Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Entity Registrant Name | AETNA INC /PA/ | ||
Entity Central Index Key | 1122304 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 348.7 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $27,900 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Revenue: | ||||||
Health care premiums | $49,562,200,000 | $39,659,700,000 | $28,872,000,000 | |||
Other premiums | 2,186,300,000 | 2,077,900,000 | 1,902,000,000 | |||
Group annuity contract conversion premium | 0 | [1] | 99,000,000 | [1] | 941,400,000 | [1] |
Fees and other revenue | 5,228,400,000 | [2] | 4,550,500,000 | [2] | 3,853,500,000 | [2] |
Net investment income | 945,900,000 | 916,300,000 | 922,200,000 | |||
Net realized capital gains (losses) | 80,400,000 | -8,800,000 | 108,700,000 | |||
Total revenue | 58,003,200,000 | 47,294,600,000 | 36,599,800,000 | |||
Benefits and expenses: | ||||||
Health care costs | 40,746,700,000 | [3] | 32,896,000,000 | [3] | 23,728,900,000 | [3] |
Current and future benefits | 2,165,000,000 | 2,251,400,000 | 2,010,100,000 | |||
Benefit expense on group annuity contract conversion | 0 | 99,000,000 | 941,400,000 | |||
Operating expenses: | ||||||
Selling expenses | 1,653,000,000 | 1,348,600,000 | 1,105,500,000 | |||
General and administrative expenses | 9,184,700,000 | [4] | 7,296,800,000 | [4] | 5,770,900,000 | [4] |
Total operating expenses | 10,837,700,000 | 8,645,400,000 | 6,876,400,000 | |||
Interest expense | 329,300,000 | 333,700,000 | 268,800,000 | |||
Amortization of other acquired intangible assets | 243,400,000 | 214,600,000 | 142,000,000 | |||
Loss on early extinguishment of long-term debt | 181,200,000 | 0 | 84,900,000 | |||
Reduction of reserve for anticipated future losses on discontinued products | 0 | -86,000,000 | 0 | |||
Total benefits and expenses | 54,503,300,000 | 44,354,100,000 | 34,052,500,000 | |||
Income before income taxes | 3,499,900,000 | 2,940,500,000 | 2,547,300,000 | |||
Income taxes | 1,454,700,000 | 1,028,600,000 | 887,500,000 | |||
Net income including non-controlling interests | 2,045,200,000 | 1,911,900,000 | 1,659,800,000 | |||
Less: Net income (loss) attributable to non-controlling interests | 4,400,000 | -1,700,000 | 1,900,000 | |||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | |||
Earnings per common share: | ||||||
Basic | $5.74 | $5.38 | $4.87 | |||
Diluted | $5.68 | $5.33 | $4.81 | |||
Administrative Services Contract Member Co Payments And Plan Sponsor Reimbursements | 102,000,000 | 86,000,000 | 79,000,000 | |||
Pharmaceutical And Processing Costs | 1,300,000,000 | 1,100,000,000 | 1,200,000,000 | |||
Insured Member Co Payments | $107,000,000 | $110,000,000 | $127,000,000 | |||
[1] | In 2013 and 2012, pursuant to contractual rights exercised by the contract holders, certain existing group annuity contracts converted from participating to non-participating contracts. Upon conversion, we recorded $99.0 million and $941.4 million of non-cash group annuity conversion premium for these contracts and a corresponding $99.0 million and $941.4 million non-cash benefit expense on group annuity conversion for these contracts during 2013 and 2012, respectively. | |||||
[2] | Fees and other revenue include administrative services contract member co-payments and plan sponsor reimbursements related to our mail order and specialty pharmacy operations of $102 million, $86 million and $79 million (net of pharmaceutical and processing costs of $1.3 billion, $1.1 billion and $1.2 billion) for 2014, 2013 and 2012, respectively. | |||||
[3] | Health care costs have been reduced by Insured member co-payments related to our mail order and specialty pharmacy operations of $107 million, $110 million and $127 million for 2014, 2013 and 2012, respectively. | |||||
[4] | In 2014, includes: a non-cash settlement charge incurred in connection with the Aetna Pension Plan of $111.6 million; transaction and integration-related costs of $200.7 million and a release of a litigation-related reserve of $103.0 million. In 2013, includes: transaction, integration-related and restructuring costs of $314.6 million and a reduction of expenses related to reversal of an allowance on a reinsurance recoverable of $42.2 million. In 2012, includes: a litigation-related charge of $120.0 million, transaction and integration-related costs of $16.2 million and a severance and facilities charge of $37.0 million. |
Statement_of_Comprehensive_Inc
Statement of Comprehensive Income Statement (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Pension Settlement Charge, Net of Tax | $72.50 | $0 | $0 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -1,111.30 | -912.1 | ||||
Net income including non-controlling interests | 2,045.20 | 1,911.90 | 1,659.80 | |||
Other Comprehensive Income (Loss) | -199.2 | 121.3 | 155.8 | |||
Pension settlement charge | -111.6 | [1] | 0 | 0 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1,846 | 2,033.20 | 1,815.60 | |||
Comprehensive (Income) Loss, Net of Tax, Attributable to Noncontrolling Interest | 4.4 | -1.7 | 1.9 | |||
Total comprehensive income | 1,841.60 | 2,034.90 | 1,813.70 | |||
Pension Plan [Member] | ||||||
Pension Settlement Charge, Net of Tax | 72.5 | [1],[2] | ||||
Pension settlement charge | -111.6 | [1] | ||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0.9 | [3] | -47.2 | [3] | 2.4 | [3] |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0.2 | [3] | -24.1 | [3] | 3.3 | [3] |
Other Comprehensive Income (Loss) | 0.7 | [3] | -23.1 | [3] | -0.9 | [3] |
Net Unrealized Gains (Losses) All Other Securities [Member] | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 236.9 | -522.1 | 304.4 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -4.3 | -23.7 | 74.4 | |||
Other Comprehensive Income (Loss) | 241.2 | -498.4 | 230 | |||
Foreign Currency Gain (Loss) [Member] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | -90.2 | 40.6 | 1.4 | |||
Other Comprehensive Income (Loss) | -61.3 | 29.9 | 4.2 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -58.6 | 26.4 | 0.9 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 2.7 | -3.5 | -3.3 | |||
Pension and OPEB Plan [Member] | ||||||
Other Comprehensive Income (Loss) | -379.8 | 612.9 | -77.5 | |||
Recognized net actuarial losses | 31 | 50.5 | 48.6 | |||
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Net of Tax | -2.7 | -2.7 | -2.7 | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | -480.6 | 565.1 | -123.4 | |||
Pension Plan [Member] | ||||||
Pension Settlement Charge, Net of Tax | 72.5 | [1] | 0 | [1] | 0 | [1] |
Recognized net actuarial losses | 46.6 | 75.4 | 70.2 | |||
Pension Plan [Member] | Pension Settlement Charge [Member] | ||||||
Pension settlement charge | $111.60 | $0 | $0 | |||
[1] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | |||||
[2] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan. We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 of Notes to Consolidated Financial Statements beginning on page 109 of the Annual Report for additional information on the pension settlement charge. | |||||
[3] | Represents unrealized (losses) gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired debt security. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $1,420.40 | $1,412.30 | ||
Investments | 2,595.20 | 2,063.80 | ||
Premiums receivable, net | 1,623 | 1,331.20 | ||
Other receivables, net | 2,065.90 | 1,780.80 | ||
Accrued investment income | 223.9 | 211.1 | ||
Collateral received under securities loan agreements | 826.9 | 792.6 | ||
Income taxes receivable | 372.7 | 69.2 | ||
Deferred income taxes | 443 | 521.5 | ||
Other current assets | 2,193 | 1,429.40 | ||
Total current assets | 11,764 | 9,611.90 | ||
Long-term investments | 22,193.90 | 20,935 | ||
Reinsurance recoverables | 751.4 | 782.7 | ||
Goodwill | 10,613.20 | [1] | 10,227.50 | [1] |
Other acquired intangible assets, net | 1,948.30 | 2,094.10 | ||
Property and equipment, net | 669.8 | 721.9 | ||
Other long-term assets | 1,130 | 1,419.20 | ||
Separate Accounts Assets | 4,331.50 | 3,972.50 | ||
Total assets | 53,402.10 | 49,764.80 | ||
Current liabilities: | ||||
Health care costs payable | 5,621.10 | 4,547.40 | ||
Future policy benefits | 705.9 | 734.4 | ||
Unpaid claims | 745.3 | 705.4 | ||
Unearned premiums | 519.5 | 458.7 | ||
Policyholders' funds | 1,984.50 | 1,620.30 | ||
Collateral payable under securities loan and repurchase agreements | 1,028.60 | 792.6 | ||
Short term debt | 500 | 0 | ||
Current portion of long-term debt | 229.3 | [2] | 387.3 | [2] |
Accrued expenses and other current liabilities | 4,022.30 | 3,226.90 | ||
Total current liabilities | 15,356.50 | 12,473 | ||
Future policy benefits | 6,427.40 | 6,656.80 | ||
Unpaid claims | 1,650.60 | 1,619.30 | ||
Policyholders' funds | 1,163.20 | 1,188 | ||
Long-term debt, less current portion | 7,852 | 7,865.30 | ||
Deferred income taxes | 867.5 | 864.2 | ||
Other long-term liabilities | 1,201.60 | 1,047.50 | ||
Separate Accounts liabilities | 4,331.50 | 3,972.50 | ||
Total liabilities | 38,850.30 | 35,686.60 | ||
Commitments and contingencies (Note 18) | ||||
Shareholders' equity: | ||||
Common stock ($.01 par value; 2.6 billion shares authorized and 349.8 million shares issued and outstanding in 2014; 2.6 billion shares authorized and 362.2 million shares issued and outstanding in 2013) and additional paid-in capital | 4,542.20 | 4,382.20 | ||
Retained earnings | 11,051.70 | 10,555.40 | ||
Accumulated other comprehensive loss | -1,111.30 | -912.1 | ||
Total Aetna shareholders' equity | 14,482.60 | 14,025.50 | ||
Non-controlling interests | 69.2 | 52.7 | ||
Total equity | 14,551.80 | 14,078.20 | ||
Total liabilities and shareholders' equity | $53,402.10 | $49,764.80 | ||
[1] | At both December 31, 2014 and 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | |||
[2] | At December 31, 2014, our 6.125% senior notes due January 2015 are classified as current in the accompanying consolidated balance sheet. |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Non-controlling interests at beginning of period at Dec. 31, 2011 | $24.40 | ||||||
Total equity at beginning of period at Dec. 31, 2011 | 10,144.60 | ||||||
Balance at beginning of period at Dec. 31, 2011 | 962.8 | 10,346.60 | 10,120.20 | -1,189.20 | |||
Balance at beginning of period (in shares) at Dec. 31, 2011 | 349.7 | ||||||
Comprehensive income: | |||||||
Net income attributable to the parent | 1,657.90 | 1,657.90 | 1,657.90 | ||||
Less: Net income (loss) attributable to non-controlling interests | 1.9 | 1.9 | |||||
Net income including non-controlling interests | 1,659.80 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | -2.9 | -2.9 | |||||
Other comprehensive income (loss) (Note 9): | |||||||
Other Comprehensive Income (Loss) | 155.8 | 155.8 | 155.8 | ||||
Total comprehensive income | 1,813.70 | ||||||
Common shares issued for benefit plans, including tax benefits | 132.8 | 132.8 | 132.8 | ||||
Common shares issued for benefit plans, including tax benefits (in shares) | 10.2 | ||||||
Repurchases of common shares | -1,417.50 | -0.3 | -1,417.20 | -1,417.50 | |||
Repurchases of common shares (in shares) | -32.3 | ||||||
Dividends declared | -243.4 | -243.4 | -243.4 | ||||
Non-controlling interests at end of period at Dec. 31, 2012 | 23.4 | ||||||
Total equity at end of period at Dec. 31, 2012 | 10,429.20 | ||||||
Balance at end of period at Dec. 31, 2012 | 1,095.30 | 10,343.90 | 10,405.80 | -1,033.40 | |||
Balance at end of period (in shares) at Dec. 31, 2012 | 327.6 | ||||||
Comprehensive income: | |||||||
Net income attributable to the parent | 1,913.60 | 1,913.60 | 1,913.60 | ||||
Less: Net income (loss) attributable to non-controlling interests | -1.7 | -1.7 | |||||
Net income including non-controlling interests | 1,911.90 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 22.3 | -8.7 | -8.7 | 31 | |||
Other comprehensive income (loss) (Note 9): | |||||||
Other Comprehensive Income (Loss) | 121.3 | 121.3 | 121.3 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 52.2 | 52.2 | |||||
Stock Issued During Period, Value, Acquisitions | 3,064.60 | 3,064.60 | 3,064.60 | ||||
Total comprehensive income | 2,034.90 | ||||||
Common shares issued for benefit plans, including tax benefits | 231.2 | 231.2 | 231.2 | ||||
Common shares issued for benefit plans, including tax benefits (in shares) | 5.4 | ||||||
Repurchases of common shares | -1,407.70 | -0.2 | -1,407.50 | -1,407.70 | |||
Repurchases of common shares (in shares) | -23 | ||||||
Dividends declared | -294.6 | -294.6 | -294.6 | ||||
Non-controlling interests at end of period at Dec. 31, 2013 | 52.7 | 52.7 | |||||
Total equity at end of period at Dec. 31, 2013 | 14,078.20 | ||||||
Balance at end of period at Dec. 31, 2013 | 14,025.50 | 4,382.20 | 10,555.40 | 14,025.50 | -912.1 | ||
Balance at end of period (in shares) at Dec. 31, 2013 | 362.2 | 362.2 | |||||
Comprehensive income: | |||||||
Net income attributable to the parent | 2,040.80 | 2,040.80 | 2,040.80 | ||||
Less: Net income (loss) attributable to non-controlling interests | 4.4 | 4.4 | |||||
Net income including non-controlling interests | 2,045.20 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 12.1 | 0 | 0 | 12.1 | |||
Other comprehensive income (loss) (Note 9): | |||||||
Other Comprehensive Income (Loss) | -199.2 | -199.2 | -199.2 | ||||
Total comprehensive income | 1,841.60 | ||||||
Common shares issued for benefit plans, including tax benefits | 160.1 | 160.1 | 160.1 | ||||
Common shares issued for benefit plans, including tax benefits (in shares) | 3.5 | ||||||
Repurchases of common shares | -1,218.10 | -0.1 | -1,218 | -1,218.10 | |||
Repurchases of common shares (in shares) | -15.9 | ||||||
Dividends declared | -326.5 | -326.5 | -326.5 | ||||
Non-controlling interests at end of period at Dec. 31, 2014 | 69.2 | 69.2 | |||||
Total equity at end of period at Dec. 31, 2014 | 14,551.80 | ||||||
Balance at end of period at Dec. 31, 2014 | $14,482.60 | $4,542.20 | $11,051.70 | $14,482.60 | ($1,111.30) | ||
Balance at end of period (in shares) at Dec. 31, 2014 | 349.8 | 349.8 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Pension settlement charge | ($111.60) | [1] | $0 | $0 | ||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 1.4 | [2] | -72.6 | [2] | 3.7 | [2] |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0.3 | [2] | -37.1 | [2] | 5.1 | [2] |
Net Unrealized Gains (Losses) All Other Securities [Member] | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 364.5 | -803.2 | 468.3 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | -6.6 | -36.5 | 113.8 | |||
Foreign Currency Gain (Loss) [Member] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | -90.2 | 40.6 | 1.4 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 4.2 | -5.4 | -5 | |||
Pension and OPEB Plan [Member] | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | -739.4 | 869.3 | -189.8 | |||
Amortization of net actuarial loss, before tax | -47.6 | -77.7 | -74.7 | |||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 4 | 4.1 | 4.1 | |||
Pension Plan [Member] | ||||||
Pension settlement charge | ($111.60) | [1] | ||||
[1] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | |||||
[2] | Represents unrealized (losses) gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired debt security. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Consolidated Balance Sheets (Parenthetical) [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 2,600 | 2,600 |
Common Stock, Shares, Issued | 349.8 | 362.2 |
Common Stock, Shares, Outstanding | 349.8 | 362.2 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ||||
Net income including non-controlling interests | $2,045.20 | $1,911.90 | $1,659.80 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net realized capital losses (gains) | -80.4 | 8.8 | -108.7 | |
Depreciation and amortization | 629 | 569.1 | 449.9 | |
Debt fair value amortization | -53.2 | -39.4 | 0 | |
Equity in (earnings) losses of affiliates, net | -39.4 | -43.6 | -46.9 | |
Stock-based compensation expense | 163.8 | 127.1 | 122.2 | |
Reduction of reserve for anticipated future losses on discontinued products | 0 | -86 | 0 | |
Reversal of allowance and gain on sale of reinsurance recoverable | 0 | -49.4 | 0 | |
Amortization (accretion) of net investment premium (discount) | 71.6 | 58.5 | 21.7 | |
Loss on early extinguishment of long-term debt | 181.2 | 0 | 84.9 | |
Pension settlement charge | 111.6 | [1] | 0 | 0 |
Changes in assets and liabilities: | ||||
Accrued investment income | -12.8 | 2.5 | 12.1 | |
Premiums due and other receivables | -866.4 | -261.7 | -163.7 | |
Income taxes | -154.1 | 52 | 98.6 | |
Other assets and other liabilities | 551.8 | 28.9 | -340.2 | |
Health care and insurance liabilities | 825.7 | 2.4 | 25.5 | |
Other, net | -0.8 | -2.4 | 9.7 | |
Net cash provided by operating activities | 3,372.80 | 2,278.70 | 1,824.90 | |
Cash flows from investing activities: | ||||
Proceeds from sales and maturities of investments | 9,484.30 | 13,382 | 11,181.60 | |
Cost of investments | -10,803.90 | -13,178.40 | -11,066.10 | |
Additions to property, equipment and software | -369.6 | -479.1 | -338.2 | |
Cash used for acquisitions, net of cash acquired | -450.5 | -1,646.80 | -8.6 | |
Other, net | 10 | 2.5 | 0 | |
Net cash provided by (used for) investing activities | -2,129.70 | -1,919.80 | -231.3 | |
Cash flows from financing activities: | ||||
Repayment of long-term debt | -1,797.80 | 0 | -277.2 | |
Issuance of long-term debt | 1,482.40 | 0 | 2,664.80 | |
Net issuance (repayment) of short-term debt | 500 | 0 | -425.9 | |
Deposits and interest credited for investment contracts | 5.3 | 5.2 | 5.7 | |
Withdrawals of investment contracts | -3.6 | -10.7 | -17 | |
Common shares issued under benefit plans, net | -60.3 | 11.8 | -44.5 | |
Stock-based compensation tax benefits | 41.3 | 83.4 | 50.3 | |
Proceeds from repurchase agreements | 201.6 | 0 | 0 | |
Common shares repurchased | -1,218.10 | -1,407.70 | -1,417.50 | |
Dividends paid to shareholders | -320.6 | -278.7 | -239.1 | |
Collateral on interest rate swaps | -77.3 | 39.9 | 9.2 | |
Proceeds from (Payments to) Noncontrolling Interests | 12.1 | 31 | -2.9 | |
Net cash (used for) provided by financing activities | -1,235 | -1,525.80 | 305.9 | |
Net (decrease) increase in cash and cash equivalents | 8.1 | -1,166.90 | 1,899.50 | |
Cash and cash equivalents, beginning of period | 1,412.30 | 2,579.20 | 679.7 | |
Cash and cash equivalents, end of period | $1,420.40 | $1,412.30 | $2,579.20 | |
[1] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. |
Organization
Organization | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization | ||
1 | Organization | |
We conduct our operations in three business segments: | ||
• | Health Care consists of medical, pharmacy benefit management services, dental, behavioral health and vision plans offered on both an Insured basis (where we assume all or a majority of the risk for medical and dental care costs) and an employer-funded basis (where the plan sponsor under an administrative services contract (“ASC”) assumes all or a majority of this risk) and products and services, such as Accountable Care Solutions (“ACS”), that complement and enhance our medical products. Medical products include point-of-service (“POS”), preferred provider organization (“PPO”), health maintenance organization (“HMO”) and indemnity benefit (“Indemnity”) plans. Medical products also include health savings accounts (“HSAs”) and Aetna HealthFund®, consumer-directed health plans that combine traditional POS or PPO and/or dental coverage, subject to a deductible, with an accumulating benefit account (which may be funded by the plan sponsor and/or the member in the case of HSAs). We also offer Medicare and Medicaid products and services and other medical products, such as medical management and data analytics services, medical stop loss insurance, workers’ compensation administrative services and products that provide access to our provider network in select geographies. | |
• | Group Insurance primarily includes group life insurance and group disability products. Group life insurance products are offered on an Insured basis, and include basic and supplemental group term life, group universal life, supplemental or voluntary programs and accidental death and dismemberment coverage. Group disability products consist primarily of short-term and long-term disability products (and products which combine both), which are offered to employers on both an Insured and an ASC basis, and absence management services offered to employers, which include short-term and long-term disability administration and leave management. Group Insurance also includes long-term care products that were offered primarily on an Insured basis, which provide benefits covering the cost of care in private home settings, adult day care, assisted living or nursing facilities. We no longer solicit or accept new long-term care customers. | |
• | Large Case Pensions manages a variety of retirement products (including pension and annuity products) primarily for tax-qualified pension plans. These products provide a variety of funding and benefit payment distribution options and other services. Large Case Pensions also includes certain discontinued products (refer to Note 20 beginning on page 135 for additional information). | |
Our three business segments are distinct businesses that offer different products and services. Our Chief Executive Officer evaluates financial performance and makes resource allocation decisions at these segment levels. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 2, below. We evaluate the performance of these business segments based on operating earnings (net income or loss attributable to Aetna, excluding net realized capital gains or losses and other items, if any) (refer to Note 19 beginning on page 132 for segment financial information). | ||
On May 7, 2013 (the “Acquisition Date”), we completed the acquisition of Coventry Health Care, Inc. (“Coventry”) in a transaction valued at approximately $8.7 billion, including the fair value of Coventry’s outstanding debt. Refer to Note 3 beginning on page 90 for additional information. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | ||
2 | Summary of Significant Accounting Policies | |
Principles of Consolidation | ||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally-accepted accounting principles (“GAAP”) and include the accounts of Aetna and the subsidiaries that we control. All significant intercompany balances have been eliminated in consolidation. The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined there were no other items to disclose other than as disclosed in Note 21 beginning on page 138. | ||
Reclassifications | ||
Certain reclassifications were made to 2012 and 2013 financial information to conform with 2014 presentation. | ||
New Accounting Standards | ||
Fees Paid to the Federal Government by Health Insurers | ||
Effective January 1, 2014, we adopted new accounting guidance relating to the recognition and income statement reporting of the mandated fee to be paid to the federal government by health insurers. This guidance applies to the new health insurer fee (“HIF”) included in Health Care Reform. This new accounting guidance resulted in the establishment on January 1, 2014, of a liability for our portion of the entire estimated 2014 annual HIF. This amount is reflected in accrued expenses and other current liabilities with a corresponding amount reflected in other current assets. The estimated annual HIF is amortized into general and administrative expenses on a straight-line basis with a corresponding reduction in other current assets. The HIF for 2014 was paid in September 2014 and is not tax deductible. | ||
Amendments to the Scope, Measurement and Disclosure Requirements of Investment Companies | ||
Effective January 1, 2014, we adopted new accounting guidance relating to the approach for determining whether an entity is considered an investment company for accounting purposes. This guidance clarified the characteristics and set measurement and disclosure requirements for an investment company for accounting purposes. The adoption of this new guidance did not have an impact on our financial position or operating results. | ||
Future Application of Accounting Standards | ||
Accounting for Investments in Qualified Affordable Housing Projects | ||
Effective January 1, 2015, we were permitted to make an accounting policy election to adopt new accounting guidance relating to the recognition of amortization of investments in qualified affordable housing projects. The guidance sets forth a new method of measurement, referred to as the proportional amortization method, under which income and expense items related to qualified affordable housing projects would be recorded in the income taxes line item. We will not be making the accounting policy election to adopt this new accounting guidance. | ||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
Effective January 1, 2015, we will adopt amended accounting guidance related to when an entity reports a discontinued operation in its financial position and operating results. The guidance clarifies that a discontinued operation is required to be reported if the disposal represents a significant shift that has (or will have) a major effect on an entity’s operations and financial results when a component of an entity or a group of components of an entity are either classified as held for sale or are disposed of by sale. The amendments also require additional disclosures about discontinued operations. If we have a discontinued operation after January 1, 2015, these changes could result in increased reporting and disclosure requirements in our financial statements. | ||
Revenue from Contracts with Customers | ||
Effective January 1, 2017, we will adopt new accounting guidance related to revenue recognition from contracts with customers. This new guidance removes most industry-specific revenue recognition requirements (insurance contracts are not covered by this guidance) and requires that an entity recognize revenue for the transfer of goods or services to a customer at an amount that reflects the consideration to which an entity expects to be entitled in exchange for the goods or services. The new guidance also requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The new guidance allows an entity to adopt the standard either through a full retrospective approach or a modified retrospective approach with a cumulative effect adjustment to retained earnings. We are still assessing the impact of this standard on our financial position and operating results in addition to evaluating the transition method we will use when we adopt this standard. | ||
Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | ||
Effective January 1, 2015, we will adopt new accounting guidance related to the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. This guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with other typical repurchase agreements, resulting in these transactions generally being accounted for as secured borrowings. The guidance also requires additional disclosures about repurchase agreements and other similar transactions. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. | ||
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | ||
Effective January 1, 2016, we will adopt new accounting guidance related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This guidance clarifies that awards with these provisions should be treated as performance conditions that affect vesting, and do not impact the award’s estimated grant-date fair value. Early adoption for this new guidance is permitted. The adoption of this new guidance will not have an impact on our financial position or operating results. | ||
Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern | ||
Effective December 31, 2016, we will adopt amended accounting guidance related to management’s evaluation of whether there is substantial doubt about an entity’s ability to continue as a going concern and the related disclosures. The adoption of this new guidance will not have a material impact on our financial position or operating results. | ||
Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity | ||
Effective December 31, 2015, we will adopt amended accounting guidance related to the approach used in determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or equity. Early adoption for this new guidance is permitted. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. | ||
Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items | ||
Effective January 1, 2016, we will adopt amended accounting guidance related to the presentation of extraordinary items. The amendment eliminates the concept of extraordinary items which represent events that are both unusual and infrequent. Presentation and disclosure of items that are unusual or infrequent will be retained, and will be expanded to include items that are both unusual and infrequent. The adoption of this new guidance is not expected to have a material impact on our financial position or operating results. | ||
Use of Estimates | ||
The preparation of the accompanying consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in these consolidated financial statements and notes. We consider the following accounting estimates critical in the preparation of the accompanying consolidated financial statements: health care costs payable, other insurance liabilities, recoverability of goodwill and other acquired intangible assets, measurement of defined benefit pension and other postretirement employee benefit plans, other-than-temporary impairment of debt securities and revenue recognition, and allowance for estimated terminations and uncollectible accounts. We use information available to us at the time estimates are made; however, these estimates could change materially if different information or assumptions were used. Additionally, these estimates may not ultimately reflect the actual amounts of the final transactions that occur. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash on-hand and debt securities with an original maturity of three months or less when purchased. The carrying value of cash equivalents approximates fair value due to the short-term maturity of these investments. | ||
Investments | ||
Debt and Equity Securities | ||
Debt and equity securities consist primarily of U.S. Treasury and agency securities, mortgage-backed securities, corporate and foreign bonds and other debt and equity securities. Debt securities are classified as either current or long-term investments based on their contractual maturities unless we intend to sell an investment within the next twelve months, in which case it is classified as current on our balance sheets. We have classified our debt and equity securities as available for sale and carry them at fair value. Refer to Note 10 beginning on page 102 for additional information on how we estimate the fair value of these investments. The cost for mortgage-backed and other asset-backed securities is adjusted for unamortized premiums and discounts, which are amortized using the interest method over the estimated remaining term of the securities, adjusted for anticipated prepayments. We regularly review our debt and equity securities to determine whether a decline in fair value below the carrying value is other-than-temporary. When a debt or equity security is in an unrealized capital loss position, we monitor the duration and severity of the loss to determine if sufficient market recovery can occur within a reasonable period of time. If a decline in the fair value of a debt security is considered other-than-temporary, the cost basis or carrying value of the debt security is written down. The write-down is then bifurcated into its credit and non-credit related components. The amount of the credit-related component is included in our operating results, and the amount of the non-credit related component is included in other comprehensive income, unless we intend to sell the debt security or it is more likely than not that we will be required to sell the debt security prior to its anticipated recovery of its amortized cost basis. We do not accrue interest on debt securities when management believes the collection of interest is unlikely. | ||
We lend certain debt and equity securities from our investment portfolio to other institutions for short periods of time using securities lending transactions and repurchase agreements. Under securities lending transactions, borrowers must post cash collateral in the amount of 102% to 105% of the fair value of the loaned securities, and the fair value of the loaned securities is monitored on a daily basis, with additional collateral obtained or refunded as the fair value of the loaned securities fluctuates. Under securities lending transactions, the collateral is retained and invested by a lending agent according to our investment guidelines to generate additional income for us. We primarily utilize repurchase agreements for short-term borrowings to meet liquidity needs. Under repurchase agreements, we receive cash in an amount that approximates the fair value of our collateralized debt securities. | ||
Mortgage Loans | ||
We carry the value of our mortgage loan investments on our balance sheets at the unpaid principal balance, net of impairment reserves. A mortgage loan may be impaired when it is a problem loan (i.e., more than 60 days delinquent, in bankruptcy or in process of foreclosure), a potential problem loan (i.e., high probability of default) or a restructured loan. For impaired loans, a specific impairment reserve is established for the difference between the recorded investment in the loan and the estimated fair value of the collateral. We apply our loan impairment policy individually to all loans in our portfolio. | ||
The quarterly impairment evaluation described above also considers characteristics and risk factors attributable to the aggregate portfolio. We would establish an additional allowance for loan losses if it were probable that there would be a credit loss on a group of similar mortgage loans. We consider the following characteristics and risk factors when evaluating if a credit loss is probable: loan to value ratios, property type (e.g., office, retail, apartment, industrial), geographic location, vacancy rates and property condition. As a result of that evaluation, we determined that a credit loss was not probable and did not record any additional allowance for loan losses with respect to performing mortgage loans in 2014, 2013 or 2012. | ||
We record full or partial charge-offs of loans at the time an event occurs affecting the legal status of the loan, typically at the time of foreclosure or upon a loan modification giving rise to forgiveness of debt. Interest income on an impaired loan is accrued to the extent we deem it collectible and the loan continues to perform under its original or restructured terms. Interest income on problem loans is recognized on a cash basis. Cash payments on loans in the process of foreclosure are treated as a return of principal. Mortgage loans with a maturity date or a committed prepayment date within twelve months are classified as current on our balance sheets. | ||
Other Investments | ||
Other investments consist primarily of the following: | ||
• | Alternative investments, which are comprised of private equity and hedge fund limited partnerships. We typically do not have a controlling ownership in our alternative investments, and therefore we apply the equity method of accounting for these investments. | |
• | Investment real estate, which is carried on our balance sheets at depreciated cost, including capital additions, net of write-downs for other-than-temporary declines in fair value. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset. If any of our real estate investments is considered held-for-sale, we carry it at the lower of its carrying value or fair value less estimated selling costs. We generally estimate fair value using a discounted future cash flow analysis in conjunction with comparable sales information. At the time of the sale, we record the difference between the sales price and the carrying value as a realized capital gain or loss. | |
• | Privately-held equity securities, which are carried at cost on our balance sheets. We do not estimate the fair value of these securities if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Additionally, as a member of the Federal Home Loan Bank of Boston (“FHLBB”), we are required to purchase and hold shares of the FHLBB. These shares are restricted and also carried at cost. | |
• | Bank loans, which are carried on our balance sheets at amortized cost, net of any allowance for impairments. If any of our bank loans are considered held-for-sale, we carry those loans at the lower of cost or fair value. | |
• | Derivatives, which we make limited use of in order to manage interest rate, foreign exchange, price risk and credit exposure. The derivatives we use consist primarily of interest rate swaps, forward contracts, futures contracts, warrants, put options, and credit default swaps. Derivatives are reflected at fair value on our balance sheets. When we enter into a derivative contract, if certain criteria are met, we may designate it as one of the following: a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment; a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability; or a foreign currency fair value or cash flow hedge. | |
Net Investment Income and Realized Capital Gains and Losses | ||
Net investment income on investments supporting Health Care and Group Insurance liabilities and Large Case Pensions products (other than experience-rated and discontinued products) are reflected in our operating results. | ||
Experience-rated products are products in the Large Case Pensions business where the contract holder, not us, assumes investment and other risks, subject to, among other things, minimum guarantees provided by us. The effect of investment performance on experience-rated products is allocated to contract holders’ accounts daily, based on the underlying investment experience and, therefore, does not impact our operating results (as long as minimum guarantees are not triggered). | ||
When we discontinued the sale of our fully-guaranteed Large Case Pensions products, we established a reserve for anticipated future losses from these discontinued products and segregated the related investments. Investment performance on this separate portfolio is ultimately credited/charged to the reserve and, generally, does not impact our operating results. | ||
Net investment income supporting Large Case Pensions’ experience-rated and discontinued products is included in net investment income in our statements of income and is credited to contract holders’ accounts or the reserve for anticipated future losses through a charge to current and future benefits. | ||
Realized capital gains and losses on investments supporting Health Care and Group Insurance liabilities and Large Case Pensions products (other than experience-rated and discontinued products) are reflected in our operating results. Realized capital gains and losses are determined on a specific identification basis. We reflect purchases and sales of debt and equity securities and alternative investments on the trade date. We reflect purchases and sales of mortgage loans and investment real estate on the closing date. | ||
Realized capital gains and losses on investments supporting Large Case Pensions’ experience-rated and discontinued products are not included in realized capital gains and losses in our statements of income and instead are credited directly to contract holders’ accounts, in the case of experience-rated products, or allocated to the reserve for anticipated future losses established at discontinuance, in the case of discontinued products. The contract holders’ accounts are reflected in policyholders’ funds, and the reserve for anticipated future losses is reflected in future policy benefits on our balance sheets. | ||
Unrealized capital gains and losses on investments supporting Health Care and Group Insurance liabilities and Large Case Pensions products (other than experience-rated and discontinued products) are reflected in shareholders’ equity, net of tax, as a component of accumulated other comprehensive loss. | ||
Unrealized capital gains and losses on investments supporting Large Case Pensions’ experience-rated products are credited directly to contract holders’ accounts, which are reflected in policyholders’ funds on our balance sheets. Net unrealized capital gains and losses on discontinued products are reflected in other long-term liabilities on our balance sheets. | ||
Refer to Note 20 beginning on page 135 for additional information on our discontinued products. | ||
Reinsurance | ||
We utilize reinsurance agreements primarily to reduce our required capital and to facilitate the acquisition or disposition of certain insurance contracts. Ceded reinsurance agreements permit us to recover a portion of our losses from reinsurers, although they do not discharge our primary liability as the direct insurer of the risks reinsured. Failure of reinsurers to indemnify us could result in losses; however, we do not expect charges for unrecoverable reinsurance to have a material effect on our operating results or financial condition. We evaluate the financial condition of our reinsurers and monitor concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of our reinsurers. At December 31, 2014, our reinsurance recoverables consisted primarily of amounts due from third parties that are rated consistent with companies that are considered to have the ability to meet their obligations. | ||
We enter into agreements with other insurance companies under which we assume reinsurance, primarily related to our group life and health products. We do not transfer any portion of the financial risk associated with our Commercial HMO products to third parties, except in areas where we participate in state-mandated health insurance pools. We did not have material premiums ceded to or assumed from unrelated insurance companies in the three years ended December 31, 2014. | ||
Refer to “Reinsurance” on page 88 for information about Health Care Reform’s temporary three-year reinsurance program. | ||
Goodwill | ||
We have made acquisitions that included a significant amount of goodwill and other intangible assets. When we complete an acquisition, we apply the acquisition method of accounting, which among other things, requires the recognition of goodwill (which represents the excess cost of the acquisition over the fair value of net assets acquired and identified intangible assets). | ||
We evaluate goodwill for impairment (at the reporting unit level) annually, or more frequently if circumstances indicate a possible impairment, by comparing an estimate of the fair value of the applicable reporting unit to its carrying value, including goodwill. If the carrying value exceeds fair value, we compare the implied fair value of the applicable goodwill to its carrying amount to measure the amount of goodwill impairment, if any. Impairments, if any, would be classified as an operating expense. There were no goodwill impairment losses recognized, and the fair value of each reporting unit substantially exceeded its carrying value in each of the three years ended December 31, 2014, 2013 or 2012. | ||
Our annual impairment tests were based on an evaluation of future discounted cash flows. These evaluations utilized the best information available to us at the time, including supportable assumptions and projections we believe are reasonable. Collectively, these evaluations were our best estimates of projected future cash flows. Our discounted cash flow evaluations used discount rates that correspond to a weighted-average cost of capital consistent with a market-participant view. The discount rates are consistent with those used for investment decisions and take into account the operating plans and strategies of the Health Care and Group Insurance segments. Certain other key assumptions utilized, including changes in membership, revenue, health care costs, operating expenses, impacts of health care reform fees, assessments and taxes and effective tax rates, are based on estimates consistent with those utilized in our annual planning process that we believe are reasonable. If we do not achieve our earnings objectives, the assumptions and estimates underlying these goodwill impairment evaluations could be adversely affected, and we may impair a portion of our goodwill, which would adversely affect our operating results in the period of impairment. | ||
Property and Equipment and Other Acquired Intangible Assets | ||
We report property and equipment and other acquired intangible assets at historical cost, net of accumulated depreciation or amortization. At December 31, 2014 and 2013, the historical cost of property and equipment was approximately $807 million and $852 million, respectively, and the related accumulated depreciation was approximately $137 million and $130 million, respectively. Refer to Note 7 beginning on page 93 for cost and accumulated amortization associated with other acquired intangibles. We calculate depreciation and amortization primarily using the straight-line method over the estimated useful lives of the respective assets ranging from three to forty years. | ||
In connection with the acquisition of Genworth Financial, Inc.’s (“Genworth’s”) Medicare Supplement and related blocks of in-force business we recognized an asset for the valuation of business acquired (“VOBA”). VOBA represents the present value of the future profits embedded in the acquired businesses, and was determined by estimating the net present value of future cash flows from the contracts in force at the date of acquisition. VOBA is amortized in proportion to estimated premiums arising from the acquired contracts over their expected life. | ||
We regularly evaluate whether events or changes in circumstances indicate that the carrying value of property and equipment or other acquired intangible assets may not be recoverable. If we determine that the carrying value of an asset may not be recoverable, we group the asset with other assets and liabilities at the lowest level for which independent identifiable cash flows are available and estimate the future undiscounted cash flows expected to result from future use of the asset group and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying value of the asset group, we recognize an impairment loss for the amount by which the carrying value of the asset group exceeds its fair value. There were no material impairment losses recognized in the three years ended December 31, 2014, 2013 or 2012. | ||
Separate Accounts | ||
Separate Accounts assets and liabilities in the Large Case Pensions business represent funds maintained to meet specific objectives of contract holders who bear the investment risk. These assets and liabilities are carried at fair value. Net investment income and net realized capital gains and losses accrue directly to such contract holders. The assets of each account are legally segregated and are not subject to claims arising from our other businesses. Deposits, withdrawals, net investment income and net realized and net unrealized capital gains and losses on Separate Accounts assets are not reflected in our statements of income or cash flows. Management fees charged to contract holders are included in fees and other revenue and recognized over the period earned. | ||
Health Care and Other Insurance Liabilities | ||
Health care costs payable | ||
Health care costs payable consist principally of unpaid fee-for-service medical, dental and pharmacy claims, capitation costs and other amounts due to health care providers pursuant to risk-sharing arrangements related to Health Care’s POS, PPO, HMO, Indemnity, Medicare and Medicaid products. Unpaid health care claims include our estimate of payments we will make on claims reported to us but not yet paid and for health care services rendered to members but not yet reported to us as of the balance sheet date (collectively, “IBNR”). Also included in these estimates is the cost of services that will continue to be rendered after the balance sheet date if we are obligated to pay for such services in accordance with contractual or regulatory requirements. Such estimates are developed using actuarial principles and assumptions which consider, among other things, historical and projected claim submission and processing patterns, assumed and historical medical cost trends, historical utilization of medical services, claim inventory levels, changes in membership and product mix, seasonality and other relevant factors. We reflect changes in these estimates in health care costs in our operating results in the period they are determined. Capitation costs represent contractual monthly fees paid to participating physicians and other medical providers for providing medical care, regardless of the medical services provided to the member. Approximately five percent of our health care costs related to capitated arrangements in each of the last three years. Amounts due under risk-sharing arrangements are based on the terms of the underlying contracts with the providers and consider claims experience under the contracts through the balance sheet date. | ||
Future policy benefits | ||
Future policy benefits consist primarily of reserves for limited payment pension and annuity contracts in the Large Case Pensions business and long-duration group life and long-term care insurance contracts in the Group Insurance business. Reserves for limited payment contracts are computed using actuarial principles that consider, among other things, assumptions reflecting anticipated mortality, retirement, expense and interest rate experience. Such assumptions generally vary by plan, year of issue and policy duration. Assumed interest rates on such contracts ranged from .8% to 11.3% and 1.3% to 11.3% in 2014 and 2013, respectively. We periodically review mortality assumptions against both industry standards and our experience. Reserves for long-duration group life and long-term care contracts represent our estimate of the present value of future benefits to be paid to or on behalf of policyholders less the present value of future net premiums. Assumed interest rates on such contracts ranged from 2.5% to 8.8% in both 2014 and 2013. Our estimate of the present value of future benefits under such contracts is based upon mortality, morbidity and interest rate assumptions. | ||
Unpaid claims | ||
Unpaid claims consist primarily of reserves associated with certain short-duration group disability and term life insurance contracts in the Group Insurance business, including an estimate for IBNR as of the balance sheet date. Reserves associated with certain short-duration group disability and term life insurance contracts are based upon our estimate of the present value of future benefits, which is based on assumed investment yields and assumptions regarding mortality, morbidity and recoveries from the U.S. Social Security Administration. We develop our estimate of IBNR using actuarial principles and assumptions which consider, among other things, contractual requirements, claim incidence rates, claim recovery rates, seasonality and other relevant factors. We discount certain claim liabilities related to group long-term disability and life insurance waiver of premium contracts. The discounted unpaid claim liabilities were $2.0 billion and $1.9 billion at December 31, 2014 and 2013, respectively. The undiscounted value of these unpaid claim liabilities was $2.7 billion and $2.6 billion at December 31, 2014 and 2013, respectively. The discount rates generally reflect our expected investment returns for the investments supporting all incurral years of these liabilities and ranged from 3.0% to 6.0% in 2014 and 3.3% to 6.0% in 2013. The discount rates for retrospectively-rated contracts are set at contractually specified levels. Our estimates of unpaid claims are subject to change due to changes in the underlying experience of the insurance contracts, changes in investment yields or other factors, and these changes are recorded in current and future benefits in our statements of income in the period they are determined. | ||
Policyholders’ funds | ||
Policyholders’ funds consist primarily of reserves for pension and annuity investment contracts in the Large Case Pensions business and customer funds associated with group life and health contracts in the Health Care and Group Insurance businesses. Reserves for such contracts are equal to cumulative deposits less withdrawals and charges plus credited interest thereon, net of experience-rated adjustments. In 2014, interest rates for pension and annuity investment contracts ranged from 3.6% to 16.7%, and interest rates for group life and health contracts ranged from 0% to 2.8%. In 2013, interest rates for pension and annuity investment contracts ranged from 3.8% to 12.2%, and interest rates for group life and health contracts ranged from 0% to 3.2%. Reserves for contracts subject to experience rating reflect our rights as well as the rights of policyholders and plan participants. | ||
We also hold funds for health savings accounts (“HSAs”) on behalf of members associated with high deductible health plans. These amounts are held to pay for qualified health care expenses incurred by these members. The HSA balances were approximately $1.3 billion and $920 million at December 31, 2014 and 2013, respectively, and are reflected in other current assets with a corresponding liability in policyholder funds. | ||
We review health care and other insurance liabilities periodically. We reflect any necessary adjustments during the current period in operating results. While the ultimate amount of claims and related expenses are dependent on future developments, it is management’s opinion that the liabilities that have been established are adequate to cover such costs. The health care and other insurance liabilities that are expected to be paid within twelve months are classified as current on our balance sheets. | ||
Premium Deficiency Reserves | ||
We evaluate our insurance contracts to determine if it is probable that a loss will be incurred. We recognize a premium deficiency loss when it is probable that expected future claims, including maintenance costs (for example, claim processing costs), will exceed existing reserves plus anticipated future premiums and reinsurance recoveries. Anticipated investment income is considered in the calculation of premium deficiency losses for short-duration contracts. For purposes of determining premium deficiency losses, contracts are grouped in a manner consistent with our method of acquiring, servicing and measuring the profitability of such contracts. We did not have any premium deficiency reserves at December 31, 2014 or 2013. | ||
Health Care Contract Acquisition Costs | ||
Health care benefits products included in the Health Care segment are cancelable by either the customer or the member monthly upon written notice. Acquisition costs related to our prepaid health care and health indemnity contracts are generally expensed as incurred. At December 31, 2014 and 2013, the balance of our deferred acquisition costs was approximately $222 million and $137 million, respectively, comprised primarily of commissions paid on our Medicare Supplement products. Deferred acquisition costs are amortized over the estimated life of the contracts. | ||
Revenue Recognition and Allowance for Estimated Terminations and Uncollectible Accounts | ||
Health care premiums are recognized as income in the month in which the enrollee is entitled to receive health care services. Health care premiums are reported net of an allowance for estimated terminations and uncollectible amounts. Additionally, premium revenue subject to the minimum MLR rebate requirements of Health Care Reform is recorded net of the estimated minimum MLR rebates for the current calendar year. Other premium revenue for group life, long-term care and disability products is recognized as income, net of allowances for termination and uncollectible accounts, over the term of the coverage. Other premium revenue for Large Case Pensions’ limited payment pension and annuity contracts is recognized as revenue in the period received. Premiums related to unexpired contractual coverage periods are reported as unearned premiums in our balance sheets. | ||
The balance of the allowance for estimated terminations and uncollectible accounts on premiums receivable was $141 million and $90 million at December 31, 2014 and 2013, respectively, and is reflected as a reduction of premiums receivable in our balance sheets. The balance of the allowance for uncollectible accounts on other receivables was $17 million and $34 million at December 31, 2014 and 2013, respectively, and is reflected as a reduction of other receivables in our balance sheets. | ||
Some of our contracts allow for premiums to be adjusted to reflect actual experience or the relative health status of members. Such adjustments are reasonably estimable at the outset of the contract, and adjustments to those estimates are made based on actual experience of the customer emerging under the contract and the terms of the underlying contract. | ||
Fees and other revenue consists primarily of ASC fees which are received in exchange for performing certain claim processing and member services for health and disability members and are recognized as revenue over the period the service is provided. Fees and other revenue also includes fees related to our workers’ compensation administrative services products and services. Some of our contracts include guarantees with respect to certain functions, such as customer service response time, claim processing accuracy and claim processing turnaround time, as well as certain guarantees that a plan sponsor’s benefit claim experience will fall within a certain range. With any of these guarantees, we are financially at risk if the conditions of the arrangements are not met, although the maximum amount at risk is typically limited to a percentage of the fees otherwise payable to us by the customer involved. Each period we estimate our obligations under the terms of these guarantees and record it as an offset to our ASC fees. | ||
In addition, fees and other revenue also include charges assessed against contract holders’ funds for contract fees, participant fees and asset charges related to pension and annuity products in the Large Case Pensions business. Other amounts received on pension and annuity investment-type contracts are reflected as deposits and are not recorded as revenue. Some of our Large Case Pension contract holders have the contractual right to purchase annuities with life contingencies using the funds they maintain on deposit with us. Since these products are considered an insurance contract, when the contract holder makes this election, we treat the accumulated investment balance as a single premium and reflect it as both premiums and current and future benefits in our statements of income. | ||
Accounting for certain provisions of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, “Health Care Reform” or the “ACA”) | ||
We are participating in certain public health insurance exchanges established pursuant to Health Care Reform (“Public Exchanges”). Under regulations established by the U.S. Department of Health and Human Services (“HHS”), HHS pays us a portion of the premium (“Premium Subsidy”) and a portion of the health care costs (“Cost Sharing Subsidy”) for low-income individual Public Exchange members. In addition, HHS administers certain risk management programs as described below. | ||
We recognize monthly premiums received from Public Exchange members and the Premium Subsidy as premium revenue ratably over the contract period. The Cost Sharing Subsidy offsets health care costs when incurred. We record a liability if the Cost Sharing Subsidy is paid in advance or a receivable if incurred health care costs exceed the Cost Sharing Subsidy received to date. | ||
Accounting for Health Care Reform’s Reinsurance, Risk Adjustment and Risk Corridor (the “3Rs”) | ||
Reinsurance | ||
Health Care Reform established a temporary three-year reinsurance program, under which all issuers of major medical commercial insurance products and self-insured plan sponsors are required to contribute funding in amounts set by HHS. Funds collected will be utilized to reimburse issuers’ high claims costs incurred for qualified individual members. The expense related to this required funding is reflected in general and administrative expenses for all of our insurance products with the exception of products associated with qualified individual members; this expense for qualified individual members is reflected as a reduction of premium revenue. When annual claim costs incurred by our qualified individual members exceed a specified attachment point, we are entitled to certain reimbursements from this program. We record a receivable and offset health care costs to reflect our estimate of these recoveries. At December 31, 2014, we recorded a receivable under the temporary three-year reinsurance program of approximately $338 million. | ||
Risk Adjustment | ||
Health Care Reform established a permanent risk adjustment program to transfer funds from qualified individual and small group insurance plans with below average risk scores to plans with above average risk scores. Based on the risk of our qualified plan members relative to the average risk of members of other qualified plans in comparable markets, we estimate our ultimate 2014 risk adjustment receivable or payable and reflect the pro-rata year-to-date impact as an adjustment to our premium revenue. At December 31, 2014, we recorded a net payable of approximately $230 million under the risk adjustment program. | ||
Risk Corridor | ||
Health Care Reform established a temporary three-year risk sharing program for qualified individual and small group insurance plans. Under this program we make (or receive) a payment to (or from) HHS based on the ratio of allowable costs to target costs (as defined by Health Care Reform). We record a risk corridor receivable or payable as an adjustment to premium revenue on a pro-rata year-to-date basis based on our estimate of the ultimate 2014 risk sharing amount. At December 31, 2014, we did not record any Health Care Reform risk corridor receivables because payments from HHS under this program are uncertain, and we recorded an immaterial Health Care Reform risk corridor payable. | ||
We will perform a final reconciliation and settlement with HHS of the 2014 Cost Sharing Subsidy and 3Rs during 2015. | ||
Accounting for the Medicare Part D Prescription Drug Program Plans (“PDPs”) | ||
We were selected by the Centers for Medicare & Medicaid Services (“CMS”) to be a national provider of PDP in all 50 states to both individuals and employer groups in 2014, 2013 and 2012. Under these annual contracts, CMS pays us a portion of the premium, a portion of, or a capitated fee for, catastrophic drug costs and a portion of the health care costs for low-income Medicare beneficiaries and provides a risk-sharing arrangement to limit our exposure to unexpected expenses. | ||
We recognize premiums received from, or on behalf of, members or CMS and capitated fees as premium revenue ratably over the contract period. We expense the cost of covered prescription drugs as incurred. Costs associated with low-income Medicare beneficiaries (deductible, coinsurance, etc.) and the catastrophic drug costs paid in advance by CMS are recorded as a liability and offset health care costs when incurred. For individual PDP coverage, the risk-sharing arrangement provides a risk corridor whereby the amount we received in premiums from members and CMS based on our annual bid is compared to our actual drug costs incurred during the contract year. Based on the risk corridor provision and PDP activity-to-date, an estimated risk-sharing receivable or payable is recorded on a quarterly basis as an adjustment to premium revenue. We perform a reconciliation of the final risk-sharing, low-income subsidy and catastrophic amounts after the end of each contract year. | ||
Allocation of Operating Expenses | ||
We allocate to the business segments centrally-incurred costs associated with specific internal goods or services provided to us, such as employee services, technology services and rent, based on a reasonable method for each specific cost (such as membership, usage, headcount, compensation or square footage occupied). Interest expense on third-party borrowings and the financing components of our pension and other post-retirement benefit plan expense are not allocated to the reporting segments, since they are not used as a basis for measuring the operating performance of the segments. Such amounts are reflected in Corporate Financing in our segment financial information. Refer to Note 19 beginning on page 132 for additional information. | ||
Income Taxes | ||
We are taxed at the statutory corporate income tax rates after adjusting income reported for financial statement purposes for certain items. We recognize deferred income tax assets and liabilities for the differences between the financial and income tax reporting basis of assets and liabilities based on enacted tax rates and laws. Valuation allowances are provided when it is considered more likely than not that deferred tax assets will not be realized. Deferred income tax expense or benefit primarily reflects the net change in deferred income tax assets and liabilities during the year. | ||
Our current income tax provision reflects the tax results of revenues and expenses currently taxable or deductible. Penalties and interest on our tax positions are classified as a component of our income tax provision. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Business Combinations [Abstract] | ||||||||||
Acquisitions | ||||||||||
3 | Acquisitions; Completed Disposition | |||||||||
Acquisition of bSwift LLC | ||||||||||
In November 2014, we acquired bSwift LLC (“bSwift”) for approximately $400 million. bSwift provides a technology platform that offers a retail shopping experience for health insurance exchanges and employees nationwide, and provides benefit administration technology and services to employers. We preliminarily recorded goodwill related to this transaction of approximately $318 million, none of which will be tax deductible. All of the goodwill related to this acquisition was assigned to our Health Care segment. | ||||||||||
Acquisition of the InterGlobal Group | ||||||||||
In April 2014, we acquired the InterGlobal group (“InterGlobal”), a company that specializes in international private medical insurance for groups and individuals in the Middle East, Asia, Africa and Europe. The purchase price was not material, and the goodwill related to this acquisition was assigned to our Health Care segment. | ||||||||||
Acquisition of Coventry | ||||||||||
On the Acquisition Date, we acquired Coventry in a transaction (the “Merger”) valued at approximately $8.7 billion, including the $1.8 billion fair value of Coventry’s outstanding long-term debt. | ||||||||||
Pro Forma Impact of the Acquisition of Coventry | ||||||||||
The following table presents supplemental pro forma information for the years ended December 31, 2013 and 2012, as if the Merger had occurred on January 1, 2012. The pro forma consolidated results are not necessarily indicative of what our consolidated results would have been had the Merger been completed on January 1, 2012. In addition, the pro forma consolidated results do not purport to project the future results of the combined company nor do they reflect the expected realization of any cost savings associated with the Merger. | ||||||||||
Year Ended December 31, | ||||||||||
(Millions, except per common share data) | 2013 | 2012 | ||||||||
