89.88 | |||||||||
Forfeited or expired | (0.2 | ) | 142.51 | |||||||||
Outstanding at December 31, 2017 | 4.3 | 124.31 | 6.15 | $ | 433.0 | |||||||
Exercisable at December 31, 2017 | 2.6 | 107.07 | 4.72 | $ | 312.3 |
2017 | 2016 | 2015 | ||||||
Risk-free interest rate | 2.31 | % | 1.76 | % | 1.96 | % | ||
Volatility factor | 32.00 | % | 32.00 | % | 31.00 | % | ||
Dividend yield (annual) | 1.60 | % | 2.00 | % | 1.70 | % | ||
Weighted-average expected life (years) | 4.00 | 4.10 | 4.00 |
Restricted Stock Shares and Units | Weighted-Average Grant Date Fair Value per Share | |||||
Nonvested at January 1, 2017 | 2.1 | $ | 127.68 | |||
Granted | 0.8 | 174.44 | ||||
Vested | (0.8 | ) | 110.39 | |||
Forfeited | (0.1 | ) | 148.77 | |||
Nonvested at December 31, 2017 | 2.0 | 152.20 |
January 1, 2018 through February 9, 2018 | Year Ended December 31, 2017 | ||||||
Shares repurchased | 0.7 | 10.5 | |||||
Average price per share | $ | 237.35 | $ | 189.93 | |||
Aggregate cost | $ | 156.6 | $ | 1,997.7 | |||
Authorization remaining at end of year | $ | 7,021.5 | $ | 7,178.1 |
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, 2017 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 36 | $ | 450.4 | $ | (5.0 | ) | 11 | $ | 56.1 | $ | (0.7 | ) | |||||||||
Government sponsored securities | 12 | 16.3 | (0.1 | ) | 16 | 14.8 | (0.4 | ) | |||||||||||||
States, municipalities and political subdivisions, tax-exempt | 414 | 641.4 | (5.0 | ) | 189 | 355.5 | (7.3 | ) | |||||||||||||
Corporate securities | 1,081 | 2,200.1 | (30.2 | ) | 279 | 329.7 | (12.6 | ) | |||||||||||||
Residential mortgage-backed securities | 445 | 1,050.3 | (8.0 | ) | 287 | 478.0 | (11.6 | ) | |||||||||||||
Commercial mortgage-backed securities | 7 | 13.7 | (0.1 | ) | 12 | 27.2 | (2.0 | ) | |||||||||||||
Other securities | 132 | 406.1 | (2.4 | ) | 20 | 35.8 | (1.5 | ) | |||||||||||||
Total fixed maturity securities | 2,127 | 4,778.3 | (50.8 | ) | 814 | 1,297.1 | (36.1 | ) | |||||||||||||
Equity securities | 386 | 1,070.5 | (18.0 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 2,513 | $ | 5,848.8 | $ | (68.8 | ) | 814 | $ | 1,297.1 | $ | (36.1 | ) | |||||||||
December 31, 2016 | |||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||
United States Government securities | 51 | $ | 359.9 | $ | (5.7 | ) | — | $ | — | $ | — | ||||||||||
Government sponsored securities | 18 | 26.4 | (0.3 | ) | 1 | 1.0 | (0.1 | ) | |||||||||||||
States, municipalities and political subdivisions, tax-exempt | 1,022 | 1,849.0 | (55.2 | ) | 28 | 60.7 | (3.2 | ) | |||||||||||||
Corporate securities | 1,272 | 2,640.6 | (49.5 | ) | 203 | 422.8 | (27.1 | ) | |||||||||||||
Residential mortgage-backed securities | 430 | 905.8 | (15.3 | ) | 114 | 136.9 | (4.6 | ) | |||||||||||||
Commercial mortgage-backed securities | 19 | 61.2 | (0.3 | ) | 24 | 60.8 | (3.4 | ) | |||||||||||||
Other securities | 66 | 144.3 | (1.5 | ) | 55 | 133.8 | (4.0 | ) | |||||||||||||
Total fixed maturity securities | 2,878 | 5,987.2 | (127.8 | ) | 425 | 816.0 | (42.4 | ) | |||||||||||||
Equity securities | 452 | 233.1 | (10.7 | ) | — | — | — | ||||||||||||||
Total fixed maturity and equity securities | 3,330 | $ | 6,220.3 | $ | (138.5 | ) | 425 | $ | 816.0 | $ | (42.4 | ) |
Commercial & Specialty Business | Government Business | Other | Total | ||||||||||||
Year ended December 31, 2017 | |||||||||||||||
Operating revenue | $ | 40,754.1 | $ | 48,276.2 | $ | 30.9 | $ | 89,061.2 | |||||||
Operating gain (loss) | 2,876.1 | 1,430.2 | (130.9 | ) | 4,175.4 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 601.0 | 601.0 | |||||||||||
Year ended December 31, 2016 | |||||||||||||||
Operating revenue | $ | 38,692.1 | $ | 45,477.7 | $ | 24.2 | $ | 84,194.0 | |||||||
