CNO FINANCIAL GROUP, INC., 10-Q filed on 5/4/2012
Quarterly Report
DOCUMENT AND ENTITY INFORMATION
3 Months Ended
Mar. 31, 2012
Apr. 19, 2012
Document Information [Line Items]
 
 
Entity Registrant Name
CNO Financial Group, Inc. 
 
Entity Central Index Key
0001224608 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2012 
 
Current Fiscal Year End Date
--12-31 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q1 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Voluntary Filers
No 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Current Reporting Status
Yes 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
239,238,945 
CONSOLIDATED BALANCE SHEET (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Investments:
 
 
Fixed maturities, available for sale, at fair value (amortized cost: March 31, 2012 - $22,021.2; December 31, 2011 - $21,779.1)
$ 23,777.7 
$ 23,516.0 
Equity securities at fair value (cost: March 31, 2012 - $172.7; December 31, 2011 - $177.0)
176.5 
175.1 
Mortgage loans
1,546.7 
1,602.8 
Policy loans
277.8 
279.7 
Trading securities
122.3 
91.6 
Investments held by variable interest entities
564.7 
496.3 
Other invested assets
270.9 
202.8 
Total investments
26,736.6 
26,364.3 
Cash and cash equivalents - unrestricted
173.5 
436.0 
Cash and cash equivalents held by variable interest entities
65.8 
74.4 
Accrued investment income
313.6 
288.7 
Present value of future profits
675.4 
697.7 
Deferred acquisition costs
790.4 
797.1 
Reinsurance receivables
3,052.7 
3,091.1 
Income tax assets, net
819.9 
865.4 
Assets held in separate accounts
16.0 
15.0 
Other assets
402.3 
292.2 
Total assets
33,046.2 
32,921.9 
Liabilities for insurance products:
 
 
Interest-sensitive products
13,103.4 
13,165.5 
Traditional products
10,517.9 
10,482.7 
Claims payable and other policyholder funds
1,000.8 
1,034.3 
Liabilities related to separate accounts
16.0 
15.0 
Other liabilities
721.0 
556.3 
Investment borrowings
1,684.9 
1,676.5 
Borrowings related to variable interest entities
519.9 
519.9 
Notes payable - direct corporate obligations
799.3 
857.9 
Total liabilities
28,363.2 
28,308.1 
Commitments and contingencies
   
   
Shareholders' equity:
 
 
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: March 31, 2012 – 239,219,445; December 31, 2011 – 241,304,503)
2.4 
2.4 
Additional paid-in capital
4,345.6 
4,361.9 
Accumulated other comprehensive income
808.0 
781.6 
Accumulated deficit
(473.0)
(532.1)
Total shareholders' equity
4,683.0 
4,613.8 
Total liabilities and shareholders' equity
$ 33,046.2 
$ 32,921.9 
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEET (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Investments:
 
 
Fixed maturities, available for sale, amortized cost
$ 22,021.2 
$ 21,779.1 
Equity securities amortized cost
$ 172.7 
$ 177.0 
Shareholders' equity:
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
8,000,000,000 
8,000,000,000 
Common stock, shares issued
239,219,445 
241,304,503 
Common stock, shares outstanding
239,219,445 
241,304,503 
CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Revenues:
 
 
Insurance policy income
$ 686.3 
$ 667.2 
Net investment income (loss):
 
 
General account assets
345.2 
336.1 
Policyholder and reinsurer accounts and other special- purpose portfolios
65.6 
37.4 
Realized investment gains (losses):
 
 
Net realized investment gains, excluding impairment losses
30.8 
18.4 
Other-than-temporary impairment losses:
 
 
Total other-than-temporary impairment losses
(7.9)
(13.3)
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income
0 
0 
Net impairment losses recognized
(7.9)
(13.3)
Total realized gains (losses)
22.9 
5.1 
Fee revenue and other income
3.9 
3.4 
Total revenues
1,123.9 
1,049.2 
Benefits and expenses:
 
 
Insurance policy benefits
689.0 
683.2 
Interest expense
28.8 
29.2 
Amortization
86.6 
94.9 
Loss on extinguishment of debt
0.2 
1.4 
Other operating costs and expenses
227.0 
170.1 
Total benefits and expenses
1,031.6 
978.8 
Income before income taxes
92.3 
70.4 
Income tax expense:
 
 
Tax expense on period income
33.2 
25.0 
Net income
$ 59.1 
$ 45.4 
Basic:
 
 
Weighted average shares outstanding
240,895,000 
251,121,000 
Net income
$ 0.25 
$ 0.18 
Diluted:
 
 
Weighted average shares outstanding
297,343,000 
307,498,000 
Net income
$ 0.21 
$ 0.16 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Statement of Income and Comprehensive Income [Abstract]
 
 
Net income
$ 59.1 
$ 45.4 
Other comprehensive income, before tax:
 
 
Unrealized gains for the period
51.9 
48.5 
Amortization of present value of future profits and deferred acquisition costs for:
 
 
Unrealized gains during the period
(20.0)
(7.5)
Reduction in premium deficiencies that would exist if unrealized gains had been realized
30.3 
0 
Reclassification adjustments:
 
 
For net realized investment gains included in net income
(21.6)
(8.8)
For amortization of the present value of future profits and deferred acquisition costs related to net realized investment gains included in net income
1.1 
0.4 
Unrealized gains on investments
41.7 
32.6 
Deferred compensation plan
0.8 
0.3 
Other comprehensive income before tax
42.5 
32.9 
Income tax expense related to items of accumulated other comprehensive income
(16.1)
(12.3)
Other comprehensive income, net of tax
26.4 
20.6 
Total comprehensive income (loss)
$ 85.5 
$ 66.0 
PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Comprehensive income (loss), net of tax:
 
 
Change in unrealized appreciation (depreciation) of investments, applicable income tax expense
$ 14.3 
$ 10.8 
Change in noncredit component of impairment losses on fixed maturities, available for sale, applicable income tax expense
$ 1.8 
$ 1.5 
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $)
In Millions
Total
Common stock and additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
Balance (Scenario, Previously Reported [Member])
$ 4,325.3 
$ 4,426.7 
$ 238.3 
$ (339.7)
Balance (Scenario, Actual [Member])
3,811.6 
4,426.7 
252.7 
(867.8)
Cumulative effect of accounting change (adoption of ASU 2010-26) (Restatement Adjustment [Member])
(513.7)
0 
14.4 
(528.1)
Net income
45.4 
0 
0 
45.4 
Net income (Scenario, Previously Reported [Member])
53.9 
 
 
 
Net income (Scenario, Actual [Member])
45.4 
 
 
 
Change in unrealized appreciation (depreciation) of investments (net of applicable income tax expense)
17.9 
0 
17.9 
0 
Change in noncredit component of impairment losses on fixed maturities, available for sale (net of applicable income tax expense)
2.7 
0 
2.7 
0 
Stock option and restricted stock plans
1.9 
1.9 
0 
0 
Balance at Mar. 31, 2011
3,879.5 
4,428.6 
273.3 
(822.4)
Balance (Scenario, Previously Reported [Member])
5,032.6 
4,364.3 
625.5 
42.8 
Balance (Scenario, Actual [Member])
4,613.8 
4,364.3 
781.6 
(532.1)
Balance at Dec. 31, 2011
4,613.8 
 
 
 
Cumulative effect of accounting change (adoption of ASU 2010-26) (Restatement Adjustment [Member])
(418.8)
0 
156.1 
(574.9)
Net income
59.1 
0 
0 
59.1 
Net income (Scenario, Previously Reported [Member])
69.5 
 
 
 
Net income (Scenario, Actual [Member])
59.1 
 
 
 
Change in unrealized appreciation (depreciation) of investments (net of applicable income tax expense)
23.1 
0 
23.1 
0 
Change in noncredit component of impairment losses on fixed maturities, available for sale (net of applicable income tax expense)
3.3 
0 
3.3 
0 
Cost of shares acquired
(18.9)
(18.9)
0 
0 
Stock option and restricted stock plans
2.6 
2.6 
0 
0 
Balance (Scenario, Previously Reported [Member])
5,209.8 
 
 
 
Balance (Scenario, Actual [Member])
4,683.0 
 
 
 
Balance at Mar. 31, 2012
$ 4,683.0 
$ 4,348.0 
$ 808.0 
$ (473.0)
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Cash flows from operating activities:
 
 
Insurance policy income
$ 602.5 
$ 591.6 
Net investment income
306.7 
325.2 
Fee revenue and other income
3.9 
3.4 
Insurance policy benefits
(565.3)
(513.9)
Interest expense
(26.5)
(16.2)
Deferrable policy acquisition costs
(46.2)
(53.2)
Other operating costs
(193.2)
(180.9)
Taxes
(3.7)
(0.7)
Net cash provided by operating activities
78.2 
155.3 
Cash flows from investing activities:
 
 
Sales of investments
670.3 
1,248.1 
Maturities and redemptions of investments
417.1 
252.9 
Purchases of investments
(1,305.2)
(1,661.1)
Net sales (purchases) of trading securities
7.9 
(23.6)
Change in cash and cash equivalents held by variable interest entities
8.6 
(0.3)
Other
(9.8)
(5.3)
Net cash used by investing activities
(211.1)
(189.3)
Cash flows from financing activities:
 
 
Payments on notes payable
(59.4)
(50.0)
Issuance of common stock
0.1 
0 
Payments to repurchase common stock
(18.9)
0 
Amounts received for deposit products
346.6 
395.3 
Withdrawals from deposit products
(406.3)
(425.8)
Issuance of investment borrowings:
 
 
Federal Home Loan Bank
0 
67.0 
Payments on investment borrowings:
 
 
Federal Home Loan Bank
0 
(67.0)
Related to variable interest entities and other
(0.3)
(32.8)
Investment borrowings - repurchase agreements, net
8.6 
0 
Net cash used by financing activities
(129.6)
(113.3)
Net decrease in cash and cash equivalents
(262.5)
(147.3)
Cash and cash equivalents, beginning of period
436.0 
571.9 
Cash and cash equivalents, end of period
$ 173.5 
$ 424.6 
BUSINESS AND BASIS OF PRESENTATION
BUSINESS AND BASIS OF PRESENTATION
BUSINESS AND BASIS OF PRESENTATION

The following notes should be read together with the notes to the consolidated financial statements included in our 2011 Annual Report on Form 10-K.

CNO Financial Group, Inc., a Delaware corporation (“CNO”), is a holding company for a group of insurance companies operating throughout the United States that develop, market and administer health insurance, annuity, individual life insurance and other insurance products.  CNO became the successor to Conseco, Inc., an Indiana corporation (our “Predecessor”), in connection with our bankruptcy reorganization which became effective on September 10, 2003.  The terms “CNO Financial Group, Inc.”, the “Company”, “we”, “us”, and “our” as used in these financial statements refer to CNO and its subsidiaries or, when the context requires otherwise, our Predecessor and its subsidiaries.  We focus on serving the senior and middle-income markets, which we believe are attractive, underserved, high growth markets.  We sell our products through three distribution channels: career agents, independent producers (some of whom sell one or more of our product lines exclusively) and direct marketing.

Our unaudited consolidated financial statements reflect normal recurring adjustments that, in the opinion of management, are necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented.  As permitted by rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to quarterly reports on Form 10-Q, we have condensed or omitted certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  We have reclassified certain amounts from the prior periods to conform to the 2012 presentation.  These reclassifications have no effect on net income or shareholders’ equity.  Results for interim periods are not necessarily indicative of the results that may be expected for a full year.

As discussed in the note to the consolidated financial statements entitled "Recently Issued Accounting Standards", we have adopted the provisions of Financial Accounting Standards Update No. 2010-26 (“ASU 2010-26”), effective January 1, 2012. Pursuant to the guidance, we elected to adopt the provisions on a retrospective basis. Accordingly, all prior periods presented have been retrospectively adjusted.

The balance sheet at December 31, 2011, presented herein, has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.

When we prepare financial statements in conformity with GAAP, we are required to make estimates and assumptions that significantly affect reported amounts of various assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting periods.  For example, we use significant estimates and assumptions to calculate values for deferred acquisition costs, the present value of future profits, certain investments (including derivatives), assets and liabilities related to income taxes, liabilities for insurance products, liabilities related to litigation and guaranty fund assessment accruals.  If our future experience differs from these estimates and assumptions, our financial statements would be materially affected.

Our consolidated financial statements exclude the results of transactions between us and our consolidated affiliates, or among our consolidated affiliates.
INVESTMENTS
INVESTMENTS
INVESTMENTS

We classify our fixed maturity securities into one of three categories: (i) “available for sale” (which we carry at estimated fair value with any unrealized gain or loss, net of tax and related adjustments, recorded as a component of shareholders’ equity); (ii) “trading” (which we carry at estimated fair value with changes in such value recognized as net investment income (classified as investment income from policyholder and reinsurer accounts and other special-purpose portfolios)); or (iii) “held to maturity” (which we carry at amortized cost).  We had no fixed maturity securities classified as held to maturity during the periods presented in these financial statements.

The trading account includes: (i) investments purchased with the intent of selling in the near term to generate income on price changes; and (ii) investments supporting insurance liabilities (including investments backing the market strategies of our multibucket annuity products) and certain reinsurance agreements. The change in fair value of these securities is recognized in income from policyholder and reinsurer accounts and other special-purpose portfolios (a component of net investment income). Investment income from trading securities backing insurance liabilities and certain reinsurance agreements is substantially offset by the change in insurance policy benefits related to certain products and agreements.  Prior to June 30, 2011, certain of our trading securities were held to offset the income statement volatility caused by the effect of interest rate fluctuations on the value of embedded derivatives related to our fixed index annuity products.  During the second quarter of 2011, we sold this trading portfolio and invested the proceeds in higher yielding investments which were classified as available for sale. See the note entitled “Accounting for Derivatives” for further discussion regarding these embedded derivatives.  The trading account also includes certain fixed maturity securities containing embedded derivatives for which we have elected the fair value option. The change in value of these securities is recognized in realized investment gain (losses). Our trading securities totaled $122.3 million and $91.6 million at March 31, 2012 and December 31, 2011, respectively.

Accumulated other comprehensive income is primarily comprised of the net effect of unrealized appreciation (depreciation) on our investments.  These amounts, included in shareholders’ equity as of March 31, 2012 and December 31, 2011, were as follows (dollars in millions):

 
March 31,
2012
 
December 31,
2011
Net unrealized appreciation (depreciation) on fixed maturity securities, available for sale, on which an other-than-temporary impairment loss has been recognized
$
1.6

 
$
(4.4
)
Net unrealized gains (losses) on all other investments
1,757.5

 
1,733.2

Adjustment to present value of future profits (a)
(207.3
)
 
(214.8
)
Adjustment to deferred acquisition costs
(285.4
)
 
(289.3
)
Unrecognized net loss related to deferred compensation plan
(7.5
)
 
(8.3
)
Deferred income tax liabilities
(450.9
)
 
(434.8
)
Accumulated other comprehensive income
$
808.0

 
$
781.6

_________
(a)
The present value of future profits is the value assigned to the right to receive future cash flows from contracts existing at September 10, 2003 (the date our Predecessor emerged from bankruptcy).

At March 31, 2012, adjustments to the present value of future profits, deferred acquisition costs and deferred income tax assets included $(176.3) million, $(64.4) million and $86.7 million, respectively, for premium deficiencies that would exist on certain long-term health products if unrealized gains on the assets backing such products had been realized and the proceeds from our sales of such assets were invested at then current yields.

At March 31, 2012, the amortized cost, gross unrealized gains and losses, estimated fair value, other-than-temporary impairments in accumulated other comprehensive income of fixed maturities, available for sale, were as follows (dollars in millions):

 
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
Other-than-
temporary
impairments
included in
accumulated other
comprehensive
income
Corporate securities
$
14,574.1

 
$
1,425.3

 
$
(77.1
)
 
$
15,922.3

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
286.7

 
5.5

 
(3.1
)
 
289.1

 
—

States and political subdivisions
1,788.2

 
203.9

 
(8.2
)
 
1,983.9

 
—

Debt securities issued by foreign governments
.8

 
—

 
—

 
.8

 
—

Asset-backed securities
1,383.0

 
48.9

 
(24.9
)
 
1,407.0

 
—

Collateralized debt obligations
333.1

 
2.2

 
(2.9
)
 
332.4

 
—

Commercial mortgage-backed securities
1,399.7

 
103.5

 
(3.9
)
 
1,499.3

 
—

Mortgage pass-through securities
28.5

 
1.6

 
—

 
30.1

 
—

Collateralized mortgage obligations
2,227.1

 
94.2

 
(8.5
)
 
2,312.8

 
(10.8
)
Total fixed maturities, available for sale
$
22,021.2

 
$
1,885.1

 
$
(128.6
)
 
$
23,777.7

 
$
(10.8
)


The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at March 31, 2012, by contractual maturity.  Actual maturities will differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties.  In addition, structured securities (such as asset-backed securities, collateralized debt obligations, commercial mortgage-backed securities, mortgage pass-through securities and collateralized mortgage obligations, collectively referred to as “structured securities”) frequently include provisions for periodic principal payments and permit periodic unscheduled payments.

 
Amortized
cost
 
Estimated
fair
value
 
(Dollars in millions)
Due in one year or less
$
163.1

 
$
165.0

Due after one year through five years
1,443.3

 
1,542.1

Due after five years through ten years
4,534.1

 
4,901.1

Due after ten years
10,509.3

 
11,587.9

Subtotal
16,649.8

 
18,196.1

Structured securities
5,371.4

 
5,581.6

Total fixed maturities, available for sale
$
22,021.2

 
$
23,777.7



Net Realized Investment Gains (Losses)

During the first three months of 2012, we recognized net realized investment gains of $22.9 million, which were comprised of $27.4 million of net gains from the sales of investments (primarily fixed maturities) with proceeds of $.7 billion, the change in fair value of certain fixed maturity investments with embedded derivatives of $3.4 million, and $7.9 million of writedowns of investments for other than temporary declines in fair value recognized through net income.

During the first three months of 2011, we recognized net realized investment gains of $5.1 million, which were comprised of $18.4 million of net gains from the sales of investments (primarily fixed maturities) with proceeds of $1.2 billion and $13.3 million of writedowns of investments for other than temporary declines in fair value recognized through net income.

At March 31, 2012, fixed maturity securities in default or considered nonperforming had an aggregate amortized cost of $.4 million and a carrying value of $.5 million.

Our fixed maturity investments are generally purchased in the context of a long-term strategy to fund insurance liabilities, so we do not generally seek to generate short-term realized gains through the purchase and sale of such securities.  In certain circumstances, including those in which securities are selling at prices which exceed our view of their underlying economic value, or when it is possible to reinvest the proceeds to better meet our long-term asset-liability objectives, we may sell certain securities.

During the three months ended March 31, 2012, we sold $147.6 million of fixed maturity investments which resulted in gross investment losses (before income taxes) of $2.3 million.  We sell securities at a loss for a number of reasons including, but not limited to:  (i) changes in the investment environment; (ii) expectation that the market value could deteriorate further; (iii) desire to reduce our exposure to an asset class, an issuer or an industry; (iv) prospective or actual changes in credit quality; or (v) changes in expected cash flows.

There were no investments sold at a loss during the first three months of 2012 that had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis for more than 12 months prior to the sale of the investment.

We regularly evaluate all of our investments with unrealized losses for possible impairment.  Our assessment of whether unrealized losses are “other than temporary” requires significant judgment.  Factors considered include:  (i) the extent to which fair value is less than the cost basis; (ii) the length of time that the fair value has been less than cost; (iii) whether the unrealized loss is event driven, credit-driven or a result of changes in market interest rates or risk premium; (iv) the near-term prospects for specific events, developments or circumstances likely to affect the value of the investment; (v) the investment’s rating and whether the investment is investment-grade and/or has been downgraded since its purchase; (vi) whether the issuer is current on all payments in accordance with the contractual terms of the investment and is expected to meet all of its obligations under the terms of the investment; (vii) whether we intend to sell the investment or it is more likely than not that circumstances will require us to sell the investment before recovery occurs; (viii) the underlying current and prospective asset and enterprise values of the issuer and the extent to which the recoverability of the carrying value of our investment may be affected by changes in such values; (ix) projections of, and unfavorable changes in, cash flows on structured securities including mortgage-backed and asset-backed securities; (x) our best estimate of the value of any collateral; and (xi) other objective and subjective factors.

Future events may occur, or additional information may become available, which may necessitate future realized losses in our portfolio.  Significant losses could have a material adverse effect on our consolidated financial statements in future periods.

Impairment losses on equity securities are recognized in net income.  The manner in which impairment losses on fixed maturity securities, available for sale, are recognized in the financial statements is dependent on the facts and circumstances related to the specific security.  If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, the security is other-than-temporarily impaired and the full amount of the impairment is recognized as a loss through earnings.  If we do not expect to recover the amortized cost basis, we do not plan to sell the security, and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, the recognition of the other-than-temporary impairment is bifurcated.  We recognize the credit loss portion in net income and the noncredit loss portion in accumulated other comprehensive income.

We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security.  The present value is determined using the best estimate of future cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  The methodology and assumptions for establishing the best estimate of future cash flows vary depending on the type of security.

For most structured securities, cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity, prepayment speeds and structural support, including excess spread, subordination and guarantees.  For corporate bonds, cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using bond specific facts and circumstances including timing, secured interest and loss severity.  The previous amortized cost basis less the impairment recognized in net income becomes the security’s new cost basis.  We accrete the new cost basis to the estimated future cash flows over the expected remaining life of the security, except when the security is in default or considered nonperforming.

The remaining noncredit impairment, which is recorded in accumulated other comprehensive income, is the difference between the security’s estimated fair value and our best estimate of future cash flows discounted at the effective interest rate prior to impairment.  The remaining noncredit impairment typically represents changes in the market interest rates, current market liquidity and risk premiums.  As of March 31, 2012, other-than-temporary impairments included in accumulated other comprehensive income of $10.8 million (before taxes and related amortization) related to structured securities.

The following table summarizes the amount of credit losses recognized in earnings on fixed maturity securities, available for sale, held at the beginning of the period, for which a portion of the other-than-temporary impairment was also recognized in accumulated other comprehensive income for the three months ended March 31, 2012 and 2011 (dollars in millions):
 
Three months ended
 
March 31,
 
2012
 
2011
Credit losses on fixed maturity securities, available for sale, beginning of period
$
(2.0
)
 
$
(6.1
)
Add:  credit losses on other-than-temporary impairments not previously recognized
—

 
—

Less:  credit losses on securities sold
.1

 
4.3

Less:  credit losses on securities impaired due to intent to sell (a)
—

 
—

Add:  credit losses on previously impaired securities
—

 
—

Less:  increases in cash flows expected on previously impaired securities
—

 
—

Credit losses on fixed maturity securities, available for sale, end of period
$
(1.9
)
 
$
(1.8
)
__________
(a)
Represents securities for which the amount previously recognized in accumulated other comprehensive income was recognized in earnings because we intend to sell the security or we more likely than not will be required to sell the security before recovery of its amortized cost basis.

Gross Unrealized Investment Losses

Our investment strategy is to maximize, over a sustained period and within acceptable parameters of quality and risk, investment income and total investment return through active investment management. Accordingly, we may sell securities at a gain or a loss to enhance the projected total return of the portfolio as market opportunities change, to reflect changing perceptions of risk, or to better match certain characteristics of our investment portfolio with the corresponding characteristics of our insurance liabilities.

The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at March 31, 2012 (dollars in millions):

 
 
Less than 12 months
 
12 months or greater
 
Total
Description of securities
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
United States Treasury securities and obligations of United States government corporations and agencies
 
$
195.3

 
$
(3.1
)
 
$
—

 
$
—

 
$
195.3

 
$
(3.1
)
States and political subdivisions
 
4.1

 
(.3
)
 
126.4

 
(7.9
)
 
130.5

 
(8.2
)
Corporate securities
 
1,204.7

 
(38.9
)
 
388.5

 
(38.2
)
 
1,593.2

 
(77.1
)
Asset-backed securities
 
287.7

 
(6.7
)
 
211.8

 
(18.2
)
 
499.5

 
(24.9
)
Collateralized debt obligations
 
198.5

 
(2.7
)
 
11.0

 
(.2
)
 
209.5

 
(2.9
)
Commercial mortgage-backed securities
 
89.6

 
(2.0
)
 
29.2

 
(1.9
)
 
118.8

 
(3.9
)
Mortgage pass-through securities
 
.5

 
—

 
2.2

 
—

 
2.7

 
—

Collateralized mortgage obligations
 
331.9

 
(6.0
)
 
63.7

 
(2.5
)
 
395.6

 
(8.5
)
Total fixed maturities, available for sale
 
$
2,312.3

 
$
(59.7
)
 
$
832.8

 
$
(68.9
)
 
$
3,145.1

 
$
(128.6
)
Equity securities
 
$
3.5

 
$
(.3
)
 
$
—

 
$
—

 
$
3.5

 
$
(.3
)


The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2011 (dollars in millions):

 
 
Less than 12 months
 
12 months or greater
 
Total
Description of securities
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
United States Treasury securities and obligations of United States government corporations and agencies
 
$
9.1

 
$
—

 
$
.2

 
$
—

 
$
9.3

 
$
—

States and political subdivisions
 
6.9

 
(.2
)
 
155.4

 
(13.4
)
 
162.3

 
(13.6
)
Debt securities issued by foreign governments
 
.5

 
—

 
—

 
—

 
.5

 
—

Corporate securities
 
1,394.7

 
(57.0
)
 
466.2

 
(79.9
)
 
1,860.9

 
(136.9
)
Asset-backed securities
 
437.6

 
(14.5
)
 
147.5

 
(22.2
)
 
585.1

 
(36.7
)
Collateralized debt obligations
 
268.8

 
(6.3
)
 
1.7

 
—

 
270.5

 
(6.3
)
Commercial mortgage-backed securities
 
168.8

 
(5.2
)
 
33.0

 
(2.7
)
 
201.8

 
(7.9
)
Mortgage pass-through securities
 
1.2

 
—

 
2.2

 
(.1
)
 
3.4

 
(.1
)
Collateralized mortgage obligations
 
645.0

 
(20.8
)
 
29.7

 
(.6
)
 
674.7

 
(21.4
)
Total fixed maturities, available for sale
 
$
2,932.6

 
$
(104.0
)
 
$
835.9

 
$
(118.9
)
 
$
3,768.5

 
$
(222.9
)
Equity securities
 
$
41.6

 
$
(3.0
)
 
$
.4

 
$
—

 
$
42.0

 
$
(3.0
)


Based on management’s current assessment of investments with unrealized losses at March 31, 2012, the Company believes the issuers of the securities will continue to meet their obligations (or with respect to equity-type securities, the investment value will recover to its cost basis).  While we do not have the intent to sell securities with unrealized losses and it is not more likely than not that we will be required to sell securities with unrealized losses prior to their anticipated recovery, our intent on an individual security may change, based upon market or other unforeseen developments.  In such instances, if a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we had the intent to sell the security before its anticipated recovery.
EARNINGS PER SHARE
EARNINGS PER SHARE
EARNINGS PER SHARE

A reconciliation of net income and shares used to calculate basic and diluted earnings per share is as follows (dollars in millions and shares in thousands):
 
Three months ended
 
March 31,
 
2012
 
2011
Net income for basic earnings per share
$
59.1

 
$
45.4

Add:  interest expense on 7.0% Convertible Senior Debentures due 2016 (the “7.0% Debentures”), net of income taxes
3.7

 
3.7

Net income for diluted earnings per share
$
62.8

 
$
49.1

Shares:
 

 
 

Weighted average shares outstanding for basic earnings per share
240,895

 
251,121

Effect of dilutive securities on weighted average shares:
 

 
 

7% Debentures
53,367

 
53,367

Stock option and restricted stock plans
2,582

 
2,748

Warrants
499

 
262

Dilutive potential common shares
56,448

 
56,377

Weighted average shares outstanding for diluted earnings per share
297,343

 
307,498



Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period.  Restricted shares (including our performance shares) are not included in basic earnings per share until vested.  Diluted earnings per share reflect the potential dilution that could occur if outstanding stock options and warrants were exercised and restricted stock was vested.  The dilution from options, warrants and restricted shares is calculated using the treasury stock method.  Under this method, we assume the proceeds from the exercise of the options and warrants (or the unrecognized compensation expense with respect to restricted stock) will be used to purchase shares of our common stock at the average market price during the period, reducing the dilutive effect of the exercise of the options and warrants (or the vesting of the restricted stock). Initially, the 7.0% Debentures will be convertible into 182.1494 shares of our common stock for each $1,000 principal amount of 7.0% Debentures, which is equivalent to an initial conversion price of approximately $5.49 per share. The conversion rate is subject to adjustment following the occurrence of certain events in accordance with the terms of the 7.0% Debentures.

