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106 UNUM • 2014 ANNUAL REPORT
Notes To Consolidated Financial Statements
Transfers of assets between Level 1 and Level 2 are as follows:
Year Ended December 31
2014 2013
Transfers into
Level 1 from Level 2 from Level 1 from Level 2 from
(in millions of dollars) Level 2 Level 1 Level 2 Level 1
Fixed Maturity Securities
United States Government and Government
Agencies and Authorities $ 163.2 $ — $ 62.2 $ —
States, Municipalities, and Political Subdivisions — — — 53.0
Public Utilities 81.8 253.4 248.4 20.8
All Other Corporate Bonds 1,592.1 1,598.3 1,296.5 1,117.9
Total Fixed Maturity Securities $1,837.1 $1,851.7 $1,607.1 $1,191.7
Transfers between Level 1 and Level 2 occurred due to the change in availability of either a TRACE or broker market maker price.
Depending on current market conditions, the availability of these Level 1 prices can vary from period to period. For fair value measurements
of financial instruments that were transferred either into or out of Level 1 or 2, we reflect the transfers using the fair value at the beginning
of the period.
Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are
as follows:
Year Ended December 31, 2014
Total Realized and
Unrealized Investment
Gains (Losses) Included in
Other
Beginning Comprehensive Level 3 Transfers End
(in millions of dollars) of Year Earnings Income or Loss Purchases Sales Into Out of of Year
Fixed Maturity Securities
States, Municipalities, and
Political Subdivisions $ 175.1 $ — $21.0 $ — $ (1.4) $ — $ (54.6) $ 140.1
Foreign Governments 78.5 1.1 0.8 — (11.1) — — 69.3
Public Utilities 139.3 — 6.9 — (0.8) 199.9 (30.3) 315.0
Mortgage/Asset-Backed Securities 0.5 (0.2) 0.3 — (0.6) — — —
All Other Corporate Bonds 1,923.3 0.7 44.8 91.1 (147.7) 626.9 (1,113.8) 1,425.3
Redeemable Preferred Stocks 23.8 — 1.1 — — — — 24.9
Total Fixed Maturity Securities 2,340.5 1.6 74.9 91.1 (161.6) 826.8 (1,198.7) 1,974.6
Equity Securities 4.6 10.5 (0.2) — (13.5) — — 1.4
Embedded Derivative in Modified
Coinsurance Arrangement (53.2) 3.3 — — — — — (49.9)