Total revenue | $ | 52,089.30 | $ | 50,282.60 | ||||||
Net income attributable to Aetna | 2,144.60 | 2,115.10 | ||||||||
Earnings per share: | ||||||||||
Basic | 5.75 | 5.39 | ||||||||
Diluted | 5.69 | 5.33 | ||||||||
The unaudited pro forma consolidated results for the years ended December 31, 2013 and 2012 reflect the following pro forma adjustments: | ||||||||||
• | Elimination of intercompany transactions between Aetna and Coventry, primarily related to network rental fees. | |||||||||
• | Foregone interest income associated with cash and cash equivalents and investments assumed to have been used to partially fund the Merger. | |||||||||
• | Foregone interest income associated with adjusting the amortized cost of Coventry’s investment portfolio to fair value as of the completion of the Merger. | |||||||||
• | Elimination of historical Coventry intangible asset amortization expense and capitalized internal-use software amortization expense and addition of intangible asset amortization expense relating to intangibles valued as part of the acquisition. | |||||||||
• | Additional interest expense from the long-term debt Aetna issued in November 2012 as well as the interest expense on short-term debt Aetna issued in March and April 2013. Interest expense was reduced for the amortization of the fair value adjustment to long-term debt. | |||||||||
• | Elimination of transaction-related costs incurred by Aetna and Coventry during 2013 and 2012. | |||||||||
• | Adjustment of the above pro forma adjustments for the applicable tax impact. | |||||||||
• | Conforming adjustments to align Coventry’s presentation to Aetna’s accounting policies. | |||||||||
• | Elimination of revenue and directly identifiable costs related to the sale of Aetna’s Missouri Medicaid business, Missouri Care, Incorporated (“Missouri Care”), to WellCare Health Plans, Inc. on March 31, 2013. | |||||||||
Completed Disposition | ||||||||||
In connection with the acquisition of Coventry, on March 31, 2013, we completed the sale of Missouri Care to WellCare Health Plans, Inc. The sale price was not material, and the transaction did not have a material impact on our financial condition or operating results. |
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Common Share | ||||||||||||
4 | Earnings Per Common Share | |||||||||||
Basic earnings per share (“EPS”) is computed by dividing net income attributable to Aetna by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is computed in a similar manner, except that the weighted average number of common shares outstanding is adjusted for the dilutive effects of our outstanding stock-based compensation awards, but only if the effect is dilutive. | ||||||||||||
The computations of basic and diluted EPS for 2014, 2013 and 2012 are as follows: | ||||||||||||
(Millions, except per common share data) | 2014 | 2013 | 2012 | |||||||||
Net income attributable to Aetna | $ | 2,040.80 | $ | 1,913.60 | $ | 1,657.90 | ||||||
Weighted average shares used to compute basic EPS | 355.5 | 355.4 | 340.1 | |||||||||
Dilutive effect of outstanding stock-based compensation awards | 3.6 | 3.8 | 4.9 | |||||||||
Weighted average shares used to compute diluted EPS | 359.1 | 359.2 | 345 | |||||||||
Basic EPS | $ | 5.74 | $ | 5.38 | $ | 4.87 | ||||||
Diluted EPS | $ | 5.68 | $ | 5.33 | $ | 4.81 | ||||||
The stock-based compensation awards excluded from the calculation of diluted EPS for 2014, 2013 and 2012 are as follows: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||
Stock appreciation rights (“SARs”) (1) | 0.3 | 1.7 | 8.3 | |||||||||
Other stock-based compensation awards (2) | 1.2 | 1.8 | 0.7 | |||||||||
(1) | SARs are excluded from the calculation of diluted EPS if the exercise price is greater than the average market price of Aetna common shares during the period (i.e., the awards are anti-dilutive). | |||||||||||
(2) | Performance stock units ("PSUs"), certain market stock units ("MSUs") with performance conditions, and performance stock appreciation rights ("PSARs") are excluded from the calculation of diluted EPS if all necessary performance conditions have not been satisfied at the end of the reporting period (refer to Note 12 beginning on page 117 for additional information about PSARs). | |||||||||||
All outstanding stock options were included in the calculation of diluted EPS for 2014 and 2013, and the stock options not included in the calculation of diluted EPS for 2012 were not material. | ||||||||||||
In connection with the May 7, 2013 acquisition of Coventry, we issued approximately 52.2 million Aetna common shares in exchange for all the outstanding shares of Coventry common stock. Those Aetna common shares were outstanding, net of any subsequent share repurchases, and included in the calculation of weighted average shares used to compute basic EPS for the entire year ended December 31, 2014 and from the Acquisition Date through December 31, 2013 for the year ended December 31, 2013, and weighted accordingly. |
Operating_Expenses
Operating Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Operating Expenses [Abstract] | ||||||||||||
Operating Expenses | ||||||||||||
5 | Operating Expenses | |||||||||||
For 2014, 2013 and 2012, selling expenses (which include broker commissions, the variable component of our internal sales force compensation and premium taxes) and general and administrative expenses were as follows: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||
Selling expenses | $ | 1,653.00 | $ | 1,348.60 | $ | 1,105.50 | ||||||
General and administrative expenses: | ||||||||||||
Salaries and related benefits | 4,543.50 | 4,139.50 | 3,115.30 | |||||||||
Other general and administrative expenses (1) | 4,641.20 | 3,157.30 | 2,655.60 | |||||||||
Total general and administrative expenses (2) | 9,184.70 | 7,296.80 | 5,770.90 | |||||||||
Total operating expenses | $ | 10,837.70 | $ | 8,645.40 | $ | 6,876.40 | ||||||
(1) | In 2014, includes fees mandated by the ACA comprised primarily of the HIF of $605.3 million and our estimated contribution to the funding of the reinsurance program of $335.5 million. Refer to Note 2 beginning on page 80 for additional information on fees mandated by the ACA. | |||||||||||
(2) | In 2014, includes: a non-cash settlement charge incurred in connection with the Aetna Pension Plan of $111.6 million; transaction and integration-related costs of $200.7 million and a release of a litigation-related reserve of $103.0 million. In 2013, includes: transaction, integration-related and restructuring costs of $314.6 million and a reduction of expenses related to reversal of an allowance on a reinsurance recoverable of $42.2 million. In 2012, includes: a litigation-related charge of $120.0 million, transaction and integration-related costs of $16.2 million and a severance and facilities charge of $37.0 million. | |||||||||||
Refer to the reconciliation of operating earnings to net income attributable to Aetna in Note 19 beginning on page 132 for additional information. |
Health_Care_Costs_Payable
Health Care Costs Payable | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Health Care Costs Payable [Abstract] | ||||||||||||
Health Care Costs Payable | ||||||||||||
6 | Health Care Costs Payable | |||||||||||
The following table shows the components of the change in health care costs payable during 2014, 2013 and 2012: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||
Health care costs payable, beginning of the period | $ | 4,547.40 | $ | 2,992.50 | $ | 2,675.50 | ||||||
Less: Reinsurance recoverables | 8.5 | 3.8 | 3.3 | |||||||||
Health care costs payable, beginning of the period, net | 4,538.90 | 2,988.70 | 2,672.20 | |||||||||
Acquisition of businesses | 29.2 | 1,417.20 | — | |||||||||
Add: Components of incurred health care costs | ||||||||||||
Current year | 41,327.50 | 33,344.80 | 23,875.60 | |||||||||
Prior years | (580.8 | ) | (448.8 | ) | (146.7 | ) | ||||||
Total incurred health care costs | 40,746.70 | 32,896.00 | 23,728.90 | |||||||||
Less: Claims paid | ||||||||||||
Current year | 35,850.70 | 30,112.70 | 21,067.70 | |||||||||
Prior years | 3,848.80 | 2,608.00 | 2,344.70 | |||||||||
Total claims paid | 39,699.50 | 32,720.70 | 23,412.40 | |||||||||
Disposition of business | — | (42.3 | ) | — | ||||||||
Health care costs payable, end of period, net | 5,615.30 | 4,538.90 | 2,988.70 | |||||||||
Add: Reinsurance recoverables | 5.8 | 8.5 | 3.8 | |||||||||
Health care costs payable, end of the period | $ | 5,621.10 | $ | 4,547.40 | $ | 2,992.50 | ||||||
Our estimates of prior years’ health care costs payable decreased by approximately $581 million, $449 million and $147 million in 2014, 2013 and 2012, respectively, resulting from claims being settled for amounts less than originally estimated, primarily due to lower health care cost trends as well as the actual claim submission time being faster than we assumed in establishing our health care costs payable in the prior year. This development does not directly correspond to an increase in our current year operating results as these reductions were offset by estimated current period health care costs when we established our estimate of the current year health care costs payable. | ||||||||||||
The acquisition of Coventry resulted in a $1.4 billion increase in health care costs payable at the Acquisition Date which significantly impacts the year-over-year comparability of changes in health care costs payable (refer to Note 3 beginning on page 90 for additional information). |
Goodwill_and_Other_Acquired_In
Goodwill and Other Acquired Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Other Acquired Intangible Assets | |||||||||||||||||
7 | Goodwill and Other Acquired Intangible Assets | ||||||||||||||||
As discussed in Note 3, we completed the acquisitions of InterGlobal and bSwift in 2014 as well as the Coventry acquisition in 2013. In accordance with applicable accounting guidance, we allocated the amount paid to the fair value of the net assets acquired, with any excess amounts recorded as goodwill. The change in goodwill in 2014 and 2013 is as follows: | |||||||||||||||||
(Millions) | 2014 | 2013 | |||||||||||||||
Balance, beginning of the period | $ | 10,227.50 | $ | 6,214.40 | |||||||||||||
Goodwill acquired: | |||||||||||||||||
bSwift (1) | 318 | — | |||||||||||||||
InterGlobal | 67.7 | — | |||||||||||||||
Coventry | — | 4,014.80 | |||||||||||||||
Other | — | (1.7 | ) | ||||||||||||||
Balance, end of the period (2) | $ | 10,613.20 | $ | 10,227.50 | |||||||||||||
(1) | Goodwill related to the acquisition of bSwift is considered preliminary, pending the final allocation of the applicable purchase price. | ||||||||||||||||
(2) | At both December 31, 2014 and 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | ||||||||||||||||
Other acquired intangible assets at December 31, 2014 and 2013 were comprised of the following: | |||||||||||||||||
(Millions) | Cost | Accumulated | Net Balance | Amortization | |||||||||||||
Amortization | Period (Years) | ||||||||||||||||
2014 | |||||||||||||||||
Provider networks | $ | 1,254.10 | $ | 570.4 | $ | 683.7 | 25-Dec | (1) | |||||||||
Customer lists | 1,319.50 | (2) | 413.6 | 905.9 | 14-May | (1) | |||||||||||
Value of business acquired | 149.2 | 65.3 | 83.9 | 20 | (3) | ||||||||||||
Technology | 188.2 | (2) | 74 | 114.2 | 10-Apr | ||||||||||||
Other | 10.5 | 2.7 | 7.8 | 15-Feb | |||||||||||||
Definite-lived trademarks | 172.4 | (2) | 41.9 | 130.5 | 20-May | ||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 3,116.20 | $ | 1,167.90 | $ | 1,948.30 | |||||||||||
2013 | |||||||||||||||||
Provider networks | $ | 1,253.20 | $ | 508.8 | $ | 744.4 | 25-Dec | (1) | |||||||||
Customer lists | 1,347.00 | 361.8 | 985.2 | 14-May | (1) | ||||||||||||
Value of business acquired | 149.2 | 48.5 | 100.7 | 20 | (3) | ||||||||||||
Technology | 146.6 | 49.5 | 97.1 | 10-Apr | |||||||||||||
Other | 6.7 | 1.8 | 4.9 | 15-Feb | |||||||||||||
Definite-lived trademarks | 165 | 25.5 | 139.5 | 20-Sep | |||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 3,090.00 | $ | 995.9 | $ | 2,094.10 | |||||||||||
(1) | The amortization period for our provider networks and customer lists includes an assumption of renewal or extension of these arrangements. At both December 31, 2014 and 2013, the periods prior to the next renewal or extension for our provider networks primarily ranged from 1 to 3 years, and the period prior to the next renewal or extension for our customer lists was approximately 1 year. Any costs related to the renewal or extension of these contracts are expensed as incurred. | ||||||||||||||||
(2) | As a result of our acquisition of bSwift in 2014, we preliminarily assigned $41.6 million to technology, $25.8 million to customer lists, and $6.2 million to definite-lived trademarks. | ||||||||||||||||
(3) | VOBA is being amortized over the expected life of the acquired contracts in proportion to estimated premium. | ||||||||||||||||
We estimate annual pretax amortization for other acquired intangible assets over the next five years to be as follows: | |||||||||||||||||
(Millions) | |||||||||||||||||
2015 | $ | 254.5 | |||||||||||||||
2016 | 248 | ||||||||||||||||
2017 | 233.6 | ||||||||||||||||
2018 | 197.6 | ||||||||||||||||
2019 | 191.6 | ||||||||||||||||
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||
8 | Investments | |||||||||||||||||||||||
Total investments at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(Millions) | Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||
Debt and equity securities available for sale | $ | 2,463.80 | $ | 18,977.90 | $ | 21,441.70 | $ | 1,977.40 | $ | 17,753.00 | $ | 19,730.40 | ||||||||||||
Mortgage loans | 124.2 | 1,438.00 | 1,562.20 | 84.9 | 1,464.70 | 1,549.60 | ||||||||||||||||||
Other investments | 7.2 | 1,778.00 | 1,785.20 | 1.5 | 1,717.30 | 1,718.80 | ||||||||||||||||||
Total investments | $ | 2,595.20 | $ | 22,193.90 | $ | 24,789.10 | $ | 2,063.80 | $ | 20,935.00 | $ | 22,998.80 | ||||||||||||
At December 31, 2014, approximately $202 million of investments were pledged as collateral under repurchase agreements. We did not have any repurchase agreements outstanding at December 31, 2013. At December 31, 2014 and 2013, approximately $798 million and $766 million, respectively, of investments were pledged under securities loan agreements. | ||||||||||||||||||||||||
At December 31, 2014 and 2013, we held investments of approximately $778 million and $794 million, respectively, related to the 2012 conversion of an existing group annuity contract from a participating to a non-participating contract. These investments are included in the total investments of our Large Case Pensions segment supporting non-experience-rated products. Although these investments are not accounted for as separate accounts assets, they are legally segregated and are not subject to claims that arise out of our business and only support Aetna’s future policy benefits obligations under that group annuity contract. Refer to Notes 2 and 19 beginning on pages 80 and 132 for additional information. | ||||||||||||||||||||||||
Debt and Equity Securities | ||||||||||||||||||||||||
Debt and equity securities available for sale at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
(Millions) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,301.20 | $ | 96.3 | $ | (.6 | ) | $ | 1,396.90 | |||||||||||||||
States, municipalities and political subdivisions | 4,540.00 | 277.2 | (7.8 | ) | 4,809.40 | |||||||||||||||||||
U.S. corporate securities | 8,033.20 | 606.8 | (33.6 | ) | 8,606.40 | |||||||||||||||||||
Foreign securities | 3,343.60 | 267 | (18.3 | ) | 3,592.30 | |||||||||||||||||||
Residential mortgage-backed securities | 902.7 | 28.9 | (3.9 | ) | 927.7 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,324.60 | 52.8 | (1.6 | ) | (1) | 1,375.80 | ||||||||||||||||||
Other asset-backed securities | 644.7 | 5.8 | (6.5 | ) | (1) | 644 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 12.5 | — | 69.3 | ||||||||||||||||||||
Total debt securities | 20,146.80 | 1,347.30 | (72.3 | ) | 21,421.80 | |||||||||||||||||||
Equity securities | 23.3 | 0.4 | (3.8 | ) | 19.9 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 20,170.10 | $ | 1,347.70 | $ | (76.1 | ) | $ | 21,441.70 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,396.80 | $ | 68.7 | $ | (3.0 | ) | $ | 1,462.50 | |||||||||||||||
States, municipalities and political subdivisions | 4,118.50 | 126.6 | (82.8 | ) | 4,162.30 | |||||||||||||||||||
U.S. corporate securities | 7,559.00 | 493.7 | (110.1 | ) | 7,942.60 | |||||||||||||||||||
Foreign securities | 3,209.60 | 198.9 | (53.0 | ) | 3,355.50 | |||||||||||||||||||
Residential mortgage-backed securities | 928.4 | 16.9 | (21.1 | ) | 924.2 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,323.50 | 88.2 | (4.7 | ) | (1) | 1,407.00 | ||||||||||||||||||
Other asset-backed securities | 343.4 | 8.3 | (2.1 | ) | (1) | 349.6 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 8.6 | — | 65.4 | ||||||||||||||||||||
Total debt securities | 18,936.00 | 1,009.90 | (276.8 | ) | 19,669.10 | |||||||||||||||||||
Equity securities | 38.5 | 26.5 | (3.7 | ) | 61.3 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 18,974.50 | $ | 1,036.40 | $ | (280.5 | ) | $ | 19,730.40 | |||||||||||||||
(1) | At December 31, 2014 and 2013, we held securities for which we previously recognized $18.6 million and $22.8 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at December 31, 2014 and 2013 of $3.6 million and $6.6 million, respectively. | |||||||||||||||||||||||
(2) | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 20 beginning on page 135 for additional information on our accounting for discontinued products). At December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million and, at December 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. | |||||||||||||||||||||||
The fair value of debt securities at December 31, 2014 is shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid. | ||||||||||||||||||||||||
(Millions) | Fair | |||||||||||||||||||||||
Value | ||||||||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | 1,163.40 | ||||||||||||||||||||||
One year through five years | 5,551.60 | |||||||||||||||||||||||
After five years through ten years | 5,754.80 | |||||||||||||||||||||||
Greater than ten years | 6,004.50 | |||||||||||||||||||||||
Residential mortgage-backed securities | 927.7 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,375.80 | |||||||||||||||||||||||
Other asset-backed securities | 644 | |||||||||||||||||||||||
Total | $ | 21,421.80 | ||||||||||||||||||||||
Mortgage-Backed and Other Asset-Backed Securities | ||||||||||||||||||||||||
All of our residential mortgage-backed securities at December 31, 2014 were issued by the Government National Mortgage Association, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and carry agency guarantees and explicit or implicit guarantees by the U.S. Government. At December 31, 2014, our residential mortgage-backed securities had an average credit quality rating of AAA and a weighted average duration of 3.6 years. | ||||||||||||||||||||||||
Our commercial mortgage-backed securities have underlying loans that are dispersed throughout the United States. Significant market observable inputs used to value these securities include loss severity and probability of default. At December 31, 2014, these securities had an average credit quality rating of AA+ and a weighted average duration of 2.0 years. | ||||||||||||||||||||||||
Our other asset-backed securities have a variety of underlying collateral (e.g., automobile loans, credit card receivables, home equity loans and commercial loans). Significant market observable inputs used to value these securities include the unemployment rate, loss severity and probability of default. At December 31, 2014, these securities had an average credit quality rating of A+ and a weighted average duration of 1.7 years. | ||||||||||||||||||||||||
Unrealized Capital Losses and Net Realized Capital Gains (Losses) | ||||||||||||||||||||||||
When a debt or equity security is in an unrealized capital loss position, we monitor the duration and severity of the loss to determine if sufficient market recovery can occur within a reasonable period of time. We recognize an other-than-temporary impairment (“OTTI”) when we intend to sell a debt security that is in an unrealized capital loss position or if we determine a credit-related loss on a debt or equity security has occurred. | ||||||||||||||||||||||||
Summarized below are the debt and equity securities we held at December 31, 2014 and 2013 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position: | ||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total (1) | ||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 20.6 | $ | 0.1 | $ | 19.8 | $ | 0.5 | $ | 40.4 | $ | 0.6 | ||||||||||||
States, municipalities and political subdivisions | 457.4 | 2.2 | 347.4 | 5.6 | 804.8 | 7.8 | ||||||||||||||||||
U.S. corporate securities | 1,074.10 | 19.9 | 515.2 | 13.7 | 1,589.30 | 33.6 | ||||||||||||||||||
Foreign securities | 540 | 12.8 | 148 | 5.5 | 688 | 18.3 | ||||||||||||||||||
Residential mortgage-backed securities | 3.9 | 0.1 | 166.9 | 3.8 | 170.8 | 3.9 | ||||||||||||||||||
Commercial mortgage-backed securities | 181.5 | 0.7 | 69 | 0.9 | 250.5 | 1.6 | ||||||||||||||||||
Other asset-backed securities | 373.1 | 6.1 | 21.3 | 0.4 | 394.4 | 6.5 | ||||||||||||||||||
Redeemable preferred securities | 3 | — | — | — | 3 | — | ||||||||||||||||||
Total debt securities | 2,653.60 | 41.9 | 1,287.60 | 30.4 | 3,941.20 | 72.3 | ||||||||||||||||||
Equity securities | 8 | — | 1.4 | 3.8 | 9.4 | 3.8 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 2,661.60 | $ | 41.9 | $ | 1,289.00 | $ | 34.2 | $ | 3,950.60 | $ | 76.1 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 555.9 | $ | 2.7 | $ | 13.4 | $ | 0.3 | $ | 569.3 | $ | 3 | ||||||||||||
States, municipalities and political subdivisions | 1,779.90 | 73.1 | 132.4 | 9.7 | 1,912.30 | 82.8 | ||||||||||||||||||
U.S. corporate securities | 2,196.80 | 88 | 170 | 22.1 | 2,366.80 | 110.1 | ||||||||||||||||||
Foreign securities | 875.2 | 43.5 | 90.9 | 9.5 | 966.1 | 53 | ||||||||||||||||||
Residential mortgage-backed securities | 541.1 | 17.3 | 35 | 3.8 | 576.1 | 21.1 | ||||||||||||||||||
Commercial mortgage-backed securities | 162.4 | 4.2 | 25 | 0.5 | 187.4 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 87.8 | 1.9 | 7.7 | 0.2 | 95.5 | 2.1 | ||||||||||||||||||
Redeemable preferred securities | 4.4 | — | — | — | 4.4 | — | ||||||||||||||||||
Total debt securities | 6,203.50 | 230.7 | 474.4 | 46.1 | 6,677.90 | 276.8 | ||||||||||||||||||
Equity securities | — | — | 16.2 | 3.7 | 16.2 | 3.7 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 6,203.50 | $ | 230.7 | $ | 490.6 | $ | 49.8 | $ | 6,694.10 | $ | 280.5 | ||||||||||||
(1) | At December 31, 2014 and 2013, debt and equity securities in an unrealized capital loss position of $16.7 million and $60.3 million, respectively, and with related fair value of $402.7 million and $1.0 billion, respectively, related to experience-rated and discontinued products. | |||||||||||||||||||||||
We reviewed the securities in the tables above and concluded that these are performing assets generating investment income to support the needs of our business. In performing this review, we considered factors such as the quality of the investment security based on research performed by our internal credit analysts and external rating agencies and the prospects of realizing the carrying value of the security based on the investment’s current prospects for recovery. At December 31, 2014, we did not intend to sell these securities, and we did not believe it was more likely than not that we would be required to sell these securities prior to anticipated recovery of their amortized cost basis. | ||||||||||||||||||||||||
The maturity dates for debt securities in an unrealized capital loss position at December 31, 2014 were as follows: | ||||||||||||||||||||||||
Supporting discontinued | Supporting remaining | Total | ||||||||||||||||||||||
and experience-rated products | products | |||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | $ | 69.5 | $ | 0.3 | $ | 69.5 | $ | 0.3 | ||||||||||||
One year through five years | 50.4 | 0.4 | 1,055.50 | 9.5 | 1,105.90 | 9.9 | ||||||||||||||||||
After five years through ten years | 182.7 | 5.2 | 1,150.20 | 23.5 | 1,332.90 | 28.7 | ||||||||||||||||||
Greater than ten years | 152.8 | 7.2 | 464.4 | 14.2 | 617.2 | 21.4 | ||||||||||||||||||
Residential mortgage-backed securities | — | — | 170.8 | 3.9 | 170.8 | 3.9 | ||||||||||||||||||
Commercial mortgage-backed securities | 15.4 | — | 235.1 | 1.6 | 250.5 | 1.6 | ||||||||||||||||||
Other asset-backed securities | — | — | 394.4 | 6.5 | 394.4 | 6.5 | ||||||||||||||||||
Total | $ | 401.3 | $ | 12.8 | $ | 3,539.90 | $ | 59.5 | $ | 3,941.20 | $ | 72.3 | ||||||||||||
Net realized capital gains (losses) for the three years ended December 31, 2014, 2013 and 2012, excluding amounts related to experience-rated contract holders and discontinued products, were as follows: | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
OTTI losses on debt securities | $ | (4.6 | ) | $ | (36.6 | ) | $ | (10.9 | ) | |||||||||||||||
Portion of OTTI losses on debt securities recognized | — | — | 0.1 | |||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||
Net OTTI losses on debt securities recognized in earnings | (4.6 | ) | (36.6 | ) | (10.8 | ) | ||||||||||||||||||
Net realized capital gains, excluding OTTI losses on debt securities | 85 | 27.8 | 119.5 | |||||||||||||||||||||
Net realized capital gains (losses) | $ | 80.4 | $ | (8.8 | ) | $ | 108.7 | |||||||||||||||||
The net realized capital gains in 2014 were primarily attributable to gains from the sales of debt and equity securities. The net realized capital losses in 2013 were primarily attributable to yield-related OTTI on debt securities, primarily on U.S. Treasury securities that we had the intent to sell, partially offset by gains from the sales of debt securities. The net realized capital gains in 2012 were primarily attributable to the sale of debt securities partially offset by losses on derivative transactions. | ||||||||||||||||||||||||
Yield-related impairments are recognized in other comprehensive income unless we have the intention to sell the security in an unrealized loss position, in which case the yield-related OTTI is recognized in earnings. Yield-related OTTI losses were not significant in 2014 or 2012. In 2013, we recognized yield-related OTTI losses of $33 million related to our debt securities. We had no other individually material realized capital losses on debt or equity securities that impacted our operating results during 2014, 2013 or 2012. | ||||||||||||||||||||||||
Excluding amounts related to experience-rated and discontinued products, proceeds from the sale of debt securities and the related gross realized capital gains and losses for 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Proceeds on sales | $ | 4,727.70 | $ | 6,524.80 | $ | 5,819.20 | ||||||||||||||||||
Gross realized capital gains | 91.1 | 113.9 | 171.7 | |||||||||||||||||||||
Gross realized capital losses | 35.5 | 100 | 17.4 | |||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||
Our mortgage loans are collateralized by commercial real estate. During 2014 and 2013 we had the following activity in our mortgage loan portfolio: | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||||||||||||
New mortgage loans | $ | 217 | $ | 195 | ||||||||||||||||||||
Mortgage loans fully-repaid | 133.7 | 222 | ||||||||||||||||||||||
Mortgage loans foreclosed | — | 8.5 | ||||||||||||||||||||||
At December 31, 2014 and 2013, we had no material problem, restructured or potential problem mortgage loans. We also had no material impairment reserves on these loans at December 31, 2014 or 2013. | ||||||||||||||||||||||||
We assess our mortgage loans on a regular basis for credit impairments, and annually assign a credit quality indicator to each loan. Our credit quality indicator is internally developed and categorizes our portfolio on a scale from 1 to 7. Category 1 represents loans of superior quality, and Categories 6 and 7 represent loans where collections are potentially at risk. The vast majority of our mortgage loans fall into the Level 2 to 4 ratings. These ratings represent loans where credit risk is minimal to acceptable; however, these loans may display some susceptibility to economic changes. Category 5 represents loans where credit risk is not substantial but these loans warrant management’s close attention. These indicators are based upon several factors, including current loan to value ratios, property condition, market trends, creditworthiness of the borrower and deal structure. Based upon our most recent assessments at December 31, 2014 and 2013, our mortgage loans were given the following credit quality indicators: | ||||||||||||||||||||||||
(In Millions, except credit ratings indicator) | 2014 | 2013 | ||||||||||||||||||||||
1 | $ | 59.7 | $ | 69.2 | ||||||||||||||||||||
2 to 4 | 1,443.40 | 1,399.60 | ||||||||||||||||||||||
5 | 18.6 | 30.6 | ||||||||||||||||||||||
6 and 7 | 40.5 | 50.2 | ||||||||||||||||||||||
Total | $ | 1,562.20 | $ | 1,549.60 | ||||||||||||||||||||
At December 31, 2014 scheduled mortgage loan principal repayments were as follows: | ||||||||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
2015 | $ | 127.6 | ||||||||||||||||||||||
2016 | 188.3 | |||||||||||||||||||||||
2017 | 220.5 | |||||||||||||||||||||||
2018 | 171.2 | |||||||||||||||||||||||
2019 | 100.3 | |||||||||||||||||||||||
Thereafter | 763 | |||||||||||||||||||||||
Variable Interest Entities | ||||||||||||||||||||||||
In determining whether to consolidate a variable interest entity (“VIE”), we consider several factors including whether we have the power to direct activities, the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIE. We have relationships with certain real estate partnerships and one hedge fund partnership that are considered VIEs, but are not consolidated. We record the amount of our investment in these partnerships as long-term investments on our balance sheets and recognize our share of partnership income or losses in earnings. Our maximum exposure to loss as a result of our investment in these partnerships is our investment balance at December 31, 2014 and 2013 of approximately $209 million and $205 million, respectively, and the risk of recapture of tax credits related to the real estate partnerships previously recognized, which we do not consider significant. We do not have a future obligation to fund losses or debts on behalf of these investments; however, we may voluntarily contribute funds. The real estate partnerships construct, own and manage low-income housing developments and had total assets of approximately $5.7 billion and $5.8 billion at December 31, 2014 and 2013, respectively. The hedge fund partnership had total assets of approximately $7.1 billion and $7.0 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
Non-controlling (Minority) Interests | ||||||||||||||||||||||||
At December 31, 2014 and 2013, continuing business non-controlling interests were approximately $69 million and $53 million, respectively, primarily related to third party interests in our investment holdings as well as third party interests in certain of our operating entities. The non-controlling entities’ share was included in total equity. In 2014 and 2012, net income attributable to non-controlling interests was $4.4 million and $1.9 million, respectively. Net loss attributable to non-controlling interests was $1.7 million in 2013. These non-controlling interests did not have a material impact on our financial condition or operating results. | ||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||
Sources of net investment income for 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Debt securities | $ | 800.8 | $ | 768.5 | $ | 763.7 | ||||||||||||||||||
Mortgage loans | 108.2 | 99.4 | 122.4 | |||||||||||||||||||||
Other investments | 76.4 | 86.1 | 70.7 | |||||||||||||||||||||
Gross investment income | 985.4 | 954 | 956.8 | |||||||||||||||||||||
Investment expenses | (39.5 | ) | (37.7 | ) | (34.6 | ) | ||||||||||||||||||
Net investment income (1) | $ | 945.9 | $ | 916.3 | $ | 922.2 | ||||||||||||||||||
(1) | Net investment income includes $289.1 million, $293.5 million and $324.2 million for 2014, 2013 and 2012, respectively, related to investments supporting our experience-rated and discontinued products. |
Other_Comprehensive_Loss_Incom
Other Comprehensive (Loss) Income | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Other Comprehensive (Loss) Income | |||||||||||||||||||||
9 | Other Comprehensive (Loss) Income | ||||||||||||||||||||
Shareholders’ equity included the following activity in accumulated other comprehensive loss in 2014, 2013 and 2012: | |||||||||||||||||||||
Net Unrealized Gains (Losses) | Total | ||||||||||||||||||||
Accumulated | |||||||||||||||||||||
Other | |||||||||||||||||||||
Securities | Foreign | Pension and OPEB Plans | Comprehensive | ||||||||||||||||||
Currency | (Loss) Income | ||||||||||||||||||||
and | |||||||||||||||||||||
(Millions) | Previously | All Other | Derivatives | ||||||||||||||||||
Impaired (1) | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 58.2 | $ | 595.2 | $ | (33.7 | ) | $ | (1,808.9 | ) | $ | (1,189.2 | ) | ||||||||
Other comprehensive (loss) income | (.9 | ) | 230 | 4.2 | (77.5 | ) | 155.8 | ||||||||||||||
Balance at December 31, 2012 | 57.3 | 825.2 | (29.5 | ) | (1,886.4 | ) | (1,033.4 | ) | |||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||
before reclassifications | (47.2 | ) | (522.1 | ) | 26.4 | 565.1 | 22.2 | ||||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||
other comprehensive income | 24.1 | (2) | 23.7 | (2) | 3.5 | (3) | 47.8 | (4) | 99.1 | ||||||||||||
Other comprehensive (loss) income | (23.1 | ) | (498.4 | ) | 29.9 | 612.9 | 121.3 | ||||||||||||||
Balance at December 31, 2013 | 34.2 | 326.8 | 0.4 | (1,273.5 | ) | (912.1 | ) | ||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||
before reclassifications | 0.9 | 236.9 | (58.6 | ) | (480.6 | ) | (301.4 | ) | |||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||
other comprehensive income | (.2 | ) | (2) | 4.3 | (2) | (2.7 | ) | (3) | 100.8 | (4) | 102.2 | ||||||||||
Other comprehensive income (loss) | 0.7 | 241.2 | (61.3 | ) | (379.8 | ) | (199.2 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 34.9 | $ | 568 | $ | (60.9 | ) | $ | (1,653.3 | ) | $ | (1,111.3 | ) | ||||||||
-1 | Represents unrealized gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. | ||||||||||||||||||||
-2 | Reclassifications out of accumulated other comprehensive income for previously impaired debt securities and all other securities are reflected in net realized capital gains (losses) within the Consolidated Statements of Income. | ||||||||||||||||||||
-3 | Reclassifications out of accumulated other comprehensive income for foreign currency gains (losses) and derivatives are reflected in net realized capital gains (losses) within the Consolidated Statements of Income, except for the effective portion of derivatives related to interest rate swaps which are reflected in interest expense and were not material during 2014 or 2013. Refer to Note 14 of Notes to Consolidated Financial Statements beginning on page 123 for additional information. | ||||||||||||||||||||
-4 | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statements of Income. During 2014, our reclassifications out of accumulated other comprehensive income for the Aetna Pension Plan reflect a pension settlement charge of $72.5 million ($111.6 million pretax). (Refer to Note 11 beginning on page 109 for additional information). | ||||||||||||||||||||
Refer to the Consolidated Statements of Comprehensive Income on page 75 for additional information regarding reclassifications out of accumulated other comprehensive income on a pretax basis. | |||||||||||||||||||||
The components of our pension and other postretirement employee benefit (“OPEB”) plans included the following activity in accumulated other comprehensive loss in 2014, 2013 and 2012: | |||||||||||||||||||||
Pension Plans | OPEB Plans | ||||||||||||||||||||
Unrecognized | Unrecognized | Unrecognized | Unrecognized | ||||||||||||||||||
Net Actuarial | Prior Service | Net Actuarial | Prior Service | ||||||||||||||||||
(Millions) | Losses | Credits | Losses | Credits | Total | ||||||||||||||||
Balance at December 31, 2011 | $ | (1,778.3 | ) | $ | 1.5 | $ | (56.3 | ) | $ | 24.2 | $ | (1,808.9 | ) | ||||||||
Unrealized net losses arising during | |||||||||||||||||||||
the period ($(189.8) pretax) | (130.4 | ) | — | 7 | — | (123.4 | ) | ||||||||||||||
Reclassification to earnings ($(70.6) pretax) | 45.7 | (.3 | ) | 2.9 | (2.4 | ) | 45.9 | ||||||||||||||
Balance at December 31, 2012 | (1,863.0 | ) | 1.2 | (46.4 | ) | 21.8 | (1,886.4 | ) | |||||||||||||
Unrealized net gains arising during | |||||||||||||||||||||
the period ($869.3 pretax) | 550.1 | — | 15 | — | 565.1 | ||||||||||||||||
Reclassification to earnings ($(73.6) pretax) | 49 | (.3 | ) | 1.5 | (2.4 | ) | 47.8 | ||||||||||||||
Balance at December 31, 2013 | (1,263.9 | ) | 0.9 | (29.9 | ) | 19.4 | (1,273.5 | ) | |||||||||||||
Unrealized net losses arising during | |||||||||||||||||||||
the period ($(739.4) pretax) | (460.0 | ) | — | (20.6 | ) | — | (480.6 | ) | |||||||||||||
Reclassification to earnings ($(155.2) pretax) | 102.9 | (.2 | ) | 0.6 | (2.5 | ) | 100.8 | ||||||||||||||
Balance at December 31, 2014 | $ | (1,621.0 | ) | $ | 0.7 | $ | (49.9 | ) | $ | 16.9 | $ | (1,653.3 | ) | ||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||||||
10 | Financial Instruments | |||||||||||||||||||||||||||||||
The preparation of our consolidated financial statements in accordance with GAAP requires certain of our assets and liabilities to be reflected at their fair value, and others on another basis, such as an adjusted historical cost basis. In this note, we provide details on the fair value of financial assets and liabilities and how we determine those fair values. We present this information for those financial instruments that are measured at fair value for which the change in fair value impacts net income attributable to Aetna or other comprehensive income separately from other financial assets and liabilities. | ||||||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value in our Balance Sheets | ||||||||||||||||||||||||||||||||
Certain of our financial instruments are measured at fair value in our balance sheets. The fair values of these instruments are based on valuations that include inputs that can be classified within one of three levels of a hierarchy established by GAAP. The following are the levels of the hierarchy and a brief description of the type of valuation information (“inputs”) that qualifies a financial asset or liability for each level: | ||||||||||||||||||||||||||||||||
◦ | Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||||
◦ | Level 2 – Inputs other than Level 1 that are based on observable market data. These include: quoted prices for similar assets in active markets, quoted prices for identical assets in inactive markets, inputs that are observable that are not prices (such as interest rates and credit risks) and inputs that are derived from or corroborated by observable markets. | |||||||||||||||||||||||||||||||
◦ | Level 3 – Developed from unobservable data, reflecting our own assumptions. | |||||||||||||||||||||||||||||||
Financial assets and liabilities are classified based upon the lowest level of input that is significant to the valuation. When quoted prices in active markets for identical assets and liabilities are available, we use these quoted market prices to determine the fair value of financial assets and liabilities and classify these assets and liabilities in Level 1. In other cases where a quoted market price for identical assets and liabilities in an active market is either not available or not observable, we estimate fair value using valuation methodologies based on available and observable market information or by using a matrix pricing model. These financial assets and liabilities would then be classified in Level 2. If quoted market prices are not available, we determine fair value using broker quotes or an internal analysis of each investment’s financial performance and cash flow projections. Thus, financial assets and liabilities may be classified in Level 3 even though there may be some significant inputs that may be observable. | ||||||||||||||||||||||||||||||||
The following is a description of the valuation methodologies used for our financial assets and liabilities that are measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. | ||||||||||||||||||||||||||||||||
Debt Securities – Where quoted prices are available in an active market, our debt securities are classified in Level 1 of the fair value hierarchy. Our Level 1 debt securities are comprised primarily of U.S. Treasury securities. | ||||||||||||||||||||||||||||||||
The fair values of our Level 2 debt securities are obtained using models such as matrix pricing, which use quoted market prices of debt securities with similar characteristics, or discounted cash flows to estimate fair value. We review these prices to ensure they are based on observable market inputs that include, but are not limited to, quoted prices for similar assets in active markets, quoted prices for identical assets in inactive markets and inputs that are observable but not prices (for example, interest rates and credit risks). We also review the methodologies and the assumptions used to calculate prices from these observable inputs. On a quarterly basis, we select a sample of our Level 2 debt securities’ prices and compare them to prices provided by a secondary source. Variances over a specified threshold are identified and reviewed to confirm the price provided by the primary source represents an appropriate estimate of fair value. In addition, our internal investment team consistently compares the prices obtained for select Level 2 debt securities to the team’s own independent estimates of fair value for those securities. We obtained one price for each of our Level 2 debt securities and did not adjust any of these prices at December 31, 2014 or 2013. | ||||||||||||||||||||||||||||||||
We also value certain debt securities using Level 3 inputs. For Level 3 debt securities, fair values are determined by outside brokers or, in the case of certain private placement securities, are priced internally. Outside brokers determine the value of these debt securities through a combination of their knowledge of the current pricing environment and market flows. We obtained one non-binding broker quote for each of these Level 3 debt securities and did not adjust any of these quotes at December 31, 2014 or 2013. The total fair value of our broker quoted debt securities was approximately $126 million and $103 million at December 31, 2014 and 2013, respectively. Examples of these broker quoted Level 3 debt securities include certain U.S. and foreign corporate securities and certain of our commercial mortgage-backed securities as well as other asset-backed securities. For some of our private placement securities, our internal staff determines the value of these debt securities by analyzing spreads of corporate and sector indices as well as interest spreads of comparable public bonds. Examples of these private placement Level 3 debt securities include certain U.S. and foreign securities and certain tax-exempt municipal securities. | ||||||||||||||||||||||||||||||||
Equity Securities – We currently have two classifications of equity securities: those that are publicly traded and those that are privately held. Our publicly-traded securities are classified in Level 1 because quoted prices are available for these securities in an active market. For privately-held equity securities, there is no active market; therefore, we classify these securities in Level 3 because we price these securities through an internal analysis of each investment’s financial statements and cash flow projections. Significant unobservable inputs consist of earnings and revenue multiples, discount for lack of marketability and comparability adjustments. An increase or decrease in any of these unobservable inputs would result in a change in the fair value measurement, which may be significant. | ||||||||||||||||||||||||||||||||
Derivatives – Where quoted prices are available in an active market, our derivatives are classified in Level 1. Certain of our derivative instruments are valued using models that primarily use market observable inputs and therefore are classified in Level 2 because they are traded in markets where quoted market prices are not readily available. | ||||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis in our balance sheets at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,198.40 | $ | 198.5 | $ | — | $ | 1,396.90 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,808.20 | 1.2 | 4,809.40 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 8,548.20 | 58.2 | 8,606.40 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,560.70 | 31.6 | 3,592.30 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 927.7 | — | 927.7 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,368.30 | 7.5 | 1,375.80 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 602.5 | 41.5 | 644 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 65.2 | 4.1 | 69.3 | ||||||||||||||||||||||||||||
Total debt securities | 1,198.40 | 20,079.30 | 144.1 | 21,421.80 | ||||||||||||||||||||||||||||
Equity securities | 1.8 | — | 18.1 | 19.9 | ||||||||||||||||||||||||||||
Derivatives | — | 0.3 | — | 0.3 | ||||||||||||||||||||||||||||
Total | $ | 1,200.20 | $ | 20,079.60 | $ | 162.2 | $ | 21,442.00 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 53.4 | $ | — | $ | 53.4 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,237.50 | $ | 225 | $ | — | $ | 1,462.50 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,161.00 | 1.3 | 4,162.30 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,911.40 | 31.2 | 7,942.60 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,311.60 | 43.9 | 3,355.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 924.2 | — | 924.2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,399.50 | 7.5 | 1,407.00 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 317.3 | 32.3 | 349.6 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 61.3 | 4.1 | 65.4 | ||||||||||||||||||||||||||||
Total debt securities | 1,237.50 | 18,311.30 | 120.3 | 19,669.10 | ||||||||||||||||||||||||||||
Equity securities | 17.1 | — | 44.2 | 61.3 | ||||||||||||||||||||||||||||
Derivatives | — | 49.1 | — | 49.1 | ||||||||||||||||||||||||||||
Total | $ | 1,254.60 | $ | 18,360.40 | $ | 164.5 | $ | 19,779.50 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 1.9 | $ | — | $ | 1.9 | ||||||||||||||||||||||||
There were no transfers between Levels 1 and 2 during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
The changes in the balances of Level 3 financial assets during 2014 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | Foreign | U.S. corporate securities | Equity | Other | Total | |||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||||
Beginning balance | $ | 43.9 | $ | 31.2 | $ | 44.2 | $ | 45.2 | $ | 164.5 | ||||||||||||||||||||||
Net realized and unrealized capital gains (losses): | ||||||||||||||||||||||||||||||||
Included in earnings | (.5 | ) | (4.0 | ) | (.1 | ) | (.1 | ) | (4.7 | ) | ||||||||||||||||||||||
Included in other comprehensive income | 0.5 | (2.0 | ) | (26.0 | ) | 0.1 | (27.4 | ) | ||||||||||||||||||||||||
Other (1) | 0.4 | (.4 | ) | 4.3 | — | 4.3 | ||||||||||||||||||||||||||
Purchases | 10.5 | 42.9 | 5 | 16.6 | 75 | |||||||||||||||||||||||||||
Sales | (12.4 | ) | (1.5 | ) | (9.2 | ) | — | (23.1 | ) | |||||||||||||||||||||||
Settlements | (1.1 | ) | (2.3 | ) | (.1 | ) | (7.5 | ) | (11.0 | ) | ||||||||||||||||||||||
Transfers out of Level 3, net | (9.7 | ) | (5.7 | ) | — | — | (15.4 | ) | ||||||||||||||||||||||||
Ending balance | $ | 31.6 | $ | 58.2 | $ | 18.1 | $ | 54.3 | $ | 162.2 | ||||||||||||||||||||||
(1) | Reflects realized and unrealized capital gains and losses on investments supporting our experience-rated and discontinued products, which do not impact our operating results. | |||||||||||||||||||||||||||||||
The changes in the balances of Level 3 financial assets during 2013 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | Foreign | Commercial | Equity | Other | Total | |||||||||||||||||||||||||||
Securities | Mortgage-backed | Securities | ||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 52.7 | $ | 20.1 | $ | 22.1 | $ | 100.9 | $ | 195.8 | ||||||||||||||||||||||
Net realized and unrealized capital gains (losses): | ||||||||||||||||||||||||||||||||
Included in earnings | 0.5 | 4 | 2.8 | (3.7 | ) | 3.6 | ||||||||||||||||||||||||||
Included in other comprehensive income | (3.4 | ) | (3.8 | ) | 21.2 | (4.0 | ) | 10 | ||||||||||||||||||||||||
Other (1) | (.2 | ) | — | 11.2 | 1.1 | 12.1 | ||||||||||||||||||||||||||
Purchases | 41.5 | 3.1 | 13 | 31.9 | 89.5 | |||||||||||||||||||||||||||
Sales | (27.2 | ) | (2.5 | ) | (26.1 | ) | (13.8 | ) | (69.6 | ) | ||||||||||||||||||||||
Settlements | (5.4 | ) | (10.4 | ) | — | (16.0 | ) | (31.8 | ) | |||||||||||||||||||||||
Transfers out of Level 3, net | (14.6 | ) | (3.0 | ) | — | (27.5 | ) | (45.1 | ) | |||||||||||||||||||||||
Ending balance | $ | 43.9 | $ | 7.5 | $ | 44.2 | $ | 68.9 | $ | 164.5 | ||||||||||||||||||||||
(1) | Reflects realized and unrealized capital gains and losses on investments supporting our experience-rated and discontinued products, which do not impact our operating results. | |||||||||||||||||||||||||||||||
The total gross transfers into (out of) Level 3 during the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Gross transfers into Level 3 | $ | 1.9 | $ | 3.8 | ||||||||||||||||||||||||||||
Gross transfers out of Level 3 | (17.3 | ) | (48.9 | ) | ||||||||||||||||||||||||||||
Net transfers out of Level 3 | $ | (15.4 | ) | $ | (45.1 | ) | ||||||||||||||||||||||||||
Gross transfers out of Level 3 during 2014 primarily related to foreign debt securities and U.S. corporate securities, while gross transfers into Level 3 during 2014 primarily related to other asset-backed securities. Gross transfers out of Level 3 during 2013 primarily related to securities of States, municipalities and political subdivisions; U.S. corporate debt securities; and Foreign debt securities, while gross transfers into Level 3 during 2013 primarily related to foreign debt securities. The fair value of securities transferred out of Level 3 during 2014 and 2013 had been based on broker quotes and is now based primarily on a matrix pricing model, which uses quoted market prices of debt securities with similar characteristics. Gross transfers into Level 3 during 2014 and 2013 primarily were due to quoted prices for certain securities no longer being available in active markets. | ||||||||||||||||||||||||||||||||
Financial Instruments Not Measured at Fair Value in our Balance Sheets | ||||||||||||||||||||||||||||||||
The following is a description of the valuation methodologies used for estimating the fair value of our financial assets and liabilities that are carried on our balance sheets at adjusted cost or contract value. | ||||||||||||||||||||||||||||||||
Mortgage loans: Fair values are estimated by discounting expected mortgage loan cash flows at market rates that reflect the rates at which similar loans would be made to similar borrowers. These rates reflect our assessment of the credit worthiness of the borrower and the remaining duration of the loans. The fair value estimates of mortgage loans of lower credit quality, including problem and restructured loans, are based on the estimated fair value of the underlying collateral. | ||||||||||||||||||||||||||||||||
Bank loans: Where fair value is determined by quoted market prices of bank loans with similar characteristics, our bank loans are classified in Level 2. For bank loans classified in Level 3, fair value is determined by outside brokers using their internal analyses through a combination of their knowledge of the current pricing environment and market flows. | ||||||||||||||||||||||||||||||||
Equity securities: Certain of our equity securities are carried at cost. The fair values of our cost-method investments are not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
•With a fixed maturity: Fair value is estimated by discounting cash flows at interest rates currently | ||||||||||||||||||||||||||||||||
being offered by, or available to, us for similar contracts. | ||||||||||||||||||||||||||||||||
•Without a fixed maturity: Fair value is estimated as the amount payable to the contract holder upon | ||||||||||||||||||||||||||||||||
demand. However, we have the right under such contracts to delay payment of withdrawals that | ||||||||||||||||||||||||||||||||
may ultimately result in paying an amount different than that determined to be payable on demand. | ||||||||||||||||||||||||||||||||
Long-term debt: Fair values are based on quoted market prices for the same or similar issued debt or, if no quoted market prices are available, on the current rates estimated to be available to us for debt of similar terms and remaining maturities. | ||||||||||||||||||||||||||||||||
The carrying value and estimated fair value classified by level of fair value hierarchy for certain of our financial instruments at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,562.20 | $ | — | $ | — | $ | 1,621.40 | $ | 1,621.40 | ||||||||||||||||||||||
Bank loans | 231.2 | — | 217.6 | 9.4 | 227 | |||||||||||||||||||||||||||
Equity securities (1) | 34.9 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 16.6 | — | — | 16.6 | 16.6 | |||||||||||||||||||||||||||
Without a fixed maturity | 557.5 | — | — | 551.5 | 551.5 | |||||||||||||||||||||||||||
Long-term debt | 8,081.30 | — | 8,764.80 | — | 8,764.80 | |||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,549.60 | $ | — | $ | — | $ | 1,584.80 | $ | 1,584.80 | ||||||||||||||||||||||
Bank loans | 181.7 | — | 171.5 | 9.8 | 181.3 | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 8.9 | — | — | 8.9 | 8.9 | |||||||||||||||||||||||||||
Without a fixed maturity | 572.3 | — | — | 553.2 | 553.2 | |||||||||||||||||||||||||||
Long-term debt | 8,252.60 | — | 8,670.60 | — | 8,670.60 | |||||||||||||||||||||||||||
(1) | It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies. | |||||||||||||||||||||||||||||||
Separate Accounts Measured at Fair Value in our Balance Sheets | ||||||||||||||||||||||||||||||||
Separate Accounts assets in our Large Case Pensions business represent funds maintained to meet specific objectives of contract holders. Since contract holders bear the investment risk of these assets, a corresponding Separate Accounts liability has been established equal to the assets. These assets and liabilities are carried at fair value. Net investment income and capital gains and losses accrue directly to such contract holders. The assets of each account are legally segregated and are not subject to claims arising from our other businesses. Deposits, withdrawals, net investment income and realized and unrealized capital gains and losses on Separate Accounts assets are not reflected in our statements of income, shareholders’ equity or cash flows. | ||||||||||||||||||||||||||||||||
Separate Accounts assets include debt and equity securities and derivative instruments. The valuation methodologies used for these assets are similar to the methodologies described beginning on page 103. Separate Accounts assets also include investments in common/collective trusts that are carried at fair value. Common/collective trusts invest in other investment funds otherwise known as the underlying funds. The Separate Accounts’ interests in the common/collective trust funds are based on the fair values of the investments of the underlying funds and therefore are classified in Level 2. The assets in the underlying funds primarily consist of equity securities. Investments in common/collective trust funds are valued at their respective net asset value per share/unit on the valuation date. | ||||||||||||||||||||||||||||||||
Separate Accounts financial assets at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Debt securities | $ | 876 | $ | 2,495.00 | $ | 2.9 | $ | 3,373.90 | $ | 726.4 | $ | 2,227.00 | $ | 0.6 | $ | 2,954.00 | ||||||||||||||||
Equity securities | 173.3 | 5.7 | — | 179 | 188.4 | 3.3 | — | 191.7 | ||||||||||||||||||||||||
Derivatives | — | 0.2 | — | 0.2 | — | 0.8 | — | 0.8 | ||||||||||||||||||||||||
Common/collective trusts | — | 574 | — | 574 | — | 710.4 | — | 710.4 | ||||||||||||||||||||||||
Total (1) | $ | 1,049.30 | $ | 3,074.90 | $ | 2.9 | $ | 4,127.10 | $ | 914.8 | $ | 2,941.50 | $ | 0.6 | $ | 3,856.90 | ||||||||||||||||
(1) | Excludes $204.4 million and $115.6 million of cash and cash equivalents and other receivables at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
During 2014 and 2013, we had an immaterial amount of Level 3 Separate Accounts financial assets. Gross transfers of Separate Accounts financial assets out of Level 3 during 2014 and 2013 were $.1 million and $4.6 million, respectively. During 2014 and 2013, there were no transfers of Separate Accounts financial assets between Levels 1 and 2 and no transfers of Separate Accounts financial assets into Level 3. | ||||||||||||||||||||||||||||||||
Offsetting Financial Assets and Liabilities | ||||||||||||||||||||||||||||||||
Certain financial assets and liabilities are offset in our balance sheets or are subject to master netting arrangements or similar agreements with the applicable counterparty. Financial assets, including derivative assets, subject to offsetting and enforceable master netting arrangements as of December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 0.3 | $ | 10.2 | $ | — | $ | 10.5 | ||||||||||||||||||||||||
Total | $ | 0.3 | $ | 10.2 | $ | — | $ | 10.5 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
Total | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at December 31, 2014 or December 31, 2013. | ||||||||||||||||||||||||||||||||
Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Paid | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 53.4 | $ | 0.9 | $ | (49.0 | ) | $ | 5.3 | |||||||||||||||||||||||
Securities lending | 826.9 | (826.9 | ) | — | — | |||||||||||||||||||||||||||
Repurchase agreements | 201.7 | — | — | 201.7 | ||||||||||||||||||||||||||||
Total | $ | 1,082.00 | $ | (826.0 | ) | $ | (49.0 | ) | $ | 207 | ||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 1.9 | $ | — | $ | (.7 | ) | $ | 1.2 | |||||||||||||||||||||||
Securities lending | 792.6 | (792.6 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 794.5 | $ | (792.6 | ) | $ | (.7 | ) | $ | 1.2 | ||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at December 31, 2014 or December 31, 2013. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Pension and Other Postretirement Plans | ||||||||||||||||||||||||
11 | Pension and Other Postretirement Plans | |||||||||||||||||||||||
Defined Benefit Retirement Plans | ||||||||||||||||||||||||
We sponsor various defined benefit plans, including two pension plans, and other postretirement employee benefit (“OPEB”) plans that provide certain health care and life insurance benefits for retired employees, including those of our former parent company. | ||||||||||||||||||||||||
During 2014 we did not make any contribution to the Aetna Pension Plan. During both 2013 and 2012 we made voluntary cash contributions of $60 million to the Aetna Pension Plan. Effective December 31, 2010, our employees no longer earn future pension service credits in the Aetna Pension Plan (i.e., the Plan was “frozen” effective December 31, 2010), although the Aetna Pension Plan will continue to operate and account balances will continue to earn annual interest credits. | ||||||||||||||||||||||||
In July 2014, we enhanced the Aetna Pension Plan. Effective December 1, 2014, we permitted certain current and future former employees with deferred vested Aetna Pension Plan balances to elect to receive a 100% lump-sum distribution. This election is a permanent addition to the Aetna Pension Plan. In addition, in July 2014, we announced a limited-time offer permitting certain former employees with deferred vested Aetna Pension Plan balances to elect a 100% lump-sum distribution. These distributions in 2014 were funded from existing Aetna Pension Plan assets and exceeded the total 2014 service and interest cost. As a result, we performed a remeasurement of the Aetna Pension Plan, and we recorded a pretax non-cash settlement charge of approximately $112 million in 2014 in general and administrative expenses. | ||||||||||||||||||||||||
We also sponsor a non-qualified supplemental pension plan (the “Non-qualified Pension Plan”) that, prior to January 1, 2007, had been used to provide benefits for wages above the Internal Revenue Code wage limits applicable to tax qualified pension plans (such as the Aetna Pension Plan). Effective January 1, 2007, no new benefits accrue under the Non-qualified Pension Plan, but interest will continue to be credited on outstanding supplemental cash balance accounts; and the plan may continue to be used to credit special pension arrangements. | ||||||||||||||||||||||||
In addition, we currently provide certain medical and life insurance benefits for retired employees, including those of our former parent company. We provide subsidized health care benefits to certain eligible employees who terminated employment prior to December 31, 2006. There is a cap on our portion of the cost of providing medical and dental benefits to our retirees. All current and future retirees and employees who terminate employment at age 45 or later with at least five years of service are eligible to participate in our group health plans at their own cost. | ||||||||||||||||||||||||
The information set forth in the following tables is based upon current actuarial reports using the annual measurement dates (December 31, for each year presented) for our pension and OPEB plans. | ||||||||||||||||||||||||
The following table shows the changes in the benefit obligations during 2014 and 2013 for our pension and OPEB plans. | ||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit obligation, beginning of year | $ | 5,965.30 | $ | 6,665.80 | $ | 260.9 | $ | 292.4 | ||||||||||||||||
Service cost | — | — | 0.1 | 0.1 | ||||||||||||||||||||
Interest cost | 288.3 | 271.5 | 11.9 | 11.1 | ||||||||||||||||||||
Actuarial loss (gain) | 847.6 | (653.7 | ) | 30 | (22.5 | ) | ||||||||||||||||||
Settlements paid | (295.2 | ) | — | — | — | |||||||||||||||||||
Benefits paid | (301.2 | ) | (318.3 | ) | (25.7 | ) | (20.2 | ) | ||||||||||||||||
Benefit obligation, end of year | $ | 6,504.80 | $ | 5,965.30 | $ | 277.2 | $ | 260.9 | ||||||||||||||||
The increase in the pension plans’ benefit obligation in 2014 was primarily due to actuarial losses arising as a result of the new mortality table and a lower discount rate as further described below. | ||||||||||||||||||||||||
The Aetna Pension Plan comprises approximately 96% of the pension plans’ total benefit obligation at December 31, 2014. The discount rates used to determine the benefit obligation of our pension and OPEB plans were calculated using a yield curve as of our annual measurement date. The yield curve consisted of a series of individual discount rates, with each discount rate corresponding to a single point in time, based on high-quality bonds. Projected benefit payments are discounted to the measurement date using the corresponding rate from the yield curve. The weighted average discount rate for our pension plans was 4.12% and 4.96% for 2014 and 2013, respectively. The discount rate for our OPEB plans was 4.02% and 4.73% for 2014 and 2013, respectively. The discount rates differ for our pension and OPEB plans due to the duration of the projected benefit payments for each plan. | ||||||||||||||||||||||||
Additionally, based on the mortality experience of our pension and OPEB plans, in 2014 we utilized the RP-2014 Mortality Table with a generational projection of future mortality improvements using Scale MP-2014. In 2013, we used the Retirement Plan 2000 mortality table with a generational projection of future mortality improvements using Scale AA. | ||||||||||||||||||||||||
The following table reconciles the beginning and ending balances of the fair value of plan assets during 2014 and 2013 for the pension and OPEB plans: | ||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 6,157.80 | $ | 5,805.00 | $ | 61.1 | $ | 62.1 | ||||||||||||||||
Actual return on plan assets | 562.2 | 589 | 1.5 | 2.9 | ||||||||||||||||||||
Employer contributions | 23.4 | 82.1 | 21.6 | 16.3 | ||||||||||||||||||||
Settlements paid | (295.2 | ) | — | — | — | |||||||||||||||||||
Benefits paid | (301.2 | ) | (318.3 | ) | (25.7 | ) | (20.2 | ) | ||||||||||||||||
Fair value of plan assets, end of year | $ | 6,147.00 | $ | 6,157.80 | $ | 58.5 | $ | 61.1 | ||||||||||||||||
The difference between the fair value of plan assets and the plan’s benefit obligation is referred to as the plan’s funded status. This funded status is an accounting-based calculation and is not indicative of our mandatory funding requirements, which are described on page 18. | ||||||||||||||||||||||||
The funded status of our pension and OPEB plans at the measurement date for 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit obligation | $ | (6,504.8 | ) | $ | (5,965.3 | ) | $ | (277.2 | ) | $ | (260.9 | ) | ||||||||||||
Fair value of plan assets | 6,147.00 | 6,157.80 | 58.5 | 61.1 | ||||||||||||||||||||
Funded status | $ | (357.8 | ) | $ | 192.5 | $ | (218.7 | ) | $ | (199.8 | ) | |||||||||||||
The amounts in accumulated other comprehensive loss that have not yet been recognized in net periodic benefit cost as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Unrecognized prior service credit | $ | (1.2 | ) | $ | (1.6 | ) | $ | (26.1 | ) | $ | (29.7 | ) | ||||||||||||
Unrecognized net actuarial losses | 2,493.00 | 1,943.50 | 76.8 | 46.1 | ||||||||||||||||||||
Amount recognized in accumulated other comprehensive loss | $ | (2,491.8 | ) | $ | (1,941.9 | ) | $ | (50.7 | ) | $ | (16.4 | ) | ||||||||||||
The (liabilities) assets recognized on our balance sheets at December 31, 2014 and 2013 for our pension and OPEB plans were comprised of the following: | ||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Accrued benefit assets reflected in other long-term assets | $ | — | $ | 425 | $ | — | $ | — | ||||||||||||||||
Accrued benefit liabilities reflected in other current liabilities | (21.6 | ) | (22.3 | ) | (14.5 | ) | — | |||||||||||||||||
Accrued benefit liabilities reflected in other long-term liabilities | (336.2 | ) | (210.2 | ) | (204.2 | ) | (199.8 | ) | ||||||||||||||||
Net amount of (liabilities) assets recognized at December 31, | $ | (357.8 | ) | $ | 192.5 | $ | (218.7 | ) | $ | (199.8 | ) | |||||||||||||
At December 31, 2014, we had approximately $2.5 billion and $77 million of net actuarial losses for our pension and OPEB plans, respectively, and approximately $1 million and $26 million of prior service credits for our pension and OPEB plans, respectively, that have not been recognized as components of net periodic benefit costs. We expect to recognize approximately $61 million and $3 million in amortization of net actuarial losses for our pension and OPEB plans, respectively, and approximately $4 million in amortization of prior service credits for our OPEB plans in 2015. Our amortization of prior service credits for our pension plans in 2015 is not expected to be material. | ||||||||||||||||||||||||
Components of the net periodic benefit (income) cost of our defined benefit pension plans and OPEB plans for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | 0.1 | $ | 0.1 | ||||||||||||
Amortization of prior service credit | (.4 | ) | (.4 | ) | (.4 | ) | (3.6 | ) | (3.7 | ) | (3.7 | ) | ||||||||||||