Operating gain (loss) | 3,195.2 | 1,784.3 | (177.8 | ) | 4,801.7 | ||||||||||
Depreciation and amortization of property and equipment | — | — | 576.0 | 576.0 | |||||||||||
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 |
2017 | 2016 | 2015 | |||||||||
Commercial & Specialty Business | |||||||||||
Managed care products | $ | 34,272.1 | $ | 32,369.8 | $ | 31,676.9 | |||||
Managed care services | 4,821.0 | 4,710.1 | 4,344.8 | ||||||||
Dental/Vision products and services | 1,218.1 | 1,182.3 | 1,111.7 | ||||||||
Other | 442.9 | 429.9 | 437.4 | ||||||||
Total Commercial & Specialty Business | 40,754.1 | 38,692.1 | 37,570.8 | ||||||||
Government Business | |||||||||||
Managed care products | 47,843.4 | 45,028.5 | 40,307.0 | ||||||||
Managed care services | 432.8 | 449.2 | 506.0 | ||||||||
Total Government Business | 48,276.2 | 45,477.7 | 40,813.0 | ||||||||
Other | |||||||||||
Other | 30.9 | 24.2 | 21.0 | ||||||||
Total product revenues | $ | 89,061.2 | $ | 84,194.0 | $ | 78,404.8 |
2017 | 2016 | 2015 | |||||||||
Reportable segments operating revenues | $ | 89,061.2 | $ | 84,194.0 | $ | 78,404.8 | |||||
Net investment income | 866.5 | 779.5 | 677.6 | ||||||||
Net realized gains on financial instruments | 144.8 | 4.9 | 157.5 | ||||||||
Other-than-temporary impairment losses recognized in income | (33.1 | ) | (115.4 | ) | (83.4 | ) | |||||
Total revenues | $ | 90,039.4 | $ | 84,863.0 | $ | 79,156.5 |
2017 | 2016 | 2015 | |||||||||
Reportable segments operating gain | $ | 4,175.4 | $ | 4,801.7 | $ | 4,753.1 | |||||
Net investment income | 866.5 | 779.5 | 677.6 | ||||||||
Net realized gains on financial instruments | 144.8 | 4.9 | 157.5 | ||||||||
Other-than-temporary impairment losses recognized in income | (33.1 | ) | (115.4 | ) | (83.4 | ) | |||||
Interest expense | (739.0 | ) | (723.0 | ) | (653.0 | ) | |||||
Amortization of other intangible assets | (168.4 | ) | (192.3 | ) | (230.1 | ) | |||||
(Loss) gain on extinguishment of debt | (282.4 | ) | — | 9.3 | |||||||
Income before income tax expense | $ | 3,963.8 | $ | 4,555.4 | $ | 4,631.0 |
2017 | 2016 | 2015 | |||||||||
Options granted during the year | $ | 40.88 | $ | 30.56 | $ | 33.97 | |||||
Restricted stock awards granted during the year | 174.44 | 131.81 | 147.00 |
Commercial & Specialty Business | Cumulative Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 29,097.0 | $ | 28,630.5 | $ | 28,581.0 | ||||||
2016 | 27,797.3 | 27,384.1 | ||||||||||
2017 | 29,722.1 | |||||||||||
Total | $ | 85,687.2 |
Commercial & Specialty Business | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 26,336.7 | $ | 28,562.8 | $ | 28,546.9 | ||||||
2016 | 25,119.3 | 27,329.9 | ||||||||||
2017 | 26,481.8 | |||||||||||
Total | $ | 82,358.6 |
Government Business | Cumulative Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 37,026.7 | $ | 36,642.9 | $ | 36,594.3 | ||||||
2016 | 38,574.1 | 37,920.8 | ||||||||||
2017 | 42,226.0 | |||||||||||
Total | $ | 116,741.1 |
Government Business | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||
Claim Year | 2015 | 2016 | 2017 | |||||||||
2015 & Prior | $ | 32,862.9 | $ | 36,572.0 | $ | 36,572.0 | ||||||
2016 | 34,037.3 | 37,843.2 | ||||||||||
2017 | 37,767.9 | |||||||||||
Total | $ | 112,183.1 |
Commercial & Specialty Business | Government Business | Total | |||||||||
Cumulative incurred claims and allocated claim adjustment expenses, net of reinsurance | $ | 85,687.2 | $ | 116,741.1 | $ | 202,428.3 | |||||
Less: cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 82,358.6 | 112,183.1 | 194,541.7 | ||||||||
Net medical claims payable, end of year | 3,328.6 | 4,558.0 | 7,886.6 | ||||||||