BUSINESS SEGMENTS
BUSINESS SEGMENTS
BUSINESS SEGMENTS

The Company manages its business through the following operating segments: Bankers Life, Washington National and Colonial Penn, which are defined on the basis of product distribution; Other CNO Business, comprised primarily of products we no longer sell actively; and corporate operations, comprised of holding company activities and certain noninsurance company businesses.  

We measure segment performance by excluding realized investment gains (losses) and fair value changes in embedded derivative liabilities because we believe that this performance measure is a better indicator of the ongoing business and trends in our business.  Our primary investment focus is on investment income to support our liabilities for insurance products as opposed to the generation of realized investment gains (losses), and a long-term focus is necessary to maintain profitability over the life of the business.

Realized investment gains (losses) and fair value changes in embedded derivative liabilities depend on market conditions and do not necessarily relate to the underlying business of our segments.  Realized investment gains (losses) and fair value changes in embedded derivative liabilities may affect future earnings levels since our underlying business is long-term in nature and changes in our investment portfolio may impact our ability to earn the assumed interest rates needed to maintain the profitability of our business.

Operating information by segment was as follows (dollars in millions):
 
Three months ended
 
March 31,
 
2012
 
2011
Revenues:
 
 
 
Bankers Life:
 
 
 
Insurance policy income:
 
 
 
Annuities
$
7.2

 
$
8.4

Health
334.1

 
339.8

Life
65.2

 
51.8

Net investment income (a)
234.9

 
209.6

Fee revenue and other income (a)
2.9

 
2.3

Total Bankers Life revenues
644.3

 
611.9

Washington National:
 

 
 

Insurance policy income:
 

 
 

Health
142.4

 
140.2

Life
4.3

 
4.1

Other
.7

 
1.1

Net investment income (a)
50.0

 
46.3

Fee revenue and other income (a)
.2

 
.3

Total Washington National revenues
197.6

 
192.0

Colonial Penn:
 

 
 

Insurance policy income:
 

 
 

Health
1.4

 
1.6

Life
52.0

 
48.7

Net investment income (a)
10.0

 
10.3

Fee revenue and other income (a)
.2

 
.2

Total Colonial Penn revenues
63.6

 
60.8

Other CNO Business:
 

 
 

Insurance policy income:
 

 
 

Annuities
2.5

 
2.3

Health
6.7

 
7.3

Life
69.6

 
61.3

Other
.2

 
.6

Net investment income (a)
92.7

 
94.7

Total Other CNO Business revenues
171.7

 
166.2

Corporate operations:
 

 
 

Net investment income
23.2

 
12.6

Fee and other income
.6

 
.6

Total corporate revenues
23.8

 
13.2

Total revenues
1,101.0

 
1,044.1


(continued on next page)
(continued from previous page)
 
Three months ended
 
March 31,
 
2012
 
2011
Expenses:
 
 
 
Bankers Life:
 
 
 
Insurance policy benefits
$
420.9

 
$
404.8

Amortization
56.9

 
68.5

Interest expense on investment borrowings
1.4

 
1.2

Other operating costs and expenses
94.6

 
75.2

Total Bankers Life expenses
573.8

 
549.7

Washington National:
 

 
 

Insurance policy benefits
115.7

 
112.2

Amortization
12.7

 
13.4

Interest expense on investment borrowings
.7

 
—

Other operating costs and expenses
43.8

 
42.1

Total Washington National expenses
172.9

 
167.7

Colonial Penn:
 

 
 

Insurance policy benefits
42.1

 
38.7

Amortization
3.7

 
4.0

Other operating costs and expenses
27.6

 
23.8

Total Colonial Penn expenses
73.4

 
66.5

Other CNO Business:
 

 
 

Insurance policy benefits
121.9

 
127.5

Amortization
7.5

 
8.6

Interest expense on investment borrowings
5.1

 
4.9

Other operating costs and expenses
39.5

 
17.8

Total Other CNO Business expenses
174.0

 
158.8

Corporate operations:
 

 
 

Interest expense on corporate debt
17.5

 
20.6

Interest expense on borrowings of variable interest entities
4.0

 
2.5

Interest expense on investment borrowings
.1

 
—

Loss on extinguishment of debt
.2

 
1.4

Other operating costs and expenses
21.5

 
11.2

Total corporate expenses
43.3

 
35.7

Total expenses
1,037.4

 
978.4

Income (loss) before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes:
 

 
 
Bankers Life
70.5

 
62.2

Washington National
24.7

 
24.3

Colonial Penn
(9.8
)
 
(5.7
)
Other CNO Business
(2.3
)
 
7.4

Corporate operations
(19.5
)
 
(22.5
)
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
$
63.6

 
$
65.7

___________________
(a)
It is not practicable to provide additional components of revenue by product or services.

A reconciliation of segment revenues and expenses to consolidated revenues and expenses is as follows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Total segment revenues
$
1,101.0

 
$
1,044.1

Net realized investment gains
22.9

 
5.1

Consolidated revenues
$
1,123.9

 
$
1,049.2

 
 
 
 
Total segment expenses
$
1,037.4

 
$
978.4

Insurance policy benefits - fair value changes in embedded derivative liabilities
(11.6
)
 
—

Amortization related to fair value changes in embedded derivative liabilities
4.7

 
—

Amortization related to net realized investment gains
1.1

 
.4

Consolidated expenses
$
1,031.6

 
$
978.8

ACCOUNTING FOR DERIVATIVES
ACCOUNTING FOR DERIVATIVES
ACCOUNTING FOR DERIVATIVES

Our fixed index annuity products provide a guaranteed minimum rate of return and a higher potential return that is based on a percentage (the “participation rate”) of the amount of increase in the value of a particular index, such as the Standard & Poor’s 500 Index, over a specified period.  Typically, on each policy anniversary date, a new index period begins.  We are generally able to change the participation rate at the beginning of each index period during a policy year, subject to contractual minimums.  We typically buy call options (including call spreads) referenced to the applicable indices in an effort to offset or hedge potential increases to policyholder benefits resulting from increases in the particular index to which the policy’s return is linked.  We reflect changes in the estimated fair value of these options in net investment income (classified as investment income from policyholder and reinsurer accounts and other special-purpose portfolios).  Net investment gains (losses) related to fixed index products were $41.4 million and $26.7 million in the three months ended March 31, 2012 and 2011, respectively. These amounts were substantially offset by a corresponding change to insurance policy benefits.  The estimated fair value of these options was $88.6 million and $37.9 million at March 31, 2012 and December 31, 2011, respectively.  We classify these instruments as other invested assets.

The Company accounts for the options attributed to the policyholder for the estimated life of the annuity contract as embedded derivatives.  The expected future cost of options on fixed index annuity products is used to determine the value of embedded derivatives.  The Company purchases options to hedge liabilities for the next policy year on each policy anniversary date and must estimate the fair value of the forward embedded options related to the policies.  These accounting requirements often create volatility in the earnings from these products.  We record the changes in the fair values of the embedded derivatives in current earnings as a component of insurance policy benefits.  The fair value of these derivatives, which are classified as “liabilities for interest-sensitive products”, was $704.3 million at March 31, 2012 and $666.3 million at December 31, 2011. Prior to June 30, 2011, we maintained a specific block of investments in our trading securities account (which we carried at estimated fair value with changes in such value recognized as investment income from policyholder and reinsurer accounts and other special-purpose portfolios) to offset the income statement volatility caused by the effect of interest rate fluctuations on the value of embedded derivatives related to our fixed index annuity products.  During the second quarter of 2011, we sold this trading portfolio, which will result in increased volatility in future earnings since the volatility caused by the accounting requirements to record embedded options at fair value will no longer be offset.

If the counterparties for the call options we hold fail to meet their obligations, we may have to recognize a loss.  We limit our exposure to such a loss by diversifying among several counterparties believed to be strong and creditworthy.  At March 31, 2012, substantially all of our counterparties were rated “BBB+” or higher by Standard & Poor’s Corporation (“S&P”).

Certain of our reinsurance payable balances contain embedded derivatives.  Such derivatives had an estimated fair value of $3.4 million and $3.5 million at March 31, 2012 and December 31, 2011, respectively.  We record the change in the fair value of these derivatives as a component of investment income (classified as investment income from policyholder and reinsurer accounts and other special-purpose portfolios).  We maintain the investments related to these agreements in our trading securities account, which we carry at estimated fair value with changes in such value recognized as investment income (also classified as investment income from policyholder and reinsurer accounts and other special-purpose portfolios).  The change in value of these trading securities offsets the change in value of the embedded derivatives.

We purchase certain fixed maturity securities that contain embedded derivatives that are required to be bifurcated from the instrument and held at fair value on the consolidated balance sheet. For certain of these securities, we have elected the fair value option to carry the entire security at fair value with changes in fair value reported in net income for operational ease.

REINSURANCE
REINSURANCE
REINSURANCE

The cost of reinsurance ceded totaled $57.2 million and $60.4 million in the first quarters of 2012 and 2011, respectively. We deduct this cost from insurance policy income.  Reinsurance recoveries netted against insurance policy benefits totaled $61.6 million and $62.5 million in the first quarters of 2012 and 2011, respectively.

From time-to-time, we assume insurance from other companies.  Any costs associated with the assumption of insurance are amortized consistent with the method used to amortize deferred acquisition costs.  Reinsurance premiums assumed totaled $15.9 million and $20.4 million in the first quarters of 2012 and 2011, respectively.  Reinsurance premiums included amounts assumed pursuant to marketing and quota-share agreements with Coventry Health Care (“Coventry”) of $10.8 million and $14.4 million in the first quarters of 2012 and 2011, respectively.

See the note entitled “Accounting for Derivatives” for a discussion of the derivative embedded in the payable related to certain modified coinsurance agreements.

INCOME TAXES
INCOME TAXES
INCOME TAXES

The components of income tax expense were as follows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Current tax expense
$
3.3

 
$
3.1

Deferred tax provision
29.9

 
21.9

Total income tax expense
$
33.2

 
$
25.0



A reconciliation of the U.S. statutory corporate tax rate to the effective rate reflected in the consolidated statement of operations is as follows:
 

Three months ended

March 31,
 
2012
 
2011
U.S. statutory corporate rate
35.0
 %
 
35.0
 %
Other nondeductible benefits
1.2

 
(1.0
)
State taxes
1.1

 
.7

Provision for tax issues, tax credits and other
(1.3
)
 
.8

Effective tax rate
36.0
 %
 
35.5
 %


The components of the Company’s income tax assets and liabilities were as follows (dollars in millions):
 
March 31,
2012
 
December 31,
2011
Deferred tax assets:
 
 
 
Net federal operating loss carryforwards attributable to:
 
 
 
Life insurance subsidiaries
$
545.1

 
$
583.0

Non-life companies
863.6

 
862.2

Net state operating loss carryforwards
16.6

 
16.8

Tax credits
34.8

 
32.6

Capital loss carryforwards
331.1

 
342.3

Deductible temporary differences:
 

 
 

Insurance liabilities
764.8

 
744.4

Other
46.8

 
64.8

Gross deferred tax assets
2,602.8

 
2,646.1

Deferred tax liabilities:
 

 
 

Investments
(25.8
)
 
(24.2
)
Present value of future profits and deferred acquisition costs
(348.4
)
 
(363.7
)
Unrealized appreciation on investments
(450.9
)
 
(434.8
)
Gross deferred tax liabilities
(825.1
)
 
(822.7
)
Net deferred tax assets before valuation allowance
1,777.7

 
1,823.4

Valuation allowance
(938.4
)
 
(938.4
)
Net deferred tax assets
839.3

 
885.0

Current income taxes accrued
(19.4
)
 
(19.6
)
Income tax assets, net
$
819.9

 
$
865.4



Our income tax expense includes deferred income taxes arising from temporary differences between the financial reporting and tax bases of assets and liabilities, capital loss carryforwards and net operating loss carryforwards (“NOLs”). Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which temporary differences are expected to be recovered or paid.  The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period when the changes are enacted.

A reduction of the net carrying amount of deferred tax assets by establishing a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. In assessing the need for a valuation allowance, all available evidence, both positive and negative, shall be considered to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. This assessment requires significant judgment and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of carryforward periods, our experience with operating loss and tax credit carryforwards expiring unused, and tax planning strategies. We evaluate the need to establish a valuation allowance for our deferred income tax assets on an ongoing basis. The realization of our deferred income tax assets depends upon generating sufficient future taxable income during the periods in which our temporary differences become deductible and before our capital loss carryforwards and NOLs expire.

Recovery of our deferred tax assets is dependent on achieving the future taxable income used in our deferred tax valuation model and failure to do so would result in an increase in the valuation allowance in a future period.  Any future increase in the valuation allowance may result in additional income tax expense and reduce shareholders’ equity, and such an increase could have a significant impact upon our earnings in the future.  In addition, the use of the Company’s NOLs is dependent, in part, on whether the Internal Revenue Service (the “IRS”) takes an adverse position in the future regarding the tax position we have taken in our tax returns with respect to the allocation of cancellation of indebtedness income ("CODI") resulting from the bankruptcy of our Predecessor and the classification of the loss we recognized as a result of the transfer of the stock of Senior Health Insurance Company of Pennsylvania (“Senior Health”) to Senior Health Care Oversight Trust, an independent trust (the “Independent Trust”).

The Internal Revenue Code (the “Code”) limits the extent to which losses realized by a non-life entity (or entities) may offset income from a life insurance company (or companies) to the lesser of:  (i) 35 percent of the income of the life insurance company; or (ii) 35 percent of the total loss of the non-life entities (including NOLs of the non-life entities).  There is no similar limitation on the extent to which losses realized by a life insurance entity (or entities) may offset income from a non-life entity (or entities).

Section 382 of the Code imposes limitations on a corporation’s ability to use its NOLs when the company undergoes an ownership change.  Future transactions and the timing of such transactions could cause an ownership change for Section 382 income tax purposes.  Such transactions may include, but are not limited to, additional repurchases or issuances of common stock (including upon conversion of our outstanding 7.0% Debentures), or acquisitions or sales of shares of CNO stock by certain holders of our shares, including persons who have held, currently hold or may accumulate in the future five percent or more of our outstanding common stock for their own account.  Many of these transactions are beyond our control.  If an additional ownership change were to occur for purposes of Section 382, we would be required to calculate an annual restriction on the use of our NOLs to offset future taxable income.  The annual restriction would be calculated based upon the value of CNO’s equity at the time of such ownership change, multiplied by a federal long-term tax exempt rate (3.47 percent at March 31, 2012), and the annual restriction could effectively eliminate our ability to use a substantial portion of our NOLs to offset future taxable income.  We regularly monitor ownership change (as calculated for purposes of Section 382) and, as of March 31, 2012, we were below the 50 percent ownership change level that would trigger further impairment of our ability to utilize our NOLs.

As of March 31, 2012, we had $4.0 billion of federal NOLs and $.9 billion of capital loss carryforwards, which expire as follows (dollars in millions):

Year of expiration
 
Net operating loss carryforwards (a)
 
Capital loss
 
Total loss
 
 
Life
 
Non-life
 
carryforwards
 
carryforwards
2013
 
$
—

 
 
 
$
—

 
 
 
$
908.3

 
(b)
 
$
908.3

2014
 
—

 
 
 
—

 
 
 
28.7

 
 
 
28.7

2015
 
—

 
 
 
—

 
 
 
8.9

 
 
 
8.9

2018
 
1,323.8

 
(a)
 
—

 
 
 
—

 
 
 
1,323.8

2021
 
29.6

 
 
 
—

 
 
 
—

 
 
 
29.6

2022
 
204.1

 
 
 
—

 
 
 
—

 
 
 
204.1

2023
 
—

 
(b)
 
1,975.2

 
(a)
 
—

 
 
 
1,975.2

2024
 
—

 
 
 
3.2

 
 
 
—

 
 
 
3.2

2025
 
—

 
 
 
118.8

 
 
 
—

 
 
 
118.8

2027
 
—

 
 
 
216.8

 
 
 
—

 
 
 
216.8

2028
 
—

 
 
 
.5

 
 
 
—

 
 
 
.5

2029
 
—

 
 
 
148.8

 
 
 
—

 
 
 
148.8

2031
 
—

 
 
 
4.0

 
 
 
—

 
 
 
4.0

Total
 
$
1,557.5

 
 
 
$
2,467.3

 
 
 
$
945.9

 
 
 
$
4,970.7

 
_________________________
(a)
The allocation of the NOLs summarized above assumes the IRS does not take an adverse position in the future regarding the tax position we plan to take in our tax returns with respect to the allocation of CODI.  If the IRS disagrees with the tax position we plan to take with respect to the allocation of CODI, and their position prevails, approximately $631 million of the NOLs expiring in 2018 would be characterized as non-life NOLs.
(b)
Capital loss carryforwards expiring in 2013 include a $742 million loss on our investment in Senior Health which was worthless when it was transferred to the Independent Trust in 2008. Due to uncertainties in the Code, we have reflected this loss as an ordinary loss in our tax return. If classifying this loss as ordinary is ultimately determined to be correct, capital loss carryforwards expiring in 2013 would decrease and life NOLs expiring in 2023 would increase by $742 million.

We had deferred tax assets related to NOLs for state income taxes of $16.6 million and $16.8 million at March 31, 2012 and December 31, 2011, respectively.  The related state NOLs are available to offset future state taxable income in certain states through 2019.

Tax years 2008 through 2010 are open to examination by the IRS.  The Company’s various state income tax returns are generally open for tax years 2008 through 2010 based on the individual state statutes of limitation. Generally, for tax years which generate net operating losses, capital losses or tax credit carryforwards, the statute of limitations does not close until the expiration of the statute of limitations for the tax year in which such carryforwards are utilized.
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS

The following notes payable were direct corporate obligations of the Company as of March 31, 2012 and December 31, 2011 (dollars in millions):

 
March 31,
2012
 
December 31,
2011
7.0% Debentures
$
293.0

 
$
293.0

Senior Secured Credit Agreement (as defined below)
245.8

 
255.2

9.0% Senior Secured Notes due January 2018 (the “9.0% Senior Secured Notes”)
275.0

 
275.0

Senior Health Note due November 12, 2013 (the “Senior Health Note”)
—

 
50.0

Unamortized discount on 7.0% Debentures
(12.4
)
 
(12.9
)
Unamortized discount on Senior Secured Credit Agreement
(2.1
)
 
(2.4
)
Direct corporate obligations
$
799.3

 
$
857.9



In March 2012, we amended our senior secured term loan facility maturing on September 30, 2016 (the "Senior Secured Credit Agreement"). The changes to the Senior Secured Credit Agreement included:

(i)
a change in the definition of “Total Capitalization” (used to calculate compliance with the Debt to Total Capitalization Ratio covenant) to provide that any change to the Company's shareholders' equity resulting from the adoption by the Company of ASU 2010-26, related to the accounting for deferred acquisition costs, shall be disregarded for the purpose of such covenant to the extent the Company going forward quantifies the impact of ASU 2010-26 for each fiscal quarter or fiscal year and the cumulative impact since its adoption; and

(ii)
an increase in the cap on investments in “Capital Stock” (as defined in the amended credit agreement) from 1 percent to 3 percent.

In March 2012, as required under the terms of the Senior Secured Credit Agreement, we made a mandatory prepayment of $9.4 million due to our repurchase of $18.9 million of our common stock in the first quarter of 2012. As a result of the repayment, we recognized a loss on the extinguishment of debt totaling $.2 million representing the write-off of unamortized discount and issuance costs associated with the Senior Secured Credit Agreement.

In March 2012, we also paid in full the remaining $50.0 million principal balance on the Senior Health Note, which had been scheduled to mature in November 2013. The repayment in full of the Senior Health Note removes the previous restriction on our ability to pay cash dividends on our common stock.

The Senior Secured Credit Agreement requires the Company to maintain:  (i) a debt to total capitalization ratio of not more than 30 percent (such ratio, calculated in accordance with the Senior Secured Credit Agreement, was 16.1 percent at March 31, 2012); (ii) an interest coverage ratio of not less than 2.00 to 1.00 for each rolling four quarters (such ratio was 5.13 to 1.00 for the rolling four quarters ended March 31, 2012); (iii) an aggregate ratio of total adjusted capital to company action level risk-based capital for the Company’s insurance subsidiaries of not less than 250 percent (such ratio was 360 percent at March 31, 2012); and (iv) a combined statutory capital and surplus for the Company’s insurance subsidiaries of at least $1,200.0 million (combined statutory capital and surplus at March 31, 2012, was $1,793.2 million). The Company is in compliance with all debt covenants as of March 31, 2012.

The scheduled repayment of our direct corporate obligations was as follows at March 31, 2012 (dollars in millions):

Year ending March 31,
 
2013
$
33.8

2014
60.0

2015
77.5

2016
74.5

2017
293.0

Thereafter
275.0

 
$
813.8



We may prepay, in whole or in part, the Senior Secured Credit Agreement, together with any accrued and unpaid interest, with prior notice but without premium or penalty in minimum amounts of $1.0 million or any multiple thereof.

Mandatory prepayments of the Senior Secured Credit Agreement will be required in an amount equal to: (i) 100 percent of the net cash proceeds from certain asset sales or casualty events; (ii) 100 percent of the net cash proceeds received by the Company or any of its subsidiaries from certain debt issuances; (iii) 50 percent of the net cash proceeds received from certain equity issuances; and (iv) 100 percent of the amount of certain restricted payments made (including any common stock dividends and share repurchases) as defined in the Senior Secured Credit Agreement provided that if, as of the end of the fiscal quarter immediately preceding such restricted payment, the debt to total capitalization ratio is: (i) equal to or less than 17.5 percent, but greater than 12.5 percent, the prepayment requirement shall be reduced by one-half; or (ii) equal to or less than 12.5 percent, the prepayment requirement shall not apply.

Notwithstanding the foregoing, no mandatory prepayments pursuant to items (i) or (iii) in the preceding paragraph shall be required if: (x) the debt to total capitalization ratio is equal or less than 20 percent; and (y) either (A) the financial strength rating of certain insurance subsidiaries is equal or better than A- (stable) from A.M. Best Company ("A.M. Best") or (B) the Senior Secured Credit Agreement is rated equal or better than BBB- (stable) from S&P and Baa3 (stable) by Moody's Investor Services, Inc. ("Moody's").

The 9.0% Senior Secured Notes were issued pursuant to an Indenture, dated as of December 21, 2010 (the “Indenture”), by and among the Company, the Subsidiary Guarantors and Wilmington Trust FSB, as trustee and collateral agent (“Wilmington”). The Indenture contains covenants that, among other things, limit (subject to certain exceptions) the Company's ability and the ability of the Company's Restricted Subsidiaries (as defined in the Indenture) to:

•
incur or guarantee additional indebtedness or issue preferred stock;
•
pay dividends or make other distributions to shareholders;
•
purchase or redeem capital stock or subordinated indebtedness;
•
make certain investments;
•
create liens;
•
incur restrictions on the Company's ability and the ability of the Restricted Subsidiaries to pay dividends or make
•
other payments to the Company;
•
sell assets, including capital stock of the Company's subsidiaries;
•
consolidate or merge with or into other companies or transfer all or substantially all of the Company's assets; and
•
engage in transactions with affiliates.

Under the Indenture, the Company can make Restricted Payments (as such term is defined in the Indenture) up to a calculated limit, provided that the Company's pro forma risk-based capital ratio exceeds 225% after giving effect to the Restricted Payment and certain other conditions are met. Restricted Payments include, among other items, stock repurchases, common stock dividends and investments in excess of $75 million made at the holding company level that are other than cash and cash equivalents. The limit of Restricted Payments permitted under the Indenture is the sum of (x) 50% of the Company's “Consolidated Net Income” (as defined in the Indenture) for the period (taken as one accounting period) from January 1, 2011 to the end of the Company's most recently ended fiscal quarter for which financial statements are available at the time of such Restricted Payment and (y) certain other amounts. Based on the Company's Consolidated Net Income through March 31, 2012, the Company could make additional Restricted Payments under this Indenture covenant of approximately $121 million.
INVESTMENT BORROWINGS
INVESTMENT BORROWINGS
INVESTMENT BORROWINGS

Three of the Company’s insurance subsidiaries (Conseco Life Insurance Company (“Conseco Life”), Washington National Insurance Company and Bankers Life and Casualty Company ("Bankers Life")) are members of the Federal Home Loan Bank (“FHLB”).  As members of the FHLB, Conseco Life, Washington National Insurance Company and Bankers Life have the ability to borrow on a collateralized basis from the FHLB.  Conseco Life, Washington National Insurance Company and Bankers Life are required to hold certain minimum amounts of FHLB common stock as a condition of membership in the FHLB, and additional amounts based on the amount of the borrowings.  At March 31, 2012, the carrying value of the FHLB common stock was $82.5 million.  As of March 31, 2012, collateralized borrowings from the FHLB totaled $1.7 billion and the proceeds were used to purchase fixed maturity securities.  The borrowings are classified as investment borrowings in the accompanying consolidated balance sheet.  The borrowings are collateralized by investments with an estimated fair value of $2.1 billion at March 31, 2012, which are maintained in a custodial account for the benefit of the FHLB.  Such investments are classified as fixed maturities, available for sale, in our consolidated balance sheet.  Interest expense of $7.2 million and $6.0 million in the first three months of 2012 and 2011, respectively, was recognized related to the borrowings.