Interest cost | 288.3 | 271.5 | 298.4 | 11.9 | 11.1 | 14.4 | ||||||||||||||||||
Expected return on plan assets | (422.3 | ) | (396.4 | ) | (387.3 | ) | (3.1 | ) | (2.4 | ) | (2.7 | ) | ||||||||||||
Recognized net actuarial losses | 46.6 | 75.4 | 70.2 | 1 | 2.3 | 4.5 | ||||||||||||||||||
Settlement charge | 111.6 | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost (income) | $ | 23.8 | $ | (49.9 | ) | $ | (19.1 | ) | $ | 6.2 | $ | 7.4 | $ | 12.6 | ||||||||||
The weighted average assumptions used to determine net periodic benefit (income) cost in 2014, 2013 and 2012 for the pension and OPEB plans were as follows: | ||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 4.96 | % | 4.17 | % | 4.98 | % | 4.73 | % | 3.94 | % | 4.78 | % | ||||||||||||
Expected long-term return on plan assets | 7 | 7 | 7.5 | 5.3 | 4.1 | 4.25 | ||||||||||||||||||
Rate of increase in future compensation levels | N/A | N/A | N/A | — | — | — | ||||||||||||||||||
We assume different health care cost trend rates for medical costs and prescription drug costs in estimating the expected costs of our OPEB plans. The assumed medical cost trend rate for 2015 is 8.5%, decreasing gradually to 4.5% by 2023. The assumed prescription drug cost trend rate for 2015 is 8.5%, decreasing gradually to 4.5% by 2023. These assumptions reflect our historical as well as expected future trends for retirees. In addition, the trend assumptions reflect factors specific to our retiree medical plan, such as plan design, cost-sharing provisions, benefits covered and the presence of subsidy caps. A one-percentage point increase in both the assumed medical cost and assumed prescription drug cost trend rates would result in an approximately $.4 million pretax increase in the aggregate of the service and interest cost components of OPEB costs and an approximately $10 million increase in the OPEB benefit obligation. A one-percentage point decrease in both the assumed medical cost and assumed prescription drug cost trend rates would result in an approximately $.4 million pretax decrease in the aggregate of the service and interest cost components of OPEB costs and an approximately $9 million decrease in the OPEB benefit obligation. | ||||||||||||||||||||||||
Our current funding strategy for the Aetna Pension Plan is to fund an amount at least equal to the minimum funding requirement as determined under applicable regulatory requirements with consideration of factors such as the maximum tax deductibility of such amounts. Minimum funding requirements for the Aetna Pension Plan were met in 2014 and 2013, and we were not required to make cash contributions for either of those years. We do not have any required contribution to the Aetna Pension Plan in 2015, although we may voluntarily contribute approximately $60 million in 2015. Employer contributions related to the supplemental pension and OPEB plans represent payments to retirees for current benefits. We have no plans to return any pension or OPEB plan assets to the Company in 2015. Our non-qualified supplemental pension plan and OPEB plans do not have minimum funding requirements. | ||||||||||||||||||||||||
Expected benefit payments, which reflect future employee service, as appropriate, of the pension and OPEB plans to be paid for each of the next five years and in the aggregate for the next five years thereafter at December 31, 2014 were as follows: | ||||||||||||||||||||||||
(Millions) | Pension Plans | OPEB Plans | ||||||||||||||||||||||
2015 | $ | 348.7 | $ | 18.3 | ||||||||||||||||||||
2016 | 352.6 | 18.1 | ||||||||||||||||||||||
2017 | 357.9 | 17.9 | ||||||||||||||||||||||
2018 | 366.2 | 17.8 | ||||||||||||||||||||||
2019 | 367.7 | 17.5 | ||||||||||||||||||||||
2020-2024 | 1,890.50 | 83.4 | ||||||||||||||||||||||
Assets of the Aetna Pension Plan | ||||||||||||||||||||||||
The assets of the Aetna Pension Plan (“Pension Assets”) primarily include debt and equity securities held in separate accounts, as well as common/collective trusts and real estate investments. The valuation methodologies used to price these debt and equity securities and common/collective trusts are similar to the methodologies described beginning on pages 103 and 106. Pension Assets also include investments in other assets that are carried at fair value. The following is a description of the valuation methodology used to price real estate investments and these additional investments, including the general classification pursuant to the valuation hierarchy. | ||||||||||||||||||||||||
Real Estate - Real estate investments are valued by independent third party appraisers. The appraisals comply with the Uniform Standards of Professional Appraisal Practice, which includes, among other things, the income, cost, and sales comparison approaches to estimating property value. Therefore, these investments are classified in Level 3. | ||||||||||||||||||||||||
Other Assets - Other assets consist of derivatives and private equity and hedge fund limited partnerships. Derivatives are either valued with models that primarily use market observable inputs and therefore are classified in Level 2 because they are traded in markets where quoted market prices are not readily available or are classified in Level 1 because they are traded in markets where quoted market prices are readily available. The fair values of private equity and hedge fund limited partnerships are estimated based on the net asset value of the investment fund provided by the general partner or manager of the investments, the financial statements of which generally are audited. Management considers observable market data, valuation procedures in place, contributions and withdrawal restrictions collectively in validating the appropriateness of using the net asset value as a fair value measurement. Therefore, these investments are classified in Level 3. | ||||||||||||||||||||||||
Pension Assets with changes in fair value measured on a recurring basis at December 31, 2014 were as follows: | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 452.1 | $ | 98.3 | $ | — | $ | 550.4 | ||||||||||||||||
States, municipalities and political subdivisions | — | 132.2 | — | 132.2 | ||||||||||||||||||||
U.S. corporate securities | — | 1,244.80 | 1.5 | 1,246.30 | ||||||||||||||||||||
Foreign securities | — | 161.5 | — | 161.5 | ||||||||||||||||||||
Residential mortgage-backed securities | — | 221.1 | — | 221.1 | ||||||||||||||||||||
Commercial mortgage-backed securities | — | 50.2 | 0.5 | 50.7 | ||||||||||||||||||||
Other asset-backed securities | — | 32.3 | — | 32.3 | ||||||||||||||||||||
Redeemable preferred securities | — | 8.2 | — | 8.2 | ||||||||||||||||||||
Total debt securities | 452.1 | 1,948.60 | 2 | 2,402.70 | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. Domestic | 1,243.80 | 5.5 | — | 1,249.30 | ||||||||||||||||||||
International | 686.6 | — | — | 686.6 | ||||||||||||||||||||
Domestic real estate | 28.9 | — | — | 28.9 | ||||||||||||||||||||
Total equity securities | 1,959.30 | 5.5 | — | 1,964.80 | ||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||
Real estate | — | — | 469.7 | 469.7 | ||||||||||||||||||||
Common/collective trusts (1) | — | 610 | — | 610 | ||||||||||||||||||||
Other assets | — | 0.2 | 471.2 | 471.4 | ||||||||||||||||||||
Total other investments | — | 610.2 | 940.9 | 1,551.10 | ||||||||||||||||||||
Total pension investments (2) | $ | 2,411.40 | $ | 2,564.30 | $ | 942.9 | $ | 5,918.60 | ||||||||||||||||
(1) | The assets in the underlying funds of common/collective trusts are comprised of $337.4 million of equity securities and $272.6 million of debt securities. | |||||||||||||||||||||||
-2 | Excludes $228.4 million of cash and cash equivalents and other payables. | |||||||||||||||||||||||
Pension Assets with changes in fair value measured on a recurring basis at December 31, 2013 were as follows: | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 493.5 | $ | 113.2 | $ | — | $ | 606.7 | ||||||||||||||||
States, municipalities and political subdivisions | — | 126.8 | — | 126.8 | ||||||||||||||||||||
U.S. corporate securities | — | 1,135.70 | — | 1,135.70 | ||||||||||||||||||||
Foreign securities | — | 148 | 0.2 | 148.2 | ||||||||||||||||||||
Residential mortgage-backed securities | — | 174.6 | — | 174.6 | ||||||||||||||||||||
Commercial mortgage-backed securities | — | 44 | — | 44 | ||||||||||||||||||||
Other asset-backed securities | — | 26.5 | — | 26.5 | ||||||||||||||||||||
Redeemable preferred securities | — | 10.2 | — | 10.2 | ||||||||||||||||||||
Total debt securities | 493.5 | 1,779.00 | 0.2 | 2,272.70 | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. Domestic | 1,342.50 | 3.1 | — | 1,345.60 | ||||||||||||||||||||
International | 825.2 | — | 0.1 | 825.3 | ||||||||||||||||||||
Domestic real estate | 25.7 | — | — | 25.7 | ||||||||||||||||||||
Total equity securities | 2,193.40 | 3.1 | 0.1 | 2,196.60 | ||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||
Real estate | — | — | 497.5 | 497.5 | ||||||||||||||||||||
Common/collective trusts (1) | — | 617.3 | — | 617.3 | ||||||||||||||||||||
Other assets | 0.3 | 0.7 | 395.9 | 396.9 | ||||||||||||||||||||
Total other investments | 0.3 | 618 | 893.4 | 1,511.70 | ||||||||||||||||||||
Total pension investments (2) | $ | 2,687.20 | $ | 2,400.10 | $ | 893.7 | $ | 5,981.00 | ||||||||||||||||
(1) | The assets in the underlying funds of common/collective trusts are comprised of $356.1 million of equity securities and $261.2 million of debt securities. | |||||||||||||||||||||||
-2 | Excludes $176.8 million of cash and cash equivalents and other payables. | |||||||||||||||||||||||
The changes in the balances of Level 3 Pension Assets during 2014 and 2013 were as follows: | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Real Estate | Other | Total | ||||||||||||||||||||||
Beginning balance | $ | 497.5 | $ | 396.2 | $ | 893.7 | ||||||||||||||||||
Actual return on plan assets | 43.9 | 35.7 | 79.6 | |||||||||||||||||||||
Purchases, sales and settlements | (71.7 | ) | 41.3 | (30.4 | ) | |||||||||||||||||||
Ending balance | $ | 469.7 | $ | 473.2 | $ | 942.9 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Real Estate | Other | Total | ||||||||||||||||||||||
Beginning balance | $ | 469 | $ | 291.3 | $ | 760.3 | ||||||||||||||||||
Actual return on plan assets | 40.5 | 26.6 | 67.1 | |||||||||||||||||||||
Purchases, sales and settlements | (12.0 | ) | 80 | 68 | ||||||||||||||||||||
Transfers out of Level 3 | — | (1.7 | ) | (1.7 | ) | |||||||||||||||||||
Ending balance | $ | 497.5 | $ | 396.2 | $ | 893.7 | ||||||||||||||||||
The Aetna Pension Plan invests in a diversified mix of assets intended to maximize long-term returns while recognizing the need for adequate liquidity to meet ongoing benefit and administrative obligations. The risk of unexpected investment and actuarial outcomes is regularly evaluated. This evaluation is performed through forecasting and assessing ranges of investment outcomes over short- and long-term horizons, and by assessing the Aetna Pension Plan’s liability characteristics, our financial condition and our future potential obligations from both the pension and general corporate perspectives. Complementary investment styles and techniques are utilized by multiple professional investment firms to further improve portfolio and operational risk characteristics. Public and private equity investments are used primarily to increase overall plan returns. Real estate investments are viewed favorably for their diversification benefits and above-average dividend generation. Fixed income investments provide diversification benefits and liability hedging attributes that are desirable, especially in falling interest rate environments. | ||||||||||||||||||||||||
At December 31, 2014, target investment allocations for the Aetna Pension Plan were: 38% in equity securities, 48% in debt securities, 7% in real estate, 4% in private equity limited partnerships and 3% in hedge funds. Actual asset allocations may differ from target allocations due to tactical decisions to overweight or underweight certain assets or as a result of normal fluctuations in asset values. Asset allocations are consistent with stated investment policies and, as a general rule, periodically rebalanced back to target asset allocations. Asset allocations and investment performance are formally reviewed periodically throughout the year by the plan’s Benefit Finance Committee. Forecasting of asset and liability growth is performed at least annually. | ||||||||||||||||||||||||
We have several benefit plans for retired employees currently supported by the OPEB plan assets. OPEB plan assets are directly and indirectly invested in a diversified mix of traditional asset classes, primarily high-quality fixed income securities. | ||||||||||||||||||||||||
The actual and target asset allocations of the OPEB plans used at December 31, 2014 and 2013 presented as a percentage of total plan assets, were as follows: | ||||||||||||||||||||||||
Target | Target | |||||||||||||||||||||||
(Millions) | 2014 | Allocation | 2013 | Allocation | ||||||||||||||||||||
Equity securities | 11 | % | 5-15% | 10 | % | 5-15% | ||||||||||||||||||
Debt securities | 84 | % | 80-90% | 84 | % | 80-90% | ||||||||||||||||||
Real estate/other | 5 | % | 0-10% | 6 | % | 0-10% | ||||||||||||||||||
Our expected return on plan assets assumption is based on many factors, including forecasted capital market real returns over a long-term horizon, forecasted inflation rates, historical compounded asset returns and patterns and correlations on those returns. Expectations for modest increases in interest rates, normal inflation trends and average capital market real returns led us to an expected return on the pension plan assets assumption of 7.00% for both 2014 and 2013 and 7.5% for 2012, and an expected return on OPEB plan assets assumption of 5.30%, 4.10% and 4.25% for 2014, 2013 and 2012, respectively. We regularly review actual asset allocations and periodically rebalance our investments to the mid-point of our targeted allocation ranges when we consider it appropriate. | ||||||||||||||||||||||||
401(k) Plan | ||||||||||||||||||||||||
Our employees are eligible to participate in a defined contribution retirement savings plan under which designated contributions may be invested in our common stock or certain other investments (the “Aetna 401(k) Plan”). In addition, former Coventry employees continued to be eligible to participate in the Coventry 401(k) plan during 2013, however, as of January 1, 2014, they became eligible to participate in the Aetna 401(k) Plan. Our 401(k) contribution to the Aetna 401(k) Plan provides for a match of 100% of up to 6% of the eligible pay contributed by the employee. Contributions to the Coventry 401(k) plan provided a match of 100% of up to 3% and 50% of the second 3% of the eligible pay contributed by the employee. During 2014, 2013 and 2012, we made $180 million, $148 million and $117 million, respectively, in aggregate of matching contributions to our 401(k) plans. The matching contributions are made in cash and invested according to each participant’s investment elections. The plan trustees held approximately 8 million shares, in aggregate, of our common stock for plan participants at December 31, 2014. At December 31, 2014, approximately 34 million shares of our common stock were reserved for issuance under the Aetna 401(k) Plan. |
Stockbased_Employee_Incentive_
Stock-based Employee Incentive Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stock-based Employee Incentive Plans [Abstract] | |||||||||||||||||||||
Stock-based Employee Incentive Plans | |||||||||||||||||||||
12 | Stock-based Employee Incentive Plans | ||||||||||||||||||||
Our stock-based employee compensation plans (collectively, the “Plans”) provide for awards of stock options, SARs, PSARs, restricted stock units (“RSUs”), MSUs, PSUs, deferred contingent common stock and the ability for employees to purchase common stock at a discount. At December 31, 2014, approximately 34 million common shares were available for issuance under the Plans. Executive, middle management and non-management employees may be granted RSUs, MSUs, PSUs, stock options, SARs and PSARs, each of which are described below: | |||||||||||||||||||||
RSUs - For each RSU granted, employees receive one share of common stock, net of taxes, at the end of the vesting period. RSUs generally become 100% vested approximately three years from the grant date, with one-third vesting each December. | |||||||||||||||||||||
MSUs - The number of vested MSUs (which could range from zero to 150% of the original number of units granted) is dependent on the weighted average closing price of our common stock for the thirty trading days prior to the vesting date, including the vesting date. Each vested MSU represents one share of common stock and will be paid in shares of common stock, net of taxes. MSUs representing 50% of the grant date fair value of the MSUs granted in 2012 were subject to a two-year vesting period while the remaining MSUs granted in 2012 are subject to a three-year vesting period. MSUs granted in 2014 and 2013 are subject to a three-year vesting period. | |||||||||||||||||||||
PSUs - The number of vested PSUs (which could range from zero to 200% of the original number of units granted) is dependent upon the degree to which we achieve performance goals, which for the most part, are set at the time of grant as determined by our Board’s Committee on Compensation and Talent Management (the “Compensation Committee”). Each vested PSU represents one share of common stock and will be paid in shares of common stock, net of taxes. Below is a summary of the performance period and vesting percentages for each tranche of PSUs granted by the Company: | |||||||||||||||||||||
PSUs granted in 2012 (“2012 PSUs”) | |||||||||||||||||||||
Half of the 2012 PSUs were subject to a one-year performance period that ended on December 31, 2012, and vested at 81.67% of the original number of units granted. The remaining half were subject to a one-year performance period that ended December 31, 2013, and vested at 119.12% of the original number of units granted. The 2012 PSUs were subject to a two-year vesting period. | |||||||||||||||||||||
PSUs granted in 2013 (“2013 PSUs”) | |||||||||||||||||||||
Certain PSUs granted in 2013 are subject to a single three-year performance period that will end on December 31, 2015, and are subject to a single vesting period that ends on January 5, 2016. | |||||||||||||||||||||
Certain PSUs granted in 2013 were subject to a two-year vesting period with two separate performance periods. Half of these PSUs were subject to a one-year performance period that ended on December 31, 2013, and vested at 127.08% of the original number of units granted. The remaining half were subject to a one-year performance period that ended on December 31, 2014, and vested at 131.62% of the original number of units granted. | |||||||||||||||||||||
PSUs granted in 2014 (“2014 PSUs”) | |||||||||||||||||||||
The 2014 PSUs have a two-year performance period that will end on December 31, 2015, and are subject to a three-year vesting period. | |||||||||||||||||||||
Stock Options and SARs - We have not granted stock options since 2005, but some remain outstanding. | |||||||||||||||||||||
Stock options were granted to purchase our common stock at or above the market price on the date of grant. SARs granted will be settled in stock, net of taxes, based on the appreciation of our stock price on the exercise date over the market price on the date of grant. SARs and stock options generally become 100% vested three years after the grant is made, with one-third vesting each year. Vested SARs and stock options may be exercised at any time during the ten years after grant, except in certain circumstances, generally related to employment termination or retirement. At the end of the ten-year period, any unexercised SARs and stock options expire. | |||||||||||||||||||||
The SARs granted to certain employees during 2014 and described above had an estimated fair market value of $22.68 per unit. The fair value per unit was calculated on the grant date using a modified Black-Scholes option pricing model using the following assumptions: | |||||||||||||||||||||
Expected term (in years) | 5.72 | ||||||||||||||||||||
Volatility | 35.8 | % | |||||||||||||||||||
Risk-free interest rate | 1.74 | % | |||||||||||||||||||
Dividend yield | 1.36 | % | |||||||||||||||||||
Initial price | $ | 72.26 | |||||||||||||||||||
We estimate the grant date fair value of SARs using a modified Black-Scholes option pricing model. We did not grant a material number of SARs in 2013 or 2012. The expected term is based on historical equity award activity. Volatility is based on a weighted average of the historical volatility of our stock price and implied volatility from traded options on our stock. The risk-free interest rate is based on a U.S. Treasury rate with a life equal to the expected life of the SARs grant. This rate was calculated by interpolating between the 5-year and 10-year U.S. Treasury rates. The dividend yield is based on our historical dividends declared in the 12 months prior to the grant date. | |||||||||||||||||||||
We use historical data to estimate the period of time that stock options or SARs are expected to be outstanding. | |||||||||||||||||||||
PSARs - PSARs represent the opportunity to vest in SARs. For the PSARs granted in 2013, the number of vested PSARs (which may range in specified increments from zero to 700,000 SARs) is dependent on Aetna’s total shareholder return over a three year performance period relative to a defined peer group of companies. The PSARs granted in 2013 are subject to a three-year vesting period. | |||||||||||||||||||||
The stock option, SAR and PSAR transactions during 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||
(Millions, except exercise price and remaining life) | Number of Stock | Weighted Average | Weighted | Aggregate | |||||||||||||||||
Options, SARs and PSARs | Exercise Price | Average Remaining | Intrinsic | ||||||||||||||||||
Contractual Life | Value | ||||||||||||||||||||
2012 | |||||||||||||||||||||
Outstanding, beginning of year | 26.3 | $ | 35.18 | 4 | $ | 246.3 | |||||||||||||||
Granted | 0.1 | 44.79 | — | — | |||||||||||||||||
Exercised | (6.7 | ) | 22.73 | — | 148 | ||||||||||||||||
Expired or forfeited | (.3 | ) | 43.02 | — | — | ||||||||||||||||
Outstanding, end of year | 19.4 | $ | 39.34 | 3.5 | $ | 163.8 | |||||||||||||||
Exercisable, end of year | 19.4 | $ | 39.34 | 3.5 | $ | 163.8 | |||||||||||||||
2013 | |||||||||||||||||||||
Outstanding, beginning of year | 19.4 | $ | 39.34 | 3.5 | $ | 163.8 | |||||||||||||||
Granted | 0.7 | (1) | 63.32 | — | — | ||||||||||||||||
Exercised | (9.3 | ) | 36.58 | — | 203.4 | ||||||||||||||||
Expired or forfeited | (.3 | ) | 47.11 | — | — | ||||||||||||||||
Outstanding, end of year | 10.5 | $ | 43.27 | 3.5 | $ | 264.6 | |||||||||||||||
Exercisable, end of year | 9.8 | $ | 41.77 | 3 | $ | 261.6 | |||||||||||||||
2014 | |||||||||||||||||||||
Outstanding, beginning of year | 10.5 | $ | 43.27 | 3.5 | $ | 264.6 | |||||||||||||||
Granted | 1.4 | 72.36 | — | — | |||||||||||||||||
Exercised | (3.7 | ) | 40.5 | — | 132.1 | ||||||||||||||||
Expired or forfeited | (.1 | ) | 46.94 | — | — | ||||||||||||||||
Outstanding, end of year | 8.1 | $ | 49.37 | 4.2 | $ | 318.3 | |||||||||||||||
Exercisable, end of year | 6.1 | $ | 42.86 | 2.6 | $ | 280.2 | |||||||||||||||
(1) | PSARs are included in this table at the maximum amount that could potentially vest. | ||||||||||||||||||||
The following is a summary of information regarding stock options, SARs and PSARs outstanding at December 31, 2014: | |||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number Exercisable | Weighted | Aggregate | ||||||||||||||
Exercise Prices | Outstanding | Average | Average | Intrinsic | Average | Intrinsic | |||||||||||||||
Remaining | Exercise | Value | Exercise | Value | |||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Life (Years) | |||||||||||||||||||||
20.00-30.00 | 0.1 | 3.2 | $ | 25.62 | $ | 2.9 | 0.1 | $ | 25.62 | $ | 2.9 | ||||||||||
30.00-40.00 | 1.9 | 3.4 | 32.74 | 104.5 | 1.9 | 32.74 | 104.5 | ||||||||||||||
40.00-50.00 | 2 | 2 | 43.92 | 91.2 | 2 | 43.92 | 91.2 | ||||||||||||||
50.00-60.00 | 2.1 | 2.4 | 50.54 | 80.9 | 2.1 | 50.54 | 80.9 | ||||||||||||||
60.00-70.00 | 0.7 | 8.6 | 64.25 | 17.2 | — | — | — | ||||||||||||||
70.00-80.00 | 1.3 | 9 | 72.32 | 21.6 | — | (1) | 72.26 | 0.7 | |||||||||||||
$20.00-$90.00 (2) | 8.1 | 4.2 | $ | 49.37 | $ | 318.3 | 6.1 | $ | 42.86 | $ | 280.2 | ||||||||||
-1 | The number of exercisable stock options, SARs and PSARs with exercise prices between $70 and $80 rounded to zero. | ||||||||||||||||||||
-2 | The number of outstanding stock options, SARs and PSARs with exercise prices between $80 and $90 rounded to zero. | ||||||||||||||||||||
The grant date fair values of RSUs and PSUs are based on the market price of our common stock on the date of grant. Beginning in 2010, we granted MSUs to certain employees. We estimate the grant date fair value of MSUs using a Monte Carlo simulation. MSUs granted in 2014 and 2013 had a weighted average per MSU grant date fair value of $74.99 and $49.31, respectively. MSUs granted in 2012 were valued using two separate performance periods, which resulted in a weighted average per MSU grant date fair value of $46.36 and $46.84, respectively, for the two-year and three-year vesting period tranches. The weighted-average per MSU grant date fair values listed above were calculated using the assumptions noted in the following table: | |||||||||||||||||||||
2012 | |||||||||||||||||||||
2014 | 2013 | Two-year | Three-year | ||||||||||||||||||
Dividend yield | 1.3 | % | 1.7 | % | 1.6 | % | 1.6 | % | |||||||||||||
Volatility | 26.4 | % | 28.1 | % | 31.2 | % | 37.5 | % | |||||||||||||
Risk-free interest rate | 0.7 | % | 0.4 | % | 0.2 | % | 0.3 | % | |||||||||||||
Initial price | $ | 72.26 | $ | 48.48 | $ | 44.79 | $ | 44.79 | |||||||||||||
The annualized volatility of the price of our common stock was calculated over the three-year period preceding the grant date for MSUs granted in 2014 and 2013. As the MSUs granted in 2012 have two separate performance periods (two years and three years), the annualized volatility of the price of our common stock was calculated over the two-year and three-year periods preceding the grant date. The risk-free interest rates for periods within the expected life of the MSUs are based on a constant maturity yield curve in effect on the grant date for MSUs granted in 2014, 2013 and 2012. The dividend yield assumptions for 2014, 2013 and 2012, respectively, were based on our expected 2014, 2013 and 2012 annual dividend payout, respectively. | |||||||||||||||||||||
RSU, MSU and PSU transactions in 2014, 2013 and 2012 were as follows (number of units in millions): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
RSUs, | Weighted | RSUs, | Weighted | RSUs, | Weighted | ||||||||||||||||
MSUs | Average | MSUs | Average | MSUs | Average | ||||||||||||||||
and PSUs | Grant Date | and PSUs | Grant Date | and PSUs | Grant Date | ||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
RSUs, MSUs and PSUs at beginning of year | 5.3 | $ | 48.82 | 3.4 | $ | 43.25 | 6.7 | $ | 33.62 | ||||||||||||
Granted | 2.7 | 71.88 | 3.6 | 51.22 | 4.6 | 43.71 | |||||||||||||||
Vested | (2.5 | ) | 50.11 | (1.3 | ) | 41.56 | (7.7 | ) | 34.69 | ||||||||||||
Forfeited | (.4 | ) | 56.89 | (.4 | ) | 46.65 | (.2 | ) | 37.37 | ||||||||||||
RSUs, MSUs and PSUs at end of year | 5.1 | $ | 58.57 | 5.3 | $ | 48.82 | 3.4 | $ | 43.25 | ||||||||||||
In 2013, we granted PSARs and estimated the fair value of those PSARs using a Monte Carlo simulation. The PSARs granted in 2013 had a grant date per PSAR fair value of $18.64. That grant date fair value was calculated using the assumptions noted in the following table: | |||||||||||||||||||||
Dividend yield | 1.25 | % | |||||||||||||||||||
Expected settlement period (in years) | 6.12 | ||||||||||||||||||||
Volatility | 40.4 | % | |||||||||||||||||||
Risk-free interest rate | 0.6 | % | |||||||||||||||||||
Initial price | $ | 64.25 | |||||||||||||||||||
During 2014, 2013 and 2012, the following activity occurred under the Plans: | |||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Cash received from stock option exercises | $ | 32.4 | $ | 89.1 | $ | 89.8 | |||||||||||||||
Intrinsic value of options/SARs exercised and stock units vested | 322.8 | 292 | 492.5 | ||||||||||||||||||
Tax benefits realized for the tax deductions from stock options and SARs exercised and stock units vested | 87.1 | 98.9 | 172.4 | ||||||||||||||||||
Fair value of stock options, SARs and stock units vested (1) | 106.7 | 52.1 | 273.4 | ||||||||||||||||||
(1) | The fair value represents the total dollar value of the stock options, SARs and stock units as of the respective grant dates. | ||||||||||||||||||||
We settle our stock options, SARs, PSARs and stock units with newly-issued common stock and generally utilize the proceeds from stock options to repurchase our common stock in the open market in the same period. | |||||||||||||||||||||
In 2014, 2013 and 2012 we recorded share-based compensation expense of $164 million, $127 million and $122 million, respectively, in general and administrative expenses. We also recorded related tax benefits of $37 million, $35 million and $32 million in 2014, 2013 and 2012, respectively. At December 31, 2014, $174 million of total unrecognized compensation costs related to SARs, PSARs and stock units is expected to be recognized over a weighted-average period of 1.7 years. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Income Taxes | ||||||||||
13 | Income Taxes | |||||||||
The components of our income tax provision in 2014, 2013 and 2012 were as follows: | ||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||
Current taxes: | ||||||||||
Federal | $ | 1,233.00 | $ | 901.9 | $ | 731.5 | ||||
State | 84 | 55.7 | 48.4 | |||||||
Total current taxes | 1,317.00 | 957.6 | 779.9 | |||||||
Deferred taxes (benefits): | ||||||||||
Federal | 114.1 | 63 | 112.8 | |||||||
State | 23.6 | 8 | (5.2 | ) | ||||||
Total deferred income taxes | 137.7 | 71 | 107.6 | |||||||
Total income taxes | $ | 1,454.70 | $ | 1,028.60 | $ | 887.5 | ||||
Income taxes were different from the amount computed by applying the statutory federal income tax rate to income before income taxes as follows: | ||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||
Income before income taxes | $ | 3,499.90 | $ | 2,940.50 | $ | 2,547.30 | ||||
Tax rate | 35 | % | 35 | % | 35 | % | ||||
Application of the tax rate | 1,225.00 | 1,029.20 | 891.6 | |||||||
Tax effect of: | ||||||||||
Health insurer fee | 211.9 | — | — | |||||||
State income taxes | 78.2 | 44.2 | 26.3 | |||||||
Other, net | (60.4 | ) | (44.8 | ) | (30.4 | ) | ||||
Income taxes | $ | 1,454.70 | $ | 1,028.60 | $ | 887.5 | ||||
The significant components of our net deferred tax liabilities at December 31, 2014 and 2013 were as follows: | ||||||||||
(Millions) | 2014 | 2013 | ||||||||
Deferred tax assets: | ||||||||||
Employee and postretirement benefits | $ | 290.9 | $ | 130.9 | ||||||
Insurance reserves | 252.9 | 237.4 | ||||||||
Reserve for anticipated future losses on discontinued products | 199.1 | 225.2 | ||||||||
Net operating losses | 195.3 | 176.2 | ||||||||
Investments, net | 68.3 | 76 | ||||||||
Debt fair value adjustments | 43.4 | 62 | ||||||||
Severance and facilities | 9.9 | 30.1 | ||||||||
Deferred policy acquisition costs | 9.2 | 21.9 | ||||||||
Litigation-related settlement | 6 | 43.5 | ||||||||
Other | 94.9 | 106.3 | ||||||||
Gross deferred tax assets | 1,169.90 | 1,109.50 | ||||||||
Less: Valuation allowance | 147.9 | 139.3 | ||||||||
Deferred tax assets, net of valuation allowance | 1,022.00 | 970.2 | ||||||||
Deferred tax liabilities: | ||||||||||
Goodwill and other acquired intangible assets | 868.4 | 861.9 | ||||||||
Unrealized gains on investment securities | 291.5 | 192.8 | ||||||||
Cumulative depreciation and amortization | 286.6 | 258.2 | ||||||||
Total gross deferred tax liabilities | 1,446.50 | 1,312.90 | ||||||||
Net deferred tax liabilities (1) | $ | (424.5 | ) | $ | (342.7 | ) | ||||
(1) | Includes $443.0 million and $521.5 million classified as current assets at December 31, 2014 and 2013, respectively. Includes $867.5 million and $864.2 million classified as long-term liabilities at December 31, 2014 and 2013, respectively. | |||||||||
Valuation allowances are provided when we estimate that it is more likely than not that deferred tax assets will not be realized. A valuation allowance has been established on certain federal and state net operating losses. We base our estimates of the future realization of deferred tax assets primarily on historic taxable income and existing deferred tax liabilities. | ||||||||||
We participate in the Compliance Assurance Process (the “CAP”) with the Internal Revenue Service (the “IRS”). Under the CAP, the IRS undertakes audit procedures during the tax year and as the return is prepared for filing. The IRS has concluded its CAP audit of our 2013 tax return as well as all the prior years. We expect the IRS will conclude its CAP audit of our 2014 tax return in 2015. | ||||||||||
We are also subject to audits by state taxing authorities for tax years from 2000 through 2013. We believe we carry appropriate reserves for any exposure to state tax issues. | ||||||||||
At both December 31, 2014 and December 31, 2013 we did not have material uncertain tax positions reflected in our consolidated balance sheets. | ||||||||||
We paid net income taxes of approximately $1.6 billion, $891 million and $741 million in 2014, 2013 and 2012, respectively. |
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | ||||||||
14 | Debt | |||||||
The carrying value of our long-term debt at December 31, 2014 and 2013 was as follows: | ||||||||
(Millions) | 2014 | 2013 | ||||||
Senior notes, 6.3%, due 2014 (1) | $ | — | $ | 387.3 | ||||
Senior notes, 6.125%, due 2015 | 229.3 | 240.6 | ||||||
Senior notes, 6.0%, due 2016 | — | 748.9 | ||||||
Senior notes, 5.95%, due 2017 | 418.3 | 434.2 | ||||||
Senior notes, 1.75%, due 2017 | 249.2 | 248.9 | ||||||
Senior notes, 1.5%, due 2017 | 498.6 | 498.2 | ||||||
Senior notes, 6.5%, due 2018 | — | 494.9 | ||||||
Senior notes, 2.2%, due 2019 | 374.7 | — | ||||||
Senior notes, 3.95%, due 2020 | 745.2 | 744.3 | ||||||
Senior notes, 5.45%, due 2021 | 688.6 | 702.3 | ||||||
Senior notes, 4.125%, due 2021 | 495.5 | 494.8 | ||||||
Senior notes, 2.75%, due 2022 | 986.8 | 985.1 | ||||||
Senior notes, 3.5%, due 2024 | 746.9 | — | ||||||
Senior notes, 6.625%, due 2036 | 769.8 | 769.8 | ||||||
Senior notes, 6.75%, due 2037 | 530.7 | 530.6 | ||||||
Senior notes, 4.5%, due 2042 | 480.8 | 480.1 | ||||||
Senior notes, 4.125%, due 2042 | 492.8 | 492.6 | ||||||
Senior notes, 4.75%, due 2044 | 374.1 | — | ||||||
Total long-term debt | 8,081.30 | 8,252.60 | ||||||
Less current portion of long-term debt (2) | 229.3 | 387.3 | ||||||
Total long-term debt, less current portion | $ | 7,852.00 | $ | 7,865.30 | ||||
-1 | The 6.3% senior notes were repaid in August 2014. These notes were classified as current in the consolidated balance sheet at December 31, 2013. | |||||||
(2) | At December 31, 2014, our 6.125% senior notes due January 2015 are classified as current in the accompanying consolidated balance sheet. | |||||||
At December 31, 2014, we had approximately $500 million of commercial paper outstanding with a weighted-average interest rate of .30%. At December 31, 2013, we did not have any commercial paper outstanding. | ||||||||
We paid $379 million, $364 million and $242 million in interest in 2014, 2013 and 2012, respectively. | ||||||||
We are a member of the FHLBB, and as a member we have the ability to obtain cash advances, subject to certain minimum collateral requirements. Our maximum borrowing capacity available from the FHLBB at December 31, 2014 was approximately $882 million. At December 31, 2014, we did not have any outstanding borrowings from the FHLBB. | ||||||||
Early Extinguishment of Long-Term Debt | ||||||||
Nov-14 | ||||||||
On November 3, 2014, we announced the redemption for cash of the entire $495.6 million aggregate principal amount outstanding of our 6.50% senior notes due 2018. The redemption of these notes occurred on December 3, 2014 (the “December Redemption Date”) at a redemption price that included a make-whole premium, plus interest accrued and unpaid at the December Redemption Date. We financed the redemption by issuing $750 million of 3.5% senior notes due 2024 (the “November 2014 Senior Notes”). As a result of the redemption, in the fourth quarter of 2014, we recorded a loss on the early extinguishment of long-term debt of $58.1 million ($89.3 million pretax). | ||||||||
In April 2014, we entered into an interest rate swap with a notional value of $250 million. We designated this swap as a cash flow hedge against interest rate exposure related to the forecasted future issuance of fixed-rate debt to be primarily used to refinance long-term debt maturing in 2018. In November 2014, prior to issuing the November 2014 Senior Notes used to refinance our 6.50% senior notes due 2018 and for general corporate purposes, we terminated this swap and paid an aggregate of $15.2 million to the swap counterparty upon termination. We performed a final effectiveness test upon termination of this swap and determined there was approximately $3 million pretax of ineffectiveness that arose due to the actual debt issuance date being earlier than forecasted. The ineffectiveness was recorded as a realized capital loss in the fourth quarter of 2014. The effective portion of the hedge loss of approximately $12 million pretax was recorded in accumulated other comprehensive loss, net of tax, and is being amortized as an increase to interest expense over the first 20 semi-annual interest payments of the November 2014 Senior Notes. | ||||||||
Mar-14 | ||||||||
On February 7, 2014, we announced the redemption for cash of the entire $750 million aggregate principal amount outstanding of our 6.0% senior notes due 2016. The redemption of these notes occurred on March 14, 2014 (the “March Redemption Date”) at a redemption price that included a make-whole premium, plus interest accrued and unpaid at the March Redemption Date. We financed the redemption by issuing $375 million of 2.2% senior notes due 2019 and $375 million of 4.75% senior notes due 2044 (collectively, the “March 2014 Senior Notes”), together with other available resources. As a result of the redemption, in the first quarter of 2014, we recorded a loss on the early extinguishment of long-term debt of $59.7 million ($91.9 million pretax). | ||||||||
During June and July 2012, we entered into two interest rate swaps with an aggregate notional value of $375 million. We designated these swaps as cash flow hedges against interest rate exposure related to the forecasted future issuance of fixed-rate debt to refinance our 6.0% senior notes due 2016. In March 2014, prior to issuing the March 2014 Senior Notes used to refinance our 6.0% senior notes due 2016, we terminated these swaps and received an aggregate of $34.2 million from the swap counterparties upon termination. We performed a final effectiveness test upon termination of these swaps and determined there was approximately $12 million pretax of ineffectiveness that arose due to the actual debt issuance date being earlier than forecasted. The ineffectiveness was recorded as a realized capital gain in the first quarter of 2014. The effective portion of the hedge gain of approximately $22 million pretax was recorded in accumulated other comprehensive loss, net of tax, and is being amortized as a reduction to interest expense over the first 20 semi-annual interest payments associated with the $375 million of 4.75% senior notes due 2044. | ||||||||
2012 | ||||||||
In 2012, we repurchased approximately $200 million par value of our outstanding senior notes and recorded a loss on the early extinguishment of this long-term debt of $55.2 million ($84.9 million pretax) during 2012. | ||||||||
Interest Rate Swaps | ||||||||
In March 2014, we entered into two interest rate swaps with an aggregate notional value of $500 million. We designated these swaps as cash flow hedges against interest rate exposure related to the forecasted future issuance of fixed-rate debt to be primarily used to refinance long-term debt maturing in 2017. At December 31, 2014, these interest rate swaps had a pretax fair value loss of $53.2 million, which was reflected net of tax in accumulated other comprehensive loss within shareholders’ equity. | ||||||||
Revolving Credit Facility | ||||||||
On March 27, 2012, we entered into an unsecured $1.5 billion five-year revolving credit agreement (the “Credit Agreement”) with several financial institutions. On September 24, 2012, in connection with the acquisition of Coventry, we entered into a First Amendment (the “First Amendment”) to the Credit Agreement and also entered into an Incremental Commitment Agreement (the “Incremental Commitment”, and together with the First Amendment and the Credit Agreement, resulting in the “Facility”). The Facility is an unsecured $2.0 billion revolving credit agreement. Upon our agreement with one or more financial institutions, we may expand the aggregate commitments under the Facility to a maximum of $2.5 billion. The Facility also provides for the issuance of up to $200 million of letters of credit at our request, which count as usage of the available commitments under the Facility. In 2013, we extended the maturity date of the Facility by one year. On March 27, 2014, we extended the maturity date of the Facility by an additional year to March 27, 2019. | ||||||||
Various interest rate options are available under the Facility. Any revolving borrowings mature on the termination date of the Facility. We pay facility fees on the Facility ranging from .070% to .150% per annum, depending upon our long-term senior unsecured debt rating. The facility fee was .100% at December 31, 2014. The Facility contains a financial covenant that requires us to maintain a ratio of total debt to consolidated capitalization as of the end of each fiscal quarter at or below 50%. For this purpose, consolidated capitalization equals the sum of total shareholders’ equity, excluding any overfunded or underfunded status of our pension and OPEB plans and any net unrealized capital gains and losses, and total debt (as defined in the Facility). We met this requirement at December 31, 2014. There were no amounts outstanding under the Facility at any time during the year ended December 31, 2014 or 2013. |
Capital_Stock
Capital Stock | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Class of Stock Disclosures [Abstract] | ||||||||||||||||||||||
Capital Stock | ||||||||||||||||||||||
15 | Capital Stock | |||||||||||||||||||||
From time to time, our Board authorizes us to repurchase our common stock. The repurchases are effected from time to time in the open market, through negotiated transactions, including accelerated share repurchase agreements, and through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The activity under Board authorized share repurchase programs in 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||
Purchase Not to Exceed | Shares Purchased | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(Millions) | Shares | Cost | Shares | Cost | Shares | Cost | ||||||||||||||||
Authorization date: | ||||||||||||||||||||||
21-Nov-14 | $ | 1,000.00 | — | $ | — | — | $ | — | — | $ | — | |||||||||||
28-Feb-14 | 1,000.00 | 7.6 | 621 | — | — | — | — | |||||||||||||||
27-Sep-13 | 750 | 8.3 | 597 | 2.3 | 153 | — | — | |||||||||||||||
19-Feb-13 | 750 | — | — | 11.6 | 750 | — | — | |||||||||||||||
27-Jul-12 | 750 | — | — | 9.1 | 504.7 | 5.3 | 245.3 | |||||||||||||||
24-Feb-12 | 750 | — | — | — | — | 17.8 | 750 | |||||||||||||||
23-Sep-11 | 750 | — | — | — | — | 9.2 | 422.2 | |||||||||||||||
Total repurchases | N/A | 15.9 | $ | 1,218.00 | 23 | $ | 1,407.70 | 32.3 | $ | 1,417.50 | ||||||||||||
Repurchase authorization remaining at December 31, | N/A | $ | 1,379.00 | N/A | $ | 597 | N/A | $ | 504.7 | |||||||||||||
As described above, from time to time we enter into accelerated share repurchase agreements with unrelated third party financial institutions. The number of shares repurchased under each agreement is based on the volume-weighted average price of our common stock during the purchase period. We have completed the following accelerated share repurchase programs with repurchase periods during the year ended December 31, 2014: | ||||||||||||||||||||||
Trade Date: | Value of Repurchase Program (Millions) | Repurchase Period | Number of Shares Repurchased (Millions) | |||||||||||||||||||
May 16, 2014 | $ | 100 | Jul-14 | 1.2 | ||||||||||||||||||
August 5, 2014 | 100 | Oct-14 | 1.3 | |||||||||||||||||||
Under the share repurchase program authorized by our Board, we entered into an accelerated share repurchase agreement with an unrelated third party financial institution on December 15, 2014 to repurchase an aggregate of $150 million of our outstanding common stock during January and February 2015. Under this agreement, we repurchased approximately 1.6 million shares of our common stock based on the volume-weighted average price of our common stock during the purchase period. | ||||||||||||||||||||||
In December 2013, our Board increased our quarterly cash dividend to shareholders to $.225 per share. In November 2014, our Board increased our quarterly cash dividend to shareholders to $.25 per share. | ||||||||||||||||||||||
In 2014 and 2013 our Board declared the following cash dividends: | ||||||||||||||||||||||
Date Declared | Dividend Amount | Stockholders of | Date Paid/ | Total Dividends | ||||||||||||||||||
Per Share | Record Date | To be Paid | (Millions) | |||||||||||||||||||
19-Feb-13 | $ | 0.2 | 11-Apr-13 | 26-Apr-13 | $ | 65.3 | ||||||||||||||||
17-May-13 | 0.2 | 11-Jul-13 | 26-Jul-13 | 74.4 | ||||||||||||||||||
27-Sep-13 | 0.2 | 10-Oct-13 | 25-Oct-13 | 73.5 | ||||||||||||||||||
6-Dec-13 | 0.225 | 16-Jan-14 | 31-Jan-14 | 81.6 | ||||||||||||||||||
28-Feb-14 | 0.225 | 10-Apr-14 | 25-Apr-14 | 80.4 | ||||||||||||||||||
30-May-14 | 0.225 | 10-Jul-14 | 25-Jul-14 | 79.6 | ||||||||||||||||||
19-Sep-14 | 0.225 | 16-Oct-14 | 31-Oct-14 | 79 | ||||||||||||||||||
21-Nov-14 | 0.25 | 15-Jan-15 | 30-Jan-15 | 87.5 | ||||||||||||||||||
Declaration and payment of future dividends is at the discretion of our Board and may be adjusted as business needs or market conditions change. | ||||||||||||||||||||||
In addition to the common stock disclosed on our balance sheets, approximately 8 million shares of Class A voting preferred stock, $.01 par value per share, have been authorized. At December 31, 2014, there were also approximately 439 million undesignated shares that our Board has the power to divide into such classes and series, with such voting rights, designations, preferences, limitations and special rights as our Board determines. |
Dividend_Restrictions_and_Stat
Dividend Restrictions and Statutory Surplus | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Dividend Restrictions and Statutory Surplus [Abstract] | ||||||||||
Dividend Restrictions and Statutory Surplus | 16. Dividend Restrictions and Statutory Surplus | |||||||||
Our business operations are conducted through subsidiaries that principally consist of HMOs and insurance companies. In addition to general state law restrictions on payments of dividends and other distributions to shareholders applicable to all corporations, HMOs and insurance companies are subject to further regulations that, among other things, may require those companies to maintain certain levels of equity and restrict the amount of dividends and other distributions that may be paid to their equity holders. The additional regulations applicable to our HMO and insurance company subsidiaries are not expected to affect our ability to service our debt, meet our other financing obligations or pay dividends. | ||||||||||
Under applicable regulatory requirements, at December 31, 2014, the amount of dividends that may be paid by our insurance and HMO subsidiaries without prior approval by regulatory authorities was approximately $2.2 billion in the aggregate. There are no such restrictions on distributions from Aetna to its shareholders. During 2014, our insurance and HMO subsidiaries paid approximately $1.2 billion of dividends to the Company. | ||||||||||
The combined statutory net income for the years ended and combined statutory capital and surplus at December 31, 2014, 2013 and 2012 for our insurance and HMO subsidiaries were as follows: | ||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||
Statutory net income | $ | 2,126.60 | $ | 1,750.10 | $ | 1,813.70 | ||||
Statutory capital and surplus | 9,405.80 | 8,431.00 | 6,372.80 | |||||||
Reinsurance
Reinsurance | 12 Months Ended | |
Dec. 31, 2014 | ||
Reinsurance Disclosures [Abstract] | ||
Reinsurance | ||
17 | Reinsurance | |
Effective October 1, 1998, we reinsured certain policyholder liabilities and obligations related to individual life insurance (in conjunction with our former parent company’s sale of this business). These transactions were in the form of indemnity reinsurance arrangements, whereby the assuming companies contractually assumed certain policyholder liabilities and obligations, although we remain directly obligated to policyholders. The liability related to our obligation is recorded in future policy benefits and policyholders’ funds on our balance sheets. Assets related to and supporting these policies were transferred to the assuming companies, and we recorded a reinsurance recoverable. | ||
There is not a material difference between premiums on a written basis versus an earned basis. Reinsurance recoveries were approximately $189 million, $110 million and $98 million in 2014, 2013 and 2012, respectively. Reinsurance recoverables related to these obligations were approximately $1.2 billion at December 31, 2014, approximately $793 million at December 31, 2013 and approximately $919 million at December 31, 2012. At December 31, 2014, reinsurance recoverables with a carrying value of approximately $706 million were associated with two reinsurers. Additionally, at December 31, 2014, we recorded a receivable under Health Care Reform’s temporary three-year reinsurance program of approximately $338 million. Refer to Note 2 beginning on page 80 for additional information about Health Care Reform’s temporary three-year reinsurance program. | ||
Effective January 1, 2012, we renewed our agreement with an unrelated insurer to reinsure fifty percent of our group term life and group accidental death and dismemberment insurance policies. During 2013 and 2012, we entered into agreements to reinsure certain Health Care insurance policies. We entered into these contracts to reduce the risk of catastrophic loss which in turn reduces our capital and surplus requirements. These contracts did not qualify for reinsurance accounting under GAAP, and consequently are accounted for using deposit accounting. | ||
Effective 2014, 2013 and 2012, we entered into certain three to five-year reinsurance agreements with unrelated insurers (Vitality Re V, Vitality Re IV and Vitality Re III). At December 31, 2014, 2013 and 2012, these agreements allowed us to reduce our required capital and provided an aggregate of $500 million, $690 million and $540 million, respectively, of collateralized excess of loss reinsurance coverage on a portion of Aetna’s group Commercial Insured Health Care business. | ||
In May 2013, we entered into two agreements with unrelated reinsurers to reinsure a portion of our Medicare Advantage business and a portion of our group Commercial Insured Health Care business, respectively. These contracts did not qualify for reinsurance accounting under GAAP, and consequently are accounted for using deposit accounting. | ||
In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In September 2008, we took possession of assets supporting the reinsurance recoverable, which previously were held as collateral in a trust. In 2013, we sold our claim against Lehman Re to an unrelated third party (including the reinsurance recoverable) and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we reversed the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | ||
18 | Commitments and Contingencies | |
Guarantees | ||
We have the following significant guarantee and indemnification arrangements at December 31, 2014. | ||
• | ASC Claim Funding Accounts - We have arrangements with certain banks for the processing of claim payments for our ASC customers. The banks maintain accounts to fund claims of our ASC customers. The customer is responsible for funding the amount paid by the bank each day. In these arrangements, we guarantee that the banks will not sustain losses if the responsible ASC customer does not properly fund its account. The aggregate maximum exposure under these arrangements is $250 million. We can limit our exposure to this guarantee by suspending the payment of claims for ASC customers that have not adequately funded the amount paid by the bank. | |
• | Indemnification Agreements - In connection with certain acquisitions and dispositions of assets and/or businesses, our various issuances of long-term debt and our reinsurance relationships with Vitality Re III Limited, Vitality Re IV Limited and Vitality Re V Limited, we have incurred certain customary indemnification obligations to the applicable seller, purchaser, underwriters and/or various other participants. In general, we have agreed to indemnify the other party for certain losses relating to the assets or business that we or they purchased or sold or for other matters on terms that are customary for similar transactions. Certain portions of our indemnification obligations are capped at the applicable transaction price, while other arrangements are not subject to such a limit. At December 31, 2014, we do not believe that our future obligations under any of these agreements will be material to our financial condition. | |
• | Separate Accounts assets - Certain Separate Accounts assets associated with the Large Case Pensions business represent funds maintained as a contractual requirement to fund specific pension annuities that we have guaranteed. Minimum contractual obligations underlying the guaranteed benefits in these Separate Accounts were $2.2 billion at both December 31, 2014 and 2013. Refer to Note 2 beginning on page 80 for additional information on Separate Accounts. Contract holders assume all investment and mortality risk and are required to maintain Separate Account balances at or above a specified level. The level of required funds is a function of the risk underlying the Separate Account’s investment strategy. If contract holders do not maintain the required level of Separate Account assets to meet the annuity guarantees, we would establish an additional liability. Contract holders’ balances in the Separate Accounts at December 31, 2014 exceeded the value of the guaranteed benefit obligation. As a result, we were not required to maintain any additional liability for our related guarantees at December 31, 2014. | |
• | Minimum Volume Commitments - In connection with the Coventry acquisition we assumed certain supplier agreements with minimum volume commitments which require us to make payments to the suppliers if the level of medical membership subject to the agreements falls below specified levels. The maximum potential amount of future payments we could be required to make over the remaining terms of the agreements, assuming the medical membership subject to the agreements is zero, is $136 million. | |
Guaranty Fund Assessments, Market Stabilization and Other Non-Voluntary Risk Sharing Pools | ||
Under guaranty fund laws existing in all states, insurers doing business in those states can be assessed (up to prescribed limits) for certain obligations of insolvent insurance companies to policyholders and claimants. The life and health insurance guaranty associations in which we participate that operate under these laws respond to insolvencies of long-term care insurers as well as health insurers. Our assessments generally are based on a formula relating to our premiums in the state compared to the premiums of other insurers. Certain states allow assessments to be recovered as offsets to premium taxes. Some states have similar laws relating to HMOs and/or other payors such as not-for-profit consumer-governed health plans established under Health Care Reform. In 2009, the Pennsylvania Insurance Commissioner (the “Commissioner”) placed long-term care insurer Penn Treaty Network America Insurance Company and one of its subsidiaries (collectively, “Penn Treaty”) in rehabilitation, an intermediate action before insolvency, and subsequently petitioned a state court to convert the rehabilitation into a liquidation. In 2012, the state court denied the Commissioner’s petition for liquidation. The Commissioner has appealed the state court’s denial of the petition for liquidation, and the Pennsylvania Supreme Court held oral argument on that appeal in September 2014. The state court’s 2012 order directed the Commissioner to develop a plan of rehabilitation. The Commissioner filed an initial rehabilitation plan in April 2013, and filed amended plans in August 2014 and October 2014. In December 2014, the state court set a hearing for July 2015 to consider the Commissioner’s most recent proposed rehabilitation plan, which contemplates a partial liquidation of Penn Treaty. If Penn Treaty is placed in liquidation, we and other insurers likely would be assessed immediately or over a period of years by guaranty associations for the payments the guaranty associations are required to make to Penn Treaty policyholders. We are currently unable to predict the ultimate outcome of, or reasonably estimate the loss or range of losses resulting from, this potential insolvency because we cannot predict the extent to which rehabilitation efforts may succeed, the amount of the insolvency, the amount and timing of associated future guaranty association assessments or the amount or availability of potential offsets, such as premium tax offsets. It is reasonably possible that in future reporting periods we may record a liability and expense relating to Penn Treaty or other insolvencies which could have a material adverse effect on our operating results, financial condition and cash flows. While we have historically recovered more than half of guaranty fund assessments through statutorily permitted premium tax offsets, significant increases in assessments could lead to legislative and/or regulatory actions that may limit future offsets. | ||
HMOs in certain states in which we do business are subject to assessments, including market stabilization and other risk-sharing pools, for which we are assessed charges based on incurred claims, demographic membership mix and other factors. We establish liabilities for these assessments based on applicable laws and regulations. In certain states, the ultimate assessments we pay are dependent upon our experience relative to other entities subject to the assessment and the ultimate liability is not known at the balance sheet date. While the ultimate amount of the assessment is dependent upon the experience of all pool participants, we believe we have adequate reserves to cover such assessments. | ||
Litigation and Regulatory Proceedings | ||
Out-of-Network Benefit Proceedings | ||
We are named as a defendant in several purported class actions and individual lawsuits arising out of our practices related to the payment of claims for services rendered to our members by health care providers with whom we do not have a contract (“out-of-network providers”). Among other things, these lawsuits allege that we paid too little to our health plan members and/or providers for these services, among other reasons, because of our use of data provided by Ingenix, Inc., a subsidiary of one of our competitors (“Ingenix”). Other major health insurers are the subject of similar litigation or have settled similar litigation. | ||
Various plaintiffs who are health care providers or medical associations seek to represent nationwide classes of out-of-network providers who provided services to our members during the period from 2001 to the present. Various plaintiffs who are members in our health plans seek to represent nationwide classes of our members who received services from out-of-network providers during the period from 2001 to the present. Taken together, these lawsuits allege that we violated state law, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Racketeer Influenced and Corrupt Organizations Act and federal antitrust laws, either acting alone or in concert with our competitors. The purported classes seek reimbursement of all unpaid benefits, recalculation and repayment of deductible and coinsurance amounts, unspecified damages and treble damages, statutory penalties, injunctive and declaratory relief, plus interest, costs and attorneys’ fees, and seek to disqualify us from acting as a fiduciary of any benefit plan that is subject to ERISA. Individual lawsuits that generally contain similar allegations and seek similar relief have been brought by health plan members and out-of-network providers. | ||
The first class action case was commenced on July 30, 2007. The federal Judicial Panel on Multi-District Litigation (the “MDL Panel”) has consolidated these class action cases in the U.S. District Court for the District of New Jersey (the “New Jersey District Court”) under the caption In re: Aetna UCR Litigation, MDL No. 2020 (“MDL 2020”). In addition, the MDL Panel has transferred the individual lawsuits to MDL 2020. On May 9, 2011, the New Jersey District Court dismissed the physician plaintiffs from MDL 2020 without prejudice. The New Jersey District Court’s action followed a ruling by the United States District Court for the Southern District of Florida (the “Florida District Court”) that the physician plaintiffs were enjoined from participating in MDL 2020 due to a prior settlement and release. The United States Court of Appeals for the Eleventh Circuit has dismissed the physician plaintiffs’ appeal of the Florida District Court’s ruling. | ||
On December 6, 2012, we entered into an agreement to settle MDL No. 2020. Under the terms of the proposed nationwide settlement, we would have been released from claims relating to our out-of-network reimbursement practices from the beginning of the applicable settlement class period through August 30, 2013. The settlement agreement did not contain an admission of wrongdoing. The medical associations were not parties to the settlement agreement. | ||
Under the settlement agreement, we would have paid up to $120 million to fund claims submitted by health plan members and health care providers who were members of the settlement classes. These payments also would have funded the legal fees of plaintiffs’ counsel and the costs of administering the settlement. | ||
In connection with the proposed settlement, the Company recorded an after-tax charge to net income attributable to Aetna of approximately $78 million in the fourth quarter of 2012. | ||
The settlement agreement provided us the right to terminate the agreement under certain conditions related to settlement class members who opted out of the settlement. Based on a report provided to the parties by the settlement administrator, the conditions permitting us to terminate the settlement agreement were satisfied. On March 13, 2014, we notified the New Jersey District Court and plaintiffs’ counsel that we were terminating the settlement agreement. Various legal and factual developments since the date of the settlement agreement led us to believe terminating the settlement agreement was in our best interests. We intend to vigorously defend ourselves against the claims brought by the plaintiffs. As a result of this termination, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). | ||
We also have received subpoenas and/or requests for documents and other information from, and been investigated by, attorneys general and other state and/or federal regulators, legislators and agencies relating to our out-of-network benefit payment and administration practices. It is reasonably possible that others could initiate additional litigation or additional regulatory action against us with respect to our out-of-network benefit payment and/or administration practices. | ||
CMS Actions | ||
The Centers for Medicare & Medicaid Services (“CMS”) regularly audits our performance to determine our compliance with CMS’s regulations and our contracts with CMS and to assess the quality of services we provide to Medicare beneficiaries. CMS uses various payment mechanisms to allocate and adjust premium payments to our and other companies’ Medicare plans by considering the applicable health status of Medicare members as supported by information prepared, maintained and provided by health care providers. We collect claim and encounter data from providers and generally rely on providers to appropriately code their submissions to us and document their medical records, including the diagnosis data submitted to us with claims. CMS pays increased premiums to Medicare Advantage plans and PDPs for members who have certain medical conditions identified with specific diagnosis codes. Federal regulators review and audit the providers’ medical records to determine whether those records support the related diagnosis codes that determine the members’ health status and the resulting risk-adjusted premium payments to us. In that regard, CMS has instituted risk adjustment data validation (“RADV”) audits of various Medicare Advantage plans, including certain of the Company’s plans, to validate coding practices and supporting medical record documentation maintained by health care providers and the resulting risk adjusted premium payments to the plans. CMS may require us to refund premium payments if our risk adjusted premiums are not properly supported by medical record data. The Office of Inspector General (the “OIG”) also is auditing risk adjustment data of other companies, and we expect CMS and the OIG to continue auditing risk adjustment data. | ||
CMS revised its audit methodology for RADV audits to determine refunds payable by Medicare Advantage plans for contract year 2011 and forward. Under the revised methodology, among other things, CMS will project the error rate identified in the audit sample of approximately 200 members to all risk adjusted premium payments made under the contract being audited. Historically, CMS did not project sample error rates to the entire contract. As a result, the revised methodology may increase our exposure to premium refunds to CMS based on incomplete medical records maintained by providers. During 2013, CMS selected certain of our Medicare Advantage contracts for contract year 2011 for audit. We are currently unable to predict which of our Medicare Advantage contracts will be selected for future audit, the amounts of any retroactive refunds of, or prospective adjustments to, Medicare Advantage premium payments made to us, the effect of any such refunds or adjustments on the actuarial soundness of our Medicare Advantage bids, or whether any RADV audit findings would cause a change to our method of estimating future premium revenue in future bid submissions to CMS or compromise premium assumptions made in our bids for prior contract years or the current contract year. Any premium or fee refunds or adjustments resulting from regulatory audits, whether as a result of RADV, Public Exchange related or other audits by CMS, the OIG, HHS or otherwise, including audits of our minimum medical loss ratio rebates, methodology and/or reports, could be material and could adversely affect our operating results, financial condition and cash flows. | ||
Other Litigation and Regulatory Proceedings | ||