Ceded medical claims payable, end of year | 78.0 | 26.9 | 104.9 | ||||||||
Gross medical claims payable, end of year | $ | 3,406.6 | $ | 4,584.9 | $ | 7,991.5 |
Number of Shares | Weighted-Average Option Price per Share | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2017 | 5.6 | $ | 102.80 | |||||||||
Granted | 1.1 | 167.57 | ||||||||||
Exercised | (2.2 | ) | 89.88 | |||||||||
Forfeited or expired | (0.2 | ) | 142.51 | |||||||||
Outstanding at December 31, 2017 | 4.3 | 124.31 | 6.15 | $ | 433.0 | |||||||
Exercisable at December 31, 2017 | 2.6 | 107.07 | 4.72 | $ | 312.3 |
Restricted Stock Shares and Units | Weighted-Average Grant Date Fair Value per Share | |||||
Nonvested at January 1, 2017 | 2.1 | $ | 127.68 | |||
Granted | 0.8 | 174.44 | ||||
Vested | (0.8 | ) | 110.39 | |||
Forfeited | (0.1 | ) | 148.77 | |||
Nonvested at December 31, 2017 | 2.0 | 152.20 |
2017 | 2016 | 2015 | ||||||
Risk-free interest rate | 2.31 | % | 1.76 | % | 1.96 | % | ||
Volatility factor | 32.00 | % | 32.00 | % | 31.00 | % | ||
Dividend yield (annual) | 1.60 | % | 2.00 | % | 1.70 | % | ||
Weighted-average expected life (years) | 4.00 | 4.10 | 4.00 |
2017 | 2016 | 2015 | |||||||||
Options granted during the year | $ | 40.88 | $ | 30.56 | $ | 33.97 | |||||
Restricted stock awards granted during the year | 174.44 | 131.81 | 147.00 |
Declaration Date | Record Date | Payment Date | Cash Dividend per Share | Total | ||||||||
Year ended December 31, 2017 | ||||||||||||
February 22, 2017 | March 10, 2017 | March 24, 2017 | $ | 0.65 | $ | 172.2 | ||||||
April 27, 2017 | June 9, 2017 | June 23, 2017 | 0.65 | 171.8 | ||||||||
July 25, 2017 | September 8, 2017 | September 25, 2017 | 0.70 | 181.4 | ||||||||
October 24, 2017 | December 5, 2017 | December 21, 2017 | 0.70 | 179.5 | ||||||||
Year ended December 31, 2016 | ||||||||||||
February 18, 2016 | March 10, 2016 | March 25, 2016 | $ | 0.65 | $ | 170.7 | ||||||
April 26, 2016 | June 10, 2016 | June 24, 2016 | 0.65 | 170.9 | ||||||||
July 26, 2016 | September 9, 2016 | September 26, 2016 | 0.65 | 171.1 | ||||||||
November 1, 2016 | December 5, 2016 | December 21, 2016 | 0.65 | 171.3 |
January 1, 2018 through February 9, 2018 | Year Ended December 31, 2017 | ||||||
Shares repurchased | 0.7 | 10.5 | |||||
Average price per share | $ | 237.35 | $ | 189.93 | |||
Aggregate cost | $ | 156.6 | $ | 1,997.7 | |||
Authorization remaining at end of year | $ | 7,021.5 | $ | 7,178.1 |
2017 | 2016 | ||||||
Balance at January 1 | $ | 131.1 | $ | 212.0 | |||
Additions based on: | |||||||
Tax positions related to current year | 2.6 | — | |||||
Tax positions related to prior years | 83.4 | 13.9 | |||||
Reductions based on: | |||||||
Tax positions related to current year | — | (1.1 | ) | ||||
Tax positions related to prior years | (18.5 | ) | (88.4 | ) | |||
Settlements with taxing authorities | (9.0 | ) | (5.3 | ) | |||
Balance at December 31 | $ | 189.6 | $ | 131.1 |
2017 | 2016 | 2015 | |||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||
Direct | $ | 83,974.3 | $ | 83,417.8 | $ | 78,200.4 | $ | 78,726.2 | $ | 72,925.5 | $ | 73,259.2 | |||||||||||
Assumed | 274.6 | 274.6 | 217.4 | 217.3 | 221.8 | 221.9 | |||||||||||||||||
Ceded | (43.7 | ) | (44.7 | ) | (79.8 | ) | (83.4 | ) | (95.8 | ) | (96.0 | ) | |||||||||||
Net premiums | $ | 84,205.2 | $ | 83,647.7 | $ | 78,338.0 | $ | 78,860.1 | $ | 73,051.5 | $ | 73,385.1 | |||||||||||
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 | $ | 16.3 | $ | — | $ | 6.1 | $ | — | $ | 22.4 | |||||||||
Corporate securities | 368.6 | — | — | — | 368.6 | ||||||||||||||
Equity securities | 63.4 | — | — | — | 63.4 | ||||||||||||||
Total | $ | 448.3 | $ | — | $ | 6.1 | $ | — | $ | 454.4 |