The following summarizes the terms of the borrowings (dollars in millions):

Amount
 
Maturity
 
Interest rate at
borrowed
 
date
 
March 31, 2012
$
100.0

 
October 2013
 
Variable rate – 0.572%
100.0

 
November 2013
 
Variable rate – 0.583%
67.0

 
February 2014
 
Fixed rate – 1.830%
50.0

 
August 2014
 
Variable rate – 0.633%
100.0

 
September 2015
 
Variable rate – 0.853%
150.0

 
October 2015
 
Variable rate – 0.592%
100.0

 
November 2015
 
Fixed rate – 4.890%
146.0

 
November 2015
 
Fixed rate – 5.300%
100.0

 
December 2015
 
Fixed rate – 4.710%
100.0

 
June 2016
 
Variable rate – 0.682%
75.0

 
June 2016
 
Variable rate – 0.630%
75.0

 
August 2016
 
Variable rate – 0.701%
100.0

 
October 2016
 
Variable rate – 0.761%
50.0

 
November 2016
 
Variable rate – 0.750%
50.0

 
November 2016
 
Variable rate – 0.712%
100.0

 
June 2017
 
Variable rate – 0.763%
50.0

 
August 2017
 
Variable rate – 0.703%
100.0

 
October 2017
 
Variable rate – 1.002%
37.0

 
November 2017
 
Fixed rate – 3.750%
$
1,650.0

 
 
 
 


The variable rate borrowings are pre-payable on each interest reset date without penalty.  The fixed rate borrowings are pre-payable subject to payment of a yield maintenance fee based on current market interest rates.  At March 31, 2012, the aggregate fee to prepay all fixed rate borrowings was $52.4 million.

As part of our investment strategy, we may enter into repurchase agreements to increase our investment return. We account for these transactions as collateralized borrowings, where the amount borrowed is equal to the sales price of the underlying securities. Repurchase agreements involve a sale of securities and an agreement to repurchase the same securities at a later date at an agreed-upon price. Such borrowings totaled $33.4 million at March 31, 2012. The borrowings mature as follows: $29.4 million - within 30 days; and $4.0 million - between 30 and 90 days. These borrowings were collateralized by investment securities (primarily collateralized mortgage obligations) with fair values approximately equal to the loan value. The primary risks associated with short-term collateralized borrowings are: (i) a substantial decline in the market value of the margined security; and (ii) that a counterparty may be unable to perform under the terms of the contract or be unwilling to extend such financing in future periods especially if the liquidity or value of the margined security has declined. Exposure is limited to any depreciation in value of the related securities.

At March 31, 2012, investment borrowings consisted of:  (i) collateralized borrowings from the FHLB of $1.7 billion; (ii) repurchase agreements of $33.4 million; and (iii) other borrowings of $1.4 million.

At December 31, 2011, investment borrowings consisted of:  (i) collateralized borrowings from the FHLB of $1.7 billion; (ii) repurchase agreements of $24.8 million; and (iii) other borrowings of $1.7 million.
CHANGES IN COMMON STOCK
CHANGES IN COMMON STOCK
CHANGES IN COMMON STOCK

Changes in the number of shares of common stock outstanding were as follows (shares in thousands):

Balance, December 31, 2011
241,305

 
 
Treasury stock purchased and retired
(2,437
)
 
 
Stock options exercised
30

 
 
Restricted stock vested
321

 
(a)
Balance, March 31, 2012
239,219

 
 
________
(a)
Such amount was reduced by 142 thousand shares which were tendered to the Company for the payment of federal and state taxes owed on the vesting of restricted stock.

In May 2011, the Company announced a common share repurchase program of up to $100.0 million of the Company's outstanding common stock. In February 2012, the Company announced that its board of directors had approved an additional $100.0 million to repurchase the Company's outstanding common stock. In the first three months of 2012, we repurchased 2.4 million shares of common stock for $18.9 million pursuant to the program. The Company has remaining repurchase authority of $111.3 million as of March 31, 2012.
SALES INDUCEMENTS
SALES INDUCEMENTS
SALES INDUCEMENTS

Certain of our annuity products offer sales inducements to contract holders in the form of enhanced crediting rates or bonus payments in the initial period of the contract.  Certain of our life insurance products offer persistency bonuses credited to the contract holders balance after the policy has been outstanding for a specified period of time.  These enhanced rates and persistency bonuses are considered sales inducements in accordance with GAAP.  Such amounts are deferred and amortized in the same manner as deferred acquisition costs.  Sales inducements deferred totaled $.9 million and $4.1 million during the three months ended March 31, 2012 and 2011, respectively.  Amounts amortized totaled $7.3 million and $8.1 million during the three months ended March 31, 2012 and 2011, respectively.  The unamortized balance of deferred sales inducements at March 31, 2012 and December 31, 2011 was $142.8 million and $149.2 million, respectively.  The balance of insurance liabilities for persistency bonus benefits was $43.4 million and $50.0 million at March 31, 2012 and December 31, 2011, respectively.
RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ISSUED ACCOUNTING STANDARDS

Accounting Standard Adopted on a Retrospective Basis

In October 2010, the Financial Accounting Standards Board ("FASB") issued authoritative guidance that modified the definition of the types of costs incurred by insurance entities that could be capitalized in the acquisition of new and renewal contracts.  The guidance impacts the timing of GAAP reported financial results, but has no impact on cash flows, statutory financial results or the ultimate profitability of the business.

The guidance specifies that an insurance entity shall only capitalize incremental direct costs related to the successful acquisition of new or renewal insurance contracts.  The guidance also states that advertising costs should be included in deferred acquisition costs only if the capitalization criteria in the direct-response advertising guidance is met.  The guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011. As permitted by the guidance, we elected to apply the provisions on a retrospective basis. The guidance reduced the balance of deferred acquisition costs, its amortization and the amount of costs capitalized. We are able to defer most commission payments, plus other costs directly related to the production of new business. The change did not impact the balance of the present value of future profits. Therefore, in contrast to the reduction in amortization of deferred acquisition costs, there was no change in the amortization of the present value of future profits.

The adoption of ASU 2010-26 had the following impact on our consolidated balance sheet and consolidated statement of operations as of and for the three months ended March 31, 2012 (dollars in millions, except per share amounts):

 
March 31, 2012
 
Amounts prior to adoption of ASU 2010-26
 
Effect of adoption of ASU 2010-26
 
As reported
Deferred acquisition costs
$
1,580.4

 
$
(790.0
)
 
$
790.4

Income tax assets, net
525.0

 
294.9

 
819.9

Other assets
426.2

 
(23.9
)
 
402.3

Total assets
33,565.2

 
(519.0
)
 
33,046.2

 
 
 
 
 
 
Other liabilities
713.2

 
7.8

 
721.0

Total liabilities
28,355.4

 
7.8

 
28,363.2

 
 
 
 
 
 
Accumulated other comprehensive income
749.5

 
58.5

 
808.0

Retained earnings (accumulated deficit)
112.3

 
(585.3
)
 
(473.0
)
Total shareholders' equity
5,209.8

 
(526.8
)
 
4,683.0

Total liabilities and shareholders' equity
33,565.2

 
(519.0
)
 
33,046.2


 
Three months ended
 
March 31, 2012
 
Amounts prior to adoption of ASU 2010-26
 
Effect of adoption of ASU 2010-26
 
As reported
Amortization
$
131.8

 
$
(45.2
)
 
$
86.6

Other operating costs and expenses
165.5

 
61.5

 
227.0

Total benefits and expenses
1,015.3

 
16.3

 
1,031.6

Income before income taxes
108.6

 
(16.3
)
 
92.3

Tax expense on period income
39.1

 
(5.9
)
 
33.2

Net income
69.5

 
(10.4
)
 
59.1

 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
  Basic:
 
 
 
 
 
    Net income
$
.29

 
$
(.04
)
 
$
.25

  Diluted:
 
 
 
 
 
    Net income
.25

 
(.04
)
 
.21



The adoption of ASU 2010-26 affected prior period information as follows (dollars in millions, except per share amounts):

 
December 31, 2011
 
As originally reported
 
Effect of adoption of ASU 2010-26
 
As adjusted
Deferred acquisition costs
$
1,418.1

 
$
(621.0
)
 
$
797.1

Income tax assets, net
630.5

 
234.9

 
865.4

Other assets
316.9

 
(24.7
)
 
292.2

Total assets
33,332.7

 
(410.8
)
 
32,921.9

 
 
 
 
 
 
Other liabilities
548.3

 
8.0

 
556.3

Total liabilities
28,300.1

 
8.0

 
28,308.1

 
 
 
 
 
 
Accumulated other comprehensive income
625.5

 
156.1

 
781.6

Retained earnings (accumulated deficit)
42.8

 
(574.9
)
 
(532.1
)
Total shareholders' equity
5,032.6

 
(418.8
)
 
4,613.8

Total liabilities and shareholders' equity
33,332.7

 
(410.8
)
 
32,921.9


 
Three months ended
 
March 31, 2011
 
As originally reported
 
Effect of adoption of ASU 2010-26
 
As adjusted
Amortization
$
136.7

 
$
(41.8
)
 
$
94.9

Other operating costs and expenses
115.1

 
55.0

 
170.1

Total benefits and expenses
965.6

 
13.2

 
978.8

Income before income taxes
83.6

 
(13.2
)
 
70.4

Tax expense on period income
29.7

 
(4.7
)
 
25.0

Net income
53.9

 
(8.5
)
 
45.4

 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
  Basic:
 
 
 
 
 
    Net income
$
.21

 
$
(.03
)
 
$
.18

  Diluted:
 
 
 
 
 
    Net income
.19

 
(.03
)
 
.16



 
Three months ended
 
March 31, 2011
 
As originally reported
 
Effect of adoption of ASU 2010-26
 
As adjusted
Cash flows from operating activities:
 
 
 
 
 
  Deferrable policy acquisition costs
$
(109.4
)
 
$
56.2

 
$
(53.2
)
  Other operating costs
(124.7
)
 
(56.2
)
 
(180.9
)
Net cash used by operating activities
155.3

 
—

 
155.3



Deferred acquisition costs represent incremental direct costs related to the successful acquisition of new or renewal insurance contracts. For universal life or investment products, we amortize these costs in relation to the estimated gross profits using the interest rate credited to the underlying policies. For other products, we amortize these costs in relation to future anticipated premium revenue using the projected investment earnings rate.

When we realize a gain or loss on investments backing our universal life or investment-type products, we adjust the amortization to reflect the change in estimated gross profits from the products due to the gain or loss realized and the effect on future investment yields. We also adjust deferred acquisition costs for the change in amortization that would have been recorded if our fixed maturity securities, available for sale, had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. We limit the total adjustment related to the impact of unrealized losses to the total of costs capitalized plus interest related to insurance policies issued in a particular year. We include the impact of this adjustment in accumulated other comprehensive income (loss) within shareholders' equity.

We regularly evaluate the recoverability of the unamortized balance of the deferred acquisition costs. We consider estimated future gross profits or future premiums, expected mortality or morbidity, interest earned and credited rates, persistency and expenses in determining whether the balance is recoverable. If we determine a portion of the unamortized balance is not recoverable, it is charged to amortization expense. In certain cases, the unamortized balance of the deferred acquisition costs may not be deficient in the aggregate, but our estimates of future earnings indicate that profits would be recognized in early periods and losses in later periods. In this case, we increase the amortization of the deferred acquisition costs over the period of profits, by an amount necessary to offset losses that are expected to be recognized in the later years.

Changes in deferred acquisition costs were as follows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Balance, beginning of period
$
797.1

 
$
999.6

Additions
46.2

 
53.2

Amortization
(56.8
)
 
(56.8
)
Amounts related to fair value adjustment of fixed maturities, available for sale
3.9

 
(6.7
)
Balance, end of period
$
790.4

 
$
989.3




Adopted Accounting Standards

In June 2011, the FASB issued authoritative guidance to increase the prominence of items reported in other comprehensive income by eliminating the option to present components of other comprehensive income as part of the statement of changes in shareholders' equity. Such guidance requires that all non-owner changes in shareholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income and the total of comprehensive income. The guidance was applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this guidance resulted in a change in the presentation of our financial statements but did not have any impact on our financial condition, operating results or cash flows. In December 2011, the FASB issued authoritative guidance to defer the requirement to present reclassification adjustments out of accumulated other comprehensive income to net income on the face of the financial statements. All other aspects of the original guidance are still effective.

In May 2011, the FASB issued authoritative guidance which clarifies or updates requirements for measuring fair value and for disclosing information about fair value measurements. The guidance clarifies: (i) the application of the highest and best use and valuation premise concepts; (ii) measuring the fair value of an instrument classified in a reporting entity's shareholders' equity; and (iii) disclosure of quantitative information about the unobservable inputs used in a fair value measurement that is categorized within Level 3 of the fair value hierarchy. The guidance changes certain requirements for measuring fair value or disclosing information about fair value measurements including: (i) measuring the fair value of financial instruments that are managed within a portfolio; (ii) application of premiums and discounts in a fair value measurement; and (iii) additional disclosures about fair value measurements. Such additional disclosures include a description of the valuation process used for measuring Level 3 instruments and the sensitivity of the Level 3 fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any. The guidance was effective prospectively for interim and annual periods beginning after December 15, 2011. Refer to the note to our consolidated financial statements entitled "Fair Value Measurements" for additional disclosures required by this guidance. The adoption of this guidance expanded our disclosures, but did not have a material impact on our financial condition, operating results or cash flows.
CONSOLIDATED STATEMENT CASH FLOWS
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CASH FLOWS

The following disclosures supplement our consolidated statement of cash flows.

The following reconciles net income to net cash provided by operating activities (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Cash flows from operating activities:
 
 
 
Net income
$
59.1

 
$
45.4

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 

Amortization and depreciation
91.1

 
101.5

Income taxes
29.5

 
24.3

Insurance liabilities
39.9

 
109.1

Accrual and amortization of investment income
(104.1
)
 
(48.3
)
Deferral of policy acquisition costs
(46.2
)
 
(53.2
)
Net realized investment gains
(22.9
)
 
(5.1
)
Loss on extinguishment of debt
.2

 
1.4

Other
31.6

 
(19.8
)
Net cash provided by operating activities
$
78.2

 
$
155.3



Non-cash items not reflected in the investing and financing activities sections of the consolidated statement of cash flows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Stock option and restricted stock plans
$
2.5

 
$
1.9

INVESTMENTS IN VARIABLE INTEREST ENTITIES
INVESTMENTS IN VARIABLE INTEREST ENTITIES
INVESTMENTS IN VARIABLE INTEREST ENTITIES

Based on our assessment, we have concluded that we are the primary beneficiary with respect to certain variable interest entities (“VIEs”), which are consolidated in our financial statements.  The following is a description of our significant investments in VIEs:

All of the VIEs are collateralized loan trusts that were established to issue securities and use the proceeds to principally invest in corporate loans and other permitted investments (including a new VIE which was consolidated in the first quarter of 2012).  The assets held by the trusts are legally isolated and not available to the Company.  The liabilities of the VIEs are expected to be satisfied from the cash flows generated by the underlying loans held by the trusts, not from the assets of the Company.  Repayment of the remaining principal balance of the borrowings of the VIEs is based on available cash flows from the assets.  The Company has no further commitments to the VIEs.

Certain of our insurance subsidiaries are noteholders of the VIEs.  Another subsidiary of the Company is the investment manager for the VIEs.  As such, it has the power to direct the most significant activities of the VIEs which materially impacts the economic performance of the VIEs.

The following table provides supplemental information about the assets and liabilities of the VIEs which have been consolidated in accordance with authoritative guidance (dollars in millions):

 
March 31, 2012
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
564.7

 
$
—

 
$
564.7

Notes receivable of VIEs held by insurance subsidiaries
—

 
(75.4
)
 
(75.4
)
Cash and cash equivalents held by variable interest entities
65.8

 
—

 
65.8

Accrued investment income
2.2

 
—

 
2.2

Income tax assets, net
4.9

 
(1.5
)
 
3.4

Other assets
16.2

 
—

 
16.2

Total assets
$
653.8

 
$
(76.9
)
 
$
576.9

Liabilities:
 

 
 

 
 

Other liabilities
$
63.6

 
$
(.4
)
 
$
63.2

Borrowings related to variable interest entities
519.9

 
—

 
519.9

Notes payable of VIEs held by insurance subsidiaries
79.5

 
(79.5
)
 
—

Total liabilities
$
663.0

 
$
(79.9
)
 
$
583.1



 
December 31, 2011
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
496.3

 
$
—

 
$
496.3

Notes receivable of VIEs held by insurance subsidiaries
—

 
(45.3
)
 
(45.3
)
Cash and cash equivalents held by variable interest entities
74.4

 
—

 
74.4

Accrued investment income
1.7

 
—

 
1.7

Income tax assets, net
6.8

 
(1.4
)
 
5.4

Other assets
7.7

 
—

 
7.7

Total assets
$
586.9

 
$
(46.7
)
 
$
540.2

Liabilities:
 

 
 

 
 

Other liabilities
$
30.3

 
$
(.1
)
 
$
30.2

Borrowings related to variable interest entities
519.9

 
—

 
519.9

Notes payable of VIEs held by insurance subsidiaries
49.3

 
(49.3
)
 
—

Total liabilities
$
599.5

 
$
(49.4
)
 
$
550.1



The investment portfolios held by the VIEs are primarily comprised of corporate fixed maturity securities which are almost entirely rated as below-investment grade securities.  At March 31, 2012, such securities had an amortized cost of $566.1 million; gross unrealized gains of $2.6 million; gross unrealized losses of $4.0 million; and an estimated fair value of $564.7 million.

The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at March 31, 2012, by contractual maturity.  Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

 
Amortized
cost
 
Estimated
fair
value
 
(Dollars in millions)
Due in one year or less
$
.5

 
$
.5

Due after one year through five years
308.5

 
306.5

Due after five years through ten years
257.1

 
257.7

Total
$
566.1

 
$
564.7



During the first three months of 2012, we recognized net realized investment losses on the VIE investments of $.5 million, which were comprised of $.1 million of net losses from the sales of fixed maturities, and $.4 million of writedowns of investments for other than temporary declines in fair value recognized through net income.  During the first three months of 2011, we recognized net realized investment losses on the VIE investments of $1.4 million, which were comprised of $1.8 million of net gains from the sales of fixed maturities, and $3.2 million of writedowns of investments for other than temporary declines in fair value recognized through net income.

At March 31, 2012, there were no investments held by the VIEs that were in default.

During the first three months of 2012, $6.1 million of investments held by the VIEs were sold which resulted in gross investment losses (before income taxes) of $.1 million.

At March 31, 2012, the VIEs held:  (i) investments with a fair value of $250.2 million and gross unrealized losses of $3.5 million that had been in an unrealized loss position for less than twelve months; and (ii) investments with a fair value of $35.9 million and gross unrealized losses of $.5 million that had been in an unrealized loss position for greater than twelve months.

The investments held by the VIEs are evaluated for other-than-temporary declines in fair value in a manner that is consistent with the Company’s fixed maturities, available for sale.

In addition, the Company, in the normal course of business, makes passive investments in structured securities issued by VIEs for which the Company is not the investment manager.  These structured securities include asset-backed securities, collateralized debt obligations, commercial mortgage-backed securities, residential mortgage-backed securities and collateralized mortgage obligations.  Our maximum exposure to loss on these securities is limited to our cost basis in the investment.  We have determined that we are not the primary beneficiary of these structured securities due to the relative size of our investment in comparison to the total principal amount of the individual structured securities and the level of credit subordination which reduces our obligation to absorb gains or losses.

At March 31, 2012, we hold investments in various limited partnerships, in which we are not the primary beneficiary, totaling $27.1 million (classified as other invested assets).  At March 31, 2012, we had unfunded commitments to these partnerships of $20.1 million.  Our maximum exposure to loss on these investments is limited to the amount of our investment.
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, therefore, represents an exit price, not an entry price.  We carry certain assets and liabilities at fair value on a recurring basis, including fixed maturities, equity securities, trading securities, investments held by VIEs, derivatives, cash and cash equivalents, separate account assets and embedded derivatives.  We carry our company-owned life insurance policy, which is backed by a series of mutual funds, at its cash surrender value and our hedge fund investments at their net asset values; in both cases, we believe these values approximate their fair values. In addition, we disclose fair value for certain financial instruments, including mortgage loans and policy loans, insurance liabilities for interest-sensitive products, investment borrowings, notes payable and borrowings related to VIEs.

The degree of judgment utilized in measuring the fair value of financial instruments is largely dependent on the level to which pricing is based on observable inputs.  Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information.  Financial instruments with readily available active quoted prices would be considered to have fair values based on the highest level of observable inputs, and little judgment would be utilized in measuring fair value.  Financial instruments that rarely trade would often have fair value based on a lower level of observable inputs, and more judgment would be utilized in measuring fair value.

Valuation Hierarchy

There is a three-level hierarchy for valuing assets or liabilities at fair value based on whether inputs are observable or unobservable.

•
Level 1 – includes assets and liabilities valued using inputs that are unadjusted quoted prices in active markets for identical assets or liabilities.  Our Level 1 assets primarily include cash and exchange traded securities.

•
Level 2 – includes assets and liabilities valued using inputs that are quoted prices for similar assets in an active market, quoted prices for identical or similar assets in a market that is not active, observable inputs, or observable inputs that can be corroborated by market data.  Level 2 assets and liabilities include those financial instruments that are valued by independent pricing services using models or other valuation methodologies.  These models are primarily industry-standard models that consider various inputs such as interest rate, credit spread, reported trades, broker/dealer quotes, issuer spreads and other inputs that are observable or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace.  Financial assets in this category primarily include:  certain public and privately placed corporate fixed maturity securities; certain government or agency securities; certain mortgage and asset-backed securities; certain equity securities; most investments held by our consolidated VIEs; certain mutual fund and hedge fund investments; and most short-term investments; and non-exchange-traded derivatives such as call options to hedge liabilities related to our fixed index annuity products. Financial liabilities in this category include investment borrowings, notes payable and borrowings related to VIEs.

•
Level 3 – includes assets and liabilities valued using unobservable inputs that are used in model-based valuations that contain management assumptions.  Level 3 assets and liabilities include those financial instruments whose fair value is estimated based on non-binding broker prices or internally developed models or methodologies utilizing significant inputs not based on, or corroborated by, readily available market information.  Financial assets in this category include certain corporate securities (primarily certain below-investment grade privately placed securities), certain structured securities, mortgage loans, and other less liquid securities.  Financial liabilities in this category include our insurance liabilities for interest-sensitive products, which includes embedded derivatives (including embedded derivatives related to our fixed index annuity products and to a modified coinsurance arrangement) since their values include significant unobservable inputs including actuarial assumptions.

At each reporting date, we classify assets and liabilities into the three input levels based on the lowest level of input that is significant to the measurement of fair value for each asset and liability reported at fair value.  This classification is impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction and overall market conditions.  Our assessment of the significance of a particular input to the fair value measurement and the ultimate classification of each asset and liability requires judgment and is subject to change from period to period based on the observability of the valuation inputs. Any transfers between levels are reported as having occurred at the beginning of the period. There were no significant transfers between Level 1 and Level 2 in the first three months of 2012.

The vast majority of our fixed maturity and equity securities, including those held in trading portfolios and those held by consolidated VIEs, short-term and separate account assets use Level 2 inputs for the determination of fair value.  These fair values are obtained primarily from independent pricing services, which use Level 2 inputs for the determination of fair value.  Substantially all of our Level 2 fixed maturity securities and separate account assets were valued from independent pricing services.  Third party pricing services normally derive the security prices through recently reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information.  If there are no recently reported trades, the third party pricing services may use matrix or model processes to develop a security price where future cash flow expectations are developed and discounted at an estimated risk-adjusted market rate.  The number of prices obtained for a given security is dependent on the Company’s analysis of such prices as further described below.

For securities that are not priced by pricing services and may not be reliably priced using pricing models, we obtain broker quotes.  These broker quotes are non-binding and represent an exit price, but assumptions used to establish the fair value may not be observable and therefore represent Level 3 inputs.  Approximately 20 percent of our Level 3 fixed maturity securities were valued using unadjusted broker quotes or broker-provided valuation inputs.  The remaining Level 3 fixed maturity investments do not have readily determinable market prices and/or observable inputs.  For these securities, we use internally developed valuations.  Key assumptions used to determine fair value for these securities may include risk-free rates, risk premiums, performance of underlying collateral and other factors involving significant assumptions which may not be reflective of an active market.  For certain investments, we use a matrix or model process to develop a security price where future cash flow expectations are developed and discounted at an estimated market rate.  The pricing matrix utilizes a spread level to determine the market price for a security.  The credit spread generally incorporates the issuer’s credit rating and other factors relating to the issuer’s industry and the security’s maturity.  In some instances issuer-specific spread adjustments, which can be positive or negative, are made based upon internal analysis of security specifics such as liquidity, deal size, and time to maturity.

As the Company is responsible for the determination of fair value, we have control processes designed to ensure that the fair values received from third-party pricing sources are reasonable and the valuation techniques and assumptions used appear reasonable and consistent with prevailing market conditions. As part of these controls, we perform monthly quantitative and qualitative analysis on the prices received from third parties to determine whether the prices are reasonable estimates of fair value.  The Company’s analysis includes:  (i) a review of the methodology used by third party pricing services; (ii) where available, a comparison of multiple pricing services’ valuations for the same security; (iii) a review of month to month price fluctuations; (iv) a review to ensure valuations are not unreasonably stale; and (v) back testing to compare actual purchase and sale transactions with valuations received from third parties.  As a result of such procedures, the Company may conclude the prices received from third parties are not reflective of current market conditions.  In those instances, we may request additional pricing quotes or apply internally developed valuations.  However, the number of instances is insignificant and the aggregate change in value of such investments is not materially different from the original prices received.

The categorization of the fair value measurements of our investments priced by independent pricing services was based upon the Company’s judgment of the inputs or methodologies used by the independent pricing services to value different asset classes.  Such inputs include:  benchmark yields, reported trades, broker dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data.  The Company categorizes such fair value measurements based upon asset classes and the underlying observable or unobservable inputs used to value such investments.

Except for exchange traded derivatives which are classified as Level 1, the fair value measurements for derivative instruments, including embedded derivatives requiring bifurcation, are determined based on the consideration of several inputs including closing exchange or over-the-counter market price quotations; time value and volatility factors underlying options; market interest rates; and non-performance risk.  For certain embedded derivatives, we may use actuarial assumptions in the determination of fair value.