We are involved in numerous other lawsuits arising, for the most part, in the ordinary course of our business operations, including claims of or relating to bad faith, medical malpractice, non-compliance with state and federal regulatory regimes, marketing misconduct, failure to timely or appropriately pay or administer claims and benefits in our Health Care and Group Insurance businesses (including our post-payment audit and collection practices and reductions in payments to providers due to sequestration), provider network structure (including the use of | ||
performance-based networks and termination of provider contracts), rescission of insurance coverage, improper disclosure of personal information, anticompetitive practices, patent infringement and other intellectual property litigation, other legal proceedings in our Health Care and Group Insurance businesses and employment litigation. Some of these other lawsuits are or are purported to be class actions. We intend to vigorously defend ourselves against the claims brought in these matters. | ||
Awards to us and others of certain government contracts, particularly in our Medicaid business, are subject to increasingly frequent protests by unsuccessful bidders. These protests may result in awards to us being reversed, delayed or modified. The loss or delay in implementation of any government contract could adversely affect our operating results. We will continue to defend vigorously contract awards we receive. | ||
In addition, our operations, current and past business practices, current and past contracts, and accounts and other books and records are subject to routine, regular and special investigations, audits, examinations and reviews by, and from time to time we receive subpoenas and other requests for information from, CMS, the U.S. Department of Health and Human Services, various state insurance and health care regulatory authorities, state attorneys general and offices of inspector general, the Center for Consumer Information and Insurance Oversight, OIG, the Office of Personnel Management, the U.S. Department of Labor, the U.S. Department of the Treasury, the U.S. Food and Drug Administration, committees, subcommittees and members of the U.S. Congress, the U.S. Department of Justice, the Federal Trade Commission, U.S. attorneys and other state, federal and international governmental authorities. These government actions include inquiries by, and testimony before, certain members, committees and subcommittees of the U.S. Congress regarding certain of our current and past business practices, including our overall claims processing and payment practices, our business practices with respect to our small group products, student health products or individual customers (such as market withdrawals, rating information, premium increases and medical benefit ratios), executive compensation matters and travel and entertainment expenses, as well as the investigations by, and subpoenas and requests from, attorneys general and others described above under “Out-of-Network Benefit Proceedings.” | ||
A significant number of states are investigating life insurers’ claims payment and related escheat practices, and these investigations have resulted in significant charges to earnings by other life insurers in connection with related settlements. We have received requests for information from a number of states, and certain of our subsidiaries are being audited, with respect to our life insurance claim payment and related escheat practices. In the fourth quarter of 2013, we made changes to our life insurance claim payment practices (including related escheatment practices) based on evolving industry practices and regulatory expectations and interpretations, including expanding our existing use of the Social Security Administration’s Death Master File to identify additional potentially unclaimed death benefits and locate applicable beneficiaries. As a result of these changes, in the fourth quarter of 2013, we increased our estimated liability for unpaid life insurance claims with respect to insureds who passed away on or before December 31, 2013, and recorded in current and future benefits a charge of $35.7 million ($55.0 million pretax). Given the legal and regulatory uncertainty with respect to life insurance claim payment and related escheat practices, it is reasonably possible that we may incur additional liability related to those practices, whether as a result of further changes in our business practices, litigation, government actions or otherwise, which could adversely affect our operating results and cash flows. | ||
There also continues to be a heightened level of review by regulatory authorities of, and increased litigation regarding, our and the rest of the health care and related benefits industry’s business and reporting practices, including premium rate increases, utilization management, development and application of medical policies, complaint, grievance and appeal processing, information privacy, provider network structure (including provider network adequacy, the use of performance-based networks and termination of provider contracts), calculation of minimum medical loss ratios, delegated arrangements, rescission of insurance coverage, limited benefit health products, student health products, pharmacy benefit management practices (including the use of narrow networks and the placement of drugs in formulary tiers), sales practices, and claim payment practices (including payments to out-of-network providers and payments on life insurance policies). | ||
As a leading national health and related benefits company, we regularly are the subject of government actions of the types described above. These government actions may prevent or delay us from implementing planned premium rate increases and may result, and have resulted, in restrictions on our business, changes to or clarifications of our business practices, retroactive adjustments to premiums, refunds or other payments to members, beneficiaries, states or the federal government, withholding of premium payments to us by government agencies, assessments of damages, civil or criminal fines or penalties, or other sanctions, including the possible suspension or loss of licensure and/or suspension or exclusion from participation in government programs. | ||
Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve fines, penalties or punitive damages that are discretionary in amount, involve a large number of claimants or regulatory authorities, represent a change in regulatory policy, present novel legal theories, are in the early stages of the proceedings, are subject to appeal or could result in a change in business practices. In addition, because most legal proceedings are resolved over long periods of time, potential losses are subject to change due to, among other things, new developments, changes in litigation strategy, the outcome of intermediate procedural and substantive rulings and other parties’ settlement posture and their evaluation of the strength or weakness of their case against us. Except as specifically noted above under “Other Litigation and Regulatory Proceedings,” we are currently unable to predict the ultimate outcome of, or reasonably estimate the losses or a range of losses resulting from, the matters described above, and it is reasonably possible that their outcome could be material to us. | ||
Other Obligations | ||
We have operating leases for office space and certain computer and other equipment. Rental expenses for these items were $177 million, $170 million and $142 million in 2014, 2013 and 2012, respectively. The future net minimum payments under non-cancelable leases for 2015 through 2019 are estimated to be $139 million, $103 million, $74 million, $56 million and $39 million, respectively. | ||
We also have funding obligations relating to equity limited partnership investments and real estate partnerships. The funding requirements for equity limited partnership investments and real estate partnerships for 2015 through 2019 are estimated to be $132 million, $87 million, $55 million, $33 million and $22 million, respectively. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | ||||||||||||||||
19 | Segment Information | |||||||||||||||
Our operations are conducted in three business segments: Health Care, Group Insurance and Large Case Pensions. The acquired Coventry operations are reflected in our Health Care segment on and after May 7, 2013. Our Corporate Financing segment is not a business segment; it is added to our business segments to reconcile to our consolidated results. The Corporate Financing segment includes interest expense on our outstanding debt and the financing components of our pension and OPEB plan expense (the service cost and prior service cost components of this expense are allocated to our business segments). Non-GAAP financial measures we disclose, such as operating earnings, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. | ||||||||||||||||
Summarized financial information of our segment operations for 2014, 2013 and 2012 were as follows: | ||||||||||||||||
(Millions) | Health | Group | Large Case | Corporate | Total Company | |||||||||||
Care | Insurance | Pensions (2) | Financing | |||||||||||||
2014 | ||||||||||||||||
Revenue from external customers | $ | 54,676.60 | $ | 2,214.20 | $ | 86.1 | $ | — | $ | 56,976.90 | ||||||
Net investment income | 367.6 | 261.2 | 317.1 | — | 945.9 | |||||||||||
Interest expense | — | — | — | 329.3 | 329.3 | |||||||||||
Depreciation and amortization expense | 627.8 | 1.2 | — | — | 629 | |||||||||||
Income taxes (benefits) | 1,587.20 | 57.4 | 0.7 | (190.6 | ) | 1,454.70 | ||||||||||
Operating earnings (loss) (1) | 2,376.50 | 171 | 20.7 | (163.6 | ) | 2,404.60 | ||||||||||
Segment assets | 36,614.70 | 5,510.80 | 11,276.60 | — | 53,402.10 | |||||||||||
2013 | ||||||||||||||||
Revenue from external customers | $ | 44,085.20 | $ | 2,053.30 | $ | 248.6 | $ | — | $ | 46,387.10 | ||||||
Net investment income | 309.3 | 286.6 | 320.4 | — | 916.3 | |||||||||||
Interest expense | — | — | — | 333.7 | 333.7 | |||||||||||
Depreciation and amortization expense | 564.7 | 4.4 | — | — | 569.1 | |||||||||||
Income taxes (benefits) | 1,078.40 | 32.3 | 21.8 | (103.9 | ) | 1,028.60 | ||||||||||
Operating earnings (loss) (1) | 2,267.40 | 130.9 | 21.2 | (178.4 | ) | 2,241.10 | ||||||||||
Segment assets | 33,212.90 | 5,520.30 | 11,031.60 | — | 49,764.80 | |||||||||||
2012 | ||||||||||||||||
Revenue from external customers | $ | 32,608.90 | $ | 1,842.00 | $ | 1,118.00 | $ | — | $ | 35,568.90 | ||||||
Net investment income | 310.4 | 282.8 | 329 | — | 922.2 | |||||||||||
Interest expense | — | — | — | 268.8 | 268.8 | |||||||||||
Depreciation and amortization expense | 445.5 | 4.4 | — | — | 449.9 | |||||||||||
Income taxes (benefits) | 950.5 | 62.3 | (2.4 | ) | (122.9 | ) | 887.5 | |||||||||
Operating earnings (loss) (1) | 1,841.50 | 164.4 | 17.8 | (161.8 | ) | 1,861.90 | ||||||||||
Segment assets | 24,138.90 | 5,697.50 | 11,551.10 | — | 41,387.50 | |||||||||||
(1) | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation on page 134. | |||||||||||||||
(2) | In 2013 and 2012, pursuant to contractual rights exercised by the contract holders, certain existing group annuity contracts converted from participating to non-participating contracts. Upon conversion, we recorded $99.0 million and $941.4 million of non-cash group annuity conversion premium for these contracts and a corresponding $99.0 million and $941.4 million non-cash benefit expense on group annuity conversion for these contracts during 2013 and 2012, respectively. | |||||||||||||||
A reconciliation of operating earnings (1) to net income attributable to Aetna in 2014, 2013 and 2012 was as follows. | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Operating earnings | $ | 2,404.60 | $ | 2,241.10 | $ | 1,861.90 | ||||||||||
Transaction, integration-related and restructuring costs, net of tax | (134.2 | ) | (233.5 | ) | (25.4 | ) | ||||||||||
Loss on early extinguishment of long-term debt, net of tax | (117.8 | ) | — | (55.2 | ) | |||||||||||
Pension settlement charge, net of tax | (72.5 | ) | — | — | ||||||||||||
Release of litigation-related reserve, net of tax | 67 | — | — | |||||||||||||
Charge for changes in our life insurance claim payment practices, net of tax | — | (35.7 | ) | — | ||||||||||||
Reduction of reserve for anticipated future losses on discontinued products, net of tax | — | 55.9 | — | |||||||||||||
Reversal of allowance and gain on sale of reinsurance recoverable, net of tax | — | 32.1 | — | |||||||||||||
Litigation-related settlement, net of tax | — | — | (78.0 | ) | ||||||||||||
Severance charge, net of tax | — | — | (24.1 | ) | ||||||||||||
Amortization of other acquired intangible assets, net of tax | (158.2 | ) | (139.5 | ) | (92.3 | ) | ||||||||||
Net realized capital gains (losses), net of tax | 51.9 | (6.8 | ) | 71 | ||||||||||||
Net income attributable to Aetna | $ | 2,040.80 | $ | 1,913.60 | $ | 1,657.90 | ||||||||||
(1) | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance: | |||||||||||||||
• | We incurred transaction and integration-related costs of $134.2 million ($200.7 million pretax) related to the acquisitions of Coventry, bSwift and InterGlobal during 2014. We incurred transaction, integration-related and restructuring costs of $233.5 million ($332.8 million pretax) and $25.4 million ($32.6 million pretax) during 2013 and 2012, related to the acquisition of Coventry, respectively. Restructuring costs, primarily comprised of severance and real estate consolidation costs, are related to the acquisition of Coventry and our expense management and cost control initiatives. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Acquisition Date, that negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings. | |||||||||||||||
• | In 2014 and 2012, we incurred losses on the early extinguishment of long-term debt of $117.8 million ($181.2 million pretax) and $55.2 million ($84.9 million pretax) related to the redemption and/or repurchase of certain of our outstanding senior notes, respectively. | |||||||||||||||
• | During 2014, we enhanced the Aetna Pension Plan to allow certain current and former employees to elect a 100% lump-sum distribution. In addition, we also announced a limited-time offer permitting certain former employees with deferred vested balances to elect a 100% lump-sum distribution. The distributions in 2014 were funded from existing Aetna Pension Plan assets and we recorded a related non-cash settlement charge of $72.5 million ($111.6 million pretax) during 2014 in general and administrative expenses. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | |||||||||||||||
• | In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 18 beginning on page 127 for additional information on the termination of the settlement agreement. | |||||||||||||||
• | In the fourth quarter of 2013, we increased our estimated liability for unpaid life insurance claims with respect to insureds who passed away on or before December 31, 2013, and recorded in current and future benefits a charge of $35.7 million ($55.0 million pretax) as a result of changes during the fourth quarter of 2013 in our life insurance claim payment practices (including related escheatment practices) based on evolving industry practices and regulatory expectations and interpretations. Refer to Note 18 beginning on page 127 for additional information on the changes in our life insurance claim payment practices. | |||||||||||||||
• | We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 20 beginning on page 135 for additional information on the reduction of the reserve for anticipated future losses on discontinued products. | |||||||||||||||
• | In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In 2013, we sold our claim against Lehman Re to an unrelated third party (including the reinsurance recoverable) and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we reversed the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue. | |||||||||||||||
• | In 2012, we recorded a severance charge of $24.1 million ($37.0 million pretax) related to actions taken in 2012 and 2013. | |||||||||||||||
Revenues from external customers by product in 2014, 2013 and 2012 were as follows: | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Health care premiums | $ | 49,562.20 | $ | 39,659.70 | $ | 28,872.00 | ||||||||||
Health care fees and other revenue | 5,114.40 | 4,425.50 | 3,736.90 | |||||||||||||
Group life | 1,240.90 | 1,158.90 | 1,070.10 | |||||||||||||
Group disability | 929 | 849.5 | 726 | |||||||||||||
Group long-term care | 44.3 | 44.9 | 45.9 | |||||||||||||
Large case pensions, excluding group annuity contract conversion premium | 86.1 | 149.6 | 176.6 | |||||||||||||
Group annuity contract conversion premium (1) | — | 99 | 941.4 | |||||||||||||
Total revenue from external customers (2) (3) | $ | 56,976.90 | $ | 46,387.10 | $ | 35,568.90 | ||||||||||
(1) | In 2013 and 2012, pursuant to contractual rights exercised by the contract holders, certain existing group annuity contracts converted from participating to non-participating contracts. Upon conversion, we recorded $99.0 million and $941.4 million of non-cash group annuity conversion premium for these contracts and a corresponding $99.0 million and $941.4 million non-cash benefit expense on group annuity conversion for these contracts during 2013 and 2012, respectively. | |||||||||||||||
(2) | All within the U.S., except approximately $1.2 billion, $886 million and $775 million in 2014, 2013 and 2012, respectively, which were derived from foreign customers. | |||||||||||||||
(3) | Revenue from the U.S. federal government was approximately $15.5 billion, $12.2 billion and $7.4 billion in 2014, 2013 and 2012, respectively, in the Health Care and Group Insurance segments. These amounts exceeded 10 percent of our total revenue from external customers in each of 2014, 2013 and 2012. | |||||||||||||||
The following is a reconciliation of revenue from external customers to total revenues included in our statements of income in 2014, 2013 and 2012: | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Revenue from external customers | $ | 56,976.90 | $ | 46,387.10 | $ | 35,568.90 | ||||||||||
Net investment income | 945.9 | 916.3 | 922.2 | |||||||||||||
Net realized capital gains (losses) | 80.4 | (8.8 | ) | 108.7 | ||||||||||||
Total revenue | $ | 58,003.20 | $ | 47,294.60 | $ | 36,599.80 | ||||||||||
Long-lived assets, which are principally within the U.S., were $666 million and $718 million at December 31, 2014 and 2013, respectively. |
Discontinued_Products
Discontinued Products | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Discontinued Products [Abstract] | ||||||||||||||
Discontinued Products | ||||||||||||||
20 | Discontinued Products | |||||||||||||
Prior to 1993, we sold single-premium annuities (“SPAs”) and guaranteed investment contracts (“GICs”), primarily to employer sponsored pension plans. In 1993, we discontinued selling these products to Large Case Pensions customers, and now we refer to these products as discontinued products. | ||||||||||||||
We discontinued selling these products because they were generating losses for us, and we projected that they would continue to generate losses over their life (which is currently greater than 30 years for SPAs); so we established a reserve for anticipated future losses at the time of discontinuance. At both December 31, 2014 and 2013, our remaining GIC liability was not material. This reserve represents the present value (at the risk-free rate of return at the time of discontinuance, consistent with the duration of the liabilities) of the difference between the expected cash flows from the assets supporting these products and the cash flows expected to be required to meet the obligations of the outstanding contracts. | ||||||||||||||
Key assumptions in setting the reserve for anticipated future losses include future investment results, payments to retirees, mortality and retirement rates and the cost of asset management and customer service. In 2014, we modified the mortality tables used in order to reflect the more up-to-date 2014 Retired Pensioner’s Mortality table. The mortality tables were previously modified in 2012, in order to reflect the more up-to-date 2000 Retired Pensioner’s Mortality table, and in 1995, in order to reflect the more up-to-date 1994 Uninsured Pensioner’s Mortality table. In 1997, we began the use of a bond default assumption to reflect historical default experience. Other than these changes, since 1993 there have been no significant changes to the assumptions underlying the reserve. | ||||||||||||||
We review the adequacy of this reserve quarterly based on actual experience. As long as our expected future losses remain consistent with prior projections, the results of the discontinued products are applied against the reserve and do not impact net income attributable to Aetna. If actual or expected future losses are greater than we currently estimate, we may increase the reserve, which could adversely impact net income attributable to Aetna. If actual or expected future losses are less than we currently estimate, we may decrease the reserve, which could favorably impact net income attributable to Aetna. As a result of this review, $55.9 million ($86.0 million pretax) of the reserve was released during 2013. This reserve release was primarily due to favorable investment performance as well as favorable retirement experience compared to assumptions we previously made in estimating the reserve. The reserve at each of December 31, 2014 and 2013 reflects management’s best estimate of anticipated future losses, and is included in future policy benefits on our balance sheet. | ||||||||||||||
The activity in the reserve for anticipated future losses on discontinued products in 2014, 2013 and 2012 was as follows (pretax): | ||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||
Reserve, beginning of period | $ | 979.5 | $ | 978.5 | $ | 896.3 | ||||||||
Operating income (loss) | 6 | 1 | (2.0 | ) | ||||||||||
Net realized capital gains | 29.2 | 86 | 84.2 | |||||||||||
Reserve reduction | — | (86.0 | ) | — | ||||||||||
Reserve, end of period | $ | 1,014.70 | $ | 979.5 | $ | 978.5 | ||||||||
During 2014, our discontinued products reflected operating income and net realized capital gains, primarily attributable to gains from the sale of debt securities. In 2013, our discontinued products reflected operating income and net realized capital gains, primarily attributable to gains from the sale of other investments and from the sale of debt and equity securities. In 2012, our discontinued products reflected operating losses and net realized capital gains, primarily attributable to gains from the sale of debt securities partially offset by losses from other investments. We evaluated these 2014 results against the expectations of future cash flows assumed in estimating the reserve for anticipated future losses and do not believe that an adjustment to the reserve was required at December 31, 2014. | ||||||||||||||
The anticipated run-off of the discontinued products reserve balance at December 31, 2014 (assuming that assets are held until maturity and that the reserve run-off is proportional to the liability run-off) is as follows: | ||||||||||||||
(Millions) | ||||||||||||||
2015 | $ | 53.9 | ||||||||||||
2016 | 52.9 | |||||||||||||
2017 | 51.6 | |||||||||||||
2018 | 50.2 | |||||||||||||
2019 | 48.7 | |||||||||||||
Thereafter | 757.4 | |||||||||||||
Assets and liabilities supporting discontinued products at 2014 and 2013 were as follows: (1) | ||||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||
Assets: | ||||||||||||||
Debt and equity securities available for sale | $ | 2,376.20 | $ | 2,372.60 | ||||||||||
Mortgage loans | 386.8 | 407 | ||||||||||||
Other investments | 662.2 | 663.9 | ||||||||||||
Total investments | 3,425.20 | 3,443.50 | ||||||||||||
Other assets | 112.9 | 85.2 | ||||||||||||
Collateral received under securities loan agreements | 200.7 | 204.4 | ||||||||||||
Current and deferred income taxes | — | 14.4 | ||||||||||||
Receivable from continuing products (2) | 566.5 | 533.1 | ||||||||||||
Total assets | $ | 4,305.30 | $ | 4,280.60 | ||||||||||
Liabilities: | ||||||||||||||
Future policy benefits | $ | 2,645.80 | $ | 2,804.80 | ||||||||||
Reserve for anticipated future losses on discontinued products | 1,014.70 | 979.5 | ||||||||||||
Collateral payable under securities loan agreements | 200.7 | 204.4 | ||||||||||||
Current and deferred income taxes | 27.9 | — | ||||||||||||
Other liabilities (3) | 416.2 | 291.9 | ||||||||||||
Total liabilities | $ | 4,305.30 | $ | 4,280.60 | ||||||||||
(1) | Assets supporting the discontinued products are distinguished from assets supporting continuing products. | |||||||||||||
(2) | At the time of discontinuance, a receivable from Large Case Pensions’ continuing products was established on the discontinued products balance sheet. This receivable represented the net present value of anticipated cash shortfalls in the discontinued products, which will be funded from continuing products. Interest on the receivable is accrued at the discount rate that was used to calculate the reserve. The offsetting payable, on which interest is similarly accrued, is reflected in continuing products. Interest on the payable generally offsets investment income on the assets available to fund the shortfall. These amounts are eliminated in consolidation. | |||||||||||||
(3) | Net unrealized capital gains on the available-for-sale debt securities are included in other liabilities and are not reflected in consolidated shareholders’ equity. | |||||||||||||
The discontinued products investment portfolio has changed since inception. Mortgage loans have decreased from $5.4 billion (37% of the investment portfolio) at December 31, 1993 to $387 million (11% of the investment portfolio) at December 31, 2014. This was a result of maturities, prepayments and the securitization and sale of commercial mortgages. Also, real estate decreased from $500 million (4% of the investment portfolio) at December 31, 1993 to $74 million (2% of the investment portfolio) at December 31, 2014, primarily as a result of sales. The resulting proceeds were primarily reinvested in debt and equity securities. Over time, the then-existing mortgage loan and real estate portfolios and the reinvested proceeds have resulted in greater investment returns than we originally assumed in 1993. | ||||||||||||||
At December 31, 2014, the expected run-off of the SPA and GIC liabilities, including future interest, was as follows: (1) | ||||||||||||||
(Millions) | ||||||||||||||
2015 | $ | 383.7 | ||||||||||||
2016 | 367.8 | |||||||||||||
2017 | 351.5 | |||||||||||||
2018 | 335.3 | |||||||||||||
2019 | 319.3 | |||||||||||||
Thereafter | 4,133.40 | |||||||||||||
-1 | At both December 31, 2014 and 2013, our remaining GIC liability was not material. | |||||||||||||
The liability expected at December 31, 1993 and actual liability balances at December 31, 2014, 2013 and 2012 for the GIC and SPA liabilities were as follows: | ||||||||||||||
Expected | Actual | |||||||||||||
(Millions) | GIC | SPA | GIC | SPA | ||||||||||
2012 | $ | 16.1 | $ | 2,615.40 | $ | 6.6 | $ | 2,857.60 | ||||||
2013 | 15.7 | 2,448.90 | — | 2,804.80 | ||||||||||
2014 | 12 | 2,281.00 | — | 2,645.80 | ||||||||||
The GIC balances were lower than expected in each period because several contract holders redeemed their contracts prior to contract maturity. The SPA balances in each period were higher than expected because of additional amounts received under existing contracts. | ||||||||||||||
The distributions on our discontinued products consisted of scheduled contract maturities, settlements and benefit payments of $377.9 million, $391.5 million and $399.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Participant-directed withdrawals from our discontinued products were not significant in the years ended ended December 31, 2014, 2013 or 2012. Cash required to fund these distributions was provided by earnings and scheduled payments on, and sales of, invested assets. |
Subsequent_Event
Subsequent Event | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Event | ||
21 | Subsequent Events | |
On February 27, 2015, our Board declared a cash dividend of $.25 per share that will be paid on April 24, 2015 to shareholders of record at the close of business on April 9, 2015. | ||
In January 2015, we entered into three-year reinsurance agreements with Vitality Re VI Limited, an unrelated insurer. The agreements allow us to reduce our required capital and provide $200 million of collateralized excess of loss reinsurance coverage on a portion of Aetna’s group Commercial Insured Health Care business. The Company’s similar reinsurance agreements with Vitality Re III Limited expired in January 2015. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information | Quarterly Data (unaudited) | |||||||||||||||
(Millions, except per share and common stock data) | First | Second | Third | Fourth | ||||||||||||
2014 | ||||||||||||||||
Total revenue | $ | 13,994.80 | $ | 14,509.40 | $ | 14,727.80 | $ | 14,771.20 | ||||||||
Income before income taxes | $ | 1,149.70 | $ | 924.6 | $ | 996.9 | $ | 428.7 | ||||||||
Income taxes | (480.3 | ) | (377.4 | ) | (398.1 | ) | (198.9 | ) | ||||||||
Net income including non-controlling interests | 669.4 | 547.2 | 598.8 | 229.8 | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 3.9 | (1.6 | ) | 4.3 | (2.2 | ) | ||||||||||
Net income attributable to Aetna | $ | 665.5 | $ | 548.8 | $ | 594.5 | $ | 232 | ||||||||
Net income attributable to Aetna per share - basic (1) | $ | 1.84 | $ | 1.54 | $ | 1.68 | $ | 0.66 | ||||||||
Net income attributable to Aetna per share - diluted (1) | 1.82 | 1.52 | 1.67 | 0.65 | ||||||||||||
Dividends declared per share | $ | 0.225 | $ | 0.225 | $ | 0.225 | $ | 0.25 | ||||||||
Common stock prices, high | 75.71 | 82.46 | 84.94 | 90.84 | ||||||||||||
Common stock prices, low | 65.15 | 67.77 | 75.22 | 73.43 | ||||||||||||
2013 | ||||||||||||||||
Total revenue | $ | 9,538.90 | $ | 11,537.40 | $ | 13,035.60 | $ | 13,182.70 | ||||||||
Income before income taxes | $ | 750.7 | $ | 847.7 | $ | 806.7 | $ | 535.4 | ||||||||
Income taxes | (259.8 | ) | (314.5 | ) | (287.7 | ) | (166.6 | ) | ||||||||
Net income including non-controlling interests | 490.9 | 533.2 | 519 | 368.8 | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0.8 | (2.8 | ) | 0.4 | (.1 | ) | ||||||||||
Net income attributable to Aetna | $ | 490.1 | $ | 536 | $ | 518.6 | $ | 368.9 | ||||||||
Net income attributable to Aetna per share - basic (1) | $ | 1.5 | $ | 1.5 | $ | 1.4 | $ | 1.01 | ||||||||
Net income attributable to Aetna per share - diluted (1) | 1.48 | 1.49 | 1.38 | 1 | ||||||||||||
Dividends declared per share | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.225 | ||||||||
Common stock prices, high | 51.46 | 63.59 | 68.71 | 68.93 | ||||||||||||
Common stock prices, low | 44.38 | 52.38 | 61.54 | 60.75 | ||||||||||||
(1) | Calculation of net income attributable to Aetna per share is based on weighted average shares outstanding during each quarter and, accordingly, the sum may not equal the total for the year. |
Schedule_I_Financial_Informati
Schedule I: Financial Information of Aetna Inc. (Parent Company Only) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Parent [Line Items] | |||||||||||||||||||||||||||
Schedule I: Financial Information of Aetna Inc. (Parent Company Only) | Schedule I - Financial Information of Aetna Inc. | ||||||||||||||||||||||||||
Aetna Inc. (Parent Company Only) | |||||||||||||||||||||||||||
Statements of Income | |||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Net investment income | $ | 0.6 | $ | 3.1 | $ | 1.5 | |||||||||||||||||||||
Net realized capital gains | 28.1 | 2.8 | — | ||||||||||||||||||||||||
Total revenue | 28.7 | 5.9 | 1.5 | ||||||||||||||||||||||||
Operating expenses | 279.1 | 142.7 | 136.1 | ||||||||||||||||||||||||
Interest expense | 298.2 | 312.3 | 268.8 | ||||||||||||||||||||||||
Loss on early extinguishment of long-term debt | 181.2 | — | 84.9 | ||||||||||||||||||||||||
Total expenses | 758.5 | 455 | 489.8 | ||||||||||||||||||||||||
Loss before income tax benefit and equity in earnings of affiliates, net | (729.8 | ) | (449.1 | ) | (488.3 | ) | |||||||||||||||||||||
Income tax benefit | 247.9 | 142.3 | 156.1 | ||||||||||||||||||||||||
Equity in earnings of affiliates, net (1) | 2,522.70 | 2,220.40 | 1,990.10 | ||||||||||||||||||||||||
Net income attributable to Aetna | $ | 2,040.80 | $ | 1,913.60 | $ | 1,657.90 | |||||||||||||||||||||
-1 | Includes after-tax amortization of other acquired intangible assets of $158.2 million, $139.5 million and $92.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
Refer to accompanying Notes to Financial Statements. | |||||||||||||||||||||||||||
Aetna Inc. (Parent Company Only) | |||||||||||||||||||||||||||
Statements of Comprehensive Income | |||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Net income attributable to Aetna | $ | 2,040.80 | $ | 1,913.60 | $ | 1,657.90 | |||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||
Previously impaired debt securities: (1) | |||||||||||||||||||||||||||
Net unrealized gains (losses) | |||||||||||||||||||||||||||
($1.4, $(72.6), and $3.7 pretax) | 0.9 | (47.2 | ) | 2.4 | |||||||||||||||||||||||
Less: reclassification of gains (losses) to earnings | |||||||||||||||||||||||||||
($.3, $(37.1), and $5.1 pretax) | 0.2 | (24.1 | ) | 3.3 | |||||||||||||||||||||||
Total previously impaired debt securities (1) | 0.7 | (23.1 | ) | (.9 | ) | ||||||||||||||||||||||
All other securities: | |||||||||||||||||||||||||||
Net unrealized gains (losses) | |||||||||||||||||||||||||||
($364.5, $(803.2), and $468.3 pretax) | 236.9 | (522.1 | ) | 304.4 | |||||||||||||||||||||||
Less: reclassification of (losses) gains to earnings | |||||||||||||||||||||||||||
($(6.6), $(36.5), and $113.8 pretax) | (4.3 | ) | (23.7 | ) | 74.4 | ||||||||||||||||||||||
Total all other securities | 241.2 | (498.4 | ) | 230 | |||||||||||||||||||||||
Foreign currency and derivatives: | |||||||||||||||||||||||||||
Net unrealized (losses) gains | |||||||||||||||||||||||||||
($(90.2), $40.6, and $1.4 pretax) | (58.6 | ) | 26.4 | 0.9 | |||||||||||||||||||||||
Less: reclassification of gains (losses) to earnings | |||||||||||||||||||||||||||
($4.2, $(5.4), and $(5.0) pretax) | 2.7 | (3.5 | ) | (3.3 | ) | ||||||||||||||||||||||
Total foreign currency and derivatives | (61.3 | ) | 29.9 | 4.2 | |||||||||||||||||||||||
Pension and other postretirement employee benefit (“OPEB”) plans: | |||||||||||||||||||||||||||
Unrealized net actuarial (losses) gains arising during the period | |||||||||||||||||||||||||||
($(739.4), $869.3, and $(189.8) pretax) | (480.6 | ) | 565.1 | (123.4 | ) | ||||||||||||||||||||||
Pension settlement charge (2) | |||||||||||||||||||||||||||
($(111.6) pretax) | 72.5 | — | — | ||||||||||||||||||||||||
Amortization of net actuarial losses | |||||||||||||||||||||||||||
($(47.6), $(77.7), and ($74.7) pretax) | 31 | 50.5 | 48.6 | ||||||||||||||||||||||||
Amortization of prior service credit | |||||||||||||||||||||||||||
($4.0, $4.1, and $4.1 pretax) | (2.7 | ) | (2.7 | ) | (2.7 | ) | |||||||||||||||||||||
Total pension and OPEB plans | (379.8 | ) | 612.9 | (77.5 | ) | ||||||||||||||||||||||
Other comprehensive (loss) income | (199.2 | ) | 121.3 | 155.8 | |||||||||||||||||||||||
Comprehensive income attributable to Aetna | $ | 1,841.60 | $ | 2,034.90 | $ | 1,813.70 | |||||||||||||||||||||
-1 | Represents unrealized (losses) gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired debt security. | ||||||||||||||||||||||||||
(2) | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan. We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 of Notes to Consolidated Financial Statements beginning on page 109 of the Annual Report for additional information on the pension settlement charge. | ||||||||||||||||||||||||||
Refer to accompanying Notes to Financial Statements. | |||||||||||||||||||||||||||
Aetna Inc. (Parent Company Only) | |||||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 17.8 | $ | 187.6 | |||||||||||||||||||||||
Investments | 66.3 | 26.9 | |||||||||||||||||||||||||
Other receivables | — | 62.8 | |||||||||||||||||||||||||
Income taxes receivable | 130.2 | 29.7 | |||||||||||||||||||||||||
Deferred income taxes | 70.7 | 45.4 | |||||||||||||||||||||||||
Other current assets | 112 | 13.9 | |||||||||||||||||||||||||
Total current assets | 397 | 366.3 | |||||||||||||||||||||||||
Investment in affiliates (1) | 22,549.90 | 20,627.10 | |||||||||||||||||||||||||
Long-term investments | — | 48.4 | |||||||||||||||||||||||||
Deferred income taxes | 258.3 | 72.1 | |||||||||||||||||||||||||
Other long-term assets | 48.2 | 468 | |||||||||||||||||||||||||
Total assets | $ | 23,253.40 | $ | 21,581.90 | |||||||||||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Short-term debt | $ | 500 | $ | — | |||||||||||||||||||||||
Accrued expenses and other current liabilities | 718.6 | 431.5 | |||||||||||||||||||||||||
Total current liabilities | 1,218.60 | 431.5 | |||||||||||||||||||||||||
Long-term debt | 6,745.10 | 6,488.10 | |||||||||||||||||||||||||
Employee benefit liabilities | 690.8 | 542.6 | |||||||||||||||||||||||||
Income taxes payable | 4.7 | 4 | |||||||||||||||||||||||||
Other long-term liabilities | 42.4 | 37.5 | |||||||||||||||||||||||||
Total liabilities | 8,701.60 | 7,503.70 | |||||||||||||||||||||||||
Shareholders' equity: | |||||||||||||||||||||||||||
Common stock ($.01 par value; 2.6 billion shares authorized and 349.8 million shares issued | |||||||||||||||||||||||||||
and outstanding in 2014; 2.6 billion shares authorized and 362.2 million shares issued and | |||||||||||||||||||||||||||
outstanding in 2013) and additional paid-in capital | 4,542.20 | 4,382.20 | |||||||||||||||||||||||||
Retained earnings | 11,051.70 | 10,555.40 | |||||||||||||||||||||||||
Accumulated other comprehensive loss | (1,111.3 | ) | (912.1 | ) | |||||||||||||||||||||||
Total Aetna shareholders' equity | 14,482.60 | 14,025.50 | |||||||||||||||||||||||||
Non-controlling interests | 69.2 | 52.7 | |||||||||||||||||||||||||
Total equity | 14,551.80 | 14,078.20 | |||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 23,253.40 | $ | 21,581.90 | |||||||||||||||||||||||
(1) | Includes goodwill and other acquired intangible assets of $12.6 billion and $12.3 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
Refer to accompanying Notes to Financial Statements. | |||||||||||||||||||||||||||
Aetna Inc. (Parent Company Only) | |||||||||||||||||||||||||||
Statements of Shareholders' Equity | |||||||||||||||||||||||||||
Attributable to Aetna | |||||||||||||||||||||||||||
(Millions) | Number of | Common | Retained | Accumulated | Total Aetna | Non-Controlling Interests | Total | ||||||||||||||||||||
Common | Stock and | Earnings | Other | Shareholders' | Equity | ||||||||||||||||||||||
Shares | Additional | Comprehensive | Equity | ||||||||||||||||||||||||
Outstanding | Paid-in | Loss | |||||||||||||||||||||||||
Capital | |||||||||||||||||||||||||||
Balance at December 31, 2011 | 349.7 | $ | 962.8 | $ | 10,346.60 | $ | (1,189.2 | ) | $ | 10,120.20 | $ | 24.4 | $ | 10,144.60 | |||||||||||||
Net income | — | — | 1,657.90 | — | 1,657.90 | 1.9 | 1,659.80 | ||||||||||||||||||||
Other decreases in non- | |||||||||||||||||||||||||||
controlling interests | — | — | — | — | — | (2.9 | ) | (2.9 | ) | ||||||||||||||||||
Other comprehensive income | — | — | — | 155.8 | 155.8 | — | 155.8 | ||||||||||||||||||||
Common shares issued for benefit plans, | |||||||||||||||||||||||||||
including tax benefits | 10.2 | 132.8 | — | — | 132.8 | — | 132.8 | ||||||||||||||||||||
Repurchases of common shares | (32.3 | ) | (.3 | ) | (1,417.2 | ) | — | (1,417.5 | ) | — | (1,417.5 | ) | |||||||||||||||
Dividends declared | — | — | (243.4 | ) | — | (243.4 | ) | — | (243.4 | ) | |||||||||||||||||
Balance at December 31, 2012 | 327.6 | 1,095.30 | 10,343.90 | (1,033.4 | ) | 10,405.80 | 23.4 | 10,429.20 | |||||||||||||||||||
Net income (loss) | — | — | 1,913.60 | — | 1,913.60 | (1.7 | ) | 1,911.90 | |||||||||||||||||||
Other (decreases) increases in non- | |||||||||||||||||||||||||||
controlling interests | — | (8.7 | ) | — | — | (8.7 | ) | 31 | 22.3 | ||||||||||||||||||
Other comprehensive income | — | — | — | 121.3 | 121.3 | — | 121.3 | ||||||||||||||||||||
Common shares issued to | |||||||||||||||||||||||||||
acquire Coventry | 52.2 | 3,064.60 | — | — | 3,064.60 | — | 3,064.60 | ||||||||||||||||||||
Common shares issued for benefit plans, | |||||||||||||||||||||||||||
including tax benefits | 5.4 | 231.2 | — | — | 231.2 | — | 231.2 | ||||||||||||||||||||
Repurchases of common shares | (23.0 | ) | (.2 | ) | (1,407.5 | ) | — | (1,407.7 | ) | — | (1,407.7 | ) | |||||||||||||||
Dividends declared | — | — | (294.6 | ) | — | (294.6 | ) | — | (294.6 | ) | |||||||||||||||||
Balance at December 31, 2013 | 362.2 | 4,382.20 | 10,555.40 | (912.1 | ) | 14,025.50 | 52.7 | 14,078.20 | |||||||||||||||||||
Net income | — | — | 2,040.80 | — | 2,040.80 | 4.4 | 2,045.20 | ||||||||||||||||||||
Other increases in | |||||||||||||||||||||||||||
non-controlling interests | — | — | — | — | — | 12.1 | 12.1 | ||||||||||||||||||||
Other comprehensive loss | — | — | — | (199.2 | ) | (199.2 | ) | — | (199.2 | ) | |||||||||||||||||
Common shares issued for benefit plans, | |||||||||||||||||||||||||||
including tax benefits | 3.5 | 160.1 | — | — | 160.1 | — | 160.1 | ||||||||||||||||||||
Repurchases of common shares | (15.9 | ) | (.1 | ) | (1,218.0 | ) | — | (1,218.1 | ) | — | (1,218.1 | ) | |||||||||||||||
Dividends declared | — | — | (326.5 | ) | — | (326.5 | ) | — | (326.5 | ) | |||||||||||||||||
Balance at December 31, 2014 | 349.8 | $ | 4,542.20 | $ | 11,051.70 | $ | (1,111.3 | ) | $ | 14,482.60 | $ | 69.2 | $ | 14,551.80 | |||||||||||||
Refer to accompanying Notes to Financial Statements. | |||||||||||||||||||||||||||
Aetna Inc. (Parent Company Only) | |||||||||||||||||||||||||||
Statements of Cash Flows | |||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||
Net income attributable to Aetna | $ | 2,040.80 | $ | 1,913.60 | $ | 1,657.90 | |||||||||||||||||||||
Adjustments to reconcile net income including non-controlling interests to | |||||||||||||||||||||||||||
net cash (used for) provided by operating activities: | |||||||||||||||||||||||||||
Loss on early extinguishment of long-term debt | 181.2 | — | 84.9 | ||||||||||||||||||||||||
Pension settlement charge | 111.6 | — | — | ||||||||||||||||||||||||
Equity earnings of affiliates (1) | (2,522.7 | ) | (2,220.4 | ) | (1,990.1 | ) | |||||||||||||||||||||
Stock-based compensation expense | 163.8 | 127.1 | 122.2 | ||||||||||||||||||||||||
Net realized capital gains | (28.1 | ) | (2.8 | ) | — | ||||||||||||||||||||||
Net change in other assets and other liabilities | 132.1 | (65.5 | ) | 48.3 | |||||||||||||||||||||||
Net cash provided by (used for) operating activities | 78.7 | (248.0 | ) | (76.8 | ) | ||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||
Proceeds from sales and maturities of investments | 18 | 701.5 | 112.8 | ||||||||||||||||||||||||
Cost of investments | (86.3 | ) | (532.0 | ) | (249.5 | ) | |||||||||||||||||||||
Dividends received from affiliates, net | 895.1 | 2,625.00 | 2,062.50 | ||||||||||||||||||||||||
Cash used for acquisitions (2) | — | (3,014.3 | ) | — | |||||||||||||||||||||||
Net cash provided by (used for) investing activities | 826.8 | (219.8 | ) | 1,925.80 | |||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||
Repayment of long-term debt | (1,422.7 | ) | — | (277.2 | ) | ||||||||||||||||||||||
Issuance of long-term debt | 1,482.40 | — | 2,664.80 | ||||||||||||||||||||||||
Net issuance (repayment) of short-term debt | 500 | — | (425.9 | ) | |||||||||||||||||||||||
Common shares issued under benefit plans | (60.3 | ) | 11.8 | (44.5 | ) | ||||||||||||||||||||||
Stock-based compensation tax benefits | 41.3 | 83.4 | 50.3 | ||||||||||||||||||||||||
Common shares repurchased | (1,218.1 | ) | (1,407.7 | ) | (1,417.5 | ) | |||||||||||||||||||||
Collateral on interest rate swaps | (77.3 | ) | 39.9 | 9.2 | |||||||||||||||||||||||
Dividends paid to shareholders | (320.6 | ) | (278.7 | ) | (239.1 | ) | |||||||||||||||||||||
Net cash (used for) provided by financing activities | (1,075.3 | ) | (1,551.3 | ) | 320.1 | ||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (169.8 | ) | (2,019.1 | ) | 2,169.10 | ||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 187.6 | 2,206.70 | 37.6 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 17.8 | $ | 187.6 | $ | 2,206.70 | |||||||||||||||||||||
Supplemental cash flow information: | |||||||||||||||||||||||||||
Interest paid | $ | 286.1 | $ | 301.4 | $ | 241.9 | |||||||||||||||||||||
Income taxes refunded | 198.2 | 294 | 282.3 | ||||||||||||||||||||||||
-1 | Includes after-tax amortization of other acquired intangible assets of $158.2 million, $139.5 million and $92.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
(2) | Represents parent company cash used primarily for the Coventry acquisition in 2013. | ||||||||||||||||||||||||||
Refer to accompanying Notes to Financial Statements. | |||||||||||||||||||||||||||
Aetna Inc. (Parent Company Only) | |||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||
1. Organization | |||||||||||||||||||||||||||
The financial statements reflect financial information for Aetna Inc. (a Pennsylvania corporation) only (the “Parent Company”). The financial information presented herein includes the balance sheet of the Parent Company as of December 31, 2014 and 2013 and the related statements of income, comprehensive income, shareholders' equity and cash flows for the years ended December 31, 2014, 2013 and 2012. The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Annual Report. | |||||||||||||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||||||||||||
Refer to Note 2 of Notes to Consolidated Financial Statements, beginning on page 80 of the Annual Report, for the summary of significant accounting policies. | |||||||||||||||||||||||||||
3. Dividends | |||||||||||||||||||||||||||
Gross cash dividends received from subsidiaries and included in net cash provided by investing activities in the Statements of Cash Flows were $1.5 billion, $2.5 billion and $1.7 billion in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
4. Acquisitions and Dispositions | |||||||||||||||||||||||||||
Refer to Note 3 of Notes to Consolidated Financial Statements, on page 90 of the Annual Report, for a description of acquisitions and dispositions. | |||||||||||||||||||||||||||
5. Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||
Refer to Note 9 of Notes to Consolidated Financial Statements, beginning on page 101 of the Annual Report, for a description of accumulated other comprehensive income (loss). | |||||||||||||||||||||||||||
6. Debt | |||||||||||||||||||||||||||
Long-term debt on the balance sheet of the parent company excludes long-term debt of a subsidiary. That debt was acquired in the Coventry acquisition. Refer to Note 14 of Notes to Consolidated Financial Statements, on page 123 of the Annual Report, for a description of Aetna's total debt. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation | |
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally-accepted accounting principles (“GAAP”) and include the accounts of Aetna and the subsidiaries that we control. All significant intercompany balances have been eliminated in consolidation. The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined there were no other items to disclose other than as disclosed in Note 21 beginning on page 138. | ||
Reclassification Policy | Reclassifications | |
Certain reclassifications were made to 2012 and 2013 financial information to conform with 2014 presentation. | ||
New Accounting Standards | New Accounting Standards | |
Fees Paid to the Federal Government by Health Insurers | ||
Effective January 1, 2014, we adopted new accounting guidance relating to the recognition and income statement reporting of the mandated fee to be paid to the federal government by health insurers. This guidance applies to the new health insurer fee (“HIF”) included in Health Care Reform. This new accounting guidance resulted in the establishment on January 1, 2014, of a liability for our portion of the entire estimated 2014 annual HIF. This amount is reflected in accrued expenses and other current liabilities with a corresponding amount reflected in other current assets. The estimated annual HIF is amortized into general and administrative expenses on a straight-line basis with a corresponding reduction in other current assets. The HIF for 2014 was paid in September 2014 and is not tax deductible. | ||
Amendments to the Scope, Measurement and Disclosure Requirements of Investment Companies | ||
Effective January 1, 2014, we adopted new accounting guidance relating to the approach for determining whether an entity is considered an investment company for accounting purposes. This guidance clarified the characteristics and set measurement and disclosure requirements for an investment company for accounting purposes. The adoption of this new guidance did not have an impact on our financial position or operating results. | ||
Use of Estimates Policy | Use of Estimates | |
The preparation of the accompanying consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in these consolidated financial statements and notes. We consider the following accounting estimates critical in the preparation of the accompanying consolidated financial statements: health care costs payable, other insurance liabilities, recoverability of goodwill and other acquired intangible assets, measurement of defined benefit pension and other postretirement employee benefit plans, other-than-temporary impairment of debt securities and revenue recognition, and allowance for estimated terminations and uncollectible accounts. We use information available to us at the time estimates are made; however, these estimates could change materially if different information or assumptions were used. Additionally, these estimates may not ultimately reflect the actual amounts of the final transactions that occur. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash on-hand and debt securities with an original maturity of three months or less when purchased. The carrying value of cash equivalents approximates fair value due to the short-term maturity of these investments. | ||
Investments | Investments | |
Debt and Equity Securities | ||
Debt and equity securities consist primarily of U.S. Treasury and agency securities, mortgage-backed securities, corporate and foreign bonds and other debt and equity securities. Debt securities are classified as either current or long-term investments based on their contractual maturities unless we intend to sell an investment within the next twelve months, in which case it is classified as current on our balance sheets. We have classified our debt and equity securities as available for sale and carry them at fair value. Refer to Note 10 beginning on page 102 for additional information on how we estimate the fair value of these investments. The cost for mortgage-backed and other asset-backed securities is adjusted for unamortized premiums and discounts, which are amortized using the interest method over the estimated remaining term of the securities, adjusted for anticipated prepayments. We regularly review our debt and equity securities to determine whether a decline in fair value below the carrying value is other-than-temporary. When a debt or equity security is in an unrealized capital loss position, we monitor the duration and severity of the loss to determine if sufficient market recovery can occur within a reasonable period of time. If a decline in the fair value of a debt security is considered other-than-temporary, the cost basis or carrying value of the debt security is written down. The write-down is then bifurcated into its credit and non-credit related components. The amount of the credit-related component is included in our operating results, and the amount of the non-credit related component is included in other comprehensive income, unless we intend to sell the debt security or it is more likely than not that we will be required to sell the debt security prior to its anticipated recovery of its amortized cost basis. We do not accrue interest on debt securities when management believes the collection of interest is unlikely. | ||
We lend certain debt and equity securities from our investment portfolio to other institutions for short periods of time using securities lending transactions and repurchase agreements. Under securities lending transactions, borrowers must post cash collateral in the amount of 102% to 105% of the fair value of the loaned securities, and the fair value of the loaned securities is monitored on a daily basis, with additional collateral obtained or refunded as the fair value of the loaned securities fluctuates. Under securities lending transactions, the collateral is retained and invested by a lending agent according to our investment guidelines to generate additional income for us. We primarily utilize repurchase agreements for short-term borrowings to meet liquidity needs. Under repurchase agreements, we receive cash in an amount that approximates the fair value of our collateralized debt securities. | ||
Mortgage Loans | ||
We carry the value of our mortgage loan investments on our balance sheets at the unpaid principal balance, net of impairment reserves. A mortgage loan may be impaired when it is a problem loan (i.e., more than 60 days delinquent, in bankruptcy or in process of foreclosure), a potential problem loan (i.e., high probability of default) or a restructured loan. For impaired loans, a specific impairment reserve is established for the difference between the recorded investment in the loan and the estimated fair value of the collateral. We apply our loan impairment policy individually to all loans in our portfolio. | ||
The quarterly impairment evaluation described above also considers characteristics and risk factors attributable to the aggregate portfolio. We would establish an additional allowance for loan losses if it were probable that there would be a credit loss on a group of similar mortgage loans. We consider the following characteristics and risk factors when evaluating if a credit loss is probable: loan to value ratios, property type (e.g., office, retail, apartment, industrial), geographic location, vacancy rates and property condition. As a result of that evaluation, we determined that a credit loss was not probable and did not record any additional allowance for loan losses with respect to performing mortgage loans in 2014, 2013 or 2012. | ||
We record full or partial charge-offs of loans at the time an event occurs affecting the legal status of the loan, typically at the time of foreclosure or upon a loan modification giving rise to forgiveness of debt. Interest income on an impaired loan is accrued to the extent we deem it collectible and the loan continues to perform under its original or restructured terms. Interest income on problem loans is recognized on a cash basis. Cash payments on loans in the process of foreclosure are treated as a return of principal. Mortgage loans with a maturity date or a committed prepayment date within twelve months are classified as current on our balance sheets. | ||
Other Investments | ||
Other investments consist primarily of the following: | ||
• | Alternative investments, which are comprised of private equity and hedge fund limited partnerships. We typically do not have a controlling ownership in our alternative investments, and therefore we apply the equity method of accounting for these investments. | |
• | Investment real estate, which is carried on our balance sheets at depreciated cost, including capital additions, net of write-downs for other-than-temporary declines in fair value. Depreciation is calculated using the straight-line method based on the estimated useful life of each asset. If any of our real estate investments is considered held-for-sale, we carry it at the lower of its carrying value or fair value less estimated selling costs. We generally estimate fair value using a discounted future cash flow analysis in conjunction with comparable sales information. At the time of the sale, we record the difference between the sales price and the carrying value as a realized capital gain or loss. | |
• | Privately-held equity securities, which are carried at cost on our balance sheets. We do not estimate the fair value of these securities if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Additionally, as a member of the Federal Home Loan Bank of Boston (“FHLBB”), we are required to purchase and hold shares of the FHLBB. These shares are restricted and also carried at cost. | |
• | Bank loans, which are carried on our balance sheets at amortized cost, net of any allowance for impairments. If any of our bank loans are considered held-for-sale, we carry those loans at the lower of cost or fair value. | |
• | Derivatives, which we make limited use of in order to manage interest rate, foreign exchange, price risk and credit exposure. The derivatives we use consist primarily of interest rate swaps, forward contracts, futures contracts, warrants, put options, and credit default swaps. Derivatives are reflected at fair value on our balance sheets. When we enter into a derivative contract, if certain criteria are met, we may designate it as one of the following: a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment; a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability; or a foreign currency fair value or cash flow hedge. | |
Net Investment Income And Realized Capital Gains And Losses | Net Investment Income and Realized Capital Gains and Losses | |
Net investment income on investments supporting Health Care and Group Insurance liabilities and Large Case Pensions products (other than experience-rated and discontinued products) are reflected in our operating results. | ||
Experience-rated products are products in the Large Case Pensions business where the contract holder, not us, assumes investment and other risks, subject to, among other things, minimum guarantees provided by us. The effect of investment performance on experience-rated products is allocated to contract holders’ accounts daily, based on the underlying investment experience and, therefore, does not impact our operating results (as long as minimum guarantees are not triggered). | ||
When we discontinued the sale of our fully-guaranteed Large Case Pensions products, we established a reserve for anticipated future losses from these discontinued products and segregated the related investments. Investment performance on this separate portfolio is ultimately credited/charged to the reserve and, generally, does not impact our operating results. | ||
Net investment income supporting Large Case Pensions’ experience-rated and discontinued products is included in net investment income in our statements of income and is credited to contract holders’ accounts or the reserve for anticipated future losses through a charge to current and future benefits. | ||
Realized capital gains and losses on investments supporting Health Care and Group Insurance liabilities and Large Case Pensions products (other than experience-rated and discontinued products) are reflected in our operating results. Realized capital gains and losses are determined on a specific identification basis. We reflect purchases and sales of debt and equity securities and alternative investments on the trade date. We reflect purchases and sales of mortgage loans and investment real estate on the closing date. | ||
Realized capital gains and losses on investments supporting Large Case Pensions’ experience-rated and discontinued products are not included in realized capital gains and losses in our statements of income and instead are credited directly to contract holders’ accounts, in the case of experience-rated products, or allocated to the reserve for anticipated future losses established at discontinuance, in the case of discontinued products. The contract holders’ accounts are reflected in policyholders’ funds, and the reserve for anticipated future losses is reflected in future policy benefits on our balance sheets. | ||
Unrealized capital gains and losses on investments supporting Health Care and Group Insurance liabilities and Large Case Pensions products (other than experience-rated and discontinued products) are reflected in shareholders’ equity, net of tax, as a component of accumulated other comprehensive loss. | ||
Unrealized capital gains and losses on investments supporting Large Case Pensions’ experience-rated products are credited directly to contract holders’ accounts, which are reflected in policyholders’ funds on our balance sheets. Net unrealized capital gains and losses on discontinued products are reflected in other long-term liabilities on our balance sheets. | ||
Refer to Note 20 beginning on page 135 for additional information on our discontinued products. | ||
Reinsurance | Reinsurance | |
We utilize reinsurance agreements primarily to reduce our required capital and to facilitate the acquisition or disposition of certain insurance contracts. Ceded reinsurance agreements permit us to recover a portion of our losses from reinsurers, although they do not discharge our primary liability as the direct insurer of the risks reinsured. Failure of reinsurers to indemnify us could result in losses; however, we do not expect charges for unrecoverable reinsurance to have a material effect on our operating results or financial condition. We evaluate the financial condition of our reinsurers and monitor concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of our reinsurers. At December 31, 2014, our reinsurance recoverables consisted primarily of amounts due from third parties that are rated consistent with companies that are considered to have the ability to meet their obligations. | ||
We enter into agreements with other insurance companies under which we assume reinsurance, primarily related to our group life and health products. We do not transfer any portion of the financial risk associated with our Commercial HMO products to third parties, except in areas where we participate in state-mandated health insurance pools. We did not have material premiums ceded to or assumed from unrelated insurance companies in the three years ended December 31, 2014. | ||
Refer to “Reinsurance” on page 88 for information about Health Care Reform’s temporary three-year reinsurance program. | ||
Goodwill | Goodwill | |
We have made acquisitions that included a significant amount of goodwill and other intangible assets. When we complete an acquisition, we apply the acquisition method of accounting, which among other things, requires the recognition of goodwill (which represents the excess cost of the acquisition over the fair value of net assets acquired and identified intangible assets). | ||
We evaluate goodwill for impairment (at the reporting unit level) annually, or more frequently if circumstances indicate a possible impairment, by comparing an estimate of the fair value of the applicable reporting unit to its carrying value, including goodwill. If the carrying value exceeds fair value, we compare the implied fair value of the applicable goodwill to its carrying amount to measure the amount of goodwill impairment, if any. Impairments, if any, would be classified as an operating expense. There were no goodwill impairment losses recognized, and the fair value of each reporting unit substantially exceeded its carrying value in each of the three years ended December 31, 2014, 2013 or 2012. | ||
Our annual impairment tests were based on an evaluation of future discounted cash flows. These evaluations utilized the best information available to us at the time, including supportable assumptions and projections we believe are reasonable. Collectively, these evaluations were our best estimates of projected future cash flows. Our discounted cash flow evaluations used discount rates that correspond to a weighted-average cost of capital consistent with a market-participant view. The discount rates are consistent with those used for investment decisions and take into account the operating plans and strategies of the Health Care and Group Insurance segments. Certain other key assumptions utilized, including changes in membership, revenue, health care costs, operating expenses, impacts of health care reform fees, assessments and taxes and effective tax rates, are based on estimates consistent with those utilized in our annual planning process that we believe are reasonable. If we do not achieve our earnings objectives, the assumptions and estimates underlying these goodwill impairment evaluations could be adversely affected, and we may impair a portion of our goodwill, which would adversely affect our operating results in the period of impairment. | ||
Property Plant And Equipment And Other Acquired Intangible Assets | Property and Equipment and Other Acquired Intangible Assets | |
We report property and equipment and other acquired intangible assets at historical cost, net of accumulated depreciation or amortization. At December 31, 2014 and 2013, the historical cost of property and equipment was approximately $807 million and $852 million, respectively, and the related accumulated depreciation was approximately $137 million and $130 million, respectively. Refer to Note 7 beginning on page 93 for cost and accumulated amortization associated with other acquired intangibles. We calculate depreciation and amortization primarily using the straight-line method over the estimated useful lives of the respective assets ranging from three to forty years. | ||
In connection with the acquisition of Genworth Financial, Inc.’s (“Genworth’s”) Medicare Supplement and related blocks of in-force business we recognized an asset for the valuation of business acquired (“VOBA”). VOBA represents the present value of the future profits embedded in the acquired businesses, and was determined by estimating the net present value of future cash flows from the contracts in force at the date of acquisition. VOBA is amortized in proportion to estimated premiums arising from the acquired contracts over their expected life. | ||
We regularly evaluate whether events or changes in circumstances indicate that the carrying value of property and equipment or other acquired intangible assets may not be recoverable. If we determine that the carrying value of an asset may not be recoverable, we group the asset with other assets and liabilities at the lowest level for which independent identifiable cash flows are available and estimate the future undiscounted cash flows expected to result from future use of the asset group and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying value of the asset group, we recognize an impairment loss for the amount by which the carrying value of the asset group exceeds its fair value. There were no material impairment losses recognized in the three years ended December 31, 2014, 2013 or 2012. | ||
Separate Accounts | Separate Accounts | |
Separate Accounts assets and liabilities in the Large Case Pensions business represent funds maintained to meet specific objectives of contract holders who bear the investment risk. These assets and liabilities are carried at fair value. Net investment income and net realized capital gains and losses accrue directly to such contract holders. The assets of each account are legally segregated and are not subject to claims arising from our other businesses. Deposits, withdrawals, net investment income and net realized and net unrealized capital gains and losses on Separate Accounts assets are not reflected in our statements of income or cash flows. Management fees charged to contract holders are included in fees and other revenue and recognized over the period earned. | ||
