Progressive 2013 Annual Report Download - page 14

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Other-Than-Temporary Impairment (OTTI) The following table shows the total non-credit portion of the OTTI recorded in
accumulated other comprehensive income, reflecting the original non-credit loss at the time the credit impairment was
determined:
December 31,
(millions) 2013 2012
Fixed maturities:
Residential mortgage-backed securities $(44.1) $(44.2)
Commercial mortgage-backed securities (.9) (.9)
Total fixed maturities $(45.0) $(45.1)
The following tables provide rollforwards of the amounts related to credit losses recognized in earnings for the periods
ended December 31, 2013, 2012, and 2011, for which a portion of the OTTI losses were also recognized in accumulated
other comprehensive income at the time the credit impairments were determined and recognized:
(millions)
Residential
Mortgage-
Backed
Commercial
Mortgage-
Backed
Corporate
Debt Total
Balance at December 31, 2012 $27.1 $ .6 $0 $27.7
Credit losses for which an OTTI was previously recognized .1 0 0 .1
Credit losses for which an OTTI was not previously recognized 0 0 0 0
Reductions for securities sold/matured 0 0 0 0
Change in recoveries of future cash flows expected to be collected1,2 (7.8) (.2) 0 (8.0)
Reductions for previously recognized credit impairments written-down to fair
value3(.2) 0 0 (.2)
Balance at December 31, 2013 $19.2 $ .4 $0 $19.6
(millions)
Residential
Mortgage-
Backed
Commercial
Mortgage-
Backed
Corporate
Debt Total
Balance at December 31, 2011 $34.5 $1.3 $0 $35.8
Credit losses for which an OTTI was previously recognized .1 0 0 .1
Credit losses for which an OTTI was not previously recognized .3 0 0 .3
Reductions for securities sold/matured 0 (.2) 0 (.2)
Change in recoveries of future cash flows expected to be collected1,2 (3.8) (.2) 0 (4.0)
Reductions for previously recognized credit impairments written-down to fair
value3(4.0) (.3) 0 (4.3)
Balance at December 31, 2012 $27.1 $ .6 $0 $27.7
(millions)
Residential
Mortgage-
Backed
Commercial
Mortgage-
Backed
Corporate
Debt Total
Balance at December 31, 2010 $32.3 $1.0 $ 6.5 $39.8
Credit losses for which an OTTI was previously recognized 1.4 0 0 1.4
Credit losses for which an OTTI was not previously recognized 1.1 .4 0 1.5
Reductions for securities sold/matured 0 0 0 0
Change in recoveries of future cash flows expected to be collected1,2 .8 .3 (6.5) (5.4)
Reductions for previously recognized credit impairments written-down to fair
value3(1.1) (.4) 0 (1.5)
Balance at December 31, 2011 $34.5 $1.3 $ 0 $35.8
1Reflects expected recovery of prior period impairments that will be accreted into income over the remaining life of the security.
2Includes $2.6 million, $1.4 million, and $2.0 million at December 31, 2013, 2012, and 2011, respectively, received in excess of the cash flows
expected to be collected at the time of the write-downs.
3Reflects reductions of prior credit impairments where the current credit impairment requires writing securities down to fair value (i.e., no remaining
non-credit loss).
App.-A-14