The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at March 31, 2012 is as follows (dollars in millions):

 
Quoted prices in active markets
 for identical assets or liabilities
(Level 1)
 
Significant other observable inputs
 (Level 2)
 
Significant unobservable inputs 
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
Corporate securities
$
—

 
$
15,654.3

 
$
268.0

 
$
15,922.3

United States Treasury securities and obligations of United States government corporations and agencies
20.0

 
267.5

 
1.6

 
289.1

States and political subdivisions
—

 
1,974.3

 
9.6

 
1,983.9

Debt securities issued by foreign governments
—

 
.8

 
—

 
.8

Asset-backed securities
—

 
1,384.3

 
22.7

 
1,407.0

Collateralized debt obligations
—

 
—

 
332.4

 
332.4

Commercial mortgage-backed securities
—

 
1,499.3

 
—

 
1,499.3

Mortgage pass-through securities
—

 
27.9

 
2.2

 
30.1

Collateralized mortgage obligations
—

 
2,298.1

 
14.7

 
2,312.8

Total fixed maturities, available for sale
20.0

 
23,106.5

 
651.2

 
23,777.7

Equity securities:
 
 
 
 
 
 
 
Corporate securities
20.1

 
88.0

 
3.2

 
111.3

Venture capital investments
—

 
—

 
65.2

 
65.2

Total equity securities
20.1

 
88.0

 
68.4

 
176.5

Trading securities:
 

 
 

 
 

 
 

Corporate securities
.1

 
51.5

 
—

 
51.6

United States Treasury securities and obligations of United States government corporations and agencies
—

 
4.9

 
—

 
4.9

States and political subdivisions
—

 
15.7

 
—

 
15.7

Asset-backed securities
—

 
9.7

 
—

 
9.7

Collateralized debt obligations
—

 
—

 
3.6

 
3.6

Commercial mortgage-backed securities
—

 
20.7

 
—

 
20.7

Mortgage pass-through securities
—

 
.2

 
—

 
.2

Collateralized mortgage obligations
—

 
14.3

 
—

 
14.3

Equity securities
.3

 
1.3

 
—

 
1.6

Total trading securities
.4

 
118.3

 
3.6

 
122.3

Investments held by variable interest entities - corporate securities
—

 
564.7

 
—

 
564.7

Other invested assets:
 
 
 
 
 
 
 
Company-owned life insurance
—

 
111.2

 
—

 
111.2

Hedge funds
—

 
18.0

 
—

 
18.0

Derivatives
.2

 
88.3

 
—

 
88.5

Total other invested assets
.2

 
217.5

 
—

 
217.7

Cash and cash equivalents - unrestricted:
 
 
 
 
 
 
 
Cash
105.1

 
—

 
—

 
105.1

Cash equivalents and short-term investments
—

 
68.4

 
—

 
68.4

Total cash and cash equivalents - unrestricted
105.1

 
68.4

 
—

 
173.5

Cash and cash equivalents held by variable interest entities
65.8

 
—

 
—

 
65.8

Assets held in separate accounts
—

 
16.0

 
—

 
16.0

Total assets carried at fair value by category
$
211.6

 
$
24,179.4

 
$
723.2

 
$
25,114.2

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
$
—

 
$
—

 
$
704.3

 
$
704.3

Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
—

 
3.4

 
3.4

Total liabilities for insurance products
—

 
—

 
707.7

 
707.7

Total liabilities carried at fair value by category
$
—

 
$
—

 
$
707.7

 
$
707.7



For those financial instruments disclosed at fair value, we use the following methods and assumptions to determine the estimated fair values:

Mortgage loans and policy loans.  We discount future expected cash flows for loans included in our investment portfolio based on interest rates currently being offered for similar loans to borrowers with similar credit ratings.  We aggregate loans with similar characteristics in our calculations.  The fair value of policy loans approximates their carrying value.

Insurance liabilities for interest-sensitive products.  We discount future expected cash flows based on interest rates currently being offered for similar contracts with similar maturities.

Investment borrowings, notes payable and borrowings related to variable interest entities.  For publicly traded debt, we use current fair values.  For other notes, we use discounted cash flow analyses based on our current incremental borrowing rates for similar types of borrowing arrangements.

The fair value measurements for our financial instruments disclosed at fair value on a recurring basis are as follows (dollars in millions):

 
March 31, 2012
 
December 31, 2011
 
Quoted prices in active markets for identical assets or liabilities
(Level 1)
 
Significant other observable inputs
 (Level 2)
 
Significant unobservable inputs 
(Level 3)
 
Total estimated fair value
 
Total carrying amount
 
Total estimated fair value
 
Total carrying amount
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage loans
$
—

 
$
—

 
$
1,662.4

 
$
1,662.4

 
$
1,546.7

 
$
1,735.4

 
$
1,602.8

Policy loans
—

 
277.8

 
—

 
277.8

 
277.8

 
279.7

 
279.7

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives (a)
—

 
—

 
12,395.7

 
12,395.7

 
12,395.7

 
13,165.5

 
13,165.5

Investment borrowings
—

 
1,737.2

 
—

 
1,737.2

 
1,684.9

 
1,735.7

 
1,676.5

Borrowings related to variable interest entities
—

 
495.1

 
—

 
495.1

 
519.9

 
485.1

 
519.9

Notes payable – direct corporate obligations
—

 
1,012.0

 
—

 
1,012.0

 
799.3

 
978.3

 
857.9


____________________
(a)
The estimated fair value of insurance liabilities for interest-sensitive products was approximately equal to its carrying value at March 31, 2012.  This was because interest rates credited on the vast majority of account balances approximate current rates paid on similar products and because these rates are not generally guaranteed beyond one year.


The categorization of fair value measurements, by input level, for our fixed maturity securities, equity securities, trading securities, certain other invested assets, assets held in separate accounts and embedded derivative instruments included in liabilities for insurance products at December 31, 2011 is as follows (dollars in millions):

 
Quoted prices in active markets
 for identical assets or liabilities
 (Level 1)
 
Significant other observable
inputs
(Level 2) (a)
 
 
 
Significant unobservable inputs
 (Level 3) (a)
 
 
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
$
—

 
$
15,594.4

 
 
 
$
278.1

 
 
 
$
15,872.5

United States Treasury securities and obligations of United States government corporations and agencies
—

 
303.8

 
 
 
1.6

 
 
 
305.4

States and political subdivisions
—

 
1,952.3

 
 
 
2.1

 
 
 
1,954.4

Debt securities issued by foreign governments
—

 
1.4

 
 
 
—

 
 
 
1.4

Asset-backed securities
—

 
1,334.3

 
 
 
79.7

 
 
 
1,414.0

Collateralized debt obligations
—

 
—

 
 
 
327.3

 
 
 
327.3

Commercial mortgage-backed securities
—

 
1,415.7

 
 
 
17.3

 
 
 
1,433.0

Mortgage pass-through securities
—

 
29.8

 
 
 
2.2

 
 
 
32.0

Collateralized mortgage obligations
—

 
2,051.2

 
 
 
124.8

 
 
 
2,176.0

Total fixed maturities, available for sale
—

 
22,682.9

 
 
 
833.1

 
 
 
23,516.0

Equity securities
17.9

 
87.3

 
 
 
69.9

 
 
 
175.1

Trading securities:
 

 
 

 
 
 
 

 
 
 
 

Corporate securities
—

 
67.6

 
 
 
—

 
 
 
67.6

United States Treasury securities and obligations of United States government corporations and agencies
—

 
4.9

 
 
 
—

 
 
 
4.9

States and political subdivisions
—

 
15.6

 
 
 
—

 
 
 
15.6

Asset-backed securities
—

 
.1

 
 
 
—

 
 
 
.1

Commercial mortgage-backed securities
—

 
—

 
 
 
.4

 
 
 
.4

Mortgage pass-through securities
—

 
.2

 
 
 
—

 
 
 
.2

Collateralized mortgage obligations
—

 
.7

 
 
 
—

 
 
 
.7

Equity securities
.7

 
1.4

 
 
 
—

 
 
 
2.1

Total trading securities
.7

 
90.5

 
 
 
.4

 
 
 
91.6

Investments held by variable interest entities
—

 
496.3

 
 
 
—

 
 
 
496.3

Other invested assets
—

 
159.9

 
(b)
 
—

 
 
 
159.9

Assets held in separate accounts
—

 
15.0

 
 
 
—

 
 
 
15.0

Liabilities:
 

 
 

 
 
 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 
 
 

 
 
 
 

Interest-sensitive products
—

 
—

 
 
 
669.8

 
(c)
 
669.8

_____________
(a)
We revised the hierarchy classification of certain fixed maturities, equity securities, trading securities and other invested assets as we believe the observability of the inputs more closely represent Level 2 valuations.
(b)
Includes company-owned life insurance and derivatives.
(c)
Includes $666.3 million of embedded derivatives associated with our fixed index annuity products and $3.5 million of embedded derivatives associated with a modified coinsurance agreement.

The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the three months ended March 31, 2012 (dollars in millions):


 
March 31, 2012
 
 
 
Beginning balance as of December 31, 2011 (a)
 
Purchases, sales, issuances and settlements, net (c)
 
Total realized and unrealized gains (losses) included in net income
 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
 
Transfers into Level 3
 
Transfers out of Level 3 (b)
 
Ending balance as of March 31, 2012
 
Amount of total gains (losses) for the three months ended March 31, 2012 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
$
278.1

 
$
15.0

 
$
—

 
$
.5

 
$
51.2

 
$
(76.8
)
 
$
268.0

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
1.6

 
—

 
—

 
—

 
—

 
—

 
1.6

 
—

States and political subdivisions
2.1

 
—

 
—

 
.1

 
7.4

 
—

 
9.6

 
—

Asset-backed securities
79.7

 
(8.2
)
 
(.4
)
 
(1.3
)
 
4.7

 
(51.8
)
 
22.7

 
—

Collateralized debt obligations
327.3

 
(.8
)
 
—

 
5.9

 
—

 
—

 
332.4

 
—

Commercial mortgage-backed securities
17.3

 
—

 
—

 
—

 
—

 
(17.3
)
 
—

 
—

Mortgage pass-through securities
2.2

 
—

 
—

 
—

 
—

 
—

 
2.2

 
—

Collateralized mortgage obligations
124.8

 
3.5

 
—

 
.1

 
10.9

 
(124.6
)
 
14.7

 
—

Total fixed maturities, available for sale
833.1

 
9.5

 
(.4
)
 
5.3

 
74.2

 
(270.5
)
 
651.2

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
6.4

 
—

 
(3.8
)
 
.6

 
—

 
—

 
3.2

 
(3.8
)
Venture capital investments
63.5

 
—

 
—

 
1.7

 
—

 
—

 
65.2

 
—

Total equity securities
69.9

 
—

 
(3.8
)
 
2.3

 
—

 
—

 
68.4

 
(3.8
)
Trading securities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Collateralized debt obligations
—

 
3.2

 
.4

 
—

 
—

 
—

 
3.6

 
.4

Commercial mortgage-backed securities
.4

 
—

 
—

 
—

 
—

 
(.4
)
 
—

 
—

Total trading securities
.4

 
3.2

 
.4

 
—

 
—

 
(.4
)
 
3.6

 
.4

Liabilities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Interest-sensitive products
(669.8
)
 
(50.5
)
 
12.6

 
—

 
—

 
—

 
(707.7
)
 
12.6


____________
(a)
We revised the hierarchy classification of certain fixed maturities, equity securities, trading securities and other invested assets as we believe the observability of the inputs more closely represent Level 2 valuations.
(b)
For our fixed maturity securities, the majority of our transfers out of Level 3 are the result of obtaining a valuation from an independent pricing service at the end of the period, whereas a broker quote was used as of the beginning of the period.
(c)
Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period.  Such activity primarily consists of purchases and sales of fixed maturity and equity securities and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts.  The following summarizes such activity for the three months ended March 31, 2012 (dollars in millions):

 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
15.0

 
$
—

 
$
—

 
$
—

 
$
15.0

Asset-backed securities
—

 
(8.2
)
 
—

 
—

 
(8.2
)
Collateralized debt obligations
28.3

 
(29.1
)
 
—

 
—

 
(.8
)
Collateralized mortgage obligations
14.4

 
(10.9
)
 
—

 
—

 
3.5

Total fixed maturities, available for sale
57.7

 
(48.2
)
 
—

 
—

 
9.5

Trading securities - collateralized debt obligations
3.2

 
—

 
—

 
—

 
3.2

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products
(27.3
)
 
5.0

 
(38.9
)
 
10.7

 
(50.5
)



The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the three months ended March 31, 2011 (dollars in millions):

 
 
March 31, 2011
 
 
 
 
Beginning balance as of December 31, 2010
 
Purchases, sales, issuances and settlements, net (a)
 
Total realized and unrealized gains (losses) included in net income
 
Total realized and unrealized gains (losses) included in other comprehensive income (loss)
 
Transfers into Level 3
 
Transfers out of Level 3
 
Ending balance as of March 31, 2011
 
Amount of total gains (losses) for the three months ended March 31, 2011 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
$
1,907.8

 
$
(63.2
)
 
$
(11.8
)
 
$
9.1

 
$
11.2

 
$
—

 
$
1,853.1

 
$
6.4

United States Treasury securities and obligations of United States government corporations and agencies
 
2.0

 
—

 
—

 
(.3
)
 
—

 
—

 
1.7

 
—

States and political subdivisions
 
2.5

 
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
—

Asset-backed securities
 
182.3

 
(1.8
)
 
—

 
(.5
)
 
27.4

 
—

 
207.4

 
—

Collateralized debt obligations
 
256.5

 
(76.7
)
 
2.1

 
4.3

 
—

 
—

 
186.2

 
—

Mortgage pass-through securities
 
3.5

 
(.2
)
 
—

 
—

 
—

 
—

 
3.3

 
—

Collateralized mortgage obligations
 
197.1

 
11.5

 
—

 
1.7

 
90.9

 
(53.7
)
 
247.5

 
—

Total fixed maturities, available for sale
 
2,551.7

 
(130.4
)
 
(9.7
)
 
14.3

 
129.5

 
(56.2
)
 
2,499.2

 
6.4

Equity securities
 
7.6

 
37.5

 
(.8
)
 
.7

 
—

 
—

 
45.0

 
—

Trading securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Collateralized mortgage obligations
 
.4

 
—

 
.1

 
—

 
—

 
—

 
.5

 
.1

Total trading securities
 
.4

 
—

 
.1

 
—

 
—

 
—

 
.5

 
.1

Investments held by variable interest entities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
6.7

 
(7.9
)
 
1.5

 
(.3
)
 
—

 
—

 
—

 
—

Liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities for insurance products:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-sensitive products
 
(553.2
)
 
(36.1
)
 
1.8

 
—

 
—

 
—

 
(587.5
)
 
1.8


____________
(a)
Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period.  Such activity primarily consists of purchases and sales of fixed maturity and equity securities and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts.  The following summarizes such activity for the three months ended March 31, 2011 (dollars in millions):


 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
45.0

 
$
(108.2
)
 
$
—

 
$
—

 
$
(63.2
)
Asset-backed securities
—

 
(1.8
)
 
—

 
—

 
(1.8
)
Collateralized debt obligations
1.7

 
(78.4
)
 
—

 
—

 
(76.7
)
Mortgage pass-through securities
—

 
(.2
)
 
—

 
—

 
(.2
)
Collateralized mortgage obligations
18.4

 
(6.9
)
 
—

 
—

 
11.5

Total fixed maturities, available for sale
65.1

 
(195.5
)
 
—

 
—

 
(130.4
)
Equity securities
37.5

 
—

 
—

 
—

 
37.5

Investments held by variable interest entities:
 
 
 
 
 
 
 
 
 
Corporate securities
—

 
(7.9
)
 
—

 
—

 
(7.9
)
Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products
(25.0
)
 
2.6

 
(19.0
)
 
5.3

 
(36.1
)



At March 31, 2012, 83 percent of our Level 3 fixed maturities, available for sale, were investment grade and 41 percent of our Level 3 fixed maturities, available for sale, consisted of corporate securities.

Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses during the time the applicable financial instruments were classified as Level 3.

Realized and unrealized gains (losses) on Level 3 assets are primarily reported in either net investment income for policyholder and reinsurer accounts and other special-purpose portfolios, net realized investment gains (losses) or insurance policy benefits within the consolidated statement of operations or accumulated other comprehensive income within shareholders’ equity based on the appropriate accounting treatment for the instrument.

The amount presented for gains (losses) included in our net loss for assets and liabilities still held as of the reporting date primarily represents impairments for fixed maturities, available for sale, changes in fair value of trading securities and certain derivatives and changes in fair value of embedded derivative instruments included in liabilities for insurance products that exist as of the reporting date.

The following table provides additional information about the significant unobservable (Level 3) inputs developed internally by the Company to determine fair value for certain assets and liabilities carried at fair value at March 31, 2012 (dollars in millions):

 
Fair Value at March 31, 2012
 
Valuation Technique(s)
 
Unobservable Inputs
 
Range (Weighted Average)
Assets:
 
 
 
 
 
 
 
Corporate securities (a)
$
175.7

 
Discounted cash flow analysis
 
Discount margins
 
1.90% - 6.50% (3.49%)
Asset-backed securities (b)
11.2

 
Discounted cash flow analysis
 
Discount margins
 
2.16% - 2.32% (2.31%)
Collateralized debt obligations (c)
336.0

 
Discounted cash flow analysis
 
Recoveries
 
58% - 66% (ramp over 6 months)
 
 
 
 
 
Constant prepayment rate
 
20%
 
 
 
 
 
Discount margins
 
1.70% - 12.10% (3.32%)
 
 
 
 
 
Annual default rate
 
.95% - 5.95% (3.01%)
 
 
 
 
 
Portfolio CCC %
 
1.80% - 21.41% (11.67%)
Equity securities (d)
3.2

 
Discounted cash flow analysis
 
Earnings multiple of capital and surplus
 
.18 -.37 (.308)
Venture capital investments (e)
65.2

 
Market multiples
 
EBITDA multiple
 
3.9 - 45.1 (12.69)
 
 
 
 
 
Revenue multiple
 
0.6 - 6.9 (4.38)
 
 
 
 
 
Book equity multiple
 
1.0 - 5.8 (1)
Other assets categorized as Level 3 (f)
131.9

 
Unadjusted third-party price source
 
Not applicable
 
Not applicable
Total
723.2

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest sensitive products (g)
707.7

 
Discounted projected embedded derivatives
 
Projected portfolio yields
 
5.35% - 5.61% (5.55%)
 
 
 
 
 
Discount rates
 
0.0 - 4.3% (1.8%)
 
 
 
 
 
Surrender rates
 
4% - 43% (19%)
________________________________
(a)
Corporate securities - The significant unobservable input used in the fair value measurement of our corporate securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would result in a significantly lower (higher) fair value measurement.
(b)
Asset-backed securities - The significant unobservable input used in the fair value measurement of our asset-backed securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would result in a significantly lower (higher) fair value measurement.
(c)
Collateralized debt obligations - The significant unobservable inputs used in the fair value measurement of our collateralized debt obligations relate to collateral performance, including default rate, recoveries and constant prepayment rate, as well as discount margins of the underlying collateral. Significant increases (decreases) in default rate in isolation would result in a significantly lower (higher) fair value measurement. Generally, a significant increase (decrease) in the constant prepayment rate and recoveries in isolation would result in a significantly higher (lower) fair value measurement. Generally a significant increase (decrease) in discount margin in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the annual default rate is accompanied by a directionally similar change in the assumption used for discount margins and portfolio CCC % and a directionally opposite change in the assumption used for constant prepayment rate and recoveries. A tranche's payment priority and investment cost basis could alter generalized fair value outcomes.
(d)
Equity securities - The significant unobservable input used in the fair value measurement of our securities is the earnings multiple of capital and surplus. Significant increases (decreases) in the earnings multiple of the capital and surplus in isolation would result in a significantly higher (lower) fair value measurement.

(e)
Venture capital investments - The significant unobservable inputs used in the fair value measurement of our venture capital investments are the EBITDA multiple and revenue multiple. Generally, a significant increase (decrease) in the EBITDA or revenue multiples in isolation would result in a significantly higher (lower) fair value measurement.
(f)
Other assets categorized as Level 3 - For these assets, there were no adjustments to quoted market prices obtained from third-party pricing sources.
(g)
Interest sensitive products - The significant unobservable inputs used in the fair value measurement of our interest sensitive products are projected portfolio yields, discount rates and surrender rates. Increases (decreases) in projected portfolio yields in isolation would lead to a higher (lower) fair value measurement. The discount rate is based on the Treasury rate adjusted by a margin. Increases (decreases) in the discount rates would lead to a lower (higher) fair value measurement. Assumed surrender rates are used to project how long the contracts remain in force. Generally, the longer the contracts are assumed to be in force the higher the fair value of the embedded derivative.
INVESTMENTS (TABLES)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] 
Accumulated other comprehensive income is primarily comprised of the net effect of unrealized appreciation (depreciation) on our investments.  These amounts, included in shareholders’ equity as of March 31, 2012 and December 31, 2011, were as follows (dollars in millions):

 
March 31,
2012
 
December 31,
2011
Net unrealized appreciation (depreciation) on fixed maturity securities, available for sale, on which an other-than-temporary impairment loss has been recognized
$
1.6

 
$
(4.4
)
Net unrealized gains (losses) on all other investments
1,757.5

 
1,733.2

Adjustment to present value of future profits (a)
(207.3
)
 
(214.8
)
Adjustment to deferred acquisition costs
(285.4
)
 
(289.3
)
Unrecognized net loss related to deferred compensation plan
(7.5
)
 
(8.3
)
Deferred income tax liabilities
(450.9
)
 
(434.8
)
Accumulated other comprehensive income
$
808.0

 
$
781.6

_________
(a)
The present value of future profits is the value assigned to the right to receive future cash flows from contracts existing at September 10, 2003 (the date our Predecessor emerged from bankruptcy).
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] 
At March 31, 2012, the amortized cost, gross unrealized gains and losses, estimated fair value, other-than-temporary impairments in accumulated other comprehensive income of fixed maturities, available for sale, were as follows (dollars in millions):

 
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
Other-than-
temporary
impairments
included in
accumulated other
comprehensive
income
Corporate securities
$
14,574.1

 
$
1,425.3

 
$
(77.1
)
 
$
15,922.3

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
286.7

 
5.5

 
(3.1
)
 
289.1

 
—

States and political subdivisions
1,788.2

 
203.9

 
(8.2
)
 
1,983.9

 
—

Debt securities issued by foreign governments
.8

 
—

 
—

 
.8

 
—

Asset-backed securities
1,383.0

 
48.9

 
(24.9
)
 
1,407.0

 
—

Collateralized debt obligations
333.1

 
2.2

 
(2.9
)
 
332.4

 
—

Commercial mortgage-backed securities
1,399.7

 
103.5

 
(3.9
)
 
1,499.3

 
—

Mortgage pass-through securities
28.5

 
1.6

 
—

 
30.1

 
—

Collateralized mortgage obligations
2,227.1

 
94.2

 
(8.5
)
 
2,312.8

 
(10.8
)
Total fixed maturities, available for sale
$
22,021.2

 
$
1,885.1

 
$
(128.6
)
 
$
23,777.7

 
$
(10.8
)
Investments Classified by Contractual Maturity Date [Table Text Block] 
The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at March 31, 2012, by contractual maturity.  Actual maturities will differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties.  In addition, structured securities (such as asset-backed securities, collateralized debt obligations, commercial mortgage-backed securities, mortgage pass-through securities and collateralized mortgage obligations, collectively referred to as “structured securities”) frequently include provisions for periodic principal payments and permit periodic unscheduled payments.