Health Care and Other Insurance Liabilities | Health Care and Other Insurance Liabilities | |
Health care costs payable | ||
Health care costs payable consist principally of unpaid fee-for-service medical, dental and pharmacy claims, capitation costs and other amounts due to health care providers pursuant to risk-sharing arrangements related to Health Care’s POS, PPO, HMO, Indemnity, Medicare and Medicaid products. Unpaid health care claims include our estimate of payments we will make on claims reported to us but not yet paid and for health care services rendered to members but not yet reported to us as of the balance sheet date (collectively, “IBNR”). Also included in these estimates is the cost of services that will continue to be rendered after the balance sheet date if we are obligated to pay for such services in accordance with contractual or regulatory requirements. Such estimates are developed using actuarial principles and assumptions which consider, among other things, historical and projected claim submission and processing patterns, assumed and historical medical cost trends, historical utilization of medical services, claim inventory levels, changes in membership and product mix, seasonality and other relevant factors. We reflect changes in these estimates in health care costs in our operating results in the period they are determined. Capitation costs represent contractual monthly fees paid to participating physicians and other medical providers for providing medical care, regardless of the medical services provided to the member. Approximately five percent of our health care costs related to capitated arrangements in each of the last three years. Amounts due under risk-sharing arrangements are based on the terms of the underlying contracts with the providers and consider claims experience under the contracts through the balance sheet date. | ||
Future policy benefits | ||
Future policy benefits consist primarily of reserves for limited payment pension and annuity contracts in the Large Case Pensions business and long-duration group life and long-term care insurance contracts in the Group Insurance business. Reserves for limited payment contracts are computed using actuarial principles that consider, among other things, assumptions reflecting anticipated mortality, retirement, expense and interest rate experience. Such assumptions generally vary by plan, year of issue and policy duration. Assumed interest rates on such contracts ranged from .8% to 11.3% and 1.3% to 11.3% in 2014 and 2013, respectively. We periodically review mortality assumptions against both industry standards and our experience. Reserves for long-duration group life and long-term care contracts represent our estimate of the present value of future benefits to be paid to or on behalf of policyholders less the present value of future net premiums. Assumed interest rates on such contracts ranged from 2.5% to 8.8% in both 2014 and 2013. Our estimate of the present value of future benefits under such contracts is based upon mortality, morbidity and interest rate assumptions. | ||
Unpaid claims | ||
Unpaid claims consist primarily of reserves associated with certain short-duration group disability and term life insurance contracts in the Group Insurance business, including an estimate for IBNR as of the balance sheet date. Reserves associated with certain short-duration group disability and term life insurance contracts are based upon our estimate of the present value of future benefits, which is based on assumed investment yields and assumptions regarding mortality, morbidity and recoveries from the U.S. Social Security Administration. We develop our estimate of IBNR using actuarial principles and assumptions which consider, among other things, contractual requirements, claim incidence rates, claim recovery rates, seasonality and other relevant factors. We discount certain claim liabilities related to group long-term disability and life insurance waiver of premium contracts. The discounted unpaid claim liabilities were $2.0 billion and $1.9 billion at December 31, 2014 and 2013, respectively. The undiscounted value of these unpaid claim liabilities was $2.7 billion and $2.6 billion at December 31, 2014 and 2013, respectively. The discount rates generally reflect our expected investment returns for the investments supporting all incurral years of these liabilities and ranged from 3.0% to 6.0% in 2014 and 3.3% to 6.0% in 2013. The discount rates for retrospectively-rated contracts are set at contractually specified levels. Our estimates of unpaid claims are subject to change due to changes in the underlying experience of the insurance contracts, changes in investment yields or other factors, and these changes are recorded in current and future benefits in our statements of income in the period they are determined. | ||
Policyholders’ funds | ||
Policyholders’ funds consist primarily of reserves for pension and annuity investment contracts in the Large Case Pensions business and customer funds associated with group life and health contracts in the Health Care and Group Insurance businesses. Reserves for such contracts are equal to cumulative deposits less withdrawals and charges plus credited interest thereon, net of experience-rated adjustments. In 2014, interest rates for pension and annuity investment contracts ranged from 3.6% to 16.7%, and interest rates for group life and health contracts ranged from 0% to 2.8%. In 2013, interest rates for pension and annuity investment contracts ranged from 3.8% to 12.2%, and interest rates for group life and health contracts ranged from 0% to 3.2%. Reserves for contracts subject to experience rating reflect our rights as well as the rights of policyholders and plan participants. | ||
We also hold funds for health savings accounts (“HSAs”) on behalf of members associated with high deductible health plans. These amounts are held to pay for qualified health care expenses incurred by these members. The HSA balances were approximately $1.3 billion and $920 million at December 31, 2014 and 2013, respectively, and are reflected in other current assets with a corresponding liability in policyholder funds. | ||
We review health care and other insurance liabilities periodically. We reflect any necessary adjustments during the current period in operating results. While the ultimate amount of claims and related expenses are dependent on future developments, it is management’s opinion that the liabilities that have been established are adequate to cover such costs. The health care and other insurance liabilities that are expected to be paid within twelve months are classified as current on our balance sheets. | ||
Premium Deficiency Reserves | ||
We evaluate our insurance contracts to determine if it is probable that a loss will be incurred. We recognize a premium deficiency loss when it is probable that expected future claims, including maintenance costs (for example, claim processing costs), will exceed existing reserves plus anticipated future premiums and reinsurance recoveries. Anticipated investment income is considered in the calculation of premium deficiency losses for short-duration contracts. For purposes of determining premium deficiency losses, contracts are grouped in a manner consistent with our method of acquiring, servicing and measuring the profitability of such contracts. We did not have any premium deficiency reserves at December 31, 2014 or 2013. | ||
Health Care Contract Acquisition Costs | Health Care Contract Acquisition Costs | |
Health care benefits products included in the Health Care segment are cancelable by either the customer or the member monthly upon written notice. Acquisition costs related to our prepaid health care and health indemnity contracts are generally expensed as incurred. At December 31, 2014 and 2013, the balance of our deferred acquisition costs was approximately $222 million and $137 million, respectively, comprised primarily of commissions paid on our Medicare Supplement products. Deferred acquisition costs are amortized over the estimated life of the contracts. | ||
Revenue Recognition | Revenue Recognition and Allowance for Estimated Terminations and Uncollectible Accounts | |
Health care premiums are recognized as income in the month in which the enrollee is entitled to receive health care services. Health care premiums are reported net of an allowance for estimated terminations and uncollectible amounts. Additionally, premium revenue subject to the minimum MLR rebate requirements of Health Care Reform is recorded net of the estimated minimum MLR rebates for the current calendar year. Other premium revenue for group life, long-term care and disability products is recognized as income, net of allowances for termination and uncollectible accounts, over the term of the coverage. Other premium revenue for Large Case Pensions’ limited payment pension and annuity contracts is recognized as revenue in the period received. Premiums related to unexpired contractual coverage periods are reported as unearned premiums in our balance sheets. | ||
The balance of the allowance for estimated terminations and uncollectible accounts on premiums receivable was $141 million and $90 million at December 31, 2014 and 2013, respectively, and is reflected as a reduction of premiums receivable in our balance sheets. The balance of the allowance for uncollectible accounts on other receivables was $17 million and $34 million at December 31, 2014 and 2013, respectively, and is reflected as a reduction of other receivables in our balance sheets. | ||
Some of our contracts allow for premiums to be adjusted to reflect actual experience or the relative health status of members. Such adjustments are reasonably estimable at the outset of the contract, and adjustments to those estimates are made based on actual experience of the customer emerging under the contract and the terms of the underlying contract. | ||
Fees and other revenue consists primarily of ASC fees which are received in exchange for performing certain claim processing and member services for health and disability members and are recognized as revenue over the period the service is provided. Fees and other revenue also includes fees related to our workers’ compensation administrative services products and services. Some of our contracts include guarantees with respect to certain functions, such as customer service response time, claim processing accuracy and claim processing turnaround time, as well as certain guarantees that a plan sponsor’s benefit claim experience will fall within a certain range. With any of these guarantees, we are financially at risk if the conditions of the arrangements are not met, although the maximum amount at risk is typically limited to a percentage of the fees otherwise payable to us by the customer involved. Each period we estimate our obligations under the terms of these guarantees and record it as an offset to our ASC fees. | ||
In addition, fees and other revenue also include charges assessed against contract holders’ funds for contract fees, participant fees and asset charges related to pension and annuity products in the Large Case Pensions business. Other amounts received on pension and annuity investment-type contracts are reflected as deposits and are not recorded as revenue. Some of our Large Case Pension contract holders have the contractual right to purchase annuities with life contingencies using the funds they maintain on deposit with us. Since these products are considered an insurance contract, when the contract holder makes this election, we treat the accumulated investment balance as a single premium and reflect it as both premiums and current and future benefits in our statements of income. | ||
Accounting for certain provisions of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, “Health Care Reform” or the “ACA”) | ||
We are participating in certain public health insurance exchanges established pursuant to Health Care Reform (“Public Exchanges”). Under regulations established by the U.S. Department of Health and Human Services (“HHS”), HHS pays us a portion of the premium (“Premium Subsidy”) and a portion of the health care costs (“Cost Sharing Subsidy”) for low-income individual Public Exchange members. In addition, HHS administers certain risk management programs as described below. | ||
We recognize monthly premiums received from Public Exchange members and the Premium Subsidy as premium revenue ratably over the contract period. The Cost Sharing Subsidy offsets health care costs when incurred. We record a liability if the Cost Sharing Subsidy is paid in advance or a receivable if incurred health care costs exceed the Cost Sharing Subsidy received to date. | ||
Accounting for Health Care Reform’s Reinsurance, Risk Adjustment and Risk Corridor (the “3Rs”) | ||
Reinsurance | ||
Health Care Reform established a temporary three-year reinsurance program, under which all issuers of major medical commercial insurance products and self-insured plan sponsors are required to contribute funding in amounts set by HHS. Funds collected will be utilized to reimburse issuers’ high claims costs incurred for qualified individual members. The expense related to this required funding is reflected in general and administrative expenses for all of our insurance products with the exception of products associated with qualified individual members; this expense for qualified individual members is reflected as a reduction of premium revenue. When annual claim costs incurred by our qualified individual members exceed a specified attachment point, we are entitled to certain reimbursements from this program. We record a receivable and offset health care costs to reflect our estimate of these recoveries. At December 31, 2014, we recorded a receivable under the temporary three-year reinsurance program of approximately $338 million. | ||
Risk Adjustment | ||
Health Care Reform established a permanent risk adjustment program to transfer funds from qualified individual and small group insurance plans with below average risk scores to plans with above average risk scores. Based on the risk of our qualified plan members relative to the average risk of members of other qualified plans in comparable markets, we estimate our ultimate 2014 risk adjustment receivable or payable and reflect the pro-rata year-to-date impact as an adjustment to our premium revenue. At December 31, 2014, we recorded a net payable of approximately $230 million under the risk adjustment program. | ||
Risk Corridor | ||
Health Care Reform established a temporary three-year risk sharing program for qualified individual and small group insurance plans. Under this program we make (or receive) a payment to (or from) HHS based on the ratio of allowable costs to target costs (as defined by Health Care Reform). We record a risk corridor receivable or payable as an adjustment to premium revenue on a pro-rata year-to-date basis based on our estimate of the ultimate 2014 risk sharing amount. At December 31, 2014, we did not record any Health Care Reform risk corridor receivables because payments from HHS under this program are uncertain, and we recorded an immaterial Health Care Reform risk corridor payable. | ||
We will perform a final reconciliation and settlement with HHS of the 2014 Cost Sharing Subsidy and 3Rs during 2015. | ||
Accounting for the Medicare Part D Prescription Drug Program Plans (“PDPs”) | ||
We were selected by the Centers for Medicare & Medicaid Services (“CMS”) to be a national provider of PDP in all 50 states to both individuals and employer groups in 2014, 2013 and 2012. Under these annual contracts, CMS pays us a portion of the premium, a portion of, or a capitated fee for, catastrophic drug costs and a portion of the health care costs for low-income Medicare beneficiaries and provides a risk-sharing arrangement to limit our exposure to unexpected expenses. | ||
We recognize premiums received from, or on behalf of, members or CMS and capitated fees as premium revenue ratably over the contract period. We expense the cost of covered prescription drugs as incurred. Costs associated with low-income Medicare beneficiaries (deductible, coinsurance, etc.) and the catastrophic drug costs paid in advance by CMS are recorded as a liability and offset health care costs when incurred. For individual PDP coverage, the risk-sharing arrangement provides a risk corridor whereby the amount we received in premiums from members and CMS based on our annual bid is compared to our actual drug costs incurred during the contract year. Based on the risk corridor provision and PDP activity-to-date, an estimated risk-sharing receivable or payable is recorded on a quarterly basis as an adjustment to premium revenue. We perform a reconciliation of the final risk-sharing, low-income subsidy and catastrophic amounts after the end of each contract year. | ||
Allocation Of Operating Expenses | Allocation of Operating Expenses | |
We allocate to the business segments centrally-incurred costs associated with specific internal goods or services provided to us, such as employee services, technology services and rent, based on a reasonable method for each specific cost (such as membership, usage, headcount, compensation or square footage occupied). Interest expense on third-party borrowings and the financing components of our pension and other post-retirement benefit plan expense are not allocated to the reporting segments, since they are not used as a basis for measuring the operating performance of the segments. Such amounts are reflected in Corporate Financing in our segment financial information. Refer to Note 19 beginning on page 132 for additional information. | ||
Income Taxes | Income Taxes | |
We are taxed at the statutory corporate income tax rates after adjusting income reported for financial statement purposes for certain items. We recognize deferred income tax assets and liabilities for the differences between the financial and income tax reporting basis of assets and liabilities based on enacted tax rates and laws. Valuation allowances are provided when it is considered more likely than not that deferred tax assets will not be realized. Deferred income tax expense or benefit primarily reflects the net change in deferred income tax assets and liabilities during the year. | ||
Our current income tax provision reflects the tax results of revenues and expenses currently taxable or deductible. Penalties and interest on our tax positions are classified as a component of our income tax provision. |
Acquisitions_Completed_Acquisi
Acquisitions Completed Acquisition (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Completed Acquisition [Abstract] | ||||||||||
Pro Forma Information | The following table presents supplemental pro forma information for the years ended December 31, 2013 and 2012, as if the Merger had occurred on January 1, 2012. The pro forma consolidated results are not necessarily indicative of what our consolidated results would have been had the Merger been completed on January 1, 2012. In addition, the pro forma consolidated results do not purport to project the future results of the combined company nor do they reflect the expected realization of any cost savings associated with the Merger. | |||||||||
Year Ended December 31, | ||||||||||
(Millions, except per common share data) | 2013 | 2012 | ||||||||
Total revenue | $ | 52,089.30 | $ | 50,282.60 | ||||||
Net income attributable to Aetna | 2,144.60 | 2,115.10 | ||||||||
Earnings per share: | ||||||||||
Basic | 5.75 | 5.39 | ||||||||
Diluted | 5.69 | 5.33 | ||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | The computations of basic and diluted EPS for 2014, 2013 and 2012 are as follows: | |||||||||||
(Millions, except per common share data) | 2014 | 2013 | 2012 | |||||||||
Net income attributable to Aetna | $ | 2,040.80 | $ | 1,913.60 | $ | 1,657.90 | ||||||
Weighted average shares used to compute basic EPS | 355.5 | 355.4 | 340.1 | |||||||||
Dilutive effect of outstanding stock-based compensation awards | 3.6 | 3.8 | 4.9 | |||||||||
Weighted average shares used to compute diluted EPS | 359.1 | 359.2 | 345 | |||||||||
Basic EPS | $ | 5.74 | $ | 5.38 | $ | 4.87 | ||||||
Diluted EPS | $ | 5.68 | $ | 5.33 | $ | 4.81 | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The stock-based compensation awards excluded from the calculation of diluted EPS for 2014, 2013 and 2012 are as follows: | |||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||
Stock appreciation rights (“SARs”) (1) | 0.3 | 1.7 | 8.3 | |||||||||
Other stock-based compensation awards (2) | 1.2 | 1.8 | 0.7 | |||||||||
(1) | SARs are excluded from the calculation of diluted EPS if the exercise price is greater than the average market price of Aetna common shares during the period (i.e., the awards are anti-dilutive). | |||||||||||
(2) | Performance stock units ("PSUs"), certain market stock units ("MSUs") with performance conditions, and performance stock appreciation rights ("PSARs") are excluded from the calculation of diluted EPS if all necessary performance conditions have not been satisfied at the end of the reporting period (refer to Note 12 beginning on page 117 for additional information about PSARs). |
Operating_Expenses_Tables
Operating Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Operating Expenses [Abstract] | ||||||||||||
Operating Expenses | For 2014, 2013 and 2012, selling expenses (which include broker commissions, the variable component of our internal sales force compensation and premium taxes) and general and administrative expenses were as follows: | |||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||
Selling expenses | $ | 1,653.00 | $ | 1,348.60 | $ | 1,105.50 | ||||||
General and administrative expenses: | ||||||||||||
Salaries and related benefits | 4,543.50 | 4,139.50 | 3,115.30 | |||||||||
Other general and administrative expenses (1) | 4,641.20 | 3,157.30 | 2,655.60 | |||||||||
Total general and administrative expenses (2) | 9,184.70 | 7,296.80 | 5,770.90 | |||||||||
Total operating expenses | $ | 10,837.70 | $ | 8,645.40 | $ | 6,876.40 | ||||||
(1) | In 2014, includes fees mandated by the ACA comprised primarily of the HIF of $605.3 million and our estimated contribution to the funding of the reinsurance program of $335.5 million. Refer to Note 2 beginning on page 80 for additional information on fees mandated by the ACA. | |||||||||||
(2) | In 2014, includes: a non-cash settlement charge incurred in connection with the Aetna Pension Plan of $111.6 million; transaction and integration-related costs of $200.7 million and a release of a litigation-related reserve of $103.0 million. In 2013, includes: transaction, integration-related and restructuring costs of $314.6 million and a reduction of expenses related to reversal of an allowance on a reinsurance recoverable of $42.2 million. In 2012, includes: a litigation-related charge of $120.0 million, transaction and integration-related costs of $16.2 million and a severance and facilities charge of $37.0 million. |
Health_Care_Costs_Payable_Tabl
Health Care Costs Payable (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Health Care Costs Payable [Abstract] | ||||||||||||
Components Of Change In Health Care Costs Payable | The following table shows the components of the change in health care costs payable during 2014, 2013 and 2012: | |||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||
Health care costs payable, beginning of the period | $ | 4,547.40 | $ | 2,992.50 | $ | 2,675.50 | ||||||
Less: Reinsurance recoverables | 8.5 | 3.8 | 3.3 | |||||||||
Health care costs payable, beginning of the period, net | 4,538.90 | 2,988.70 | 2,672.20 | |||||||||
Acquisition of businesses | 29.2 | 1,417.20 | — | |||||||||
Add: Components of incurred health care costs | ||||||||||||
Current year | 41,327.50 | 33,344.80 | 23,875.60 | |||||||||
Prior years | (580.8 | ) | (448.8 | ) | (146.7 | ) | ||||||
Total incurred health care costs | 40,746.70 | 32,896.00 | 23,728.90 | |||||||||
Less: Claims paid | ||||||||||||
Current year | 35,850.70 | 30,112.70 | 21,067.70 | |||||||||
Prior years | 3,848.80 | 2,608.00 | 2,344.70 | |||||||||
Total claims paid | 39,699.50 | 32,720.70 | 23,412.40 | |||||||||
Disposition of business | — | (42.3 | ) | — | ||||||||
Health care costs payable, end of period, net | 5,615.30 | 4,538.90 | 2,988.70 | |||||||||
Add: Reinsurance recoverables | 5.8 | 8.5 | 3.8 | |||||||||
Health care costs payable, end of the period | $ | 5,621.10 | $ | 4,547.40 | $ | 2,992.50 | ||||||
Goodwill_and_Other_Acquired_In1
Goodwill and Other Acquired Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Change in Goodwill | The change in goodwill in 2014 and 2013 is as follows: | ||||||||||||||||
(Millions) | 2014 | 2013 | |||||||||||||||
Balance, beginning of the period | $ | 10,227.50 | $ | 6,214.40 | |||||||||||||
Goodwill acquired: | |||||||||||||||||
bSwift (1) | 318 | — | |||||||||||||||
InterGlobal | 67.7 | — | |||||||||||||||
Coventry | — | 4,014.80 | |||||||||||||||
Other | — | (1.7 | ) | ||||||||||||||
Balance, end of the period (2) | $ | 10,613.20 | $ | 10,227.50 | |||||||||||||
(1) | Goodwill related to the acquisition of bSwift is considered preliminary, pending the final allocation of the applicable purchase price. | ||||||||||||||||
(2) | At both December 31, 2014 and 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | ||||||||||||||||
Other acquired intangible assets | Other acquired intangible assets at December 31, 2014 and 2013 were comprised of the following: | ||||||||||||||||
(Millions) | Cost | Accumulated | Net Balance | Amortization | |||||||||||||
Amortization | Period (Years) | ||||||||||||||||
2014 | |||||||||||||||||
Provider networks | $ | 1,254.10 | $ | 570.4 | $ | 683.7 | 25-Dec | (1) | |||||||||
Customer lists | 1,319.50 | (2) | 413.6 | 905.9 | 14-May | (1) | |||||||||||
Value of business acquired | 149.2 | 65.3 | 83.9 | 20 | (3) | ||||||||||||
Technology | 188.2 | (2) | 74 | 114.2 | 10-Apr | ||||||||||||
Other | 10.5 | 2.7 | 7.8 | 15-Feb | |||||||||||||
Definite-lived trademarks | 172.4 | (2) | 41.9 | 130.5 | 20-May | ||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 3,116.20 | $ | 1,167.90 | $ | 1,948.30 | |||||||||||
2013 | |||||||||||||||||
Provider networks | $ | 1,253.20 | $ | 508.8 | $ | 744.4 | 25-Dec | (1) | |||||||||
Customer lists | 1,347.00 | 361.8 | 985.2 | 14-May | (1) | ||||||||||||
Value of business acquired | 149.2 | 48.5 | 100.7 | 20 | (3) | ||||||||||||
Technology | 146.6 | 49.5 | 97.1 | 10-Apr | |||||||||||||
Other | 6.7 | 1.8 | 4.9 | 15-Feb | |||||||||||||
Definite-lived trademarks | 165 | 25.5 | 139.5 | 20-Sep | |||||||||||||
Indefinite-lived trademarks | 22.3 | — | 22.3 | ||||||||||||||
Total other acquired intangible assets | $ | 3,090.00 | $ | 995.9 | $ | 2,094.10 | |||||||||||
(1) | The amortization period for our provider networks and customer lists includes an assumption of renewal or extension of these arrangements. At both December 31, 2014 and 2013, the periods prior to the next renewal or extension for our provider networks primarily ranged from 1 to 3 years, and the period prior to the next renewal or extension for our customer lists was approximately 1 year. Any costs related to the renewal or extension of these contracts are expensed as incurred. | ||||||||||||||||
(2) | As a result of our acquisition of bSwift in 2014, we preliminarily assigned $41.6 million to technology, $25.8 million to customer lists, and $6.2 million to definite-lived trademarks. | ||||||||||||||||
(3) | VOBA is being amortized over the expected life of the acquired contracts in proportion to estimated premium. | ||||||||||||||||
Estimated annual pretax amortization for other acquired intangible assets over the next five years | We estimate annual pretax amortization for other acquired intangible assets over the next five years to be as follows: | ||||||||||||||||
(Millions) | |||||||||||||||||
2015 | $ | 254.5 | |||||||||||||||
2016 | 248 | ||||||||||||||||
2017 | 233.6 | ||||||||||||||||
2018 | 197.6 | ||||||||||||||||
2019 | 191.6 | ||||||||||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||
Total investments | Total investments at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(Millions) | Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||
Debt and equity securities available for sale | $ | 2,463.80 | $ | 18,977.90 | $ | 21,441.70 | $ | 1,977.40 | $ | 17,753.00 | $ | 19,730.40 | ||||||||||||
Mortgage loans | 124.2 | 1,438.00 | 1,562.20 | 84.9 | 1,464.70 | 1,549.60 | ||||||||||||||||||
Other investments | 7.2 | 1,778.00 | 1,785.20 | 1.5 | 1,717.30 | 1,718.80 | ||||||||||||||||||
Total investments | $ | 2,595.20 | $ | 22,193.90 | $ | 24,789.10 | $ | 2,063.80 | $ | 20,935.00 | $ | 22,998.80 | ||||||||||||
Debt and Equity Available-for-sale Securities | Debt and equity securities available for sale at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||
(Millions) | Amortized | Gross | Gross | Fair | ||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,301.20 | $ | 96.3 | $ | (.6 | ) | $ | 1,396.90 | |||||||||||||||
States, municipalities and political subdivisions | 4,540.00 | 277.2 | (7.8 | ) | 4,809.40 | |||||||||||||||||||
U.S. corporate securities | 8,033.20 | 606.8 | (33.6 | ) | 8,606.40 | |||||||||||||||||||
Foreign securities | 3,343.60 | 267 | (18.3 | ) | 3,592.30 | |||||||||||||||||||
Residential mortgage-backed securities | 902.7 | 28.9 | (3.9 | ) | 927.7 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,324.60 | 52.8 | (1.6 | ) | (1) | 1,375.80 | ||||||||||||||||||
Other asset-backed securities | 644.7 | 5.8 | (6.5 | ) | (1) | 644 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 12.5 | — | 69.3 | ||||||||||||||||||||
Total debt securities | 20,146.80 | 1,347.30 | (72.3 | ) | 21,421.80 | |||||||||||||||||||
Equity securities | 23.3 | 0.4 | (3.8 | ) | 19.9 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 20,170.10 | $ | 1,347.70 | $ | (76.1 | ) | $ | 21,441.70 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 1,396.80 | $ | 68.7 | $ | (3.0 | ) | $ | 1,462.50 | |||||||||||||||
States, municipalities and political subdivisions | 4,118.50 | 126.6 | (82.8 | ) | 4,162.30 | |||||||||||||||||||
U.S. corporate securities | 7,559.00 | 493.7 | (110.1 | ) | 7,942.60 | |||||||||||||||||||
Foreign securities | 3,209.60 | 198.9 | (53.0 | ) | 3,355.50 | |||||||||||||||||||
Residential mortgage-backed securities | 928.4 | 16.9 | (21.1 | ) | 924.2 | |||||||||||||||||||
Commercial mortgage-backed securities | 1,323.50 | 88.2 | (4.7 | ) | (1) | 1,407.00 | ||||||||||||||||||
Other asset-backed securities | 343.4 | 8.3 | (2.1 | ) | (1) | 349.6 | ||||||||||||||||||
Redeemable preferred securities | 56.8 | 8.6 | — | 65.4 | ||||||||||||||||||||
Total debt securities | 18,936.00 | 1,009.90 | (276.8 | ) | 19,669.10 | |||||||||||||||||||
Equity securities | 38.5 | 26.5 | (3.7 | ) | 61.3 | |||||||||||||||||||
Total debt and equity securities (2) | $ | 18,974.50 | $ | 1,036.40 | $ | (280.5 | ) | $ | 19,730.40 | |||||||||||||||
(1) | At December 31, 2014 and 2013, we held securities for which we previously recognized $18.6 million and $22.8 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at December 31, 2014 and 2013 of $3.6 million and $6.6 million, respectively. | |||||||||||||||||||||||
(2) | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 20 beginning on page 135 for additional information on our accounting for discontinued products). At December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million and, at December 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. | |||||||||||||||||||||||
Fair value of debt securities by contractual maturity | The fair value of debt securities at December 31, 2014 is shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid. | |||||||||||||||||||||||
(Millions) | Fair | |||||||||||||||||||||||
Value | ||||||||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | 1,163.40 | ||||||||||||||||||||||
One year through five years | 5,551.60 | |||||||||||||||||||||||
After five years through ten years | 5,754.80 | |||||||||||||||||||||||
Greater than ten years | 6,004.50 | |||||||||||||||||||||||
Residential mortgage-backed securities | 927.7 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 1,375.80 | |||||||||||||||||||||||
Other asset-backed securities | 644 | |||||||||||||||||||||||
Total | $ | 21,421.80 | ||||||||||||||||||||||
Debt and Equity Securities in an Unrealized Capital Loss Position | Summarized below are the debt and equity securities we held at December 31, 2014 and 2013 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position: | |||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total (1) | ||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 20.6 | $ | 0.1 | $ | 19.8 | $ | 0.5 | $ | 40.4 | $ | 0.6 | ||||||||||||
States, municipalities and political subdivisions | 457.4 | 2.2 | 347.4 | 5.6 | 804.8 | 7.8 | ||||||||||||||||||
U.S. corporate securities | 1,074.10 | 19.9 | 515.2 | 13.7 | 1,589.30 | 33.6 | ||||||||||||||||||
Foreign securities | 540 | 12.8 | 148 | 5.5 | 688 | 18.3 | ||||||||||||||||||
Residential mortgage-backed securities | 3.9 | 0.1 | 166.9 | 3.8 | 170.8 | 3.9 | ||||||||||||||||||
Commercial mortgage-backed securities | 181.5 | 0.7 | 69 | 0.9 | 250.5 | 1.6 | ||||||||||||||||||
Other asset-backed securities | 373.1 | 6.1 | 21.3 | 0.4 | 394.4 | 6.5 | ||||||||||||||||||
Redeemable preferred securities | 3 | — | — | — | 3 | — | ||||||||||||||||||
Total debt securities | 2,653.60 | 41.9 | 1,287.60 | 30.4 | 3,941.20 | 72.3 | ||||||||||||||||||
Equity securities | 8 | — | 1.4 | 3.8 | 9.4 | 3.8 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 2,661.60 | $ | 41.9 | $ | 1,289.00 | $ | 34.2 | $ | 3,950.60 | $ | 76.1 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 555.9 | $ | 2.7 | $ | 13.4 | $ | 0.3 | $ | 569.3 | $ | 3 | ||||||||||||
States, municipalities and political subdivisions | 1,779.90 | 73.1 | 132.4 | 9.7 | 1,912.30 | 82.8 | ||||||||||||||||||
U.S. corporate securities | 2,196.80 | 88 | 170 | 22.1 | 2,366.80 | 110.1 | ||||||||||||||||||
Foreign securities | 875.2 | 43.5 | 90.9 | 9.5 | 966.1 | 53 | ||||||||||||||||||
Residential mortgage-backed securities | 541.1 | 17.3 | 35 | 3.8 | 576.1 | 21.1 | ||||||||||||||||||
Commercial mortgage-backed securities | 162.4 | 4.2 | 25 | 0.5 | 187.4 | 4.7 | ||||||||||||||||||
Other asset-backed securities | 87.8 | 1.9 | 7.7 | 0.2 | 95.5 | 2.1 | ||||||||||||||||||
Redeemable preferred securities | 4.4 | — | — | — | 4.4 | — | ||||||||||||||||||
Total debt securities | 6,203.50 | 230.7 | 474.4 | 46.1 | 6,677.90 | 276.8 | ||||||||||||||||||
Equity securities | — | — | 16.2 | 3.7 | 16.2 | 3.7 | ||||||||||||||||||
Total debt and equity securities (1) | $ | 6,203.50 | $ | 230.7 | $ | 490.6 | $ | 49.8 | $ | 6,694.10 | $ | 280.5 | ||||||||||||
(1) | At December 31, 2014 and 2013, debt and equity securities in an unrealized capital loss position of $16.7 million and $60.3 million, respectively, and with related fair value of $402.7 million and $1.0 billion, respectively, related to experience-rated and discontinued products. | |||||||||||||||||||||||
Maturity dates for debt securities | The maturity dates for debt securities in an unrealized capital loss position at December 31, 2014 were as follows: | |||||||||||||||||||||||
Supporting discontinued | Supporting remaining | Total | ||||||||||||||||||||||
and experience-rated products | products | |||||||||||||||||||||||
(Millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Due to mature: | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | $ | 69.5 | $ | 0.3 | $ | 69.5 | $ | 0.3 | ||||||||||||
One year through five years | 50.4 | 0.4 | 1,055.50 | 9.5 | 1,105.90 | 9.9 | ||||||||||||||||||
After five years through ten years | 182.7 | 5.2 | 1,150.20 | 23.5 | 1,332.90 | 28.7 | ||||||||||||||||||
Greater than ten years | 152.8 | 7.2 | 464.4 | 14.2 | 617.2 | 21.4 | ||||||||||||||||||
Residential mortgage-backed securities | — | — | 170.8 | 3.9 | 170.8 | 3.9 | ||||||||||||||||||
Commercial mortgage-backed securities | 15.4 | — | 235.1 | 1.6 | 250.5 | 1.6 | ||||||||||||||||||
Other asset-backed securities | — | — | 394.4 | 6.5 | 394.4 | 6.5 | ||||||||||||||||||
Total | $ | 401.3 | $ | 12.8 | $ | 3,539.90 | $ | 59.5 | $ | 3,941.20 | $ | 72.3 | ||||||||||||
Net realized capital gains (losses) | Net realized capital gains (losses) for the three years ended December 31, 2014, 2013 and 2012, excluding amounts related to experience-rated contract holders and discontinued products, were as follows: | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
OTTI losses on debt securities | $ | (4.6 | ) | $ | (36.6 | ) | $ | (10.9 | ) | |||||||||||||||
Portion of OTTI losses on debt securities recognized | — | — | 0.1 | |||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||
Net OTTI losses on debt securities recognized in earnings | (4.6 | ) | (36.6 | ) | (10.8 | ) | ||||||||||||||||||
Net realized capital gains, excluding OTTI losses on debt securities | 85 | 27.8 | 119.5 | |||||||||||||||||||||
Net realized capital gains (losses) | $ | 80.4 | $ | (8.8 | ) | $ | 108.7 | |||||||||||||||||
Proceeds and related gross realized capital gains and losses from the sale of debt securities | Excluding amounts related to experience-rated and discontinued products, proceeds from the sale of debt securities and the related gross realized capital gains and losses for 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Proceeds on sales | $ | 4,727.70 | $ | 6,524.80 | $ | 5,819.20 | ||||||||||||||||||
Gross realized capital gains | 91.1 | 113.9 | 171.7 | |||||||||||||||||||||
Gross realized capital losses | 35.5 | 100 | 17.4 | |||||||||||||||||||||
Activity in mortgage loan portfolio | During 2014 and 2013 we had the following activity in our mortgage loan portfolio: | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||||||||||||
New mortgage loans | $ | 217 | $ | 195 | ||||||||||||||||||||
Mortgage loans fully-repaid | 133.7 | 222 | ||||||||||||||||||||||
Mortgage loans foreclosed | — | 8.5 | ||||||||||||||||||||||
Mortgage loan internal credit rating | Based upon our most recent assessments at December 31, 2014 and 2013, our mortgage loans were given the following credit quality indicators: | |||||||||||||||||||||||
(In Millions, except credit ratings indicator) | 2014 | 2013 | ||||||||||||||||||||||
1 | $ | 59.7 | $ | 69.2 | ||||||||||||||||||||
2 to 4 | 1,443.40 | 1,399.60 | ||||||||||||||||||||||
5 | 18.6 | 30.6 | ||||||||||||||||||||||
6 and 7 | 40.5 | 50.2 | ||||||||||||||||||||||
Total | $ | 1,562.20 | $ | 1,549.60 | ||||||||||||||||||||
Future Mortgage Loan Payments | At December 31, 2014 scheduled mortgage loan principal repayments were as follows: | |||||||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
2015 | $ | 127.6 | ||||||||||||||||||||||
2016 | 188.3 | |||||||||||||||||||||||
2017 | 220.5 | |||||||||||||||||||||||
2018 | 171.2 | |||||||||||||||||||||||
2019 | 100.3 | |||||||||||||||||||||||
Thereafter | 763 | |||||||||||||||||||||||
Sources of net investment income | Sources of net investment income for 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Debt securities | $ | 800.8 | $ | 768.5 | $ | 763.7 | ||||||||||||||||||
Mortgage loans | 108.2 | 99.4 | 122.4 | |||||||||||||||||||||
Other investments | 76.4 | 86.1 | 70.7 | |||||||||||||||||||||
Gross investment income | 985.4 | 954 | 956.8 | |||||||||||||||||||||
Investment expenses | (39.5 | ) | (37.7 | ) | (34.6 | ) | ||||||||||||||||||
Net investment income (1) | $ | 945.9 | $ | 916.3 | $ | 922.2 | ||||||||||||||||||
(1) | Net investment income includes $289.1 million, $293.5 million and $324.2 million for 2014, 2013 and 2012, respectively, related to investments supporting our experience-rated and discontinued products. |
Other_Comprehensive_Loss_Incom1
Other Comprehensive (Loss) Income (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Other Comprehensive (Loss) Income | Shareholders’ equity included the following activity in accumulated other comprehensive loss in 2014, 2013 and 2012: | ||||||||||||||||||||
Net Unrealized Gains (Losses) | Total | ||||||||||||||||||||
Accumulated | |||||||||||||||||||||
Other | |||||||||||||||||||||
Securities | Foreign | Pension and OPEB Plans | Comprehensive | ||||||||||||||||||
Currency | (Loss) Income | ||||||||||||||||||||
and | |||||||||||||||||||||
(Millions) | Previously | All Other | Derivatives | ||||||||||||||||||
Impaired (1) | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 58.2 | $ | 595.2 | $ | (33.7 | ) | $ | (1,808.9 | ) | $ | (1,189.2 | ) | ||||||||
Other comprehensive (loss) income | (.9 | ) | 230 | 4.2 | (77.5 | ) | 155.8 | ||||||||||||||
Balance at December 31, 2012 | 57.3 | 825.2 | (29.5 | ) | (1,886.4 | ) | (1,033.4 | ) | |||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||
before reclassifications | (47.2 | ) | (522.1 | ) | 26.4 | 565.1 | 22.2 | ||||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||
other comprehensive income | 24.1 | (2) | 23.7 | (2) | 3.5 | (3) | 47.8 | (4) | 99.1 | ||||||||||||
Other comprehensive (loss) income | (23.1 | ) | (498.4 | ) | 29.9 | 612.9 | 121.3 | ||||||||||||||
Balance at December 31, 2013 | 34.2 | 326.8 | 0.4 | (1,273.5 | ) | (912.1 | ) | ||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||
before reclassifications | 0.9 | 236.9 | (58.6 | ) | (480.6 | ) | (301.4 | ) | |||||||||||||
Amounts reclassified from accumulated | |||||||||||||||||||||
other comprehensive income | (.2 | ) | (2) | 4.3 | (2) | (2.7 | ) | (3) | 100.8 | (4) | 102.2 | ||||||||||
Other comprehensive income (loss) | 0.7 | 241.2 | (61.3 | ) | (379.8 | ) | (199.2 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 34.9 | $ | 568 | $ | (60.9 | ) | $ | (1,653.3 | ) | $ | (1,111.3 | ) | ||||||||
-1 | Represents unrealized gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. | ||||||||||||||||||||
-2 | Reclassifications out of accumulated other comprehensive income for previously impaired debt securities and all other securities are reflected in net realized capital gains (losses) within the Consolidated Statements of Income. | ||||||||||||||||||||
-3 | Reclassifications out of accumulated other comprehensive income for foreign currency gains (losses) and derivatives are reflected in net realized capital gains (losses) within the Consolidated Statements of Income, except for the effective portion of derivatives related to interest rate swaps which are reflected in interest expense and were not material during 2014 or 2013. Refer to Note 14 of Notes to Consolidated Financial Statements beginning on page 123 for additional information. | ||||||||||||||||||||
-4 | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statements of Income. During 2014, our reclassifications out of accumulated other comprehensive income for the Aetna Pension Plan reflect a pension settlement charge of $72.5 million ($111.6 million pretax). (Refer to Note 11 beginning on page 109 for additional information). | ||||||||||||||||||||
Schedule of defined benefit plans disclosures | The components of our pension and other postretirement employee benefit (“OPEB”) plans included the following activity in accumulated other comprehensive loss in 2014, 2013 and 2012: | ||||||||||||||||||||
Pension Plans | OPEB Plans | ||||||||||||||||||||
Unrecognized | Unrecognized | Unrecognized | Unrecognized | ||||||||||||||||||
Net Actuarial | Prior Service | Net Actuarial | Prior Service | ||||||||||||||||||
(Millions) | Losses | Credits | Losses | Credits | Total | ||||||||||||||||
Balance at December 31, 2011 | $ | (1,778.3 | ) | $ | 1.5 | $ | (56.3 | ) | $ | 24.2 | $ | (1,808.9 | ) | ||||||||
Unrealized net losses arising during | |||||||||||||||||||||
the period ($(189.8) pretax) | (130.4 | ) | — | 7 | — | (123.4 | ) | ||||||||||||||
Reclassification to earnings ($(70.6) pretax) | 45.7 | (.3 | ) | 2.9 | (2.4 | ) | 45.9 | ||||||||||||||
Balance at December 31, 2012 | (1,863.0 | ) | 1.2 | (46.4 | ) | 21.8 | (1,886.4 | ) | |||||||||||||
Unrealized net gains arising during | |||||||||||||||||||||
the period ($869.3 pretax) | 550.1 | — | 15 | — | 565.1 | ||||||||||||||||
Reclassification to earnings ($(73.6) pretax) | 49 | (.3 | ) | 1.5 | (2.4 | ) | 47.8 | ||||||||||||||
Balance at December 31, 2013 | (1,263.9 | ) | 0.9 | (29.9 | ) | 19.4 | (1,273.5 | ) | |||||||||||||
Unrealized net losses arising during | |||||||||||||||||||||
the period ($(739.4) pretax) | (460.0 | ) | — | (20.6 | ) | — | (480.6 | ) | |||||||||||||
Reclassification to earnings ($(155.2) pretax) | 102.9 | (.2 | ) | 0.6 | (2.5 | ) | 100.8 | ||||||||||||||
Balance at December 31, 2014 | $ | (1,621.0 | ) | $ | 0.7 | $ | (49.9 | ) | $ | 16.9 | $ | (1,653.3 | ) | ||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value of Financial Assets | Financial assets and liabilities measured at fair value on a recurring basis in our balance sheets at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,198.40 | $ | 198.5 | $ | — | $ | 1,396.90 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,808.20 | 1.2 | 4,809.40 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 8,548.20 | 58.2 | 8,606.40 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,560.70 | 31.6 | 3,592.30 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 927.7 | — | 927.7 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,368.30 | 7.5 | 1,375.80 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 602.5 | 41.5 | 644 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 65.2 | 4.1 | 69.3 | ||||||||||||||||||||||||||||
Total debt securities | 1,198.40 | 20,079.30 | 144.1 | 21,421.80 | ||||||||||||||||||||||||||||
Equity securities | 1.8 | — | 18.1 | 19.9 | ||||||||||||||||||||||||||||
Derivatives | — | 0.3 | — | 0.3 | ||||||||||||||||||||||||||||
Total | $ | 1,200.20 | $ | 20,079.60 | $ | 162.2 | $ | 21,442.00 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 53.4 | $ | — | $ | 53.4 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 1,237.50 | $ | 225 | $ | — | $ | 1,462.50 | ||||||||||||||||||||||||
States, municipalities and political subdivisions | — | 4,161.00 | 1.3 | 4,162.30 | ||||||||||||||||||||||||||||
U.S. corporate securities | — | 7,911.40 | 31.2 | 7,942.60 | ||||||||||||||||||||||||||||
Foreign securities | — | 3,311.60 | 43.9 | 3,355.50 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 924.2 | — | 924.2 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 1,399.50 | 7.5 | 1,407.00 | ||||||||||||||||||||||||||||
Other asset-backed securities | — | 317.3 | 32.3 | 349.6 | ||||||||||||||||||||||||||||
Redeemable preferred securities | — | 61.3 | 4.1 | 65.4 | ||||||||||||||||||||||||||||
Total debt securities | 1,237.50 | 18,311.30 | 120.3 | 19,669.10 | ||||||||||||||||||||||||||||
Equity securities | 17.1 | — | 44.2 | 61.3 | ||||||||||||||||||||||||||||
Derivatives | — | 49.1 | — | 49.1 | ||||||||||||||||||||||||||||
Total | $ | 1,254.60 | $ | 18,360.40 | $ | 164.5 | $ | 19,779.50 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 1.9 | $ | — | $ | 1.9 | ||||||||||||||||||||||||
Changes in the Balances of Level 3 Financial Assets | The changes in the balances of Level 3 financial assets during 2014 were as follows: | |||||||||||||||||||||||||||||||
(Millions) | Foreign | U.S. corporate securities | Equity | Other | Total | |||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||||
Beginning balance | $ | 43.9 | $ | 31.2 | $ | 44.2 | $ | 45.2 | $ | 164.5 | ||||||||||||||||||||||
Net realized and unrealized capital gains (losses): | ||||||||||||||||||||||||||||||||
Included in earnings | (.5 | ) | (4.0 | ) | (.1 | ) | (.1 | ) | (4.7 | ) | ||||||||||||||||||||||
Included in other comprehensive income | 0.5 | (2.0 | ) | (26.0 | ) | 0.1 | (27.4 | ) | ||||||||||||||||||||||||
Other (1) | 0.4 | (.4 | ) | 4.3 | — | 4.3 | ||||||||||||||||||||||||||
Purchases | 10.5 | 42.9 | 5 | 16.6 | 75 | |||||||||||||||||||||||||||
Sales | (12.4 | ) | (1.5 | ) | (9.2 | ) | — | (23.1 | ) | |||||||||||||||||||||||
Settlements | (1.1 | ) | (2.3 | ) | (.1 | ) | (7.5 | ) | (11.0 | ) | ||||||||||||||||||||||
Transfers out of Level 3, net | (9.7 | ) | (5.7 | ) | — | — | (15.4 | ) | ||||||||||||||||||||||||
Ending balance | $ | 31.6 | $ | 58.2 | $ | 18.1 | $ | 54.3 | $ | 162.2 | ||||||||||||||||||||||
(1) | Reflects realized and unrealized capital gains and losses on investments supporting our experience-rated and discontinued products, which do not impact our operating results. | |||||||||||||||||||||||||||||||
The changes in the balances of Level 3 financial assets during 2013 were as follows: | ||||||||||||||||||||||||||||||||
(Millions) | Foreign | Commercial | Equity | Other | Total | |||||||||||||||||||||||||||
Securities | Mortgage-backed | Securities | ||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 52.7 | $ | 20.1 | $ | 22.1 | $ | 100.9 | $ | 195.8 | ||||||||||||||||||||||
Net realized and unrealized capital gains (losses): | ||||||||||||||||||||||||||||||||
Included in earnings | 0.5 | 4 | 2.8 | (3.7 | ) | 3.6 | ||||||||||||||||||||||||||
Included in other comprehensive income | (3.4 | ) | (3.8 | ) | 21.2 | (4.0 | ) | 10 | ||||||||||||||||||||||||
Other (1) | (.2 | ) | — | 11.2 | 1.1 | 12.1 | ||||||||||||||||||||||||||
Purchases | 41.5 | 3.1 | 13 | 31.9 | 89.5 | |||||||||||||||||||||||||||
Sales | (27.2 | ) | (2.5 | ) | (26.1 | ) | (13.8 | ) | (69.6 | ) | ||||||||||||||||||||||
Settlements | (5.4 | ) | (10.4 | ) | — | (16.0 | ) | (31.8 | ) | |||||||||||||||||||||||
Transfers out of Level 3, net | (14.6 | ) | (3.0 | ) | — | (27.5 | ) | (45.1 | ) | |||||||||||||||||||||||
Ending balance | $ | 43.9 | $ | 7.5 | $ | 44.2 | $ | 68.9 | $ | 164.5 | ||||||||||||||||||||||
(1) | Reflects realized and unrealized capital gains and losses on investments supporting our experience-rated and discontinued products, which do not impact our operating results. | |||||||||||||||||||||||||||||||
Gross Transfers into (out of) Level 3 | The total gross transfers into (out of) Level 3 during the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Gross transfers into Level 3 | $ | 1.9 | $ | 3.8 | ||||||||||||||||||||||||||||
Gross transfers out of Level 3 | (17.3 | ) | (48.9 | ) | ||||||||||||||||||||||||||||
Net transfers out of Level 3 | $ | (15.4 | ) | $ | (45.1 | ) | ||||||||||||||||||||||||||
Carrying Value and Estimated Fair Value of Certain Financial Instruments | The carrying value and estimated fair value classified by level of fair value hierarchy for certain of our financial instruments at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,562.20 | $ | — | $ | — | $ | 1,621.40 | $ | 1,621.40 | ||||||||||||||||||||||
Bank loans | 231.2 | — | 217.6 | 9.4 | 227 | |||||||||||||||||||||||||||
Equity securities (1) | 34.9 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 16.6 | — | — | 16.6 | 16.6 | |||||||||||||||||||||||||||
Without a fixed maturity | 557.5 | — | — | 551.5 | 551.5 | |||||||||||||||||||||||||||
Long-term debt | 8,081.30 | — | 8,764.80 | — | 8,764.80 | |||||||||||||||||||||||||||
Carrying | Estimated Fair Value | |||||||||||||||||||||||||||||||
(Millions) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | $ | 1,549.60 | $ | — | $ | — | $ | 1,584.80 | $ | 1,584.80 | ||||||||||||||||||||||
Bank loans | 181.7 | — | 171.5 | 9.8 | 181.3 | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Investment contract liabilities: | ||||||||||||||||||||||||||||||||
With a fixed maturity | 8.9 | — | — | 8.9 | 8.9 | |||||||||||||||||||||||||||
Without a fixed maturity | 572.3 | — | — | 553.2 | 553.2 | |||||||||||||||||||||||||||
Long-term debt | 8,252.60 | — | 8,670.60 | — | 8,670.60 | |||||||||||||||||||||||||||
(1) | It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies. | |||||||||||||||||||||||||||||||
Separate Account Financial Assets | Separate Accounts financial assets at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Debt securities | $ | 876 | $ | 2,495.00 | $ | 2.9 | $ | 3,373.90 | $ | 726.4 | $ | 2,227.00 | $ | 0.6 | $ | 2,954.00 | ||||||||||||||||
Equity securities | 173.3 | 5.7 | — | 179 | 188.4 | 3.3 | — | 191.7 | ||||||||||||||||||||||||
Derivatives | — | 0.2 | — | 0.2 | — | 0.8 | — | 0.8 | ||||||||||||||||||||||||
Common/collective trusts | — | 574 | — | 574 | — | 710.4 | — | 710.4 | ||||||||||||||||||||||||
Total (1) | $ | 1,049.30 | $ | 3,074.90 | $ | 2.9 | $ | 4,127.10 | $ | 914.8 | $ | 2,941.50 | $ | 0.6 | $ | 3,856.90 | ||||||||||||||||
(1) | Excludes $204.4 million and $115.6 million of cash and cash equivalents and other receivables at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||
Offsetting Assets | Financial assets, including derivative assets, subject to offsetting and enforceable master netting arrangements as of December 31, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Received | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 0.3 | $ | 10.2 | $ | — | $ | 10.5 | ||||||||||||||||||||||||
Total | $ | 0.3 | $ | 10.2 | $ | — | $ | 10.5 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
Total | $ | 49.1 | $ | 13.3 | $ | (47.1 | ) | $ | 15.3 | |||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at December 31, 2014 or December 31, 2013. | ||||||||||||||||||||||||||||||||
Offsetting Liabilities | Financial liabilities, including derivative liabilities, subject to offsetting and enforceable master netting arrangements as of December 31, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities (1) | Gross Amounts Not Offset | |||||||||||||||||||||||||||||||
In the Balance Sheets | ||||||||||||||||||||||||||||||||
Financial Instruments | Cash Collateral Paid | |||||||||||||||||||||||||||||||
(Millions) | Net Amount | |||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 53.4 | $ | 0.9 | $ | (49.0 | ) | $ | 5.3 | |||||||||||||||||||||||
Securities lending | 826.9 | (826.9 | ) | — | — | |||||||||||||||||||||||||||
Repurchase agreements | 201.7 | — | — | 201.7 | ||||||||||||||||||||||||||||
Total | $ | 1,082.00 | $ | (826.0 | ) | $ | (49.0 | ) | $ | 207 | ||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Derivatives | $ | 1.9 | $ | — | $ | (.7 | ) | $ | 1.2 | |||||||||||||||||||||||
Securities lending | 792.6 | (792.6 | ) | — | — | |||||||||||||||||||||||||||
Total | $ | 794.5 | $ | (792.6 | ) | $ | (.7 | ) | $ | 1.2 | ||||||||||||||||||||||
(1) There were no amounts offset in our balance sheets at December 31, 2014 or December 31, 2013. |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule Of Changes In Benefit Obligations During Period | The following table shows the changes in the benefit obligations during 2014 and 2013 for our pension and OPEB plans. | |||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit obligation, beginning of year | $ | 5,965.30 | $ | 6,665.80 | $ | 260.9 | $ | 292.4 | ||||||||||||||||
Service cost | — | — | 0.1 | 0.1 | ||||||||||||||||||||
Interest cost | 288.3 | 271.5 | 11.9 | 11.1 | ||||||||||||||||||||
Actuarial loss (gain) | 847.6 | (653.7 | ) | 30 | (22.5 | ) | ||||||||||||||||||
Settlements paid | (295.2 | ) | — | — | — | |||||||||||||||||||
Benefits paid | (301.2 | ) | (318.3 | ) | (25.7 | ) | (20.2 | ) | ||||||||||||||||
Benefit obligation, end of year | $ | 6,504.80 | $ | 5,965.30 | $ | 277.2 | $ | 260.9 | ||||||||||||||||
Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits | The following table reconciles the beginning and ending balances of the fair value of plan assets during 2014 and 2013 for the pension and OPEB plans: | |||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 6,157.80 | $ | 5,805.00 | $ | 61.1 | $ | 62.1 | ||||||||||||||||
Actual return on plan assets | 562.2 | 589 | 1.5 | 2.9 | ||||||||||||||||||||
Employer contributions | 23.4 | 82.1 | 21.6 | 16.3 | ||||||||||||||||||||
Settlements paid | (295.2 | ) | — | — | — | |||||||||||||||||||
Benefits paid | (301.2 | ) | (318.3 | ) | (25.7 | ) | (20.2 | ) | ||||||||||||||||
Fair value of plan assets, end of year | $ | 6,147.00 | $ | 6,157.80 | $ | 58.5 | $ | 61.1 | ||||||||||||||||
Funded Status | The funded status of our pension and OPEB plans at the measurement date for 2014 and 2013 were as follows: | |||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Benefit obligation | $ | (6,504.8 | ) | $ | (5,965.3 | ) | $ | (277.2 | ) | $ | (260.9 | ) | ||||||||||||
Fair value of plan assets | 6,147.00 | 6,157.80 | 58.5 | 61.1 | ||||||||||||||||||||
Funded status | $ | (357.8 | ) | $ | 192.5 | $ | (218.7 | ) | $ | (199.8 | ) | |||||||||||||
Amounts in OCI not yet recognized for pension and OPEB plans | The amounts in accumulated other comprehensive loss that have not yet been recognized in net periodic benefit cost as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Unrecognized prior service credit | $ | (1.2 | ) | $ | (1.6 | ) | $ | (26.1 | ) | $ | (29.7 | ) | ||||||||||||
Unrecognized net actuarial losses | 2,493.00 | 1,943.50 | 76.8 | 46.1 | ||||||||||||||||||||
Amount recognized in accumulated other comprehensive loss | $ | (2,491.8 | ) | $ | (1,941.9 | ) | $ | (50.7 | ) | $ | (16.4 | ) | ||||||||||||
Net Amount Of Liabilities Recognized Table | The (liabilities) assets recognized on our balance sheets at December 31, 2014 and 2013 for our pension and OPEB plans were comprised of the following: | |||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Accrued benefit assets reflected in other long-term assets | $ | — | $ | 425 | $ | — | $ | — | ||||||||||||||||
Accrued benefit liabilities reflected in other current liabilities | (21.6 | ) | (22.3 | ) | (14.5 | ) | — | |||||||||||||||||
Accrued benefit liabilities reflected in other long-term liabilities | (336.2 | ) | (210.2 | ) | (204.2 | ) | (199.8 | ) | ||||||||||||||||
Net amount of (liabilities) assets recognized at December 31, | $ | (357.8 | ) | $ | 192.5 | $ | (218.7 | ) | $ | (199.8 | ) | |||||||||||||
Schedule of Net Benefit Costs | Components of the net periodic benefit (income) cost of our defined benefit pension plans and OPEB plans for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | 0.1 | $ | 0.1 | ||||||||||||
Amortization of prior service credit | (.4 | ) | (.4 | ) | (.4 | ) | (3.6 | ) | (3.7 | ) | (3.7 | ) | ||||||||||||
Interest cost | 288.3 | 271.5 | 298.4 | 11.9 | 11.1 | 14.4 | ||||||||||||||||||
Expected return on plan assets | (422.3 | ) | (396.4 | ) | (387.3 | ) | (3.1 | ) | (2.4 | ) | (2.7 | ) | ||||||||||||
Recognized net actuarial losses | 46.6 | 75.4 | 70.2 | 1 | 2.3 | 4.5 | ||||||||||||||||||
Settlement charge | 111.6 | — | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost (income) | $ | 23.8 | $ | (49.9 | ) | $ | (19.1 | ) | $ | 6.2 | $ | 7.4 | $ | 12.6 | ||||||||||
Weighted Average Assumptions Table | The weighted average assumptions used to determine net periodic benefit (income) cost in 2014, 2013 and 2012 for the pension and OPEB plans were as follows: | |||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 4.96 | % | 4.17 | % | 4.98 | % | 4.73 | % | 3.94 | % | 4.78 | % | ||||||||||||
Expected long-term return on plan assets | 7 | 7 | 7.5 | 5.3 | 4.1 | 4.25 | ||||||||||||||||||
Rate of increase in future compensation levels | N/A | N/A | N/A | — | — | — | ||||||||||||||||||
Expected Benefits Payments Table | Expected benefit payments, which reflect future employee service, as appropriate, of the pension and OPEB plans to be paid for each of the next five years and in the aggregate for the next five years thereafter at December 31, 2014 were as follows: | |||||||||||||||||||||||
(Millions) | Pension Plans | OPEB Plans | ||||||||||||||||||||||
2015 | $ | 348.7 | $ | 18.3 | ||||||||||||||||||||
2016 | 352.6 | 18.1 | ||||||||||||||||||||||
2017 | 357.9 | 17.9 | ||||||||||||||||||||||
2018 | 366.2 | 17.8 | ||||||||||||||||||||||
2019 | 367.7 | 17.5 | ||||||||||||||||||||||
2020-2024 | 1,890.50 | 83.4 | ||||||||||||||||||||||
Fair Value Of Plan Assets | Pension Assets with changes in fair value measured on a recurring basis at December 31, 2014 were as follows: | |||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 452.1 | $ | 98.3 | $ | — | $ | 550.4 | ||||||||||||||||
States, municipalities and political subdivisions | — | 132.2 | — | 132.2 | ||||||||||||||||||||
U.S. corporate securities | — | 1,244.80 | 1.5 | 1,246.30 | ||||||||||||||||||||
Foreign securities | — | 161.5 | — | 161.5 | ||||||||||||||||||||
Residential mortgage-backed securities | — | 221.1 | — | 221.1 | ||||||||||||||||||||
Commercial mortgage-backed securities | — | 50.2 | 0.5 | 50.7 | ||||||||||||||||||||
Other asset-backed securities | — | 32.3 | — | 32.3 | ||||||||||||||||||||
Redeemable preferred securities | — | 8.2 | — | 8.2 | ||||||||||||||||||||
Total debt securities | 452.1 | 1,948.60 | 2 | 2,402.70 | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. Domestic | 1,243.80 | 5.5 | — | 1,249.30 | ||||||||||||||||||||
International | 686.6 | — | — | 686.6 | ||||||||||||||||||||
Domestic real estate | 28.9 | — | — | 28.9 | ||||||||||||||||||||
Total equity securities | 1,959.30 | 5.5 | — | 1,964.80 | ||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||
Real estate | — | — | 469.7 | 469.7 | ||||||||||||||||||||
Common/collective trusts (1) | — | 610 | — | 610 | ||||||||||||||||||||
Other assets | — | 0.2 | 471.2 | 471.4 | ||||||||||||||||||||
Total other investments | — | 610.2 | 940.9 | 1,551.10 | ||||||||||||||||||||
Total pension investments (2) | $ | 2,411.40 | $ | 2,564.30 | $ | 942.9 | $ | 5,918.60 | ||||||||||||||||
(1) | The assets in the underlying funds of common/collective trusts are comprised of $337.4 million of equity securities and $272.6 million of debt securities. | |||||||||||||||||||||||
-2 | Excludes $228.4 million of cash and cash equivalents and other payables. | |||||||||||||||||||||||
Pension Assets with changes in fair value measured on a recurring basis at December 31, 2013 were as follows: | ||||||||||||||||||||||||
(Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. government securities | $ | 493.5 | $ | 113.2 | $ | — | $ | 606.7 | ||||||||||||||||
States, municipalities and political subdivisions | — | 126.8 | — | 126.8 | ||||||||||||||||||||
U.S. corporate securities | — | 1,135.70 | — | 1,135.70 | ||||||||||||||||||||
Foreign securities | — | 148 | 0.2 | 148.2 | ||||||||||||||||||||
Residential mortgage-backed securities | — | 174.6 | — | 174.6 | ||||||||||||||||||||
Commercial mortgage-backed securities | — | 44 | — | 44 | ||||||||||||||||||||
Other asset-backed securities | — | 26.5 | — | 26.5 | ||||||||||||||||||||
Redeemable preferred securities | — | 10.2 | — | 10.2 | ||||||||||||||||||||
Total debt securities | 493.5 | 1,779.00 | 0.2 | 2,272.70 | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. Domestic | 1,342.50 | 3.1 | — | 1,345.60 | ||||||||||||||||||||
International | 825.2 | — | 0.1 | 825.3 | ||||||||||||||||||||
Domestic real estate | 25.7 | — | — | 25.7 | ||||||||||||||||||||
Total equity securities | 2,193.40 | 3.1 | 0.1 | 2,196.60 | ||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||
Real estate | — | — | 497.5 | 497.5 | ||||||||||||||||||||
Common/collective trusts (1) | — | 617.3 | — | 617.3 | ||||||||||||||||||||
Other assets | 0.3 | 0.7 | 395.9 | 396.9 | ||||||||||||||||||||
Total other investments | 0.3 | 618 | 893.4 | 1,511.70 | ||||||||||||||||||||
Total pension investments (2) | $ | 2,687.20 | $ | 2,400.10 | $ | 893.7 | $ | 5,981.00 | ||||||||||||||||
(1) | The assets in the underlying funds of common/collective trusts are comprised of $356.1 million of equity securities and $261.2 million of debt securities. | |||||||||||||||||||||||
-2 | Excludes $176.8 million of cash and cash equivalents and other payables. | |||||||||||||||||||||||
Schedule of changes in the fair value of level three plan assets by asset category | The changes in the balances of Level 3 Pension Assets during 2014 and 2013 were as follows: | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Real Estate | Other | Total | ||||||||||||||||||||||
Beginning balance | $ | 497.5 | $ | 396.2 | $ | 893.7 | ||||||||||||||||||
Actual return on plan assets | 43.9 | 35.7 | 79.6 | |||||||||||||||||||||
Purchases, sales and settlements | (71.7 | ) | 41.3 | (30.4 | ) | |||||||||||||||||||
Ending balance | $ | 469.7 | $ | 473.2 | $ | 942.9 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Real Estate | Other | Total | ||||||||||||||||||||||
Beginning balance | $ | 469 | $ | 291.3 | $ | 760.3 | ||||||||||||||||||
Actual return on plan assets | 40.5 | 26.6 | 67.1 | |||||||||||||||||||||
Purchases, sales and settlements | (12.0 | ) | 80 | 68 | ||||||||||||||||||||
Transfers out of Level 3 | — | (1.7 | ) | (1.7 | ) | |||||||||||||||||||
Ending balance | $ | 497.5 | $ | 396.2 | $ | 893.7 | ||||||||||||||||||
Asset Allocation And Target Asset Allocation Table | The actual and target asset allocations of the OPEB plans used at December 31, 2014 and 2013 presented as a percentage of total plan assets, were as follows: | |||||||||||||||||||||||
Target | Target | |||||||||||||||||||||||
(Millions) | 2014 | Allocation | 2013 | Allocation | ||||||||||||||||||||
Equity securities | 11 | % | 5-15% | 10 | % | 5-15% | ||||||||||||||||||
Debt securities | 84 | % | 80-90% | 84 | % | 80-90% | ||||||||||||||||||
Real estate/other | 5 | % | 0-10% | 6 | % | 0-10% | ||||||||||||||||||
Stockbased_Employee_Incentive_1
Stock-based Employee Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stock-based Employee Incentive Plans [Abstract] | |||||||||||||||||||||
Assumptions Used in Stock Appreciation Rights Granted [Table Text Block] | The SARs granted to certain employees during 2014 and described above had an estimated fair market value of $22.68 per unit. The fair value per unit was calculated on the grant date using a modified Black-Scholes option pricing model using the following assumptions: | ||||||||||||||||||||
Expected term (in years) | 5.72 | ||||||||||||||||||||
Volatility | 35.8 | % | |||||||||||||||||||
Risk-free interest rate | 1.74 | % | |||||||||||||||||||
Dividend yield | 1.36 | % | |||||||||||||||||||
Initial price | $ | 72.26 | |||||||||||||||||||
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity | The stock option, SAR and PSAR transactions during 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
(Millions, except exercise price and remaining life) | Number of Stock | Weighted Average | Weighted | Aggregate | |||||||||||||||||
Options, SARs and PSARs | Exercise Price | Average Remaining | Intrinsic | ||||||||||||||||||
Contractual Life | Value | ||||||||||||||||||||
2012 | |||||||||||||||||||||
Outstanding, beginning of year | 26.3 | $ | 35.18 | 4 | $ | 246.3 | |||||||||||||||
Granted | 0.1 | 44.79 | — | — | |||||||||||||||||
Exercised | (6.7 | ) | 22.73 | — | 148 | ||||||||||||||||
Expired or forfeited | (.3 | ) | 43.02 | — | — | ||||||||||||||||
Outstanding, end of year | 19.4 | $ | 39.34 | 3.5 | $ | 163.8 | |||||||||||||||
Exercisable, end of year | 19.4 | $ | 39.34 | 3.5 | $ | 163.8 | |||||||||||||||
2013 | |||||||||||||||||||||
Outstanding, beginning of year | 19.4 | $ | 39.34 | 3.5 | $ | 163.8 | |||||||||||||||
Granted | 0.7 | (1) | 63.32 | — | — | ||||||||||||||||
Exercised | (9.3 | ) | 36.58 | — | 203.4 | ||||||||||||||||
Expired or forfeited | (.3 | ) | 47.11 | — | — | ||||||||||||||||
Outstanding, end of year | 10.5 | $ | 43.27 | 3.5 | $ | 264.6 | |||||||||||||||
Exercisable, end of year | 9.8 | $ | 41.77 | 3 | $ | 261.6 | |||||||||||||||
2014 | |||||||||||||||||||||
Outstanding, beginning of year | 10.5 | $ | 43.27 | 3.5 | $ | 264.6 | |||||||||||||||
Granted | 1.4 | 72.36 | — | — | |||||||||||||||||
Exercised | (3.7 | ) | 40.5 | — | 132.1 | ||||||||||||||||
Expired or forfeited | (.1 | ) | 46.94 | — | — | ||||||||||||||||
Outstanding, end of year | 8.1 | $ | 49.37 | 4.2 | $ | 318.3 | |||||||||||||||
Exercisable, end of year | 6.1 | $ | 42.86 | 2.6 | $ | 280.2 | |||||||||||||||
(1) | PSARs are included in this table at the maximum amount that could potentially vest. | ||||||||||||||||||||
Schedule Of Share Based Compensation Shares Authorized Under Stock Option Plans And Stock Appreciation Rights By Exercise Price Range | The following is a summary of information regarding stock options, SARs and PSARs outstanding at December 31, 2014: | ||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number Exercisable | Weighted | Aggregate | ||||||||||||||
Exercise Prices | Outstanding | Average | Average | Intrinsic | Average | Intrinsic | |||||||||||||||
Remaining | Exercise | Value | Exercise | Value | |||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Life (Years) | |||||||||||||||||||||
20.00-30.00 | 0.1 | 3.2 | $ | 25.62 | $ | 2.9 | 0.1 | $ | 25.62 | $ | 2.9 | ||||||||||
30.00-40.00 | 1.9 | 3.4 | 32.74 | 104.5 | 1.9 | 32.74 | 104.5 | ||||||||||||||
40.00-50.00 | 2 | 2 | 43.92 | 91.2 | 2 | 43.92 | 91.2 | ||||||||||||||
50.00-60.00 | 2.1 | 2.4 | 50.54 | 80.9 | 2.1 | 50.54 | 80.9 | ||||||||||||||
60.00-70.00 | 0.7 | 8.6 | 64.25 | 17.2 | — | — | — | ||||||||||||||
70.00-80.00 | 1.3 | 9 | 72.32 | 21.6 | — | (1) | 72.26 | 0.7 | |||||||||||||
$20.00-$90.00 (2) | 8.1 | 4.2 | $ | 49.37 | $ | 318.3 | 6.1 | $ | 42.86 | $ | 280.2 | ||||||||||
-1 | The number of exercisable stock options, SARs and PSARs with exercise prices between $70 and $80 rounded to zero. | ||||||||||||||||||||
-2 | The number of outstanding stock options, SARs and PSARs with exercise prices between $80 and $90 rounded to zero. | ||||||||||||||||||||
Assumptions Used In Market Stock Units Granted | MSUs granted in 2014 and 2013 had a weighted average per MSU grant date fair value of $74.99 and $49.31, respectively. MSUs granted in 2012 were valued using two separate performance periods, which resulted in a weighted average per MSU grant date fair value of $46.36 and $46.84, respectively, for the two-year and three-year vesting period tranches. The weighted-average per MSU grant date fair values listed above were calculated using the assumptions noted in the following table: | ||||||||||||||||||||
2012 | |||||||||||||||||||||
2014 | 2013 | Two-year | Three-year | ||||||||||||||||||
Dividend yield | 1.3 | % | 1.7 | % | 1.6 | % | 1.6 | % | |||||||||||||
Volatility | 26.4 | % | 28.1 | % | 31.2 | % | 37.5 | % | |||||||||||||
Risk-free interest rate | 0.7 | % | 0.4 | % | 0.2 | % | 0.3 | % | |||||||||||||
Initial price | $ | 72.26 | $ | 48.48 | $ | 44.79 | $ | 44.79 | |||||||||||||
Summary Of Status Of Performance Stock Units And Restricted Stock Units | RSU, MSU and PSU transactions in 2014, 2013 and 2012 were as follows (number of units in millions): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
RSUs, | Weighted | RSUs, | Weighted | RSUs, | Weighted | ||||||||||||||||
MSUs | Average | MSUs | Average | MSUs | Average | ||||||||||||||||
and PSUs | Grant Date | and PSUs | Grant Date | and PSUs | Grant Date | ||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
RSUs, MSUs and PSUs at beginning of year | 5.3 | $ | 48.82 | 3.4 | $ | 43.25 | 6.7 | $ | 33.62 | ||||||||||||
Granted | 2.7 | 71.88 | 3.6 | 51.22 | 4.6 | 43.71 | |||||||||||||||
Vested | (2.5 | ) | 50.11 | (1.3 | ) | 41.56 | (7.7 | ) | 34.69 | ||||||||||||
Forfeited | (.4 | ) | 56.89 | (.4 | ) | 46.65 | (.2 | ) | 37.37 | ||||||||||||
RSUs, MSUs and PSUs at end of year | 5.1 | $ | 58.57 | 5.3 | $ | 48.82 | 3.4 | $ | 43.25 | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology | In 2013, we granted PSARs and estimated the fair value of those PSARs using a Monte Carlo simulation. The PSARs granted in 2013 had a grant date per PSAR fair value of $18.64. That grant date fair value was calculated using the assumptions noted in the following table: | ||||||||||||||||||||
Dividend yield | 1.25 | % | |||||||||||||||||||
Expected settlement period (in years) | 6.12 | ||||||||||||||||||||
Volatility | 40.4 | % | |||||||||||||||||||
Risk-free interest rate | 0.6 | % | |||||||||||||||||||
Initial price | $ | 64.25 | |||||||||||||||||||
Activity Under Stock Option, Performance Stock Appreciation Rights, Stock Appreciation Rights Plans | During 2014, 2013 and 2012, the following activity occurred under the Plans: | ||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Cash received from stock option exercises | $ | 32.4 | $ | 89.1 | $ | 89.8 | |||||||||||||||
Intrinsic value of options/SARs exercised and stock units vested | 322.8 | 292 | 492.5 | ||||||||||||||||||
Tax benefits realized for the tax deductions from stock options and SARs exercised and stock units vested | 87.1 | 98.9 | 172.4 | ||||||||||||||||||
Fair value of stock options, SARs and stock units vested (1) | 106.7 | 52.1 | 273.4 | ||||||||||||||||||
(1) | The fair value represents the total dollar value of the stock options, SARs and stock units as of the respective grant dates. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of our income tax provision in 2014, 2013 and 2012 were as follows: | |||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||
Current taxes: | ||||||||||
Federal | $ | 1,233.00 | $ | 901.9 | $ | 731.5 | ||||
State | 84 | 55.7 | 48.4 | |||||||
Total current taxes | 1,317.00 | 957.6 | 779.9 | |||||||
Deferred taxes (benefits): | ||||||||||
Federal | 114.1 | 63 | 112.8 | |||||||
State | 23.6 | 8 | (5.2 | ) | ||||||
Total deferred income taxes | 137.7 | 71 | 107.6 | |||||||
Total income taxes | $ | 1,454.70 | $ | 1,028.60 | $ | 887.5 | ||||
Schedule of Effective Income Tax Rate Reconciliation | Income taxes were different from the amount computed by applying the statutory federal income tax rate to income before income taxes as follows: | |||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||
Income before income taxes | $ | 3,499.90 | $ | 2,940.50 | $ | 2,547.30 | ||||
Tax rate | 35 | % | 35 | % | 35 | % | ||||
Application of the tax rate | 1,225.00 | 1,029.20 | 891.6 | |||||||
Tax effect of: | ||||||||||
Health insurer fee | 211.9 | — | — | |||||||
State income taxes | 78.2 | 44.2 | 26.3 | |||||||
Other, net | (60.4 | ) | (44.8 | ) | (30.4 | ) | ||||
Income taxes | $ | 1,454.70 | $ | 1,028.60 | $ | 887.5 | ||||
Schedule of Deferred Tax Assets and Liabilities | The significant components of our net deferred tax liabilities at December 31, 2014 and 2013 were as follows: | |||||||||
(Millions) | 2014 | 2013 | ||||||||
Deferred tax assets: | ||||||||||
Employee and postretirement benefits | $ | 290.9 | $ | 130.9 | ||||||
Insurance reserves | 252.9 | 237.4 | ||||||||
Reserve for anticipated future losses on discontinued products | 199.1 | 225.2 | ||||||||
Net operating losses | 195.3 | 176.2 | ||||||||
Investments, net | 68.3 | 76 | ||||||||
Debt fair value adjustments | 43.4 | 62 | ||||||||
Severance and facilities | 9.9 | 30.1 | ||||||||
Deferred policy acquisition costs | 9.2 | 21.9 | ||||||||
Litigation-related settlement | 6 | 43.5 | ||||||||
Other | 94.9 | 106.3 | ||||||||
Gross deferred tax assets | 1,169.90 | 1,109.50 | ||||||||
Less: Valuation allowance | 147.9 | 139.3 | ||||||||
Deferred tax assets, net of valuation allowance | 1,022.00 | 970.2 | ||||||||
Deferred tax liabilities: | ||||||||||
Goodwill and other acquired intangible assets | 868.4 | 861.9 | ||||||||
Unrealized gains on investment securities | 291.5 | 192.8 | ||||||||
Cumulative depreciation and amortization | 286.6 | 258.2 | ||||||||
Total gross deferred tax liabilities | 1,446.50 | 1,312.90 | ||||||||
Net deferred tax liabilities (1) | $ | (424.5 | ) | $ | (342.7 | ) | ||||
(1) | Includes $443.0 million and $521.5 million classified as current assets at December 31, 2014 and 2013, respectively. Includes $867.5 million and $864.2 million classified as long-term liabilities at December 31, 2014 and 2013, respectively. |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Carrying Value of Long-Term Debt | The carrying value of our long-term debt at December 31, 2014 and 2013 was as follows: | |||||||
(Millions) | 2014 | 2013 | ||||||
Senior notes, 6.3%, due 2014 (1) | $ | — | $ | 387.3 | ||||
Senior notes, 6.125%, due 2015 | 229.3 | 240.6 | ||||||
Senior notes, 6.0%, due 2016 | — | 748.9 | ||||||
Senior notes, 5.95%, due 2017 | 418.3 | 434.2 | ||||||
Senior notes, 1.75%, due 2017 | 249.2 | 248.9 | ||||||
Senior notes, 1.5%, due 2017 | 498.6 | 498.2 | ||||||
Senior notes, 6.5%, due 2018 | — | 494.9 | ||||||
Senior notes, 2.2%, due 2019 | 374.7 | — | ||||||
Senior notes, 3.95%, due 2020 | 745.2 | 744.3 | ||||||
Senior notes, 5.45%, due 2021 | 688.6 | 702.3 | ||||||
Senior notes, 4.125%, due 2021 | 495.5 | 494.8 | ||||||
Senior notes, 2.75%, due 2022 | 986.8 | 985.1 | ||||||
Senior notes, 3.5%, due 2024 | 746.9 | — | ||||||
Senior notes, 6.625%, due 2036 | 769.8 | 769.8 | ||||||
Senior notes, 6.75%, due 2037 | 530.7 | 530.6 | ||||||
Senior notes, 4.5%, due 2042 | 480.8 | 480.1 | ||||||
Senior notes, 4.125%, due 2042 | 492.8 | 492.6 | ||||||
Senior notes, 4.75%, due 2044 | 374.1 | — | ||||||
Total long-term debt | 8,081.30 | 8,252.60 | ||||||
Less current portion of long-term debt (2) | 229.3 | 387.3 | ||||||
Total long-term debt, less current portion | $ | 7,852.00 | $ | 7,865.30 | ||||
-1 | The 6.3% senior notes were repaid in August 2014. These notes were classified as current in the consolidated balance sheet at December 31, 2013. | |||||||
(2) | At December 31, 2014, our 6.125% senior notes due January 2015 are classified as current in the accompanying consolidated balance sheet. | |||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Class of Stock Disclosures [Abstract] | ||||||||||||||||||||||
Schedule of Board authorizations for common stock repurchases | From time to time, our Board authorizes us to repurchase our common stock. The repurchases are effected from time to time in the open market, through negotiated transactions, including accelerated share repurchase agreements, and through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The activity under Board authorized share repurchase programs in 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||
Purchase Not to Exceed | Shares Purchased | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
(Millions) | Shares | Cost | Shares | Cost | Shares | Cost | ||||||||||||||||
Authorization date: | ||||||||||||||||||||||
21-Nov-14 | $ | 1,000.00 | — | $ | — | — | $ | — | — | $ | — | |||||||||||
28-Feb-14 | 1,000.00 | 7.6 | 621 | — | — | — | — | |||||||||||||||
27-Sep-13 | 750 | 8.3 | 597 | 2.3 | 153 | — | — | |||||||||||||||
19-Feb-13 | 750 | — | — | 11.6 | 750 | — | — | |||||||||||||||
27-Jul-12 | 750 | — | — | 9.1 | 504.7 | 5.3 | 245.3 | |||||||||||||||
24-Feb-12 | 750 | — | — | — | — | 17.8 | 750 | |||||||||||||||
23-Sep-11 | 750 | — | — | — | — | 9.2 | 422.2 | |||||||||||||||
Total repurchases | N/A | 15.9 | $ | 1,218.00 | 23 | $ | 1,407.70 | 32.3 | $ | 1,417.50 | ||||||||||||
Repurchase authorization remaining at December 31, | N/A | $ | 1,379.00 | N/A | $ | 597 | N/A | $ | 504.7 | |||||||||||||
Dividends declared | In 2014 and 2013 our Board declared the following cash dividends: | |||||||||||||||||||||
Date Declared | Dividend Amount | Stockholders of | Date Paid/ | Total Dividends | ||||||||||||||||||
Per Share | Record Date | To be Paid | (Millions) | |||||||||||||||||||
19-Feb-13 | $ | 0.2 | 11-Apr-13 | 26-Apr-13 | $ | 65.3 | ||||||||||||||||
17-May-13 | 0.2 | 11-Jul-13 | 26-Jul-13 | 74.4 | ||||||||||||||||||
27-Sep-13 | 0.2 | 10-Oct-13 | 25-Oct-13 | 73.5 | ||||||||||||||||||
6-Dec-13 | 0.225 | 16-Jan-14 | 31-Jan-14 | 81.6 | ||||||||||||||||||
28-Feb-14 | 0.225 | 10-Apr-14 | 25-Apr-14 | 80.4 | ||||||||||||||||||
30-May-14 | 0.225 | 10-Jul-14 | 25-Jul-14 | 79.6 | ||||||||||||||||||
19-Sep-14 | 0.225 | 16-Oct-14 | 31-Oct-14 | 79 | ||||||||||||||||||
21-Nov-14 | 0.25 | 15-Jan-15 | 30-Jan-15 | 87.5 | ||||||||||||||||||
Accelerated Share Repurchases [Table Text Block] | We have completed the following accelerated share repurchase programs with repurchase periods during the year ended December 31, 2014: | |||||||||||||||||||||
Trade Date: | Value of Repurchase Program (Millions) | Repurchase Period | Number of Shares Repurchased (Millions) | |||||||||||||||||||
May 16, 2014 | $ | 100 | Jul-14 | 1.2 | ||||||||||||||||||
August 5, 2014 | 100 | Oct-14 | 1.3 | |||||||||||||||||||
Dividend_Restrictions_and_Stat1
Dividend Restrictions and Statutory Surplus (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Dividend Restrictions and Statutory Surplus [Abstract] | ||||||||||
Statutory accounting practices disclosure | The combined statutory net income for the years ended and combined statutory capital and surplus at December 31, 2014, 2013 and 2012 for our insurance and HMO subsidiaries were as follows: | |||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||
Statutory net income | $ | 2,126.60 | $ | 1,750.10 | $ | 1,813.70 | ||||
Statutory capital and surplus | 9,405.80 | 8,431.00 | 6,372.80 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summarized financial information of segments | Summarized financial information of our segment operations for 2014, 2013 and 2012 were as follows: | |||||||||||||||
(Millions) | Health | Group | Large Case | Corporate | Total Company | |||||||||||
Care | Insurance | Pensions (2) | Financing | |||||||||||||
2014 | ||||||||||||||||
Revenue from external customers | $ | 54,676.60 | $ | 2,214.20 | $ | 86.1 | $ | — | $ | 56,976.90 | ||||||
Net investment income | 367.6 | 261.2 | 317.1 | — | 945.9 | |||||||||||
Interest expense | — | — | — | 329.3 | 329.3 | |||||||||||
Depreciation and amortization expense | 627.8 | 1.2 | — | — | 629 | |||||||||||
Income taxes (benefits) | 1,587.20 | 57.4 | 0.7 | (190.6 | ) | 1,454.70 | ||||||||||
Operating earnings (loss) (1) | 2,376.50 | 171 | 20.7 | (163.6 | ) | 2,404.60 | ||||||||||
Segment assets | 36,614.70 | 5,510.80 | 11,276.60 | — | 53,402.10 | |||||||||||
2013 | ||||||||||||||||
Revenue from external customers | $ | 44,085.20 | $ | 2,053.30 | $ | 248.6 | $ | — | $ | 46,387.10 | ||||||
Net investment income | 309.3 | 286.6 | 320.4 | — | 916.3 | |||||||||||
Interest expense | — | — | — | 333.7 | 333.7 | |||||||||||
Depreciation and amortization expense | 564.7 | 4.4 | — | — | 569.1 | |||||||||||
Income taxes (benefits) | 1,078.40 | 32.3 | 21.8 | (103.9 | ) | 1,028.60 | ||||||||||
Operating earnings (loss) (1) | 2,267.40 | 130.9 | 21.2 | (178.4 | ) | 2,241.10 | ||||||||||
Segment assets | 33,212.90 | 5,520.30 | 11,031.60 | — | 49,764.80 | |||||||||||
2012 | ||||||||||||||||
Revenue from external customers | $ | 32,608.90 | $ | 1,842.00 | $ | 1,118.00 | $ | — | $ | 35,568.90 | ||||||
Net investment income | 310.4 | 282.8 | 329 | — | 922.2 | |||||||||||
Interest expense | — | — | — | 268.8 | 268.8 | |||||||||||
Depreciation and amortization expense | 445.5 | 4.4 | — | — | 449.9 | |||||||||||
Income taxes (benefits) | 950.5 | 62.3 | (2.4 | ) | (122.9 | ) | 887.5 | |||||||||
Operating earnings (loss) (1) | 1,841.50 | 164.4 | 17.8 | (161.8 | ) | 1,861.90 | ||||||||||
Segment assets | 24,138.90 | 5,697.50 | 11,551.10 | — | 41,387.50 | |||||||||||
(1) | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation on page 134. | |||||||||||||||
(2) | In 2013 and 2012, pursuant to contractual rights exercised by the contract holders, certain existing group annuity contracts converted from participating to non-participating contracts. Upon conversion, we recorded $99.0 million and $941.4 million of non-cash group annuity conversion premium for these contracts and a corresponding $99.0 million and $941.4 million non-cash benefit expense on group annuity conversion for these contracts during 2013 and 2012, respectively. | |||||||||||||||
Reconciliation of operating earnings to net income | A reconciliation of operating earnings (1) to net income attributable to Aetna in 2014, 2013 and 2012 was as follows. | |||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Operating earnings | $ | 2,404.60 | $ | 2,241.10 | $ | 1,861.90 | ||||||||||
Transaction, integration-related and restructuring costs, net of tax | (134.2 | ) | (233.5 | ) | (25.4 | ) | ||||||||||
Loss on early extinguishment of long-term debt, net of tax | (117.8 | ) | — | (55.2 | ) | |||||||||||
Pension settlement charge, net of tax | (72.5 | ) | — | — | ||||||||||||
Release of litigation-related reserve, net of tax | 67 | — | — | |||||||||||||
Charge for changes in our life insurance claim payment practices, net of tax | — | (35.7 | ) | — | ||||||||||||
Reduction of reserve for anticipated future losses on discontinued products, net of tax | — | 55.9 | — | |||||||||||||
Reversal of allowance and gain on sale of reinsurance recoverable, net of tax | — | 32.1 | — | |||||||||||||
Litigation-related settlement, net of tax | — | — | (78.0 | ) | ||||||||||||
Severance charge, net of tax | — | — | (24.1 | ) | ||||||||||||
Amortization of other acquired intangible assets, net of tax | (158.2 | ) | (139.5 | ) | (92.3 | ) | ||||||||||
Net realized capital gains (losses), net of tax | 51.9 | (6.8 | ) | 71 | ||||||||||||
Net income attributable to Aetna | $ | 2,040.80 | $ | 1,913.60 | $ | 1,657.90 | ||||||||||
(1) | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance: | |||||||||||||||
• | We incurred transaction and integration-related costs of $134.2 million ($200.7 million pretax) related to the acquisitions of Coventry, bSwift and InterGlobal during 2014. We incurred transaction, integration-related and restructuring costs of $233.5 million ($332.8 million pretax) and $25.4 million ($32.6 million pretax) during 2013 and 2012, related to the acquisition of Coventry, respectively. Restructuring costs, primarily comprised of severance and real estate consolidation costs, are related to the acquisition of Coventry and our expense management and cost control initiatives. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Acquisition Date, that negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings. | |||||||||||||||
• | In 2014 and 2012, we incurred losses on the early extinguishment of long-term debt of $117.8 million ($181.2 million pretax) and $55.2 million ($84.9 million pretax) related to the redemption and/or repurchase of certain of our outstanding senior notes, respectively. | |||||||||||||||
• | During 2014, we enhanced the Aetna Pension Plan to allow certain current and former employees to elect a 100% lump-sum distribution. In addition, we also announced a limited-time offer permitting certain former employees with deferred vested balances to elect a 100% lump-sum distribution. The distributions in 2014 were funded from existing Aetna Pension Plan assets and we recorded a related non-cash settlement charge of $72.5 million ($111.6 million pretax) during 2014 in general and administrative expenses. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | |||||||||||||||
• | In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 18 beginning on page 127 for additional information on the termination of the settlement agreement. | |||||||||||||||
• | In the fourth quarter of 2013, we increased our estimated liability for unpaid life insurance claims with respect to insureds who passed away on or before December 31, 2013, and recorded in current and future benefits a charge of $35.7 million ($55.0 million pretax) as a result of changes during the fourth quarter of 2013 in our life insurance claim payment practices (including related escheatment practices) based on evolving industry practices and regulatory expectations and interpretations. Refer to Note 18 beginning on page 127 for additional information on the changes in our life insurance claim payment practices. | |||||||||||||||
• | We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 20 beginning on page 135 for additional information on the reduction of the reserve for anticipated future losses on discontinued products. | |||||||||||||||
• | In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In 2013, we sold our claim against Lehman Re to an unrelated third party (including the reinsurance recoverable) and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we reversed the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue. | |||||||||||||||
• | In 2012, we recorded a severance charge of $24.1 million ($37.0 million pretax) related to actions taken in 2012 and 2013. | |||||||||||||||
Revenues from external customers by product | Revenues from external customers by product in 2014, 2013 and 2012 were as follows: | |||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Health care premiums | $ | 49,562.20 | $ | 39,659.70 | $ | 28,872.00 | ||||||||||
Health care fees and other revenue | 5,114.40 | 4,425.50 | 3,736.90 | |||||||||||||
Group life | 1,240.90 | 1,158.90 | 1,070.10 | |||||||||||||
Group disability | 929 | 849.5 | 726 | |||||||||||||
Group long-term care | 44.3 | 44.9 | 45.9 | |||||||||||||
Large case pensions, excluding group annuity contract conversion premium | 86.1 | 149.6 | 176.6 | |||||||||||||
Group annuity contract conversion premium (1) | — | 99 | 941.4 | |||||||||||||
Total revenue from external customers (2) (3) | $ | 56,976.90 | $ | 46,387.10 | $ | 35,568.90 | ||||||||||
(1) | In 2013 and 2012, pursuant to contractual rights exercised by the contract holders, certain existing group annuity contracts converted from participating to non-participating contracts. Upon conversion, we recorded $99.0 million and $941.4 million of non-cash group annuity conversion premium for these contracts and a corresponding $99.0 million and $941.4 million non-cash benefit expense on group annuity conversion for these contracts during 2013 and 2012, respectively. | |||||||||||||||
(2) | All within the U.S., except approximately $1.2 billion, $886 million and $775 million in 2014, 2013 and 2012, respectively, which were derived from foreign customers. | |||||||||||||||
(3) | Revenue from the U.S. federal government was approximately $15.5 billion, $12.2 billion and $7.4 billion in 2014, 2013 and 2012, respectively, in the Health Care and Group Insurance segments. These amounts exceeded 10 percent of our total revenue from external customers in each of 2014, 2013 and 2012. | |||||||||||||||
Reconciliation of revenues from external customers to total revenues | The following is a reconciliation of revenue from external customers to total revenues included in our statements of income in 2014, 2013 and 2012: | |||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Revenue from external customers | $ | 56,976.90 | $ | 46,387.10 | $ | 35,568.90 | ||||||||||
Net investment income | 945.9 | 916.3 | 922.2 | |||||||||||||
Net realized capital gains (losses) | 80.4 | (8.8 | ) | 108.7 | ||||||||||||
Total revenue | $ | 58,003.20 | $ | 47,294.60 | $ | 36,599.80 | ||||||||||
Discontinued_Products_Tables
Discontinued Products (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Discontinued Products [Abstract] | ||||||||||||||
Activity in the Reserve for Anticipated Future Losses | The activity in the reserve for anticipated future losses on discontinued products in 2014, 2013 and 2012 was as follows (pretax): | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||
Reserve, beginning of period | $ | 979.5 | $ | 978.5 | $ | 896.3 | ||||||||
Operating income (loss) | 6 | 1 | (2.0 | ) | ||||||||||
Net realized capital gains | 29.2 | 86 | 84.2 | |||||||||||
Reserve reduction | — | (86.0 | ) | — | ||||||||||
Reserve, end of period | $ | 1,014.70 | $ | 979.5 | $ | 978.5 | ||||||||
Anticipated Runoff Of Discontinued Products Reserve Balance | The anticipated run-off of the discontinued products reserve balance at December 31, 2014 (assuming that assets are held until maturity and that the reserve run-off is proportional to the liability run-off) is as follows: | |||||||||||||
(Millions) | ||||||||||||||
2015 | $ | 53.9 | ||||||||||||
2016 | 52.9 | |||||||||||||
2017 | 51.6 | |||||||||||||
2018 | 50.2 | |||||||||||||
2019 | 48.7 | |||||||||||||
Thereafter | 757.4 | |||||||||||||
Assets and Liabilities Supporting Discontinued Products | Assets and liabilities supporting discontinued products at 2014 and 2013 were as follows: (1) | |||||||||||||
(Millions) | 2014 | 2013 | ||||||||||||
Assets: | ||||||||||||||
Debt and equity securities available for sale | $ | 2,376.20 | $ | 2,372.60 | ||||||||||
Mortgage loans | 386.8 | 407 | ||||||||||||
Other investments | 662.2 | 663.9 | ||||||||||||
Total investments | 3,425.20 | 3,443.50 | ||||||||||||
Other assets | 112.9 | 85.2 | ||||||||||||
Collateral received under securities loan agreements | 200.7 | 204.4 | ||||||||||||
Current and deferred income taxes | — | 14.4 | ||||||||||||
Receivable from continuing products (2) | 566.5 | 533.1 | ||||||||||||
Total assets | $ | 4,305.30 | $ | 4,280.60 | ||||||||||
Liabilities: | ||||||||||||||
Future policy benefits | $ | 2,645.80 | $ | 2,804.80 | ||||||||||
Reserve for anticipated future losses on discontinued products | 1,014.70 | 979.5 | ||||||||||||
Collateral payable under securities loan agreements | 200.7 | 204.4 | ||||||||||||
Current and deferred income taxes | 27.9 | — | ||||||||||||
Other liabilities (3) | 416.2 | 291.9 | ||||||||||||
Total liabilities | $ | 4,305.30 | $ | 4,280.60 | ||||||||||
(1) | Assets supporting the discontinued products are distinguished from assets supporting continuing products. | |||||||||||||
(2) | At the time of discontinuance, a receivable from Large Case Pensions’ continuing products was established on the discontinued products balance sheet. This receivable represented the net present value of anticipated cash shortfalls in the discontinued products, which will be funded from continuing products. Interest on the receivable is accrued at the discount rate that was used to calculate the reserve. The offsetting payable, on which interest is similarly accrued, is reflected in continuing products. Interest on the payable generally offsets investment income on the assets available to fund the shortfall. These amounts are eliminated in consolidation. | |||||||||||||
(3) | Net unrealized capital gains on the available-for-sale debt securities are included in other liabilities and are not reflected in consolidated shareholders’ equity. | |||||||||||||
Expected Runoff Of Single Premium Annuities And Guaranteed Investment Contracts Liabilities | At December 31, 2014, the expected run-off of the SPA and GIC liabilities, including future interest, was as follows: (1) | |||||||||||||
(Millions) | ||||||||||||||
2015 | $ | 383.7 | ||||||||||||
2016 | 367.8 | |||||||||||||
2017 | 351.5 | |||||||||||||
2018 | 335.3 | |||||||||||||
2019 | 319.3 | |||||||||||||
Thereafter | 4,133.40 | |||||||||||||
-1 | At both December 31, 2014 and 2013, our remaining GIC liability was not material. | |||||||||||||
Comparison Of Expected And Actual Runoff Of Single Premium Annuities And Guaranteed Investment Contracts Liabilities | The liability expected at December 31, 1993 and actual liability balances at December 31, 2014, 2013 and 2012 for the GIC and SPA liabilities were as follows: | |||||||||||||
Expected | Actual | |||||||||||||
(Millions) | GIC | SPA | GIC | SPA | ||||||||||
2012 | $ | 16.1 | $ | 2,615.40 | $ | 6.6 | $ | 2,857.60 | ||||||
2013 | 15.7 | 2,448.90 | — | 2,804.80 | ||||||||||
2014 | 12 | 2,281.00 | — | 2,645.80 | ||||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | Quarterly Data (unaudited) | |||||||||||||||
(Millions, except per share and common stock data) | First | Second | Third | Fourth | ||||||||||||
2014 | ||||||||||||||||
Total revenue | $ | 13,994.80 | $ | 14,509.40 | $ | 14,727.80 | $ | 14,771.20 | ||||||||
Income before income taxes | $ | 1,149.70 | $ | 924.6 | $ | 996.9 | $ | 428.7 | ||||||||
Income taxes | (480.3 | ) | (377.4 | ) | (398.1 | ) | (198.9 | ) | ||||||||
Net income including non-controlling interests | 669.4 | 547.2 | 598.8 | 229.8 | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 3.9 | (1.6 | ) | 4.3 | (2.2 | ) | ||||||||||
Net income attributable to Aetna | $ | 665.5 | $ | 548.8 | $ | 594.5 | $ | 232 | ||||||||
Net income attributable to Aetna per share - basic (1) | $ | 1.84 | $ | 1.54 | $ | 1.68 | $ | 0.66 | ||||||||
Net income attributable to Aetna per share - diluted (1) | 1.82 | 1.52 | 1.67 | 0.65 | ||||||||||||
Dividends declared per share | $ | 0.225 | $ | 0.225 | $ | 0.225 | $ | 0.25 | ||||||||
Common stock prices, high | 75.71 | 82.46 | 84.94 | 90.84 | ||||||||||||
Common stock prices, low | 65.15 | 67.77 | 75.22 | 73.43 | ||||||||||||
2013 | ||||||||||||||||
Total revenue | $ | 9,538.90 | $ | 11,537.40 | $ | 13,035.60 | $ | 13,182.70 | ||||||||
Income before income taxes | $ | 750.7 | $ | 847.7 | $ | 806.7 | $ | 535.4 | ||||||||
Income taxes | (259.8 | ) | (314.5 | ) | (287.7 | ) | (166.6 | ) | ||||||||
Net income including non-controlling interests | 490.9 | 533.2 | 519 | 368.8 | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0.8 | (2.8 | ) | 0.4 | (.1 | ) | ||||||||||
Net income attributable to Aetna | $ | 490.1 | $ | 536 | $ | 518.6 | $ | 368.9 | ||||||||
Net income attributable to Aetna per share - basic (1) | $ | 1.5 | $ | 1.5 | $ | 1.4 | $ | 1.01 | ||||||||
Net income attributable to Aetna per share - diluted (1) | 1.48 | 1.49 | 1.38 | 1 | ||||||||||||
Dividends declared per share | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.225 | ||||||||
Common stock prices, high | 51.46 | 63.59 | 68.71 | 68.93 | ||||||||||||
Common stock prices, low | 44.38 | 52.38 | 61.54 | 60.75 | ||||||||||||
(1) | Calculation of net income attributable to Aetna per share is based on weighted average shares outstanding during each quarter and, accordingly, the sum may not equal the total for the year. |
Organization_Details
Organization (Details) (USD $) | 7-May-13 |
In Billions, unless otherwise specified | |
Organization [Line Items] | |
Total purchase price for an acquisition | $8.70 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
days | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred Policy Acquisition Costs | $222,000,000 | $137,000,000 |
Cash Collateral Percentage Minimum | 102.00% | |
Cash Collateral Percentage Maximum | 105.00% | |
Minimum days delinquent when a loan can be considered a problem loan (in days) | 60 | |
Property, Plant and Equipment, Gross | 807,000,000 | 852,000,000 |
Accumulated depreciation | 137,000,000 | 130,000,000 |
Minimum assumed interest rates on limited payment pension contracts on large case pension business (in hundredths) | 0.80% | 1.30% |
Limited Payments Contracts Maximum | 11.30% | 11.30% |
Minimum assumed interest rates on long-duration group life and long-term care contracts (in hundredths) | 2.50% | 2.50% |
Maximum assumed interest rates on long-duration group life and long-term care contracts (in hundredths) | 8.80% | 8.80% |
Discounted unpaid claim liabilities related to long-term disability and life insurance premium waiver contracts | 2,000,000,000 | 1,900,000,000 |
Undiscounted value of unpaid claim liabilities related to long-term disability and life insurance premium waiver contracts | 2,700,000,000 | 2,600,000,000 |
Minimum rate used to discount the reserves supporting our long-term disability and premium waiver contracts (in hundredths) | 3.00% | 3.30% |
Maximum rate used to discount the reserves supporting our long-term disability and premium waiver contracts (in hundredths) | 6.00% | 6.00% |
Minimum interest rate for pension and annuity investment contracts (in hundredths) | 3.60% | 3.80% |
Maximum interest rate for pension and annuity investment contracts (in hundredths) | 16.70% | 12.20% |
Minimum interest rate for group health and life contracts (in hundredths) | 0.00% | 0.00% |
Maximum interest rate for group health and life contracts (in hundredths) | 2.80% | 3.20% |
Policyholder funds - Health Savings Account | 1,300,000,000 | 920,000,000 |
Reinsurance Recoverable Under Health Care Reform | 338,000,000 | |
Net health care reform risk adjustment payable (receivable) | 230,000,000 | |
Health care reform risk corridor receivable | $0 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies- Valuation and Allowance (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Allowance for Uncollectible Premiums Receivable [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Valuation Allowances and Reserves, Balance | $141 | $90 |
Allowance for Trade Receivables [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Valuation Allowances and Reserves, Balance | $17 | $34 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | 7-May-13 | ||
Business Acquisition [Line Items] | ||||
Total purchase price for an acquisition | $8,700,000,000 | |||
Long-term debt acquired | 1,800,000,000 | |||
bSwift [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price for an acquisition | 400,000,000 | |||
Goodwill, Acquired During Period | $318,000,000 | [1] | $0 | |
[1] | Goodwill related to the acquisition of bSwift is considered preliminary, pending the final allocation of the applicable purchase price. |
Acquisitions_Pro_Forma_and_Act
Acquisitions Pro Forma and Actual Financial Results (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pro Forma and Actual Business Results [Abstract] | ||
Business Acquisition, Pro Forma Revenue | $52,089.30 | $50,282.60 |
Business Acquisition, Pro Forma Net Income (Loss) | $2,144.60 | $2,115.10 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $5.75 | $5.39 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $5.69 | $5.33 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||||||||||||||||||||
Net income attributable to the parent | $232 | $594.50 | $548.80 | $665.50 | $368.90 | $518.60 | $536 | $490.10 | $2,040.80 | $1,913.60 | $1,657.90 | |||||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||||||||||||||||
Weighted average shares used to compute basic EPS (in shares) | 355.5 | 355.4 | 340.1 | |||||||||||||||||||
Dilutive effect of outstanding stock-based compensation awards (in shares) | 3.6 | 3.8 | 4.9 | |||||||||||||||||||
Weighted average shares used to compute diluted EPS (in shares) | 359.1 | 359.2 | 345 | |||||||||||||||||||
Basic EPS (in dollars per share) | $0.66 | [1] | $1.68 | [1] | $1.54 | [1] | $1.84 | [1] | $1.01 | [1] | $1.40 | [1] | $1.50 | [1] | $1.50 | [1] | $5.74 | $5.38 | $4.87 | |||
Diluted EPS (in dollars per share) | $0.65 | [1] | $1.67 | [1] | $1.52 | [1] | $1.82 | [1] | $1 | [1] | $1.38 | [1] | $1.49 | [1] | $1.48 | [1] | $5.68 | $5.33 | $4.81 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 52.2 | |||||||||||||||||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||||||||||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.3 | [2] | 1.7 | [2] | 8.3 | [2] | ||||||||||||||||
Other Securities [Member] | ||||||||||||||||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1.2 | [3] | 1.8 | [3] | 0.7 | [3] | ||||||||||||||||
[1] | Calculation of net income attributable to Aetna per share is based on weighted average shares outstanding during each quarter and, accordingly, the sum may not equal the total for the year. | |||||||||||||||||||||
[2] | SARs are excluded from the calculation of diluted EPS if the exercise price is greater than the average market price of Aetna common shares during the period (i.e., the awards are anti-dilutive). | |||||||||||||||||||||
[3] | Performance stock units ("PSUs"), certain market stock units ("MSUs") with performance conditions, and performance stock appreciation rights ("PSARs") are excluded from the calculation of diluted EPS if all necessary performance conditions have not been satisfied at the end of the reporting period (refer to Note 12 beginning on page 117 for additional information about PSARs). |
Operating_Expenses_Details
Operating Expenses (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Selling expenses | $1,653 | $1,348.60 | $1,105.50 | |||
General and administrative expenses: | ||||||
Salaries and related benefits | 4,543.50 | 4,139.50 | 3,115.30 | |||
Other general and administrative expenses | 4,641.20 | [1] | 3,157.30 | [1] | 2,655.60 | [1] |
Total general and administrative expenses | 9,184.70 | [2] | 7,296.80 | [2] | 5,770.90 | [2] |
Total operating expenses | 10,837.70 | 8,645.40 | 6,876.40 | |||
Health Insurer Fee | 605.3 | |||||
Reinsurance contribution under Health Care Reform | 335.5 | |||||
Pension settlement charge | 111.6 | [3] | 0 | 0 | ||
Release of litigation-related reserve, pre-tax | 103 | |||||
Reversal of allowance reinsurance recoverable | 42.2 | |||||
Litigation Settlement, Expense | 120 | |||||
Severence And Facilities Charge Pretax | 37 | |||||
Operating Expense [Member] | ||||||
General and administrative expenses: | ||||||
General and administrative transaction and integration-related costs | $200.70 | $314.60 | $16.20 | |||
[1] | In 2014, includes fees mandated by the ACA comprised primarily of the HIF of $605.3 million and our estimated contribution to the funding of the reinsurance program of $335.5 million. Refer to Note 2 beginning on page 80 for additional information on fees mandated by the ACA. | |||||
[2] | In 2014, includes: a non-cash settlement charge incurred in connection with the Aetna Pension Plan of $111.6 million; transaction and integration-related costs of $200.7 million and a release of a litigation-related reserve of $103.0 million. In 2013, includes: transaction, integration-related and restructuring costs of $314.6 million and a reduction of expenses related to reversal of an allowance on a reinsurance recoverable of $42.2 million. In 2012, includes: a litigation-related charge of $120.0 million, transaction and integration-related costs of $16.2 million and a severance and facilities charge of $37.0 million. | |||||
[3] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. |
Health_Care_Costs_Payable_Deta
Health Care Costs Payable (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 7-May-13 | |
Health Care Costs Payable [Abstract] | ||||
Health care costs payable, beginning of the period | $4,547,400,000 | $2,992,500,000 | $2,675,500,000 | |
Less: Reinsurance recoverables | 8,500,000 | 3,800,000 | 3,300,000 | |
Health care costs payable, beginning of the period, net | 4,538,900,000 | 2,988,700,000 | 2,672,200,000 | |
Acquisition of businesses | 29,200,000 | 1,417,200,000 | 0 | |
Add: Components of incurred health care costs [Abstract] | ||||
Current year | 41,327,500,000 | 33,344,800,000 | 23,875,600,000 | |
Prior years | -580,800,000 | -448,800,000 | -146,700,000 | |
Total incurred health care costs | 40,746,700,000 | 32,896,000,000 | 23,728,900,000 | |
Less: Claims paid [Abstract] | ||||
Current year | 35,850,700,000 | 30,112,700,000 | 21,067,700,000 | |
Prior years | 3,848,800,000 | 2,608,000,000 | 2,344,700,000 | |
Total claims paid | 39,699,500,000 | 32,720,700,000 | 23,412,400,000 | |
Health care costs payable, disposed | 0 | -42,300,000 | 0 | |
Health care costs payable, end of period - net | 5,615,300,000 | 4,538,900,000 | 2,988,700,000 | |
Add: Reinsurance recoverables | 5,800,000 | 8,500,000 | 3,800,000 | |
Health care costs payable, end of period | 5,621,100,000 | 4,547,400,000 | 2,992,500,000 | |
Decrease in estimate of health care costs payable | 581,000,000 | 449,000,000 | 147,000,000 | |
Business combination, health care costs payable | $1,400,000,000 |
Goodwill_and_Other_Acquired_In2
Goodwill and Other Acquired Intangible Assets - Goodwill (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Goodwill [Roll Forward] | |||||
Balance, beginning of the period | $6,214.40 | ||||
Balance, end of the period | 10,613.20 | [1] | 10,227.50 | [1] | 6,214.40 |
Group Insurance [Member] | |||||
Goodwill [Roll Forward] | |||||
Balance, end of the period | 113 | 113 | |||
bSwift [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Acquired During Period | 318 | [2] | 0 | ||
InterGlobal Group [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Acquired During Period | 67.7 | 0 | |||
Coventry [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Acquired During Period | 0 | 4,014.80 | |||
Other [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Acquired During Period | $0 | ($1.70) | |||
[1] | At both December 31, 2014 and 2013, approximately $113 million was assigned to the Group Insurance segment, with the remainder assigned to the Health Care segment. | ||||
[2] | Goodwill related to the acquisition of bSwift is considered preliminary, pending the final allocation of the applicable purchase price. |
Goodwill_and_Other_Acquired_In3
Goodwill and Other Acquired Intangible Assets - Intangible Assets (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Acquired Intangible Assets[Line Items] | ||||
Total other acquired intangible assets, cost | $3,116.20 | $3,090 | ||
Accumulated Amortization | 1,167.90 | 995.9 | ||
Other acquired intangible assets, net | 1,948.30 | 2,094.10 | ||
Technology-Based Intangible Assets [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Finite-lived Intangible Assets Acquired | 41.6 | |||
Trademarks [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Finite-lived Intangible Assets Acquired | 6.2 | |||
Customer Lists [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Finite-lived Intangible Assets Acquired | 25.8 | |||
Trademarks Indefinite Lived [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Indefinite-lived trademarks | 22.3 | 22.3 | ||
Indefinite-lived intangible asset, accumulated amortization | 0 | 0 | ||
Provider networks [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Cost | 1,254.10 | 1,253.20 | ||
Accumulated Amortization | 570.4 | 508.8 | ||
Other acquired intangible assets, net | 683.7 | 744.4 | ||
The minimum number of years in the period prior to the next renewal or extension for provider networks (in years) | 1 | 1 | ||
The maximum number of years in the period prior to the next renewal or extension for provider networks (in years) | 3 | 3 | ||
Customer Lists [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Cost | 1,319.50 | [1] | 1,347 | |
Accumulated Amortization | 413.6 | 361.8 | ||
Other acquired intangible assets, net | 905.9 | 985.2 | ||
Value Of Business Acquired [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Cost | 149.2 | 149.2 | ||
Accumulated Amortization | 65.3 | 48.5 | ||
Other acquired intangible assets, net | 83.9 | 100.7 | ||
Technology [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Cost | 188.2 | [1] | 146.6 | |
Accumulated Amortization | 74 | 49.5 | ||
Other acquired intangible assets, net | 114.2 | 97.1 | ||
Other [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Cost | 10.5 | 6.7 | ||
Accumulated Amortization | 2.7 | 1.8 | ||
Other acquired intangible assets, net | 7.8 | 4.9 | ||
Trademarks Definite Lived [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Cost | 172.4 | [1] | 165 | |
Accumulated Amortization | 41.9 | 25.5 | ||
Other acquired intangible assets, net | $130.50 | $139.50 | ||
Minimum [Member] | Provider networks [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 12 years | [2] | 12 years | [2] |
Minimum [Member] | Customer Lists [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 5 years | [2] | 5 years | [2] |
Minimum [Member] | Other [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 2 years | 2 years | ||
Minimum [Member] | Trademarks Definite Lived [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 5 years | 9 years | ||
Minimum [Member] | Technology-Based Intangible Assets [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 4 years | 4 years | ||
Maximum [Member] | Provider networks [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 25 years | [2] | 25 years | [2] |
Maximum [Member] | Customer Lists [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 14 years | [2] | 14 years | [2] |
Maximum [Member] | Value Of Business Acquired [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 20 years | [3] | 20 years | [3] |
Maximum [Member] | Other [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 15 years | 15 years | ||
Maximum [Member] | Trademarks Definite Lived [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 20 years | 20 years | ||
Maximum [Member] | Technology-Based Intangible Assets [Member] | ||||
Other Acquired Intangible Assets[Line Items] | ||||
Useful Life | 10 years | 10 years | ||
[1] | As a result of our acquisition of bSwift in 2014, we preliminarily assigned $41.6 million to technology, $25.8 million to customer lists, and $6.2 million to definite-lived trademarks. | |||
[2] | The amortization period for our provider networks and customer lists includes an assumption of renewal or extension of these arrangements. At both December 31, 2014 and 2013, the periods prior to the next renewal or extension for our provider networks primarily ranged from 1 to 3 years, and the period prior to the next renewal or extension for our customer lists was approximately 1 year. Any costs related to the renewal or extension of these contracts are expensed as incurred. | |||
[3] | VOBA is being amortized over the expected life of the acquired contracts in proportion to estimated premium. |
Goodwill_and_Other_Acquired_In4
Goodwill and Other Acquired Intangible Assets - Future Amortization Expense (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | $254.50 |
2016 | 248 |
2017 | 233.6 |
2018 | 197.6 |
2019 | $191.60 |
Investments_Details
Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Total Investments [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $202 | $0 |
Securities Loaned, Asset | 798 | 766 |
Restricted Investments | 778 | 794 |
Current | 2,595.20 | 2,063.80 |
Long-term investments | 22,193.90 | 20,935 |
Total investments | 24,789.10 | 22,998.80 |
Debt And Equity Securities Available For Sale [Member] | ||
Total Investments [Line Items] | ||
Current | 2,463.80 | 1,977.40 |
Long-term investments | 18,977.90 | 17,753 |
Total investments | 21,441.70 | 19,730.40 |
Mortgage Loans [Member] | ||
Total Investments [Line Items] | ||
Current | 124.2 | 84.9 |
Long-term investments | 1,438 | 1,464.70 |
Total investments | 1,562.20 | 1,549.60 |
Other Investments [Member] | ||
Total Investments [Line Items] | ||
Current | 7.2 | 1.5 |
Long-term investments | 1,778 | 1,717.30 |
Total investments | $1,785.20 | $1,718.80 |
Investments_Debt_and_Equity_Se
Investments - Debt and Equity Securities (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | $20,170.10 | [1] | $18,974.50 | [1] |
Gross Unrealized Gains | 1,347.70 | [1] | 1,036.40 | [1] |
Gross Unrealized Losses | -76.1 | [1] | -280.5 | [1] |
Fair Value | 21,441.70 | [1] | 19,730.40 | [1] |
Non Credit Related Impairments | 18.6 | 22.8 | ||
Net Unrealized Capital (Loss) Gains | 3.6 | 6.6 | ||
Supporting Discontinued And Experience Rated Products [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross Unrealized Gains | 391.3 | 291.3 | ||
Gross Unrealized Losses | -16.7 | -60.3 | ||
Fair Value | 3,600 | 3,700 | ||
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 20,146.80 | 18,936 | ||
Gross Unrealized Gains | 1,347.30 | 1,009.90 | ||
Gross Unrealized Losses | -72.3 | -276.8 | ||
Fair Value | 21,421.80 | 19,669.10 | ||
US Government Agencies Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 1,301.20 | 1,396.80 | ||
Gross Unrealized Gains | 96.3 | 68.7 | ||
Gross Unrealized Losses | -0.6 | -3 | ||
Fair Value | 1,396.90 | 1,462.50 | ||
US States and Political Subdivisions Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 4,540 | 4,118.50 | ||
Gross Unrealized Gains | 277.2 | 126.6 | ||
Gross Unrealized Losses | -7.8 | -82.8 | ||
Fair Value | 4,809.40 | 4,162.30 | ||
U.S. corporate securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 8,033.20 | 7,559 | ||
Gross Unrealized Gains | 606.8 | 493.7 | ||
Gross Unrealized Losses | -33.6 | -110.1 | ||
Fair Value | 8,606.40 | 7,942.60 | ||
Foreign Corporate Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 3,343.60 | 3,209.60 | ||
Gross Unrealized Gains | 267 | 198.9 | ||
Gross Unrealized Losses | -18.3 | -53 | ||
Fair Value | 3,592.30 | 3,355.50 | ||
Residential Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 902.7 | 928.4 | ||
Gross Unrealized Gains | 28.9 | 16.9 | ||
Gross Unrealized Losses | -3.9 | -21.1 | ||
Fair Value | 927.7 | 924.2 | ||
Commercial Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 1,324.60 | 1,323.50 | ||
Gross Unrealized Gains | 52.8 | 88.2 | ||
Gross Unrealized Losses | -1.6 | [2] | -4.7 | [2] |
Fair Value | 1,375.80 | 1,407 | ||
Other Asset-Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 644.7 | 343.4 | ||
Gross Unrealized Gains | 5.8 | 8.3 | ||
Gross Unrealized Losses | -6.5 | [2] | -2.1 | [2] |
Fair Value | 644 | 349.6 | ||
Redeemable Preferred Stock [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 56.8 | 56.8 | ||
Gross Unrealized Gains | 12.5 | 8.6 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 69.3 | 65.4 | ||
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 23.3 | 38.5 | ||
Gross Unrealized Gains | 0.4 | 26.5 | ||
Gross Unrealized Losses | -3.8 | -3.7 | ||
Fair Value | $19.90 | $61.30 | ||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 20 beginning on page 135 for additional information on our accounting for discontinued products). At December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million and, at December 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. | |||
[2] | At December 31, 2014 and 2013, we held securities for which we previously recognized $18.6 million and $22.8 million, respectively, of non-credit related impairments in accumulated other comprehensive loss. These securities had a net unrealized capital gain at December 31, 2014 and 2013 of $3.6 million and $6.6 million, respectively. |
Investments_Debt_Securities_by
Investments - Debt Securities by Maturity (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | $21,441.70 | [1] | $19,730.40 | [1] |
Debt Securities [Member] | ||||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 21,421.80 | 19,669.10 | ||
Available-for-sale Securities With Established Maturities [Member] | ||||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Less than one year | 1,163.40 | |||
One year through five years | 5,551.60 | |||
After five years through ten years | 5,754.80 | |||
Greater than ten years | 6,004.50 | |||
Residential Mortgage Backed Securities [Member] | ||||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 927.7 | 924.2 | ||
Weighted average duration of securities | 3 years 0 months 215 days | |||
Commercial Mortgage Backed Securities [Member] | ||||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,375.80 | 1,407 | ||
Weighted average duration of securities | 1 year 0 months 361 days | |||
Other Asset-Backed Securities [Member] | ||||
Available-for-sale Securities, Debt Maturities [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | $644 | $349.60 | ||
Weighted average duration of securities | 1 year 0 months 259 days | |||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 20 beginning on page 135 for additional information on our accounting for discontinued products). At December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million and, at December 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. |
Investments_Unrealized_Loss_Po
Investments - Unrealized Loss Position (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $2,661.60 | [1] | $6,203.50 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 41.9 | [1] | 230.7 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,289 | [1] | 490.6 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 34.2 | [1] | 49.8 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,950.60 | [1] | 6,694.10 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 76.1 | [1] | 280.5 | [1] |
Supporting Discontinued And Experience Rated Products [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 402.7 | 1,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 16.7 | 60.3 | ||
Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,653.60 | 6,203.50 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 41.9 | 230.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,287.60 | 474.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 30.4 | 46.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,941.20 | [1] | 6,677.90 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 72.3 | [1] | 276.8 | [1] |
Debt Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 401.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 12.8 | |||
US Government Agencies Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 20.6 | 555.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.1 | 2.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 19.8 | 13.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.5 | 0.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 40.4 | [1] | 569.3 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.6 | [1] | 3 | [1] |
US States and Political Subdivisions Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 457.4 | 1,779.90 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 2.2 | 73.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 347.4 | 132.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 5.6 | 9.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 804.8 | [1] | 1,912.30 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 7.8 | [1] | 82.8 | [1] |
Domestic Corporate Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,074.10 | 2,196.80 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 19.9 | 88 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 515.2 | 170 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 13.7 | 22.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,589.30 | [1] | 2,366.80 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 33.6 | [1] | 110.1 | [1] |
Foreign Corporate Debt Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 540 | 875.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 12.8 | 43.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 148 | 90.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 5.5 | 9.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 688 | [1] | 966.1 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 18.3 | [1] | 53 | [1] |
Residential Mortgage Backed Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3.9 | 541.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.1 | 17.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 166.9 | 35 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 3.8 | 3.8 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 170.8 | [1] | 576.1 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 3.9 | [1] | 21.1 | [1] |
Commercial Mortgage Backed Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 181.5 | 162.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0.7 | 4.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 69 | 25 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.9 | 0.5 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 250.5 | [1] | 187.4 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1.6 | [1] | 4.7 | [1] |
Other Asset-Backed Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 373.1 | 87.8 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 6.1 | 1.9 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 21.3 | 7.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0.4 | 0.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 394.4 | [1] | 95.5 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 6.5 | [1] | 2.1 | [1] |
Redeemable Preferred Stock [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3 | 4.4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3 | [1] | 4.4 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | [1] | 0 | [1] |
Equity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1.4 | 16.2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 3.8 | 3.7 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 9.4 | [1] | 16.2 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $3.80 | [1] | $3.70 | [1] |
[1] | At December 31, 2014 and 2013, debt and equity securities in an unrealized capital loss position of $16.7 million and $60.3 million, respectively, and with related fair value of $402.7 million and $1.0 billion, respectively, related to experience-rated and discontinued products. |
Investments_Unrealized_Loss_Po1
Investments - Unrealized Loss Position Maturities (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $76.10 | [1] | $280.50 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,950.60 | [1] | 6,694.10 | [1] |
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 72.3 | [1] | 276.8 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,941.20 | [1] | 6,677.90 | [1] |
Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 59.5 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,539.90 | |||
Supporting Discontinued And Experience Rated Products [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 16.7 | 60.3 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 402.7 | 1,000 | ||
Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 12.8 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 401.3 | |||
Maturing in Less than one Year [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 69.5 | |||
Maturing in Less than one Year [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.3 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 69.5 | |||
Maturing in Less than one Year [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 0 | |||
Maturing in One Through Five Years [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 9.9 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,105.90 | |||
Maturing in One Through Five Years [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 9.5 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,055.50 | |||
Maturing in One Through Five Years [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0.4 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 50.4 | |||
Maturing After Five Years Through Ten Years [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 28.7 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,332.90 | |||
Maturing After Five Years Through Ten Years [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 23.5 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,150.20 | |||
Maturing After Five Years Through Ten Years [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 5.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 182.7 | |||
Maturing in Greater Than Ten Years [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 21.4 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 617.2 | |||
Maturing in Greater Than Ten Years [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 14.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 464.4 | |||
Maturing in Greater Than Ten Years [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 7.2 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 152.8 | |||
Residential Mortgage Backed Securities [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 3.9 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 170.8 | |||
Residential Mortgage Backed Securities [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 3.9 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 170.8 | |||
Residential Mortgage Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 0 | |||
Commercial Mortgage Backed Securities [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1.6 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 250.5 | |||
Commercial Mortgage Backed Securities [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1.6 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 235.1 | |||
Commercial Mortgage Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 15.4 | |||
Other Asset-Backed Securities [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 6.5 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 394.4 | |||
Other Asset-Backed Securities [Member] | Supporting Remaining Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 6.5 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 394.4 | |||
Other Asset-Backed Securities [Member] | Supporting Discontinued And Experience Rated Products [Member] | Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $0 | |||
[1] | At December 31, 2014 and 2013, debt and equity securities in an unrealized capital loss position of $16.7 million and $60.3 million, respectively, and with related fair value of $402.7 million and $1.0 billion, respectively, related to experience-rated and discontinued products. |
Investments_Realized_Gains_Det
Investments - Realized Gains (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
OTTI Losses On Securities | ($4.60) | ($36.60) | ($10.90) |
Portion Of OTTI Losses Recognized In Other Comprehensive Income | 0 | 0 | 0.1 |
Net OTTI Losses On Securities Recognized In Earnings | -4.6 | -36.6 | -10.8 |
Net Realized Capital Gains Losses Excluding OTTI Losses On Securities | 85 | 27.8 | 119.5 |
Realized Investment Gains (Losses) | 80.4 | -8.8 | 108.7 |
Debt Securities [Member] | |||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
OTTI Losses On Securities | -33 | ||
Proceeds On Sales | 4,727.70 | 6,524.80 | 5,819.20 |
Gross Realized Capital Gains | 91.1 | 113.9 | 171.7 |
Gross Realized Capital Losses | $35.50 | $100 | $17.40 |
Investments_Mortgage_Loans_Det
Investments - Mortgage Loans (Details) (Commercial Real Estate [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
New mortgage loans | $217 | $195 |
Mortgage loans fully repaid | 133.7 | 222 |
Mortgage loans foreclosed | 0 | 8.5 |
Mortgage Loans on Real Estate | 1,562.20 | 1,549.60 |
Scheduled Mortgage Loan Principal Repayments [Abstract] | ||
2015 | 127.6 | |
2016 | 188.3 | |
2017 | 220.5 | |
2018 | 171.2 | |
2019 | 100.3 | |
Thereafter | 763 | |
Category 1 [Member] | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Mortgage Loans on Real Estate | 59.7 | 69.2 |
Category 2 to 4 [Member] | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Mortgage Loans on Real Estate | 1,443.40 | 1,399.60 |
Category 5 [Member] | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Mortgage Loans on Real Estate | 18.6 | 30.6 |
Categories 6 and 7 [Member] | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Mortgage Loans on Real Estate | $40.50 | $50.20 |
Investments_Variable_Interest_
Investments - Variable Interest Entities and non-controlling Interests (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||
Long-term investments | $22,193,900,000 | $20,935,000,000 | $22,193,900,000 | $20,935,000,000 | |||||||
Non-controlling interests | 69,200,000 | 52,700,000 | 69,200,000 | 52,700,000 | |||||||
Net (loss) income attributable to non-controlling interests | -2,200,000 | 4,300,000 | -1,600,000 | 3,900,000 | -100,000 | 400,000 | -2,800,000 | 800,000 | 4,400,000 | -1,700,000 | 1,900,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||
Long-term investments | 209,000,000 | 205,000,000 | 209,000,000 | 205,000,000 | |||||||
Real Estate Partnerships [Member] | |||||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||
Assets of variable interest entities | 5,700,000,000 | 5,800,000,000 | 5,700,000,000 | 5,800,000,000 | |||||||
Hedge Fund Partnerships [Member] | |||||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||
Assets of variable interest entities | $7,100,000,000 | $7,000,000,000 | $7,100,000,000 | $7,000,000,000 |
Investments_Investment_Income_
Investments - Investment Income (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||
Gross investment income | $985.40 | $954 | $956.80 | |||
Investment expenses | -39.5 | -37.7 | -34.6 | |||
Net Investment Income | 945.9 | [1] | 916.3 | [1] | 922.2 | [1] |
Debt Securities [Member] | ||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||
Gross investment income | 800.8 | 768.5 | 763.7 | |||
Mortgage Loans [Member] | ||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||
Gross investment income | 108.2 | 99.4 | 122.4 | |||
Other Investments [Member] | ||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||
Gross investment income | 76.4 | 86.1 | 70.7 | |||
Supporting Discontinued And Experience Rated Products [Member] | ||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||||
Net Investment Income | $289.10 | $293.50 | $324.20 | |||
[1] | Net investment income includes $289.1 million, $293.5 million and $324.2 million for 2014, 2013 and 2012, respectively, related to investments supporting our experience-rated and discontinued products. |
Other_Comprehensive_Loss_Incom2
Other Comprehensive (Loss) Income (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Comprehensive Income Loss [Line Items] | ||||||
Defined Benefit Plan Recognized Net Gain (Loss) Due to Settlements, Net of Tax | ($72.50) | $0 | $0 | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | -912.1 | |||||
Other Comprehensive Income (Loss) | -199.2 | 121.3 | 155.8 | |||
Balance at end of period | -1,111.30 | -912.1 | ||||
Pension settlement charge | -111.6 | [1] | 0 | 0 | ||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | ||||||
Comprehensive Income Loss [Line Items] | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0.9 | [2] | -47.2 | [2] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 34.2 | [2] | 57.3 | [2] | 58.2 | [2] |
Other Comprehensive Income (Loss) | 0.7 | [2] | -23.1 | -0.9 | [2] | |
Balance at end of period | 34.9 | [2] | 34.2 | [2] | 57.3 | [2] |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -0.2 | [2],[3] | 24.1 | [2],[3] | ||
Net Unrealized Gains (Losses) All Other Securities [Member] | ||||||
Comprehensive Income Loss [Line Items] | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 236.9 | -522.1 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 326.8 | 825.2 | 595.2 | |||
Other Comprehensive Income (Loss) | 241.2 | -498.4 | 230 | |||
Balance at end of period | 568 | 326.8 | 825.2 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 4.3 | [3] | 23.7 | [3] | ||
Net Unrealized Gains (Losses) Foreign Currency And Derivatives [Member] | ||||||
Comprehensive Income Loss [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -58.6 | 26.4 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 0.4 | -29.5 | -33.7 | |||
Other Comprehensive Income (Loss) | -61.3 | 29.9 | 4.2 | |||
Balance at end of period | -60.9 | 0.4 | -29.5 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | -2.7 | [4] | 3.5 | [4] | ||
Pension and OPEB Plan [Member] | ||||||
Comprehensive Income Loss [Line Items] | ||||||
Unrealized Net Losses Arising During Period Pretax | 739.4 | -869.3 | 189.8 | |||
Other comprehensive income, Pensions and Other Post Retirement Employee Benefit Plans, net of tax | -480.6 | 565.1 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | -1,273.50 | -1,886.40 | -1,808.90 | |||
Net unrealized gains (losses) | -480.6 | 565.1 | -123.4 | |||
Reclassification to earnings | -100.8 | -47.8 | -45.9 | |||
Other Comprehensive Income (Loss) | -379.8 | 612.9 | -77.5 | |||
Balance at end of period | -1,653.30 | -1,273.50 | -1,886.40 | |||
Pension and OPEB plans | 100.8 | [5] | 47.8 | [5] | ||
Other Comprehensive Income Loss Pretax Reclassification To Earnings | 155.2 | 73.6 | 70.6 | |||
Accumulated Other Comprehensive Loss [Member] | ||||||
Comprehensive Income Loss [Line Items] | ||||||
Other comprehensive income (loss), before reclassification | -301.4 | 22.2 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | -912.1 | -1,033.40 | -1,189.20 | |||
Reclassification to earnings | -102.2 | -99.1 | ||||
Other Comprehensive Income (Loss) | -199.2 | 121.3 | 155.8 | |||
Balance at end of period | -1,111.30 | -912.1 | -1,033.40 | |||
Unrecognized Net Actuarial Loss [Member] | Pension Plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | -1,263.90 | -1,863 | -1,778.30 | |||
Net unrealized gains (losses) | -460 | 550.1 | -130.4 | |||
Reclassification to earnings | 102.9 | 49 | 45.7 | |||
Balance at end of period | -1,621 | -1,263.90 | -1,863 | |||
Unrecognized Net Actuarial Loss [Member] | OPEB Plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | -29.9 | -46.4 | -56.3 | |||
Net unrealized gains (losses) | -20.6 | 15 | 7 | |||
Reclassification to earnings | -0.6 | -1.5 | -2.9 | |||
Balance at end of period | -49.9 | -29.9 | -46.4 | |||
Unrecognized Prior Service Costs [Member] | Pension Plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 0.9 | 1.2 | 1.5 | |||
Net unrealized gains (losses) | 0 | 0 | 0 | |||
Reclassification to earnings | -0.2 | -0.3 | -0.3 | |||
Balance at end of period | 0.7 | 0.9 | 1.2 | |||
Unrecognized Prior Service Costs [Member] | OPEB Plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Balance at beginning of period | 19.4 | 21.8 | 24.2 | |||
Net unrealized gains (losses) | 0 | 0 | 0 | |||
Reclassification to earnings | 2.5 | 2.4 | 2.4 | |||
Balance at end of period | 16.9 | 19.4 | 21.8 | |||
Pension Plan [Member] | ||||||
Comprehensive Income Loss [Line Items] | ||||||
Defined Benefit Plan Recognized Net Gain (Loss) Due to Settlements, Net of Tax | -72.5 | [1] | 0 | [1] | 0 | [1] |
Pension Plan [Member] | ||||||
Comprehensive Income Loss [Line Items] | ||||||
Defined Benefit Plan Recognized Net Gain (Loss) Due to Settlements, Net of Tax | -72.5 | [1],[6] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Pension settlement charge | ($111.60) | [1] | ||||
