XML 31 R33.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Fair Values of Financial Instruments (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2014
Fair Value Disclosures [Abstract] |
Carrying Amount and Fair Value of Financial Instruments | Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, and securities lending agreements approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart.
| December 31, 2014 |  | December 31, 2013
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
| (in millions of dollars)
Assets |  |  |  |  |  |  |
Fixed Maturity Securities | $ | 45,064.9 |  |  | $ | 45,064.9 |  |  | $ | 42,344.4 |  |  | $ | 42,344.4 |
Mortgage Loans | 1,856.6 |  |  | 2,024.2 |  |  | 1,815.1 |  |  | 1,980.2 |
Policy Loans | 3,306.6 |  |  | 3,407.6 |  |  | 3,276.0 |  |  | 3,339.6 |
Other Long-term Investments |  |  |  |  |  |  |
Derivatives | 28.0 |  |  | 28.0 |  |  | 10.8 |  |  | 10.8 |
Equity Securities | 12.5 |  |  | 12.5 |  |  | 16.4 |  |  | 16.4 |
Miscellaneous Long-term Investments | 485.5 |  |  | 485.5 |  |  | 475.2 |  |  | 475.2 |
Liabilities |  |  |  |  |  |  |
Policyholders' Funds |  |  |  |  |  |  |
Deferred Annuity Products | $ | 621.4 |  |  | $ | 621.4 |  |  | $ | 631.5 |  |  | $ | 631.5 |
Supplementary Contracts without Life Contingencies | 600.4 |  |  | 600.4 |  |  | 563.1 |  |  | 563.1 |
Short-term Debt | 151.9 |  |  | 158.9 |  |  | — |  |  | — |
Long-term Debt | 2,628.7 |  |  | 2,912.6 |  |  | 2,612.0 |  |  | 2,824.4 |
Other Liabilities |  |  |  |  |  |  |
Derivatives | 92.9 |  |  | 92.9 |  |  | 135.6 |  |  | 135.6 |
Embedded Derivative in Modified Coinsurance Arrangement | 49.9 |  |  | 49.9 |  |  | 53.2 |  |  | 53.2 |
Unfunded Commitments to Investment Partnerships | 12.8 |  |  | 12.8 |  |  | 27.2 |  |  | 27.2 |
Fair Values by Fair Value Hierarchy Input Level | Fair value measurements by input level for financial instruments carried at fair value are as follows:
| December 31, 2014
| Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
| (in millions of dollars)
Assets |  |  |  |  |  |  |
Fixed Maturity Securities |  |  |  |  |  |  |
United States Government and Government Agencies and Authorities | $ | 297.5 |  |  | $ | 941.0 |  |  | $ | — |  |  | $ | 1,238.5 |
States, Municipalities, and Political Subdivisions | — |  |  | 1,981.4 |  |  | 140.1 |  |  | 2,121.5 |
Foreign Governments | — |  |  | 1,238.1 |  |  | 69.3 |  |  | 1,307.4 |
Public Utilities | 106.2 |  |  | 8,129.4 |  |  | 315.0 |  |  | 8,550.6 |
Mortgage/Asset-Backed Securities | — |  |  | 2,431.8 |  |  | — |  |  | 2,431.8 |
All Other Corporate Bonds | 2,556.6 |  |  | 25,383.3 |  |  | 1,425.3 |  |  | 29,365.2 |
Redeemable Preferred Stocks | — |  |  | 25.0 |  |  | 24.9 |  |  | 49.9 |
Total Fixed Maturity Securities | 2,960.3 |  |  | 40,130.0 |  |  | 1,974.6 |  |  | 45,064.9 |
Other Long-term Investments |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |
Interest Rate Swaps | — |  |  | 5.7 |  |  | — |  |  | 5.7 |
Foreign Exchange Contracts | — |  |  | 22.3 |  |  | — |  |  | 22.3 |
Total Derivatives | — |  |  | 28.0 |  |  | — |  |  | 28.0 |
Equity Securities | — |  |  | 11.1 |  |  | 1.4 |  |  | 12.5 |
Liabilities |  |  |  |  |  |  |
Other Liabilities |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |
Interest Rate Swaps | $ | — |  |  | $ | 20.8 |  |  | $ | — |  |  | $ | 20.8 |
Foreign Exchange Contracts | — |  |  | 70.9 |  |  | — |  |  | 70.9 |
Credit Default Swaps | — |  |  | 1.2 |  |  | — |  |  | 1.2 |
Embedded Derivative in Modified Coinsurance Arrangement | — |  |  | — |  |  | 49.9 |  |  | 49.9 |
Total Derivatives | — |  |  | 92.9 |  |  | 49.9 |  |  | 142.8 |
| December 31, 2013
| Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
| (in millions of dollars)
Assets |  |  |  |  |  |  |
Fixed Maturity Securities |  |  |  |  |  |  |
United States Government and Government Agencies and Authorities | $ | 144.5 |  |  | $ | 1,051.6 |  |  | $ | — |  |  | $ | 1,196.1 |
States, Municipalities, and Political Subdivisions | — |  |  | 1,608.1 |  |  | 175.1 |  |  | 1,783.2 |
Foreign Governments | — |  |  | 1,294.7 |  |  | 78.5 |  |  | 1,373.2 |
Public Utilities | 246.0 |  |  | 7,611.9 |  |  | 139.3 |  |  | 7,997.2 |
Mortgage/Asset-Backed Securities | — |  |  | 2,038.8 |  |  | 0.5 |  |  | 2,039.3 |
All Other Corporate Bonds | 2,132.8 |  |  | 23,861.6 |  |  | 1,923.3 |  |  | 27,917.7 |
Redeemable Preferred Stocks | — |  |  | 13.9 |  |  | 23.8 |  |  | 37.7 |
Total Fixed Maturity Securities | 2,523.3 |  |  | 37,480.6 |  |  | 2,340.5 |  |  | 42,344.4 |
Other Long-term Investments |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |
Interest Rate Swaps | — |  |  | 9.2 |  |  | — |  |  | 9.2 |
Foreign Exchange Contracts | — |  |  | 1.6 |  |  | — |  |  | 1.6 |
Total Derivatives | — |  |  | 10.8 |  |  | — |  |  | 10.8 |
Equity Securities | — |  |  | 11.8 |  |  | 4.6 |  |  | 16.4 |
Liabilities |  |  |  |  |  |  |
Other Liabilities |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |
Interest Rate Swaps | $ | — |  |  | $ | 35.0 |  |  | $ | — |  |  | $ | 35.0 |
Foreign Exchange Contracts | — |  |  | 98.7 |  |  | — |  |  | 98.7 |
Credit Default Swaps | — |  |  | 1.9 |  |  | — |  |  | 1.9 |
Embedded Derivative in Modified Coinsurance Arrangement | — |  |  | — |  |  | 53.2 |  |  | 53.2 |
Total Derivatives | — |  |  | 135.6 |  |  | 53.2 |  |  | 188.8 |
Transfers of Assets between Level 1 and Level 2 | Transfers of assets between Level 1 and Level 2 are as follows:
| Year Ended December 31
| 2014 |  | 2013
| Transfers into
| Level 1 from Level 2 |  | Level 2 from Level 1 |  | Level 1 from Level 2 |  | Level 2 from Level 1
| (in millions of dollars)
Fixed Maturity Securities |  |  |  |  |  |  |
United States Government and Government Agencies and Authorities | $ | 163.2 |  |  | $ | — |  |  | $ | 62.2 |  |  | $ | — |
States, Municipalities, and Political Subdivisions | — |  |  | — |  |  | — |  |  | 53.0 |
Public Utilities | 81.8 |  |  | 253.4 |  |  | 248.4 |  |  | 20.8 |
All Other Corporate Bonds | 1,592.1 |  |  | 1,598.3 |  |  | 1,296.5 |  |  | 1,117.9 |
Total Fixed Maturity Securities | $ | 1,837.1 |  |  | $ | 1,851.7 |  |  | $ | 1,607.1 |  |  | $ | 1,191.7 |
Transfers between Level 1 and Level 2 occurred due to the change in availability of either a TRACE or broker market maker price. Depending on current market conditions, the availability of these Level 1 prices can vary from period to period. For fair value measurements of financial instruments that were transferred either into or out of Level 1 or 2, we reflect the transfers using the fair value at the beginning of the period.
Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs | Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
| Year Ended December 31, 2014
|  |  | Total Realized and Unrealized Investment Gains (Losses) Included in |  |  |  |  |  |  |  |  |  |
| Beginning of Year |  | Earnings |  | Other Comprehensive Income or Loss |  | Purchases |  | Sales |  | Level 3 Transfers |  | End of Year
| Into |  | Out of |
| (in millions of dollars)
Fixed Maturity Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States, Municipalities, and Political Subdivisions | $ | 175.1 |  |  | $ | — |  |  | $ | 21.0 |  |  | $ | — |  |  | $ | (1.4 | ) |  | $ | — |  |  | $ | (54.6 | ) |  | $ | 140.1 |
Foreign Governments | 78.5 |  |  | 1.1 |  |  | 0.8 |  |  | — |  |  | (11.1 | ) |  | — |  |  | — |  |  | 69.3 |
Public Utilities | 139.3 |  |  | — |  |  | 6.9 |  |  | — |  |  | (0.8 | ) |  | 199.9 |  |  | (30.3 | ) |  | 315.0 |
Mortgage/Asset-Backed Securities | 0.5 |  |  | (0.2 | ) |  | 0.3 |  |  | — |  |  | (0.6 | ) |  | — |  |  | — |  |  | — |
All Other Corporate Bonds | 1,923.3 |  |  | 0.7 |  |  | 44.8 |  |  | 91.1 |  |  | (147.7 | ) |  | 626.9 |  |  | (1,113.8 | ) |  | 1,425.3 |
Redeemable Preferred Stocks | 23.8 |  |  | — |  |  | 1.1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24.9 |
Total Fixed Maturity Securities | 2,340.5 |  |  | 1.6 |  |  | 74.9 |  |  | 91.1 |  |  | (161.6 | ) |  | 826.8 |  |  | (1,198.7 | ) |  | 1,974.6 |
Equity Securities | 4.6 |  |  | 10.5 |  |  | (0.2 | ) |  | — |  |  | (13.5 | ) |  | — |  |  | — |  |  | 1.4 |
Embedded Derivative in Modified Coinsurance Arrangement | (53.2 | ) |  | 3.3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (49.9 | )
| Year Ended December 31, 2013
|  |  | Total Realized and Unrealized Investment Gains (Losses) Included in |  |  |  |  |  |  |  |  |  |
| Beginning of Year |  | Earnings |  | Other Comprehensive Income or Loss |  | Purchases |  | Sales |  | Level 3 Transfers |  | End of Year
| Into |  | Out of |
| (in millions of dollars)
Fixed Maturity Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States, Municipalities, and Political Subdivisions | $ | 128.7 |  |  | $ | — |  |  | $ | (13.1 | ) |  | $ | — |  |  | $ | (1.0 | ) |  | $ | 60.5 |  |  | $ | — |  |  | $ | 175.1 |
Foreign Governments | 82.1 |  |  | — |  |  | (3.6 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | 78.5 |
Public Utilities | 226.4 |  |  | — |  |  | (1.1 | ) |  | — |  |  | (3.1 | ) |  | 101.9 |  |  | (184.8 | ) |  | 139.3 |
Mortgage/Asset-Backed Securities | 0.5 |  |  | — |  |  | 0.1 |  |  | — |  |  | (0.1 | ) |  | — |  |  | — |  |  | 0.5 |
All Other Corporate Bonds | 1,525.8 |  |  | 1.1 |  |  | (156.8 | ) |  | 186.7 |  |  | (122.0 | ) |  | 1,511.9 |  |  | (1,023.4 | ) |  | 1,923.3 |
Redeemable Preferred Stocks | 24.8 |  |  | — |  |  | (1.0 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | 23.8 |
Total Fixed Maturity Securities | 1,988.3 |  |  | 1.1 |  |  | (175.5 | ) |  | 186.7 |  |  | (126.2 | ) |  | 1,674.3 |  |  | (1,208.2 | ) |  | 2,340.5 |
Equity Securities | 4.3 |  |  | — |  |  | 0.3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4.6 |
Embedded Derivative in Modified Coinsurance Arrangement | (83.9 | ) |  | 30.7 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (53.2 | )
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains for the years ended December 31, 2014 and 2013 which are included in earnings and are attributable to the change in unrealized gains or losses relating to assets or liabilities valued using significant unobservable inputs and still held at each year end were $3.3 million and $30.7 million, respectively. These amounts relate entirely to the changes in fair value of an embedded derivative in a modified coinsurance arrangement which are reported as realized investment gains and losses.