 
Amortized
cost
 
Estimated
fair
value
 
(Dollars in millions)
Due in one year or less
$
163.1

 
$
165.0

Due after one year through five years
1,443.3

 
1,542.1

Due after five years through ten years
4,534.1

 
4,901.1

Due after ten years
10,509.3

 
11,587.9

Subtotal
16,649.8

 
18,196.1

Structured securities
5,371.4

 
5,581.6

Total fixed maturities, available for sale
$
22,021.2

 
$
23,777.7

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] 
The following table summarizes the amount of credit losses recognized in earnings on fixed maturity securities, available for sale, held at the beginning of the period, for which a portion of the other-than-temporary impairment was also recognized in accumulated other comprehensive income for the three months ended March 31, 2012 and 2011 (dollars in millions):
 
Three months ended
 
March 31,
 
2012
 
2011
Credit losses on fixed maturity securities, available for sale, beginning of period
$
(2.0
)
 
$
(6.1
)
Add:  credit losses on other-than-temporary impairments not previously recognized
—

 
—

Less:  credit losses on securities sold
.1

 
4.3

Less:  credit losses on securities impaired due to intent to sell (a)
—

 
—

Add:  credit losses on previously impaired securities
—

 
—

Less:  increases in cash flows expected on previously impaired securities
—

 
—

Credit losses on fixed maturity securities, available for sale, end of period
$
(1.9
)
 
$
(1.8
)
__________
(a)
Represents securities for which the amount previously recognized in accumulated other comprehensive income was recognized in earnings because we intend to sell the security or we more likely than not will be required to sell the security before recovery of its amortized cost basis.
Schedule of Unrealized Loss on Investments [Table Text Block] 
The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at December 31, 2011 (dollars in millions):

 
 
Less than 12 months
 
12 months or greater
 
Total
Description of securities
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
United States Treasury securities and obligations of United States government corporations and agencies
 
$
9.1

 
$
—

 
$
.2

 
$
—

 
$
9.3

 
$
—

States and political subdivisions
 
6.9

 
(.2
)
 
155.4

 
(13.4
)
 
162.3

 
(13.6
)
Debt securities issued by foreign governments
 
.5

 
—

 
—

 
—

 
.5

 
—

Corporate securities
 
1,394.7

 
(57.0
)
 
466.2

 
(79.9
)
 
1,860.9

 
(136.9
)
Asset-backed securities
 
437.6

 
(14.5
)
 
147.5

 
(22.2
)
 
585.1

 
(36.7
)
Collateralized debt obligations
 
268.8

 
(6.3
)
 
1.7

 
—

 
270.5

 
(6.3
)
Commercial mortgage-backed securities
 
168.8

 
(5.2
)
 
33.0

 
(2.7
)
 
201.8

 
(7.9
)
Mortgage pass-through securities
 
1.2

 
—

 
2.2

 
(.1
)
 
3.4

 
(.1
)
Collateralized mortgage obligations
 
645.0

 
(20.8
)
 
29.7

 
(.6
)
 
674.7

 
(21.4
)
Total fixed maturities, available for sale
 
$
2,932.6

 
$
(104.0
)
 
$
835.9

 
$
(118.9
)
 
$
3,768.5

 
$
(222.9
)
Equity securities
 
$
41.6

 
$
(3.0
)
 
$
.4

 
$
—

 
$
42.0

 
$
(3.0
)
The following table summarizes the gross unrealized losses and fair values of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that such securities have been in a continuous unrealized loss position, at March 31, 2012 (dollars in millions):

 
 
Less than 12 months
 
12 months or greater
 
Total
Description of securities
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
United States Treasury securities and obligations of United States government corporations and agencies
 
$
195.3

 
$
(3.1
)
 
$
—

 
$
—

 
$
195.3

 
$
(3.1
)
States and political subdivisions
 
4.1

 
(.3
)
 
126.4

 
(7.9
)
 
130.5

 
(8.2
)
Corporate securities
 
1,204.7

 
(38.9
)
 
388.5

 
(38.2
)
 
1,593.2

 
(77.1
)
Asset-backed securities
 
287.7

 
(6.7
)
 
211.8

 
(18.2
)
 
499.5

 
(24.9
)
Collateralized debt obligations
 
198.5

 
(2.7
)
 
11.0

 
(.2
)
 
209.5

 
(2.9
)
Commercial mortgage-backed securities
 
89.6

 
(2.0
)
 
29.2

 
(1.9
)
 
118.8

 
(3.9
)
Mortgage pass-through securities
 
.5

 
—

 
2.2

 
—

 
2.7

 
—

Collateralized mortgage obligations
 
331.9

 
(6.0
)
 
63.7

 
(2.5
)
 
395.6

 
(8.5
)
Total fixed maturities, available for sale
 
$
2,312.3

 
$
(59.7
)
 
$
832.8

 
$
(68.9
)
 
$
3,145.1

 
$
(128.6
)
Equity securities
 
$
3.5

 
$
(.3
)
 
$
—

 
$
—

 
$
3.5

 
$
(.3
)
EARNINGS PER SHARE (TABLES)
Schedule of Earnings Per Share Reconciliation
A reconciliation of net income and shares used to calculate basic and diluted earnings per share is as follows (dollars in millions and shares in thousands):
 
Three months ended
 
March 31,
 
2012
 
2011
Net income for basic earnings per share
$
59.1

 
$
45.4

Add:  interest expense on 7.0% Convertible Senior Debentures due 2016 (the “7.0% Debentures”), net of income taxes
3.7

 
3.7

Net income for diluted earnings per share
$
62.8

 
$
49.1

Shares:
 

 
 

Weighted average shares outstanding for basic earnings per share
240,895

 
251,121

Effect of dilutive securities on weighted average shares:
 

 
 

7% Debentures
53,367

 
53,367

Stock option and restricted stock plans
2,582

 
2,748

Warrants
499

 
262

Dilutive potential common shares
56,448

 
56,377

Weighted average shares outstanding for diluted earnings per share
297,343

 
307,498

BUSINESS SEGMENTS (TABLES)
Schedule of Segment Reporting Information, by Segment [Table Text Block] 
Operating information by segment was as follows (dollars in millions):
 
Three months ended
 
March 31,
 
2012
 
2011
Revenues:
 
 
 
Bankers Life:
 
 
 
Insurance policy income:
 
 
 
Annuities
$
7.2

 
$
8.4

Health
334.1

 
339.8

Life
65.2

 
51.8

Net investment income (a)
234.9

 
209.6

Fee revenue and other income (a)
2.9

 
2.3

Total Bankers Life revenues
644.3

 
611.9

Washington National:
 

 
 

Insurance policy income:
 

 
 

Health
142.4

 
140.2

Life
4.3

 
4.1

Other
.7

 
1.1

Net investment income (a)
50.0

 
46.3

Fee revenue and other income (a)
.2

 
.3

Total Washington National revenues
197.6

 
192.0

Colonial Penn:
 

 
 

Insurance policy income:
 

 
 

Health
1.4

 
1.6

Life
52.0

 
48.7

Net investment income (a)
10.0

 
10.3

Fee revenue and other income (a)
.2

 
.2

Total Colonial Penn revenues
63.6

 
60.8

Other CNO Business:
 

 
 

Insurance policy income:
 

 
 

Annuities
2.5

 
2.3

Health
6.7

 
7.3

Life
69.6

 
61.3

Other
.2

 
.6

Net investment income (a)
92.7

 
94.7

Total Other CNO Business revenues
171.7

 
166.2

Corporate operations:
 

 
 

Net investment income
23.2

 
12.6

Fee and other income
.6

 
.6

Total corporate revenues
23.8

 
13.2

Total revenues
1,101.0

 
1,044.1


(continued on next page)
(continued from previous page)
 
Three months ended
 
March 31,
 
2012
 
2011
Expenses:
 
 
 
Bankers Life:
 
 
 
Insurance policy benefits
$
420.9

 
$
404.8

Amortization
56.9

 
68.5

Interest expense on investment borrowings
1.4

 
1.2

Other operating costs and expenses
94.6

 
75.2

Total Bankers Life expenses
573.8

 
549.7

Washington National:
 

 
 

Insurance policy benefits
115.7

 
112.2

Amortization
12.7

 
13.4

Interest expense on investment borrowings
.7

 
—

Other operating costs and expenses
43.8

 
42.1

Total Washington National expenses
172.9

 
167.7

Colonial Penn:
 

 
 

Insurance policy benefits
42.1

 
38.7

Amortization
3.7

 
4.0

Other operating costs and expenses
27.6

 
23.8

Total Colonial Penn expenses
73.4

 
66.5

Other CNO Business:
 

 
 

Insurance policy benefits
121.9

 
127.5

Amortization
7.5

 
8.6

Interest expense on investment borrowings
5.1

 
4.9

Other operating costs and expenses
39.5

 
17.8

Total Other CNO Business expenses
174.0

 
158.8

Corporate operations:
 

 
 

Interest expense on corporate debt
17.5

 
20.6

Interest expense on borrowings of variable interest entities
4.0

 
2.5

Interest expense on investment borrowings
.1

 
—

Loss on extinguishment of debt
.2

 
1.4

Other operating costs and expenses
21.5

 
11.2

Total corporate expenses
43.3

 
35.7

Total expenses
1,037.4

 
978.4

Income (loss) before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes:
 

 
 
Bankers Life
70.5

 
62.2

Washington National
24.7

 
24.3

Colonial Penn
(9.8
)
 
(5.7
)
Other CNO Business
(2.3
)
 
7.4

Corporate operations
(19.5
)
 
(22.5
)
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
$
63.6

 
$
65.7

___________________
(a)
It is not practicable to provide additional components of revenue by product or services.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] 
A reconciliation of segment revenues and expenses to consolidated revenues and expenses is as follows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Total segment revenues
$
1,101.0

 
$
1,044.1

Net realized investment gains
22.9

 
5.1

Consolidated revenues
$
1,123.9

 
$
1,049.2

 
 
 
 
Total segment expenses
$
1,037.4

 
$
978.4

Insurance policy benefits - fair value changes in embedded derivative liabilities
(11.6
)
 
—

Amortization related to fair value changes in embedded derivative liabilities
4.7

 
—

Amortization related to net realized investment gains
1.1

 
.4

Consolidated expenses
$
1,031.6

 
$
978.8

INCOME TAXES (TABLES)
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] 
The components of income tax expense were as follows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Current tax expense
$
3.3

 
$
3.1

Deferred tax provision
29.9

 
21.9

Total income tax expense
$
33.2

 
$
25.0

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] 
A reconciliation of the U.S. statutory corporate tax rate to the effective rate reflected in the consolidated statement of operations is as follows:
 

Three months ended

March 31,
 
2012
 
2011
U.S. statutory corporate rate
35.0
 %
 
35.0
 %
Other nondeductible benefits
1.2

 
(1.0
)
State taxes
1.1

 
.7

Provision for tax issues, tax credits and other
(1.3
)
 
.8

Effective tax rate
36.0
 %
 
35.5
 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] 
The components of the Company’s income tax assets and liabilities were as follows (dollars in millions):
 
March 31,
2012
 
December 31,
2011
Deferred tax assets:
 
 
 
Net federal operating loss carryforwards attributable to:
 
 
 
Life insurance subsidiaries
$
545.1

 
$
583.0

Non-life companies
863.6

 
862.2

Net state operating loss carryforwards
16.6

 
16.8

Tax credits
34.8

 
32.6

Capital loss carryforwards
331.1

 
342.3

Deductible temporary differences:
 

 
 

Insurance liabilities
764.8

 
744.4

Other
46.8

 
64.8

Gross deferred tax assets
2,602.8

 
2,646.1

Deferred tax liabilities:
 

 
 

Investments
(25.8
)
 
(24.2
)
Present value of future profits and deferred acquisition costs
(348.4
)
 
(363.7
)
Unrealized appreciation on investments
(450.9
)
 
(434.8
)
Gross deferred tax liabilities
(825.1
)
 
(822.7
)
Net deferred tax assets before valuation allowance
1,777.7

 
1,823.4

Valuation allowance
(938.4
)
 
(938.4
)
Net deferred tax assets
839.3

 
885.0

Current income taxes accrued
(19.4
)
 
(19.6
)
Income tax assets, net
$
819.9

 
$
865.4

Summary of Operating Loss Carryforwards [Table Text Block] 
.

As of March 31, 2012, we had $4.0 billion of federal NOLs and $.9 billion of capital loss carryforwards, which expire as follows (dollars in millions):

Year of expiration
 
Net operating loss carryforwards (a)
 
Capital loss
 
Total loss
 
 
Life
 
Non-life
 
carryforwards
 
carryforwards
2013
 
$
—

 
 
 
$
—

 
 
 
$
908.3

 
(b)
 
$
908.3

2014
 
—

 
 
 
—

 
 
 
28.7

 
 
 
28.7

2015
 
—

 
 
 
—

 
 
 
8.9

 
 
 
8.9

2018
 
1,323.8

 
(a)
 
—

 
 
 
—

 
 
 
1,323.8

2021
 
29.6

 
 
 
—

 
 
 
—

 
 
 
29.6

2022
 
204.1

 
 
 
—

 
 
 
—

 
 
 
204.1

2023
 
—

 
(b)
 
1,975.2

 
(a)
 
—

 
 
 
1,975.2

2024
 
—

 
 
 
3.2

 
 
 
—

 
 
 
3.2

2025
 
—

 
 
 
118.8

 
 
 
—

 
 
 
118.8

2027
 
—

 
 
 
216.8

 
 
 
—

 
 
 
216.8

2028
 
—

 
 
 
.5

 
 
 
—

 
 
 
.5

2029
 
—

 
 
 
148.8

 
 
 
—

 
 
 
148.8

2031
 
—

 
 
 
4.0

 
 
 
—

 
 
 
4.0

Total
 
$
1,557.5

 
 
 
$
2,467.3

 
 
 
$
945.9

 
 
 
$
4,970.7

 
_________________________
(a)
The allocation of the NOLs summarized above assumes the IRS does not take an adverse position in the future regarding the tax position we plan to take in our tax returns with respect to the allocation of CODI.  If the IRS disagrees with the tax position we plan to take with respect to the allocation of CODI, and their position prevails, approximately $631 million of the NOLs expiring in 2018 would be characterized as non-life NOLs.
(b)
Capital loss carryforwards expiring in 2013 include a $742 million loss on our investment in Senior Health which was worthless when it was transferred to the Independent Trust in 2008. Due to uncertainties in the Code, we have reflected this loss as an ordinary loss in our tax return. If classifying this loss as ordinary is ultimately determined to be correct, capital loss carryforwards expiring in 2013 would decrease and life NOLs expiring in 2023 would increase by $742 million.

NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS (TABLES)
Schedule of Long-term Debt Instruments [Table Text Block] 
The following notes payable were direct corporate obligations of the Company as of March 31, 2012 and December 31, 2011 (dollars in millions):

 
March 31,
2012
 
December 31,
2011
7.0% Debentures
$
293.0

 
$
293.0

Senior Secured Credit Agreement (as defined below)
245.8

 
255.2

9.0% Senior Secured Notes due January 2018 (the “9.0% Senior Secured Notes”)
275.0

 
275.0

Senior Health Note due November 12, 2013 (the “Senior Health Note”)
—

 
50.0

Unamortized discount on 7.0% Debentures
(12.4
)
 
(12.9
)
Unamortized discount on Senior Secured Credit Agreement
(2.1
)
 
(2.4
)
Direct corporate obligations
$
799.3

 
$
857.9

Schedule of Maturities of Long-term Debt [Table Text Block] 
The scheduled repayment of our direct corporate obligations was as follows at March 31, 2012 (dollars in millions):

Year ending March 31,
 
2013
$
33.8

2014
60.0

2015
77.5

2016
74.5

2017
293.0

Thereafter
275.0

 
$
813.8

INVESTMENT BORROWINGS (TABLES)
Schedule of Terms of Federal Home Loan Bank Borrowing [Table Text Block]
The following summarizes the terms of the borrowings (dollars in millions):

Amount
 
Maturity
 
Interest rate at
borrowed
 
date
 
March 31, 2012
$
100.0

 
October 2013
 
Variable rate – 0.572%
100.0

 
November 2013
 
Variable rate – 0.583%
67.0

 
February 2014
 
Fixed rate – 1.830%
50.0

 
August 2014
 
Variable rate – 0.633%
100.0

 
September 2015
 
Variable rate – 0.853%
150.0

 
October 2015
 
Variable rate – 0.592%
100.0

 
November 2015
 
Fixed rate – 4.890%
146.0

 
November 2015
 
Fixed rate – 5.300%
100.0

 
December 2015
 
Fixed rate – 4.710%
100.0

 
June 2016
 
Variable rate – 0.682%
75.0

 
June 2016
 
Variable rate – 0.630%
75.0

 
August 2016
 
Variable rate – 0.701%
100.0

 
October 2016
 
Variable rate – 0.761%
50.0

 
November 2016
 
Variable rate – 0.750%
50.0

 
November 2016
 
Variable rate – 0.712%
100.0

 
June 2017
 
Variable rate – 0.763%
50.0

 
August 2017
 
Variable rate – 0.703%
100.0

 
October 2017
 
Variable rate – 1.002%
37.0

 
November 2017
 
Fixed rate – 3.750%
$
1,650.0

 
 
 
 
CHANGES IN COMMON STOCK (TABLES)
Schedule of Stock by Class
Changes in the number of shares of common stock outstanding were as follows (shares in thousands):

Balance, December 31, 2011
241,305

 
 
Treasury stock purchased and retired
(2,437
)
 
 
Stock options exercised
30

 
 
Restricted stock vested
321

 
(a)
Balance, March 31, 2012
239,219

 
 
________
(a)
Such amount was reduced by 142 thousand shares which were tendered to the Company for the payment of federal and state taxes owed on the vesting of restricted stock.
RECENTLY ISSUED ACCOUNTING STANDARDS RECENTLY ISSUED ACCOUNTING STANDARDS (Tables)
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] 
The adoption of ASU 2010-26 had the following impact on our consolidated balance sheet and consolidated statement of operations as of and for the three months ended March 31, 2012 (dollars in millions, except per share amounts):

 
March 31, 2012
 
Amounts prior to adoption of ASU 2010-26
 
Effect of adoption of ASU 2010-26
 
As reported
Deferred acquisition costs
$
1,580.4

 
$
(790.0
)
 
$
790.4

Income tax assets, net
525.0

 
294.9

 
819.9

Other assets
426.2

 
(23.9
)
 
402.3

Total assets
33,565.2

 
(519.0
)
 
33,046.2

 
 
 
 
 
 
Other liabilities
713.2

 
7.8

 
721.0

Total liabilities
28,355.4

 
7.8

 
28,363.2

 
 
 
 
 
 
Accumulated other comprehensive income
749.5

 
58.5

 
808.0

Retained earnings (accumulated deficit)
112.3

 
(585.3
)
 
(473.0
)
Total shareholders' equity
5,209.8

 
(526.8
)
 
4,683.0

Total liabilities and shareholders' equity
33,565.2

 
(519.0
)
 
33,046.2


 
Three months ended
 
March 31, 2012
 
Amounts prior to adoption of ASU 2010-26
 
Effect of adoption of ASU 2010-26
 
As reported
Amortization
$
131.8

 
$
(45.2
)
 
$
86.6

Other operating costs and expenses
165.5

 
61.5

 
227.0

Total benefits and expenses
1,015.3

 
16.3

 
1,031.6

Income before income taxes
108.6

 
(16.3
)
 
92.3

Tax expense on period income
39.1

 
(5.9
)
 
33.2

Net income
69.5

 
(10.4
)
 
59.1

 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
  Basic:
 
 
 
 
 
    Net income
$
.29

 
$
(.04
)
 
$
.25

  Diluted:
 
 
 
 
 
    Net income
.25

 
(.04
)
 
.21

The adoption of ASU 2010-26 affected prior period information as follows (dollars in millions, except per share amounts):

 
December 31, 2011
 
As originally reported
 
Effect of adoption of ASU 2010-26
 
As adjusted
Deferred acquisition costs
$
1,418.1

 
$
(621.0
)
 
$
797.1

Income tax assets, net
630.5

 
234.9

 
865.4

Other assets
316.9

 
(24.7
)
 
292.2

Total assets
33,332.7

 
(410.8
)
 
32,921.9

 
 
 
 
 
 
Other liabilities
548.3

 
8.0

 
556.3

Total liabilities
28,300.1

 
8.0

 
28,308.1

 
 
 
 
 
 
Accumulated other comprehensive income
625.5

 
156.1

 
781.6

Retained earnings (accumulated deficit)
42.8

 
(574.9
)
 
(532.1
)
Total shareholders' equity
5,032.6

 
(418.8
)
 
4,613.8

Total liabilities and shareholders' equity
33,332.7

 
(410.8
)
 
32,921.9


 
Three months ended
 
March 31, 2011
 
As originally reported
 
Effect of adoption of ASU 2010-26
 
As adjusted
Amortization
$
136.7

 
$
(41.8
)
 
$
94.9

Other operating costs and expenses
115.1

 
55.0

 
170.1

Total benefits and expenses
965.6

 
13.2

 
978.8

Income before income taxes
83.6

 
(13.2
)
 
70.4

Tax expense on period income
29.7

 
(4.7
)
 
25.0

Net income
53.9

 
(8.5
)
 
45.4

 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
  Basic:
 
 
 
 
 
    Net income
$
.21

 
$
(.03
)
 
$
.18

  Diluted:
 
 
 
 
 
    Net income
.19

 
(.03
)
 
.16



 
Three months ended
 
March 31, 2011
 
As originally reported
 
Effect of adoption of ASU 2010-26
 
As adjusted
Cash flows from operating activities:
 
 
 
 
 
  Deferrable policy acquisition costs
$
(109.4
)
 
$
56.2

 
$
(53.2
)
  Other operating costs
(124.7
)
 
(56.2
)
 
(180.9
)
Net cash used by operating activities
155.3

 
—

 
155.3

Schedule of Changes in Deferred Acquisition Costs [Table Text Block] 
Changes in deferred acquisition costs were as follows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Balance, beginning of period
$
797.1

 
$
999.6

Additions
46.2

 
53.2

Amortization
(56.8
)
 
(56.8
)
Amounts related to fair value adjustment of fixed maturities, available for sale
3.9

 
(6.7
)
Balance, end of period
$
790.4

 
$
989.3

CONSOLIDATED STATEMENT CASH FLOWS (TABLES)
Reconciliation Of Net Income To Net Cash Provided By Operating Activities [Table Text Block] 
The following reconciles net income to net cash provided by operating activities (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Cash flows from operating activities:
 
 
 
Net income
$
59.1

 
$
45.4

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 

Amortization and depreciation
91.1

 
101.5

Income taxes
29.5

 
24.3

Insurance liabilities
39.9

 
109.1

Accrual and amortization of investment income
(104.1
)
 
(48.3
)
Deferral of policy acquisition costs
(46.2
)
 
(53.2
)
Net realized investment gains
(22.9
)
 
(5.1
)
Loss on extinguishment of debt
.2

 
1.4

Other
31.6

 
(19.8
)
Net cash provided by operating activities
$
78.2

 
$
155.3

Schedule of Other Significant Noncash Transactions [Table Text Block] 
Non-cash items not reflected in the investing and financing activities sections of the consolidated statement of cash flows (dollars in millions):

 
Three months ended
 
March 31,
 
2012
 
2011
Stock option and restricted stock plans
$
2.5

 
$
1.9

INVESTMENTS IN VARIABLE INTEREST ENTITIES (TABLES)
Schedule of Impact On Balance Sheet of Consolidating Variable Interest Entities [Table Text Block] 
The following table provides supplemental information about the assets and liabilities of the VIEs which have been consolidated in accordance with authoritative guidance (dollars in millions):

 
March 31, 2012
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
564.7

 
$
—

 
$
564.7

Notes receivable of VIEs held by insurance subsidiaries
—

 
(75.4
)
 
(75.4
)
Cash and cash equivalents held by variable interest entities
65.8

 
—

 
65.8

Accrued investment income
2.2

 
—

 
2.2

Income tax assets, net
4.9

 
(1.5
)
 
3.4

Other assets
16.2

 
—

 
16.2

Total assets
$
653.8

 
$
(76.9
)
 
$
576.9

Liabilities:
 

 
 

 
 

Other liabilities
$
63.6

 
$
(.4
)
 
$
63.2

Borrowings related to variable interest entities
519.9

 
—

 
519.9

Notes payable of VIEs held by insurance subsidiaries
79.5

 
(79.5
)
 
—

Total liabilities
$
663.0

 
$
(79.9
)
 
$
583.1



 
December 31, 2011
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
496.3

 
$
—

 
$
496.3

Notes receivable of VIEs held by insurance subsidiaries
—

 
(45.3
)
 
(45.3
)
Cash and cash equivalents held by variable interest entities
74.4

 
—

 
74.4

Accrued investment income
1.7

 
—

 
1.7

Income tax assets, net
6.8

 
(1.4
)
 
5.4

Other assets
7.7

 
—

 
7.7

Total assets
$
586.9

 
$
(46.7
)
 
$
540.2

Liabilities:
 

 
 

 
 

Other liabilities
$
30.3

 
$
(.1
)
 
$
30.2

Borrowings related to variable interest entities
519.9

 
—

 
519.9

Notes payable of VIEs held by insurance subsidiaries
49.3

 
(49.3
)
 
—

Total liabilities
$
599.5

 
$
(49.4
)
 
$
550.1

Variable Interest Entities, Fair Value by Contractual Maturity [Table Text Block] 
The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at March 31, 2012, by contractual maturity.  Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

 
Amortized
cost
 
Estimated
fair
value
 
(Dollars in millions)
Due in one year or less
$
.5

 
$
.5

Due after one year through five years
308.5

 
306.5

Due after five years through ten years
257.1

 
257.7

Total
$
566.1

 
$
564.7

FAIR VALUE MEASUREMENTS (TABLES)
Fair Value, Measurement Inputs, Disclosure [Table Text Block] 
The following table provides additional information about the significant unobservable (Level 3) inputs developed internally by the Company to determine fair value for certain assets and liabilities carried at fair value at March 31, 2012 (dollars in millions):

 
Fair Value at March 31, 2012
 
Valuation Technique(s)
 
Unobservable Inputs
 
Range (Weighted Average)
Assets:
 
 
 
 
 
 
 
Corporate securities (a)
$
175.7

 
Discounted cash flow analysis
 
Discount margins
 
1.90% - 6.50% (3.49%)
Asset-backed securities (b)
11.2

 
Discounted cash flow analysis
 
Discount margins
 
2.16% - 2.32% (2.31%)
Collateralized debt obligations (c)
336.0

 
Discounted cash flow analysis
 
Recoveries
 
58% - 66% (ramp over 6 months)
 
 
 
 
 
Constant prepayment rate
 
20%
 
 
 
 
 
Discount margins
 
1.70% - 12.10% (3.32%)
 
 
 
 
 
Annual default rate
 
.95% - 5.95% (3.01%)
 
 
 
 
 
Portfolio CCC %
 
1.80% - 21.41% (11.67%)
Equity securities (d)
3.2

 
Discounted cash flow analysis
 
Earnings multiple of capital and surplus
 
.18 -.37 (.308)
Venture capital investments (e)
65.2

 
Market multiples
 
EBITDA multiple
 
3.9 - 45.1 (12.69)
 
 
 
 
 
Revenue multiple
 
0.6 - 6.9 (4.38)
 
 
 
 
 
Book equity multiple
 
1.0 - 5.8 (1)
Other assets categorized as Level 3 (f)
131.9

 
Unadjusted third-party price source
 
Not applicable
 
Not applicable
Total
723.2

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest sensitive products (g)
707.7

 
Discounted projected embedded derivatives
 
Projected portfolio yields
 
5.35% - 5.61% (5.55%)
 
 
 
 
 
Discount rates
 
0.0 - 4.3% (1.8%)
 
 
 
 
 
Surrender rates
 
4% - 43% (19%)
________________________________
(a)
Corporate securities - The significant unobservable input used in the fair value measurement of our corporate securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would result in a significantly lower (higher) fair value measurement.
(b)
Asset-backed securities - The significant unobservable input used in the fair value measurement of our asset-backed securities is discount margin added to a riskless market yield. Significant increases (decreases) in discount margin in isolation would result in a significantly lower (higher) fair value measurement.
(c)
Collateralized debt obligations - The significant unobservable inputs used in the fair value measurement of our collateralized debt obligations relate to collateral performance, including default rate, recoveries and constant prepayment rate, as well as discount margins of the underlying collateral. Significant increases (decreases) in default rate in isolation would result in a significantly lower (higher) fair value measurement. Generally, a significant increase (decrease) in the constant prepayment rate and recoveries in isolation would result in a significantly higher (lower) fair value measurement. Generally a significant increase (decrease) in discount margin in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the annual default rate is accompanied by a directionally similar change in the assumption used for discount margins and portfolio CCC % and a directionally opposite change in the assumption used for constant prepayment rate and recoveries. A tranche's payment priority and investment cost basis could alter generalized fair value outcomes.
(d)
Equity securities - The significant unobservable input used in the fair value measurement of our securities is the earnings multiple of capital and surplus. Significant increases (decreases) in the earnings multiple of the capital and surplus in isolation would result in a significantly higher (lower) fair value measurement.

(e)
Venture capital investments - The significant unobservable inputs used in the fair value measurement of our venture capital investments are the EBITDA multiple and revenue multiple. Generally, a significant increase (decrease) in the EBITDA or revenue multiples in isolation would result in a significantly higher (lower) fair value measurement.
(f)
Other assets categorized as Level 3 - For these assets, there were no adjustments to quoted market prices obtained from third-party pricing sources.
(g)
Interest sensitive products - The significant unobservable inputs used in the fair value measurement of our interest sensitive products are projected portfolio yields, discount rates and surrender rates. Increases (decreases) in projected portfolio yields in isolation would lead to a higher (lower) fair value measurement. The discount rate is based on the Treasury rate adjusted by a margin. Increases (decreases) in the discount rates would lead to a lower (higher) fair value measurement. Assumed surrender rates are used to project how long the contracts remain in force. Generally, the longer the contracts are assumed to be in force the higher the fair value of the embedded derivative.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] 
The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at March 31, 2012 is as follows (dollars in millions):

 
Quoted prices in active markets
 for identical assets or liabilities
(Level 1)
 
Significant other observable inputs
 (Level 2)
 
Significant unobservable inputs 
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
Corporate securities
$
—

 
$
15,654.3

 
$
268.0

 
$
15,922.3

United States Treasury securities and obligations of United States government corporations and agencies
20.0

 
267.5

 
1.6

 
289.1

States and political subdivisions
—

 
1,974.3

 
9.6

 
1,983.9

Debt securities issued by foreign governments
—

 
.8

 
—

 
.8

Asset-backed securities
—

 
1,384.3

 
22.7

 
1,407.0

Collateralized debt obligations
—

 
—

 
332.4

 
332.4

Commercial mortgage-backed securities
—

 
1,499.3

 
—

 
1,499.3

Mortgage pass-through securities
—

 
27.9

 
2.2

 
30.1

Collateralized mortgage obligations
—

 
2,298.1

 
14.7

 
2,312.8

Total fixed maturities, available for sale
20.0

 
23,106.5

 
651.2

 
23,777.7

Equity securities:
 
 
 
 
 
 
 
Corporate securities
20.1

 
88.0

 
3.2

 
111.3

Venture capital investments
—

 
—

 
65.2

 
65.2

Total equity securities
20.1

 
88.0

 
68.4

 
176.5

Trading securities:
 

 
 

 
 

 
 

Corporate securities
.1

 
51.5

 
—

 
51.6

United States Treasury securities and obligations of United States government corporations and agencies
—

 
4.9

 
—

 
4.9

States and political subdivisions
—

 
15.7

 
—

 
15.7

Asset-backed securities
—

 
9.7

 
—

 
9.7

Collateralized debt obligations
—

 
—

 
3.6

 
3.6

Commercial mortgage-backed securities
—

 
20.7

 
—

 
20.7

Mortgage pass-through securities
—

 
.2

 
—

 
.2

Collateralized mortgage obligations
—

 
14.3

 
—

 
14.3

Equity securities
.3

 
1.3

 
—

 
1.6

Total trading securities
.4

 
118.3

 
3.6

 
122.3

Investments held by variable interest entities - corporate securities
—

 
564.7

 
—

 
564.7

Other invested assets:
 
 
 
 
 
 
 
Company-owned life insurance
—

 
111.2

 
—

 
111.2

Hedge funds
—

 
18.0

 
—

 
18.0

Derivatives
.2

 
88.3

 
—

 
88.5

Total other invested assets
.2

 
217.5

 
—

 
217.7

Cash and cash equivalents - unrestricted:
 
 
 
 
 
 
 
Cash
105.1

 
—

 
—

 
105.1

Cash equivalents and short-term investments
—

 
68.4

 
—

 
68.4

Total cash and cash equivalents - unrestricted
105.1

 
68.4

 
—

 
173.5

Cash and cash equivalents held by variable interest entities
65.8

 
—

 
—

 
65.8

Assets held in separate accounts
—

 
16.0

 
—

 
16.0

Total assets carried at fair value by category
$
211.6

 
$
24,179.4

 
$
723.2

 
$
25,114.2

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
$
—

 
$
—

 
$
704.3

 
$
704.3

Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
—

 
3.4

 
3.4

Total liabilities for insurance products
—

 
—

 
707.7

 
707.7

Total liabilities carried at fair value by category
$
—

 
$
—

 
$
707.7

 
$
707.7

The categorization of fair value measurements, by input level, for our fixed maturity securities, equity securities, trading securities, certain other invested assets, assets held in separate accounts and embedded derivative instruments included in liabilities for insurance products at December 31, 2011 is as follows (dollars in millions):

 
Quoted prices in active markets
 for identical assets or liabilities
 (Level 1)
 
Significant other observable
inputs
(Level 2) (a)
 
 
 
Significant unobservable inputs
 (Level 3) (a)
 
 
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
$
—

 
$
15,594.4

 
 
 
$
278.1

 
 
 
$
15,872.5

United States Treasury securities and obligations of United States government corporations and agencies
—

 
303.8

 
 
 
1.6

 
 
 
305.4

States and political subdivisions
—

 
1,952.3

 
 
 
2.1

 
 
 
1,954.4

Debt securities issued by foreign governments
—

 
1.4

 
 
 
—

 
 
 
1.4

Asset-backed securities
—

 
1,334.3

 
 
 
79.7

 
 
 
1,414.0

Collateralized debt obligations
—

 
—

 
 
 
327.3

 
 
 
327.3

Commercial mortgage-backed securities
—

 
1,415.7

 
 
 
17.3

 
 
 
1,433.0

Mortgage pass-through securities
—

 
29.8

 
 
 
2.2

 
 
 
32.0

Collateralized mortgage obligations
—

 
2,051.2

 
 
 
124.8

 
 
 
2,176.0

Total fixed maturities, available for sale
—

 
22,682.9

 
 
 
833.1

 
 
 
23,516.0

Equity securities
17.9

 
87.3

 
 
 
69.9

 
 
 
175.1

Trading securities:
 

 
 

 
 
 
 

 
 
 
 

Corporate securities
—

 
67.6

 
 
 
—

 
 
 
67.6

United States Treasury securities and obligations of United States government corporations and agencies
—

 
4.9

 
 
 
—

 
 
 
4.9

States and political subdivisions
—

 
15.6

 
 
 
—

 
 
 
15.6

Asset-backed securities
—

 
.1

 
 
 
—

 
 
 
.1

Commercial mortgage-backed securities
—

 
—

 
 
 
.4

 
 
 
.4

Mortgage pass-through securities
—

 
.2

 
 
 
—

 
 
 
.2

Collateralized mortgage obligations
—

 
.7

 
 
 
—

 
 
 
.7

Equity securities
.7

 
1.4

 
 
 
—

 
 
 
2.1

Total trading securities
.7

 
90.5

 
 
 
.4

 
 
 
91.6

Investments held by variable interest entities
—

 
496.3

 
 
 
—

 
 
 
496.3

Other invested assets
—

 
159.9

 
(b)
 
—

 
 
 
159.9

Assets held in separate accounts
—

 
15.0

 
 
 
—

 
 
 
15.0

Liabilities:
 

 
 

 
 
 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 
 
 

 
 
 
 

Interest-sensitive products
—

 
—

 
 
 
669.8

 
(c)
 
669.8

_____________
(a)
We revised the hierarchy classification of certain fixed maturities, equity securities, trading securities and other invested assets as we believe the observability of the inputs more closely represent Level 2 valuations.
(b)
Includes company-owned life insurance and derivatives.
(c)
Includes $666.3 million of embedded derivatives associated with our fixed index annuity products and $3.5 million of embedded derivatives associated with a modified coinsurance agreement.
The fair value measurements for our financial instruments disclosed at fair value on a recurring basis are as follows (dollars in millions):

 
March 31, 2012
 
December 31, 2011
 
Quoted prices in active markets for identical assets or liabilities
(Level 1)
 
Significant other observable inputs
 (Level 2)
 
Significant unobservable inputs 
(Level 3)
 
Total estimated fair value
 
Total carrying amount
 
Total estimated fair value
 
Total carrying amount
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage loans
$
—

 
$
—

 
$
1,662.4

 
$
1,662.4

 
$
1,546.7

 
$
1,735.4

 
$
1,602.8

Policy loans
—

 
277.8

 
—

 
277.8

 
277.8

 
279.7

 
279.7

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives (a)
—

 
—

 
12,395.7

 
12,395.7

 
12,395.7

 
13,165.5

 
13,165.5

Investment borrowings
—

 
1,737.2

 
—

 
1,737.2

 
1,684.9

 
1,735.7

 
1,676.5

Borrowings related to variable interest entities
—

 
495.1

 
—

 
495.1

 
519.9

 
485.1

 
519.9

Notes payable – direct corporate obligations
—

 
1,012.0

 
—

 
1,012.0

 
799.3

 
978.3

 
857.9


____________________
(a)
The estimated fair value of insurance liabilities for interest-sensitive products was approximately equal to its carrying value at March 31, 2012.  This was because interest rates credited on the vast majority of account balances approximate current rates paid on similar products and because these rates are not generally guaranteed beyond one year.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] 
The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the three months ended March 31, 2012 (dollars in millions):


 
March 31, 2012
 
 
 
Beginning balance as of December 31, 2011 (a)
 
Purchases, sales, issuances and settlements, net (c)
 
Total realized and unrealized gains (losses) included in net income
 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
 
Transfers into Level 3
 
Transfers out of Level 3 (b)
 
Ending balance as of March 31, 2012
 
Amount of total gains (losses) for the three months ended March 31, 2012 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
$
278.1

 
$
15.0

 
$
—

 
$
.5

 
$
51.2

 
$
(76.8
)
 
$
268.0

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
1.6

 
—

 
—

 
—

 
—

 
—

 
1.6

 
—

States and political subdivisions
2.1

 
—

 
—

 
.1

 
7.4

 
—

 
9.6

 
—

Asset-backed securities
79.7

 
(8.2
)
 
(.4
)
 
(1.3
)
 
4.7

 
(51.8
)
 
22.7

 
—

Collateralized debt obligations
327.3

 
(.8
)
 
—

 
5.9

 
—

 
—

 
332.4

 
—

Commercial mortgage-backed securities
17.3

 
—

 
—

 
—

 
—

 
(17.3
)
 
—

 
—

Mortgage pass-through securities
2.2

 
—

 
—

 
—

 
—

 
—

 
2.2

 
—

Collateralized mortgage obligations
124.8

 
3.5

 
—

 
.1

 
10.9

 
(124.6
)
 
14.7

 
—

Total fixed maturities, available for sale
833.1

 
9.5

 
(.4
)
 
5.3

 
74.2

 
(270.5
)
 
651.2

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
6.4

 
—

 
(3.8
)
 
.6

 
—

 
—

 
3.2

 
(3.8
)
Venture capital investments
63.5

 
—

 
—

 
1.7

 
—

 
—

 
65.2

 
—

Total equity securities
69.9

 
—

 
(3.8
)
 
2.3

 
—

 
—

 
68.4

 
(3.8
)
Trading securities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Collateralized debt obligations
—

 
3.2

 
.4

 
—

 
—

 
—

 
3.6

 
.4

Commercial mortgage-backed securities
.4

 
—

 
—

 
—

 
—

 
(.4
)
 
—

 
—

Total trading securities
.4

 
3.2

 
.4

 
—

 
—

 
(.4
)
 
3.6

 
.4

Liabilities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Interest-sensitive products
(669.8
)
 
(50.5
)
 
12.6

 
—

 
—

 
—

 
(707.7
)
 
12.6


____________
(a)
We revised the hierarchy classification of certain fixed maturities, equity securities, trading securities and other invested assets as we believe the observability of the inputs more closely represent Level 2 valuations.
(b)
For our fixed maturity securities, the majority of our transfers out of Level 3 are the result of obtaining a valuation from an independent pricing service at the end of the period, whereas a broker quote was used as of the beginning of the period.
(c)
Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period.  Such activity primarily consists of purchases and sales of fixed maturity and equity securities and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts.  The following summarizes such activity for the three months ended March 31, 2012 (dollars in millions):

 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
15.0

 
$
—

 
$
—

 
$
—

 
$
15.0

Asset-backed securities
—

 
(8.2
)
 
—

 
—

 
(8.2
)
Collateralized debt obligations
28.3

 
(29.1
)
 
—

 
—

 
(.8
)
Collateralized mortgage obligations
14.4

 
(10.9
)
 
—

 
—

 
3.5

Total fixed maturities, available for sale
57.7

 
(48.2
)
 
—

 
—

 
9.5

Trading securities - collateralized debt obligations
3.2

 
—

 
—

 
—

 
3.2

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products
(27.3
)
 
5.0

 
(38.9
)
 
10.7

 
(50.5
)
The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the three months ended March 31, 2011 (dollars in millions):

 
 
March 31, 2011
 
 
 
 
Beginning balance as of December 31, 2010
 
Purchases, sales, issuances and settlements, net (a)
 
Total realized and unrealized gains (losses) included in net income
 
Total realized and unrealized gains (losses) included in other comprehensive income (loss)
 
Transfers into Level 3
 
Transfers out of Level 3
 
Ending balance as of March 31, 2011
 
Amount of total gains (losses) for the three months ended March 31, 2011 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
$
1,907.8

 
$
(63.2
)
 
$
(11.8
)
 
$
9.1

 
$
11.2

 
$
—

 
$
1,853.1

 
$
6.4

United States Treasury securities and obligations of United States government corporations and agencies
 
2.0

 
—

 
—

 
(.3
)
 
—

 
—

 
1.7

 
—

States and political subdivisions
 
2.5

 
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
—

Asset-backed securities
 
182.3

 
(1.8
)
 
—

 
(.5
)
 
27.4

 
—

 
207.4

 
—

Collateralized debt obligations
 
256.5

 
(76.7
)
 
2.1

 
4.3

 
—

 
—

 
186.2

 
—

Mortgage pass-through securities
 
3.5

 
(.2
)
 
—

 
—

 
—

 
—

 
3.3

 
—

Collateralized mortgage obligations
 
197.1

 
11.5

 
—

 
1.7

 
90.9

 
(53.7
)
 
247.5

 
—

Total fixed maturities, available for sale
 
2,551.7

 
(130.4
)
 
(9.7
)
 
14.3

 
129.5

 
(56.2
)
 
2,499.2

 
6.4

Equity securities
 
7.6

 
37.5

 
(.8
)
 
.7

 
—

 
—

 
45.0

 
—

Trading securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Collateralized mortgage obligations
 
.4

 
—

 
.1

 
—

 
—

 
—

 
.5

 
.1

Total trading securities
 
.4

 
—

 
.1

 
—

 
—

 
—

 
.5

 
.1

Investments held by variable interest entities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
6.7

 
(7.9
)
 
1.5

 
(.3
)
 
—

 
—

 
—

 
—

Liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities for insurance products:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-sensitive products
 
(553.2
)
 
(36.1
)
 
1.8

 
—

 
—

 
—

 
(587.5
)
 
1.8


____________
(a)
Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period.  Such activity primarily consists of purchases and sales of fixed maturity and equity securities and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts.  The following summarizes such activity for the three months ended March 31, 2011 (dollars in millions):


 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
45.0

 
$
(108.2
)
 
$
—

 
$
—

 
$
(63.2
)
Asset-backed securities
—

 
(1.8
)
 
—

 
—

 
(1.8
)
Collateralized debt obligations
1.7

 
(78.4
)
 
—

 
—

 
(76.7
)
Mortgage pass-through securities
—

 
(.2
)
 
—

 
—

 
(.2
)
Collateralized mortgage obligations
18.4

 
(6.9
)
 
—

 
—

 
11.5

Total fixed maturities, available for sale
65.1

 
(195.5
)
 
—

 
—

 
(130.4
)
Equity securities
37.5

 
—

 
—

 
—

 
37.5

Investments held by variable interest entities:
 
 
 
 
 
 
 
 
 
Corporate securities
—

 
(7.9
)
 
—

 
—

 
(7.9
)
Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products
(25.0
)
 
2.6

 
(19.0
)
 
5.3

 
(36.1
)
INVESTMENTS - AVAILABLE FOR SALE SECURITIES (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Trading securities
$ 122.3 
$ 91.6 
Reduction to Present Value of Future Profits Due to Unrealized Gains That Would Result in Premium Deficiency if Unrealized Gains Were Realized
(176.3)
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Net unrealized appreciation (depreciation) on fixed maturity securities, available for sale, on which an other-than-temporary impairment loss has been recognized
1.6 
(4.4)
Net unrealized gains (losses) on all other investments
1,757.5 
1,733.2 
Adjustment to present value of future profits (a)
(207.3)1
(214.8)1
Adjustment to deferred acquisition costs
(285.4)
(289.3)
Unrecognized net loss related to deferred compensation plan
(7.5)
(8.3)
Deferred income tax liability
(450.9)
(434.8)
Accumulated other comprehensive income
808.0 
781.6 
Available-for-sale Debt Securities Amortized Cost Basis
22,021.2 
 
Available-for-sale Securities, Gross Unrealized Gains
1,885.1 
 
Available-for-sale Securities, Gross Unrealized Losses
(128.6)
 
Available-for-sale Securities, Fair Value Disclosure
23,777.7 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
(10.8)
 
Available-for-sale Securities, Debt Maturities [Abstract]
 
 
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost Basis
163.1 
 
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value
165.0 
 
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis
1,443.3 
 
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value
1,542.1 
 
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis
4,534.1 
 
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value
4,901.1 
 
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis
10,509.3 
 
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value
11,587.9 
 
Available For Sale Securities, Debt Maturities, Amortized Cost, Subtotal
16,649.8 
 
Available For Sale Securities, Debt Maturities, Fair Value, Subtotal
18,196.1 
 
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis
5,371.4 
 
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value
5,581.6 
 
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis
22,021.2 
21,779.1 
Available-for-sale Securities, Debt Securities
23,777.7 
23,516.0 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
2,312.3 
2,932.6 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(59.7)
(104.0)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
832.8 
835.9 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(68.9)
(118.9)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
3,145.1 
3,768.5 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(128.6)
(222.9)
Reduction to Deferred Acquisition Costs Due to Unrealized Gains That Would Result in Premium Deficiency if Unrealized Gains Were Realized
(64.4)
 
Increase to Deferred Tax Assets Due to Unrealized Gains That Would Result in Premium Deficiency if Unrealized Gains Were Realized
86.7 
 
Corporate securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
14,574.1 
 
Available-for-sale Securities, Gross Unrealized Gains
1,425.3 
 
Available-for-sale Securities, Gross Unrealized Losses
(77.1)
 
Available-for-sale Securities, Fair Value Disclosure
15,922.3 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
1,204.7 
1,394.7 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(38.9)
(57.0)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
388.5 
466.2 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(38.2)
(79.9)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
1,593.2 
1,860.9 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(77.1)
(136.9)
US Treasury and Government [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
286.7 
 
Available-for-sale Securities, Gross Unrealized Gains
5.5 
 
Available-for-sale Securities, Gross Unrealized Losses
(3.1)
 
Available-for-sale Securities, Fair Value Disclosure
289.1 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
195.3 
9.1 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(3.1)
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
0 
0.2 
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
195.3 
9.3 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(3.1)
0 
US States and Political Subdivisions Debt Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
1,788.2 
 
Available-for-sale Securities, Gross Unrealized Gains
203.9 
 
Available-for-sale Securities, Gross Unrealized Losses
(8.2)
 
Available-for-sale Securities, Fair Value Disclosure
1,983.9 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
4.1 
6.9 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(0.3)
(0.2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
126.4 
155.4 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(7.9)
(13.4)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
130.5 
162.3 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(8.2)
(13.6)
Foreign Government Debt Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
0.8 
 
Available-for-sale Securities, Gross Unrealized Gains
0 
 
Available-for-sale Securities, Gross Unrealized Losses
0 
 
Available-for-sale Securities, Fair Value Disclosure
0.8 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
 
0.5 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
 
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
 
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
 
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
 
0.5 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
 
0 
Asset-backed Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
1,383.0 
 
Available-for-sale Securities, Gross Unrealized Gains
48.9 
 
Available-for-sale Securities, Gross Unrealized Losses
(24.9)
 
Available-for-sale Securities, Fair Value Disclosure
1,407.0 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
287.7 
437.6 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(6.7)
(14.5)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
211.8 
147.5 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(18.2)
(22.2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
499.5 
585.1 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(24.9)
(36.7)
Collateralized Debt Obligations [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
333.1 
 
Available-for-sale Securities, Gross Unrealized Gains
2.2 
 
Available-for-sale Securities, Gross Unrealized Losses
(2.9)
 
Available-for-sale Securities, Fair Value Disclosure
332.4 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
198.5 
268.8 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(2.7)
(6.3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
11.0 
1.7 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(0.2)
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
209.5 
270.5 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(2.9)
(6.3)
Commercial Mortgage Backed Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
1,399.7 
 
Available-for-sale Securities, Gross Unrealized Gains
103.5 
 
Available-for-sale Securities, Gross Unrealized Losses
(3.9)
 
Available-for-sale Securities, Fair Value Disclosure
1,499.3 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
89.6 
168.8 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(2.0)
(5.2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
29.2 
33.0 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(1.9)
(2.7)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
118.8 
201.8 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(3.9)
(7.9)
Mortgage Pass Through Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
28.5 
 
Available-for-sale Securities, Gross Unrealized Gains
1.6 
 
Available-for-sale Securities, Gross Unrealized Losses
0 
 
Available-for-sale Securities, Fair Value Disclosure
30.1 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
0.5 
1.2 
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
2.2 
2.2 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
0 
(0.1)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
2.7 
3.4 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
0 
(0.1)
Collateralized Mortgage Backed Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
2,227.1 
 
Available-for-sale Securities, Gross Unrealized Gains
94.2 
 
Available-for-sale Securities, Gross Unrealized Losses
(8.5)
 
Available-for-sale Securities, Fair Value Disclosure
2,312.8 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
(10.8)
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
331.9 
645.0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(6.0)
(20.8)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
63.7 
29.7 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(2.5)
(0.6)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
395.6 
674.7 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(8.5)
(21.4)
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
3.5 
41.6 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(0.3)
(3.0)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
0 
0.4 
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
3.5 
42.0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
$ (0.3)
$ (3.0)
INVESTMENTS - SCHEDULE OF OTHER THAN TEMPORARY IMPAIRMENT (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
 
 
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Available-for-sale, Debt Securities, Before Tax
$ 10.8 
 
Available-for-sale Securities [Member]
 
 
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
 
 
Credit losses on fixed maturity securities, available for sale, beginning of period
(2.0)
(6.1)
Add: credit losses on other-than-temporary impairments not previously recognized
0 
0 
Less: credit losses on securities sold
0.1 
4.3 
Less: credit losses on securities impaired due to intent to sell
0 1
0 1
Add: credit losses on previously impaired securities
0 
0 
Less: increases in cash flows expected on previously impaired securities
0 
0 
Credit losses on fixed maturity securities, available for sale, end of period
$ (1.9)
$ (1.8)
INVESTMENTS - REALIZED GAINS (LOSSES) (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Gain (Loss) on Investments [Abstract]
 
 
Net realized investment gains (losses)
$ 22.9 
$ 5.1 
Net realized investment gains, excluding impairment losses, primarily fixed maturities
27.4 
 
Net realized investment gains, excluding impairment losses
30.8 
18.4 
Sales of investments
670.3 
1,248.1 
Gain on embedded derivative related to change in fair value of certain fixed maturity investments
3.4 
 
Total other-than-temporary impairment losses
(7.9)
(13.3)
Aggregate amortized cost of fixed maturity securities in default or considered nonperforming
0.4 
 
Carrying value of nonperforming fixed maturity securities
0.5 
 
Value of sold fixed maturity investments
147.6 
 
Gross investment losses from sale of fixed maturity investments, before tax
2.3 
 
Investments sold at a loss
0 
 
Continuous unrealized loss position exceeding amortized cost, percent
20.00% 
 
Other-than-temporary impairments included in accumulated other comprehensive income
$ 10.8 
 
EARNINGS PER SHARE (DETAILS) (USD $)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
 
 
Net income for basic earnings per share
$ 59,100,000 
$ 45,400,000 
Add: interest expense on 7.0% Convertible Senior Debentures due 2016 (the “7.0% Debentures”), net of income taxes
3,700,000 
3,700,000 
Net income for diluted earnings per share
62,800,000 
49,100,000 
Shares:
 
 
Weighted average shares outstanding for basic earnings per share
240,895,000 
251,121,000 
Effect of dilutive securities on weighted average shares:
 
 
7% Debentures
53,367,000 
53,367,000 
Stock option and restricted stock plans
2,582,000 
2,748,000 
Warrants
499,000 
262,000 
Dilutive potential common shares
56,448,000 
56,377,000 
Weighted average shares outstanding for diluted earnings per share
297,343,000 
307,498,000 
Debenture interest rate
7.00% 
 
Conversion rate for convertible senior debentures
182.1494 
 
Par value of each convertible senior debenture
$ 1,000 
 
Conversion price for convertible senior debentures
$ 5.49 
 
BUSINESS SEGMENTS (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Segment Reporting Information [Line Items]
 
 
Fair value changes in embedded derivative liabilities
$ (11.6)
$ 0 
Revenues:
 
 
Fee revenue and other income
3.9 
3.4 
Revenues
1,101.0 
1,044.1 
Benefits and expenses:
 
 
Insurance policy benefits
689.0 
683.2 
Loss on extinguishment of debt
0.2 
1.4 
Other operating costs and expenses
227.0 
170.1 
Total expenses
1,037.4 
978.4 
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
63.6 
65.7 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
Total segment revenues
1,101.0 
1,044.1 
Net realized investment gains (losses)
22.9 
5.1 
Consolidated revenues
1,123.9 
1,049.2 
Total segment expenses
1,037.4 
978.4 
Amortization related to fair value changes in embedded derivative liabilities
4.7 
0 
Amortization related to net realized investment gains (losses)
1.1 
0.4 
Consolidated expenses
1,031.6 
978.8 
Bankers Life [Member]
 
 
Revenues:
 
 
Annuities
7.2 
8.4 
Health
334.1 
339.8 
Life
65.2 
51.8 
Net investment income
234.9 1
209.6 1
Fee revenue and other income
2.9 1
2.3 1
Revenues
644.3 
611.9 
Benefits and expenses:
 
 
Insurance policy benefits
420.9 
404.8 
Amortization
56.9 
68.5 
Interest expense on investment borrowings
1.4 
1.2 
Other operating costs and expenses
94.6 
75.2 
Total expenses
573.8 
549.7 
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
70.5 
62.2 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
Total segment revenues
644.3 
611.9 
Total segment expenses
573.8 
549.7 
Washington National [Member]
 
 
Revenues:
 
 
Health
142.4 
140.2 
Life
4.3 
4.1 
Other
0.7 
1.1 
Net investment income
50.0 1
46.3 1
Fee revenue and other income
0.2 1
0.3 1
Revenues
197.6 
192.0 
Benefits and expenses:
 
 
Insurance policy benefits
115.7 
112.2 
Amortization
12.7 
13.4 
Interest expense on investment borrowings
0.7 
0 
Other operating costs and expenses
43.8 
42.1 
Total expenses
172.9 
167.7 
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
24.7 
24.3 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
Total segment revenues
197.6 
192.0 
Total segment expenses
172.9 
167.7 
Colonial Penn [Member]
 
 
Revenues:
 
 
Health
1.4 
1.6 
Life
52.0 
48.7 
Net investment income
10.0 1
10.3 1
Fee revenue and other income
0.2 1
0.2 1
Revenues
63.6 
60.8 
Benefits and expenses:
 
 
Insurance policy benefits
42.1 
38.7 
Amortization
3.7 
4.0 
Other operating costs and expenses
27.6 
23.8 
Total expenses
73.4 
66.5 
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
(9.8)
(5.7)
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
Total segment revenues
63.6 
60.8 
Total segment expenses
73.4 
66.5 
Other CNO Business [Member]
 
 
Revenues:
 
 
Annuities
2.5 
2.3 
Health
6.7 
7.3 
Life
69.6 
61.3 
Other
0.2 
0.6 
Net investment income
92.7 1
94.7 1
Revenues
171.7 
166.2 
Benefits and expenses:
 
 
Insurance policy benefits
121.9 
127.5 
Amortization
7.5 
8.6 
Interest expense on investment borrowings
5.1 
4.9 
Other operating costs and expenses
39.5 
17.8 
Total expenses
174.0 
158.8 
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
(2.3)
7.4 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
Total segment revenues
171.7 
166.2 
Total segment expenses
174.0 
158.8 
Corporate Operations [Member]
 
 
Revenues:
 
 
Net investment income
23.2 
12.6 
Fee revenue and other income
0.6 
0.6 
Revenues
23.8 
13.2 
Benefits and expenses:
 
 
Interest expense on investment borrowings
0.1 
0 
Interest expense on corporate debt
17.5 
20.6 
Interest expense on borrowings of variable interest entities
4.0 
2.5 
Loss on extinguishment of debt
0.2 
1.4 
Other operating costs and expenses
21.5 
11.2 
Total expenses
43.3 
35.7 
Income before net realized investment losses and fair value changes in embedded derivative liabilities (net of related amortization) and income taxes
(19.5)
(22.5)
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
Total segment revenues
23.8 
13.2 
Total segment expenses
$ 43.3 
$ 35.7 
ACCOUNTING FOR DERIVATIVES (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Equity Swap [Member]
Dec. 31, 2011
Equity Swap [Member]
Mar. 31, 2012
Equity Swap [Member]
Investment Income [Member]
Mar. 31, 2011
Equity Swap [Member]
Investment Income [Member]
Mar. 31, 2012
Embedded Derivative Financial Instruments [Member]
Dec. 31, 2011
Embedded Derivative Financial Instruments [Member]
Mar. 31, 2012
Embedded Derivative Associated With Modified Coinsurance Agreement [Member]
Dec. 31, 2011
Embedded Derivative Associated With Modified Coinsurance Agreement [Member]
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
 
$ 41.4 
$ 26.7 
 
 
 
 
Other Derivatives Not Designated as Hedging Instruments Assets at Fair Value
88.6 
37.9 
 
 
 
 
 
 
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value
 
 
 
 
$ 704.3 
$ 666.3 
$ 3.4 
$ 3.5 
REINSURANCE (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Ceded Premiums Written
$ 57.2 
$ 60.4 
Reinsurance Effect on Claims and Benefits Incurred, Amount Ceded
61.6 
62.5 
Assumed Premiums Written
15.9 
20.4 
Coventry Health Care Marketing and Quota Share Agreements [Member]
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
Assumed Premiums Written
$ 10.8 
$ 14.4 
INCOME TAXES (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Income Tax Expense (Benefit) [Abstract]
 
 
 
Current tax expense
$ 3.3 
$ 3.1 
 
Deferred tax provision
29.9 
21.9 
 
Total income tax expense
33.2 
25.0 
 
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
 
 
 
U.S. statutory corporate rate
35.00% 
35.00% 
 
Other nondeductible benefits
1.20% 
(1.00%)
 
State taxes
1.10% 
0.70% 
 
Provision for tax issues, tax credits and other
(1.30%)
0.80% 
 
Effective tax rate
36.00% 
35.50% 
 
Components of Deferred Tax Assets [Abstract]
 
 
 
Operating loss carryforwards, Life insurance subsidiaries
545.1 
 
583.0 
Operating loss carryforwards, Non-life companies
863.6 
 
862.2 
Deferred tax assets, operating loss carryforwards, state and local
16.6 
 
16.8 
Tax credits
34.8 
 
32.6 
Capital loss carryforwards
331.1 
 
342.3 
Insurance liabilities
764.8 
 
744.4 
Other
46.8 
 
64.8 
Gross deferred tax assets
2,602.8 
 
2,646.1 
Deferred tax liabilities:
 
 
 
Investments
(25.8)
 
(24.2)
Present value of future profits and deferred acquisition costs
(348.4)
 
(363.7)
Unrealized appreciation on investments
(450.9)
 
(434.8)
Gross deferred Tax Liabilities
(825.1)
 
(822.7)
Net deferred tax assets before valuation allowance
1,777.7 
 
1,823.4 
Valuation allowance
(938.4)
 
(938.4)
Net deferred tax assets
839.3 
 
885.0 
Current income taxes accrued
(19.4)
 
(19.6)
Income tax assets, net
$ 819.9 
 
$ 865.4 
Loss Limitation Based On Income Of Life Insurance Company
35.00% 
 
 
Loss Limitation Based On Loss Of Non Life Entities
35.00% 
 
 
Debenture Interest Rate
7.00% 
 
 
Federal Long Term Tax Exempt Rate
3.47% 
 
 
Ownership Change Threshold Restricting Nol Useage
50.00% 
 
 
INCOME TAXES - OPERATING LOSS CARRYFORWARDS (DETAILS) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended
Dec. 31, 2008
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2012
Carryforward Expiration 2013 [Member]
Mar. 31, 2012
Carryforward Expiration 2014 [Member]
Mar. 31, 2012
Carryforward Expiration 2015 [Member]
Mar. 31, 2012
Carryforward Expiration 2018 [Member]
Mar. 31, 2012
Carryforward Expiration 2021 [Member]
Mar. 31, 2012
Carryforward Expiration 2022 [Member]
Mar. 31, 2012
Carryforward Expiration 2023 [Member]
Mar. 31, 2012
Carryforward Expiration 2024 [Member]
Mar. 31, 2012
Carryforward Expiration 2025 [Member]
Mar. 31, 2012
Carryforward Expiration 2027 [Member]
Mar. 31, 2012
Carryforward Expiration 2028 [Member]
Mar. 31, 2012
Carryforward Expiration 2029 [Member]
Mar. 31, 2012
Carryforward Expiration 2031 [Member]
Mar. 31, 2012
Internal Revenue Service (IRS) [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2013 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2014 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2015 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2018 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2021 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2022 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2023 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2024 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2025 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2027 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2028 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2029 [Member]
Mar. 31, 2012
Non Life Insurance Companies [Member]
Carryforward Expiration 2031 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2013 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2014 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2015 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2018 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2021 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2022 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2023 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2024 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2025 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2027 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2028 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2029 [Member]
Mar. 31, 2012
Life Insurance Companies [Member]
Carryforward Expiration 2031 [Member]
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Tax Carryforward, Expiration Dates
 
 
 
2013 
2014 
2015 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating loss carryforwards, expiration dates
 
 
 
 
 
 
2018 
2021 
2022 
2023 
2024 
2025 
2027 
2028 
2029 
2031 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating loss carryforwards
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,000.0 
$ 2,467.3 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 1,975.2 1
$ 3.2 
$ 118.8 
$ 216.8 
$ 0.5 
$ 148.8 
$ 4.0 
$ 1,557.5 
$ 0 
$ 0 
$ 0 
$ 1,323.8 1
$ 29.6 
$ 204.1 
$ 0 2
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
Other Tax Carryforward, Gross Amount
 
945.9 
 
908.3 
28.7 
8.9 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loss carryforwards
 
4,970.7 
 
908.3 
28.7 
8.9 
1,323.8 
29.6 
204.1 
1,975.2 
3.2 
118.8 
216.8 
0.5 
148.8 
4.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating loss carryforward to be reclassified as non life net operating loss carryforwards
 
631 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on Investment in Senior Health
742 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net state operating loss carryforwards
 
$ 16.6 
$ 16.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Debt Instruments [Abstract]
 
 
 
Direct corporate obligations
$ 799.3 
 
$ 857.9 
Ceiling on Investments in Capital Stock at Period Start
1.00% 
 
 
Ceiling on Investments in Capital Stock at Period End
3.00% 
 
 
Cost of shares acquired
(18.9)
 
 
Early Payment of Long Term Note Payable
59.4 
50.0 
 
Long-term Debt, by Maturity [Abstract]
 
 
 
2013
33.8 
 
 
2014
60.0 
 
 
2015
77.5 
 
 
2016
74.5 
 
 
2017
293.0 
 
 
Thereafter
275.0 
 
 
Long-term Debt
813.8 
 
 
Convertible Subordinated Debt [Member]
 
 
 
Debt Instruments [Abstract]
 
 
 
Direct corporate obligations
293.0 
 
293.0 
Unamortized Discount
(12.4)
 
(12.9)
Senior Secured Credit Agreement
 
 
 
Debt Instruments [Abstract]
 
 
 
Direct corporate obligations
245.8 
 
255.2 
Unamortized Discount
(2.1)
 
(2.4)
Mandatory Debt Repayment
9.4 
 
 
Loss on Extinguishment of Debt Resulting from Required Prepayments
0.2 
 
 
Debt to Capitalization Ratio at Period End
16.10% 
 
 
Interest Coverage Ratio at Period End
5.13 
 
 
Aggregate Adjusted Capital to Company Action Level Risk Based Capital Ratio at Period End
360.00% 
 
 
Combined Statutory Capital and Surplus at Period End
1,793.2 
 
 
Long-term Debt, by Maturity [Abstract]
 
 
 
Prepayment of Debt, Minimum Increment Amounts or Multiples Of
1.0 
 
 
Debt to Capitalization Ratio, Threshold Requiring Equal Debt Repayment
17.50% 
 
 
Debt to Capitalization Ratio, Minimum Threshold Requiring Half Debt Repayment
12.50% 
 
 
Debt to Capitalization Ratio, Maximum Threshold for Repayment Requirement
12.50% 
 
 
Debt to Capitalization Ratio, No Manadatory Prepayments, Minimum Required
20.00% 
 
 
Senior Secured Credit Agreement |
Minimum [Member]
 
 
 
Debt Instruments [Abstract]
 
 
 
Interest Coverage Ratio Required
2 
 
 
Interest Coverage Ratio at Period End
5.13 
 
 
Aggregate Adjusted Capital to Company Action Level Risk-Based Capital Ratio, After Stated Date
250.00% 
 
 
Aggregate Adjusted Capital to Company Action Level Risk-Based Capital Ratio, Prior to Stated Date
250.00% 
 
 
Minimum Combined Statutory Capital and Surplus
1,200.0 
 
 
Senior Secured Credit Agreement |
Maximum [Member]
 
 
 
Debt Instruments [Abstract]
 
 
 
Debt to Capitalization Ratio Required
30.00% 
 
 
Interest Coverage Ratio Required
1 
 
 
Interest Coverage Ratio at Period End
1 
 
 
Senior Secured Notes 9 Percent [Member]
 
 
 
Debt Instruments [Abstract]
 
 
 
Direct corporate obligations
275.0 
 
275.0 
Long-term Debt, by Maturity [Abstract]
 
 
 
Minimum Pro Forma Risk-Based Capital Ratio for Restricted Payments
225.00% 
 
 
Restricted Payments Include Items in Excess of Threshold, Amount
75 
 
 
Limit of Restricted Payments Permitted, Percent of Consolidated Net Income
50.00% 
 
 
Remaining Amount of Restricted Payments Eligible to be Paid
121 
 
 
Other Notes Payable [Member]
 
 
 
Debt Instruments [Abstract]
 
 
 
Direct corporate obligations
0 
 
50.0 
Early Payment of Long Term Note Payable
50.0 
 
 
Common Stock Including Additional Paid in Capital [Member]
 
 
 
Debt Instruments [Abstract]
 
 
 
Cost of shares acquired
$ (18.9)
 
 
INVESTMENT BORROWINGS (DETAILS) (USD $)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
$ 813,800,000 
 
 
Interest Rate for Borrowings
7.00% 
 
 
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Federal Home Loan Bank Stock
82,500,000 
 
 
Investment Borrowings
1,650,000,000 
 
1,700,000,000 
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged
2,100,000,000 
 
 
Interest Expense on FHLB Borrowings
7,200,000 
6,000,000 
 
Aggregate Fee to Prepay All Fixed Rate FHLB Borrowings
52,400,000 
 
 
Repurchase Agreements [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Assets Sold under Agreements to Repurchase, Repurchase Liability
 
 
24,800,000 
Other Borrowings [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
1,400,000 
 
1,700,000 
Assets Sold under Agreements to Repurchase, Repurchase Liability
33,400,000 
 
 
Borrowings Due October 2013 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Oct. 31, 2013 
 
 
Interest Rate for Borrowings
0.572% 
 
 
Borrowings Due November 2013 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Nov. 30, 2013 
 
 
Interest Rate for Borrowings
0.583% 
 
 
Borrowings Due February 2014 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
67,000,000 
 
 
Debt Instrument, Maturity Date
Feb. 28, 2014 
 
 
Interest Rate for Borrowings
1.83% 
 
 
Borrowings Due August 2014 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
50,000,000 
 
 
Debt Instrument, Maturity Date
Aug. 31, 2014 
 
 
Interest Rate for Borrowings
0.633% 
 
 
Borrowings Due September 2015 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Sep. 30, 2015 
 
 
Interest Rate for Borrowings
0.853% 
 
 
Borrowings Due October 2015 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
150,000,000 
 
 
Debt Instrument, Maturity Date
Oct. 31, 2015 
 
 
Interest Rate for Borrowings
0.592% 
 
 
Borrowings Due November 2015 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Nov. 30, 2015 
 
 
Interest Rate for Borrowings
4.89% 
 
 
Borrowings Due November 2015 Rate Two [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
146,000,000 
 
 
Debt Instrument, Maturity Date
Nov. 30, 2015 
 
 
Interest Rate for Borrowings
5.30% 
 
 
Borrowings Due December 2015 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Dec. 31, 2015 
 
 
Interest Rate for Borrowings
4.71% 
 
 
Borrowings Due June 2016 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Jun. 30, 2016 
 
 
Interest Rate for Borrowings
0.682% 
 
 
Borrowings Due June 2016 Rate Two [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
75,000,000 
 
 
Debt Instrument, Maturity Date
Jun. 30, 2016 
 
 
Interest Rate for Borrowings
0.63% 
 
 
Borrowings Due August 2016 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
75,000,000 
 
 
Debt Instrument, Maturity Date
Aug. 31, 2016 
 
 
Interest Rate for Borrowings
0.701% 
 
 
Borrowings Due October 2016 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Oct. 31, 2016 
 
 
Interest Rate for Borrowings
0.761% 
 
 
Borrowings Due November 2016 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
50,000,000 
 
 
Debt Instrument, Maturity Date
Nov. 30, 2016 
 
 
Interest Rate for Borrowings
0.75% 
 
 
Borrowings Due November 2016 Rate Two [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
50,000,000 
 
 
Debt Instrument, Maturity Date
Nov. 30, 2016 
 
 
Interest Rate for Borrowings
0.712% 
 
 
Borrowings Due June 2017 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Jun. 30, 2017 
 
 
Interest Rate for Borrowings
0.763% 
 
 
Borrowings Due August 2017 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
50,000,000 
 
 
Debt Instrument, Maturity Date
Aug. 31, 2017 
 
 
Interest Rate for Borrowings
0.703% 
 
 
Borrowings Due October 2017 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
100,000,000 
 
 
Debt Instrument, Maturity Date
Oct. 31, 2017 
 
 
Interest Rate for Borrowings
1.002% 
 
 
Borrowings Due November 2017 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment Borrowings
37,000,000 
 
 
Debt Instrument, Maturity Date
Nov. 30, 2017 
 
 
Interest Rate for Borrowings
3.75% 
 
 
Maturity up to 30 days [Member] |
Other Borrowings [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Assets Sold under Agreements to Repurchase, Repurchase Liability
29,400,000 
 
 
Maturity 30 to 90 Days [Member] |
Other Borrowings [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Assets Sold under Agreements to Repurchase, Repurchase Liability
$ 4,000,000 
 
 
CHANGES IN COMMON STOCK (DETAILS) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended
Feb. 29, 2012
Mar. 31, 2012
Class of Stock [Line Items]
 
 
Stock Repurchase Program, Authorized Amount
 
$ 100.0 
Stock Repurchase Program, Increase in Authorized Amount
100.0 
 
Stock Repurchased and Retired During Period, Shares
 
2,436,930 
Stock Repurchased and Retired During Period, Value
 
18.9 
Common Stock Disclosures [Abstract]
 
 
Balance, December 31, 2011
 
241,304,503 
Balance, March 31, 2012
 
239,219,445 
Shares Paid for Tax Withholding for Share Based Compensation
 
142,000 
Stock Repurchase Program, Remaining Repurchase Authorized Amount
 
111.3 
Stock Options [Member]
 
 
Common Stock Disclosures [Abstract]
 
 
Shares issued under employee benefit compensation plans
 
30,400 
Restricted Stock [Member]
 
 
Common Stock Disclosures [Abstract]
 
 
Shares issued under employee benefit compensation plans
 
321,472 1
Common Stock Including Additional Paid in Capital [Member]
 
 
Class of Stock [Line Items]
 
 
Stock Repurchased and Retired During Period, Value
 
$ 18.9 
SALES INDUCEMENTS (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Deferred Sales Inducements [Abstract]
 
 
 
Deferred Sales Inducements, Additions
$ 0.9 
$ 4.1 
 
Deferred Sales Inducements, Amortization Expense
7.3 
8.1 
 
Deferred Sales Inducements, Net
142.8 
 
149.2 
Persistency Bonus Benefits Included in Insurance Liabilities
$ 43.4 
 
$ 50.0 
RECENTLY ISSUED ACCOUNTING STANDARDS (DETAILS) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Changes from Adoption of New Accounting Standard, Balance Sheet [Abstract]
 
 
 
 
Deferred acquisition costs
$ 790.4 
$ 989.3 
 
 
Income tax assets, net
819.9 
 
865.4 
 
Other assets
402.3 
 
292.2 
 
Total assets
33,046.2 
 
32,921.9 
 
Other liabilities
721.0 
 
556.3 
 
Total liabilities
28,363.2 
 
28,308.1 
 
Accumulated other comprehensive income
808.0 
 
781.6 
 
Retained earnings (accumulated deficit)
(473.0)
 
(532.1)
 
Total shareholders' equity
4,683.0 
3,879.5 
4,613.8 
 
Total liabilities and shareholders' equity
33,046.2 
 
32,921.9 
 
Changes from Adoption of New Accounting Standard, Statement of Operations [Abstract]
 
 
 
 
Amortization
86.6 
94.9 
 
 
Other operating costs and expenses
227.0 
170.1 
 
 
Total benefits and expenses
1,031.6 
978.8 
 
 
Income before income taxes
92.3 
70.4 
 
 
Tax expense on period income
33.2 
25.0 
 
 
Net income
59.1 
45.4 
 
 
Earnings Per Share, Basic
$ 0.25 
$ 0.18 
 
 
Earnings Per Share, Diluted
$ 0.21 
$ 0.16 
 
 
Changes from Adoption of New Accounting Standard, Statements of Cash Flows [Abstract]
 
 
 
 
Policy acquisition costs
46.2 
53.2 
 
 
Other operating costs
193.2 
180.9 
 
 
Net cash provided by operating activities
78.2 
155.3 
 
 
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
 
 
 
 
Balance, beginning of period
797.1 
999.6 
 
 
Deferred Policy Acquisition Costs, Additions
46.2 
53.2 
 
 
Deferred Policy Acquisition Cost, Amortization Expense
(56.8)
(56.8)
 
 
Deferred Policy Acquisition Cost, Related to Fair Value Adjustment of Fixed Maturities
3.9 
(6.7)
 
 
Balance, end of period
790.4 
989.3 
 
 
As originally reported [Member]
 
 
 
 
Changes from Adoption of New Accounting Standard, Balance Sheet [Abstract]
 
 
 
 
Deferred acquisition costs
1,580.4 
 
 
 
Income tax assets, net
525.0 
 
630.5 
 
Other assets
426.2 
 
316.9 
 
Total assets
33,565.2 
 
33,332.7 
 
Other liabilities
713.2 
 
548.3 
 
Total liabilities
28,355.4 
 
28,300.1 
 
Accumulated other comprehensive income
749.5 
 
625.5 
 
Retained earnings (accumulated deficit)
112.3 
 
42.8 
 
Total shareholders' equity
5,209.8 
 
5,032.6 
4,325.3 
Total liabilities and shareholders' equity
33,565.2 
 
33,332.7 
 
Changes from Adoption of New Accounting Standard, Statement of Operations [Abstract]
 
 
 
 
Amortization
131.8 
136.7 
 
 
Other operating costs and expenses
165.5 
115.1 
 
 
Total benefits and expenses
1,015.3 
965.6 
 
 
Income before income taxes
108.6 
83.6 
 
 
Tax expense on period income
39.1 
29.7 
 
 
Net income
69.5 
53.9 
 
 
Earnings Per Share, Basic
$ 0.29 
$ 0.21 
 
 
Earnings Per Share, Diluted
$ 0.25 
$ 0.19 
 
 
Changes from Adoption of New Accounting Standard, Statements of Cash Flows [Abstract]
 
 
 
 
Policy acquisition costs
 
(109.4)
 
 
Other operating costs
 
(124.7)
 
 
Net cash provided by operating activities
 
155.3 
 
 
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
 
 
 
 
Balance, beginning of period
1,418.1 
 
 
 
Balance, end of period
1,580.4 
 
 
 
Effect of adoption of ASU 2010-26 [Member]
 
 
 
 
Changes from Adoption of New Accounting Standard, Balance Sheet [Abstract]
 
 
 
 
Deferred acquisition costs
(790.0)
 
 
 
Income tax assets, net
294.9 
 
234.9 
 
Other assets
(23.9)
 
(24.7)
 
Total assets
(519.0)
 
(410.8)
 
Other liabilities
7.8 
 
8.0 
 
Total liabilities
7.8 
 
8.0 
 
Accumulated other comprehensive income
58.5 
 
156.1 
 
Retained earnings (accumulated deficit)
(585.3)
 
(574.9)
 
Total shareholders' equity
(526.8)
 
(418.8)
 
Total liabilities and shareholders' equity
(519.0)
 
(410.8)
 
Changes from Adoption of New Accounting Standard, Statement of Operations [Abstract]
 
 
 
 
Amortization
(45.2)
(41.8)
 
 
Other operating costs and expenses
61.5 
55.0 
 
 
Total benefits and expenses
16.3 
13.2 
 
 
Income before income taxes
(16.3)
(13.2)
 
 
Tax expense on period income
(5.9)
(4.7)
 
 
Net income
(10.4)
(8.5)
 
 
Earnings Per Share, Basic
$ (0.04)
$ (0.03)
 
 
Earnings Per Share, Diluted
$ (0.04)
$ (0.03)
 
 
Changes from Adoption of New Accounting Standard, Statements of Cash Flows [Abstract]
 
 
 
 
Policy acquisition costs
 
56.2 
 
 
Other operating costs
 
(56.2)
 
 
Net cash provided by operating activities
 
0 
 
 
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
 
 
 
 
Balance, beginning of period
(621.0)
 
 
 
Balance, end of period
(790.0)
 
 
 
As adjusted [Member]
 
 
 
 
Changes from Adoption of New Accounting Standard, Balance Sheet [Abstract]
 
 
 
 
Deferred acquisition costs
790.4 
 
 
 
Income tax assets, net
819.9 
 
865.4 
 
Other assets
402.3 
 
292.2 
 
Total assets
33,046.2 
 
32,921.9 
 
Other liabilities
721.0 
 
556.3 
 
Total liabilities
28,363.2 
 
28,308.1 
 
Accumulated other comprehensive income
808.0 
 
781.6 
 
Retained earnings (accumulated deficit)
(473.0)
 
(532.1)
 
Total shareholders' equity
4,683.0 
 
4,613.8 
3,811.6 
Total liabilities and shareholders' equity
33,046.2 
 
32,921.9 
 
Changes from Adoption of New Accounting Standard, Statement of Operations [Abstract]
 
 
 
 
Amortization
86.6 
94.9 
 
 
Other operating costs and expenses
227.0 
170.1 
 
 
Total benefits and expenses
1,031.6 
978.8 
 
 
Income before income taxes
92.3 
70.4 
 
 
Tax expense on period income
33.2 
25.0 
 
 
Net income
59.1 
45.4 
 
 
Earnings Per Share, Basic
$ 0.25 
$ 0.18 
 
 
Earnings Per Share, Diluted
$ 0.21 
$ 0.16 
 
 
Changes from Adoption of New Accounting Standard, Statements of Cash Flows [Abstract]
 
 
 
 
Policy acquisition costs
 
(53.2)
 
 
Other operating costs
 
(180.9)
 
 
Net cash provided by operating activities
 
155.3 
 
 
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
 
 
 
 
Balance, beginning of period
797.1 
 
 
 
Balance, end of period
$ 790.4 
 
 
 
CONSOLIDATED STATEMENT CASH FLOWS (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Cash flows from operating activities:
 
 
Net income
$ 59.1 
$ 45.4 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Amortization and depreciation
91.1 
101.5 
Income taxes
29.5 
24.3 
Insurance liabilities
39.9 
109.1 
Accrual and amortization of investment income
(104.1)
(48.3)
Deferral of policy acquisition costs
(46.2)
(53.2)
Net realized investment (gains) losses
(22.9)
(5.1)
Loss on extinguishment of debt
0.2 
1.4 
Other
31.6 
(19.8)
Net cash provided by operating activities
78.2 
155.3 
Other Noncash Investing and Financing Items [Abstract]
 
 
Stock option and restricted stock plans
$ 2.5 
$ 1.9 
INVESTMENTS IN VARIABLE INTEREST ENTITIES (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Dec. 31, 2011
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
$ 564.7 
 
$ 496.3 
Cash and cash equivalents held by variable interest entities
65.8 
 
74.4 
Borrowings related to variable interest entities
519.9 
 
519.9 
Variable interest entity amortized cost securities held
566.1 
 
 
Variable interest entity, gross unrealized gains fixed maturity securities
2.6 
 
 
Variable interest entity gross unrealized losses fixed maturity securities
4.0 
 
 
Variable interest entities net realized gain (loss) on investments
(0.5)
(1.4)
 
Variable interest entities net gains from sale of fixed maturity investments
(0.1)
(1.8)
 
Total other-than-temporary impairment losses on investments held by variable interest entities
0.4 
3.2 
 
Variable Interest Entities, Investments Sold
6.1 
 
 
Variable Interest Entity, Available For Sale Securities, Gross Investment Losses From Sale, Before Tax
0.1 
 
 
Investments held in limited partnerships
27.1 
 
 
Unfunded committments to limited partnerships
20.1 
 
 
VIEs [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
564.7 
 
496.3 
Notes receivable of VIEs held by insurance subsidiaries
0 
 
0 
Cash and cash equivalents held by variable interest entities
65.8 
 
74.4 
Accrued investment income
2.2 
 
1.7 
Income tax assets, net
4.9 
 
6.8 
Other assets
16.2 
 
7.7 
Total assets
653.8 
 
586.9 
Other liabilities
63.6 
 
30.3 
Borrowings related to variable interest entities
519.9 
 
519.9 
Notes payable of VIEs held by insurance subsidiaries
79.5 
 
49.3 
Total liabilities
663.0 
 
599.5 
Eliminations [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
0 
 
0 
Notes receivable of VIEs held by insurance subsidiaries
(75.4)
 
(45.3)
Cash and cash equivalents held by variable interest entities
0 
 
0 
Accrued investment income
0 
 
0 
Income tax assets, net
(1.5)
 
(1.4)
Other assets
0 
 
0 
Total assets
(76.9)
 
(46.7)
Other liabilities
(0.4)
 
(0.1)
Borrowings related to variable interest entities
0 
 
0 
Notes payable of VIEs held by insurance subsidiaries
(79.5)
 
(49.3)
Total liabilities
(79.9)
 
(49.4)
Net Effect On Consolidated Balance Sheet [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
564.7 
 
496.3 
Notes receivable of VIEs held by insurance subsidiaries
(75.4)
 
(45.3)
Cash and cash equivalents held by variable interest entities
65.8 
 
74.4 
Accrued investment income
2.2 
 
1.7 
Income tax assets, net
3.4 
 
5.4 
Other assets
16.2 
 
7.7 
Total assets
576.9 
 
540.2 
Other liabilities
63.2 
 
30.2 
Borrowings related to variable interest entities
519.9 
 
519.9 
Notes payable of VIEs held by insurance subsidiaries
0 
 
0 
Total liabilities
583.1 
 
550.1 
Less Than Twelve Months [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Fair value investments held by variable interest entity that had been in an unrealized loss position
250.2 
 
 
Gross unrealized losses on investments held by variable interest entity
3.5 
 
 
Greater Than Twelve Months [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Fair value investments held by variable interest entity that had been in an unrealized loss position
35.9 
 
 
Gross unrealized losses on investments held by variable interest entity
$ 0.5 
 
 
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SCHEDULE OF VIEs (DETAILS) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Investment Holdings [Line Items]
 
Total amortized cost
$ 566.1 
Total fair value
564.7 
Amortized Cost [Member]
 
Investment Holdings [Line Items]
 
Due in one year or less
0.5 
Due after one year through five years
308.5 
Due after five years through ten years
257.1 
Total amortized cost
566.1 
Estimated Fair Value [Member]
 
Investment Holdings [Line Items]
 
Due in one year or less
0.5 
Due after one year through five years
306.5 
Due after five years through ten years
257.7 
Total fair value
$ 564.7 
FAIR VALUE MEASUREMENTS - NARRATIVE (DETAILS) (USD $)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Fair Value Disclosures [Abstract]
 
 
Available for sale fixed maturities classified as level 3, investment grade, percent
83.00% 
 
Fair value of level 3 fixed maturity securities valued using broker quotes, percentage
20.00% 
 
Available for sale fixed maturities classified as level 3, corporate securities, percent
41.00% 
 
Fair value, level 1 to level 2 transfers, amount
$ 0 
$ 0 
Fair value, level 2 to level 1 transfers, amount
$ 0 
$ 0 
FAIR VALUE MEASUREMENTS (DETAILS) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2011
Dec. 31, 2010
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
$ 23,777.7 
$ 23,516.0 
 
 
Equity securities
176.5 
175.1 
 
 
Mortgage loans
1,546.7 
1,602.8 
 
 
Policy loans
277.8 
279.7 
 
 
Trading securities
122.3 
91.6 
 
 
Investments held by variable interest entities
564.7 
496.3 
 
 
Other invested assets
270.9 
202.8 
 
 
Cash and cash equivalents - unrestricted
173.5 
436.0 
424.6 
571.9 
Cash and cash equivalents held by variable interest entities
65.8 
74.4 
 
 
Assets held in separate accounts
16.0 
15.0 
 
 
Total assets carried at fair value by category
33,046.2 
32,921.9 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
13,103.4 
13,165.5 
 
 
Total liabilities carried at fair value by category
28,363.2 
28,308.1 
 
 
Fair Value, Assets and Liabilities Meaured on Recurring Basis with Carrying Amount [Abstract]
 
 
 
 
Mortgage loans
1,546.7 
1,602.8 
 
 
Policy loans
277.8 
279.7 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives (a)
12,395.7 1
13,165.5 1
 
 
Investment borrowings
1,684.9 
1,676.5 
 
 
Borrowings related to variable interest entities
519.9 
519.9 
 
 
Notes payable - direct corporate obligations
799.3 
857.9 
 
 
Fair Value, Measurements, Disclosed on Recurring Basis [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Mortgage loans
0 
 
 
 
Policy loans
0 
 
 
 
Fair Value, Assets and Liabilities Meaured on Recurring Basis with Carrying Amount [Abstract]
 
 
 
 
Mortgage loans
0 
 
 
 
Policy loans
0 
 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives (a)
0 1
 
 
 
Investment borrowings
0 
 
 
 
Borrowings related to variable interest entities
0 
 
 
 
Notes payable - direct corporate obligations
0 
 
 
 
Fair Value, Measurements, Disclosed on Recurring Basis [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Mortgage loans
0 
 
 
 
Policy loans
277.8 
 
 
 
Fair Value, Assets and Liabilities Meaured on Recurring Basis with Carrying Amount [Abstract]
 
 
 
 
Mortgage loans
0 
 
 
 
Policy loans
277.8 
 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives (a)
0 1
 
 
 
Investment borrowings
1,737.2 
 
 
 
Borrowings related to variable interest entities
495.1 
 
 
 
Notes payable - direct corporate obligations
1,012.0 
 
 
 
Fair Value, Measurements, Disclosed on Recurring Basis [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Mortgage loans
1,662.4 
 
 
 
Policy loans
0 
 
 
 
Fair Value, Assets and Liabilities Meaured on Recurring Basis with Carrying Amount [Abstract]
 
 
 
 
Mortgage loans
1,662.4 
 
 
 
Policy loans
0 
 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives (a)
12,395.7 1
 
 
 
Investment borrowings
0 
 
 
 
Borrowings related to variable interest entities
0 
 
 
 
Notes payable - direct corporate obligations
0 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
23,777.7 
23,516.0 
 
 
Equity securities
176.5 
175.1 
 
 
Trading securities
122.3 
91.6 
 
 
Investments held by variable interest entities
 
496.3 
 
 
Other invested assets
217.7 
159.9 
 
 
Cash and cash equivalents - unrestricted
173.5 
 
 
 
Cash and cash equivalents held by variable interest entities
65.8 
 
 
 
Assets held in separate accounts
16.0 
15.0 
 
 
Total assets carried at fair value by category
25,114.2 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
707.7 
669.8 
 
 
Total liabilities carried at fair value by category
707.7 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
20.0 
0 
 
 
Equity securities
20.1 
17.9 
 
 
Trading securities
0.4 
0.7 
 
 
Investments held by variable interest entities
 
0 
 
 
Other invested assets
0.2 
0 
 
 
Cash and cash equivalents - unrestricted
105.1 
 
 
 
Cash and cash equivalents held by variable interest entities
65.8 
 
 
 
Assets held in separate accounts
0 
0 
 
 
Total assets carried at fair value by category
211.6 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
0 
0 
 
 
Total liabilities carried at fair value by category
0 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
23,106.5 
22,682.9 
 
 
Equity securities
88.0 
87.3 
 
 
Trading securities
118.3 
90.5 
 
 
Investments held by variable interest entities
 
496.3 
 
 
Other invested assets
217.5 
159.9 2
 
 
Cash and cash equivalents - unrestricted
68.4 
 
 
 
Cash and cash equivalents held by variable interest entities
0 
 
 
 
Assets held in separate accounts
16.0 
15.0 
 
 
Total assets carried at fair value by category
24,179.4 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
0 
0 
 
 
Total liabilities carried at fair value by category
0 
 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
651.2 
833.1 
 
 
Equity securities
68.4 
69.9 
 
 
Trading securities
3.6 
0.4 
 
 
Investments held by variable interest entities
 
0 
 
 
Other invested assets
0 
0 
 
 
Cash and cash equivalents - unrestricted
0 
 
 
 
Cash and cash equivalents held by variable interest entities
0 
 
 
 
Assets held in separate accounts
0 
0 
 
 
Total assets carried at fair value by category
723.2 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
707.7 
669.8 3
 
 
Total liabilities carried at fair value by category
707.7 
 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
15,922.3 
15,872.5 
 
 
Equity securities
111.3 
 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Equity securities
20.1 
 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
15,654.3 
15,594.4 
 
 
Equity securities
88.0 
 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
268.0 
278.1 
 
 
Equity securities
3.2 
 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
289.1 
305.4 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
20.0 
0 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
267.5 
303.8 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
1.6 
1.6 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
1,983.9 
1,954.4 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
1,974.3 
1,952.3 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
9.6 
2.1 
 
 
Foreign Government Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0.8 
1.4 
 
 
Foreign Government Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Foreign Government Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0.8 
1.4 
 
 
Foreign Government Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
1,407.0 
1,414.0 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
1,384.3 
1,334.3 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
22.7 
79.7 
 
 
Collateralized debt obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
332.4 
327.3 
 
 
Collateralized debt obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Collateralized debt obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Collateralized debt obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
332.4 
327.3 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
1,499.3 
1,433.0 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
1,499.3 
1,415.7 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
17.3 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
30.1 
32.0 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
27.9 
29.8 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
2.2 
2.2 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
2,312.8 
2,176.0 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
0 
0 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
2,298.1 
2,051.2 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Fixed maturities, available for sale
14.7 
124.8 
 
 
Venture Capital Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Equity securities
65.2 
 
 
 
Venture Capital Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Equity securities
0 
 
 
 
Venture Capital Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Equity securities
0 
 
 
 
Venture Capital Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Equity securities
65.2 
 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
51.6 
67.6 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0.1 
0 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
51.5 
67.6 
 
 
Corporate securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
4.9 
4.9 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
4.9 
4.9 
 
 
US Treasury and Government [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
15.7 
15.6 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
15.7 
15.6 
 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
9.7 
0.1 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
9.7 
0.1 
 
 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
3.6 
 
 
 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
 
 
 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
 
 
 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
3.6 
 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
20.7 
0.4 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
20.7 
0 
 
 
Commercial Mortgage Backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0.4 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0.2 
0.2 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0.2 
0.2 
 
 
Mortgage Pass Through Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
14.3 
0.7 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
14.3 
0.7 
 
 
Collateralized Mortgage Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Equity securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
1.6 
2.1 
 
 
Equity securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0.3 
0.7 
 
 
Equity securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
1.3 
1.4 
 
 
Equity securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Trading securities
0 
0 
 
 
Embedded Derivatives Associated with Fixed Index Annuity Products [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
704.3 
 
 
 
Embedded Derivatives Associated with Fixed Index Annuity Products [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
0 
 
 
 
Embedded Derivatives Associated with Fixed Index Annuity Products [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
0 
 
 
 
Embedded Derivatives Associated with Fixed Index Annuity Products [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
704.3 
 
 
 
Embedded Derivative Associated With Modified Coinsurance Agreement [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
3.4 
 
 
 
Embedded Derivative Associated With Modified Coinsurance Agreement [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
0 
 
 
 
Embedded Derivative Associated With Modified Coinsurance Agreement [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
0 
 
 
 
Embedded Derivative Associated With Modified Coinsurance Agreement [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
3.4 
 
 
 
Company-Owned Life Insurance [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
111.2 
 
 
 
Company-Owned Life Insurance [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
0 
 
 
 
Company-Owned Life Insurance [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
111.2 
 
 
 
Company-Owned Life Insurance [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
0 
 
 
 
Hedge Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
18.0 
 
 
 
Hedge Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
0 
 
 
 
Hedge Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
18.0 
 
 
 
Hedge Funds [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
0 
 
 
 
Derivatives [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
88.5 
 
 
 
Derivatives [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
0.2 
 
 
 
Derivatives [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
88.3 
 
 
 
Derivatives [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
0 
 
 
 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
105.1 
 
 
 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
105.1 
 
 
 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
0 
 
 
 
Cash [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
0 
 
 
 
Cash Equivalents and Short-Term Investments [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
68.4 
 
 
 
Cash Equivalents and Short-Term Investments [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
0 
 
 
 
Cash Equivalents and Short-Term Investments [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
68.4 
 
 
 
Cash Equivalents and Short-Term Investments [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Cash and cash equivalents - unrestricted
0 
 
 
 
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Mortgage loans
1,662.4 
1,735.4 
 
 
Policy loans
277.8 
279.7 
 
 
Fair Value, Assets and Liabilities Meaured on Recurring Basis with Carrying Amount [Abstract]
 
 
 
 
Mortgage loans
1,662.4 
1,735.4 
 
 
Policy loans
277.8 
279.7 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives (a)
12,395.7 1
13,165.5 1
 
 
Investment borrowings
1,737.2 
1,735.7 
 
 
Borrowings related to variable interest entities
495.1 
485.1 
 
 
Notes payable - direct corporate obligations
1,012.0 
978.3 
 
 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Other invested assets
131.9 4
 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Total liabilities for insurance products
707.7 5
 
 
 
Corporate Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Investments held by variable interest entities
564.7 
 
 
 
Corporate Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Investments held by variable interest entities
0 
 
 
 
Corporate Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Investments held by variable interest entities
564.7 
 
 
 
Corporate Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Investments held by variable interest entities
$ 0 
 
 
 
FAIR VALUE MEASUREMENTS - UNOBSERVABLE INPUT RECONCILIATION (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
$ 833.1 
$ 2,551.7 
Purchases, sales, issuances and settlements, net
9.5 1
(130.4)2
Total realized and unrealized gains (losses) included in net income
(0.4)
(9.7)
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
5.3 
14.3 
Transfers into level 3
74.2 
129.5 
Transfers out of level 3
(270.5)3
(56.2)
Fair value, measurement with unobservable inputs reconciliation, ending balance
651.2 
2,499.2 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
6.4 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
57.7 
65.1 
Sales
(48.2)
(195.5)
Issuances
0 
0 
Settlements
0 
0 
Purchases, sales, issuances and settlements, net
9.5 1
(130.4)2
Equity Securities Classification [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
69.9 
 
Purchases, sales, issuances and settlements, net
0 1
37.5 
Total realized and unrealized gains (losses) included in net income
(3.8)
 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
2.3 
 
Transfers into level 3
0 
 
Transfers out of level 3
0 3
 
Fair value, measurement with unobservable inputs reconciliation, ending balance
68.4 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
(3.8)
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
 
37.5 
Sales
 
0 
Issuances
 
0 
Settlements
 
0 
Purchases, sales, issuances and settlements, net
0 1
37.5 
Collateralized Debt Obligations [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Purchases, sales, issuances and settlements, net
3.2 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
3.2 
 
Sales
0 
 
Issuances
0 
 
Settlements
0 
 
Purchases, sales, issuances and settlements, net
3.2 
 
Trading securities [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
0.4 
0.4 
Purchases, sales, issuances and settlements, net
3.2 1
0 2
Total realized and unrealized gains (losses) included in net income
0.4 
0.1 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0 
0 
Transfers into level 3
0 
0 
Transfers out of level 3
(0.4)3
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
3.6 
0.5 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0.4 
0.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
3.2 1
0 2
Corporate securities [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
278.1 
1,907.8 
Purchases, sales, issuances and settlements, net
15.0 1
(63.2)2
Total realized and unrealized gains (losses) included in net income
0 
(11.8)
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0.5 
9.1 
Transfers into level 3
51.2 
11.2 
Transfers out of level 3
(76.8)3
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
268.0 
1,853.1 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
6.4 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
15.0 
45.0 
Sales
0 
(108.2)
Issuances
0 
0 
Settlements
0 
0 
Purchases, sales, issuances and settlements, net
15.0 1
(63.2)2
Corporate securities [Member] |
Equity Securities Classification [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
6.4 
 
Purchases, sales, issuances and settlements, net
0 1
 
Total realized and unrealized gains (losses) included in net income
(3.8)
 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0.6 
 
Transfers into level 3
0 
 
Transfers out of level 3
0 3
 
Fair value, measurement with unobservable inputs reconciliation, ending balance
3.2 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
(3.8)
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
0 1
 
US Treasury and Government [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
1.6 
2.0 
Purchases, sales, issuances and settlements, net
0 1
0 2
Total realized and unrealized gains (losses) included in net income
0 
0 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0 
(0.3)
Transfers into level 3
0 
0 
Transfers out of level 3
0 3
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
1.6 
1.7 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
0 1
0 2
US States and Political Subdivisions Debt Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
2.1 
2.5 
Purchases, sales, issuances and settlements, net
0 1
0 2
Total realized and unrealized gains (losses) included in net income
0 
0 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0.1 
0 
Transfers into level 3
7.4 
0 
Transfers out of level 3
0 3
(2.5)
Fair value, measurement with unobservable inputs reconciliation, ending balance
9.6 
0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
0 1
0 2
Asset-backed Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
79.7 
182.3 
Purchases, sales, issuances and settlements, net
(8.2)1
(1.8)2
Total realized and unrealized gains (losses) included in net income
(0.4)
0 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
(1.3)
(0.5)
Transfers into level 3
4.7 
27.4 
Transfers out of level 3
(51.8)3
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
22.7 
207.4 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
0 
0 
Sales
(8.2)
(1.8)
Issuances
0 
0 
Settlements
0 
0 
Purchases, sales, issuances and settlements, net
(8.2)1
(1.8)2
Collateralized debt obligations [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
327.3 
256.5 
Purchases, sales, issuances and settlements, net
(0.8)1
(76.7)2
Total realized and unrealized gains (losses) included in net income
0 
2.1 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
5.9 
4.3 
Transfers into level 3
0 
0 
Transfers out of level 3
0 3
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
332.4 
186.2 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
28.3 
1.7 
Sales
(29.1)
(78.4)
Issuances
0 
0 
Settlements
0 
0 
Purchases, sales, issuances and settlements, net
(0.8)1
(76.7)2
Mortgage Pass Through Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
2.2 
3.5 
Purchases, sales, issuances and settlements, net
0 1
(0.2)2
Total realized and unrealized gains (losses) included in net income
0 
0 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0 
0 
Transfers into level 3
0 
0 
Transfers out of level 3
0 3
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
2.2 
3.3 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
 
0 
Sales
 
(0.2)
Issuances
 
0 
Settlements
 
0 
Purchases, sales, issuances and settlements, net
0 1
(0.2)2
Collateralized Mortgage Obligations [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
124.8 
197.1 
Purchases, sales, issuances and settlements, net
3.5 1
11.5 2
Total realized and unrealized gains (losses) included in net income
0 
0 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0.1 
1.7 
Transfers into level 3
10.9 
90.9 
Transfers out of level 3
(124.6)3
(53.7)
Fair value, measurement with unobservable inputs reconciliation, ending balance
14.7 
247.5 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
14.4 
18.4 
Sales
(10.9)
(6.9)
Issuances
0 
0 
Settlements
0 
0 
Purchases, sales, issuances and settlements, net
3.5 1
11.5 2
Equity securities [Member] |
Equity Securities Classification [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
 
7.6 
Purchases, sales, issuances and settlements, net
 
37.5 2
Total realized and unrealized gains (losses) included in net income
 
(0.8)
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
 
0.7 
Transfers into level 3
 
0 
Transfers out of level 3
 
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
 
45.0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
 
37.5 2
Venture Capital Funds [Member] |
Equity Securities Classification [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
63.5 
 
Purchases, sales, issuances and settlements, net
0 1
 
Total realized and unrealized gains (losses) included in net income
0 
 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
1.7 
 
Transfers into level 3
0 
 
Transfers out of level 3
0 3
 
Fair value, measurement with unobservable inputs reconciliation, ending balance
65.2 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
0 1
 
Commercial Mortgage Backed Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
17.3 
 
Purchases, sales, issuances and settlements, net
0 1
 
Total realized and unrealized gains (losses) included in net income
0 
 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0 
 
Transfers into level 3
0 
 
Transfers out of level 3
(17.3)3
 
Fair value, measurement with unobservable inputs reconciliation, ending balance
0 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
0 1
 
Interest Sensitive Products [Member]
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliations, liability value, beginning balance
(669.8)
(553.2)
Purchases, sales, issuances and settlements, net
(50.5)1
(36.1)2
Total realized and unrealized gains (losses) included in net income
12.6 
1.8 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0 
0 
Transfers into level 3
0 
0 
Transfers out of level 3
0 3
0 
Fair value, measurement with unobservable inputs reconciliations, liability value, ending balance
(707.7)
(587.5)
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
12.6 
1.8 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
(27.3)
(25.0)
Sales
5.0 
2.6 
Issuances
(38.9)
(19.0)
Settlements
10.7 
5.3 
Purchases, sales, issuances and settlements, net
(50.5)1
(36.1)2
Collateralized Debt Obligations [Member] |
Trading securities [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
0 
 
Purchases, sales, issuances and settlements, net
3.2 1
 
Total realized and unrealized gains (losses) included in net income
0.4 
 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0 
 
Transfers into level 3
0 
 
Transfers out of level 3
0 3
 
Fair value, measurement with unobservable inputs reconciliation, ending balance
3.6 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0.4 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
3.2 1
 
Collateralized Mortgage Obligations [Member] |
Trading securities [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
0.4 
0.4 
Purchases, sales, issuances and settlements, net
0 1
0 2
Total realized and unrealized gains (losses) included in net income
0 
0.1 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
0 
0 
Transfers into level 3
0 
0 
Transfers out of level 3
(0.4)3
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
0 
0.5 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
0 1
0 2
Corporate Securities [Member] |
Corporate Securities Held By Variable Interest Entities [Member] |
Investments held by variable interest entities [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value, measurement with unobservable inputs reconciliation, beginning balance
 
6.7 
Purchases, sales, issuances and settlements, net
 
(7.9)2
Total realized and unrealized gains (losses) included in net income
 
1.5 
Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)
 
(0.3)
Transfers into level 3
 
0 
Transfers out of level 3
 
0 
Fair value, measurement with unobservable inputs reconciliation, ending balance
 
0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases, sales, issuances and settlements, net
 
(7.9)2
Corporate Securities [Member] |
Investments held by variable interest entities [Member]
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Purchases, sales, issuances and settlements, net
 
(7.9)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issuances, Settlements [Abstract]
 
 
Purchases
 
0 
Sales
 
(7.9)
Issuances
 
0 
Settlements
 
0 
Purchases, sales, issuances and settlements, net
 
$ (7.9)
[1] Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts. The following summarizes such activity for the three months ended March 31, 2012 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, netAssets: Fixed maturities, available for sale: Corporate securities$15.0 $— $— $— $15.0Asset-backed securities— (8.2) — — (8.2)Collateralized debt obligations28.3 (29.1) — — (.8)Collateralized mortgage obligations14.4 (10.9) — — 3.5Total fixed maturities, available for sale57.7 (48.2) — — 9.5Trading securities - collateralized debt obligations3.2 — — — 3.2Liabilities: Liabilities for insurance products: Interest-sensitive products(27.3) 5.0 (38.9) 10.7 (50.5)
[2] Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases and sales of fixed maturity and equity securities and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts. The following summarizes such activity for the three months ended March 31, 2011 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, netAssets: Fixed maturities, available for sale: Corporate securities$45.0 $(108.2) $— $— $(63.2)Asset-backed securities— (1.8) — — (1.8)Collateralized debt obligations1.7 (78.4) — — (76.7)Mortgage pass-through securities— (.2) — — (.2)Collateralized mortgage obligations18.4 (6.9) — — 11.5Total fixed maturities, available for sale65.1 (195.5) — — (130.4)Equity securities37.5 — — — 37.5Investments held by variable interest entities: Corporate securities— (7.9) — — (7.9)Liabilities: Liabilities for insurance products: Interest-sensitive products(25.0) 2.6 (19.0) 5.3 (36.1)
FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Mar. 31, 2012
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Mar. 31, 2012
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Mar. 31, 2012
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Mar. 31, 2012
Equity securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Equity securities [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Mar. 31, 2012
Venture capital investments [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Venture capital investments [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Mar. 31, 2012
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Minimum [Member]
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Minimum [Member]
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Minimum [Member]
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Minimum [Member]
Equity securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Minimum [Member]
Venture capital investments [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Maximum [Member]
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Maximum [Member]
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Maximum [Member]
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Maximum [Member]
Equity securities [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Maximum [Member]
Venture capital investments [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Interest Sensitive Products [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Interest Sensitive Products [Member]
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2012
Interest Sensitive Products [Member]
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$ 26,736.6 
$ 26,364.3 
 
$ 723.2 
 
$ 175.7 1
 
$ 11.2 2
 
$ 336.0 3
 
$ 3.2 4
 
$ 65.2 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Investments
270.9 
202.8 
 
131.9 6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities For Interest Sensitive Products
$ 13,103.4 
$ 13,165.5 
 
$ 707.7 7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Discount Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.90% 
2.16% 
1.70% 
 
 
 
6.50% 
2.32% 
12.10% 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Discount Rate
 
 
 
 
3.49% 
 
2.31% 
 
3.32% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Recoveries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
58.00% 
 
 
 
 
 
66.00% 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Constant Prepayment Rate
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Annual Default Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.95% 
 
 
 
 
 
5.95% 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Annual Default Rate
 
 
 
 
 
 
 
 
3.01% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Portfolio CCC Percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.80% 
 
 
 
 
 
21.41% 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Portfolio CCC Percent
 
 
 
 
 
 
 
 
11.67% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Earnings Multiple of Capital and Surplus
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.18 
 
 
 
 
 
0.37 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Earnings Multiple of Capital and Surplus
 
 
 
 
 
 
 
 
 
 
0.308 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, EBITDA Multiple
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.9 
 
 
 
 
 
45.1 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average EBITDA Multiple
 
 
 
 
 
 
 
 
 
 
 
 
12.69 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Revenue Multiple
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.6 
 
 
 
 
 
6.9 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Revenue Multiple
 
 
 
 
 
 
 
 
 
 
 
 
4.38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Book Equity Multiple
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.0 
 
 
 
 
 
5.8 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Book Equity Multiple
 
 
 
 
 
 
 
 
 
 
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Projected Portfolio Yields
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.35% 
5.61% 
Liabilities, Fair Value Disclosure, Significant Assumptions, Weighted Average Projected Portfolio Yields
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.50% 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Discount Rates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
4.30% 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Weighted Average Discount Rates
 
 
1.80% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Surrender Rates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.00% 
 
 
 
 
 
43.00% 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Weighted Average Surrender Rates
 
 
19.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[3] Collateralized debt obligations - The significant unobservable inputs used in the fair value measurement of our collateralized debt obligations relate to collateral performance, including default rate, recoveries and constant prepayment rate, as well as discount margins of the underlying collateral. Significant increases (decreases) in default rate in isolation would result in a significantly lower (higher) fair value measurement. Generally, a significant increase (decrease) in the constant prepayment rate and recoveries in isolation would result in a significantly higher (lower) fair value measurement. Generally a significant increase (decrease) in discount margin in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the annual default rate is accompanied by a directionally similar change in the assumption used for discount margins and portfolio CCC % and a directionally opposite change in the assumption used for constant prepayment rate and recoveries. A tranche's payment priority and investment cost basis could alter generalized fair value outcomes.