[1] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | |||||
[2] | Represents unrealized gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired security. | |||||
[3] | Reclassifications out of accumulated other comprehensive income for previously impaired debt securities and all other securities are reflected in net realized capital gains (losses) within the Consolidated Statements of Income. | |||||
[4] | Reclassifications out of accumulated other comprehensive income for foreign currency gains (losses) and derivatives are reflected in net realized capital gains (losses) within the Consolidated Statements of Income, except for the effective portion of derivatives related to interest rate swaps which are reflected in interest expense and were not material during 2014 or 2013. Refer to Note 14 of Notes to Consolidated Financial Statements beginning on page 123 for additional information. | |||||
[5] | Reclassifications out of accumulated other comprehensive income for pension and OPEB plan expenses are reflected in general and administrative expenses within the Consolidated Statements of Income. During 2014, our reclassifications out of accumulated other comprehensive income for the Aetna Pension Plan reflect a pension settlement charge of $72.5 million ($111.6 million pretax). (Refer to Note 11 beginning on page 109 for additional information). | |||||
[6] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan. We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 of Notes to Consolidated Financial Statements beginning on page 109 of the Annual Report for additional information on the pension settlement charge. |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value Measurements (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfers between Level 1 and Level 2 | $0 | $0 | ||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 21,441.70 | [1] | 19,730.40 | [1] |
Debt Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 21,421.80 | 19,669.10 | ||
US Government Agencies Debt Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,396.90 | 1,462.50 | ||
US States and Political Subdivisions Debt Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 4,809.40 | 4,162.30 | ||
Domestic Corporate Debt Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 8,606.40 | 7,942.60 | ||
Foreign Corporate Debt Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 3,592.30 | 3,355.50 | ||
Residential Mortgage Backed Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 927.7 | 924.2 | ||
Commercial Mortgage Backed Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,375.80 | 1,407 | ||
Other Asset-Backed Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 644 | 349.6 | ||
Redeemable Preferred Stock [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 69.3 | 65.4 | ||
Equity Securities [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 19.9 | 61.3 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Derivative Assets | 0 | 0 | ||
Assets, Fair Value Disclosure | 1,200.20 | 1,254.60 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Derivative Assets | 0.3 | 49.1 | ||
Assets, Fair Value Disclosure | 20,079.60 | 18,360.40 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Derivative liabilities | 53.4 | 1.9 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Derivative Assets | 0 | 0 | ||
Assets, Fair Value Disclosure | 162.2 | 164.5 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Derivative Assets | 0.3 | 49.1 | ||
Assets, Fair Value Disclosure | 21,442 | 19,779.50 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Derivative liabilities | 53.4 | 1.9 | ||
Fair Value, Measurements, Recurring | Debt Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,198.40 | 1,237.50 | ||
Fair Value, Measurements, Recurring | Debt Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 20,079.30 | 18,311.30 | ||
Fair Value, Measurements, Recurring | Debt Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 144.1 | 120.3 | ||
Fair Value, Measurements, Recurring | Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 21,421.80 | 19,669.10 | ||
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,198.40 | 1,237.50 | ||
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 198.5 | 225 | ||
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,396.90 | 1,462.50 | ||
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 4,808.20 | 4,161 | ||
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1.2 | 1.3 | ||
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 4,809.40 | 4,162.30 | ||
Fair Value, Measurements, Recurring | Domestic Corporate Debt Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Domestic Corporate Debt Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 8,548.20 | 7,911.40 | ||
Fair Value, Measurements, Recurring | Domestic Corporate Debt Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 58.2 | 31.2 | ||
Fair Value, Measurements, Recurring | Domestic Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 8,606.40 | 7,942.60 | ||
Fair Value, Measurements, Recurring | Foreign Corporate Debt Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Foreign Corporate Debt Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 3,560.70 | 3,311.60 | ||
Fair Value, Measurements, Recurring | Foreign Corporate Debt Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 31.6 | 43.9 | ||
Fair Value, Measurements, Recurring | Foreign Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 3,592.30 | 3,355.50 | ||
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 927.7 | 924.2 | ||
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 927.7 | 924.2 | ||
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,368.30 | 1,399.50 | ||
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 7.5 | 7.5 | ||
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1,375.80 | 1,407 | ||
Fair Value, Measurements, Recurring | Other Asset-Backed Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Other Asset-Backed Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 602.5 | 317.3 | ||
Fair Value, Measurements, Recurring | Other Asset-Backed Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 41.5 | 32.3 | ||
Fair Value, Measurements, Recurring | Other Asset-Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 644 | 349.6 | ||
Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 65.2 | 61.3 | ||
Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 4.1 | 4.1 | ||
Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 69.3 | 65.4 | ||
Fair Value, Measurements, Recurring | Brokered Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 126 | 103 | ||
Fair Value, Measurements, Recurring | Equity Securities [Member] | Level 1 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1.8 | 17.1 | ||
Fair Value, Measurements, Recurring | Equity Securities [Member] | Level 2 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring | Equity Securities [Member] | Level 3 | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | 18.1 | 44.2 | ||
Fair Value, Measurements, Recurring | Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Available-for-sale Securities, Fair Value Disclosure | $19.90 | $61.30 | ||
[1] | Investment risks associated with our experience-rated and discontinued products generally do not impact our operating results (refer to Note 20 beginning on page 135 for additional information on our accounting for discontinued products). At December 31, 2014, debt and equity securities with a fair value of approximately $3.6 billion, gross unrealized capital gains of $391.3 million and gross unrealized capital losses of $16.7 million and, at December 31, 2013, debt and equity securities with a fair value of approximately $3.7 billion, gross unrealized capital gains of $291.3 million and gross unrealized capital losses of $60.3 million were included in total debt and equity securities, but support our experience-rated and discontinued products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income. |
Financial_Instruments_Unobserv
Financial Instruments - Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers between Level 1 and Level 2 | $0 | $0 | ||
Gross transfers into level 3 | 1.9 | 3.8 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Transfers into (out of) Level 3 | -15.4 | -45.1 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | -17.3 | -48.9 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 164.5 | 195.8 | ||
Included in earnings | -4.7 | 3.6 | ||
Included in other comprehensive income | -27.4 | 10 | ||
Other | 4.3 | [1] | 12.1 | [1] |
Purchases | 75 | 89.5 | ||
Sales | -23.1 | -69.6 | ||
Settlements | -11 | -31.8 | ||
Transfers into (out of) Level 3 | -15.4 | -45.1 | ||
Ending balance | 162.2 | 164.5 | ||
Fair Value, Measurements, Recurring | Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 43.9 | 52.7 | ||
Included in earnings | -0.5 | 0.5 | ||
Included in other comprehensive income | 0.5 | -3.4 | ||
Other | 0.4 | [1] | -0.2 | [1] |
Purchases | 10.5 | 41.5 | ||
Sales | -12.4 | -27.2 | ||
Settlements | -1.1 | -5.4 | ||
Transfers into (out of) Level 3 | -9.7 | -14.6 | ||
Ending balance | 31.6 | 43.9 | ||
Fair Value, Measurements, Recurring | U.S. corporate securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 31.2 | |||
Included in earnings | -4 | |||
Included in other comprehensive income | -2 | |||
Other | -0.4 | [1] | ||
Purchases | 42.9 | |||
Sales | -1.5 | |||
Settlements | -2.3 | |||
Transfers into (out of) Level 3 | -5.7 | |||
Ending balance | 58.2 | |||
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 20.1 | |||
Included in earnings | 4 | |||
Included in other comprehensive income | -3.8 | |||
Other | 0 | [1] | ||
Purchases | 3.1 | |||
Sales | -2.5 | |||
Settlements | -10.4 | |||
Transfers into (out of) Level 3 | -3 | |||
Ending balance | 7.5 | |||
Fair Value, Measurements, Recurring | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 44.2 | 22.1 | ||
Included in earnings | -0.1 | 2.8 | ||
Included in other comprehensive income | -26 | 21.2 | ||
Other | 4.3 | [1] | 11.2 | [1] |
Purchases | 5 | 13 | ||
Sales | -9.2 | -26.1 | ||
Settlements | -0.1 | 0 | ||
Transfers into (out of) Level 3 | 0 | 0 | ||
Ending balance | 18.1 | 44.2 | ||
Fair Value, Measurements, Recurring | Commercial Mortgage-Back And Other Securities Member [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 45.2 | |||
Included in earnings | -0.1 | |||
Included in other comprehensive income | 0.1 | |||
Other | 0 | [1] | ||
Purchases | 16.6 | |||
Sales | 0 | |||
Settlements | -7.5 | |||
Transfers into (out of) Level 3 | 0 | |||
Ending balance | 54.3 | |||
Fair Value, Measurements, Recurring | Other [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 100.9 | |||
Included in earnings | -3.7 | |||
Included in other comprehensive income | -4 | |||
Other | 1.1 | [1] | ||
Purchases | 31.9 | |||
Sales | -13.8 | |||
Settlements | -16 | |||
Transfers into (out of) Level 3 | -27.5 | |||
Ending balance | 68.9 | |||
Separate Accounts Transfers [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gross transfers into Level 3, Separate Accounts | 0 | 0 | ||
Transfers between Level 1 and Level 2 | $0 | $0 | ||
[1] | Reflects realized and unrealized capital gains and losses on investments supporting our experience-rated and discontinued products, which do not impact our operating results. |
Financial_Instruments_Balance_
Financial Instruments - Balance Sheet Grouping (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Cost Method Investments | $34.90 | [1] | |
Fair Value, Measurements, Nonrecurring [Member] | Reported Value Measurement [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Mortgage loans | 1,562.20 | 1,549.60 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Investment contracts with a fixed maturity | 16.6 | 8.9 | |
Investment contracts without a fixed maturity | 557.5 | 572.3 | |
Long-term debt | 8,081.30 | 8,252.60 | |
Bank Loans, net | 231.2 | 181.7 | |
Fair Value, Measurements, Nonrecurring [Member] | Estimate of Fair Value Measurement [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Mortgage loans | 1,621.40 | 1,584.80 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Investment contracts with a fixed maturity | 16.6 | 8.9 | |
Investment contracts without a fixed maturity | 551.5 | 553.2 | |
Long-term debt | 8,764.80 | 8,670.60 | |
Bank Loans, Fair Value | 227 | 181.3 | |
Level 1 | Fair Value, Measurements, Nonrecurring [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Mortgage loans | 0 | 0 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Investment contracts with a fixed maturity | 0 | 0 | |
Investment contracts without a fixed maturity | 0 | 0 | |
Long-term debt | 0 | 0 | |
Bank Loans, Fair Value | 0 | 0 | |
Level 2 | Fair Value, Measurements, Nonrecurring [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Mortgage loans | 0 | 0 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Investment contracts with a fixed maturity | 0 | 0 | |
Investment contracts without a fixed maturity | 0 | 0 | |
Long-term debt | 8,764.80 | 8,670.60 | |
Bank Loans, Fair Value | 217.6 | 171.5 | |
Level 3 | Fair Value, Measurements, Nonrecurring [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Mortgage loans | 1,621.40 | 1,584.80 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Investment contracts with a fixed maturity | 16.6 | 8.9 | |
Investment contracts without a fixed maturity | 551.5 | 553.2 | |
Long-term debt | 0 | 0 | |
Bank Loans, Fair Value | $9.40 | $9.80 | |
[1] | It was not practical to estimate the fair value of these cost-method investments as it represents shares of unlisted companies. |
Financial_Instruments_Separate
Financial Instruments - Separate Accounts Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | $4,331.50 | $3,972.50 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 1,049.30 | [1] | 914.8 | [1] |
Fair Value, Measurements, Recurring | Level 2 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 3,074.90 | [1] | 2,941.50 | [1] |
Fair Value, Measurements, Recurring | Level 3 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 2.9 | [1] | 0.6 | [1] |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 4,127.10 | [1] | 3,856.90 | [1] |
Cash and Cash Equivalents [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 204.4 | 115.6 | ||
Debt Securities [Member] | Fair Value, Measurements, Recurring | Level 1 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 876 | 726.4 | ||
Debt Securities [Member] | Fair Value, Measurements, Recurring | Level 2 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 2,495 | 2,227 | ||
Debt Securities [Member] | Fair Value, Measurements, Recurring | Level 3 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 2.9 | 0.6 | ||
Debt Securities [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 3,373.90 | 2,954 | ||
Equity Securities [Member] | Fair Value, Measurements, Recurring | Level 1 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 173.3 | 188.4 | ||
Equity Securities [Member] | Fair Value, Measurements, Recurring | Level 2 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 5.7 | 3.3 | ||
Equity Securities [Member] | Fair Value, Measurements, Recurring | Level 3 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 0 | 0 | ||
Equity Securities [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 179 | 191.7 | ||
Derivatives [Member] | Fair Value, Measurements, Recurring | Level 1 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 0 | 0 | ||
Derivatives [Member] | Fair Value, Measurements, Recurring | Level 2 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 0.2 | 0.8 | ||
Derivatives [Member] | Fair Value, Measurements, Recurring | Level 3 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 0 | 0 | ||
Derivatives [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 0.2 | 0.8 | ||
Common/collective trusts | Fair Value, Measurements, Recurring | Level 1 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 0 | 0 | ||
Common/collective trusts | Fair Value, Measurements, Recurring | Level 2 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 574 | 710.4 | ||
Common/collective trusts | Fair Value, Measurements, Recurring | Level 3 | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | 0 | 0 | ||
Common/collective trusts | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
Separate Accounts Assets | $574 | $710.40 | ||
[1] | Excludes $204.4 million and $115.6 million of cash and cash equivalents and other receivables at December 31, 2014 and 2013, respectively. |
Financial_Instruments_Separate1
Financial Instruments - Separate Accounts Unobservable Inputs (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Gross transfers out of Level 3, Separate Accounts | $0.10 | $4.60 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers out of Level 3 | -15.4 | -45.1 |
Transfers between Level 1 and Level 2 | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 164.5 | 195.8 |
Total losses accrued to contract holders | -4.7 | 3.6 |
Purchases | 75 | 89.5 |
Sales | -23.1 | -69.6 |
Transfers out of Level 3 | -15.4 | -45.1 |
Ending balance | 162.2 | 164.5 |
Separate Accounts Transfers [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Gross transfers into Level 3, Separate Accounts | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers between Level 1 and Level 2 | $0 | $0 |
Financial_Instruments_Balance_1
Financial Instruments - Balance Sheet Offsetting (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Measurements, Recurring | ||||
Offsetting Assets [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | $0.30 | [1] | $49.10 | [1] |
Derivative assets, net of collateral received | 10.5 | 15.3 | ||
Fair Value, Measurements, Recurring | Derivative [Member] | ||||
Offsetting Assets [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 0.3 | [1] | 49.1 | [1] |
Derivative assets, net of collateral received | 10.5 | 15.3 | ||
Cash [Member] | ||||
Offsetting Assets [Line Items] | ||||
Cash collateral received | 0 | -47.1 | ||
Cash [Member] | Derivative [Member] | ||||
Offsetting Assets [Line Items] | ||||
Cash collateral received | 0 | -47.1 | ||
Financial Instruments [Member] | ||||
Offsetting Assets [Line Items] | ||||
Trading Securities Pledged as Collateral | 10.2 | 13.3 | ||
Financial Instruments [Member] | Derivative [Member] | ||||
Offsetting Assets [Line Items] | ||||
Trading Securities Pledged as Collateral | $10.20 | $13.30 | ||
[1] | There were no amounts offset in our balance sheets at December 31, 2014 or December 31, 2013. |
Financial_Instruments_Offsetti
Financial Instruments Offsetting Financial Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Offsetting Liabilities [Line Items] | ||||
Cash Collateral for Borrowed Securities | $826.90 | $792.60 | ||
Total Gross Liabilities Recognized Subject to Offsetting | 1,082 | [1] | 794.5 | [1] |
Derivative liabilities, net | 207 | 1.2 | ||
Repurchase Agreements [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral payable under repurchase agreements | -201.7 | |||
Repurchase agreement liability, net | 201.7 | |||
Securities Loaned or Sold under Agreements to Repurchase [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Securities loaned agreements, net amount | 0 | 0 | ||
Cash Collateral for Borrowed Securities | 826.9 | [1] | 792.6 | [1] |
Derivative [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Derivative Liability, Fair Value, Gross Liability | 53.4 | [1] | 1.9 | [1] |
Derivative liabilities | 5.3 | 1.2 | ||
Cash [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | -49 | -0.7 | ||
Cash [Member] | Repurchase Agreements [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral payable under repurchase agreements | 0 | |||
Cash [Member] | Securities Loaned or Sold under Agreements to Repurchase [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | 0 | 0 | ||
Cash [Member] | Derivative [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | -49 | -0.7 | ||
Financial Instruments [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | -826 | -792.6 | ||
Financial Instruments [Member] | Repurchase Agreements [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral payable under repurchase agreements | 0 | |||
Financial Instruments [Member] | Securities Loaned or Sold under Agreements to Repurchase [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral Payable Under Securities Loan Agreements | -826.9 | -792.6 | ||
Financial Instruments [Member] | Derivative [Member] | ||||
Offsetting Liabilities [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | $0.90 | $0 | ||
[1] | There were no amounts offset in our balance sheets at December 31, 2014 or December 31, 2013. |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Plans Defined Benefit Plans Obligations (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | ||
Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of pension plans sponsored by the company that provide benefits for our reired employees (in number of plans) | 2 | |||||
Voluntary contribution to the pension plan | $0 | $60 | $60 | |||
Pension settlement charge | -111.6 | [1] | 0 | 0 | ||
Minimum age of all current and future retirees and employees, who terminate employment, are eligible to participate in group health plans at their own cost. (in years of age) | 45 | |||||
Number of years service to be eligible to participate in group health plans at their own cost after retirement or termination. (in years) | 5 | |||||
Fair Value of Plan Assets [Roll Forward] | ||||||
Actual return on plan assets | 79.6 | 67.1 | ||||
Fair value of plan assets, end of year | 5,918.60 | [2] | 5,981 | [3] | ||
Funded status of pension and postretirement benefit plan [Abstract] | ||||||
Fair value of plan assets | 5,918.60 | [2] | 5,981 | [3] | ||
Defined contribution benefit savings plan [Abstract] | ||||||
Pension Plan Balance To Total Benefit Obligation | 96.00% | |||||
Weighted Average Discount Rate Pension Plan | 4.12% | 4.96% | ||||
Weighted Average Discount Rate Other postretirement plan | 4.02% | 4.73% | ||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accrued Benefit Assets | 0 | 425 | ||||
Defined Benefit Plan, Funded Status of Plan | -357.8 | 192.5 | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Service Cost | 0 | 0 | ||||
Interest cost | 288.3 | 271.5 | 298.4 | |||
Actuarial loss (gain) | 847.6 | -653.7 | ||||
Benefits Paid | -301.2 | -318.3 | ||||
Benefit obligation, end of year | -6,504.80 | -5,965.30 | -6,665.80 | |||
Fair Value of Plan Assets [Roll Forward] | ||||||
Actual return on plan assets | 562.2 | 589 | ||||
Employer contributions | 23.4 | 82.1 | ||||
Benefits Paid | -301.2 | -318.3 | ||||
Fair value of plan assets, end of year | 6,147 | 6,157.80 | 5,805 | |||
Funded status of pension and postretirement benefit plan [Abstract] | ||||||
Benefit obligation | -6,504.80 | -5,965.30 | -6,665.80 | |||
Fair value of plan assets | 6,147 | 6,157.80 | 5,805 | |||
Defined Benefit Plan Reconciliation Of Funded Status To Fair Value Of Assets Liabilities [Abstract] | ||||||
Unrecognized prior service credit | -1.2 | -1.6 | ||||
Unrecognized net actuarial losses | 2,493 | 1,943.50 | ||||
Amount recognized in accumulated other comprehensive loss | -2,491.80 | -1,941.90 | ||||
Liabilities recognized on the balance sheet of our pension and postretirement benefit plan [Abstract] | ||||||
Accrued benefit liabilities reflected in other current liabilities | -21.6 | -22.3 | ||||
Accrued benefit liabilities reflected in other long-term liabilities | -336.2 | -210.2 | ||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | -357.8 | 192.5 | ||||
Defined contribution benefit savings plan [Abstract] | ||||||
Unrecognized net actuarial losses | 2,493 | 1,943.50 | ||||
Unrecognized prior service credit | -1.2 | -1.6 | ||||
OPEB Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accrued Benefit Assets | 0 | 0 | ||||
Defined Benefit Plan, Funded Status of Plan | -218.7 | -199.8 | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Service Cost | 0.1 | 0.1 | ||||
Interest cost | 11.9 | 11.1 | 14.4 | |||
Actuarial loss (gain) | 30 | -22.5 | ||||
Benefits Paid | -25.7 | -20.2 | ||||
Benefit obligation, end of year | -277.2 | -260.9 | -292.4 | |||
Fair Value of Plan Assets [Roll Forward] | ||||||
Actual return on plan assets | 1.5 | 2.9 | ||||
Employer contributions | 21.6 | 16.3 | ||||
Benefits Paid | -25.7 | -20.2 | ||||
Fair value of plan assets, end of year | 58.5 | 61.1 | 62.1 | |||
Funded status of pension and postretirement benefit plan [Abstract] | ||||||
Benefit obligation | -277.2 | -260.9 | -292.4 | |||
Fair value of plan assets | 58.5 | 61.1 | 62.1 | |||
Defined Benefit Plan Reconciliation Of Funded Status To Fair Value Of Assets Liabilities [Abstract] | ||||||
Unrecognized prior service credit | -26.1 | -29.7 | ||||
Unrecognized net actuarial losses | 76.8 | 46.1 | ||||
Amount recognized in accumulated other comprehensive loss | -50.7 | -16.4 | ||||
Liabilities recognized on the balance sheet of our pension and postretirement benefit plan [Abstract] | ||||||
Accrued benefit liabilities reflected in other current liabilities | -14.5 | 0 | ||||
Accrued benefit liabilities reflected in other long-term liabilities | -204.2 | -199.8 | ||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | -218.7 | -199.8 | ||||
Defined contribution benefit savings plan [Abstract] | ||||||
Unrecognized net actuarial losses | 76.8 | 46.1 | ||||
Unrecognized prior service credit | -26.1 | -29.7 | ||||
Pension settlements paid [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Settlements paid | -295.2 | 0 | ||||
Fair Value of Plan Assets [Roll Forward] | ||||||
Settlements paid | -295.2 | 0 | ||||
Pension settlements paid [Member] | OPEB Plans [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Settlements paid | 0 | 0 | ||||
Fair Value of Plan Assets [Roll Forward] | ||||||
Settlements paid | 0 | 0 | ||||
Lump-sum distribution percentage [Member] | Pension Settlement Charge [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension Lump Sum Percentage | 100.00% | |||||
Scenario, Forecast [Member] | ||||||
Defined contribution benefit savings plan [Abstract] | ||||||
Expected amortization of net actuarial losses pension | 61 | |||||
Expected amortization of net actuarial losses other postretirement plan | 3 | |||||
Expected amortization of prior service credits other postretirement benefits | 4 | |||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension settlement charge | ($111.60) | [1] | ||||
[1] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | |||||
[2] | Excludes $228.4 million of cash and cash equivalents and other payables. | |||||
[3] | Excludes $176.8 million of cash and cash equivalents and other payables. |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Plans Defined Benefit Plans Periodic Benefit (Income) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Component Abstract | ||||
Pension settlement charge | ($111.60) | [1] | $0 | $0 |
Assumed healthcare cost trend rates for medical and prescription drug costs [Abstract] | ||||
Medical cost trend rate for the next fiscal year (Defined Benefit Plans) (in hundredths) | 8.50% | |||
Ultimate future medical cost trend rate beyond next fiscal year to 2023 (Defined Benefit Plans) (in hundredths) | 4.50% | |||
Prescription drug cost trend rate for the next fiscal year (Defined Benefit Plans) (in hundredths) | 8.50% | |||
Ultimate future prescription drug cost trend rate beyond next fiscal year to 2023 (Defined Benefit Plans) (in hundredths) | 4.50% | |||
Employer voluntary contributions in next fiscal year | 60 | |||
Pension Plan [Member] | ||||
Operating Component Abstract | ||||
Service Cost | 0 | 0 | ||
Service Cost | 0 | 0 | 0 | |
Amortization of prior service cost | -0.4 | -0.4 | -0.4 | |
Financing Component Abstract | ||||
Interest cost | 288.3 | 271.5 | 298.4 | |
Expected return on plan assets | -422.3 | -396.4 | -387.3 | |
Recognized net actuarial losses | 46.6 | 75.4 | 70.2 | |
Net periodic benefit cost (income) | 23.8 | -49.9 | -19.1 | |
Defined Benefit Plan, Plan Amendment [Abstract] | ||||
Employer Contributions | 23.4 | 82.1 | ||
Weighted average assumptions used to determine net periodic benefit cost (income) [Abstract] | ||||
Discount rate (in hundredths) | 4.96% | 4.17% | 4.98% | |
Expected long-term return on plan assets (in hundredths) | 7.00% | 7.00% | 7.50% | |
OPEB Plans [Member] | ||||
Operating Component Abstract | ||||
Service Cost | 0.1 | 0.1 | ||
Service Cost | 0 | 0.1 | 0.1 | |
Amortization of prior service cost | -3.6 | -3.7 | -3.7 | |
Financing Component Abstract | ||||
Interest cost | 11.9 | 11.1 | 14.4 | |
Expected return on plan assets | -3.1 | -2.4 | -2.7 | |
Recognized net actuarial losses | 1 | 2.3 | 4.5 | |
Net periodic benefit cost (income) | 6.2 | 7.4 | 12.6 | |
Defined Benefit Plan, Plan Amendment [Abstract] | ||||
Employer Contributions | 21.6 | 16.3 | ||
Weighted average assumptions used to determine net periodic benefit cost (income) [Abstract] | ||||
Discount rate (in hundredths) | 4.73% | 3.94% | 4.78% | |
Expected long-term return on plan assets (in hundredths) | 5.30% | 4.10% | 4.25% | |
Rate of increase in future compensation levels (in hundredths) | 0.00% | 0.00% | 0.00% | |
Assumed healthcare cost trend rates for medical and prescription drug costs [Abstract] | ||||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | 0.4 | |||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 10 | |||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 0.4 | |||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | 9 | |||
Pension Settlement Charge [Member] | Pension Plan [Member] | ||||
Financing Component Abstract | ||||
Pension settlement charge | 111.6 | 0 | 0 | |
Pension Settlement Charge [Member] | OPEB Plans [Member] | ||||
Financing Component Abstract | ||||
Pension settlement charge | 0 | 0 | 0 | |
Pension settlements paid [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements paid | -295.2 | 0 | ||
Pension settlements paid [Member] | OPEB Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements paid | $0 | $0 | ||
[1] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Plans Defined Benefit Plans Expected Benefit (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $348.70 |
2016 | 352.6 |
2017 | 357.9 |
2018 | 366.2 |
2019 | 367.7 |
2020-2024 | 1,890.50 |
OPEB Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 18.3 |
2016 | 18.1 |
2017 | 17.9 |
2018 | 17.8 |
2019 | 17.5 |
2020-2024 | $83.40 |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Plans Assets of the Aetna Pension Plan Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | $5,918.60 | [1] | $5,981 | [2] | |
Cash And Cash Equivalents And Other Payables Excluded From Total Investments Of The Pension Plan Assets | 228.4 | 176.8 | |||
Pension Plan [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 6,147 | 6,157.80 | 5,805 | ||
Pension Plan [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 2,411.40 | [1] | 2,687.20 | [2] | |
Pension Plan [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 2,564.30 | [1] | 2,400.10 | [2] | |
Pension Plan [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 942.9 | [1] | 893.7 | [2] | |
Pension Plan [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 2,402.70 | 2,272.70 | |||
Pension Plan [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 452.1 | 493.5 | |||
Pension Plan [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,948.60 | 1,779 | |||
Pension Plan [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 2 | 0.2 | |||
Pension Plan [Member] | Equity Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,964.80 | 2,196.60 | |||
Pension Plan [Member] | Equity Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,959.30 | 2,193.40 | |||
Pension Plan [Member] | Equity Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 5.5 | 3.1 | |||
Pension Plan [Member] | Equity Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0.1 | |||
Pension Plan [Member] | Real Estate [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 469.7 | 497.5 | |||
Pension Plan [Member] | Real Estate [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Real Estate [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Real Estate [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 469.7 | 497.5 | |||
Pension Plan [Member] | Other Assets [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 471.4 | 396.9 | |||
Pension Plan [Member] | Other Assets [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0.3 | |||
Pension Plan [Member] | Other Assets [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0.2 | 0.7 | |||
Pension Plan [Member] | Other Assets [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 471.2 | 395.9 | |||
Pension Plan [Member] | Other Investments [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,551.10 | 1,511.70 | |||
Pension Plan [Member] | Other Investments [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0.3 | |||
Pension Plan [Member] | Other Investments [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 610.2 | 618 | |||
Pension Plan [Member] | Other Investments [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 940.9 | 893.4 | |||
Pension Plan [Member] | US Treasury and Government [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 550.4 | 606.7 | |||
Pension Plan [Member] | US Treasury and Government [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 452.1 | 493.5 | |||
Pension Plan [Member] | US Treasury and Government [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 98.3 | 113.2 | |||
Pension Plan [Member] | US Treasury and Government [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | States, municipalities and political subdivisions [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 132.2 | 126.8 | |||
Pension Plan [Member] | States, municipalities and political subdivisions [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | States, municipalities and political subdivisions [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 132.2 | 126.8 | |||
Pension Plan [Member] | States, municipalities and political subdivisions [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | U.S. corporate securities [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,246.30 | 1,135.70 | |||
Pension Plan [Member] | U.S. corporate securities [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | U.S. corporate securities [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,244.80 | 1,135.70 | |||
Pension Plan [Member] | U.S. corporate securities [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1.5 | 0 | |||
Pension Plan [Member] | Foreign securities [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 161.5 | 148.2 | |||
Pension Plan [Member] | Foreign securities [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Foreign securities [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 161.5 | 148 | |||
Pension Plan [Member] | Foreign securities [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0.2 | |||
Pension Plan [Member] | Residential mortgage-backed securities [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 221.1 | 174.6 | |||
Pension Plan [Member] | Residential mortgage-backed securities [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Residential mortgage-backed securities [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 221.1 | 174.6 | |||
Pension Plan [Member] | Residential mortgage-backed securities [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Commercial mortgage-backed securities [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 50.7 | 44 | |||
Pension Plan [Member] | Commercial mortgage-backed securities [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Commercial mortgage-backed securities [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 50.2 | 44 | |||
Pension Plan [Member] | Commercial mortgage-backed securities [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0.5 | 0 | |||
Pension Plan [Member] | Other asset-backed securities [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 32.3 | 26.5 | |||
Pension Plan [Member] | Other asset-backed securities [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Other asset-backed securities [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 32.3 | 26.5 | |||
Pension Plan [Member] | Other asset-backed securities [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Redeemable Preferred Securities [Member] | Debt Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 8.2 | 10.2 | |||
Pension Plan [Member] | Redeemable Preferred Securities [Member] | Debt Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Redeemable Preferred Securities [Member] | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 8.2 | 10.2 | |||
Pension Plan [Member] | Redeemable Preferred Securities [Member] | Debt Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | US Domestic securities [Member] | Equity Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,249.30 | 1,345.60 | |||
Pension Plan [Member] | US Domestic securities [Member] | Equity Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 1,243.80 | 1,342.50 | |||
Pension Plan [Member] | US Domestic securities [Member] | Equity Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 5.5 | 3.1 | |||
Pension Plan [Member] | US Domestic securities [Member] | Equity Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | International [Member] | Equity Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 686.6 | 825.3 | |||
Pension Plan [Member] | International [Member] | Equity Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 686.6 | 825.2 | |||
Pension Plan [Member] | International [Member] | Equity Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | International [Member] | Equity Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0.1 | |||
Pension Plan [Member] | Common/collective trusts | Debt Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 272.6 | 261.2 | |||
Pension Plan [Member] | Common/collective trusts | Equity Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 337.4 | 356.1 | |||
Pension Plan [Member] | Common/collective trusts | Other Investments [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 610 | [3] | 617.3 | [4] | |
Pension Plan [Member] | Common/collective trusts | Other Investments [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | [3] | 0 | [4] | |
Pension Plan [Member] | Common/collective trusts | Other Investments [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 610 | [3] | 617.3 | [4] | |
Pension Plan [Member] | Common/collective trusts | Other Investments [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | [3] | 0 | [4] | |
Pension Plan [Member] | Domestic Real Estate [Member] | Equity Securities [Member] | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 28.9 | 25.7 | |||
Pension Plan [Member] | Domestic Real Estate [Member] | Equity Securities [Member] | Level 1 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 28.9 | 25.7 | |||
Pension Plan [Member] | Domestic Real Estate [Member] | Equity Securities [Member] | Level 2 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Plan [Member] | Domestic Real Estate [Member] | Equity Securities [Member] | Level 3 | |||||
Assets of the Aetna Pension Plan Fair Value [Line Items] | |||||
Fair value of plan assets | $0 | $0 | |||
[1] | Excludes $228.4 million of cash and cash equivalents and other payables. | ||||
[2] | Excludes $176.8 million of cash and cash equivalents and other payables. | ||||
[3] | The assets in the underlying funds of common/collective trusts are comprised of $337.4 million of equity securities and $272.6 million of debt securities. | ||||
[4] | The assets in the underlying funds of common/collective trusts are comprised of $356.1 million of equity securities and $261.2 million of debt securities. |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Plans Assets of the Aetna Pension Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Reconciliation Of Level 3 Plan Assets [Roll Forward] | |||
Beginning balance | $893.70 | $760.30 | |
Actual return on plan assets | 79.6 | 67.1 | |
Purchases, sales and settlements | -30.4 | 68 | |
Transfers Out Of Level 3 | -1.7 | ||
Ending balance | 942.9 | 893.7 | |
Pension Plan [Member] | |||
Defined Benefit Plan Reconciliation Of Level 3 Plan Assets [Roll Forward] | |||
Actual return on plan assets | 562.2 | 589 | |
Expected Return On Plan Assets [Abstract] | |||
Expected long-term return on plan assets (in hundredths) | 7.00% | 7.00% | 7.50% |
OPEB Plans [Member] | |||
Defined Benefit Plan Reconciliation Of Level 3 Plan Assets [Roll Forward] | |||
Actual return on plan assets | 1.5 | 2.9 | |
Expected Return On Plan Assets [Abstract] | |||
Defined Benefit Plan, Expected Percentage Return on Plan Assets | 4.25% | 5.30% | 4.10% |
Expected long-term return on plan assets (in hundredths) | 5.30% | 4.10% | 4.25% |
Debt Securities [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 48.00% | ||
Debt Securities [Member] | OPEB Plans [Member] | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Actual Allocation percentage (in hundredths) | 84.00% | 84.00% | |
Minimum target allocation (in hundredths) | 80.00% | 80.00% | |
Maximum target allocation (in hundredths) | 90.00% | 90.00% | |
Others [Member] | OPEB Plans [Member] | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Actual Allocation percentage (in hundredths) | 5.00% | 6.00% | |
Real Estate Investment [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 7.00% | ||
Real Estate Investment [Member] | OPEB Plans [Member] | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Minimum target allocation (in hundredths) | 0.00% | 0.00% | |
Maximum target allocation (in hundredths) | 10.00% | 10.00% | |
Private Equity Funds [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 4.00% | ||
Equity Securities [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 38.00% | ||
Equity Securities [Member] | OPEB Plans [Member] | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Actual Allocation percentage (in hundredths) | 11.00% | 10.00% | |
Minimum target allocation (in hundredths) | 5.00% | 5.00% | |
Maximum target allocation (in hundredths) | 15.00% | 15.00% | |
Real Estate [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Reconciliation Of Level 3 Plan Assets [Roll Forward] | |||
Beginning balance | 497.5 | 469 | |
Actual return on plan assets | 43.9 | 40.5 | |
Purchases, sales and settlements | -71.7 | -12 | |
Transfers Out Of Level 3 | 0 | ||
Ending balance | 469.7 | 497.5 | |
Other Assets [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Reconciliation Of Level 3 Plan Assets [Roll Forward] | |||
Beginning balance | 396.2 | 291.3 | |
Actual return on plan assets | 35.7 | 26.6 | |
Purchases, sales and settlements | 41.3 | 80 | |
Transfers Out Of Level 3 | -1.7 | ||
Ending balance | $473.20 | $396.20 | |
Hedge Funds [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 3.00% | ||
Minimum [Member] | Debt Securities [Member] | OPEB Plans [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 80.00% | 80.00% | |
Minimum [Member] | Others [Member] | OPEB Plans [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | 0.00% | |
Minimum [Member] | Equity Securities [Member] | OPEB Plans [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 5.00% | 5.00% | |
Maximum [Member] | Debt Securities [Member] | OPEB Plans [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 90.00% | 90.00% | |
Maximum [Member] | Others [Member] | OPEB Plans [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 10.00% | 10.00% | |
Maximum [Member] | Equity Securities [Member] | OPEB Plans [Member] | |||
Assets of the Aetna Pension Plan [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 15.00% | 15.00% |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Plans 401(k) Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Emplyer matching contributions during the period | $180 | $148 | $117 |
Number of shares of common stock held by the plan trustee for plan participants (in shares) | 8 | ||
Approximate number of shares of common stock reserved for issuance under the 401(k) plan (in shares) | 34 | ||
Aetna 401(K) [Member] | |||
Defined Contribution Pension And Other Postretirement Plans Employee Deferral Percentage Maximum Eligible For Employer Match | 6.00% | ||
100 percent match [Member] | Aetna 401(K) [Member] | |||
Employer match percentage on annual eligible employee earnings (in hundredths) | 100.00% | ||
100 percent match [Member] | Coventry 401(K) [Member] | |||
Employer match percentage on annual eligible employee earnings (in hundredths) | 100.00% | ||
50 percent match [Member] | Coventry 401(K) [Member] | |||
Employer match percentage on annual eligible employee earnings (in hundredths) | 50.00% | ||
Defined Contribution Pension And Other Postretirement Plans Employee Deferral Percentage Maximum Eligible For Employer Match | 3.00% |
Stockbased_Employee_Incentive_2
Stock-based Employee Incentive Plans (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
years | years | years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 263 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 35.80% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.74% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.36% | |||||
PSAR Minimum Vesting Amount | 0 | |||||
Outstanding, beginning of year | 10,500,000 | 19,400,000 | 26,300,000 | |||
Granted | 1,400,000 | 700,000 | [1] | 100,000 | ||
Exercised | 3,700,000 | 9,300,000 | 6,700,000 | |||
Expired or forfeited | 100,000 | 300,000 | 300,000 | |||
Outstanding, end of year | 8,100,000 | 10,500,000 | 19,400,000 | |||
Exercisable, end of year | 6,100,000 | 9,800,000 | 19,400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 34,000,000 | |||||
Maximum vesting percentage for stock options and stock appreciation rights (in hundredths) | 100.00% | |||||
Number Of Shares Common Stock Received For Each Stock Unit Granted | 1 | |||||
Maximum vesting percentage for restricted stock units (in hundredths) | 100.00% | |||||
Vesting Percentage For Market Stock Units Range Minimum | 0.00% | |||||
Vesting Percentage For Market Stock Units Range Maximum | 150.00% | |||||
Market Stock Unit Vesting Period | three | |||||
Minimum Vesting Percentage During Performance Period For Performance Stock Units | 0.00% | |||||
Maximum Vesting Percentage During Performance Period For Performance Stock Units | 200.00% | |||||
Status of Company's stock options and stock appreciation rights and changes during the year [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $42.86 | $41.77 | $39.34 | |||
WeightedAverageExercisePrice [Abstract] | ||||||
Stock options and stock appreciation rights outstanding at beginning of year weighted average exercise price (in dollars per share) | $43.27 | $39.34 | $35.18 | |||
Stock options and stock appreciation rights granted weighted average exercise price (in dollars per share) | $72.36 | $63.32 | $44.79 | |||
Stock options and stock appreciation rights exercised weighted average exercise price (in dollars per share) | $40.50 | $36.58 | $22.73 | |||
Stock options and stock appreciation rights forfeited weighted average exercise price (in dollars per share) | $46.94 | $47.11 | $43.02 | |||
Stock options and stock appreciation rights outstanding at end of period weighted average exercise price (in dollars per share) | $49.37 | $43.27 | $39.34 | |||
Weighted Average Remaining Contractual Life [Abstract] | ||||||
Stock options and stock appreciation rights outstanding at beginning of year weighted average remaining contractual life (in years) | 3.5 | 3.5 | 4 | |||
Stock options and stock appreciation rights outstanding at end of period weighted average remaining contractual life (in years) | 4.2 | 3.5 | 3.5 | |||
Stock options and stock appreciation rights exercisable at end of year weighted average remaining contractual life (in years) | 2.6 | 3 | 3.5 | |||
Aggregate Intrinsic Value [Abstract] | ||||||
Stock options and stock appreciation rights outstanding at beginning of year aggregate intrinsic value | $264,600,000 | $163,800,000 | $246,300,000 | |||
Stock options and stock appreciation rights exercised aggregate intrinsic value | 132,100,000 | 203,400,000 | 148,000,000 | |||
Stock options and stock appreciation rights outstanding at end of period aggregate intrinsic value | 318,300,000 | 264,600,000 | 163,800,000 | |||
Stock options and stock appreciation rights exercisable at end of year aggregate intrinsic value (in dollars per share) | 280,200,000 | 261,600,000 | 163,800,000 | |||
Assumptions used to calculate grant date fair value of PSARs [Abstract] | ||||||
Weighted-average per share value (PSARs) | $18.64 | |||||
Dividend yield PSARs (in hundredths) | 1.25% | |||||
Expected settlement period for PSARs | 6 years 44 days | |||||
Historical Volatility PSARs (in hundredths) | 40.40% | |||||
Risk Free Interest Rates PSARs (in hundredths) | 0.60% | |||||
Initial Price PSARs | 64.25 | |||||
Assumptions used to calculate the weighted-average fair value of options for market stock units [Abstract] | ||||||
Dividend yield market stock units (in hundredths) | 1.30% | 1.70% | ||||
Historical volatility market stock units (in hundredths) | 26.40% | 28.10% | ||||
Risk-free interest rates market stock units (in hundredths) | 0.70% | 0.40% | ||||
Initial Price for market stock units | 72.26 | 48.48 | ||||
Summary of the status of restricted stock units, market stock units, and performance stock units [Roll Forward] | ||||||
Outstanding restricted stock units, market stock units, and performance stock units at beginning of year (in shares) | 5,300,000 | 3,400,000 | 6,700,000 | |||
Restricted stock units, market stock units, and performance stock units during period - Granted (in shares) | 2,700,000 | 3,600,000 | 4,600,000 | |||
Restricted stock units, market stock units, and performance stock units - Vested (in shares) | -2,500,000 | -1,300,000 | -7,700,000 | |||
Restricted stock units, market stock units, and performance stock units - Forfeited (in shares) | -400,000 | -400,000 | -200,000 | |||
Outstanding restricted stock units, market stock units and performance stock units at end of year (in shares) | 5,100,000 | 5,300,000 | 3,400,000 | |||
Outstanding restricted stock units, market stock units, and performance stock units at beginning of year - weighted-average grant date fair value (in dollars per share) | $48.82 | $43.25 | $33.62 | |||
Restricted stock units, market stock units, and performance stock units - weighted-average grant date fair value - Granted (in dollars per share) | $71.88 | $51.22 | $43.71 | |||
Restricted stock units, market stock units, and performance stock units - weighted-average grant date fair value - Vested (in dollars per share) | $50.11 | $41.56 | $34.69 | |||
Restricted stock units, market stock units, and performance stock units - weighted-average grant date fair value - Forfeited (in dollars per share) | $56.89 | $46.65 | $37.37 | |||
Outstanding stock performance units and restricted stock units at end of year - weighted-average grant date fair value (in dollars per share) | $58.57 | $48.82 | $43.25 | |||
Activity under various plans [Abstract] | ||||||
Cash received from stock option exercises | 32,400,000 | 89,100,000 | 89,800,000 | |||
Intrinsic value of options and SARs exercised and stock units vested | 322,800,000 | 292,000,000 | 492,500,000 | |||
Tax benefits realized for the tax deductions from stock options and stock appreciation rights | 87,100,000 | 98,900,000 | 172,400,000 | |||
Fair value of stock options, stock appreciation rights and stock units vested | 106,700,000 | [2] | 52,100,000 | [2] | 273,400,000 | [2] |
Pretax share-based compensation expense in general and administrative expenses recorded | 164,000,000 | 127,000,000 | 122,000,000 | |||
Related tax benefits recorded | 37,000,000 | 35,000,000 | 32,000,000 | |||
Total unrecognized compensation costs related to stock options, stock appreciation rights, restricted stock units, market stock units and performance stock units | 174,000,000 | |||||
Weighted-average period unrecognized compensation costs related to stock options, stock appreciation rights, restricted stock units, market stock units and performance stock units is expected to be recognized (in years) | 1.7 | |||||
PSAR Maximum Vesting Amount | 700,000 | |||||
Share Price | $72.26 | |||||
Price Range $20.00-$30.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 100,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term (in years) | 3.2 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, End of Period (in dollars per share) | $25.62 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 2,900,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Number Of Outstanding Options | 100,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Weighted-Average Price | $25.62 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Aggregate Intrinsic Value | 2,900,000 | |||||
Price Range $30.00-$40.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 1,900,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term (in years) | 3.4 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, End of Period (in dollars per share) | $32.74 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 104,500,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Number Of Outstanding Options | 1,900,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Weighted-Average Price | $32.74 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Aggregate Intrinsic Value | 104,500,000 | |||||
Price Range $40.00-$50.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 2,000,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term (in years) | 2 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, End of Period (in dollars per share) | $43.92 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 91,200,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Number Of Outstanding Options | 2,000,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Weighted-Average Price | $43.92 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Aggregate Intrinsic Value | 91,200,000 | |||||
Price Range $50.00-$60.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 2,100,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term (in years) | 2.4 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, End of Period (in dollars per share) | $50.54 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 80,900,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Number Of Outstanding Options | 2,100,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Weighted-Average Price | $50.54 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Aggregate Intrinsic Value | 80,900,000 | |||||
Price Range $60.00-$70.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 700,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term (in years) | 8.6 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, End of Period (in dollars per share) | $64.25 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 17,200,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Number Of Outstanding Options | 0 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Weighted-Average Price | $0 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Aggregate Intrinsic Value | 0 | |||||
Price Range $70.00-$80.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 1,300,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term (in years) | 9 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, End of Period (in dollars per share) | $72.32 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 21,600,000 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Number Of Outstanding Options | 0 | [3] | ||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Weighted-Average Price | $72.26 | |||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Aggregate Intrinsic Value | 700,000 | |||||
Total $20.00 - $90.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 8,100,000 | [4] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term (in years) | 4.2 | [4] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, End of Period (in dollars per share) | $49.37 | [4] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 318,300,000 | [4] | ||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Number Of Outstanding Options | 6,100,000 | [4] | ||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Weighted-Average Price | $42.86 | [4] | ||||
Share Based Compensation Shares Exercisable Under Stock Options And Stock Appreciation Rights Plans Exercise Price Range Aggregate Intrinsic Value | 280,200,000 | [4] | ||||
Price Range $80.00-$90.00 | ||||||
Aggregate Intrinsic Value [Abstract] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 0 | |||||
Two year vesting period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Market Stock Unit Vesting Period | two | |||||
Assumptions used to calculate the weighted-average fair value of options for market stock units [Abstract] | ||||||
Dividend yield market stock units (in hundredths) | 1.60% | |||||
Historical volatility market stock units (in hundredths) | 31.20% | |||||
Risk-free interest rates market stock units (in hundredths) | 0.20% | |||||
Initial Price for market stock units | 44.79 | |||||
Activity under various plans [Abstract] | ||||||
Weighted average per share fair value of market stock units granted (in dollars per share) | $46.36 | |||||
Three year vesting period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Market Stock Unit Vesting Period | three | |||||
Assumptions used to calculate the weighted-average fair value of options for market stock units [Abstract] | ||||||
Dividend yield market stock units (in hundredths) | 1.60% | |||||
Historical volatility market stock units (in hundredths) | 37.50% | |||||
Risk-free interest rates market stock units (in hundredths) | 0.30% | |||||
Initial Price for market stock units | $44.79 | |||||
Activity under various plans [Abstract] | ||||||
Weighted average per share fair value of market stock units granted (in dollars per share) | $74.99 | $49.31 | $46.84 | |||
Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $22.68 | |||||
PSUs granted in 2012 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of original number of performance stock units original granted in period which vested in period | 119.12% | 81.67% | ||||
PSUs granted in 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of original number of performance stock units original granted in period which vested in period | 100.00% | 127.08% | ||||
[1] | PSARs are included in this table at the maximum amount that could potentially vest. | |||||
[2] | The fair value represents the total dollar value of the stock options, SARs and stock units as of the respective grant dates. | |||||
[3] | The number of exercisable stock options, SARs and PSARs with exercise prices between $70 and $80 rounded to zero. | |||||
[4] | The number of outstanding stock options, SARs and PSARs with exercise prices between $80 and $90 rounded to zero. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Current taxes: [Abstract] | |||||||||||||||
Federal | $1,233 | $901.90 | $731.50 | ||||||||||||
State | 84 | 55.7 | 48.4 | ||||||||||||
Total current taxes | 1,317 | 957.6 | 779.9 | ||||||||||||
Deferred taxes (benefits): [Abstract] | |||||||||||||||
Federal | 114.1 | 63 | 112.8 | ||||||||||||
State | 23.6 | 8 | -5.2 | ||||||||||||
Total deferred income taxes | 137.7 | 71 | 107.6 | ||||||||||||
Income taxes | 198.9 | 398.1 | 377.4 | 480.3 | 166.6 | 287.7 | 314.5 | 259.8 | 1,454.70 | 1,028.60 | 887.5 | ||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 428.7 | 996.9 | 924.6 | 1,149.70 | 535.4 | 806.7 | 847.7 | 750.7 | 3,499.90 | 2,940.50 | 2,547.30 | ||||
Tax rate | 35.00% | 35.00% | 35.00% | ||||||||||||
Application of the tax rate | 1,225 | 1,029.20 | 891.6 | ||||||||||||
Tax effect of: [Abstract] | |||||||||||||||
Health insurer fee | 211.9 | 0 | 0 | ||||||||||||
State income taxes | 78.2 | 44.2 | 26.3 | ||||||||||||
Other, net | -60.4 | -44.8 | -30.4 | ||||||||||||
Income taxes | 198.9 | 398.1 | 377.4 | 480.3 | 166.6 | 287.7 | 314.5 | 259.8 | 1,454.70 | 1,028.60 | 887.5 | ||||
Deferred tax assets: [Abstract] | |||||||||||||||
Employee and postretirement benefits | 290.9 | 130.9 | 290.9 | 130.9 | |||||||||||
Insurance reserves | 252.9 | 237.4 | 252.9 | 237.4 | |||||||||||
Reserve for anticipated future losses on discontinued products | 199.1 | 225.2 | 199.1 | 225.2 | |||||||||||
Net operating losses | 195.3 | 176.2 | 195.3 | 176.2 | |||||||||||
Investments, net | 68.3 | 76 | 68.3 | 76 | |||||||||||
Debt fair value adjustment | 43.4 | 62 | 43.4 | 62 | |||||||||||
Severance and facilities | 9.9 | 30.1 | 9.9 | 30.1 | |||||||||||
Deferred policy acquisition costs | 9.2 | 21.9 | 9.2 | 21.9 | |||||||||||
Litigation-related settlement | 6 | 43.5 | 6 | 43.5 | |||||||||||
Other | 94.9 | 106.3 | 94.9 | 106.3 | |||||||||||
Gross deferred tax assets | 1,169.90 | 1,109.50 | 1,169.90 | 1,109.50 | |||||||||||
Less: Valuation allowance | 147.9 | 139.3 | 147.9 | 139.3 | |||||||||||
Deferred tax assets, net of valuation allowance | 1,022 | 970.2 | 1,022 | 970.2 | |||||||||||
Deferred tax liabilities: [Abstract] | |||||||||||||||
Goodwill and other acquired intangible assets | 868.4 | 861.9 | 868.4 | 861.9 | |||||||||||
Unrealized gains on investment securities | 291.5 | 192.8 | 291.5 | 192.8 | |||||||||||
Cumulative depreciation and amortization | 286.6 | 258.2 | 286.6 | 258.2 | |||||||||||
Total gross deferred tax liabilities | 1,446.50 | 1,312.90 | 1,446.50 | 1,312.90 | |||||||||||
Net deferred tax assets | -424.5 | [1] | -342.7 | [1] | -424.5 | [1] | -342.7 | [1] | |||||||
Classified as current assets | 443 | 521.5 | 443 | 521.5 | |||||||||||
Classified as long-term liabilities | 867.5 | 864.2 | 867.5 | 864.2 | |||||||||||
Net income taxes paid | $1,600 | $891 | $741 | ||||||||||||
[1] | Includes $443.0 million and $521.5 million classified as current assets at December 31, 2014 and 2013, respectively. Includes $867.5 million and $864.2 million classified as long-term liabilities at December 31, 2014 and 2013, respectively. |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | |||||
Long-term Debt, Current Maturities | $229,300,000 | [1] | $387,300,000 | [1] | |
Long-term debt, less current portion | 7,852,000,000 | 7,865,300,000 | |||
Long-term debt | 8,081,300,000 | 8,252,600,000 | |||
Proceeds from Issuance of Long-term Debt | 1,482,400,000 | 0 | 2,664,800,000 | ||
Interest paid | 379,000,000 | 364,000,000 | 242,000,000 | ||
Federal Home Loan Bank Maximum Borrowing Capacity | 882,000,000 | ||||
Debt Instrument, Repurchased Face Amount | 200,000,000 | ||||
Loss on early extinguishment of long-term debt, net of tax | -117,800,000 | 0 | -55,200,000 | ||
Gains (Losses) on Extinguishment of Debt | -181,200,000 | 0 | -84,900,000 | ||
Commercial Paper | 500,000,000 | 0 | |||
Federal Home Loan Bank Advances | 0 | ||||
Senior Notes, 6.3%, due 2014 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Current Maturities | 0 | [2] | 387,300,000 | [2] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.30% | 6.30% | |||
Senior Notes, 6.125%, Due 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 229,300,000 | 240,600,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | 6.13% | |||
Senior Notes, 6.0%, Due 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 748,900,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||
Early Repayment of Senior Debt | 750,000,000 | ||||
Loss on early extinguishment of long-term debt, net of tax | -59,700,000 | ||||
Gains (Losses) on Extinguishment of Debt | -91,900,000 | ||||
Senior Notes, 5.95%, Due 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 418,300,000 | 434,200,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |||
Senior Notes, 1.75%, Due 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 249,200,000 | 248,900,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | 1.75% | |||
Senior Notes, 1.5%, Due 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 498,600,000 | 498,200,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | |||
Senior Notes, 6.5%, Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 494,900,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |||
Early Repayment of Senior Debt | 495,600,000 | ||||
Loss on early extinguishment of long-term debt, net of tax | -58,100,000 | ||||
Gains (Losses) on Extinguishment of Debt | -89,300,000 | ||||
Senior Notes, 2.2%, Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 374,700,000 | 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.20% | 2.20% | |||
Proceeds from Issuance of Long-term Debt | 375,000,000 | ||||
Senior Notes, 3.95%, Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 745,200,000 | 744,300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | |||
Senior Notes, 5.45%, Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 688,600,000 | 702,300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.45% | 5.45% | |||
Senior Notes, 4.125%, Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 495,500,000 | 494,800,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.13% | 4.13% | |||
Senior Notes, 2.75%, Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 986,800,000 | 985,100,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | 2.75% | |||
Senior notes, 3.5%, due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 746,900,000 | 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||
Proceeds from Issuance of Long-term Debt | 750,000,000 | ||||
Senior Notes, 6.625%, Due 2036 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 769,800,000 | 769,800,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.63% | 6.63% | |||
Senior Notes, 6.75%, Due 2037 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 530,700,000 | 530,600,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | 6.75% | |||
Senior Notes, 4.5% due 2042 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 480,800,000 | 480,100,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |||
Senior Notes, 4.125%, Due 2042 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 492,800,000 | 492,600,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.13% | 4.13% | |||
Senior Notes, 4.75%, Due 2044 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 374,100,000 | 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | |||
Proceeds from Issuance of Long-term Debt | 375,000,000 | ||||
Debt refinance [Domain] | |||||
Debt Instrument [Line Items] | |||||
Number of Interest Rate Derivatives Held | 2 | ||||
April 2014 Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Cost of Hedge Net of Cash Received | 15,200,000 | ||||
Gain on Cash Flow Hedge Ineffectiveness | 3,000,000 | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 12,000,000 | ||||
Derivative, Notional Amount | 250,000,000 | ||||
2012 Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Cost of Hedge Net of Cash Received | -34,200,000 | ||||
Gain on Cash Flow Hedge Ineffectiveness | 12,000,000 | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -22,000,000 | ||||
Derivative, Notional Amount | 375,000,000 | ||||
March 2014 Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Notional Amount | 500,000,000 | ||||
Interest Rate Cash Flow Hedge Liability at Fair Value | $53,200,000 | ||||
[1] | At December 31, 2014, our 6.125% senior notes due January 2015 are classified as current in the accompanying consolidated balance sheet. | ||||
[2] | The 6.3% senior notes were repaid in August 2014. These notes were classified as current in the consolidated balance sheet at December 31, 2013. |
Debt_Shortterm_Debt_Details
Debt - Short-term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Commercial Paper | $500 | $0 |
Short-term Debt, Weighted Average Interest Rate | 0.30% |
Debt_Line_of_Credit_Details
Debt - Line of Credit (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |
Line Of Credit Facility Interest Rate Under Agreement Maximum | 0.15% |
Unsecured revolving credit agreement | $1,500,000,000 |
Debt Instrument, Unused Borrowing Capacity, Amount | 2,000,000,000 |
Maximum Amount Of Letters Of Credit Issuable | 200,000,000 |
Line Of Credit Facility Interest Rate Under Agreement Minimum | 0.07% |
Facility fee (in hundredths) | 0.10% |
Level the debt to capitalization must be below under the facility agreement | 50.00% |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit agreement | $2,500,000,000 |
Capital_Stock_Repurchases_Deta
Capital Stock - Repurchases (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity, Class of Treasury Stock [Line Items] | ||||
Amount of repurchases under the program | $1,218.10 | $1,407.70 | $1,417.50 | |
Repurchase authorizations remaining at period end | 1,379 | 597 | 504.7 | |
July Accelerated Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | 100 | |||
Number of shares purchased (in shares) | 1.2 | |||
October Accelerated Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | 100 | |||
Number of shares purchased (in shares) | 1.3 | |||
January/February Accelerated Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | 150 | |||
Number of shares purchased (in shares) | 1.6 | |||
Authorization Date November 2014 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases not to exceed | 1,000 | |||
Number of shares purchased (in shares) | 0 | 0 | 0 | |
Amount of repurchases under the program | 0 | 0 | 0 | |
Authorization Date February 2014 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases not to exceed | 1,000 | |||
Number of shares purchased (in shares) | 7.6 | 0 | 0 | |
Amount of repurchases under the program | 621 | 0 | 0 | |
Authorization Date September 2013 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases not to exceed | 750 | |||
Number of shares purchased (in shares) | 8.3 | 2.3 | 0 | |
Amount of repurchases under the program | 597 | 153 | 0 | |
Authorization Date February 2013 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases not to exceed | 750 | |||
Number of shares purchased (in shares) | 0 | 11.6 | 0 | |
Amount of repurchases under the program | 0 | 750 | 0 | |
Authorization Date July 2012 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases not to exceed | 750 | |||
Number of shares purchased (in shares) | 0 | 9.1 | 5.3 | |
Amount of repurchases under the program | 0 | 504.7 | 245.3 | |
Authorization Date February 2012 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases not to exceed | 750 | |||
Number of shares purchased (in shares) | 0 | 0 | 17.8 | |
Amount of repurchases under the program | 0 | 0 | 750 | |
Authorization Date September 2011 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases not to exceed | 750 | |||
Number of shares purchased (in shares) | 0 | 0 | 9.2 | |
Amount of repurchases under the program | 0 | 0 | 422.2 | |
Total Repurchases [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares purchased (in shares) | 15.9 | 23 | 32.3 | |
Amount of repurchases under the program | $1,218 | $1,407.70 | $1,417.50 |
Capital_Stock_Dividends_Detail
Capital Stock - Dividends (Details) (USD $) | 3 Months Ended | |||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Nov. 21, 2014 | Sep. 19, 2014 | 30-May-14 | Feb. 28, 2014 | Dec. 06, 2013 | Sep. 27, 2013 | 17-May-13 | Feb. 19, 2013 |
Dividends Payable [Line Items] | ||||||||||||||||
Total Dividends | $87.50 | $79 | $79.60 | $80.40 | $81.60 | $73.50 | $74.40 | $65.30 | ||||||||
Dividends Amount Per Share | $0.25 | $0.23 | $0.23 | $0.23 | $0.23 | $0.20 | $0.20 | $0.20 | $0.25 | $0.23 | $0.23 | $0.23 | $0.23 | $0.20 | $0.20 | $0.20 |
Capital_Stock_Stock_Units_Deta
Capital Stock - Stock Units (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||
Number Of Undesignated Shares Available (in shares) | 439 | |
Preferred Class A [Member] | ||
Class of Stock [Line Items] | ||
Number of authorized Class A voting preferred stock (in shares) | 8 | |
Number of authorized Class A voting preferred stock, par value per share (in dollars per shares) | $0.01 |
Dividend_Restrictions_and_Stat2
Dividend Restrictions and Statutory Surplus (Details) (Insurance and HMO [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Insurance and HMO [Member] | |||
Dividend Restrictions and Statutory Surplus [Line Items] | |||
Dividends available | $2,200,000,000 | ||
Proceeds from dividends received | 1,200,000,000 | ||
Statutory net income | 2,126,600,000 | 1,750,100,000 | 1,813,700,000 |
Statutory capital and surplus | $9,405,800,000 | $8,431,000,000 | $6,372,800,000 |
Reinsurance_Details
Reinsurance (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
years | |||
reinsurers | |||
Reinsurance Disclosures [Abstract] | |||
Reversal of allowance reinsurance recoverable | $42.20 | ||
Reinsurance recoveries | 189 | 110 | 98 |
Total reinsurance recoverables | 1,200 | 793 | 919 |
Carrying value of reinsurance recoverables associated with number of reinsurers | 706 | ||
Number of reinsurers with reinsurance recoverables | 2 | ||
Reinsurance Recoverable Under Health Care Reform | 338 | ||
Three Years Reinsurance Agreement With Unrelated Insurer | 3 | ||
Five Years Reinsurance Agreement With Unrelated Insurer | 5 | ||
Collateralized Excess Of Loss On Reinsurance Coverage | 500 | 690 | 540 |
Establishment of allowance on reinsurance recoverable, net of tax | 27.4 | ||
Reversal of allowance reinsurance recoverable | 42.2 | ||
Reversal of allowance on reinsurance recoverable net of tax | 27.4 | ||
Gain on sale of reinsurance recoverable, net of tax | 4.7 | ||
Gain on sale of reinsurance recoverable | $7.20 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Aggregate maximum exposures under Administrative Services Contracts to banks for funding claims paid to customers | $250,000,000 | ||
Contractual obligations to maintain the required level of separate account assets for specific pensions annuities | 2,200,000,000 | ||
Supplier agreement, minimum volume commitment | 136,000,000 | ||
Litigation Settlement, Expense | 120,000,000 | ||
Rental expenses for operating leases of office space and certain computer and other equipment | 177,000,000 | 170,000,000 | 142,000,000 |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2015 | 139,000,000 | ||
2016 | 103,000,000 | ||
2017 | 74,000,000 | ||
2018 | 56,000,000 | ||
2019 | 39,000,000 | ||
Funding Requirements For Partnerhips Investments And Commercial Mortgage Loans [Abstract] | |||
2015 | 132,000,000 | ||
2016 | 87,000,000 | ||
2017 | 55,000,000 | ||
2018 | 33,000,000 | ||
2019 | 22,000,000 | ||
Settlement of class action litigation, after-tax | 0 | 0 | 78,000,000 |
Release of litigation-related reserve, pre-tax | 103,000,000 | ||
Charges for changes in our life claim payments practices, net of tax | 0 | 35,700,000 | 0 |
Charge for changes in our life claim payment practices | $55,000,000 |
Segment_Reporting_Information_
Segment Reporting Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Transaction, integration-related and restructuring charges, net of tax | $134.20 | $233.50 | $25.40 | |||||||||||||
Loss on early extinguishment of long-term debt, net of tax | -117.8 | 0 | -55.2 | |||||||||||||
Litigation Settlement, Expense | 120 | |||||||||||||||
Group annuity contract conversion premium | 0 | [1] | 99 | [1] | 941.4 | [1] | ||||||||||
Benefit expense on group annuity contract conversion | 0 | 99 | 941.4 | |||||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||||||||||
Revenue from external customers | 56,976.90 | [2],[3] | 46,387.10 | [2],[3] | 35,568.90 | [2],[3] | ||||||||||
Net investment income | 945.9 | 916.3 | 922.2 | |||||||||||||
Interest expense | 329.3 | 333.7 | 268.8 | |||||||||||||
Depreciation and amortization expense | 629 | 569.1 | 449.9 | |||||||||||||
Income taxes | 198.9 | 398.1 | 377.4 | 480.3 | 166.6 | 287.7 | 314.5 | 259.8 | 1,454.70 | 1,028.60 | 887.5 | |||||
Operating earnings (loss) | 2,404.60 | [4],[5] | 2,241.10 | [4],[5] | 1,861.90 | [4],[5] | ||||||||||
Segment assets | 53,402.10 | 49,764.80 | 53,402.10 | 49,764.80 | 41,387.50 | |||||||||||
Settlement of class action litigation, after-tax | 0 | 0 | 78 | |||||||||||||
Health Care [Member] | ||||||||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||||||||||
Revenue from external customers | 54,676.60 | 44,085.20 | 32,608.90 | |||||||||||||
Net investment income | 367.6 | 309.3 | 310.4 | |||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||||
Depreciation and amortization expense | 627.8 | 564.7 | 445.5 | |||||||||||||
Income taxes | 1,587.20 | 1,078.40 | 950.5 | |||||||||||||
Operating earnings (loss) | 2,376.50 | [4] | 2,267.40 | [4] | 1,841.50 | [4] | ||||||||||
Segment assets | 36,614.70 | 33,212.90 | 36,614.70 | 33,212.90 | 24,138.90 | |||||||||||
Group Insurance [Member] | ||||||||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||||||||||
Revenue from external customers | 2,214.20 | 2,053.30 | 1,842 | |||||||||||||
Net investment income | 261.2 | 286.6 | 282.8 | |||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||||
Depreciation and amortization expense | 1.2 | 4.4 | 4.4 | |||||||||||||
Income taxes | 57.4 | 32.3 | 62.3 | |||||||||||||
Operating earnings (loss) | 171 | [4] | 130.9 | [4] | 164.4 | [4] | ||||||||||
Segment assets | 5,510.80 | 5,520.30 | 5,510.80 | 5,520.30 | 5,697.50 | |||||||||||
Large Case Pension [Member] | ||||||||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||||||||||
Revenue from external customers | 86.1 | [1] | 248.6 | [1] | 1,118 | [1] | ||||||||||
Net investment income | 317.1 | [1] | 320.4 | [1] | 329 | [1] | ||||||||||
Interest expense | 0 | [1] | 0 | [1] | 0 | [1] | ||||||||||
Depreciation and amortization expense | 0 | [1] | 0 | [1] | 0 | [1] | ||||||||||
Income taxes | 0.7 | [1] | 21.8 | [1] | -2.4 | [1] | ||||||||||
Operating earnings (loss) | 20.7 | [1],[4] | 21.2 | [1],[4] | 17.8 | [1],[4] | ||||||||||
Segment assets | 11,276.60 | [1] | 11,031.60 | [1] | 11,276.60 | [1] | 11,031.60 | [1] | 11,551.10 | [1] | ||||||
Corporate Financing [Member] | ||||||||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||||||||||||
Revenue from external customers | 0 | 0 | 0 | |||||||||||||
Net investment income | 0 | 0 | 0 | |||||||||||||
Interest expense | 329.3 | 333.7 | 268.8 | |||||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | |||||||||||||
Income taxes | -190.6 | -103.9 | -122.9 | |||||||||||||
Operating earnings (loss) | -163.6 | [4] | -178.4 | [4] | -161.8 | [4] | ||||||||||
Segment assets | $0 | $0 | $0 | $0 | $0 | |||||||||||
[1] | In 2013 and 2012, pursuant to contractual rights exercised by the contract holders, certain existing group annuity contracts converted from participating to non-participating contracts. Upon conversion, we recorded $99.0 million and $941.4 million of non-cash group annuity conversion premium for these contracts and a corresponding $99.0 million and $941.4 million non-cash benefit expense on group annuity conversion for these contracts during 2013 and 2012, respectively. | |||||||||||||||
[2] | All within the U.S., except approximately $1.2 billion, $886 million and $775 million in 2014, 2013 and 2012, respectively, which were derived from foreign customers. | |||||||||||||||
[3] | Revenue from the U.S. federal government was approximately $15.5 billion, $12.2 billion and $7.4 billion in 2014, 2013 and 2012, respectively, in the Health Care and Group Insurance segments. These amounts exceeded 10 percent of our total revenue from external customers in each of 2014, 2013 and 2012. | |||||||||||||||
[4] | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation on page 134. | |||||||||||||||
[5] | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance:•We incurred transaction and integration-related costs of $134.2 million ($200.7 million pretax) related to the acquisitions of Coventry, bSwift and InterGlobal during 2014. We incurred transaction, integration-related and restructuring costs of $233.5 million ($332.8 million pretax) and $25.4 million ($32.6 million pretax) during 2013 and 2012, related to the acquisition of Coventry, respectively. Restructuring costs, primarily comprised of severance and real estate consolidation costs, are related to the acquisition of Coventry and our expense management and cost control initiatives. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Acquisition Date, that negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings.•In 2014 and 2012, we incurred losses on the early extinguishment of long-term debt of $117.8 million ($181.2 million pretax) and $55.2 million ($84.9 million pretax) related to the redemption and/or repurchase of certain of our outstanding senior notes, respectively.•During 2014, we enhanced the Aetna Pension Plan to allow certain current and former employees to elect a 100% lump-sum distribution. In addition, we also announced a limited-time offer permitting certain former employees with deferred vested balances to elect a 100% lump-sum distribution. The distributions in 2014 were funded from existing Aetna Pension Plan assets and we recorded a related non-cash settlement charge of $72.5 million ($111.6 million pretax) during 2014 in general and administrative expenses. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. •In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 18 beginning on page 127 for additional information on the termination of the settlement agreement.•In the fourth quarter of 2013, we increased our estimated liability for unpaid life insurance claims with respect to insureds who passed away on or before December 31, 2013, and recorded in current and future benefits a charge of $35.7 million ($55.0 million pretax) as a result of changes during the fourth quarter of 2013 in our life insurance claim payment practices (including related escheatment practices) based on evolving industry practices and regulatory expectations and interpretations. Refer to Note 18 beginning on page 127 for additional information on the changes in our life insurance claim payment practices. •We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 20 beginning on page 135 for additional information on the reduction of the reserve for anticipated future losses on discontinued products.•In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In 2013, we sold our claim against Lehman Re to an unrelated third party (including the reinsurance recoverable) and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we reversed the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue.•In 2012, we recorded a severance charge of $24.1 million ($37.0 million pretax) related to actions taken in 2012 and 2013. |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Operating Earnings (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Gain on sale of reinsurance recoverable, net of tax | $4.70 | |||||||||||||
Loss on early extinguishment of long-term debt | 181.2 | 0 | 84.9 | |||||||||||
Segment Reconciliation [Abstract] | ||||||||||||||
Operating earnings | 2,404.60 | [1],[2] | 2,241.10 | [1],[2] | 1,861.90 | [1],[2] | ||||||||
Transaction, integration-related and restructuring charges, net of tax | -134.2 | -233.5 | -25.4 | |||||||||||
Benefit expense on group annuity contract conversion | 0 | 99 | 941.4 | |||||||||||
Net realized capital gains, after tax | 51.9 | -6.8 | 71 | |||||||||||
Charges for changes in our life claim payments practices, net of tax | 0 | -35.7 | 0 | |||||||||||
Reduction of reserve for anticipated future losses on discontinued products, after tax | 0 | 55.9 | 0 | |||||||||||
Reduction of reserve for anticipated future losses on discontinued products | 0 | 86 | 0 | |||||||||||
Establishment of allowance on reinsurance recoverable, net of tax | 27.4 | |||||||||||||
Establishment of allowance on reinsurance recoverable pretax | 42.2 | |||||||||||||
Settlement of class action litigation, after-tax | 0 | 0 | -78 | |||||||||||
Litigation Settlement, Expense | 120 | |||||||||||||
Reversal of litigation settlement, amount, net of tax | 67 | 0 | 0 | |||||||||||
Loss on early extinguishment of long-term debt, net of tax | -117.8 | 0 | -55.2 | |||||||||||
Defined Benefit Plan Recognized Net Gain (Loss) Due to Settlements, Net of Tax | -72.5 | 0 | 0 | |||||||||||
Pension settlement charge | -111.6 | [3] | 0 | 0 | ||||||||||
Release of litigation-related reserve, pre-tax | 103 | |||||||||||||
Severance and facilities charge | 0 | 0 | -24.1 | |||||||||||
Amortization of Intangible Assets, net of tax | -158.2 | -139.5 | -92.3 | |||||||||||
Net income attributable to the parent | 232 | 594.5 | 548.8 | 665.5 | 368.9 | 518.6 | 536 | 490.1 | 2,040.80 | 1,913.60 | 1,657.90 | |||
Charge for changes in our life claim payment practices | 55 | |||||||||||||
Transaction, integration-related and restructuring charges | 200.7 | 332.8 | 32.6 | |||||||||||
Severence and facilities charge (pretax) | 37 | |||||||||||||
Gain on sale of reinsurance recoverable | 7.2 | |||||||||||||
Reversal of allowance and gain on sale of reinsurance recoverable, net of tax | 0 | 32.1 | 0 | |||||||||||
Reversal of allowance on reinsurance recoverable, net of tax | 27.4 | |||||||||||||
Pension Plan [Member] | ||||||||||||||
Segment Reconciliation [Abstract] | ||||||||||||||
Defined Benefit Plan Recognized Net Gain (Loss) Due to Settlements, Net of Tax | -72.5 | [3] | 0 | [3] | 0 | [3] | ||||||||
Pension Settlement Charge [Member] | Pension Plan [Member] | ||||||||||||||
Segment Reconciliation [Abstract] | ||||||||||||||
Pension settlement charge | 111.6 | 0 | 0 | |||||||||||
Pension Plan [Member] | ||||||||||||||
Segment Reconciliation [Abstract] | ||||||||||||||
Defined Benefit Plan Recognized Net Gain (Loss) Due to Settlements, Net of Tax | -72.5 | [3],[4] | ||||||||||||
Pension settlement charge | ($111.60) | [3] | ||||||||||||
[1] | Operating earnings (loss) excludes net realized capital gains or losses, amortization of other acquired intangible assets and the other items described in the reconciliation on page 134. | |||||||||||||
[2] | In addition to net realized capital gains (losses) and amortization of other acquired intangible assets, the following other items are excluded from operating earnings because we believe they neither relate to the ordinary course of our business nor reflect our underlying business performance:•We incurred transaction and integration-related costs of $134.2 million ($200.7 million pretax) related to the acquisitions of Coventry, bSwift and InterGlobal during 2014. We incurred transaction, integration-related and restructuring costs of $233.5 million ($332.8 million pretax) and $25.4 million ($32.6 million pretax) during 2013 and 2012, related to the acquisition of Coventry, respectively. Restructuring costs, primarily comprised of severance and real estate consolidation costs, are related to the acquisition of Coventry and our expense management and cost control initiatives. Transaction costs include advisory, legal and other professional fees which are not deductible for tax purposes and are reflected in our GAAP Consolidated Statements of Income in general and administrative expenses, as well as the cost of the bridge credit agreement that was in effect prior to the Coventry acquisition, which is reflected in the GAAP Consolidated Statements of Income in interest expense. Transaction costs also include transaction-related payments as well as expenses related to the negative cost of carry associated with the permanent financing that we obtained in November 2012 for the Coventry acquisition. Prior to the Acquisition Date, that negative cost of carry was excluded from operating earnings. The components of the negative cost of carry are reflected in our GAAP Consolidated Statements of Income in interest expense, net investment income, and general and administrative expenses. On and after the Acquisition Date, the interest expense and general and administrative expenses associated with the permanent financing are no longer excluded from operating earnings.•In 2014 and 2012, we incurred losses on the early extinguishment of long-term debt of $117.8 million ($181.2 million pretax) and $55.2 million ($84.9 million pretax) related to the redemption and/or repurchase of certain of our outstanding senior notes, respectively.•During 2014, we enhanced the Aetna Pension Plan to allow certain current and former employees to elect a 100% lump-sum distribution. In addition, we also announced a limited-time offer permitting certain former employees with deferred vested balances to elect a 100% lump-sum distribution. The distributions in 2014 were funded from existing Aetna Pension Plan assets and we recorded a related non-cash settlement charge of $72.5 million ($111.6 million pretax) during 2014 in general and administrative expenses. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. •In the fourth quarter of 2012, we recorded a charge of $78.0 million ($120.0 million pretax) related to the settlement of purported class action litigation regarding our payment practices related to out-of-network health care providers. That charge included the estimated cost of legal fees of plaintiffs’ counsel and the costs of administering the settlement. In the first quarter of 2014, we exercised our right to terminate the settlement agreement. As a result, we released the reserve established in connection with the settlement agreement, net of amounts due to the settlement administrator, which reduced first quarter 2014 other general and administrative expenses by $67.0 million ($103.0 million pretax). Refer to Note 18 beginning on page 127 for additional information on the termination of the settlement agreement.•In the fourth quarter of 2013, we increased our estimated liability for unpaid life insurance claims with respect to insureds who passed away on or before December 31, 2013, and recorded in current and future benefits a charge of $35.7 million ($55.0 million pretax) as a result of changes during the fourth quarter of 2013 in our life insurance claim payment practices (including related escheatment practices) based on evolving industry practices and regulatory expectations and interpretations. Refer to Note 18 beginning on page 127 for additional information on the changes in our life insurance claim payment practices. •We reduced the reserve for anticipated future losses on discontinued products by $55.9 million ($86.0 million pretax) in the second quarter of 2013. We believe excluding any changes in the reserve for anticipated future losses on discontinued products from operating earnings provides more useful information as to our continuing products and is consistent with the treatment of the operating results of these discontinued products, which are credited or charged to the reserve and do not affect our operating results. Refer to Note 20 beginning on page 135 for additional information on the reduction of the reserve for anticipated future losses on discontinued products.•In 2008, as a result of the liquidation proceedings of Lehman Re, a subsidiary of Lehman Brothers Holdings Inc., we recorded an allowance against our reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax). This reinsurance was placed in 1999 and was on a closed book of paid-up group whole life insurance business. In 2013, we sold our claim against Lehman Re to an unrelated third party (including the reinsurance recoverable) and terminated the reinsurance arrangement. Upon the sale of the claim and termination of the arrangement, we reversed the related allowance thereby reducing other general and administrative expenses by $27.4 million ($42.2 million pretax) and recognized a $4.7 million ($7.2 million pretax) gain on the sale in fees and other revenue.•In 2012, we recorded a severance charge of $24.1 million ($37.0 million pretax) related to actions taken in 2012 and 2013. | |||||||||||||
[3] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | |||||||||||||
[4] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan. We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 of Notes to Consolidated Financial Statements beginning on page 109 of the Annual Report for additional information on the pension settlement charge. |
Segment_Information_Revenues_f
Segment Information - Revenues from External Customers by Product (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | $56,976.90 | [1],[2] | $46,387.10 | [1],[2] | $35,568.90 | [1],[2] |
Group annuity contract conversion premium | 0 | [3] | 99 | [3] | 941.4 | [3] |
Benefit expense on group annuity contract conversion | 0 | 99 | 941.4 | |||
Premiums Earned Net Accident And Health [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | 49,562.20 | 39,659.70 | 28,872 | |||
Health Care Fees And Other Revenue [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | 5,114.40 | 4,425.50 | 3,736.90 | |||
Group Life [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | 1,240.90 | 1,158.90 | 1,070.10 | |||
Group Disability [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | 929 | 849.5 | 726 | |||
Group Longterm Care [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | 44.3 | 44.9 | 45.9 | |||
Large Case Pension [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | 86.1 | 149.6 | 176.6 | |||
United States Federal Government [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | 15,500 | 12,200 | 7,400 | |||
Revenue from foreign customers [Member] | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenue from external customers | $1,200 | $886 | $775 | |||
[1] | All within the U.S., except approximately $1.2 billion, $886 million and $775 million in 2014, 2013 and 2012, respectively, which were derived from foreign customers. | |||||
[2] | Revenue from the U.S. federal government was approximately $15.5 billion, $12.2 billion and $7.4 billion in 2014, 2013 and 2012, respectively, in the Health Care and Group Insurance segments. These amounts exceeded 10 percent of our total revenue from external customers in each of 2014, 2013 and 2012. | |||||
[3] | In 2013 and 2012, pursuant to contractual rights exercised by the contract holders, certain existing group annuity contracts converted from participating to non-participating contracts. Upon conversion, we recorded $99.0 million and $941.4 million of non-cash group annuity conversion premium for these contracts and a corresponding $99.0 million and $941.4 million non-cash benefit expense on group annuity conversion for these contracts during 2013 and 2012, respectively. |
Segment_Information_Reconcilia1
Segment Information - Reconciliation of Revenue from External Customers to Total Revenues (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reconciliation of revenue from external customers to total revenues [Abstract] | ||||||||||||||
Revenue from external customers | $56,976.90 | [1],[2] | $46,387.10 | [1],[2] | $35,568.90 | [1],[2] | ||||||||
Net investment income | 945.9 | 916.3 | 922.2 | |||||||||||
Net realized capital gains (losses) | 80.4 | -8.8 | 108.7 | |||||||||||
Total revenue | 14,771.20 | 14,727.80 | 14,509.40 | 13,994.80 | 13,182.70 | 13,035.60 | 11,537.40 | 9,538.90 | 58,003.20 | 47,294.60 | 36,599.80 | |||
Long-lived assets, within the United States | $666 | $718 | $666 | $718 | ||||||||||
[1] | All within the U.S., except approximately $1.2 billion, $886 million and $775 million in 2014, 2013 and 2012, respectively, which were derived from foreign customers. | |||||||||||||
[2] | Revenue from the U.S. federal government was approximately $15.5 billion, $12.2 billion and $7.4 billion in 2014, 2013 and 2012, respectively, in the Health Care and Group Insurance segments. These amounts exceeded 10 percent of our total revenue from external customers in each of 2014, 2013 and 2012. |
Discontinued_Products_Details
Discontinued Products (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 1993 | ||
Reserve For Discontinued Products [Roll Forward] | ||||||
Reduction of reserve for anticipated future losses on discontinued products | $0 | $86 | $0 | |||
Reduction of reserve for anticipated future losses on discontinued products, after tax | 0 | 55.9 | 0 | |||
Assets: | ||||||
Investments | 24,789.10 | 22,998.80 | ||||
Collateral received under securities loan agreements | 826.9 | 792.6 | ||||
Total assets | 53,402.10 | 49,764.80 | 41,387.50 | |||
Liabilities: | ||||||
Total liabilities | 38,850.30 | 35,686.60 | ||||
Mortgage loans investment portfolio | 387 | 5,400 | ||||
Mortgage loans investment portfolio percentages (in hundredths) | 11.00% | 37.00% | ||||
Real Estate investment portfolio | 74 | 500 | ||||
Real Estate investment portfolio percentages (in hundredths) | 2.00% | 4.00% | ||||
Expected Runoff Of Single Premium Annuities | 2,281 | 2,448.90 | 2,615.40 | |||
Expected Runoff Of Guaranteed Investment Contracts Liabilities | 12 | 15.7 | 16.1 | |||
Actual Runoff Of Single Premium Annuities | 2,645.80 | 2,804.80 | 2,857.60 | |||
Actual Runoff Of Guaranteed Investment Contracts Liabilities | 0 | 0 | 6.6 | |||
Scheduled Contract Maturities, Settlements And Benefit Payments | 377.9 | 391.5 | 399.5 | |||
Discontinued Products [Member] | ||||||
Reserve For Discontinued Products [Roll Forward] | ||||||
Reserve, beginning of period | 979.5 | [1] | 978.5 | 896.3 | ||
Operating income (loss) | 6 | 1 | -2 | |||
Net realized capital gains | 29.2 | 86 | 84.2 | |||
Reduction of reserve for anticipated future losses on discontinued products | 0 | -86 | 0 | |||
Reserve, end of period | 1,014.70 | [1] | 979.5 | [1] | 978.5 | |
Assets: | ||||||
Investments | 3,425.20 | [1] | 3,443.50 | [1] | ||
Other Assets | 112.9 | [1] | 85.2 | [1] | ||
Collateral received under securities loan agreements | 200.7 | [1] | 204.4 | [1] | ||
Current and deferred income taxes | 0 | [1] | 14.4 | [1] | ||
Receivable from continuing products | 566.5 | [1],[2] | 533.1 | [1],[2] | ||
Total assets | 4,305.30 | [1] | 4,280.60 | [1] | ||
Liabilities: | ||||||
Future policy benefits | 2,645.80 | [1] | 2,804.80 | [1] | ||
Reserve for anticipated future losses on discontinued products | 1,014.70 | [1] | 979.5 | [1] | 978.5 | |
Collateral payable under securities loan agreements | 200.7 | [1] | 204.4 | [1] | ||
Current and deferred income tax liabilities | 27.9 | [1] | 0 | [1] | ||
Other Liabilities | 416.2 | [1],[3] | 291.9 | [1],[3] | ||
Total liabilities | 4,305.30 | [2] | 4,280.60 | [1] | ||
Debt And Equity Securities Available For Sale [Member] | ||||||
Assets: | ||||||
Investments | 21,441.70 | 19,730.40 | ||||
Debt And Equity Securities Available For Sale [Member] | Discontinued Products [Member] | ||||||
Assets: | ||||||
Investments | 2,376.20 | [1] | 2,372.60 | [1] | ||
Mortgage Loans [Member] | ||||||
Assets: | ||||||
Investments | 1,562.20 | 1,549.60 | ||||
Mortgage Loans [Member] | Discontinued Products [Member] | ||||||
Assets: | ||||||
Investments | 386.8 | [1] | 407 | [1] | ||
Other Investments [Member] | ||||||
Assets: | ||||||
Investments | 1,785.20 | 1,718.80 | ||||
Other Investments [Member] | Discontinued Products [Member] | ||||||
Assets: | ||||||
Investments | 662.2 | [1] | 663.9 | [1] | ||
Single Premium Annuities And Guaranteed Investment Contracts Liabilities [Member] | ||||||
Liabilities: | ||||||
2015 | 383.7 | [4] | ||||
2016 | 367.8 | [4] | ||||
2017 | 351.5 | [4] | ||||
2018 | 335.3 | [4] | ||||
2019 | 319.3 | [4] | ||||
Thereafter | 4,133.40 | [4] | ||||
Discontinued Products Reserve Balance [Member] | ||||||
Liabilities: | ||||||
2015 | 53.9 | |||||
2016 | 52.9 | |||||
2017 | 51.6 | |||||
2018 | 50.2 | |||||
2019 | 48.7 | |||||
Thereafter | $757.40 | |||||
[1] | Assets supporting the discontinued products are distinguished from assets supporting continuing products. | |||||
[2] | At the time of discontinuance, a receivable from Large Case Pensions’ continuing products was established on the discontinued products balance sheet. This receivable represented the net present value of anticipated cash shortfalls in the discontinued products, which will be funded from continuing products. Interest on the receivable is accrued at the discount rate that was used to calculate the reserve. The offsetting payable, on which interest is similarly accrued, is reflected in continuing products. Interest on the payable generally offsets investment income on the assets available to fund the shortfall. These amounts are eliminated in consolidation. | |||||
[3] | Net unrealized capital gains on the available-for-sale debt securities are included in other liabilities and are not reflected in consolidated shareholders’ equity. | |||||
[4] | December 31, 2014 and 2013, our remaining GIC liability was not material. |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 21, 2014 | Sep. 30, 2014 | Sep. 19, 2014 | Jun. 30, 2014 | 30-May-14 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 06, 2013 | Sep. 30, 2013 | Sep. 27, 2013 | Jun. 30, 2013 | 17-May-13 | Mar. 31, 2013 | Feb. 19, 2013 | Feb. 27, 2015 |
Subsequent Event [Line Items] | ||||||||||||||||||
Collateralized Excess Of Loss On Reinsurance Coverage | $500 | $690 | $540 | |||||||||||||||
Dividends Amount Per Share | $0.25 | $0.23 | $0.25 | $0.23 | $0.23 | $0.23 | $0.23 | $0.23 | $0.23 | $0.23 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | $0.20 | ||
Dividend Declared [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends Amount Per Share | $0.25 | |||||||||||||||||
Reinsurance Policy [Domain] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Collateralized Excess Of Loss On Reinsurance Coverage | $200 |
Schedule_I_Financial_Informati1
Schedule I: Financial Information of Aetna Inc. (Parent Company Only) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $1,500,000,000 | $2,500,000,000 | $1,700,000,000 | ||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | -2,200,000 | 4,300,000 | -1,600,000 | 3,900,000 | -100,000 | 400,000 | -2,800,000 | 800,000 | 4,400,000 | -1,700,000 | 1,900,000 | ||||||
Net income including non-controlling interests | 229,800,000 | 598,800,000 | 547,200,000 | 669,400,000 | 368,800,000 | 519,000,000 | 533,200,000 | 490,900,000 | 2,045,200,000 | 1,911,900,000 | 1,659,800,000 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 12,100,000 | 22,300,000 | -2,900,000 | ||||||||||||||
Loss on early extinguishment of long-term debt | 181,200,000 | 0 | 84,900,000 | ||||||||||||||
Statements of Income [Abstract] | |||||||||||||||||
Net investment income | 945,900,000 | 916,300,000 | 922,200,000 | ||||||||||||||
Net realized capital gains (losses) | 80,400,000 | -8,800,000 | 108,700,000 | ||||||||||||||
Total revenue | 14,771,200,000 | 14,727,800,000 | 14,509,400,000 | 13,994,800,000 | 13,182,700,000 | 13,035,600,000 | 11,537,400,000 | 9,538,900,000 | 58,003,200,000 | 47,294,600,000 | 36,599,800,000 | ||||||
Operating expenses | 10,837,700,000 | 8,645,400,000 | 6,876,400,000 | ||||||||||||||
Interest expense | 329,300,000 | 333,700,000 | 268,800,000 | ||||||||||||||
Income before income taxes | 428,700,000 | 996,900,000 | 924,600,000 | 1,149,700,000 | 535,400,000 | 806,700,000 | 847,700,000 | 750,700,000 | 3,499,900,000 | 2,940,500,000 | 2,547,300,000 | ||||||
Income taxes | -198,900,000 | -398,100,000 | -377,400,000 | -480,300,000 | -166,600,000 | -287,700,000 | -314,500,000 | -259,800,000 | -1,454,700,000 | -1,028,600,000 | -887,500,000 | ||||||
Equity in earnings (losses) of affiliates, net | 39,400,000 | 43,600,000 | 46,900,000 | ||||||||||||||
Net income attributable to the parent | 232,000,000 | 594,500,000 | 548,800,000 | 665,500,000 | 368,900,000 | 518,600,000 | 536,000,000 | 490,100,000 | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||
Amortization of Acquired Intangible Assets | 243,400,000 | 214,600,000 | 142,000,000 | ||||||||||||||
Current assets: [Abstract] | |||||||||||||||||
Cash and cash equivalents | 1,420,400,000 | 1,412,300,000 | 1,420,400,000 | 1,412,300,000 | 2,579,200,000 | ||||||||||||
Investments | 2,595,200,000 | 2,063,800,000 | 2,595,200,000 | 2,063,800,000 | |||||||||||||
Other receivables | 2,065,900,000 | 1,780,800,000 | 2,065,900,000 | 1,780,800,000 | |||||||||||||
Income taxes receivable | 372,700,000 | 69,200,000 | 372,700,000 | 69,200,000 | |||||||||||||
Deferred income taxes | 443,000,000 | 521,500,000 | 443,000,000 | 521,500,000 | |||||||||||||
Other current assets | 2,193,000,000 | 1,429,400,000 | 2,193,000,000 | 1,429,400,000 | |||||||||||||
Total current assets | 11,764,000,000 | 9,611,900,000 | 11,764,000,000 | 9,611,900,000 | |||||||||||||
Long-term Investments | 22,193,900,000 | 20,935,000,000 | 22,193,900,000 | 20,935,000,000 | |||||||||||||
Other long-term assets | 1,130,000,000 | 1,419,200,000 | 1,130,000,000 | 1,419,200,000 | |||||||||||||
Total assets | 53,402,100,000 | 49,764,800,000 | 53,402,100,000 | 49,764,800,000 | 41,387,500,000 | ||||||||||||
Current liabilities [Abstract] | |||||||||||||||||
Short-term Debt | 500,000,000 | 0 | 500,000,000 | 0 | |||||||||||||
Accrued expenses and other current liabilities | 4,022,300,000 | 3,226,900,000 | 4,022,300,000 | 3,226,900,000 | |||||||||||||
Total current liabilities | 15,356,500,000 | 12,473,000,000 | 15,356,500,000 | 12,473,000,000 | |||||||||||||
Long-term debt, less current portion | 7,852,000,000 | 7,865,300,000 | 7,852,000,000 | 7,865,300,000 | |||||||||||||
Other long-term liabilities | 1,201,600,000 | 1,047,500,000 | 1,201,600,000 | 1,047,500,000 | |||||||||||||
Total liabilities | 38,850,300,000 | 35,686,600,000 | 38,850,300,000 | 35,686,600,000 | |||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Common stock ($.01 par value; 2.6 billion shares authorized and 349.8 million shares issued and outstanding in 2014; 2.6 billion shares authorized and 362.2 million shares issued and outstanding in 2013) and additional paid-in capital | 4,542,200,000 | 4,382,200,000 | 4,542,200,000 | 4,382,200,000 | |||||||||||||
Retained earnings | 11,051,700,000 | 10,555,400,000 | 11,051,700,000 | 10,555,400,000 | |||||||||||||
Accumulated other comprehensive loss | -1,111,300,000 | -912,100,000 | -1,111,300,000 | -912,100,000 | |||||||||||||
Total Aetna shareholders' equity | 14,482,600,000 | 14,025,500,000 | 14,482,600,000 | 14,025,500,000 | |||||||||||||
Non-controlling interests | 69,200,000 | 52,700,000 | 69,200,000 | 52,700,000 | |||||||||||||
Total equity | 14,551,800,000 | 14,078,200,000 | 14,551,800,000 | 14,078,200,000 | 10,429,200,000 | 10,144,600,000 | |||||||||||
Total liabilities and shareholders' equity | 53,402,100,000 | 49,764,800,000 | 53,402,100,000 | 49,764,800,000 | |||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period (in shares) | 362.2 | 362.2 | |||||||||||||||
Balance at beginning of period | 14,025,500,000 | 14,025,500,000 | |||||||||||||||
Comprehensive income: | |||||||||||||||||
Net income attributable to the parent | 232,000,000 | 594,500,000 | 548,800,000 | 665,500,000 | 368,900,000 | 518,600,000 | 536,000,000 | 490,100,000 | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -199,200,000 | 121,300,000 | 155,800,000 | ||||||||||||||
Total comprehensive income | 1,841,600,000 | 2,034,900,000 | 1,813,700,000 | ||||||||||||||
Common shares issued for benefit plans, including tax benefits | 160,100,000 | 231,200,000 | 132,800,000 | ||||||||||||||
Repurchases of common shares | -1,218,100,000 | -1,407,700,000 | -1,417,500,000 | ||||||||||||||
Dividends declared | -326,500,000 | -294,600,000 | -243,400,000 | ||||||||||||||
Balance at end of period (in shares) | 349.8 | 362.2 | 349.8 | 362.2 | |||||||||||||
Balance at end of period | 14,482,600,000 | 14,025,500,000 | 14,482,600,000 | 14,025,500,000 | |||||||||||||
Cash flows from operating activities: [Abstract] | |||||||||||||||||
Net income attributable to the parent | 232,000,000 | 594,500,000 | 548,800,000 | 665,500,000 | 368,900,000 | 518,600,000 | 536,000,000 | 490,100,000 | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||
Adjustments to reconcile net income to net cash used for operating activities: | |||||||||||||||||
Equity in earnings of affiliates | -39,400,000 | -43,600,000 | -46,900,000 | ||||||||||||||
Stock-based compensation expense | 163,800,000 | 127,100,000 | 122,200,000 | ||||||||||||||
Net realized capital (gains) losses | -80,400,000 | 8,800,000 | -108,700,000 | ||||||||||||||
Net change in other assets and other liabilities | -551,800,000 | -28,900,000 | 340,200,000 | ||||||||||||||
Net cash provided by operating activities | 3,372,800,000 | 2,278,700,000 | 1,824,900,000 | ||||||||||||||
Net cash provided by (used for) operating activities [Abstract] | |||||||||||||||||
Proceeds from sales and maturities of investments | 9,484,300,000 | 13,382,000,000 | 11,181,600,000 | ||||||||||||||
Cost of investments | -10,803,900,000 | -13,178,400,000 | -11,066,100,000 | ||||||||||||||
Cash used for acquisitions, net of cash acquired | -450,500,000 | -1,646,800,000 | -8,600,000 | ||||||||||||||
Net cash provided by (used for) investing activities | -2,129,700,000 | -1,919,800,000 | -231,300,000 | ||||||||||||||
Cash flows from financing activities: [Abstract] | |||||||||||||||||
Net repayment of long-term debt | -1,797,800,000 | 0 | -277,200,000 | ||||||||||||||
Issuance of long-term debt | 1,482,400,000 | 0 | 2,664,800,000 | ||||||||||||||
Net issuance (repayment) of short-term debt | 500,000,000 | 0 | -425,900,000 | ||||||||||||||
Common shares issued under benefit plans, net | -60,300,000 | 11,800,000 | -44,500,000 | ||||||||||||||
Stock-based compensation tax benefits | 41,300,000 | 83,400,000 | 50,300,000 | ||||||||||||||
Common shares repurchased | -1,218,100,000 | -1,407,700,000 | -1,417,500,000 | ||||||||||||||
Collateral held on interest rate swaps | -77,300,000 | 39,900,000 | 9,200,000 | ||||||||||||||
Dividends paid to shareholders | -320,600,000 | -278,700,000 | -239,100,000 | ||||||||||||||
Net cash (used for) provided by financing activities | -1,235,000,000 | -1,525,800,000 | 305,900,000 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | 8,100,000 | -1,166,900,000 | 1,899,500,000 | ||||||||||||||
Cash and cash equivalents, beginning of period | 1,412,300,000 | 2,579,200,000 | 1,412,300,000 | 2,579,200,000 | 679,700,000 | ||||||||||||
Cash and cash equivalents, end of period | 1,420,400,000 | 1,412,300,000 | 1,420,400,000 | 1,412,300,000 | 2,579,200,000 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Interest paid | 379,000,000 | 364,000,000 | 242,000,000 | ||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 52.2 | ||||||||||||||||
Stock Issued During Period, Value, Acquisitions | 3,064,600,000 | ||||||||||||||||
Pension Settlement Charge, Net of Tax | 72,500,000 | 0 | 0 | ||||||||||||||
Pension settlement charge | -111,600,000 | [1] | 0 | 0 | |||||||||||||
Common Stock [Member] | |||||||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period (in shares) | 362.2 | 327.6 | 362.2 | 327.6 | 349.7 | ||||||||||||
Other comprehensive income: | |||||||||||||||||
Common shares issued for benefit plans, including tax benefits (in shares) | 3.5 | 5.4 | 10.2 | ||||||||||||||
Repurchases of common shares (in shares) | -15.9 | -23 | -32.3 | ||||||||||||||
Balance at end of period (in shares) | 349.8 | 362.2 | 349.8 | 362.2 | 327.6 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 52.2 | ||||||||||||||||
Common Stock Including Additional Paid in Capital [Member] | |||||||||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 0 | -8,700,000 | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total Aetna shareholders' equity | 4,542,200,000 | 4,382,200,000 | 4,542,200,000 | 4,382,200,000 | 1,095,300,000 | ||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | 4,382,200,000 | 1,095,300,000 | 4,382,200,000 | 1,095,300,000 | 962,800,000 | ||||||||||||
Other comprehensive income: | |||||||||||||||||
Common shares issued for benefit plans, including tax benefits | 160,100,000 | 231,200,000 | 132,800,000 | ||||||||||||||
Repurchases of common shares | -100,000 | -200,000 | -300,000 | ||||||||||||||
Balance at end of period | 4,542,200,000 | 4,382,200,000 | 4,542,200,000 | 4,382,200,000 | 1,095,300,000 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Stock Issued During Period, Value, Acquisitions | 3,064,600,000 | ||||||||||||||||
Parent [Member] | |||||||||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 0 | -8,700,000 | |||||||||||||||
Statements of Income [Abstract] | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total Aetna shareholders' equity | 14,482,600,000 | 14,025,500,000 | 14,482,600,000 | 14,025,500,000 | 10,405,800,000 | ||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | 14,025,500,000 | 10,405,800,000 | 14,025,500,000 | 10,405,800,000 | 10,120,200,000 | ||||||||||||
Comprehensive income: | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -199,200,000 | 121,300,000 | 155,800,000 | ||||||||||||||
Common shares issued for benefit plans, including tax benefits | 160,100,000 | 231,200,000 | 132,800,000 | ||||||||||||||
Repurchases of common shares | -1,218,100,000 | -1,407,700,000 | -1,417,500,000 | ||||||||||||||
Dividends declared | -326,500,000 | -294,600,000 | -243,400,000 | ||||||||||||||
Balance at end of period | 14,482,600,000 | 14,025,500,000 | 14,482,600,000 | 14,025,500,000 | 10,405,800,000 | ||||||||||||
Cash flows from operating activities: [Abstract] | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Stock Issued During Period, Value, Acquisitions | 3,064,600,000 | ||||||||||||||||
Noncontrolling Interest [Member] | |||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 4,400,000 | -1,700,000 | 1,900,000 | ||||||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 12,100,000 | 31,000,000 | -2,900,000 | ||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Non-controlling interests | 69,200,000 | 52,700,000 | 69,200,000 | 52,700,000 | 23,400,000 | 24,400,000 | |||||||||||
Retained Earnings [Member] | |||||||||||||||||
Statements of Income [Abstract] | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total Aetna shareholders' equity | 11,051,700,000 | 10,555,400,000 | 11,051,700,000 | 10,555,400,000 | 10,343,900,000 | ||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | 10,555,400,000 | 10,343,900,000 | 10,555,400,000 | 10,343,900,000 | 10,346,600,000 | ||||||||||||
Comprehensive income: | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Other comprehensive income: | |||||||||||||||||
Repurchases of common shares | -1,218,000,000 | -1,407,500,000 | -1,417,200,000 | ||||||||||||||
Dividends declared | -326,500,000 | -294,600,000 | -243,400,000 | ||||||||||||||
Balance at end of period | 11,051,700,000 | 10,555,400,000 | 11,051,700,000 | 10,555,400,000 | 10,343,900,000 | ||||||||||||
Cash flows from operating activities: [Abstract] | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Accumulated Other Comprehensive Loss [Member] | |||||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total Aetna shareholders' equity | -1,111,300,000 | -912,100,000 | -1,111,300,000 | -912,100,000 | -1,033,400,000 | ||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | -912,100,000 | -1,033,400,000 | -912,100,000 | -1,033,400,000 | -1,189,200,000 | ||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -199,200,000 | 121,300,000 | 155,800,000 | ||||||||||||||
Balance at end of period | -1,111,300,000 | -912,100,000 | -1,111,300,000 | -912,100,000 | -1,033,400,000 | ||||||||||||
Parent Company [Member] | |||||||||||||||||
Loss on early extinguishment of long-term debt | 181,200,000 | 0 | 84,900,000 | ||||||||||||||
Statements of Income [Abstract] | |||||||||||||||||
Net investment income | 600,000 | 3,100,000 | 1,500,000 | ||||||||||||||
Net realized capital gains (losses) | 28,100,000 | 2,800,000 | 0 | ||||||||||||||
Total revenue | 28,700,000 | 5,900,000 | 1,500,000 | ||||||||||||||
Operating expenses | 279,100,000 | 142,700,000 | 136,100,000 | ||||||||||||||
Interest expense | 298,200,000 | 312,300,000 | 268,800,000 | ||||||||||||||
Total expenses | 758,500,000 | 455,000,000 | 489,800,000 | ||||||||||||||
Income before income taxes | -729,800,000 | -449,100,000 | -488,300,000 | ||||||||||||||
Income taxes | 247,900,000 | 142,300,000 | 156,100,000 | ||||||||||||||
Equity in earnings (losses) of affiliates, net | 2,522,700,000 | [2] | 2,220,400,000 | [2] | 1,990,100,000 | [2] | |||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Amortization of Acquired Intangible Assets | 158,200,000 | 139,500,000 | 92,300,000 | ||||||||||||||
Current assets: [Abstract] | |||||||||||||||||
Cash and cash equivalents | 17,800,000 | 187,600,000 | 17,800,000 | 187,600,000 | 2,206,700,000 | ||||||||||||
Investments | 66,300,000 | 26,900,000 | 66,300,000 | 26,900,000 | |||||||||||||
Other receivables | 0 | 62,800,000 | 0 | 62,800,000 | |||||||||||||
Income taxes receivable | 130,200,000 | 29,700,000 | 130,200,000 | 29,700,000 | |||||||||||||
Deferred income taxes | 70,700,000 | 45,400,000 | 70,700,000 | 45,400,000 | |||||||||||||
Other current assets | 112,000,000 | 13,900,000 | 112,000,000 | 13,900,000 | |||||||||||||
Total current assets | 397,000,000 | 366,300,000 | 397,000,000 | 366,300,000 | |||||||||||||
Investment in affiliates | 22,549,900,000 | [3] | 20,627,100,000 | [3] | 22,549,900,000 | [3] | 20,627,100,000 | [3] | |||||||||
Long-term Investments | 0 | 48,400,000 | 0 | 48,400,000 | |||||||||||||
Deferred income taxes | 258,300,000 | 72,100,000 | 258,300,000 | 72,100,000 | |||||||||||||
Other long-term assets | 48,200,000 | 468,000,000 | 48,200,000 | 468,000,000 | |||||||||||||
Total assets | 23,253,400,000 | 21,581,900,000 | 23,253,400,000 | 21,581,900,000 | |||||||||||||
Current liabilities [Abstract] | |||||||||||||||||
Short-term Debt | 500,000,000 | 0 | 500,000,000 | 0 | |||||||||||||
Accrued expenses and other current liabilities | 718,600,000 | 431,500,000 | 718,600,000 | 431,500,000 | |||||||||||||
Total current liabilities | 1,218,600,000 | 431,500,000 | 1,218,600,000 | 431,500,000 | |||||||||||||
Long-term debt, less current portion | 6,745,100,000 | 6,488,100,000 | 6,745,100,000 | 6,488,100,000 | |||||||||||||
Employee benefit liabilities | 690,800,000 | 542,600,000 | 690,800,000 | 542,600,000 | |||||||||||||
Accrued Income Taxes | 4,700,000 | 4,000,000 | 4,700,000 | 4,000,000 | |||||||||||||
Other long-term liabilities | 42,400,000 | 37,500,000 | 42,400,000 | 37,500,000 | |||||||||||||
Total liabilities | 8,701,600,000 | 7,503,700,000 | 8,701,600,000 | 7,503,700,000 | |||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Common stock ($.01 par value; 2.6 billion shares authorized and 349.8 million shares issued and outstanding in 2014; 2.6 billion shares authorized and 362.2 million shares issued and outstanding in 2013) and additional paid-in capital | 4,542,200,000 | 4,382,200,000 | 4,542,200,000 | 4,382,200,000 | |||||||||||||
Retained earnings | 11,051,700,000 | 10,555,400,000 | 11,051,700,000 | 10,555,400,000 | |||||||||||||
Accumulated other comprehensive loss | -1,111,300,000 | -912,100,000 | -1,111,300,000 | -912,100,000 | |||||||||||||
Total Aetna shareholders' equity | 14,482,600,000 | 14,025,500,000 | 14,482,600,000 | 14,025,500,000 | 10,405,800,000 | ||||||||||||
Non-controlling interests | 69,200,000 | 52,700,000 | 69,200,000 | 52,700,000 | |||||||||||||
Total equity | 14,551,800,000 | 14,078,200,000 | 14,551,800,000 | 14,078,200,000 | |||||||||||||
Total liabilities and shareholders' equity | 23,253,400,000 | 21,581,900,000 | 23,253,400,000 | 21,581,900,000 | |||||||||||||
Goodwill and Other Acquired Intangible Assets | 12,600,000,000 | 12,300,000,000 | 12,600,000,000 | 12,300,000,000 | |||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | 14,025,500,000 | 10,405,800,000 | 14,025,500,000 | 10,405,800,000 | 10,120,200,000 | ||||||||||||
Comprehensive income: | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -199,200,000 | 121,300,000 | 155,800,000 | ||||||||||||||
Total comprehensive income | 1,841,600,000 | 2,034,900,000 | 1,813,700,000 | ||||||||||||||
Common shares issued for benefit plans, including tax benefits | 160,100,000 | 231,200,000 | 132,800,000 | ||||||||||||||
Repurchases of common shares | -1,218,100,000 | -1,407,700,000 | -1,417,500,000 | ||||||||||||||
Dividends declared | -326,500,000 | -294,600,000 | -243,400,000 | ||||||||||||||
Balance at end of period | 14,482,600,000 | 14,025,500,000 | 14,482,600,000 | 14,025,500,000 | 10,405,800,000 | ||||||||||||
Cash flows from operating activities: [Abstract] | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Adjustments to reconcile net income to net cash used for operating activities: | |||||||||||||||||
Equity in earnings of affiliates | -2,522,700,000 | [2] | -2,220,400,000 | [2] | -1,990,100,000 | [2] | |||||||||||
Stock-based compensation expense | 163,800,000 | 127,100,000 | 122,200,000 | ||||||||||||||
Net realized capital (gains) losses | -28,100,000 | -2,800,000 | 0 | ||||||||||||||
Net change in other assets and other liabilities | 132,100,000 | -65,500,000 | 48,300,000 | ||||||||||||||
Net cash provided by operating activities | 78,700,000 | -248,000,000 | -76,800,000 | ||||||||||||||
Net cash provided by (used for) operating activities [Abstract] | |||||||||||||||||
Proceeds from sales and maturities of investments | 18,000,000 | 701,500,000 | 112,800,000 | ||||||||||||||
Cost of investments | -86,300,000 | -532,000,000 | -249,500,000 | ||||||||||||||
Dividends received from affiliates, net | 895,100,000 | 2,625,000,000 | 2,062,500,000 | ||||||||||||||
Cash used for acquisitions, net of cash acquired | 0 | [4] | -3,014,300,000 | [4] | 0 | [4] | |||||||||||
Net cash provided by (used for) investing activities | 826,800,000 | -219,800,000 | 1,925,800,000 | ||||||||||||||
Cash flows from financing activities: [Abstract] | |||||||||||||||||
Net repayment of long-term debt | -1,422,700,000 | 0 | -277,200,000 | ||||||||||||||
Issuance of long-term debt | 1,482,400,000 | 0 | 2,664,800,000 | ||||||||||||||
Net issuance (repayment) of short-term debt | 500,000,000 | 0 | -425,900,000 | ||||||||||||||
Common shares issued under benefit plans, net | -60,300,000 | 11,800,000 | -44,500,000 | ||||||||||||||
Stock-based compensation tax benefits | 41,300,000 | 83,400,000 | 50,300,000 | ||||||||||||||
Common shares repurchased | -1,218,100,000 | -1,407,700,000 | -1,417,500,000 | ||||||||||||||
Collateral held on interest rate swaps | -77,300,000 | 39,900,000 | 9,200,000 | ||||||||||||||
Dividends paid to shareholders | -320,600,000 | -278,700,000 | -239,100,000 | ||||||||||||||
Net cash (used for) provided by financing activities | -1,075,300,000 | -1,551,300,000 | 320,100,000 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | -169,800,000 | -2,019,100,000 | 2,169,100,000 | ||||||||||||||
Cash and cash equivalents, beginning of period | 187,600,000 | 2,206,700,000 | 187,600,000 | 2,206,700,000 | 37,600,000 | ||||||||||||
Cash and cash equivalents, end of period | 17,800,000 | 187,600,000 | 17,800,000 | 187,600,000 | 2,206,700,000 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Interest paid | 286,100,000 | 301,400,000 | 241,900,000 | ||||||||||||||
Income taxes refunded | 198,200,000 | 294,000,000 | 282,300,000 | ||||||||||||||
Stock Issued During Period, Value, Acquisitions | 3,064,600,000 | ||||||||||||||||
Pension and Other Postretirement Benefit Expense | 0 | 0 | |||||||||||||||
Pension settlement charge | -111,600,000 | ||||||||||||||||
Parent Company [Member] | Common Stock [Member] | |||||||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period (in shares) | 362.2 | 327.6 | 362.2 | 327.6 | 349.7 | ||||||||||||
Other comprehensive income: | |||||||||||||||||
Common shares issued for benefit plans, including tax benefits (in shares) | 3.5 | 5.4 | 10.2 | ||||||||||||||
Repurchases of common shares (in shares) | -15.9 | -23 | -32.3 | ||||||||||||||
Balance at end of period (in shares) | 349.8 | 362.2 | 349.8 | 362.2 | 327.6 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 52.2 | ||||||||||||||||
Parent Company [Member] | Common Stock Including Additional Paid in Capital [Member] | |||||||||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 0 | -8,700,000 | 0 | ||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total Aetna shareholders' equity | 4,542,200,000 | 4,382,200,000 | 4,542,200,000 | 4,382,200,000 | 1,095,300,000 | ||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | 4,382,200,000 | 1,095,300,000 | 4,382,200,000 | 1,095,300,000 | 962,800,000 | ||||||||||||
Other comprehensive income: | |||||||||||||||||
Common shares issued for benefit plans, including tax benefits | 160,100,000 | 231,200,000 | 132,800,000 | ||||||||||||||
Repurchases of common shares | -100,000 | -200,000 | -300,000 | ||||||||||||||
Balance at end of period | 4,542,200,000 | 4,382,200,000 | 4,542,200,000 | 4,382,200,000 | 1,095,300,000 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Stock Issued During Period, Value, Acquisitions | 3,064,600,000 | ||||||||||||||||
Parent Company [Member] | Parent [Member] | |||||||||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 0 | -8,700,000 | 0 | ||||||||||||||
Parent Company [Member] | Noncontrolling Interest [Member] | |||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 4,400,000 | -1,700,000 | 1,900,000 | ||||||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 12,100,000 | 31,000,000 | -2,900,000 | ||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Non-controlling interests | 69,200,000 | 52,700,000 | 69,200,000 | 52,700,000 | 23,400,000 | 24,400,000 | |||||||||||
Parent Company [Member] | Stockholders' Equity, Total [Member] | |||||||||||||||||
Net income including non-controlling interests | 2,045,200,000 | 1,911,900,000 | 1,659,800,000 | ||||||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 12,100,000 | 22,300,000 | -2,900,000 | ||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total equity | 14,551,800,000 | 14,078,200,000 | 14,551,800,000 | 14,078,200,000 | 10,429,200,000 | 10,144,600,000 | |||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -199,200,000 | 121,300,000 | 155,800,000 | ||||||||||||||
Common shares issued for benefit plans, including tax benefits | 160,100,000 | 231,200,000 | 132,800,000 | ||||||||||||||
Repurchases of common shares | -1,218,100,000 | -1,407,700,000 | -1,417,500,000 | ||||||||||||||
Dividends declared | -326,500,000 | -294,600,000 | -243,400,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Stock Issued During Period, Value, Acquisitions | 3,064,600,000 | ||||||||||||||||
Parent Company [Member] | Retained Earnings [Member] | |||||||||||||||||
Statements of Income [Abstract] | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total Aetna shareholders' equity | 11,051,700,000 | 10,555,400,000 | 11,051,700,000 | 10,555,400,000 | 10,343,900,000 | ||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | 10,555,400,000 | 10,343,900,000 | 10,555,400,000 | 10,343,900,000 | 10,346,600,000 | ||||||||||||
Comprehensive income: | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Other comprehensive income: | |||||||||||||||||
Repurchases of common shares | -1,218,000,000 | -1,407,500,000 | -1,417,200,000 | ||||||||||||||
Dividends declared | -326,500,000 | -294,600,000 | -243,400,000 | ||||||||||||||
Balance at end of period | 11,051,700,000 | 10,555,400,000 | 11,051,700,000 | 10,555,400,000 | 10,343,900,000 | ||||||||||||
Cash flows from operating activities: [Abstract] | |||||||||||||||||
Net income attributable to the parent | 2,040,800,000 | 1,913,600,000 | 1,657,900,000 | ||||||||||||||
Parent Company [Member] | Accumulated Other Comprehensive Loss [Member] | |||||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||||
Total Aetna shareholders' equity | -1,111,300,000 | -912,100,000 | -1,111,300,000 | -912,100,000 | -1,033,400,000 | ||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||
Balance at beginning of period | -912,100,000 | -1,033,400,000 | -912,100,000 | -1,033,400,000 | -1,189,200,000 | ||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -199,200,000 | 121,300,000 | 155,800,000 | ||||||||||||||
Balance at end of period | -1,111,300,000 | -912,100,000 | -1,111,300,000 | -912,100,000 | -1,033,400,000 | ||||||||||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 1,400,000 | [5] | -72,600,000 | [5] | 3,700,000 | [5] | |||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | 700,000 | [5] | -23,100,000 | [5] | -900,000 | [5] | |||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 900,000 | [5] | -47,200,000 | [5] | 2,400,000 | [5] | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 200,000 | [5] | -24,100,000 | [5] | 3,300,000 | [5] | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 300,000 | [5] | -37,100,000 | [5] | 5,100,000 | [5] | |||||||||||
Net Unrealized Gains (Losses) Previously Impaired Securities [Member] | Parent Company [Member] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 1,400,000 | -72,600,000 | 3,700,000 | ||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | 700,000 | [5] | -23,100,000 | [5] | -900,000 | [5] | |||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 900,000 | [5] | -47,200,000 | [5] | 2,400,000 | [5] | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 200,000 | [5] | -24,100,000 | [5] | 3,300,000 | [5] | |||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 300,000 | -37,100,000 | 5,100,000 | ||||||||||||||
Net Unrealized Gains (Losses) All Other Securities [Member] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 364,500,000 | -803,200,000 | 468,300,000 | ||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | 241,200,000 | -498,400,000 | 230,000,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 236,900,000 | -522,100,000 | 304,400,000 | ||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -4,300,000 | -23,700,000 | 74,400,000 | ||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | -6,600,000 | -36,500,000 | 113,800,000 | ||||||||||||||
Net Unrealized Gains (Losses) All Other Securities [Member] | Parent Company [Member] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 364,500,000 | -803,200,000 | 468,300,000 | ||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | 241,200,000 | -498,400,000 | 230,000,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 236,900,000 | -522,100,000 | 304,400,000 | ||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -4,300,000 | -23,700,000 | 74,400,000 | ||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | -6,600,000 | -36,500,000 | 113,800,000 | ||||||||||||||
Foreign Currency Gain (Loss) [Member] | |||||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -61,300,000 | 29,900,000 | 4,200,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -58,600,000 | 26,400,000 | 900,000 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 2,700,000 | -3,500,000 | -3,300,000 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | -90,200,000 | 40,600,000 | 1,400,000 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 4,200,000 | -5,400,000 | -5,000,000 | ||||||||||||||
Foreign Currency Gain (Loss) [Member] | Parent Company [Member] | |||||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -61,300,000 | 29,900,000 | 4,200,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -58,600,000 | 26,400,000 | 900,000 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 2,700,000 | -3,500,000 | -3,300,000 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | -90,200,000 | 40,600,000 | 1,400,000 | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 4,200,000 | -5,400,000 | -5,000,000 | ||||||||||||||
Pension and OPEB Plan [Member] | |||||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -379,800,000 | 612,900,000 | -77,500,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | -480,600,000 | 565,100,000 | -123,400,000 | ||||||||||||||
Recognized net actuarial losses | 31,000,000 | 50,500,000 | 48,600,000 | ||||||||||||||
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Net of Tax | -2,700,000 | -2,700,000 | -2,700,000 | ||||||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | -739,400,000 | 869,300,000 | -189,800,000 | ||||||||||||||
Amortization of net actuarial loss, before tax | -47,600,000 | -77,700,000 | -74,700,000 | ||||||||||||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 4,000,000 | 4,100,000 | 4,100,000 | ||||||||||||||
Pension and OPEB Plan [Member] | Parent Company [Member] | |||||||||||||||||
Other comprehensive income: | |||||||||||||||||
Other Comprehensive Income (Loss) | -379,800,000 | 612,900,000 | -77,500,000 | ||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | -480,600,000 | 565,100,000 | -123,400,000 | ||||||||||||||
Recognized net actuarial losses | 31,000,000 | 50,500,000 | 48,600,000 | ||||||||||||||
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Net of Tax | -2,700,000 | -2,700,000 | -2,700,000 | ||||||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | -739,400,000 | 869,300,000 | -189,800,000 | ||||||||||||||
Amortization of net actuarial loss, before tax | -47,600,000 | -77,700,000 | -74,700,000 | ||||||||||||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 4,000,000 | 4,100,000 | 4,100,000 | ||||||||||||||
Pension Plan [Member] | |||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Pension Settlement Charge, Net of Tax | 72,500,000 | [1],[6] | |||||||||||||||
Pension settlement charge | -111,600,000 | [1] | |||||||||||||||
Pension Plan [Member] | Parent Company [Member] | |||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||
Pension Settlement Charge, Net of Tax | 0 | [6] | 0 | [6] | |||||||||||||
Pension settlement charge | ($111,600,000) | ||||||||||||||||
[1] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan (the “Aetna Pension Planâ€). We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 beginning on page 109 for additional information on the pension settlement charge. | ||||||||||||||||
[2] | Includes after-tax amortization of other acquired intangible assets of $158.2 million, $139.5 million and $92.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
[3] | Includes goodwill and other acquired intangible assets of $12.6 billion and $12.3 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||
[4] | Represents parent company cash used primarily for the Coventry acquisition in 2013. | ||||||||||||||||
[5] | Represents unrealized (losses) gains on the non-credit related component of impaired debt securities that we do not intend to sell and subsequent changes in the fair value of any previously impaired debt security. | ||||||||||||||||
[6] | During 2014, we recorded a non-cash pension settlement charge of $72.5 million ($111.6 million pretax) in connection with our tax-qualified noncontributory defined benefit pension plan. We did not record any non-cash pension settlement charges during 2013 or 2012. Refer to Note 11 of Notes to Consolidated Financial Statements beginning on page 109 of the Annual Report for additional information on the pension settlement charge. |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 21, 2014 | Sep. 19, 2014 | 30-May-14 | Feb. 28, 2014 | Dec. 06, 2013 | Sep. 27, 2013 | 17-May-13 | Feb. 19, 2013 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||
Total revenue | $14,771.20 | $14,727.80 | $14,509.40 | $13,994.80 | $13,182.70 | $13,035.60 | $11,537.40 | $9,538.90 | $58,003.20 | $47,294.60 | $36,599.80 | ||||||||||||||||
Income before income taxes | 428.7 | 996.9 | 924.6 | 1,149.70 | 535.4 | 806.7 | 847.7 | 750.7 | 3,499.90 | 2,940.50 | 2,547.30 | ||||||||||||||||
Income taxes | -198.9 | -398.1 | -377.4 | -480.3 | -166.6 | -287.7 | -314.5 | -259.8 | -1,454.70 | -1,028.60 | -887.5 | ||||||||||||||||
Net income including non-controlling interests | 229.8 | 598.8 | 547.2 | 669.4 | 368.8 | 519 | 533.2 | 490.9 | 2,045.20 | 1,911.90 | 1,659.80 | ||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | -2.2 | 4.3 | -1.6 | 3.9 | -0.1 | 0.4 | -2.8 | 0.8 | 4.4 | -1.7 | 1.9 | ||||||||||||||||
Net income attributable to the parent | $232 | $594.50 | $548.80 | $665.50 | $368.90 | $518.60 | $536 | $490.10 | $2,040.80 | $1,913.60 | $1,657.90 | ||||||||||||||||
Basic EPS (in dollars per share) | $0.66 | [1] | $1.68 | [1] | $1.54 | [1] | $1.84 | [1] | $1.01 | [1] | $1.40 | [1] | $1.50 | [1] | $1.50 | [1] | $5.74 | $5.38 | $4.87 | ||||||||
Diluted EPS (in dollars per share) | $0.65 | [1] | $1.67 | [1] | $1.52 | [1] | $1.82 | [1] | $1 | [1] | $1.38 | [1] | $1.49 | [1] | $1.48 | [1] | $5.68 | $5.33 | $4.81 | ||||||||
Dividends Amount Per Share | $0.25 | $0.23 | $0.23 | $0.23 | $0.23 | $0.20 | $0.20 | $0.20 | $0.25 | $0.23 | $0.25 | $0.23 | $0.23 | $0.23 | $0.23 | $0.20 | $0.20 | $0.20 | |||||||||
Common Stock, prices high | $90.84 | $84.94 | $82.46 | $75.71 | $68.93 | $68.71 | $63.59 | $51.46 | |||||||||||||||||||
Common stock prices, low | $73.43 | $75.22 | $67.77 | $65.15 | $60.75 | $61.54 | $52.38 | $44.38 | |||||||||||||||||||
[1] | Calculation of net income attributable to Aetna per share is based on weighted average shares outstanding during each quarter and, accordingly, the sum may not equal the total for the year. |