Quantitative Information Regarding Significant Unobservable Inputs | The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
| December 31, 2014
| Fair Value |  | Unobservable Input |  | Range/Weighted Average
| (in millions of dollars)
Fixed Maturity Securities |  |  |  |  |
States, Municipalities, and Political Subdivisions - Private | $ | 101.0 |  |  | - Comparability Adjustment | (b) | 0.25% - 1.00% / 0.71%
All Other Corporate Bonds - Private | 432.8 |  |  | - Comparability Adjustment - Discount for Size - Lack of Marketability - Volatility of Credit - Market Convention | (b) (c) (d) (e) (f) | 0.50% - 0.70% / 0.60% 0.50% - 0.50% / 0.50% 0.48% - 0.48% / 0.48% 0.20% - 2.00% / 0.64% Priced at Par
All Other Corporate Bonds - Public | 128.7 |  |  | - Comparability Adjustment - Lack of Marketability - Volatility of Credit | (b) (d) (e) | 0.10% - 0.50% / 0.40% 0.20% - 0.35% / 0.29% (0.30)% - 0.50% / (0.05)%
Equity Securities - Private | 1.1 |  |  | - Market Convention | (f) | Priced at Cost or Owner's Equity
Embedded Derivative in Modified Coinsurance Arrangement | (49.9 | ) |  | - Projected Liability Cash Flows | (g) | Actuarial Assumptions
| December 31, 2013
| Fair Value |  | Unobservable Input |  | Range/Weighted Average
| (in millions of dollars)
Fixed Maturity Securities |  |  |  |  |
States, Municipalities, and Political Subdivisions - Private | $ | 142.7 |  |  | - Comparability Adjustment | (b) | 0.25% - 1.25% / 0.65%
Mortgage/Asset-Backed Securities - Private | 0.5 |  |  | - Discount for Size | (c) | 4.93% - 5.03% / 5.01%
All Other Corporate Bonds - Private | 371.3 |  |  | - Change in Benchmark Reference - Comparability Adjustment - Discount for Size - Lack of Marketability - Volatility of Credit - Market Convention | (a) (b) (c) (d) (e) (f) | 3.36% - 3.36% / 3.36% (0.70)% - (0.40)% / (0.60)% 0.50% - 0.50% / 0.50% 0.20% - 1.00% / 0.55% 0.07% - 4.00% / 0.85% Priced at Par
All Other Corporate Bonds - Public | 514.4 |  |  | - Change in Benchmark Reference - Comparability Adjustment - Lack of Marketability - Volatility of Credit | (a) (b) (d) (e) | (0.32)% - 0.25% / 0.04% (0.23)% - 1.00% / 0.41% 0.20% - 0.20% / 0.20% (0.88)% - 0.46% / (0.26)%
Equity Securities - Private | 4.2 |  |  | - Market Convention | (f) | Priced at Cost or Owner's Equity
Embedded Derivative in Modified Coinsurance Arrangement | (53.2 | ) |  | - Projected Liability Cash Flows | (g) | Actuarial Assumptions
(a) | Represents basis point adjustments for changes in benchmark spreads associated with various ratings categories
(b) | Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors
(c) | Represents basis point adjustments based on issue/issuer size relative to the benchmark
(d) | Represents basis point adjustments to apply a discount due to the illiquidity of an investment
(e) | Represents basis point adjustments for credit-specific factors
(f) | Represents a decision to price based on par value, cost, or owner's equity when limited data is available
(g) | Represents various actuarial assumptions required to derive the liability cash flows including incidence, termination, and lapse rates

X
- Definition Disclosure of the transfers between Level 1 and Level 2 during the period. + References No definition available. + Details
Name: | unm_FairValueMeasurmentsTransfersOfAssetsBetweenLevel1AndLevel2
Namespace Prefix: | unm_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13476-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueInputsAssetsQuantitativeInformationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration