CNO FINANCIAL GROUP, INC., 10-Q filed on 11/1/2013
Quarterly Report
DOCUMENT AND ENTITY INFORMATION
9 Months Ended
Sep. 30, 2013
Oct. 18, 2013
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
CNO Financial Group, Inc. 
 
Entity Central Index Key
0001224608 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2013 
 
Current Fiscal Year End Date
--12-31 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
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
 
222,021,714 
CONSOLIDATED BALANCE SHEET (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Investments:
 
 
Fixed maturities, available for sale, at fair value (amortized cost: September 30, 2013 - $22,097.2; December 31, 2012 - $21,626.8)
$ 23,497.7 
$ 24,614.1 
Equity securities at fair value (cost: September 30, 2013 - $252.7; December 31, 2012 - $167.1)
262.0 
171.4 
Mortgage loans
1,635.1 
1,573.2 
Policy loans
267.5 
272.0 
Trading securities
246.6 
266.2 
Investments held by variable interest entities
1,080.7 
814.3 
Other invested assets
330.6 
248.1 
Total investments
27,320.2 
27,959.3 
Cash and cash equivalents - unrestricted
376.7 
582.5 
Cash and cash equivalents held by variable interest entities
85.1 
54.2 
Accrued investment income
306.2 
286.2 
Present value of future profits
578.9 
626.0 
Deferred acquisition costs
846.0 
629.7 
Reinsurance receivables
2,822.4 
2,927.7 
Income tax assets, net
1,135.7 
716.9 
Assets held in separate accounts
13.3 
14.9 
Other assets
432.6 
334.0 
Total assets
33,917.1 
34,131.4 
Liabilities for insurance products:
 
 
Interest-sensitive products
12,781.1 
12,893.2 
Traditional products
10,873.7 
11,196.3 
Claims payable and other policyholder funds
995.8 
985.1 
Liabilities related to separate accounts
13.3 
14.9 
Other liabilities
712.7 
570.6 
Investment borrowings
1,850.2 
1,650.8 
Borrowings related to variable interest entities
1,035.1 
767.0 
Notes payable – direct corporate obligations
868.6 
1,004.2 
Total liabilities
29,130.5 
29,082.1 
Commitments and Contingencies
   
   
Shareholders' equity:
 
 
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: September 30, 2013 - 222,007,214; December 31, 2012 – 221,502,371)
2.2 
2.2 
Additional paid-in capital
4,121.3 
4,174.7 
Accumulated other comprehensive income
634.0 
1,197.4 
Retained earnings (accumulated deficit)
29.1 
(325.0)
Total shareholders' equity
4,786.6 
5,049.3 
Total liabilities and shareholders' equity
$ 33,917.1 
$ 34,131.4 
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEET (USD $)
In Millions, except Share data, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Investments:
 
 
Fixed maturities, available for sale, amortized cost
$ 22,097.2 
$ 21,626.8 
Equity securities cost
$ 252.7 
$ 167.1 
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
222,007,214 
221,502,371 
Common stock, shares outstanding
222,007,214 
221,502,371 
CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Revenues:
 
 
 
 
Insurance policy income
$ 686.1 
$ 690.2 
$ 2,068.6 
$ 2,071.3 
Net investment income (loss):
 
 
 
 
General account assets
350.7 
349.4 
1,051.4 
1,045.7 
Policyholder and reinsurer accounts and other special-purpose portfolios
49.0 
39.1 
158.5 
87.4 
Realized investment gains (losses):
 
 
 
 
Net realized investment gains, excluding impairment losses
2.8 
32.2 
21.9 
98.4 
Other-than-temporary impairment losses:
 
 
 
 
Total other-than-temporary impairment losses
(2.9)
(23.1)
(3.5)
(34.5)
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income
0 
0 
0 
0 
Net impairment losses recognized
(2.9)
(23.1)
(3.5)
(34.5)
Total realized gains (losses)
(0.1)
9.1 
18.4 
63.9 
Fee revenue and other income
8.1 
5.2 
21.0 
13.6 
Total revenues
1,093.8 
1,093.0 
3,317.9 
3,281.9 
Benefits and expenses:
 
 
 
 
Insurance policy benefits
702.2 
745.7 
2,129.5 
2,124.4 
Interest expense
25.8 
29.2 
80.0 
86.7 
Amortization
61.4 
60.9 
219.9 
215.8 
Loss on extinguishment of debt
0 
198.5 
65.4 
199.2 
Other operating costs and expenses
190.0 
217.5 
559.4 
617.8 
Total benefits and expenses
979.4 
1,251.8 
3,054.2 
3,243.9 
Income (loss) before income taxes
114.4 
(158.8)
263.7 
38.0 
Income tax expense (benefit):
 
 
 
 
Income tax expense (benefit) on period income
38.1 
(10.8)
113.9 
61.2 
Valuation allowance for deferred tax assets and other tax items
(206.7)
(143.0)
(222.2)
(143.0)
Net income (loss)
$ 283.0 
$ (5.0)
$ 372.0 
$ 119.8 
Basic:
 
 
 
 
Weighted average shares outstanding (in shares)
222,876,000 
231,481,000 
221,819,000 
236,555,000 
Net income (loss) (in dollars per share)
$ 1.27 
$ (0.02)
$ 1.68 
$ 0.51 
Diluted:
 
 
 
 
Weighted average shares outstanding (in shares)
229,347,000 
231,481,000 
234,569,000 
292,983,000 
Net income (loss) (in dollars per share)
$ 1.23 
$ (0.02)
$ 1.59 
$ 0.45 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Statement of Other Comprehensive Income [Abstract]
 
 
 
 
Net income (loss)
$ 283.0 
$ (5.0)
$ 372.0 
$ 119.8 
Other comprehensive income, before tax:
 
 
 
 
Unrealized gains (losses) for the period
(196.9)
689.4 
(1,559.9)
1,252.8 
Amortization of present value of future profits and deferred acquisition costs
29.6 
(38.0)
163.7 
(114.2)
Amount related to premium deficiencies assuming the net unrealized gains had been realized
74.1 
(267.6)
552.1 
(380.7)
Reclassification adjustments:
 
 
 
 
For net realized investment gains included in net income
(3.8)
(4.6)
(27.5)
(57.2)
For amortization of the present value of future profits and deferred acquisition costs related to net realized investment gains included in net income
0.1 
1.7 
1.3 
5.9 
Unrealized gains (losses) on investments
(96.9)
380.9 
(870.3)
706.6 
Change related to deferred compensation plan
(1.7)
(2.1)
0.7 
(0.5)
Other comprehensive income (loss) before tax
(98.6)
378.8 
(869.6)
706.1 
Income tax (expense) benefit related to items of accumulated other comprehensive income
34.5 
(135.2)
306.2 
(253.3)
Other comprehensive income (loss), net of tax
(64.1)
243.6 
(563.4)
452.8 
Comprehensive income (loss)
$ 218.9 
$ 238.6 
$ (191.4)
$ 572.6 
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $)
In Millions, unless otherwise specified
Total
Common stock and additional paid-in capital
Accumulated other comprehensive income
Retained earnings (accumulated deficit)
Balance, beginning of period at Dec. 31, 2011
$ 4,613.8 
$ 4,364.3 
$ 781.6 
$ (532.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Net income
119.8 
0 
0 
119.8 
Change in unrealized appreciation (depreciation) of investments (net of applicable income tax expense (benefit))
444.9 
0 
444.9 
0 
Change in noncredit component of impairment losses on fixed maturities, available for sale (net of applicable income tax expense (benefit))
7.9 
0 
7.9 
0 
Extinguishment of beneficial conversion feature related to the repurchase of convertible debentures
(24.0)
(24.0)
0 
0 
Cost of shares acquired
(99.5)
(99.5)
0 
0 
Dividends on common stock
(9.4)
0 
0 
(9.4)
Stock options, restricted stock and performance units
12.7 
12.7 
0 
0 
Balance, end of period at Sep. 30, 2012
5,066.2 
4,253.5 
1,234.4 
(421.7)
Balance, beginning of period at Dec. 31, 2012
5,049.3 
4,176.9 
1,197.4 
(325.0)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Net income
372.0 
0 
0 
372.0 
Change in unrealized appreciation (depreciation) of investments (net of applicable income tax expense (benefit))
(561.5)
0 
(561.5)
0 
Change in noncredit component of impairment losses on fixed maturities, available for sale (net of applicable income tax expense (benefit))
(1.9)
0 
(1.9)
0 
Extinguishment of beneficial conversion feature related to the repurchase of convertible debentures
(12.6)
(12.6)
0 
0 
Cost of shares acquired
(87.3)
(87.3)
0 
0 
Dividends on common stock
(17.9)
0 
0 
(17.9)
Conversion of convertible debentures
24.9 
24.9 
0 
0 
Stock options, restricted stock and performance units
21.6 
21.6 
0 
0 
Balance, end of period at Sep. 30, 2013
$ 4,786.6 
$ 4,123.5 
$ 634.0 
$ 29.1 
PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Comprehensive income (loss), net of tax:
 
 
Change in unrealized appreciation (depreciation) of investments, applicable income tax expense (benefit)
$ (305.2)
$ 248.9 
Change in noncredit component of impairment losses on fixed maturities, available for sale, applicable income tax expense (benefit)
$ (1.0)
$ 4.4 
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:
 
 
Insurance policy income
$ 1,835.1 
$ 1,802.3 
Net investment income
1,020.5 
1,010.0 
Fee revenue and other income
21.0 
13.6 
Insurance policy benefits
(1,596.8)
(1,611.5)
Interest expense
(66.1)
(84.3)
Deferrable policy acquisition costs
(161.8)
(141.4)
Other operating costs
(575.5)
(558.6)
Taxes
(4.3)
(5.5)
Net cash provided by operating activities
472.1 
424.6 
Cash flows from investing activities:
 
 
Sales of investments
1,697.0 
1,852.5 
Maturities and redemptions of investments
1,892.3 
1,365.4 
Purchases of investments
(4,285.3)
(3,570.2)
Net sales of trading securities
19.1 
47.2 
Change in cash and cash equivalents held by variable interest entities
(30.9)
26.2 
Other
(16.0)
(24.3)
Net cash used by investing activities
(723.8)
(303.2)
Cash flows from financing activities:
 
 
Issuance of notes payable, net
0 
944.5 
Payments on notes payable
(114.4)
(779.0)
Expenses related to extinguishment of debt
(61.6)
(182.4)
Amount paid to extinguish the beneficial conversion feature associated with repurchase of convertible debentures
(12.6)
(24.0)
Issuance of common stock
14.7 
2.0 
Payments to repurchase common stock
(87.3)
(99.5)
Common stock dividends paid
(17.9)
(9.4)
Amounts received for deposit products
963.5 
986.0 
Withdrawals from deposit products
(1,105.3)
(1,201.4)
Issuance of investment borrowings:
 
 
Federal Home Loan Bank
450.0 
200.0 
Related to variable interest entities
376.3 
246.7 
Payments on investment borrowings:
 
 
Federal Home Loan Bank
(250.3)
(200.0)
Related to variable interest entities and other
(109.2)
(0.8)
Investment borrowings - repurchase agreements, net
0 
(24.8)
Net cash provided (used) by financing activities
45.9 
(142.1)
Net decrease in cash and cash equivalents
(205.8)
(20.7)
Cash and cash equivalents, beginning of period
582.5 
436.0 
Cash and cash equivalents, end of period
$ 376.7 
$ 415.3 
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 2012 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.  The terms "CNO Financial Group, Inc.", the "Company", "we", "us", and "our" as used in these financial statements refer to CNO and its subsidiaries. Such terms, when used to describe insurance business and products, refer to the insurance business and products of CNO's insurance subsidiaries.

We focus on serving middle-income pre-retiree and retired Americans, 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 2013 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.

The balance sheet at December 31, 2012, 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, fair value measurements of certain investments (including derivatives), other-than-temporary impairments of investments, 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.

The accompanying financial statements include the accounts of the Company and its subsidiaries. Our consolidated financial statements exclude transactions between us and our consolidated affiliates, or among our consolidated affiliates.
OUT-OF-PERIOD ADJUSTMENT (Notes)
OUT-OF-PERIOD ADJUSTMENT
OUT-OF-PERIOD ADJUSTMENTS

In the three months ended March 31, 2013, we recorded the net effect of an out-of-period adjustment which increased our insurance policy benefits by $6.7 million, increased amortization expense by $2.5 million, decreased tax expense by $3.2 million and decreased our net income by $6.0 million (or 2 cents per diluted share). In the three months ended September 30, 2013, we recorded an out-of-period increase to tax expense of $2.2 million (or 1 cent per diluted share) to reflect corrections to previously filed federal tax returns related to Internal Revenue Service ("IRS") examinations. We evaluated these adjustments taking into account both qualitative and quantitative factors and considered the impact of these adjustments in relation to the 2013 period, as well as the materiality to the periods in which they originated. The impact of recognizing these adjustments in prior years was not significant to any individual period. Management believes these adjustments are immaterial to the consolidated financial statements and all previously issued financial statements.
INVESTMENTS
INVESTMENTS
INVESTMENTS

We classify our fixed maturity securities into one of two 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); or (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)).

Our trading securities include: (i) investments purchased with the intent of selling in the near term to generate income on price changes; and (ii) investments supporting certain 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 certain insurance liabilities and certain reinsurance agreements is substantially offset by the change in insurance policy benefits related to certain products and agreements.  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 gains (losses). Our trading securities totaled $246.6 million and $266.2 million at September 30, 2013 and December 31, 2012, 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 September 30, 2013 and December 31, 2012, were as follows (dollars in millions):

 
September 30,
2013
 
December 31,
2012
Net unrealized appreciation (depreciation) on fixed maturity securities, available for sale, on which an other-than-temporary impairment loss has been recognized
$
6.6

 
$
9.8

Net unrealized gains on all other investments
1,402.3

 
2,986.5

Adjustment to present value of future profits (a)
(168.8
)
 
(193.0
)
Adjustment to deferred acquisition costs
(249.8
)
 
(452.9
)
Adjustment to insurance liabilities
—

 
(489.8
)
Unrecognized net loss related to deferred compensation plan
(7.2
)
 
(7.9
)
Deferred income tax liabilities
(349.1
)
 
(655.3
)
Accumulated other comprehensive income
$
634.0

 
$
1,197.4

_________
(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 Conseco, Inc., an Indiana corporation (our "Predecessor"), emerged from bankruptcy).

At September 30, 2013, adjustments to the present value of future profits, deferred acquisition costs and deferred tax assets included $(146.9) million, $(103.0) million and $90.0 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 the sales of such assets were invested at then current yields.

At September 30, 2013, 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
$
14,839.9

 
$
1,205.3

 
$
(170.4
)
 
$
15,874.8

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
99.5

 
3.3

 
(.3
)
 
102.5

 
—

States and political subdivisions
2,146.6

 
128.5

 
(32.6
)
 
2,242.5

 
—

Asset-backed securities
1,413.0

 
74.9

 
(9.5
)
 
1,478.4

 
—

Collateralized debt obligations
298.2

 
7.9

 
(1.2
)
 
304.9

 
—

Commercial mortgage-backed securities
1,456.5

 
102.4

 
(6.5
)
 
1,552.4

 
—

Mortgage pass-through securities
13.6

 
.7

 
(.1
)
 
14.2

 
—

Collateralized mortgage obligations
1,829.9

 
100.9

 
(2.8
)
 
1,928.0

 
(4.5
)
Total fixed maturities, available for sale
$
22,097.2

 
$
1,623.9

 
$
(223.4
)
 
$
23,497.7

 
$
(4.5
)


The following table sets forth the amortized cost and estimated fair value of fixed maturities, available for sale, at September 30, 2013, 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
$
206.1

 
$
208.5

Due after one year through five years
1,936.4

 
2,111.8

Due after five years through ten years
4,040.2

 
4,357.1

Due after ten years
10,903.3

 
11,542.4

Subtotal
17,086.0

 
18,219.8

Structured securities
5,011.2

 
5,277.9

Total fixed maturities, available for sale
$
22,097.2

 
$
23,497.7



Net Realized Investment Gains (Losses)

The following table sets forth the net realized investment gains (losses) for the periods indicated (dollars in millions):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Fixed maturity securities, available for sale:
 
 
 
 
 
 
 
Realized gains on sale
$
12.9

 
$
35.1

 
$
40.3

 
$
103.4

Realized losses on sale
(6.4
)
 
(7.5
)
 
(9.8
)
 
(15.3
)
Impairments:
 
 
 
 
 
 
 
Total other-than-temporary impairment losses
(1.6
)
 
—

 
(1.6
)
 
(.9
)
Other-than-temporary impairment losses recognized in accumulated other comprehensive income (loss)
—

 
—

 
—

 
—

Net impairment losses recognized
(1.6
)
 
—

 
(1.6
)
 
(.9
)
Net realized investment gains from fixed maturities
4.9

 
27.6

 
28.9

 
87.2

Equity securities
—

 
—

 
—

 
.1

Commercial mortgage loans
(1.7
)
 
(1.4
)
 
(1.0
)
 
(1.5
)
Impairments of mortgage loans and other investments
(1.3
)
 
(23.1
)
 
(1.9
)
 
(33.6
)
Other
(2.0
)
 
6.0

 
(7.6
)
 
11.7

Net realized investment gains (losses)
$
(.1
)
 
$
9.1

 
$
18.4

 
$
63.9



During the first nine months of 2013, we recognized net realized investment gains of $18.4 million, which were comprised of $30.7 million of net gains from the sales of investments (primarily fixed maturities) with proceeds of $1.7 billion and the decrease in fair value of certain fixed maturity investments with embedded derivatives of $8.8 million and $3.5 million of writedowns of investments for other than temporary declines in fair value recognized through net income.

During the first nine months of 2012, we recognized net realized investment gains of $63.9 million, which were comprised of $89.0 million of net gains from the sales of investments (primarily fixed maturities) with proceeds of $1.9 billion, the increase in fair value of certain fixed maturity investments with embedded derivatives of $9.4 million, and $34.5 million of writedowns of investments for other than temporary declines in fair value recognized through net income.

At September 30, 2013, fixed maturity securities in default or considered nonperforming had an aggregate amortized cost of nil and a carrying value of $.5 million.

Our fixed maturity investments are generally purchased in the context of various long-term strategies, including funding 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 nine months ended September 30, 2013, we sold $387.9 million of fixed maturity investments which resulted in gross investment losses (before income taxes) of $9.8 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.

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. 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 September 30, 2013, other-than-temporary impairments included in accumulated other comprehensive income of $4.5 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 and nine months ended September 30, 2013 and 2012 (dollars in millions):
 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Credit losses on fixed maturity securities, available for sale, beginning of period
$
(1.5
)
 
$
(1.7
)
 
$
(1.6
)
 
$
(2.0
)
Add:  credit losses on other-than-temporary impairments not previously recognized
—

 
—

 
—

 
—

Less:  credit losses on securities sold
.1

 
—

 
.2

 
.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
$
(1.4
)
 
$
(1.7
)
 
$
(1.4
)
 
$
(1.7
)
__________
(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 September 30, 2013 (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
 
$
23.1

 
$
(.3
)
 
$
—

 
$
—

 
$
23.1

 
$
(.3
)
States and political subdivisions
 
374.8

 
$
(25.3
)
 
68.0

 
(7.3
)
 
442.8

 
(32.6
)
Corporate securities
 
2,613.4

 
(160.2
)
 
81.3

 
(10.2
)
 
2,694.7

 
(170.4
)
Asset-backed securities
 
339.1

 
(8.6
)
 
42.6

 
(.9
)
 
381.7

 
(9.5
)
Collateralized debt obligations
 
48.7

 
(1.2
)
 
—

 
—

 
48.7

 
(1.2
)
Commercial mortgage-backed securities
 
141.2

 
(6.2
)
 
3.2

 
(.3
)
 
144.4

 
(6.5
)
Mortgage pass-through securities
 
.9

 
—

 
1.7

 
(.1
)
 
2.6

 
(.1
)
Collateralized mortgage obligations
 
229.1

 
(2.8
)
 
2.5

 
—

 
231.6

 
(2.8
)
Total fixed maturities, available for sale
 
$
3,770.3

 
$
(204.6
)
 
$
199.3

 
$
(18.8
)
 
$
3,969.6

 
$
(223.4
)
Equity securities
 
$
42.5

 
$
(4.5
)
 
$
—

 
$
—

 
$
42.5

 
$
(4.5
)


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, 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
States and political subdivisions
 
$
48.3

 
$
(1.8
)
 
68.7

 
$
(3.4
)
 
$
117.0

 
$
(5.2
)
Corporate securities
 
338.1

 
(11.2
)
 
174.5

 
(9.0
)
 
512.6

 
(20.2
)
Asset-backed securities
 
41.7

 
(.3
)
 
111.6

 
(4.9
)
 
153.3

 
(5.2
)
Collateralized debt obligations
 
19.4

 
(.4
)
 
32.5

 
(.6
)
 
51.9

 
(1.0
)
Commercial mortgage-backed securities
 
4.9

 
(.1
)
 
6.2

 
(.5
)
 
11.1

 
(.6
)
Mortgage pass-through securities
 
—

 
—

 
1.9

 
—

 
1.9

 
—

Collateralized mortgage obligations
 
27.0

 
(.4
)
 
33.8

 
(.3
)
 
60.8

 
(.7
)
Total fixed maturities, available for sale
 
$
479.4

 
$
(14.2
)
 
$
429.2

 
$
(18.7
)
 
$
908.6

 
$
(32.9
)
Equity securities
 
$
17.8

 
$
(1.6
)
 
$
—

 
$
—

 
$
17.8

 
$
(1.6
)


Based on management's current assessment of investments with unrealized losses at September 30, 2013, 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
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Net income (loss) for basic earnings per share
$
283.0

 
$
(5.0
)
 
$
372.0

 
$
119.8

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

 
—

 
1.6

 
11.1

Net income (loss) for diluted earnings per share
$
283.0

 
$
(5.0
)
 
$
373.6

 
$
130.9

Shares:
 

 
 

 
 

 
 

Weighted average shares outstanding for basic earnings per share
222,876

 
231,481

 
221,819

 
236,555

Effect of dilutive securities on weighted average shares:
 

 
 

 
 

 
 

7% Debentures
839

 
—

 
7,707

 
53,037

Stock options, restricted stock and performance units
2,858

 
—

 
2,699

 
2,639

Warrants
2,774

 
—

 
2,344

 
752

Dilutive potential common shares
6,471

 
—

 
12,750

 
56,428

Weighted average shares outstanding for diluted earnings per share
229,347

 
231,481

 
234,569

 
292,983



In the third quarter of 2012, interest expense of $3.7 million (net of income taxes) on the 7% Debentures was not added back to net income; and 56,651,000 equivalent common shares (comprised of 52,366,000 shares related to the 7% Debentures; 2,968,000 shares related to stock options, restricted stock and performance units; and 1,317,000 shares related to warrants) were not included in the diluted weighted average shares outstanding, because their inclusion would have been antidilutive in such period due to the net loss recognized by the Company.

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 units) 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 and performance units) 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 and performance units). Initially, the 7.0% Debentures were 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 was subject to adjustment following the occurrence of certain events (including the payment of dividends on our common stock) in accordance with the terms of an indenture dated as of October 16, 2009. On July 1, 2013, the Company issued a conversion right termination notice to holders of the 7.0% Debentures as further discussed in the note to the consolidated financial statements entitled "Notes Payable - Direct Corporate Obligations".

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 net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests and loss on extinguishment of debt 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.

Net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests and loss on extinguishment of debt depend on market conditions and do not necessarily relate to the underlying business of our segments.  Net realized investment gains (losses) and fair value changes in embedded derivative liabilities (net of related amortization) 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
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
Bankers Life:
 
 
 
 
 
 
 
Insurance policy income:
 
 
 
 
 
 
 
Annuities
$
5.6

 
$
6.8

 
$
22.1

 
$
21.9

Health
323.3

 
335.1

 
990.0

 
1,010.6

Life
78.5

 
74.2

 
232.4

 
209.1

Net investment income (a)
235.4

 
221.6

 
723.7

 
642.1

Fee revenue and other income (a)
5.8

 
4.0

 
13.5

 
10.2

Total Bankers Life revenues
648.6

 
641.7

 
1,981.7

 
1,893.9

Washington National:
 

 
 

 
 

 
 

Insurance policy income:
 

 
 

 
 

 
 

Health
146.9

 
144.2

 
437.8

 
431.2

Life
3.4

 
3.6

 
10.8

 
11.6

Net investment income (a)
51.8

 
50.9

 
155.1

 
151.9

Fee revenue and other income (a)
.3

 
.3

 
.7

 
.8

Total Washington National revenues
202.4

 
199.0

 
604.4

 
595.5

Colonial Penn:
 

 
 

 
 

 
 

Insurance policy income:
 

 
 

 
 

 
 

Health
1.1

 
1.3

 
3.3

 
4.0

Life
57.0

 
53.2

 
169.7

 
158.5

Net investment income (a)
10.2

 
9.9

 
30.0

 
30.1

Fee revenue and other income (a)
.2

 
.2

 
.6

 
.6

Total Colonial Penn revenues
68.5

 
64.6

 
203.6

 
193.2

Other CNO Business:
 

 
 

 
 

 
 

Insurance policy income:
 

 
 

 
 

 
 

Annuities
6.9

 
2.7

 
10.6

 
8.9

Health
5.9

 
6.2

 
18.2

 
19.3

Life
57.5

 
62.9

 
173.7

 
196.2

Net investment income (a)
82.4

 
86.7

 
252.7

 
259.2

Total Other CNO Business revenues
152.7

 
158.5

 
455.2

 
483.6

Corporate operations:
 

 
 

 
 

 
 

Net investment income
11.0

 
19.4

 
25.6

 
49.8

Fee and other income
1.7

 
.7

 
4.9

 
2.0

Total corporate revenues
12.7

 
20.1

 
30.5

 
51.8

Total revenues
1,084.9

 
1,083.9

 
3,275.4

 
3,218.0


(continued on next page)
(continued from previous page)
 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Expenses:
 
 
 
 
 
 
 
Bankers Life:
 
 
 
 
 
 
 
Insurance policy benefits
$
427.3

 
$
434.6

 
$
1,331.9

 
$
1,252.2

Amortization
39.7

 
35.6

 
139.9

 
143.0

Interest expense on investment borrowings
1.8

 
1.3

 
4.9

 
4.1

Other operating costs and expenses
93.5

 
89.6

 
277.5

 
267.4

Total Bankers Life expenses
562.3

 
561.1

 
1,754.2

 
1,666.7

Washington National:
 

 
 

 
 

 
 

Insurance policy benefits
120.2

 
111.1

 
355.8

 
340.5

Amortization
13.2

 
11.2

 
39.9

 
34.7

Interest expense on investment borrowings
.5

 
.7

 
1.5

 
2.2

Other operating costs and expenses
40.4

 
42.1

 
117.9

 
125.6

Total Washington National expenses
174.3

 
165.1

 
515.1

 
503.0

Colonial Penn:
 

 
 

 
 

 
 

Insurance policy benefits
39.8

 
38.3

 
124.0

 
120.0

Amortization
3.7

 
3.5

 
11.1

 
11.1

Other operating costs and expenses
29.2

 
25.4

 
76.9

 
73.9

Total Colonial Penn expenses
72.7

 
67.2

 
212.0

 
205.0

Other CNO Business:
 

 
 

 
 

 
 

Insurance policy benefits
119.8

 
157.1

 
354.8

 
401.0

Amortization
3.2

 
10.5

 
14.7

 
25.1

Interest expense on investment borrowings
4.8

 
5.0

 
14.4

 
15.1

Other operating costs and expenses
18.8

 
39.5

 
59.0

 
96.4

Total Other CNO Business expenses
146.6

 
212.1

 
442.9

 
537.6

Corporate operations:
 

 
 

 
 

 
 

Interest expense on corporate debt
11.7

 
16.3

 
39.9

 
50.4

Interest expense on borrowings of variable interest entities
—

 
5.8

 
—

 
14.5

Interest expense on investment borrowings
—

 
.1

 
.1

 
.4

Other operating costs and expenses
3.3

 
20.9

 
15.6

 
54.5

Total corporate expenses
15.0

 
43.1

 
55.6

 
119.8

Total expenses
970.9

 
1,048.6

 
2,979.8

 
3,032.1

Income (loss) before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes:
 

 
 
 
 

 
 

Bankers Life
86.3

 
80.6

 
227.5

 
227.2

Washington National
28.1

 
33.9

 
89.3

 
92.5

Colonial Penn
(4.2
)
 
(2.6
)
 
(8.4
)
 
(11.8
)
Other CNO Business
6.1

 
(53.6
)
 
12.3

 
(54.0
)
Corporate operations
(2.3
)
 
(23.0
)
 
(25.1
)
 
(68.0
)
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
$
114.0

 
$
35.3

 
$
295.6

 
$
185.9

___________________
(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
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Total segment revenues
$
1,084.9

 
$
1,083.9

 
$
3,275.4

 
$
3,218.0

Net realized investment gains (losses)
(.1
)
 
9.1

 
18.4

 
63.9

Revenues related to certain non-strategic investments and earnings attributable to non-controlling interests
9.0

 
—

 
24.1

 
—

Consolidated revenues
$
1,093.8

 
$
1,093.0

 
$
3,317.9

 
$
3,281.9

 
 
 
 
 
 
 
 
Total segment expenses
$
970.9

 
$
1,048.6

 
$
2,979.8

 
$
3,032.1

Insurance policy benefits - fair value changes in embedded derivative liabilities
(4.9
)
 
4.6

 
(37.0
)
 
10.7

Amortization related to fair value changes in embedded derivative liabilities
1.5

 
(1.6
)
 
13.0

 
(4.0
)
Amortization related to net realized investment gains
.1

 
1.7

 
1.3

 
5.9

Expenses related to certain non-strategic investments and earnings attributable to non-controlling interests
11.8

 
—

 
31.7

 
—

Loss on extinguishment of debt
—

 
198.5

 
65.4

 
199.2

Consolidated expenses
$
979.4

 
$
1,251.8

 
$
3,054.2

 
$
3,243.9

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 $102.8 million and $37.5 million in the nine months ended September 30, 2013 and 2012, respectively. These amounts were substantially offset by a corresponding change to insurance policy benefits.  The estimated fair value of these options was $123.0 million and $54.4 million at September 30, 2013 and December 31, 2012, 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 Company purchases options to hedge liabilities for the next policy period approximately 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 earnings as a component of insurance policy benefits.  The fair value of these derivatives, which are classified as "liabilities for interest-sensitive products", was $842.9 million at September 30, 2013 and $734.0 million at December 31, 2012. We recognized an increase (reduction) to earnings of $3.4 million and $(3.0) million in the third quarters of 2013 and 2012, respectively, and $24.0 million and $(6.7) million in the first nine months of 2013 and 2012, respectively, from the volatility caused by the accounting requirements to record embedded options at fair value.

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 September 30, 2013, 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 $2.1 million and $5.5 million at September 30, 2013 and December 31, 2012, 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. Such securities totaled $181.5 million and $196.6 million at September 30, 2013 and December 31, 2012, respectively.
REINSURANCE
REINSURANCE
REINSURANCE

The cost of reinsurance ceded totaled $51.1 million and $48.0 million in the third quarters of 2013 and 2012, respectively, and $158.2 million and $164.5 million in the first nine months of 2013 and 2012, respectively. We deduct this cost from insurance policy income.  Reinsurance recoveries netted against insurance policy benefits totaled $51.9 million and $56.4 million in the third quarters of 2013 and 2012, respectively, and $144.6 million and $172.2 million in the first nine months of 2013 and 2012, 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 $4.0 million and $15.9 million in the third quarters of 2013 and 2012, respectively, and $33.1 million and $54.7 million in the first nine months of 2013 and 2012, respectively.  Reinsurance premiums included amounts assumed pursuant to marketing and quota-share agreements with Coventry Health Care ("Coventry") of nil and $11.4 million in the third quarters of 2013 and 2012, respectively, and $19.7 million and $39.9 million in the first nine months of 2013 and 2012, respectively. In August 2013, we received a notice of Coventry's intent to terminate the Medicare Part D prescription drug plan ("PDP") quota-share reinsurance agreement whereby we assumed a portion of the risk related to the PDP business sold through our Bankers Life segment. We continue to receive distribution income from Coventry for PDP business sold through our Bankers Life segment.

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 Company's interim tax expense is based upon the estimated annual effective tax rate for the respective period. Under authoritative guidance, certain items are required to be excluded from the estimated annual effective tax rate calculation. Such items include changes in judgment about the realizability of deferred tax assets resulting from changes in projections of income expected to be available in future years, and items deemed to be unusual, infrequent, or that can not be reliably estimated. In these cases, the actual tax expense or benefit applicable to that item is treated discretely and is reported in the same period as the related item. The tax benefit on the loss on extinguishment of debt of $65.4 million in the nine months ended September 30, 2013, and $198.5 million in the three and nine months ended September 30, 2012 was treated as a discrete item. The components of income tax expense were as follows (dollars in millions):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Current tax expense
$
3.4

 
$
2.4

 
$
8.8

 
$
9.1

Deferred tax expense
34.7

 
11.1

 
106.5

 
76.4

Valuation allowance applicable to current year income
(9.8
)
 
(31.8
)
 
(9.8
)
 
(31.8
)
Income tax expense calculated based on estimated annual effective tax rate
28.3

 
(18.3
)
 
105.5

 
53.7

Income tax expense (benefit) on discrete items:
 
 
 
 
 
 
 
Valuation allowance reduction applicable to income in future years and utilization of capital loss carryforwards
(118.0
)
 
(111.2
)
 
(133.5
)
 
(111.2
)
Valuation allowance reduction applicable to the settlement with the IRS regarding the classification of a portion of the cancellation of indebtedness income
(71.8
)
 
—

 
(71.8
)
 
—

Deferred tax benefit related to loss on extinguishment of debt
—

 
(24.3
)
 
(1.4
)
 
(24.3
)
Change in facts regarding deductibility of repurchase premium on 7.0% Debentures
(14.3
)
 
—

 
(14.3
)
 
—

Unfavorable impacts of expected IRS examination adjustments
7.2

 
—

 
7.2

 
—

Total income tax benefit
$
(168.6
)
 
$
(153.8
)
 
$
(108.3
)
 
$
(81.8
)


A reconciliation of the U.S. statutory corporate tax rate to the estimated annual effective tax rate, before discrete items, reflected in the consolidated statement of operations is as follows:
 

Nine months ended
 
September 30,
 
2013
 
2012
U.S. statutory corporate rate
35.0
 %
 
35.0
 %
Valuation allowance reduction applicable to current year income
(3.5
)
 
(13.8
)
Non-taxable income and nondeductible expenses, net
(.9
)
 
.5

State taxes
1.4

 
1.0

Estimated annual effective tax rate
32.0
 %
 
22.7
 %


The components of the Company's income tax assets and liabilities were as follows (dollars in millions):
 
September 30,
2013
 
December 31,
2012
Deferred tax assets:
 
 
 
Net federal operating loss carryforwards
$
1,244.4

 
$
1,330.2

Net state operating loss carryforwards
16.1

 
16.2

Tax credits
45.7

 
39.2

Capital loss carryforwards
278.6

 
296.2

Deductible temporary differences:


 
 

Insurance liabilities
748.4

 
746.3

Other
56.9

 
86.0

Gross deferred tax assets
2,390.1

 
2,514.1

Deferred tax liabilities:
 

 
 

Investments
(22.2
)
 
(24.1
)
Present value of future profits and deferred acquisition costs
(298.8
)
 
(325.2
)
Accumulated other comprehensive income
(349.1
)
 
(655.3
)
Gross deferred tax liabilities
(670.1
)
 
(1,004.6
)
Net deferred tax assets before valuation allowance
1,720.0

 
1,509.5

Valuation allowance
(554.0
)
 
(766.9
)
Net deferred tax assets
1,166.0

 
742.6

Current income taxes accrued
(30.3
)
 
(25.7
)
Income tax assets, net
$
1,135.7

 
$
716.9



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, including our indepth review in the third quarter of each year in conjunction with our annual financial planning process. The realization of our deferred tax assets depends upon generating sufficient future taxable income of the appropriate type during the periods in which our temporary differences become deductible and before our capital loss carryforwards and life and non-life NOLs expire.

Based on our assessment, it appears more likely than not that $1,166.0 million of our deferred tax assets will be realized through future taxable earnings. Accordingly, we have identified reductions to our deferred tax valuation allowance of $200.6 million, of which $197.4 million was recognized in the third quarter of 2013 and $3.2 million of which will be recognized in the fourth quarter of 2013. We will continue to assess the need for a valuation allowance in the future. If future results are less than projected, a valuation allowance may be required to reduce the deferred tax asset, which could have a material impact on our results of operations in the period in which it is recorded.

There are three principal components of the reduction to our valuation allowance for deferred tax assets. First, our 2013 taxable income is expected to exceed the amount previously reflected in our deferred tax valuation model, resulting in a reduction to the valuation allowance of $13.0 million. This reduction is reflected in the estimate of our annual effective tax rate and, therefore, will be recognized as follows: $9.8 million in the three months ended September 30, 2013 and $3.2 million in the three months ended December 31, 2013. In addition, our recent higher levels of operating income resulted in the projection of higher levels of future years taxable income based on evidence we consider to be objective and verifiable. This change is further described in the following paragraph and resulted in a reduction to the valuation allowance for deferred tax assets in the three months ended September 30, 2013 of $118.0 million (of which, $68 million is attributable to higher projected levels of non-life operating income and $50 million is attributable to higher projected levels of life operating income). Last, as further described below, we have reached an agreement with the IRS regarding the classification of cancellation of indebtedness income ("CODI") related to the bankruptcy of our Predecessor which resulted in a $71.8 million reduction to our valuation allowance.

Our analysis at September 30, 2013, is consistent with the deferred tax valuation model used in the prior year. Our deferred tax valuation model reflects projections of future taxable income based on a normalized average annual taxable income for the last three years, plus 3 percent growth for the next five years and level income thereafter. In our new projections, our three year average will increase to $360 million, compared to $293 million in our prior projection. We have evaluated each component of the deferred tax asset and assessed the effect of limitations and/or interpretations on the value of each component to be fully recognized in the future.

In the first six months of 2013, we reduced our deferred tax valuation allowance by $15.5 million resulting from the utilization of capital loss carryforwards during the period. Changes in our valuation allowance during the three months ended September 30, 2013 are summarized as follows (dollars in millions):

Balance, June 30, 2013
 
$
751.4

Reduction applicable to higher levels of income on projected future taxable income and utilization of capital loss carryforwards
 
(127.8
)
Reduction applicable to the classification of a portion of the CODI as further discussed below
 
(71.8
)
Other items, net
 
2.2

Balance, September 30, 2013
 
$
554.0



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 IRS ultimately agrees with the tax position we have taken in our tax returns with respect to the classification of the loss we recognized as a result of the transfer of the stock of our former subsidiary, Conseco Senior Health Insurance Company ("CSHI") 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 under our securities repurchase program, issuances of common stock (including upon conversion of our outstanding 7.0% Debentures), and 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 (3.28 percent at September 30, 2013), 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 September 30, 2013, we were below the 50 percent ownership change level that would trigger further impairment of our ability to utilize our NOLs.

As of September 30, 2013, we had $3.6 billion of federal NOLs and $.8 billion of capital loss carryforwards. The following table summarizes the expiration dates of our loss carryforwards assuming the IRS does not ultimately agree with the position we have taken with respect to the loss on our investment in CSHI as further described below (dollars in millions):

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

 
 
 
$
—

 
 
 
$
758.2

 
(a)
 
$
758.2

2014
 
—

 
 
 
—

 
 
 
28.6

 
(a)
 
28.6

2016
 
—

 
 
 
—

 
 
 
9.1

 
(a)
 
9.1

2018
 
539.1

 
(a)
 
—

 
 
 
—

 
 
 
539.1

2021
 
29.6

 
 
 
—

 
 
 
—

 
 
 
29.6

2022
 
204.1

 
 
 
—

 
 
 
—

 
 
 
204.1

2023
 
—

 
(a)
 
2,250.8

 
 
 
—

 
 
 
2,250.8

2024
 
—

 
 
 
3.2

 
 
 
—

 
 
 
3.2

2025
 
—

 
 
 
118.6

 
 
 
—

 
 
 
118.6

2027
 
—

 
 
 
216.6

 
 
 
—

 
 
 
216.6

2028
 
—

 
 
 
.5

 
(a)
 
—

 
 
 
.5

2029
 
—

 
 
 
148.9

 
 
 
—

 
 
 
148.9

2032
 
—

 
 
 
44.0

 
 
 
—

 
 
 
44.0

Total
 
$
772.8

 
 
 
$
2,782.6

 
 
 
$
795.9

 
 
 
$
4,351.3

 _________________________
(a)
The allocation of the capital loss carryforwards summarized above assumes the IRS does not ultimately agree with the tax position we have taken with respect to our investment in CSHI, which was worthless when it was transferred to the Independent Trust in 2008. If the IRS ultimately agrees with our tax position of classifying this loss as ordinary, capital loss carryforwards would decrease by $796 million, life NOLs would increase by $660 million and non-life NOLs would increase by $136 million. These amounts reflect the impact of an adjustment we recently made to our previously filed 2008 non-life tax returns to reclassify a capital loss related to our investment in CSHI to an operating loss.
The $796 million decrease to capital loss carryforwards would consist of a reduction of $758 million in 2013, $29 million in 2014 and $9 million in 2016. The $660 million increase to life NOLs would consist of an increase of $742 million in 2023 offset by an $82 million decrease in 2018. The $136 million increase to non-life NOLs would consist of a $136 million increase in 2028.

We had deferred tax assets related to NOLs for state income taxes of $16.1 million and $16.2 million at September 30, 2013 and December 31, 2012, respectively.  The related state NOLs are available to offset future state taxable income in certain states through 2019.

In July 2006, the Joint Committee of Taxation accepted the audit and the settlement which characterized $2.1 billion of the tax losses on our Predecessor's investment in Conseco Finance Corp. as life company losses and the remaining $3.8 billion as non-life losses prior to the application of the CODI attribute reductions described below.

The Code provides that any income realized as a result of the CODI in bankruptcy must reduce NOLs. We realized $2.5 billion of CODI when we emerged from bankruptcy. Pursuant to the Company's interpretation of the tax law, the CODI reductions were all used to reduce non-life NOLs and this position has been taken in our tax returns. However, the IRS was not in agreement with our position. Due to uncertainties with respect to the position the IRS could take and limitations on our ability to utilize NOLs based on projected life and non-life income, we had consistently considered the $631 million of CODI to be a reduction to life NOLs when determining our valuation allowance. A final closing agreement was received from the IRS in August 2013. Under the terms of the agreement, $315 million of the $631 million of CODI is treated as a reduction to the non-life NOLs resulting in a reduction to our valuation allowance of $71.8 million which was recognized in the three months ended September 30, 2013.

We recognized a $878 million loss on our investment in CSHI which was worthless when it was transferred to the Independent Trust in 2008. We have treated the loss as a capital loss when determining the deferred tax benefit we may receive. We also established a full valuation allowance as we believe we will not generate capital gains to utilize the benefit. However, due to uncertainties in the Code, we have reflected this loss as an ordinary loss in our tax return, contrary to certain IRS rulings. This amount reflects the impact of an additional $136 million adjustment we made to our previously filed non-life tax returns to reclassify a capital loss related to our investment in CSHI to an operating loss. We are exploring the use of tax planning strategies to utilize this loss, assuming it is ultimately determined to be a capital loss. We have not been able to conclude that the potential strategies we have identified are feasible and/or prudent as of September 30, 2013. If classifying this loss as ordinary is ultimately determined to be correct, our valuation allowance would be reduced by approximately $180 million based on the income projections used in determining our valuation allowance.

Due to the uncertainty in tax law, we were not able to conclude that a tax position for the repurchase premium related to the repurchase of our 7% Debentures on September 28, 2012 and March 27, 2013, was more likely than not to be sustained. We recently engaged outside counsel and received external evidence in July 2013 which supports our position that deductions with respect to a portion of the repurchase premium paid in 2012 and 2013 should be allowed under Section 249 of the Code. We recognized a tax benefit of $14.3 million in the three months ended September 30, 2013, related to the change in facts regarding the deductibility of a portion of the repurchase premium.

Tax years 2004 and 2008 through 2012 are open to examination by the IRS.  The Company's various state income tax returns are generally open for tax years 2010 through 2011 based on the individual state statutes of limitation. Generally, for tax years which generate NOLs, 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.

The IRS is currently examining our 2004 and 2008 through 2010 tax returns. The tax benefit for the three months ended September 30, 2013, reflects an increase to tax expense of $7.2 million for anticipated adjustments related to the IRS examination (including $3.1 million reducing the aforementioned CODI benefit, $1.9 million related to an uncertain tax position concerning a deduction taken in 2009 and $2.2 million of net corrections to previously filed returns).
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 September 30, 2013 and December 31, 2012 (dollars in millions):

 
September 30,
2013
 
December 31,
2012
Senior Secured Credit Agreement (as defined below)
$
594.0

 
$
644.6

6.375% Senior Secured Notes due October 2020 (the "6.375% Notes")
275.0

 
275.0

7.0% Debentures
3.5

 
93.0

Unamortized discount on Senior Secured Credit Agreement
(3.9
)
 
(5.0
)
Unamortized discount on 7.0% Debentures
—

 
(3.4
)
Direct corporate obligations
$
868.6

 
$
1,004.2



Senior Secured Credit Agreement

On September 28, 2012, the Company entered into a senior secured credit agreement, providing for: (i) a $425.0 million six-year term loan facility ($394.0 million remains outstanding at September 30, 2013); (ii) a $250.0 million four-year term loan facility ($200.0 million remains outstanding at September 30, 2013); and (iii) a $50.0 million three-year revolving credit facility, with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders from time to time party thereto (the "Senior Secured Credit Agreement"). The Senior Secured Credit Agreement is guaranteed by the Subsidiary Guarantors (as defined below) and secured by a first-priority lien (which ranks pari passu with the liens securing the 6.375% Notes) on substantially all of the Company's and the Subsidiary Guarantors' assets. As of September 30, 2013, no amounts have been borrowed under the revolving credit facility.

The revolving credit facility includes an uncommitted subfacility for swingline loans of up to $5.0 million, and up to $5.0 million of the revolving credit facility is available for the issuance of letters of credit. The six-year term loan facility amortizes in quarterly installments in amounts resulting in an annual amortization of 1% and the four-year term loan facility amortizes in quarterly installments resulting in an annual amortization of 20% during the first and second years and 30% during the third and fourth years. Subject to certain conditions, the Company may incur additional incremental loans under the Senior Secured Credit Agreement in an amount of up to $250.0 million.

In May 2013, we amended our Senior Secured Credit Agreement. Pursuant to the amended terms, the applicable interest rates were decreased. The new interest rates with respect to loans under: (i) the six-year term loan facility are, at the Company's option, equal to a eurodollar rate, plus 2.75% per annum, or a base rate, plus 1.75% per annum, subject to a eurodollar rate "floor" of 1.00% and a base rate "floor" of 2.25% (previously a eurodollar rate, plus 3.75% per annum, or a base rate, plus 2.75% per annum, subject to a eurodollar rate "floor" of 1.25% and a base rate "floor" of 2.25%); (ii) the four-year term loan facility are, at the Company's option, equal to a eurodollar rate, plus 2.25% per annum, or a base rate, plus 1.25% per annum, subject to a eurodollar rate "floor" of .75% and a base rate "floor" of 2.00% (previously a eurodollar rate, plus 3.25% per annum, or a base rate, plus 2.25% per annum, subject to a eurodollar rate "floor" of 1.00% and a base rate "floor" of 2.00%); and (iii) the revolving credit facility will be, at the Company's option, equal to a eurodollar rate, plus 3.00% per annum, or a base rate, plus 2.00% per annum, in each case, with respect to revolving credit facility borrowings only, subject to certain step-downs based on the debt to total capitalization ratio of the Company (previously a eurodollar rate, plus 3.50% per annum, or a base rate, plus 2.50% per annum, subject to certain step-downs based on the debt to total capitalization ratio of the Company). At September 30, 2013, the interest rates on the six-year term loan facility and the four-year term loan facility were 3.75% and 3.00%, respectively.

Other changes to the Senior Secured Credit Agreement included:

(i)
modifications of mandatory prepayments resulting from certain restricted payments made (including any common stock dividends and share repurchases) as defined in the Senior Secured Credit Agreement. Pursuant to the amended terms, the amount of the mandatory prepayment is: (a) 100% of the amount of certain restricted payments provided that if, as of the end of the fiscal quarter immediately preceding such restricted payment, the debt to total capitalization ratio is: (x) equal to or less than 25.0% but greater than 20.0%, the prepayment requirement shall be reduced to 33.33% (previously less than or equal to 22.5% but greater than 17.5%); or (y) equal to or less than 20.0%, the prepayment requirement shall not apply (previously equal to or less than 17.5%); and

(ii)
that there will be a 1.00% fee in connection with any repricing of the six-year term loan facility that reduces the interest rate prior to the date that is six months after the closing of the amendment of the Senior Secured Credit Agreement.

In the first six months of 2013, we made mandatory prepayments of $20.4 million in an amount equal to 33.33% of our share repurchases and common stock dividend payments, as required under the terms of our Senior Secured Credit Agreement. No mandatory prepayments were required in the third quarter of 2013 as our debt to total capitalization ratio, as defined in the Senior Secured Credit Agreement, was below 20.0 percent. We also made additional payments of $30.2 million in the first nine months of 2013 to cover the remaining portion of the scheduled quarterly principal payments due under the Senior Secured Credit Agreement.

In the first nine months of 2013, we recognized a loss on extinguishment of debt totaling $2.9 million reflecting expenses related to the amendment of the Senior Secured Credit Agreement and the write-off of unamortized discount and issuance costs associated with prepayments on the Senior Secured Credit Agreement.

Mandatory prepayments of the Senior Secured Credit Agreement will be required, subject to certain exceptions, in an amount equal to: (i) 100% of the net cash proceeds from certain asset sales or casualty events; (ii) 100% of the net cash proceeds received by the Company or any of its restricted subsidiaries from certain debt issuances; and (iii) 100% 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: (x) equal to or less than 25.0%, but greater than 20.0%, the prepayment requirement shall be reduced to 33.33%; or (y) equal to or less than 20.0%, the prepayment requirement shall not apply.

Notwithstanding the foregoing, no mandatory prepayments pursuant to item (i) in the preceding paragraph shall be required if: (x) the debt to total capitalization ratio is equal or less than 20% and (y) either (A) the financial strength rating of certain of the Company's 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 Senior Secured Credit Agreement requires the Company to maintain (each as calculated in accordance with the Senior Secured Credit Agreement): (i) a debt to total capitalization ratio of not more than 27.5 percent (such ratio was 17.5 percent at September 30, 2013); (ii) an interest coverage ratio of not less than 2.50 to 1.00 for each rolling four quarters (or, if less, the number of full fiscal quarters commencing after the effective date of the Senior Secured Credit Agreement) (such ratio was 8.70 to 1.00 for the period ended September 30, 2013); (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 392 percent at September 30, 2013); and (iv) a combined statutory capital and surplus for the Company's insurance subsidiaries of at least $1,300.0 million (combined statutory capital and surplus at September 30, 2013, was $1,901.5 million).

6.375% Notes

On September 28, 2012, we issued $275.0 million in aggregate principal amount of 6.375% Notes pursuant to an Indenture, dated as of September 28, 2012 (the "6.375% Indenture"), among the Company, the subsidiary guarantors party thereto (the "Subsidiary Guarantors") and Wilmington Trust, National Association, as trustee and as collateral agent. The 6.375% Notes mature on October 1, 2020. Interest on the 6.375% Notes accrues at a rate of 6.375% per annum and is payable semiannually in arrears on April 1 and October 1 of each year, commencing on April 1, 2013. The 6.375% Notes and the guarantees thereof (the "Guarantees") are senior secured obligations of the Company and the Subsidiary Guarantors and rank equally in right of payment with all of the Company's and the Subsidiary Guarantors' existing and future senior obligations, and senior to all of the Company's and the Subsidiary Guarantors' future subordinated indebtedness. The 6.375% Notes are secured by a first-priority lien on substantially all of the assets of the Company and the Subsidiary Guarantors, subject to certain exceptions. The 6.375% Notes and the Guarantees are pari passu with respect to security and in right of payment with all of the Company's and the Subsidiary Guarantors' existing and future secured indebtedness under the Senior Secured Credit Agreement. The 6.375% Notes are structurally subordinated to all of the liabilities and preferred stock of each of the Company's insurance subsidiaries, which are not guarantors of the 6.375% Notes.

Under the 6.375% Indenture, the Company can make Restricted Payments (as such term is defined in the 6.375% 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, repurchases of common stock and cash dividends on common stock (to the extent such dividends exceed $30 million in the aggregate in any calendar year). Restricted payments do not include cash paid to purchase our outstanding 7.0% Debentures pursuant to the previously announced tender offer discussed below.

The limit of Restricted Payments permitted under the 6.375% Indenture is the sum of (x) 50% of the Company's "Net Excess Cash Flow" (as defined in the 6.375% Indenture) for the period (taken as one accounting period) from July 1, 2012 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, (y) $175.0 million and (z) certain other amounts specified in the 6.375% Indenture. Based on the provisions set forth in the 6.375% Indenture and the Company's Net Excess Cash Flow for the period from July 1, 2012 through September 30, 2013, the Company could have made additional Restricted Payments under this 6.375% Indenture covenant of approximately $250 million as of September 30, 2013. This limitation on Restricted Payments does not apply if the Debt to Total Capitalization Ratio (as defined in the 6.375% Indenture) as of the last day of the Company's most recently ended fiscal quarter for which financial statements are available that immediately precedes the date of any Restricted Payment, calculated immediately after giving effect to such Restricted Payment and any related transactions on a pro forma basis, is equal to or less than 17.5%.

7.0% Debentures

On March 28, 2013, the Company completed the cash tender offer (the "Offer") for $59.3 million aggregate principal amount of its 7.0% Debentures for an aggregate purchase price of $124.8 million. The Offer was conducted as part of our previously announced securities repurchase program.

Pursuant to the terms of the Offer, holders of the 7.0% Debentures who tendered their 7.0% Debentures prior to the expiration date, received, for each $1,000 principal amount of such 7.0% Debentures, a cash purchase price (the "Purchase Price") equal to the sum of: (i) the average volume weighted average price of our common stock (as defined in the Offer) ($11.2393 at the close of trading on March 27, 2013) multiplied by 183.5145; plus (ii) a fixed cash amount of $61.25. The final Purchase Price per $1,000 principal amount of 7.0% Debentures was $2,123.82. In addition to the Purchase Price, holders received accrued and unpaid interest on any 7.0% Debentures that were tendered to, but excluding, the settlement date of the Offer.

In May 2013, we repurchased $4.5 million principal amount of the 7.0% Debentures for an aggregate purchase price of $9.4 million.

In the first nine months of 2013, we recognized a loss on extinguishment of debt totaling $62.5 million as a result of the Offer and repurchase of 7.0% Debentures described above, the write-off of unamortized discount and issuance costs associated with the 7.0% Debentures that were repurchased and other transaction costs. Additional paid-in capital was also reduced by $12.6 million to extinguish the beneficial conversion feature associated with a portion of the 7.0% Debentures that were repurchased.

On July 1, 2013, the Company issued a conversion right termination notice (the “Conversion Termination Notice”) to holders of the 7.0% Debentures. The Company elected to terminate the right to convert the 7.0% Debentures into shares of its common stock, par value $0.01 per share, effective as of July 30, 2013 (the “Conversion Termination Date”). Holders of the 7.0% Debentures were able to exercise their conversion right at any time on or prior to the close of business on July 30, 2013. Holders exercising their conversion right received 184.3127 shares of common stock per $1,000 principal amount of 7.0% Debentures converted. The 7.0% Debentures submitted for conversion were deemed paid in full and the Company has no further obligation with respect to such 7.0% Debentures. Holders of $25.7 million in aggregate principal amount of the 7.0% Debentures exercised their conversion right and received 4.7 million shares of our common stock. As of September 30, 2013, $3.5 million in aggregate principal amount of the 7.0% Debentures remained outstanding.

Scheduled Repayment of our Direct Corporate Obligations

The scheduled repayment of our direct corporate obligations was as follows at September 30, 2013 (dollars in millions):

Year ending September 30,
 
2014
$
52.1

2015
79.2

2016
79.2

2017
7.8

2018
379.2

Thereafter
275.0

 
$
872.5

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 September 30, 2013, the carrying value of the FHLB common stock was $92.5 million.  As of September 30, 2013, collateralized borrowings from the FHLB totaled $1.8 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 $2.3 billion at September 30, 2013, which are maintained in a custodial account for the benefit of the FHLB.  Substantially all of such investments are classified as fixed maturities, available for sale, in our consolidated balance sheet.  Interest expense of $20.8 million and $21.3 million in the first nine months of 2013 and 2012, 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
 
September 30, 2013
$
67.0

 
February 2014
 
Fixed rate – 1.830%
50.0

 
September 2015
 
Variable rate – 0.564%
150.0

 
October 2015
 
Variable rate – 0.532%
100.0

 
November 2015
 
Variable rate – 0.343%
146.0

 
November 2015
 
Fixed rate – 5.300%
100.0

 
December 2015
 
Fixed rate – 4.710%
100.0

 
June 2016
 
Variable rate – 0.619%
75.0

 
June 2016
 
Variable rate – 0.408%
100.0

 
October 2016
 
Variable rate – 0.426%
50.0

 
November 2016
 
Variable rate – 0.530%
50.0

 
November 2016
 
Variable rate – 0.650%
57.7

 
June 2017
 
Variable rate – 0.612%
100.0

 
July 2017
 
Fixed rate – 3.900%
50.0

 
August 2017
 
Variable rate – 0.464%
75.0

 
August 2017
 
Variable rate – 0.412%
100.0

 
October 2017
 
Variable rate – 0.698%
37.0

 
November 2017
 
Fixed rate – 3.750%
50.0

 
January 2018
 
Variable rate – 0.619%
50.0

 
January 2018
 
Variable rate – 0.605%
50.0

 
February 2018
 
Variable rate – 0.575%
22.0

 
February 2018
 
Variable rate – 0.592%
100.0

 
May 2018
 
Variable rate – 0.629%
50.0

 
July 2018
 
Variable rate – 0.734%
50.0

 
August 2018
 
Variable rate – 0.384%
21.8

 
June 2020
 
Fixed rate – 1.960%
27.7

 
March 2023
 
Fixed rate – 2.160%
20.5

 
June 2025
 
Fixed rate – 2.940%
$
1,849.7

 
 
 
 



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 September 30, 2013, the aggregate yield maintenance fee to prepay all fixed rate borrowings was $48.8 million.

As part of our investment strategy, we may enter into repurchase agreements to increase our investment return. Pursuant to such agreements, the Company sells securities subject to an obligation to repurchase the same securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. We had no such borrowings outstanding at September 30, 2013.

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 September 30, 2013, investment borrowings consisted of:  (i) collateralized borrowings from the FHLB of $1.8 billion; and (ii) other borrowings of $.5 million.

At December 31, 2012, investment borrowings consisted of:  (i) collateralized borrowings from the FHLB of $1.7 billion; and (ii) other borrowings of $.8 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, 2012
221,502

 
 
Treasury stock purchased and retired
(7,006
)
 
 
Conversion of 7.0% Debentures
4,739

 
 
Stock options exercised
1,986

 
 
Restricted and performance stock vested
786

 
(a)
Balance, September 30, 2013
222,007

 
 
________
(a)
Such amount was reduced by 347 thousand shares which were tendered to the Company for the payment of federal and state taxes owed on the vesting of restricted and performance stock.

In May 2011, the Company announced a common share repurchase program of up to $100.0 million. In February 2012, June 2012 and December 2012, the Company's Board of Directors approved, in aggregate, an additional $500.0 million to repurchase the Company's outstanding securities. In the first nine months of 2013, we repurchased 7.0 million shares of common stock for $87.3 million, under the securities repurchase program. The Company purchased $63.8 million aggregate principal amount of our 7.0% Debentures in the first nine months of 2013 as further discussed in the note to the consolidated financial statements entitled "Notes Payable - Direct Corporate Obligations". Such repayments were made pursuant to our securities repurchase program. The Company had remaining repurchase authority of $128.4 million as of September 30, 2013.

In May 2012, we initiated a common stock dividend program. In the first nine months of 2013, dividends declared and paid on common stock were $0.08 per share totaling $17.9 million.
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 $3.9 million and $3.1 million during the nine months ended September 30, 2013 and 2012, respectively.  Amounts amortized totaled $17.0 million and $20.5 million during the nine months ended September 30, 2013 and 2012, respectively.  The unamortized balance of deferred sales inducements at September 30, 2013 and December 31, 2012 was $113.4 million and $126.5 million, respectively.  The balance of insurance liabilities for persistency bonus benefits was $30.3 million and $34.6 million at September 30, 2013 and December 31, 2012, respectively.
ASSETS AND LIABILITIES SUBJECT TO OFFSETTING DISCLOSURE REQUIREMENTS
ASSETS AND LIABILITIES SUBJECT TO OFFSETTING DISCLOSURE REQUIREMENTS
ASSETS AND LIABILITIES SUBJECT TO OFFSETTING DISCLOSURE REQUIREMENTS

Call options

As described in the note to the consolidated financial statements entitled "Accounting for Derivatives", we buy call options (including call spreads) referenced to 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 limit our exposure to the counterparties failing to meet their obligation with respect to the call options by diversifying among several counterparties believed to be strong and credit worthy. The call options are free-standing derivatives and are recorded at fair value in the Company's consolidated balance sheet. The Company and its subsidiaries are parties to master netting arrangements with its counterparties related to entering into various derivative contracts. However, the offsetting of assets and liabilities is not applicable to the derivative contracts that were in place at September 30, 2013 or December 31, 2012. The counterparties do not provide collateral to the Company related to their obligations under the call options.



The following tables summarize information related to call options as of September 30, 2013 and December 31, 2012 (dollars in millions):

 
 
 
 
 
 
 
 
 
Gross amounts not offset in the balance sheet
 
 
 
 
 
Gross amounts of recognized assets
 
Gross amounts offset in the balance sheet
 
Net amounts of assets presented in the balance sheet
 
Financial instruments
 
Cash collateral received
 
Net amount
September 30, 2013:
 
 
 
Call Options
 
$
123.0

 
$
—

 
$
123.0

 
$
—

 
$
—

 
$
123.0

December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
Call Options
 
54.4

 
—

 
54.4

 
—

 
—

 
54.4



Repurchase agreements

As described in the note to the consolidated financial statements entitled "Investment Borrowings", we may enter into agreements under which we sell securities subject to an obligation to repurchase the same securities. These repurchase agreements are accounted for as collateralized financing arrangements and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as investment borrowings in the Company's consolidated balance sheet, while the securities underlying the repurchase agreements remain in the respective investment asset accounts. There is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not currently have any outstanding reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). If the counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. There were no repurchase agreements outstanding at September 30, 2013 and December 31, 2012.
RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ISSUED ACCOUNTING STANDARDS

Pending Accounting Standards

In July 2013, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. Such guidance will require an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances as further described in the guidance.

Such guidance does not require new recurring disclosures. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The guidance should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
    
Adopted Accounting Standards

In December 2011, the FASB issued authoritative guidance regarding disclosures about offsetting assets and liabilities. The guidance requires an entity to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The guidance is effective for annual and interim reporting periods beginning on or after January 1, 2013, with retrospective disclosures required for all comparative periods presented. In January 2013, the FASB issued authoritative guidance that limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent that they are: (i) offset in the financial statements; or (ii) subject to an enforceable master netting arrangement or similar agreement. Such disclosures are included in the note to the consolidated financial statements entitled "Assets and Liabilities Subject to Offsetting Disclosure Requirements".
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):

 
Nine months ended
 
September 30,
 
2013
 
2012
Cash flows from operating activities:
 
 
 
Net income
$
372.0

 
$
119.8

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

Amortization and depreciation
241.1

 
235.2

Income taxes
(112.6
)
 
(87.3
)
Insurance liabilities
298.8

 
242.8

Accrual and amortization of investment income
(189.4
)
 
(123.1
)
Deferral of policy acquisition costs
(161.8
)
 
(141.4
)
Net realized investment gains
(18.4
)
 
(63.9
)
Loss on extinguishment of debt
65.4

 
199.2

Other
(23.0
)
 
43.3

Net cash provided by operating activities
$
472.1

 
$
424.6



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

 
Nine months ended
 
September 30,
 
2013
 
2012
Stock options, restricted stock and performance units
$
10.8

 
$
10.7

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

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 2013).  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.  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):

 
September 30, 2013
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
1,080.7

 
$
—

 
$
1,080.7

Notes receivable of VIEs held by insurance subsidiaries
—

 
(108.4
)
 
(108.4
)
Cash and cash equivalents held by variable interest entities
85.1

 
—

 
85.1

Accrued investment income
2.1

 
—

 
2.1

Income tax assets, net
5.9

 
(2.5
)
 
3.4

Other assets
22.5

 
(1.5
)
 
21.0

Total assets
$
1,196.3

 
$
(112.4
)
 
$
1,083.9

Liabilities:
 

 
 

 
 

Other liabilities
$
59.6

 
$
(4.6
)
 
$
55.0

Borrowings related to variable interest entities
1,035.1

 
—

 
1,035.1

Notes payable of VIEs held by insurance subsidiaries
112.5

 
(112.5
)
 
—

Total liabilities
$
1,207.2

 
$
(117.1
)
 
$
1,090.1


 
December 31, 2012
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
814.3

 
$
—

 
$
814.3

Notes receivable of VIEs held by insurance subsidiaries
—

 
(78.5
)
 
(78.5
)
Cash and cash equivalents held by variable interest entities
54.2

 
—

 
54.2

Accrued investment income
1.8

 
—

 
1.8

Income tax assets, net
3.3

 
(2.6
)
 
.7

Other assets
9.6

 
—

 
9.6

Total assets
$
883.2

 
$
(81.1
)
 
$
802.1

Liabilities:
 

 
 

 
 

Other liabilities
$
39.9

 
$
(3.3
)
 
$
36.6

Borrowings related to variable interest entities
767.0

 
—

 
767.0

Notes payable of VIEs held by insurance subsidiaries
82.5

 
(82.5
)
 
—

Total liabilities
$
889.4

 
$
(85.8
)
 
$
803.6



The investment portfolios held by the VIEs are primarily comprised of corporate bank loans which are almost entirely rated below-investment grade.  At September 30, 2013, such loans had an amortized cost of $1,081.4 million; gross unrealized gains of $3.3 million; gross unrealized losses of $4.0 million; and an estimated fair value of $1,080.7 million.

The following table sets forth the amortized cost and estimated fair value of the investments held by the VIEs at September 30, 2013, 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
$
7.0

 
$
7.0

Due after one year through five years
368.3

 
369.6

Due after five years through ten years
706.1

 
704.1

Total
$
1,081.4

 
$
1,080.7



During the first nine months of 2013, we recognized net realized investment losses on the VIE investments of $1.4 million, which were comprised of $.3 million of net losses from the sales of fixed maturities, and $1.1 million of writedowns of investments for other than temporary declines in fair value recognized through net income.  During the first nine months of 2012, we recognized net realized investment losses on the VIE investments of $.1 million, which were comprised of $.3 million of net gains 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.

At September 30, 2013, there were no investments held by the VIEs that were in default.

During the first nine months of 2013, $9.3 million investments held by the VIEs were sold which resulted in gross investment losses (before income taxes) of $.6 million.

At September 30, 2013, the VIEs held:  (i) investments with a fair value of $574.2 million and gross unrealized losses of $3.9 million that had been in an unrealized loss position for less than twelve months; and (ii) investments with a fair value of $9.1 million and gross unrealized losses of $.1 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 September 30, 2013, we hold investments in various limited partnerships, in which we are not the primary beneficiary, totaling $29.3 million (classified as other invested assets).  At September 30, 2013, we had unfunded commitments to these partnerships of $24.5 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 or issuer spreads, reported trades 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 broker/dealer quotes, pricing services 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 transfers between Level 1 and Level 2 in both the first nine months of 2013 and 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. Additionally, when inputs are provided by third-party pricing sources, we have controls in place to review those inputs for reasonableness. 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.

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 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 September 30, 2013 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
$
—

 
$
15,517.5

 
$
357.3

 
$
15,874.8

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

 
102.5

 
—

 
102.5

States and political subdivisions
—

 
2,242.5

 
—

 
2,242.5

Asset-backed securities
—

 
1,441.9

 
36.5

 
1,478.4

Collateralized debt obligations
—

 
44.8

 
260.1

 
304.9

Commercial mortgage-backed securities
—

 
1,552.4

 
—

 
1,552.4

Mortgage pass-through securities
—

 
12.5

 
1.7

 
14.2

Collateralized mortgage obligations
—

 
1,927.9

 
.1

 
1,928.0

Total fixed maturities, available for sale
—

 
22,842.0

 
655.7

 
23,497.7

Equity securities:
 
 
 
 
 
 
 
Corporate securities
90.0

 
144.9

 
23.8

 
258.7

Venture capital investments
—

 
—

 
3.3

 
3.3

Total equity securities
90.0

 
144.9

 
27.1

 
262.0

Trading securities:
 

 
 

 
 

 
 

Corporate securities
—

 
43.9

 
—

 
43.9

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

 
4.6

 
—

 
4.6

States and political subdivisions
—

 
14.3

 
—

 
14.3

Asset-backed securities
—

 
1.1

 
26.3

 
27.4

Commercial mortgage-backed securities
—

 
123.4

 
—

 
123.4

Mortgage pass-through securities
—

 
.1

 
—

 
.1

Collateralized mortgage obligations
—

 
25.8

 
5.6

 
31.4

Equity securities
1.5

 
—

 
—

 
1.5

Total trading securities
1.5

 
213.2

 
31.9

 
246.6

Investments held by variable interest entities - corporate securities
—

 
1,080.7

 
—

 
1,080.7

Other invested assets - derivatives
1.5

 
123.0

 
—

 
124.5

Assets held in separate accounts
—

 
13.3

 
—

 
13.3

Total assets carried at fair value by category
$
93.0

 
$
24,417.1

 
$
714.7

 
$
25,224.8

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

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

 
$
—

 
$
842.9

 
$
842.9

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

 
—

 
2.1

 
2.1

Total liabilities for insurance products
—

 
—

 
845.0

 
845.0

Total liabilities carried at fair value by category
$
—

 
$
—

 
$
845.0

 
$
845.0


The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 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
$
—

 
$
16,498.6

 
$
355.5

 
$
16,854.1

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

 
99.5

 
—

 
99.5

States and political subdivisions
—

 
2,115.0

 
13.1

 
2,128.1

Debt securities issued by foreign governments
—

 
.8

 
—

 
.8

Asset-backed securities
—

 
1,416.9

 
44.0

 
1,460.9

Collateralized debt obligations
—

 
—

 
324.0

 
324.0

Commercial mortgage-backed securities
—

 
1,471.2

 
6.2

 
1,477.4

Mortgage pass-through securities
—

 
19.9

 
1.9

 
21.8

Collateralized mortgage obligations
—

 
2,230.6

 
16.9

 
2,247.5

Total fixed maturities, available for sale
—

 
23,852.5

 
761.6

 
24,614.1

Equity securities:
 
 
 
 
 
 
 
Corporate securities
49.7

 
118.8

 
.1

 
168.6

Venture capital investments
—

 
—

 
2.8

 
2.8

Total equity securities
49.7

 
118.8

 
2.9

 
171.4

Trading securities:
 

 
 

 
 

 
 

Corporate securities
—

 
46.6

 
—

 
46.6

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

 
4.8

 
—

 
4.8

States and political subdivisions
—

 
14.0

 
.6

 
14.6

Asset-backed securities
—

 
50.1

 
—

 
50.1

Collateralized debt obligations
—

 
—

 
7.3

 
7.3

Commercial mortgage-backed securities
—

 
93.3

 
—

 
93.3

Mortgage pass-through securities
—

 
.1

 
—

 
.1

Collateralized mortgage obligations
—

 
41.2

 
5.8

 
47.0

Equity securities
.9

 
1.5

 
—

 
2.4

Total trading securities
.9

 
251.6

 
13.7

 
266.2

Investments held by variable interest entities - corporate securities
—

 
814.3

 
—

 
814.3

Other invested assets - derivatives
—

 
54.4

 
—

 
54.4

Assets held in separate accounts
—

 
14.9

 
—

 
14.9

Total assets carried at fair value by category
$
50.6

 
$
25,106.5

 
$
778.2

 
$
25,935.3

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

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

 
$
—

 
$
734.0

 
$
734.0

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

 
—

 
5.5

 
5.5

Total liabilities for insurance products
—

 
—

 
739.5

 
739.5

Total liabilities carried at fair value by category
$
—

 
$
—

 
$
739.5

 
$
739.5


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.

Company-owned life insurance is backed by a series of mutual funds and is carried at cash surrender value which approximates estimated fair value.

Hedge fund investments are carried at their net asset values which approximates estimated fair 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.

Cash and cash equivalents include commercial paper, invested cash and other investments purchased with original maturities of less than three months. We carry them at amortized cost, which approximates estimated fair 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):

 
September 30, 2013
 
Quoted prices in active markets for identical assets or liabilities
(Level 1)
 
Significant other observable inputs
 (Level 2)
 
Significant unobservable inputs 
(Level 3)
 
Total estimated fair value
 
Total carrying amount
Assets:
 
 
 
 
 
 
 
 
 
Mortgage loans
$
—

 
$
—

 
$
1,685.9

 
$
1,685.9

 
$
1,635.1

Policy loans
—

 
—

 
267.5

 
267.5

 
267.5

Other invested assets:
 
 
 
 
 
 
 
 
 
Company-owned life insurance
—

 
133.2

 
—

 
133.2

 
133.2

Hedge funds
—

 
17.4

 
—

 
17.4

 
17.4

Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
Unrestricted
255.5

 
121.1

 
—

 
376.6

 
376.7

Held by variable interest entities
85.1

 
—

 
—

 
85.1

 
85.1

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

 
—

 
11,936.1

 
11,936.1

 
11,936.1

Investment borrowings
—

 
1,899.0

 
—

 
1,899.0

 
1,850.2

Borrowings related to variable interest entities
—

 
1,019.9

 
—

 
1,019.9

 
1,035.1

Notes payable – direct corporate obligations
—

 
886.5

 
—

 
886.5

 
868.6


 
December 31, 2012
 
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
Assets:
 
 
 
 
 
 
 
 
 
Mortgage loans
$
—

 
$
—

 
$
1,682.1

 
$
1,682.1

 
$
1,573.2

Policy loans
—

 
—

 
272.0

 
272.0

 
272.0

Other invested assets:
 
 
 
 
 
 
 
 
 
Company-owned life insurance
—

 
123.0

 
—

 
123.0

 
123.0

Hedge funds
—

 
16.1

 
—

 
16.1

 
16.1

Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
Unrestricted
432.3

 
150.2

 
—

 
582.5

 
582.5

Held by variable interest entities
54.2

 
—

 
—

 
54.2

 
54.2

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

 
—

 
12,153.7

 
12,153.7

 
12,153.7

Investment borrowings
—

 
1,702.0

 
—

 
1,702.0

 
1,650.8

Borrowings related to variable interest entities
—

 
752.2

 
—

 
752.2

 
767.0

Notes payable – direct corporate obligations
—

 
1,100.3

 
—

 
1,100.3

 
1,004.2



____________________
(a)
The estimated fair value of insurance liabilities for interest-sensitive products was approximately equal to its carrying value at September 30, 2013 and December 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 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 September 30, 2013 (dollars in millions):

 
September 30, 2013
 
 
 
Beginning balance as of June 30, 2013
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2013
 
Amount of total gains (losses) for the three months ended September 30, 2013 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
$
393.1

 
$
(2.1
)
 
$
—

 
$
1.4

 
$
12.9

 
$
(48.0
)
 
$
357.3

 
$
—

Asset-backed securities
45.4

 
(7.2
)
 
—

 
.3

 
—

 
(2.0
)
 
36.5

 
—

Collateralized debt obligations
287.6

 
(18.0
)
 
—

 
.6

 
—

 
(10.1
)
 
260.1

 
—

Commercial mortgage-backed securities
3.3

 
—

 
—

 
—

 
—

 
(3.3
)
 
—

 
—

Mortgage pass-through securities
1.8

 
(.1
)
 
—

 
—

 
—

 
—

 
1.7

 
—

Collateralized mortgage obligations
.1

 
—

 
—

 
—

 
—

 
—

 
.1

 
—

Total fixed maturities, available for sale
731.3

 
(27.4
)
 
—

 
2.3

 
12.9

 
(63.4
)
 
655.7

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
.1

 
.7

 
—

 
—

 
23.0

 
—

 
23.8

 
—

Venture capital investments
3.1

 
—

 
—

 
.2

 
—

 
—

 
3.3

 
—

Total equity securities
3.2

 
.7

 
—

 
.2

 
23.0

 
—

 
27.1

 
—

Trading securities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Asset-backed securities
—

 
—

 
—

 
.6

 
25.7

 
—

 
26.3

 
.6

Collateralized mortgage obligations
10.4

 
—

 
—

 
—

 
—

 
(4.8
)
 
5.6

 
—

Total trading securities
10.4

 
—

 
—

 
.6

 
25.7

 
(4.8
)
 
31.9

 
.6

Liabilities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(796.3
)
 
(45.2
)
 
(1.4
)
 
—

 
—

 
—

 
(842.9
)
 
(1.4
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
(2.6
)
 
.5

 
—

 
—

 
—

 
—

 
(2.1
)
 
—

Total liabilities for insurance products
(798.9
)
 
(44.7
)
 
(1.4
)
 
—

 
—

 
—

 
(845.0
)
 
(1.4
)

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 September 30, 2013 (dollars in millions):

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

 
$
(2.1
)
 
$
—

 
$
—

 
$
(2.1
)
Asset-backed securities
—

 
(7.2
)
 
—

 
—

 
(7.2
)
Collateralized debt obligations
5.9

 
(23.9
)
 
—

 
—

 
(18.0
)
Mortgage pass-through securities
—

 
(.1
)
 
—

 
—

 
(.1
)
Total fixed maturities, available for sale
5.9

 
(33.3
)
 
—

 
—

 
(27.4
)
Equity securities - corporate securities
.7

 
—

 
—

 
—

 
.7

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(25.4
)
 
—

 
(30.0
)
 
10.2

 
(45.2
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
.5

 
—

 
—

 
.5

Total liabilities for insurance products
(25.4
)
 
.5

 
(30.0
)
 
10.2

 
(44.7
)



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 nine months ended September 30, 2013 (dollars in millions):
 
September 30, 2013
 
 
 
Beginning balance as of December 31, 2012
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2013
 
Amount of total gains (losses) for the nine months ended September 30, 2013 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
$
355.5

 
$
14.0

 
$
(.3
)
 
$
(12.8
)
 
$
13.2

 
$
(12.3
)
 
$
357.3

 
$
—

States and political subdivisions
13.1

 
—

 
—

 
—

 
—

 
(13.1
)
 
—

 
—

Asset-backed securities
44.0

 
(4.5
)
 
.1

 
(3.1
)
 
—

 
—

 
36.5

 
—

Collateralized debt obligations
324.0

 
(70.5
)
 
.1

 
6.5

 
—

 
—

 
260.1

 
—

Commercial mortgage-backed securities
6.2

 
—

 
—

 
—

 
—

 
(6.2
)
 
—

 
—

Mortgage pass-through securities
1.9

 
(.2
)
 
—

 
—

 
—

 
—

 
1.7

 
—

Collateralized mortgage obligations
16.9

 
(.1
)
 
—

 
—

 
—

 
(16.7
)
 
.1

 
—

Total fixed maturities, available for sale
761.6

 
(61.3
)
 
(.1
)
 
(9.4
)
 
13.2

 
(48.3
)
 
655.7

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
.1

 
34.7

 
—

 
(11.0
)
 
—

 
—

 
23.8

 
—

Venture capital investments
2.8

 
—

 
—

 
.5

 
—

 
—

 
3.3

 
—

Total equity securities
2.9

 
34.7

 
—

 
(10.5
)
 
—

 
—

 
27.1

 
—

Trading securities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

States and political subdivisions
.6

 
—

 
—

 
—

 
—

 
(.6
)
 
—

 
—

Asset-backed securities
—

 
—

 
—

 
(.4
)
 
26.7

 
—

 
26.3

 
(.4
)
Collateralized debt obligations
7.3

 
(7.7
)
 
.6

 
(.2
)
 
—

 
—

 
—

 
(.2
)
Collateralized mortgage obligations
5.8

 
—

 
—

 
(.2
)
 
—

 
—

 
5.6

 
(.2
)
Total trading securities
13.7

 
(7.7
)
 
.6

 
(.8
)
 
26.7

 
(.6
)
 
31.9

 
(.8
)
Liabilities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(734.0
)
 
(141.0
)
 
32.1

 
—

 
—

 
—

 
(842.9
)
 
32.1

Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
(5.5
)
 
3.4

 
—

 
—

 
—

 
—

 
(2.1
)
 
—

Total liabilities for insurance products
(739.5
)
 
(137.6
)
 
32.1

 
—

 
—

 
—

 
(845.0
)
 
32.1

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 nine months ended September 30, 2013 (dollars in millions):
 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
24.0

 
$
(10.0
)
 
$
—

 
$
—

 
$
14.0

Asset-backed securities
7.6

 
(12.1
)
 
—

 
—

 
(4.5
)
Collateralized debt obligations
6.0

 
(76.5
)
 
—

 
—

 
(70.5
)
Mortgage pass-through securities
—

 
(.2
)
 
—

 
—

 
(.2
)
Collateralized mortgage obligations
—

 
(.1
)
 
—

 
—

 
(.1
)
Total fixed maturities, available for sale
37.6

 
(98.9
)
 
—

 
—

 
(61.3
)
Equity securities - corporate securities
34.7

 
—

 
—

 
—

 
34.7

Trading securities - collateralized debt obligations
—

 
(7.7
)
 
—

 
—

 
(7.7
)
Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(78.2
)
 
1.4

 
(94.2
)
 
30.0

 
(141.0
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
3.4

 
—

 
—

 
3.4

Total liabilities for insurance products
(78.2
)
 
4.8

 
(94.2
)
 
30.0

 
(137.6
)


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 September 30, 2012 (dollars in millions):

 
 
September 30, 2012
 
 
 
 
Beginning balance as of June 30, 2012
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2012
 
Amount of total gains (losses) for the three months ended September 30, 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
 
$
321.0

 
$
14.0

 
$
—

 
$
7.3

 
$
12.5

 
$
(37.5
)
 
$
317.3

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
 
1.5

 
(1.5
)
 
—

 
—

 
—

 
—

 
—

 
—

States and political subdivisions
 
16.0

 
—

 
—

 
—

 
—

 
(16.0
)
 
—

 
—

Asset-backed securities
 
23.0

 
15.0

 
—

 
5.5

 
—

 
(.7
)
 
42.8

 
—

Collateralized debt obligations
 
330.1

 
(6.3
)
 
—

 
8.2

 
—

 
—

 
332.0

 
—

Commercial mortgage-backed securities
 
—

 
—

 
—

 
—

 
2.3

 
—

 
2.3

 
—

Mortgage pass-through securities
 
2.1

 
(.1
)
 
—

 
—

 
—

 
—

 
2.0

 
—

Collateralized mortgage obligations
 
4.5

 
(2.8
)
 
.1

 
1.0

 
44.6

 
(4.3
)
 
43.1

 
—

Total fixed maturities, available for sale
 
698.2

 
18.3

 
.1

 
22.0

 
59.4

 
(58.5
)
 
739.5

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
3.2

 
(1.0
)
 
—

 
—

 
—

 
—

 
2.2

 
—

Venture capital investments
 
58.0

 
—

 
(23.1
)
 
3.2

 
—

 
—

 
38.1

 
(23.1
)
Total equity securities
 
61.2

 
(1.0
)
 
(23.1
)
 
3.2

 
—

 
—

 
40.3

 
(23.1
)
Trading securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
—

 
—

 
—

 
—

 
.6

 
—

 
.6

 
—

States and political subdivisions
 
.5

 
—

 
—

 
—

 
—

 
(.5
)
 
—

 
—

Collateralized debt obligations
 
3.4

 
2.8

 
—

 
.8

 
—

 
—

 
7.0

 
.8

Total trading securities
 
3.9

 
2.8

 
—

 
.8

 
.6

 
(.5
)
 
7.6

 
.8

Liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities for insurance products:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
 
(701.0
)
 
(21.6
)
 
(15.3
)
 
—

 
—

 
—

 
(737.9
)
 
(15.3
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
 
(4.9
)
 
(1.1
)
 
—

 
—

 
—

 
—

 
(6.0
)
 
—

Total liabilities for insurance products
 
(705.9
)
 
(22.7
)
 
(15.3
)
 
—

 
—

 
—

 
(743.9
)
 
(15.3
)

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 September 30, 2012 (dollars in millions):


 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
27.0

 
$
(13.0
)
 
$
—

 
$
—

 
$
14.0

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

 
(1.5
)
 
—

 
—

 
(1.5
)
Asset-backed securities
15.0

 
—

 
—

 
—

 
15.0

Collateralized debt obligations
—

 
(6.3
)
 
—

 
—

 
(6.3
)
Mortgage pass-through securities
—

 
(.1
)
 
—

 
—

 
(.1
)
Collateralized mortgage obligations
11.0

 
(13.8
)
 
—

 
—

 
(2.8
)
Total fixed maturities, available for sale
53.0

 
(34.7
)
 
—

 
—

 
18.3

Equity securities
—

 
(1.0
)
 
—

 
—

 
(1.0
)
Trading securities - collateralized debt obligations
2.8

 
—

 
—

 
—

 
2.8

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(23.5
)
 
.2

 
(9.1
)
 
10.8

 
(21.6
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
—

 
(1.1
)
 
—

 
(1.1
)
Total liabilities for insurance products
(23.5
)
 
.2

 
(10.2
)
 
10.8

 
(22.7
)

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 nine months ended September 30, 2012 (dollars in millions):

 
 
September 30, 2012
 
 
 
 
Beginning balance as of December 31, 2011
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2012
 
Amount of total gains (losses) for the nine months ended September 30, 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

 
$
54.9

 
$
—

 
$
9.4

 
$
67.5

 
$
(92.6
)
 
$
317.3

 
$
—

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

 
(1.6
)
 
—

 
—

 
—

 
—

 
—

 
—

States and political subdivisions
 
2.1

 
—

 
—

 
—

 
—

 
(2.1
)
 
—

 
—

Asset-backed securities
 
79.7

 
11.4

 
(.2
)
 
5.8

 
.5

 
(54.4
)
 
42.8

 
—

Collateralized debt obligations
 
327.3

 
(11.6
)
 
—

 
16.3

 
—

 
—

 
332.0

 
—

Commercial mortgage-backed securities
 
17.3

 
—

 
—

 
.1

 
—

 
(15.1
)
 
2.3

 
—

Mortgage pass-through securities
 
2.2

 
(.2
)
 
—

 
—

 
—

 
—

 
2.0

 
—

Collateralized mortgage obligations
 
124.8

 
30.0

 
(.1
)
 
1.4

 
—

 
(113.0
)
 
43.1

 
—

Total fixed maturities, available for sale
 
833.1

 
82.9

 
(.3
)
 
33.0

 
68.0

 
(277.2
)
 
739.5

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
6.4

 
(1.0
)
 
(3.8
)
 
.6

 
—

 
—

 
2.2

 
(3.8
)
Venture capital investments
 
63.5

 
—

 
(26.0
)
 
.6

 
—

 
—

 
38.1

 
(26.0
)
Total equity securities
 
69.9

 
(1.0
)
 
(29.8
)
 
1.2

 
—

 
—

 
40.3

 
(29.8
)
Trading securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
—

 
—

 
—

 
.1

 
.5

 
—

 
.6

 
.1

States and political subdivisions
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Collateralized debt obligations
 
—

 
7.0

 
—

 
—

 
—

 
—

 
7.0

 
—

Commercial mortgage-backed securities
 
.4

 
—

 
—

 
—

 
—

 
(.4
)
 
—

 
—

Total trading securities
 
.4

 
7.0

 
—

 
.1

 
.5

 
(.4
)
 
7.6

 
.1

Liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities for insurance products:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
 
(666.3
)
 
(49.6
)
 
(22.0
)
 
—

 
—

 
—

 
(737.9
)
 
(22.0
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
 
(3.5
)
 
(2.5
)
 
—

 
—

 
—

 
—

 
(6.0
)
 
—

Total liabilities for insurance products
 
(669.8
)
 
(52.1
)
 
(22.0
)
 
—

 
—

 
—

 
(743.9
)
 
(22.0
)

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 nine months ended September 30, 2012 (dollars in millions):

 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
70.3

 
$
(15.4
)
 
$
—

 
$
—

 
$
54.9

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

 
(1.6
)
 
—

 
—

 
(1.6
)
Asset-backed securities
15.0

 
(3.6
)
 
—

 
—

 
11.4

Collateralized debt obligations
30.1

 
(41.7
)
 
—

 
—

 
(11.6
)
Mortgage pass-through securities
—

 
(.2
)
 
—

 
—

 
(.2
)
Collateralized mortgage obligations
45.3

 
(15.3
)
 
—

 
—

 
30.0

Total fixed maturities, available for sale
160.7

 
(77.8
)
 
—

 
—

 
82.9

Equity securities
—

 
(1.0
)
 
—

 
—

 
(1.0
)
Trading securities - collateralized debt obligations
7.0

 
—

 
—

 
—

 
7.0

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(75.3
)
 
41.9

 
(48.1
)
 
31.9

 
(49.6
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Total liabilities for insurance products
(75.3
)
 
41.9

 
(50.6
)
 
31.9

 
(52.1
)


At September 30, 2013, 90 percent of our Level 3 fixed maturities, available for sale, were investment grade and 40 percent and 55 percent of our Level 3 fixed maturities, available for sale, consisted of collateralized debt obligations and corporate securities, respectively.

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 September 30, 2013 (dollars in millions):

 
Fair value at September 30, 2013
 
Valuation technique(s)
 
Unobservable inputs
 
Range (weighted average)
Assets:
 
 
 
 
 
 
 
Corporate securities (a)
$
241.6

 
Discounted cash flow analysis
 
Discount margins
 
1.85% - 3.05% (2.57%)
Asset-backed securities (b)
29.4

 
Discounted cash flow analysis
 
Discount margins
 
2.45% - 3.55% (3.10%)
Collateralized debt obligations (c)
254.2

 
Discounted cash flow analysis
 
Recoveries
 
57% - 66% (64.5%)
 
 
 
 
 
Constant prepayment rate
 
20%
 
 
 
 
 
Discount margins
 
1.00% - 2.25% (1.48%)
 
 
 
 
 
Annual default rate
 
1.11% - 5.35% (3.10%)
 
 
 
 
 
Portfolio CCC %
 
1.53% - 20.69% (12.58%)
Preferred stock (d)
3.3

 
Market multiples
 
EBITDA multiple
 
7.0
 
 
 
 
 
Revenue multiple
 
1.7
Other assets categorized as Level 3 (e)
186.2

 
Unadjusted third-party price source
 
Not applicable
 
Not applicable
Total
714.7

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest sensitive products (f)
845.0

 
Discounted projected embedded derivatives
 
Projected portfolio yields
 
5.35% - 5.61% (5.55%)
 
 
 
 
 
Discount rates
 
0.00 - 4.33% (2.14%)
 
 
 
 
 
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)
Preferred stock - The significant unobservable inputs used in the fair value measurement of this preferred stock investment 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.
(e)
Other assets categorized as Level 3 - For these assets, there were no adjustments to quoted market prices obtained from third-party pricing sources.
(f)
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.

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 December 31, 2012 (dollars in millions):

 
Fair value at December 31, 2012
 
Valuation technique(s)
 
Unobservable inputs
 
Range (weighted average)
Assets:
 
 
 
 
 
 
 
Corporate securities (a)
$
248.3

 
Discounted cash flow analysis
 
Discount margins
 
1.90% - 3.25% (2.78%)
Asset-backed securities (b)
33.3

 
Discounted cash flow analysis
 
Discount margins
 
2.78% - 3.14% (2.99%)
Collateralized debt obligations (c)
331.4

 
Discounted cash flow analysis
 
Recoveries
 
65% - 66%
 
 
 
 
 
Constant prepayment rate
 
20%
 
 
 
 
 
Discount margins
 
.95% - 8.75% (2.02%)
 
 
 
 
 
Annual default rate
 
.95% - 5.54% (3.01%)
 
 
 
 
 
Portfolio CCC %
 
1.18% - 21.56% (11.99%)
Venture capital investments (d)
2.8

 
Market multiples
 
EBITDA multiple
 
6.8
 
 
 
 
 
Revenue multiple
 
1.5
Other assets categorized as Level 3 (e)
162.4

 
Unadjusted third-party price source
 
Not applicable
 
Not applicable
Total
778.2

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest sensitive products (f)
739.5

 
Discounted projected embedded derivatives
 
Projected portfolio yields
 
5.35% - 5.61% (5.55%)
 
 
 
 
 
Discount rates
 
0.0 - 3.6% (1.4%)
 
 
 
 
 
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)
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.
(e)
Other assets categorized as Level 3 - For these assets, there were no adjustments to quoted market prices obtained from third-party pricing sources.
(f)
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 September 30, 2013 and December 31, 2012, were as follows (dollars in millions):

 
September 30,
2013
 
December 31,
2012
Net unrealized appreciation (depreciation) on fixed maturity securities, available for sale, on which an other-than-temporary impairment loss has been recognized
$
6.6

 
$
9.8

Net unrealized gains on all other investments
1,402.3

 
2,986.5

Adjustment to present value of future profits (a)
(168.8
)
 
(193.0
)
Adjustment to deferred acquisition costs
(249.8
)
 
(452.9
)
Adjustment to insurance liabilities
—

 
(489.8
)
Unrecognized net loss related to deferred compensation plan
(7.2
)
 
(7.9
)
Deferred income tax liabilities
(349.1
)
 
(655.3
)
Accumulated other comprehensive income
$
634.0

 
$
1,197.4

_________
(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 Conseco, Inc., an Indiana corporation (our "Predecessor"), emerged from bankruptcy).
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] 
At September 30, 2013, 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
$
14,839.9

 
$
1,205.3

 
$
(170.4
)
 
$
15,874.8

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
99.5

 
3.3

 
(.3
)
 
102.5

 
—

States and political subdivisions
2,146.6

 
128.5

 
(32.6
)
 
2,242.5

 
—

Asset-backed securities
1,413.0

 
74.9

 
(9.5
)
 
1,478.4

 
—

Collateralized debt obligations
298.2

 
7.9

 
(1.2
)
 
304.9

 
—

Commercial mortgage-backed securities
1,456.5

 
102.4

 
(6.5
)
 
1,552.4

 
—

Mortgage pass-through securities
13.6

 
.7

 
(.1
)
 
14.2

 
—

Collateralized mortgage obligations
1,829.9

 
100.9

 
(2.8
)
 
1,928.0

 
(4.5
)
Total fixed maturities, available for sale
$
22,097.2

 
$
1,623.9

 
$
(223.4
)
 
$
23,497.7

 
$
(4.5
)
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 September 30, 2013, 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
$
206.1

 
$
208.5

Due after one year through five years
1,936.4

 
2,111.8

Due after five years through ten years
4,040.2

 
4,357.1

Due after ten years
10,903.3

 
11,542.4

Subtotal
17,086.0

 
18,219.8

Structured securities
5,011.2

 
5,277.9

Total fixed maturities, available for sale
$
22,097.2

 
$
23,497.7

Available-for-sale Securities [Table Text Block] 
The following table sets forth the net realized investment gains (losses) for the periods indicated (dollars in millions):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Fixed maturity securities, available for sale:
 
 
 
 
 
 
 
Realized gains on sale
$
12.9

 
$
35.1

 
$
40.3

 
$
103.4

Realized losses on sale
(6.4
)
 
(7.5
)
 
(9.8
)
 
(15.3
)
Impairments:
 
 
 
 
 
 
 
Total other-than-temporary impairment losses
(1.6
)
 
—

 
(1.6
)
 
(.9
)
Other-than-temporary impairment losses recognized in accumulated other comprehensive income (loss)
—

 
—

 
—

 
—

Net impairment losses recognized
(1.6
)
 
—

 
(1.6
)
 
(.9
)
Net realized investment gains from fixed maturities
4.9

 
27.6

 
28.9

 
87.2

Equity securities
—

 
—

 
—

 
.1

Commercial mortgage loans
(1.7
)
 
(1.4
)
 
(1.0
)
 
(1.5
)
Impairments of mortgage loans and other investments
(1.3
)
 
(23.1
)
 
(1.9
)
 
(33.6
)
Other
(2.0
)
 
6.0

 
(7.6
)
 
11.7

Net realized investment gains (losses)
$
(.1
)
 
$
9.1

 
$
18.4

 
$
63.9

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 and nine months ended September 30, 2013 and 2012 (dollars in millions):
 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Credit losses on fixed maturity securities, available for sale, beginning of period
$
(1.5
)
 
$
(1.7
)
 
$
(1.6
)
 
$
(2.0
)
Add:  credit losses on other-than-temporary impairments not previously recognized
—

 
—

 
—

 
—

Less:  credit losses on securities sold
.1

 
—

 
.2

 
.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
$
(1.4
)
 
$
(1.7
)
 
$
(1.4
)
 
$
(1.7
)
__________
(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, 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
States and political subdivisions
 
$
48.3

 
$
(1.8
)
 
68.7

 
$
(3.4
)
 
$
117.0

 
$
(5.2
)
Corporate securities
 
338.1

 
(11.2
)
 
174.5

 
(9.0
)
 
512.6

 
(20.2
)
Asset-backed securities
 
41.7

 
(.3
)
 
111.6

 
(4.9
)
 
153.3

 
(5.2
)
Collateralized debt obligations
 
19.4

 
(.4
)
 
32.5

 
(.6
)
 
51.9

 
(1.0
)
Commercial mortgage-backed securities
 
4.9

 
(.1
)
 
6.2

 
(.5
)
 
11.1

 
(.6
)
Mortgage pass-through securities
 
—

 
—

 
1.9

 
—

 
1.9

 
—

Collateralized mortgage obligations
 
27.0

 
(.4
)
 
33.8

 
(.3
)
 
60.8

 
(.7
)
Total fixed maturities, available for sale
 
$
479.4

 
$
(14.2
)
 
$
429.2

 
$
(18.7
)
 
$
908.6

 
$
(32.9
)
Equity securities
 
$
17.8

 
$
(1.6
)
 
$
—

 
$
—

 
$
17.8

 
$
(1.6
)
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 September 30, 2013 (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
 
$
23.1

 
$
(.3
)
 
$
—

 
$
—

 
$
23.1

 
$
(.3
)
States and political subdivisions
 
374.8

 
$
(25.3
)
 
68.0

 
(7.3
)
 
442.8

 
(32.6
)
Corporate securities
 
2,613.4

 
(160.2
)
 
81.3

 
(10.2
)
 
2,694.7

 
(170.4
)
Asset-backed securities
 
339.1

 
(8.6
)
 
42.6

 
(.9
)
 
381.7

 
(9.5
)
Collateralized debt obligations
 
48.7

 
(1.2
)
 
—

 
—

 
48.7

 
(1.2
)
Commercial mortgage-backed securities
 
141.2

 
(6.2
)
 
3.2

 
(.3
)
 
144.4

 
(6.5
)
Mortgage pass-through securities
 
.9

 
—

 
1.7

 
(.1
)
 
2.6

 
(.1
)
Collateralized mortgage obligations
 
229.1

 
(2.8
)
 
2.5

 
—

 
231.6

 
(2.8
)
Total fixed maturities, available for sale
 
$
3,770.3

 
$
(204.6
)
 
$
199.3

 
$
(18.8
)
 
$
3,969.6

 
$
(223.4
)
Equity securities
 
$
42.5

 
$
(4.5
)
 
$
—

 
$
—

 
$
42.5

 
$
(4.5
)
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
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Net income (loss) for basic earnings per share
$
283.0

 
$
(5.0
)
 
$
372.0

 
$
119.8

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

 
—

 
1.6

 
11.1

Net income (loss) for diluted earnings per share
$
283.0

 
$
(5.0
)
 
$
373.6

 
$
130.9

Shares:
 

 
 

 
 

 
 

Weighted average shares outstanding for basic earnings per share
222,876

 
231,481

 
221,819

 
236,555

Effect of dilutive securities on weighted average shares:
 

 
 

 
 

 
 

7% Debentures
839

 
—

 
7,707

 
53,037

Stock options, restricted stock and performance units
2,858

 
—

 
2,699

 
2,639

Warrants
2,774

 
—

 
2,344

 
752

Dilutive potential common shares
6,471

 
—

 
12,750

 
56,428

Weighted average shares outstanding for diluted earnings per share
229,347

 
231,481

 
234,569

 
292,983

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
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
Bankers Life:
 
 
 
 
 
 
 
Insurance policy income:
 
 
 
 
 
 
 
Annuities
$
5.6

 
$
6.8

 
$
22.1

 
$
21.9

Health
323.3

 
335.1

 
990.0

 
1,010.6

Life
78.5

 
74.2

 
232.4

 
209.1

Net investment income (a)
235.4

 
221.6

 
723.7

 
642.1

Fee revenue and other income (a)
5.8

 
4.0

 
13.5

 
10.2

Total Bankers Life revenues
648.6

 
641.7

 
1,981.7

 
1,893.9

Washington National:
 

 
 

 
 

 
 

Insurance policy income:
 

 
 

 
 

 
 

Health
146.9

 
144.2

 
437.8

 
431.2

Life
3.4

 
3.6

 
10.8

 
11.6

Net investment income (a)
51.8

 
50.9

 
155.1

 
151.9

Fee revenue and other income (a)
.3

 
.3

 
.7

 
.8

Total Washington National revenues
202.4

 
199.0

 
604.4

 
595.5

Colonial Penn:
 

 
 

 
 

 
 

Insurance policy income:
 

 
 

 
 

 
 

Health
1.1

 
1.3

 
3.3

 
4.0

Life
57.0

 
53.2

 
169.7

 
158.5

Net investment income (a)
10.2

 
9.9

 
30.0

 
30.1

Fee revenue and other income (a)
.2

 
.2

 
.6

 
.6

Total Colonial Penn revenues
68.5

 
64.6

 
203.6

 
193.2

Other CNO Business:
 

 
 

 
 

 
 

Insurance policy income:
 

 
 

 
 

 
 

Annuities
6.9

 
2.7

 
10.6

 
8.9

Health
5.9

 
6.2

 
18.2

 
19.3

Life
57.5

 
62.9

 
173.7

 
196.2

Net investment income (a)
82.4

 
86.7

 
252.7

 
259.2

Total Other CNO Business revenues
152.7

 
158.5

 
455.2

 
483.6

Corporate operations:
 

 
 

 
 

 
 

Net investment income
11.0

 
19.4

 
25.6

 
49.8

Fee and other income
1.7

 
.7

 
4.9

 
2.0

Total corporate revenues
12.7

 
20.1

 
30.5

 
51.8

Total revenues
1,084.9

 
1,083.9

 
3,275.4

 
3,218.0


(continued on next page)
(continued from previous page)
 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Expenses:
 
 
 
 
 
 
 
Bankers Life:
 
 
 
 
 
 
 
Insurance policy benefits
$
427.3

 
$
434.6

 
$
1,331.9

 
$
1,252.2

Amortization
39.7

 
35.6

 
139.9

 
143.0

Interest expense on investment borrowings
1.8

 
1.3

 
4.9

 
4.1

Other operating costs and expenses
93.5

 
89.6

 
277.5

 
267.4

Total Bankers Life expenses
562.3

 
561.1

 
1,754.2

 
1,666.7

Washington National:
 

 
 

 
 

 
 

Insurance policy benefits
120.2

 
111.1

 
355.8

 
340.5

Amortization
13.2

 
11.2

 
39.9

 
34.7

Interest expense on investment borrowings
.5

 
.7

 
1.5

 
2.2

Other operating costs and expenses
40.4

 
42.1

 
117.9

 
125.6

Total Washington National expenses
174.3

 
165.1

 
515.1

 
503.0

Colonial Penn:
 

 
 

 
 

 
 

Insurance policy benefits
39.8

 
38.3

 
124.0

 
120.0

Amortization
3.7

 
3.5

 
11.1

 
11.1

Other operating costs and expenses
29.2

 
25.4

 
76.9

 
73.9

Total Colonial Penn expenses
72.7

 
67.2

 
212.0

 
205.0

Other CNO Business:
 

 
 

 
 

 
 

Insurance policy benefits
119.8

 
157.1

 
354.8

 
401.0

Amortization
3.2

 
10.5

 
14.7

 
25.1

Interest expense on investment borrowings
4.8

 
5.0

 
14.4

 
15.1

Other operating costs and expenses
18.8

 
39.5

 
59.0

 
96.4

Total Other CNO Business expenses
146.6

 
212.1

 
442.9

 
537.6

Corporate operations:
 

 
 

 
 

 
 

Interest expense on corporate debt
11.7

 
16.3

 
39.9

 
50.4

Interest expense on borrowings of variable interest entities
—

 
5.8

 
—

 
14.5

Interest expense on investment borrowings
—

 
.1

 
.1

 
.4

Other operating costs and expenses
3.3

 
20.9

 
15.6

 
54.5

Total corporate expenses
15.0

 
43.1

 
55.6

 
119.8

Total expenses
970.9

 
1,048.6

 
2,979.8

 
3,032.1

Income (loss) before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes:
 

 
 
 
 

 
 

Bankers Life
86.3

 
80.6

 
227.5

 
227.2

Washington National
28.1

 
33.9

 
89.3

 
92.5

Colonial Penn
(4.2
)
 
(2.6
)
 
(8.4
)
 
(11.8
)
Other CNO Business
6.1

 
(53.6
)
 
12.3

 
(54.0
)
Corporate operations
(2.3
)
 
(23.0
)
 
(25.1
)
 
(68.0
)
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
$
114.0

 
$
35.3

 
$
295.6

 
$
185.9

___________________
(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
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Total segment revenues
$
1,084.9

 
$
1,083.9

 
$
3,275.4

 
$
3,218.0

Net realized investment gains (losses)
(.1
)
 
9.1

 
18.4

 
63.9

Revenues related to certain non-strategic investments and earnings attributable to non-controlling interests
9.0

 
—

 
24.1

 
—

Consolidated revenues
$
1,093.8

 
$
1,093.0

 
$
3,317.9

 
$
3,281.9

 
 
 
 
 
 
 
 
Total segment expenses
$
970.9

 
$
1,048.6

 
$
2,979.8

 
$
3,032.1

Insurance policy benefits - fair value changes in embedded derivative liabilities
(4.9
)
 
4.6

 
(37.0
)
 
10.7

Amortization related to fair value changes in embedded derivative liabilities
1.5

 
(1.6
)
 
13.0

 
(4.0
)
Amortization related to net realized investment gains
.1

 
1.7

 
1.3

 
5.9

Expenses related to certain non-strategic investments and earnings attributable to non-controlling interests
11.8

 
—

 
31.7

 
—

Loss on extinguishment of debt
—

 
198.5

 
65.4

 
199.2

Consolidated expenses
$
979.4

 
$
1,251.8

 
$
3,054.2

 
$
3,243.9

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
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Current tax expense
$
3.4

 
$
2.4

 
$
8.8

 
$
9.1

Deferred tax expense
34.7

 
11.1

 
106.5

 
76.4

Valuation allowance applicable to current year income
(9.8
)
 
(31.8
)
 
(9.8
)
 
(31.8
)
Income tax expense calculated based on estimated annual effective tax rate
28.3

 
(18.3
)
 
105.5

 
53.7

Income tax expense (benefit) on discrete items:
 
 
 
 
 
 
 
Valuation allowance reduction applicable to income in future years and utilization of capital loss carryforwards
(118.0
)
 
(111.2
)
 
(133.5
)
 
(111.2
)
Valuation allowance reduction applicable to the settlement with the IRS regarding the classification of a portion of the cancellation of indebtedness income
(71.8
)
 
—

 
(71.8
)
 
—

Deferred tax benefit related to loss on extinguishment of debt
—

 
(24.3
)
 
(1.4
)
 
(24.3
)
Change in facts regarding deductibility of repurchase premium on 7.0% Debentures
(14.3
)
 
—

 
(14.3
)
 
—

Unfavorable impacts of expected IRS examination adjustments
7.2

 
—

 
7.2

 
—

Total income tax benefit
$
(168.6
)
 
$
(153.8
)
 
$
(108.3
)
 
$
(81.8
)
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] 
A reconciliation of the U.S. statutory corporate tax rate to the estimated annual effective tax rate, before discrete items, reflected in the consolidated statement of operations is as follows:
 

Nine months ended
 
September 30,
 
2013
 
2012
U.S. statutory corporate rate
35.0
 %
 
35.0
 %
Valuation allowance reduction applicable to current year income
(3.5
)
 
(13.8
)
Non-taxable income and nondeductible expenses, net
(.9
)
 
.5

State taxes
1.4

 
1.0

Estimated annual effective tax rate
32.0
 %
 
22.7
 %
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):
 
September 30,
2013
 
December 31,
2012
Deferred tax assets:
 
 
 
Net federal operating loss carryforwards
$
1,244.4

 
$
1,330.2

Net state operating loss carryforwards
16.1

 
16.2

Tax credits
45.7

 
39.2

Capital loss carryforwards
278.6

 
296.2

Deductible temporary differences:


 
 

Insurance liabilities
748.4

 
746.3

Other
56.9

 
86.0

Gross deferred tax assets
2,390.1

 
2,514.1

Deferred tax liabilities:
 

 
 

Investments
(22.2
)
 
(24.1
)
Present value of future profits and deferred acquisition costs
(298.8
)
 
(325.2
)
Accumulated other comprehensive income
(349.1
)
 
(655.3
)
Gross deferred tax liabilities
(670.1
)
 
(1,004.6
)
Net deferred tax assets before valuation allowance
1,720.0

 
1,509.5

Valuation allowance
(554.0
)
 
(766.9
)
Net deferred tax assets
1,166.0

 
742.6

Current income taxes accrued
(30.3
)
 
(25.7
)
Income tax assets, net
$
1,135.7

 
$
716.9

Summary of Valuation Allowance [Table Text Block] 
Changes in our valuation allowance during the three months ended September 30, 2013 are summarized as follows (dollars in millions):

Balance, June 30, 2013
 
$
751.4

Reduction applicable to higher levels of income on projected future taxable income and utilization of capital loss carryforwards
 
(127.8
)
Reduction applicable to the classification of a portion of the CODI as further discussed below
 
(71.8
)
Other items, net
 
2.2

Balance, September 30, 2013
 
$
554.0

Summary of Operating Loss Carryforwards [Table Text Block] 
As of September 30, 2013, we had $3.6 billion of federal NOLs and $.8 billion of capital loss carryforwards. The following table summarizes the expiration dates of our loss carryforwards assuming the IRS does not ultimately agree with the position we have taken with respect to the loss on our investment in CSHI as further described below (dollars in millions):

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

 
 
 
$
—

 
 
 
$
758.2

 
(a)
 
$
758.2

2014
 
—

 
 
 
—

 
 
 
28.6

 
(a)
 
28.6

2016
 
—

 
 
 
—

 
 
 
9.1

 
(a)
 
9.1

2018
 
539.1

 
(a)
 
—

 
 
 
—

 
 
 
539.1

2021
 
29.6

 
 
 
—

 
 
 
—

 
 
 
29.6

2022
 
204.1

 
 
 
—

 
 
 
—

 
 
 
204.1

2023
 
—

 
(a)
 
2,250.8

 
 
 
—

 
 
 
2,250.8

2024
 
—

 
 
 
3.2

 
 
 
—

 
 
 
3.2

2025
 
—

 
 
 
118.6

 
 
 
—

 
 
 
118.6

2027
 
—

 
 
 
216.6

 
 
 
—

 
 
 
216.6

2028
 
—

 
 
 
.5

 
(a)
 
—

 
 
 
.5

2029
 
—

 
 
 
148.9

 
 
 
—

 
 
 
148.9

2032
 
—

 
 
 
44.0

 
 
 
—

 
 
 
44.0

Total
 
$
772.8

 
 
 
$
2,782.6

 
 
 
$
795.9

 
 
 
$
4,351.3

 _________________________
(a)
The allocation of the capital loss carryforwards summarized above assumes the IRS does not ultimately agree with the tax position we have taken with respect to our investment in CSHI, which was worthless when it was transferred to the Independent Trust in 2008. If the IRS ultimately agrees with our tax position of classifying this loss as ordinary, capital loss carryforwards would decrease by $796 million, life NOLs would increase by $660 million and non-life NOLs would increase by $136 million. These amounts reflect the impact of an adjustment we recently made to our previously filed 2008 non-life tax returns to reclassify a capital loss related to our investment in CSHI to an operating loss.
The $796 million decrease to capital loss carryforwards would consist of a reduction of $758 million in 2013, $29 million in 2014 and $9 million in 2016. The $660 million increase to life NOLs would consist of an increase of $742 million in 2023 offset by an $82 million decrease in 2018.
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 September 30, 2013 and December 31, 2012 (dollars in millions):

 
September 30,
2013
 
December 31,
2012
Senior Secured Credit Agreement (as defined below)
$
594.0

 
$
644.6

6.375% Senior Secured Notes due October 2020 (the "6.375% Notes")
275.0

 
275.0

7.0% Debentures
3.5

 
93.0

Unamortized discount on Senior Secured Credit Agreement
(3.9
)
 
(5.0
)
Unamortized discount on 7.0% Debentures
—

 
(3.4
)
Direct corporate obligations
$
868.6

 
$
1,004.2

Schedule of Maturities of Long-term Debt [Table Text Block] 
The scheduled repayment of our direct corporate obligations was as follows at September 30, 2013 (dollars in millions):

Year ending September 30,
 
2014
$
52.1

2015
79.2

2016
79.2

2017
7.8

2018
379.2

Thereafter
275.0

 
$
872.5

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
 
September 30, 2013
$
67.0

 
February 2014
 
Fixed rate – 1.830%
50.0

 
September 2015
 
Variable rate – 0.564%
150.0

 
October 2015
 
Variable rate – 0.532%
100.0

 
November 2015
 
Variable rate – 0.343%
146.0

 
November 2015
 
Fixed rate – 5.300%
100.0

 
December 2015
 
Fixed rate – 4.710%
100.0

 
June 2016
 
Variable rate – 0.619%
75.0

 
June 2016
 
Variable rate – 0.408%
100.0

 
October 2016
 
Variable rate – 0.426%
50.0

 
November 2016
 
Variable rate – 0.530%
50.0

 
November 2016
 
Variable rate – 0.650%
57.7

 
June 2017
 
Variable rate – 0.612%
100.0

 
July 2017
 
Fixed rate – 3.900%
50.0

 
August 2017
 
Variable rate – 0.464%
75.0

 
August 2017
 
Variable rate – 0.412%
100.0

 
October 2017
 
Variable rate – 0.698%
37.0

 
November 2017
 
Fixed rate – 3.750%
50.0

 
January 2018
 
Variable rate – 0.619%
50.0

 
January 2018
 
Variable rate – 0.605%
50.0

 
February 2018
 
Variable rate – 0.575%
22.0

 
February 2018
 
Variable rate – 0.592%
100.0

 
May 2018
 
Variable rate – 0.629%
50.0

 
July 2018
 
Variable rate – 0.734%
50.0

 
August 2018
 
Variable rate – 0.384%
21.8

 
June 2020
 
Fixed rate – 1.960%
27.7

 
March 2023
 
Fixed rate – 2.160%
20.5

 
June 2025
 
Fixed rate – 2.940%
$
1,849.7

 
 
 
 
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, 2012
221,502

 
 
Treasury stock purchased and retired
(7,006
)
 
 
Conversion of 7.0% Debentures
4,739

 
 
Stock options exercised
1,986

 
 
Restricted and performance stock vested
786

 
(a)
Balance, September 30, 2013
222,007

 
 
________
(a)
Such amount was reduced by 347 thousand shares which were tendered to the Company for the payment of federal and state taxes owed on the vesting of restricted and performance stock.
ASSETS AND LIABILITIES SUBJECT TO OFFSETTING DISCLOSURE REQUIREMENTS (Tables)
Offsetting Assets and Liabilities
The following tables summarize information related to call options as of September 30, 2013 and December 31, 2012 (dollars in millions):

 
 
 
 
 
 
 
 
 
Gross amounts not offset in the balance sheet
 
 
 
 
 
Gross amounts of recognized assets
 
Gross amounts offset in the balance sheet
 
Net amounts of assets presented in the balance sheet
 
Financial instruments
 
Cash collateral received
 
Net amount
September 30, 2013:
 
 
 
Call Options
 
$
123.0

 
$
—

 
$
123.0

 
$
—

 
$
—

 
$
123.0

December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
Call Options
 
54.4

 
—

 
54.4

 
—

 
—

 
54.4



Repurchase agreements

As described in the note to the consolidated financial statements entitled "Investment Borrowings", we may enter into agreements under which we sell securities subject to an obligation to repurchase the same securities. These repurchase agreements are accounted for as collateralized financing arrangements and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as investment borrowings in the Company's consolidated balance sheet, while the securities underlying the repurchase agreements remain in the respective investment asset accounts. There is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not currently have any outstanding reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). If the counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. There were no repurchase agreements outstanding at September 30, 2013 and December 31, 2012.
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):

 
Nine months ended
 
September 30,
 
2013
 
2012
Cash flows from operating activities:
 
 
 
Net income
$
372.0

 
$
119.8

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

Amortization and depreciation
241.1

 
235.2

Income taxes
(112.6
)
 
(87.3
)
Insurance liabilities
298.8

 
242.8

Accrual and amortization of investment income
(189.4
)
 
(123.1
)
Deferral of policy acquisition costs
(161.8
)
 
(141.4
)
Net realized investment gains
(18.4
)
 
(63.9
)
Loss on extinguishment of debt
65.4

 
199.2

Other
(23.0
)
 
43.3

Net cash provided by operating activities
$
472.1

 
$
424.6

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):

 
Nine months ended
 
September 30,
 
2013
 
2012
Stock options, restricted stock and performance units
$
10.8

 
$
10.7

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):

 
September 30, 2013
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
1,080.7

 
$
—

 
$
1,080.7

Notes receivable of VIEs held by insurance subsidiaries
—

 
(108.4
)
 
(108.4
)
Cash and cash equivalents held by variable interest entities
85.1

 
—

 
85.1

Accrued investment income
2.1

 
—

 
2.1

Income tax assets, net
5.9

 
(2.5
)
 
3.4

Other assets
22.5

 
(1.5
)
 
21.0

Total assets
$
1,196.3

 
$
(112.4
)
 
$
1,083.9

Liabilities:
 

 
 

 
 

Other liabilities
$
59.6

 
$
(4.6
)
 
$
55.0

Borrowings related to variable interest entities
1,035.1

 
—

 
1,035.1

Notes payable of VIEs held by insurance subsidiaries
112.5

 
(112.5
)
 
—

Total liabilities
$
1,207.2

 
$
(117.1
)
 
$
1,090.1


 
December 31, 2012
 
VIEs
 
Eliminations
 
Net effect on
consolidated
balance sheet
Assets:
 
 
 
 
 
Investments held by variable interest entities
$
814.3

 
$
—

 
$
814.3

Notes receivable of VIEs held by insurance subsidiaries
—

 
(78.5
)
 
(78.5
)
Cash and cash equivalents held by variable interest entities
54.2

 
—

 
54.2

Accrued investment income
1.8

 
—

 
1.8

Income tax assets, net
3.3

 
(2.6
)
 
.7

Other assets
9.6

 
—

 
9.6

Total assets
$
883.2

 
$
(81.1
)
 
$
802.1

Liabilities:
 

 
 

 
 

Other liabilities
$
39.9

 
$
(3.3
)
 
$
36.6

Borrowings related to variable interest entities
767.0

 
—

 
767.0

Notes payable of VIEs held by insurance subsidiaries
82.5

 
(82.5
)
 
—

Total liabilities
$
889.4

 
$
(85.8
)
 
$
803.6

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 September 30, 2013, 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
$
7.0

 
$
7.0

Due after one year through five years
368.3

 
369.6

Due after five years through ten years
706.1

 
704.1

Total
$
1,081.4

 
$
1,080.7

FAIR VALUE MEASUREMENTS (TABLES)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] 
The fair value measurements for our financial instruments disclosed at fair value on a recurring basis are as follows (dollars in millions):

 
September 30, 2013
 
Quoted prices in active markets for identical assets or liabilities
(Level 1)
 
Significant other observable inputs
 (Level 2)
 
Significant unobservable inputs 
(Level 3)
 
Total estimated fair value
 
Total carrying amount
Assets:
 
 
 
 
 
 
 
 
 
Mortgage loans
$
—

 
$
—

 
$
1,685.9

 
$
1,685.9

 
$
1,635.1

Policy loans
—

 
—

 
267.5

 
267.5

 
267.5

Other invested assets:
 
 
 
 
 
 
 
 
 
Company-owned life insurance
—

 
133.2

 
—

 
133.2

 
133.2

Hedge funds
—

 
17.4

 
—

 
17.4

 
17.4

Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
Unrestricted
255.5

 
121.1

 
—

 
376.6

 
376.7

Held by variable interest entities
85.1

 
—

 
—

 
85.1

 
85.1

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

 
—

 
11,936.1

 
11,936.1

 
11,936.1

Investment borrowings
—

 
1,899.0

 
—

 
1,899.0

 
1,850.2

Borrowings related to variable interest entities
—

 
1,019.9

 
—

 
1,019.9

 
1,035.1

Notes payable – direct corporate obligations
—

 
886.5

 
—

 
886.5

 
868.6


 
December 31, 2012
 
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
Assets:
 
 
 
 
 
 
 
 
 
Mortgage loans
$
—

 
$
—

 
$
1,682.1

 
$
1,682.1

 
$
1,573.2

Policy loans
—

 
—

 
272.0

 
272.0

 
272.0

Other invested assets:
 
 
 
 
 
 
 
 
 
Company-owned life insurance
—

 
123.0

 
—

 
123.0

 
123.0

Hedge funds
—

 
16.1

 
—

 
16.1

 
16.1

Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
Unrestricted
432.3

 
150.2

 
—

 
582.5

 
582.5

Held by variable interest entities
54.2

 
—

 
—

 
54.2

 
54.2

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

 
—

 
12,153.7

 
12,153.7

 
12,153.7

Investment borrowings
—

 
1,702.0

 
—

 
1,702.0

 
1,650.8

Borrowings related to variable interest entities
—

 
752.2

 
—

 
752.2

 
767.0

Notes payable – direct corporate obligations
—

 
1,100.3

 
—

 
1,100.3

 
1,004.2



____________________
(a)
The estimated fair value of insurance liabilities for interest-sensitive products was approximately equal to its carrying value at September 30, 2013 and December 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 financial instruments carried at fair value on a recurring basis at September 30, 2013 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
$
—

 
$
15,517.5

 
$
357.3

 
$
15,874.8

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

 
102.5

 
—

 
102.5

States and political subdivisions
—

 
2,242.5

 
—

 
2,242.5

Asset-backed securities
—

 
1,441.9

 
36.5

 
1,478.4

Collateralized debt obligations
—

 
44.8

 
260.1

 
304.9

Commercial mortgage-backed securities
—

 
1,552.4

 
—

 
1,552.4

Mortgage pass-through securities
—

 
12.5

 
1.7

 
14.2

Collateralized mortgage obligations
—

 
1,927.9

 
.1

 
1,928.0

Total fixed maturities, available for sale
—

 
22,842.0

 
655.7

 
23,497.7

Equity securities:
 
 
 
 
 
 
 
Corporate securities
90.0

 
144.9

 
23.8

 
258.7

Venture capital investments
—

 
—

 
3.3

 
3.3

Total equity securities
90.0

 
144.9

 
27.1

 
262.0

Trading securities:
 

 
 

 
 

 
 

Corporate securities
—

 
43.9

 
—

 
43.9

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

 
4.6

 
—

 
4.6

States and political subdivisions
—

 
14.3

 
—

 
14.3

Asset-backed securities
—

 
1.1

 
26.3

 
27.4

Commercial mortgage-backed securities
—

 
123.4

 
—

 
123.4

Mortgage pass-through securities
—

 
.1

 
—

 
.1

Collateralized mortgage obligations
—

 
25.8

 
5.6

 
31.4

Equity securities
1.5

 
—

 
—

 
1.5

Total trading securities
1.5

 
213.2

 
31.9

 
246.6

Investments held by variable interest entities - corporate securities
—

 
1,080.7

 
—

 
1,080.7

Other invested assets - derivatives
1.5

 
123.0

 
—

 
124.5

Assets held in separate accounts
—

 
13.3

 
—

 
13.3

Total assets carried at fair value by category
$
93.0

 
$
24,417.1

 
$
714.7

 
$
25,224.8

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

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

 
$
—

 
$
842.9

 
$
842.9

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

 
—

 
2.1

 
2.1

Total liabilities for insurance products
—

 
—

 
845.0

 
845.0

Total liabilities carried at fair value by category
$
—

 
$
—

 
$
845.0

 
$
845.0


The categorization of fair value measurements, by input level, for our financial instruments carried at fair value on a recurring basis at December 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
$
—

 
$
16,498.6

 
$
355.5

 
$
16,854.1

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

 
99.5

 
—

 
99.5

States and political subdivisions
—

 
2,115.0

 
13.1

 
2,128.1

Debt securities issued by foreign governments
—

 
.8

 
—

 
.8

Asset-backed securities
—

 
1,416.9

 
44.0

 
1,460.9

Collateralized debt obligations
—

 
—

 
324.0

 
324.0

Commercial mortgage-backed securities
—

 
1,471.2

 
6.2

 
1,477.4

Mortgage pass-through securities
—

 
19.9

 
1.9

 
21.8

Collateralized mortgage obligations
—

 
2,230.6

 
16.9

 
2,247.5

Total fixed maturities, available for sale
—

 
23,852.5

 
761.6

 
24,614.1

Equity securities:
 
 
 
 
 
 
 
Corporate securities
49.7

 
118.8

 
.1

 
168.6

Venture capital investments
—

 
—

 
2.8

 
2.8

Total equity securities
49.7

 
118.8

 
2.9

 
171.4

Trading securities:
 

 
 

 
 

 
 

Corporate securities
—

 
46.6

 
—

 
46.6

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

 
4.8

 
—

 
4.8

States and political subdivisions
—

 
14.0

 
.6

 
14.6

Asset-backed securities
—

 
50.1

 
—

 
50.1

Collateralized debt obligations
—

 
—

 
7.3

 
7.3

Commercial mortgage-backed securities
—

 
93.3

 
—

 
93.3

Mortgage pass-through securities
—

 
.1

 
—

 
.1

Collateralized mortgage obligations
—

 
41.2

 
5.8

 
47.0

Equity securities
.9

 
1.5

 
—

 
2.4

Total trading securities
.9

 
251.6

 
13.7

 
266.2

Investments held by variable interest entities - corporate securities
—

 
814.3

 
—

 
814.3

Other invested assets - derivatives
—

 
54.4

 
—

 
54.4

Assets held in separate accounts
—

 
14.9

 
—

 
14.9

Total assets carried at fair value by category
$
50.6

 
$
25,106.5

 
$
778.2

 
$
25,935.3

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

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

 
$
—

 
$
734.0

 
$
734.0

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

 
—

 
5.5

 
5.5

Total liabilities for insurance products
—

 
—

 
739.5

 
739.5

Total liabilities carried at fair value by category
$
—

 
$
—

 
$
739.5

 
$
739.5


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 September 30, 2013 (dollars in millions):

 
September 30, 2013
 
 
 
Beginning balance as of June 30, 2013
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2013
 
Amount of total gains (losses) for the three months ended September 30, 2013 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
$
393.1

 
$
(2.1
)
 
$
—

 
$
1.4

 
$
12.9

 
$
(48.0
)
 
$
357.3

 
$
—

Asset-backed securities
45.4

 
(7.2
)
 
—

 
.3

 
—

 
(2.0
)
 
36.5

 
—

Collateralized debt obligations
287.6

 
(18.0
)
 
—

 
.6

 
—

 
(10.1
)
 
260.1

 
—

Commercial mortgage-backed securities
3.3

 
—

 
—

 
—

 
—

 
(3.3
)
 
—

 
—

Mortgage pass-through securities
1.8

 
(.1
)
 
—

 
—

 
—

 
—

 
1.7

 
—

Collateralized mortgage obligations
.1

 
—

 
—

 
—

 
—

 
—

 
.1

 
—

Total fixed maturities, available for sale
731.3

 
(27.4
)
 
—

 
2.3

 
12.9

 
(63.4
)
 
655.7

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
.1

 
.7

 
—

 
—

 
23.0

 
—

 
23.8

 
—

Venture capital investments
3.1

 
—

 
—

 
.2

 
—

 
—

 
3.3

 
—

Total equity securities
3.2

 
.7

 
—

 
.2

 
23.0

 
—

 
27.1

 
—

Trading securities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Asset-backed securities
—

 
—

 
—

 
.6

 
25.7

 
—

 
26.3

 
.6

Collateralized mortgage obligations
10.4

 
—

 
—

 
—

 
—

 
(4.8
)
 
5.6

 
—

Total trading securities
10.4

 
—

 
—

 
.6

 
25.7

 
(4.8
)
 
31.9

 
.6

Liabilities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(796.3
)
 
(45.2
)
 
(1.4
)
 
—

 
—

 
—

 
(842.9
)
 
(1.4
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
(2.6
)
 
.5

 
—

 
—

 
—

 
—

 
(2.1
)
 
—

Total liabilities for insurance products
(798.9
)
 
(44.7
)
 
(1.4
)
 
—

 
—

 
—

 
(845.0
)
 
(1.4
)

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 September 30, 2013 (dollars in millions):

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

 
$
(2.1
)
 
$
—

 
$
—

 
$
(2.1
)
Asset-backed securities
—

 
(7.2
)
 
—

 
—

 
(7.2
)
Collateralized debt obligations
5.9

 
(23.9
)
 
—

 
—

 
(18.0
)
Mortgage pass-through securities
—

 
(.1
)
 
—

 
—

 
(.1
)
Total fixed maturities, available for sale
5.9

 
(33.3
)
 
—

 
—

 
(27.4
)
Equity securities - corporate securities
.7

 
—

 
—

 
—

 
.7

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(25.4
)
 
—

 
(30.0
)
 
10.2

 
(45.2
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
.5

 
—

 
—

 
.5

Total liabilities for insurance products
(25.4
)
 
.5

 
(30.0
)
 
10.2

 
(44.7
)



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 nine months ended September 30, 2013 (dollars in millions):
 
September 30, 2013
 
 
 
Beginning balance as of December 31, 2012
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2013
 
Amount of total gains (losses) for the nine months ended September 30, 2013 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
$
355.5

 
$
14.0

 
$
(.3
)
 
$
(12.8
)
 
$
13.2

 
$
(12.3
)
 
$
357.3

 
$
—

States and political subdivisions
13.1

 
—

 
—

 
—

 
—

 
(13.1
)
 
—

 
—

Asset-backed securities
44.0

 
(4.5
)
 
.1

 
(3.1
)
 
—

 
—

 
36.5

 
—

Collateralized debt obligations
324.0

 
(70.5
)
 
.1

 
6.5

 
—

 
—

 
260.1

 
—

Commercial mortgage-backed securities
6.2

 
—

 
—

 
—

 
—

 
(6.2
)
 
—

 
—

Mortgage pass-through securities
1.9

 
(.2
)
 
—

 
—

 
—

 
—

 
1.7

 
—

Collateralized mortgage obligations
16.9

 
(.1
)
 
—

 
—

 
—

 
(16.7
)
 
.1

 
—

Total fixed maturities, available for sale
761.6

 
(61.3
)
 
(.1
)
 
(9.4
)
 
13.2

 
(48.3
)
 
655.7

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
.1

 
34.7

 
—

 
(11.0
)
 
—

 
—

 
23.8

 
—

Venture capital investments
2.8

 
—

 
—

 
.5

 
—

 
—

 
3.3

 
—

Total equity securities
2.9

 
34.7

 
—

 
(10.5
)
 
—

 
—

 
27.1

 
—

Trading securities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

States and political subdivisions
.6

 
—

 
—

 
—

 
—

 
(.6
)
 
—

 
—

Asset-backed securities
—

 
—

 
—

 
(.4
)
 
26.7

 
—

 
26.3

 
(.4
)
Collateralized debt obligations
7.3

 
(7.7
)
 
.6

 
(.2
)
 
—

 
—

 
—

 
(.2
)
Collateralized mortgage obligations
5.8

 
—

 
—

 
(.2
)
 
—

 
—

 
5.6

 
(.2
)
Total trading securities
13.7

 
(7.7
)
 
.6

 
(.8
)
 
26.7

 
(.6
)
 
31.9

 
(.8
)
Liabilities:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Liabilities for insurance products:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(734.0
)
 
(141.0
)
 
32.1

 
—

 
—

 
—

 
(842.9
)
 
32.1

Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
(5.5
)
 
3.4

 
—

 
—

 
—

 
—

 
(2.1
)
 
—

Total liabilities for insurance products
(739.5
)
 
(137.6
)
 
32.1

 
—

 
—

 
—

 
(845.0
)
 
32.1

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 nine months ended September 30, 2013 (dollars in millions):
 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
24.0

 
$
(10.0
)
 
$
—

 
$
—

 
$
14.0

Asset-backed securities
7.6

 
(12.1
)
 
—

 
—

 
(4.5
)
Collateralized debt obligations
6.0

 
(76.5
)
 
—

 
—

 
(70.5
)
Mortgage pass-through securities
—

 
(.2
)
 
—

 
—

 
(.2
)
Collateralized mortgage obligations
—

 
(.1
)
 
—

 
—

 
(.1
)
Total fixed maturities, available for sale
37.6

 
(98.9
)
 
—

 
—

 
(61.3
)
Equity securities - corporate securities
34.7

 
—

 
—

 
—

 
34.7

Trading securities - collateralized debt obligations
—

 
(7.7
)
 
—

 
—

 
(7.7
)
Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(78.2
)
 
1.4

 
(94.2
)
 
30.0

 
(141.0
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
3.4

 
—

 
—

 
3.4

Total liabilities for insurance products
(78.2
)
 
4.8

 
(94.2
)
 
30.0

 
(137.6
)


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 September 30, 2012 (dollars in millions):

 
 
September 30, 2012
 
 
 
 
Beginning balance as of June 30, 2012
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2012
 
Amount of total gains (losses) for the three months ended September 30, 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
 
$
321.0

 
$
14.0

 
$
—

 
$
7.3

 
$
12.5

 
$
(37.5
)
 
$
317.3

 
$
—

United States Treasury securities and obligations of United States government corporations and agencies
 
1.5

 
(1.5
)
 
—

 
—

 
—

 
—

 
—

 
—

States and political subdivisions
 
16.0

 
—

 
—

 
—

 
—

 
(16.0
)
 
—

 
—

Asset-backed securities
 
23.0

 
15.0

 
—

 
5.5

 
—

 
(.7
)
 
42.8

 
—

Collateralized debt obligations
 
330.1

 
(6.3
)
 
—

 
8.2

 
—

 
—

 
332.0

 
—

Commercial mortgage-backed securities
 
—

 
—

 
—

 
—

 
2.3

 
—

 
2.3

 
—

Mortgage pass-through securities
 
2.1

 
(.1
)
 
—

 
—

 
—

 
—

 
2.0

 
—

Collateralized mortgage obligations
 
4.5

 
(2.8
)
 
.1

 
1.0

 
44.6

 
(4.3
)
 
43.1

 
—

Total fixed maturities, available for sale
 
698.2

 
18.3

 
.1

 
22.0

 
59.4

 
(58.5
)
 
739.5

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
3.2

 
(1.0
)
 
—

 
—

 
—

 
—

 
2.2

 
—

Venture capital investments
 
58.0

 
—

 
(23.1
)
 
3.2

 
—

 
—

 
38.1

 
(23.1
)
Total equity securities
 
61.2

 
(1.0
)
 
(23.1
)
 
3.2

 
—

 
—

 
40.3

 
(23.1
)
Trading securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
—

 
—

 
—

 
—

 
.6

 
—

 
.6

 
—

States and political subdivisions
 
.5

 
—

 
—

 
—

 
—

 
(.5
)
 
—

 
—

Collateralized debt obligations
 
3.4

 
2.8

 
—

 
.8

 
—

 
—

 
7.0

 
.8

Total trading securities
 
3.9

 
2.8

 
—

 
.8

 
.6

 
(.5
)
 
7.6

 
.8

Liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities for insurance products:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
 
(701.0
)
 
(21.6
)
 
(15.3
)
 
—

 
—

 
—

 
(737.9
)
 
(15.3
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
 
(4.9
)
 
(1.1
)
 
—

 
—

 
—

 
—

 
(6.0
)
 
—

Total liabilities for insurance products
 
(705.9
)
 
(22.7
)
 
(15.3
)
 
—

 
—

 
—

 
(743.9
)
 
(15.3
)

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 September 30, 2012 (dollars in millions):


 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
27.0

 
$
(13.0
)
 
$
—

 
$
—

 
$
14.0

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

 
(1.5
)
 
—

 
—

 
(1.5
)
Asset-backed securities
15.0

 
—

 
—

 
—

 
15.0

Collateralized debt obligations
—

 
(6.3
)
 
—

 
—

 
(6.3
)
Mortgage pass-through securities
—

 
(.1
)
 
—

 
—

 
(.1
)
Collateralized mortgage obligations
11.0

 
(13.8
)
 
—

 
—

 
(2.8
)
Total fixed maturities, available for sale
53.0

 
(34.7
)
 
—

 
—

 
18.3

Equity securities
—

 
(1.0
)
 
—

 
—

 
(1.0
)
Trading securities - collateralized debt obligations
2.8

 
—

 
—

 
—

 
2.8

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(23.5
)
 
.2

 
(9.1
)
 
10.8

 
(21.6
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
—

 
(1.1
)
 
—

 
(1.1
)
Total liabilities for insurance products
(23.5
)
 
.2

 
(10.2
)
 
10.8

 
(22.7
)

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 nine months ended September 30, 2012 (dollars in millions):

 
 
September 30, 2012
 
 
 
 
Beginning balance as of December 31, 2011
 
Purchases, sales, issuances and settlements, net (b)
 
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 (a)
 
Ending balance as of September 30, 2012
 
Amount of total gains (losses) for the nine months ended September 30, 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

 
$
54.9

 
$
—

 
$
9.4

 
$
67.5

 
$
(92.6
)
 
$
317.3

 
$
—

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

 
(1.6
)
 
—

 
—

 
—

 
—

 
—

 
—

States and political subdivisions
 
2.1

 
—

 
—

 
—

 
—

 
(2.1
)
 
—

 
—

Asset-backed securities
 
79.7

 
11.4

 
(.2
)
 
5.8

 
.5

 
(54.4
)
 
42.8

 
—

Collateralized debt obligations
 
327.3

 
(11.6
)
 
—

 
16.3

 
—

 
—

 
332.0

 
—

Commercial mortgage-backed securities
 
17.3

 
—

 
—

 
.1

 
—

 
(15.1
)
 
2.3

 
—

Mortgage pass-through securities
 
2.2

 
(.2
)
 
—

 
—

 
—

 
—

 
2.0

 
—

Collateralized mortgage obligations
 
124.8

 
30.0

 
(.1
)
 
1.4

 
—

 
(113.0
)
 
43.1

 
—

Total fixed maturities, available for sale
 
833.1

 
82.9

 
(.3
)
 
33.0

 
68.0

 
(277.2
)
 
739.5

 
—

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
6.4

 
(1.0
)
 
(3.8
)
 
.6

 
—

 
—

 
2.2

 
(3.8
)
Venture capital investments
 
63.5

 
—

 
(26.0
)
 
.6

 
—

 
—

 
38.1

 
(26.0
)
Total equity securities
 
69.9

 
(1.0
)
 
(29.8
)
 
1.2

 
—

 
—

 
40.3

 
(29.8
)
Trading securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
—

 
—

 
—

 
.1

 
.5

 
—

 
.6

 
.1

States and political subdivisions
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Collateralized debt obligations
 
—

 
7.0

 
—

 
—

 
—

 
—

 
7.0

 
—

Commercial mortgage-backed securities
 
.4

 
—

 
—

 
—

 
—

 
(.4
)
 
—

 
—

Total trading securities
 
.4

 
7.0

 
—

 
.1

 
.5

 
(.4
)
 
7.6

 
.1

Liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities for insurance products:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-sensitive products - embedded derivatives associated with fixed index annuity products
 
(666.3
)
 
(49.6
)
 
(22.0
)
 
—

 
—

 
—

 
(737.9
)
 
(22.0
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
 
(3.5
)
 
(2.5
)
 
—

 
—

 
—

 
—

 
(6.0
)
 
—

Total liabilities for insurance products
 
(669.8
)
 
(52.1
)
 
(22.0
)
 
—

 
—

 
—

 
(743.9
)
 
(22.0
)

____________
(a)
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 which utilized observable inputs at the end of the period, whereas a broker quote was used as of the beginning of the period.
(b)
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 nine months ended September 30, 2012 (dollars in millions):

 
Purchases
 
Sales
 
Issuances
 
Settlements
 
Purchases, sales, issuances and settlements, net
Assets:
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale:
 
 
 
 
 
 
 
 
 
Corporate securities
$
70.3

 
$
(15.4
)
 
$
—

 
$
—

 
$
54.9

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

 
(1.6
)
 
—

 
—

 
(1.6
)
Asset-backed securities
15.0

 
(3.6
)
 
—

 
—

 
11.4

Collateralized debt obligations
30.1

 
(41.7
)
 
—

 
—

 
(11.6
)
Mortgage pass-through securities
—

 
(.2
)
 
—

 
—

 
(.2
)
Collateralized mortgage obligations
45.3

 
(15.3
)
 
—

 
—

 
30.0

Total fixed maturities, available for sale
160.7

 
(77.8
)
 
—

 
—

 
82.9

Equity securities
—

 
(1.0
)
 
—

 
—

 
(1.0
)
Trading securities - collateralized debt obligations
7.0

 
—

 
—

 
—

 
7.0

Liabilities:
 
 
 
 
 
 
 
 
 
Liabilities for insurance products:
 
 
 
 
 
 
 
 
 
Interest-sensitive products - embedded derivatives associated with fixed index annuity products
(75.3
)
 
41.9

 
(48.1
)
 
31.9

 
(49.6
)
Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement
—

 
—

 
(2.5
)
 
—

 
(2.5
)
Total liabilities for insurance products
(75.3
)
 
41.9

 
(50.6
)
 
31.9

 
(52.1
)
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 September 30, 2013 (dollars in millions):

 
Fair value at September 30, 2013
 
Valuation technique(s)
 
Unobservable inputs
 
Range (weighted average)
Assets:
 
 
 
 
 
 
 
Corporate securities (a)
$
241.6

 
Discounted cash flow analysis
 
Discount margins
 
1.85% - 3.05% (2.57%)
Asset-backed securities (b)
29.4

 
Discounted cash flow analysis
 
Discount margins
 
2.45% - 3.55% (3.10%)
Collateralized debt obligations (c)
254.2

 
Discounted cash flow analysis
 
Recoveries
 
57% - 66% (64.5%)
 
 
 
 
 
Constant prepayment rate
 
20%
 
 
 
 
 
Discount margins
 
1.00% - 2.25% (1.48%)
 
 
 
 
 
Annual default rate
 
1.11% - 5.35% (3.10%)
 
 
 
 
 
Portfolio CCC %
 
1.53% - 20.69% (12.58%)
Preferred stock (d)
3.3

 
Market multiples
 
EBITDA multiple
 
7.0
 
 
 
 
 
Revenue multiple
 
1.7
Other assets categorized as Level 3 (e)
186.2

 
Unadjusted third-party price source
 
Not applicable
 
Not applicable
Total
714.7

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest sensitive products (f)
845.0

 
Discounted projected embedded derivatives
 
Projected portfolio yields
 
5.35% - 5.61% (5.55%)
 
 
 
 
 
Discount rates
 
0.00 - 4.33% (2.14%)
 
 
 
 
 
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)
Preferred stock - The significant unobservable inputs used in the fair value measurement of this preferred stock investment 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.
(e)
Other assets categorized as Level 3 - For these assets, there were no adjustments to quoted market prices obtained from third-party pricing sources.
(f)
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.

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 December 31, 2012 (dollars in millions):

 
Fair value at December 31, 2012
 
Valuation technique(s)
 
Unobservable inputs
 
Range (weighted average)
Assets:
 
 
 
 
 
 
 
Corporate securities (a)
$
248.3

 
Discounted cash flow analysis
 
Discount margins
 
1.90% - 3.25% (2.78%)
Asset-backed securities (b)
33.3

 
Discounted cash flow analysis
 
Discount margins
 
2.78% - 3.14% (2.99%)
Collateralized debt obligations (c)
331.4

 
Discounted cash flow analysis
 
Recoveries
 
65% - 66%
 
 
 
 
 
Constant prepayment rate
 
20%
 
 
 
 
 
Discount margins
 
.95% - 8.75% (2.02%)
 
 
 
 
 
Annual default rate
 
.95% - 5.54% (3.01%)
 
 
 
 
 
Portfolio CCC %
 
1.18% - 21.56% (11.99%)
Venture capital investments (d)
2.8

 
Market multiples
 
EBITDA multiple
 
6.8
 
 
 
 
 
Revenue multiple
 
1.5
Other assets categorized as Level 3 (e)
162.4

 
Unadjusted third-party price source
 
Not applicable
 
Not applicable
Total
778.2

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Interest sensitive products (f)
739.5

 
Discounted projected embedded derivatives
 
Projected portfolio yields
 
5.35% - 5.61% (5.55%)
 
 
 
 
 
Discount rates
 
0.0 - 3.6% (1.4%)
 
 
 
 
 
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)
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.
(e)
Other assets categorized as Level 3 - For these assets, there were no adjustments to quoted market prices obtained from third-party pricing sources.
(f)
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.
OUT-OF-PERIOD ADJUSTMENT (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Sep. 30, 2013
Mar. 31, 2013
Out of Period Adjustment [Member]
 
 
Out of Period Adjustment[Line Items]
 
 
Out of Period Adjustment, Effect on Insurance Policy Benefits
 
$ 6.7 
Out of Period Adjustment, Increase in Amortization Expense
 
2.5 
Out of Period Adjustment, Increase (Decrease) in Tax Expense
 
(3.2)
Out Of Period Adjustment, Effect on Net Income
 
(6.0)
Adjustment to Earnings Per Diluted Share
$ 0.01 
$ 0.02 
Internal Revenue Service (IRS) [Member]
 
 
Out of Period Adjustment[Line Items]
 
 
Income Tax Examination, Increase (Decrease) in Liability From Prior Year, Due To Net Corrections Taken In Previous Returns
2.2 
 
Internal Revenue Service (IRS) [Member] |
Out of Period Adjustment [Member]
 
 
Out of Period Adjustment[Line Items]
 
 
Income Tax Examination, Increase (Decrease) in Liability From Prior Year, Due To Net Corrections Taken In Previous Returns
$ (2.2)
 
INVESTMENTS - AVAILABLE FOR SALE SECURITIES (DETAILS) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
Trading securities
$ 246.6 
$ 266.2 
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
6.6 
9.8 
Net unrealized gains (losses) on all other investments
1,402.3 
2,986.5 
Adjustment to present value of future profits (a)
(168.8)1
(193.0)1
Adjustment to deferred acquisition costs
(249.8)
(452.9)
Adjustment to insurance liabilities
0 
(489.8)
Unrecognized net loss related to deferred compensation plan
(7.2)
(7.9)
Deferred income tax liabilities
(349.1)
(655.3)
Accumulated other comprehensive income
634.0 
1,197.4 
Reduction to Present Value of Future Profits Due to Unrealized Gains That Would Result in Premium Deficiency if Unrealized Gains Were Realized
(146.9)
 
Reduction to Deferred Acquisition Costs Due to Unrealized Gains That Would Result in Premium Deficiency if Unrealized Gains Were Realized
(103.0)
 
Increase to Deferred Tax Assets Due to Unrealized Gains That Would Result in Premium Deficiency if Unrealized Gains Were Realized
90.0 
 
Available-for-sale Debt Securities Amortized Cost Basis
22,097.2 
 
Available-for-sale Securities, Gross Unrealized Gains
1,623.9 
 
Available-for-sale Securities, Gross Unrealized Losses
(223.4)
 
Available-for-sale Securities, Fair Value Disclosure
23,497.7 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
(4.5)
 
Available-for-sale Securities, Debt Maturities [Abstract]
 
 
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost Basis
206.1 
 
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value
208.5 
 
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis
1,936.4 
 
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value
2,111.8 
 
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis
4,040.2 
 
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value
4,357.1 
 
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis
10,903.3 
 
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value
11,542.4 
 
Available For Sale Securities, Debt Maturities, Amortized Cost, Subtotal
17,086.0 
 
Available For Sale Securities, Debt Maturities, Fair Value, Subtotal
18,219.8 
 
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis
5,011.2 
 
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value
5,277.9 
 
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis
22,097.2 
21,626.8 
Available-for-sale Securities, Debt Securities
23,497.7 
24,614.1 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
3,770.3 
479.4 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(204.6)
(14.2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
199.3 
429.2 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(18.8)
(18.7)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
3,969.6 
908.6 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(223.4)
(32.9)
Corporate securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
14,839.9 
 
Available-for-sale Securities, Gross Unrealized Gains
1,205.3 
 
Available-for-sale Securities, Gross Unrealized Losses
(170.4)
 
Available-for-sale Securities, Fair Value Disclosure
15,874.8 
 
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
2,613.4 
338.1 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(160.2)
(11.2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
81.3 
174.5 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(10.2)
(9.0)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
2,694.7 
512.6 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(170.4)
(20.2)
US Treasury and Government [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
99.5 
 
Available-for-sale Securities, Gross Unrealized Gains
3.3 
 
Available-for-sale Securities, Gross Unrealized Losses
(0.3)
 
Available-for-sale Securities, Fair Value Disclosure
102.5 
 
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
23.1 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(0.3)
 
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
23.1 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(0.3)
 
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
2,146.6 
 
Available-for-sale Securities, Gross Unrealized Gains
128.5 
 
Available-for-sale Securities, Gross Unrealized Losses
(32.6)
 
Available-for-sale Securities, Fair Value Disclosure
2,242.5 
 
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
374.8 
48.3 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(25.3)
(1.8)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
68.0 
68.7 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(7.3)
(3.4)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
442.8 
117.0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(32.6)
(5.2)
Asset-backed Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
1,413.0 
 
Available-for-sale Securities, Gross Unrealized Gains
74.9 
 
Available-for-sale Securities, Gross Unrealized Losses
(9.5)
 
Available-for-sale Securities, Fair Value Disclosure
1,478.4 
 
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
339.1 
41.7 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(8.6)
(0.3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
42.6 
111.6 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(0.9)
(4.9)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
381.7 
153.3 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(9.5)
(5.2)
Collateralized Debt Obligations [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
298.2 
 
Available-for-sale Securities, Gross Unrealized Gains
7.9 
 
Available-for-sale Securities, Gross Unrealized Losses
(1.2)
 
Available-for-sale Securities, Fair Value Disclosure
304.9 
 
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
48.7 
19.4 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(1.2)
(0.4)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
0 
32.5 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
0 
(0.6)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
48.7 
51.9 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(1.2)
(1.0)
Commercial Mortgage Backed Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
1,456.5 
 
Available-for-sale Securities, Gross Unrealized Gains
102.4 
 
Available-for-sale Securities, Gross Unrealized Losses
(6.5)
 
Available-for-sale Securities, Fair Value Disclosure
1,552.4 
 
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
141.2 
4.9 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(6.2)
(0.1)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
3.2 
6.2 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(0.3)
(0.5)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
144.4 
11.1 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(6.5)
(0.6)
Mortgage Pass Through Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
13.6 
 
Available-for-sale Securities, Gross Unrealized Gains
0.7 
 
Available-for-sale Securities, Gross Unrealized Losses
(0.1)
 
Available-for-sale Securities, Fair Value Disclosure
14.2 
 
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
0.9 
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
0 
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
1.7 
1.9 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
(0.1)
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
2.6 
1.9 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(0.1)
0 
Collateralized Mortgage Backed Securities [Member]
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Available-for-sale Debt Securities Amortized Cost Basis
1,829.9 
 
Available-for-sale Securities, Gross Unrealized Gains
100.9 
 
Available-for-sale Securities, Gross Unrealized Losses
(2.8)
 
Available-for-sale Securities, Fair Value Disclosure
1,928.0 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
(4.5)
 
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
 
 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value
229.1 
27.0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(2.8)
(0.4)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
2.5 
33.8 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
0 
(0.3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
231.6 
60.8 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
(2.8)
(0.7)
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
42.5 
17.8 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses
(4.5)
(1.6)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
0 
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses
0 
0 
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
42.5 
17.8 
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses
$ (4.5)
$ (1.6)
INVESTMENTS - SCHEDULE OF OTHER THAN TEMPORARY IMPAIRMENT (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
 
 
 
 
Other-than-temporary impairments included in accumulated other comprehensive income
$ 4.5 
 
$ 4.5 
 
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
(1.5)
(1.7)
(1.6)
(2.0)
Add: credit losses on other-than-temporary impairments not previously recognized
0 
0 
0 
0 
Less: credit losses on securities sold
0.1 
0 
0.2 
0.3 
Less: credit losses on securities impaired due to intent to sell
0 1
0 1
0 1
0 1
Add: credit losses on previously impaired securities
0 
0 
0 
0 
Less: increases in cash flows expected on previously impaired securities
0 
0 
0 
0 
Credit losses on fixed maturity securities, available for sale, end of period
$ (1.4)
$ (1.7)
$ (1.4)
$ (1.7)
INVESTMENTS - REALIZED GAINS (LOSSES) (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Available-for-sale Securities, Gross Realized Gains
$ 12.9 
$ 35.1 
$ 40.3 
$ 103.4 
Net realized investment gains (losses)
(0.1)
9.1 
18.4 
63.9 
Gain (Loss) on Investments, Excluding Other-than-temporary Impairments and Changes in Fair Value of Fixed Maturity Investments with Embedded Derivatives
 
 
30.7 
89.0 
Sales of investments
 
 
1,697.0 
1,852.5 
Increase (decrease) on embedded derivative related to change in fair value of certain fixed maturity investments
 
 
(8.8)
9.4 
Total other-than-temporary impairment losses
(2.9)
(23.1)
(3.5)
(34.5)
Aggregate amortized cost of fixed maturity securities in default or considered nonperforming
0 
 
0 
 
Carrying value of nonperforming fixed maturity securities
0.5 
 
0.5 
 
Value of sold fixed maturity investments
 
 
387.9 
 
Gross investment losses from sale of fixed maturity investments, before tax
(6.4)
(7.5)
(9.8)
(15.3)
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
(1.6)
0 
(1.6)
(0.9)
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Income (Loss), before Tax, Including Portion Attributable to Noncontrolling Interest
0 
0 
0 
0 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
(2.9)
(23.1)
(3.5)
(34.5)
Total Fixed Maturities, Available For Sale [Member]
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net realized investment gains (losses)
4.9 
27.6 
28.9 
87.2 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
(1.6)
0 
(1.6)
(0.9)
Equity Securities [Member]
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net realized investment gains (losses)
0 
0 
0 
0.1 
Mortgage Loan [Member]
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net realized investment gains (losses)
(1.7)
(1.4)
(1.0)
(1.5)
Impairments of Mortgage Loans And Other Investments [Member]
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net realized investment gains (losses)
(1.3)
(23.1)
(1.9)
(33.6)
Other Securities [Member]
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Net realized investment gains (losses)
$ (2.0)
$ 6.0 
$ (7.6)
$ 11.7 
EARNINGS PER SHARE (SCHEDULE OF BASIC AND DILUTED EPS CALCULATIONS) (DETAILS) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Convertible Subordinated Debt [Member]
Jul. 31, 2013
Convertible Subordinated Debt [Member]
Dec. 31, 2009
Convertible Subordinated Debt [Member]
Earnings Per Share [Line Items]
 
 
 
 
 
 
 
Anti-Dilutive Interest Expense on Convertible Debt Excluded from Earnings Per Share
 
$ 3,700,000 
 
 
 
 
 
Debenture interest rate
7.00% 
 
7.00% 
 
7.00% 
 
 
Par Value of Each Convertible Senior Debenture
 
 
 
 
 
1,000 
 
Conversion Price for Convertible Senior Debentures
 
 
 
 
 
 
$ 5.49 
Conversion Rate for Convertible Senior Debentures
 
 
 
 
 
184.3127 
182.1494 
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
 
 
 
 
 
 
 
Net income
283,000,000 
(5,000,000)
372,000,000 
119,800,000 
 
 
 
Add: interest expense on 7.0% Convertible Senior Debentures due 2016 (the “7.0% Debentures”), net of income taxes
0 
0 
1,600,000 
11,100,000 
 
 
 
Net income for diluted earnings per share
$ 283,000,000 
$ (5,000,000)
$ 373,600,000 
$ 130,900,000 
 
 
 
Shares:
 
 
 
 
 
 
 
Weighted average shares outstanding for basic earnings per share
222,876,000 
231,481,000 
221,819,000 
236,555,000 
 
 
 
Effect of dilutive securities on weighted average shares:
 
 
 
 
 
 
 
7% Debentures
839,000 
0 
7,707,000 
53,037,000 
 
 
 
Stock options, restricted stock and performance units
2,858,000 
0 
2,699,000 
2,639,000 
 
 
 
Warrants
2,774,000 
0 
2,344,000 
752,000 
 
 
 
Dilutive potential common shares
6,471,000 
0 
12,750,000 
56,428,000 
 
 
 
Weighted average shares outstanding for diluted earnings per share
229,347,000 
231,481,000 
234,569,000 
292,983,000 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
 
56,651,000 
 
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share Related to Convertible Debt, Amount
 
52,366,000 
 
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share Related to Share-based Compensation, Amount
 
2,968,000 
 
 
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share Related to Warrants, Amount
 
1,317,000 
 
 
 
 
 
BUSINESS SEGMENTS (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Revenues:
 
 
 
 
Fee revenue and other income
$ 8.1 
$ 5.2 
$ 21.0 
$ 13.6 
Revenues
1,084.9 
1,083.9 
3,275.4 
3,218.0 
Benefits and expenses:
 
 
 
 
Insurance policy benefits
702.2 
745.7 
2,129.5 
2,124.4 
Other operating costs and expenses
190.0 
217.5 
559.4 
617.8 
Total expenses
970.9 
1,048.6 
2,979.8 
3,032.1 
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
114.0 
35.3 
295.6 
185.9 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
 
 
Total segment revenues
1,084.9 
1,083.9 
3,275.4 
3,218.0 
Net realized investment gains (losses)
(0.1)
9.1 
18.4 
63.9 
Revenues related to certain non-strategic investments and earnings attributable to non-controlling interests
9.0 
0 
24.1 
0 
Consolidated revenues
1,093.8 
1,093.0 
3,317.9 
3,281.9 
Total segment expenses
970.9 
1,048.6 
2,979.8 
3,032.1 
Insurance policy benefits - fair value changes in embedded derivative liabilities
(4.9)
4.6 
(37.0)
10.7 
Amortization related to fair value changes in embedded derivative liabilities
1.5 
(1.6)
13.0 
(4.0)
Amortization related to net realized investment gains (losses)
0.1 
1.7 
1.3 
5.9 
Expenses related to certain non-strategic investments and earnings attributable to non-controlling interests
11.8 
0 
31.7 
0 
Loss on extinguishment of debt
0 
198.5 
65.4 
199.2 
Consolidated expenses
979.4 
1,251.8 
3,054.2 
3,243.9 
Bankers Life [Member]
 
 
 
 
Revenues:
 
 
 
 
Annuities
5.6 
6.8 
22.1 
21.9 
Health
323.3 
335.1 
990.0 
1,010.6 
Life
78.5 
74.2 
232.4 
209.1 
Net investment income
235.4 1
221.6 1
723.7 1
642.1 1
Fee revenue and other income
5.8 1
4.0 1
13.5 1
10.2 1
Revenues
648.6 
641.7 
1,981.7 
1,893.9 
Benefits and expenses:
 
 
 
 
Insurance policy benefits
427.3 
434.6 
1,331.9 
1,252.2 
Amortization
39.7 
35.6 
139.9 
143.0 
Interest expense on investment borrowings
1.8 
1.3 
4.9 
4.1 
Other operating costs and expenses
93.5 
89.6 
277.5 
267.4 
Total expenses
562.3 
561.1 
1,754.2 
1,666.7 
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
86.3 
80.6 
227.5 
227.2 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
 
 
Total segment revenues
648.6 
641.7 
1,981.7 
1,893.9 
Total segment expenses
562.3 
561.1 
1,754.2 
1,666.7 
Washington National [Member]
 
 
 
 
Revenues:
 
 
 
 
Health
146.9 
144.2 
437.8 
431.2 
Life
3.4 
3.6 
10.8 
11.6 
Net investment income
51.8 1
50.9 1
155.1 1
151.9 1
Fee revenue and other income
0.3 1
0.3 1
0.7 1
0.8 1
Revenues
202.4 
199.0 
604.4 
595.5 
Benefits and expenses:
 
 
 
 
Insurance policy benefits
120.2 
111.1 
355.8 
340.5 
Amortization
13.2 
11.2 
39.9 
34.7 
Interest expense on investment borrowings
0.5 
0.7 
1.5 
2.2 
Other operating costs and expenses
40.4 
42.1 
117.9 
125.6 
Total expenses
174.3 
165.1 
515.1 
503.0 
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
28.1 
33.9 
89.3 
92.5 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
 
 
Total segment revenues
202.4 
199.0 
604.4 
595.5 
Total segment expenses
174.3 
165.1 
515.1 
503.0 
Colonial Penn [Member]
 
 
 
 
Revenues:
 
 
 
 
Health
1.1 
1.3 
3.3 
4.0 
Life
57.0 
53.2 
169.7 
158.5 
Net investment income
10.2 1
9.9 1
30.0 1
30.1 1
Fee revenue and other income
0.2 1
0.2 1
0.6 1
0.6 1
Revenues
68.5 
64.6 
203.6 
193.2 
Benefits and expenses:
 
 
 
 
Insurance policy benefits
39.8 
38.3 
124.0 
120.0 
Amortization
3.7 
3.5 
11.1 
11.1 
Other operating costs and expenses
29.2 
25.4 
76.9 
73.9 
Total expenses
72.7 
67.2 
212.0 
205.0 
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
(4.2)
(2.6)
(8.4)
(11.8)
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
 
 
Total segment revenues
68.5 
64.6 
203.6 
193.2 
Total segment expenses
72.7 
67.2 
212.0 
205.0 
Other CNO Business [Member]
 
 
 
 
Revenues:
 
 
 
 
Annuities
6.9 
2.7 
10.6 
8.9 
Health
5.9 
6.2 
18.2 
19.3 
Life
57.5 
62.9 
173.7 
196.2 
Net investment income
82.4 1
86.7 1
252.7 1
259.2 1
Revenues
152.7 
158.5 
455.2 
483.6 
Benefits and expenses:
 
 
 
 
Insurance policy benefits
119.8 
157.1 
354.8 
401.0 
Amortization
3.2 
10.5 
14.7 
25.1 
Interest expense on investment borrowings
4.8 
5.0 
14.4 
15.1 
Other operating costs and expenses
18.8 
39.5 
59.0 
96.4 
Total expenses
146.6 
212.1 
442.9 
537.6 
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
6.1 
(53.6)
12.3 
(54.0)
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
 
 
Total segment revenues
152.7 
158.5 
455.2 
483.6 
Total segment expenses
146.6 
212.1 
442.9 
537.6 
Corporate Operations [Member]
 
 
 
 
Revenues:
 
 
 
 
Net investment income
11.0 
19.4 
25.6 
49.8 
Fee revenue and other income
1.7 
0.7 
4.9 
2.0 
Revenues
12.7 
20.1 
30.5 
51.8 
Benefits and expenses:
 
 
 
 
Interest expense on investment borrowings
0 
0.1 
0.1 
0.4 
Interest expense on corporate debt
11.7 
16.3 
39.9 
50.4 
Interest expense on borrowings of variable interest entities
0 
5.8 
0 
14.5 
Other operating costs and expenses
3.3 
20.9 
15.6 
54.5 
Total expenses
15.0 
43.1 
55.6 
119.8 
Income before net realized investment gains (losses), fair value changes in embedded derivative liabilities (net of related amortization), equity in earnings of certain non-strategic investments and earnings attributable to non-controlling interests, loss on extinguishment of debt and income taxes
(2.3)
(23.0)
(25.1)
(68.0)
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
 
 
 
 
Total segment revenues
12.7 
20.1 
30.5 
51.8 
Total segment expenses
15.0 
43.1 
55.6 
119.8 
Loss on extinguishment of debt
$ 0 
$ (198.5)
$ (65.4)
$ (199.2)
ACCOUNTING FOR DERIVATIVES (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
$ 3.4 
$ (3.0)
$ 24.0 
$ (6.7)
 
Fix Maturity Securities That Contain Embedded Derivatives Classified as Trading Securities
181.5 
 
181.5 
 
196.6 
Equity Swap [Member]
 
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
Other Derivatives Not Designated as Hedging Instruments Assets at Fair Value
123.0 
 
123.0 
 
54.4 
Equity Swap [Member] |
Investment Income [Member]
 
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
 
102.8 
37.5 
 
Embedded Derivative Financial Instruments [Member]
 
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value
842.9 
 
842.9 
 
734.0 
Embedded Derivative Associated With Modified Coinsurance Agreement [Member]
 
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value
$ 2.1 
 
$ 2.1 
 
$ 5.5 
REINSURANCE (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
 
 
Ceded Premiums Written
$ 51.1 
$ 48.0 
$ 158.2 
$ 164.5 
Reinsurance Effect on Claims and Benefits Incurred, Amount Ceded
51.9 
56.4 
144.6 
172.2 
Assumed Premiums Written
4.0 
15.9 
33.1 
54.7 
Coventry Health Care Marketing and Quota Share Agreements [Member]
 
 
 
 
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
 
 
 
 
Assumed Premiums Written
$ 0 
$ 11.4 
$ 19.7 
$ 39.9 
INCOME TAXES INCOME TAXES - COMPONENTS OF INCOME TAX EXPENSE (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Income tax expense (benefit):
 
 
 
 
Current tax expense
$ 3.4 
$ 2.4 
$ 8.8 
$ 9.1 
Deferred tax expense
34.7 
11.1 
106.5 
76.4 
Valuation allowance applicable to current year income
(9.8)
(31.8)
(9.8)
(31.8)
Income tax expense calculated based on estimated annual effective tax rate
28.3 
(18.3)
105.5 
53.7 
Valuation allowance reduction applicable to income in future years and utilization of capital loss carryforwards
(118.0)
(111.2)
(133.5)
(111.2)
Valuation allowance reduction applicable to the settlement with the IRS regarding the classification of a portion of the cancellation of indebtedness income
(71.8)
0 
(71.8)
0 
Deferred tax benefit related to loss on extinguishment of debt
0 
(24.3)
(1.4)
(24.3)
Change in facts regarding deductibility of repurchase premium on 7.0% Debentures
(14.3)
0 
(14.3)
0 
Unfavorable impacts of expected IRS examination adjustments
7.2 
0 
7.2 
0 
Total income tax benefit
$ (168.6)
$ (153.8)
$ (108.3)
$ (81.8)
INCOME TAXES INCOME TAXES - RECONCILIATION OF EFFECTIVE TAX RATE (Details)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
 
 
U.S. statutory corporate rate
35.00% 
35.00% 
Valuation allowance reduction applicable to current year income
(3.50%)
(13.80%)
Non-taxable income and nondeductible expenses, net
(0.90%)
0.50% 
State taxes
1.40% 
1.00% 
Estimated annual effective tax rate
32.00% 
22.70% 
INCOME TAXES INCOME TAXES - INCOME TAX ASSETS AND LIABILITIES (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Components of Deferred Tax Assets [Abstract]
 
 
Net federal operating loss carryforwards
$ 1,244.4 
$ 1,330.2 
Net state operating loss carryforwards
16.1 
16.2 
Tax credits
45.7 
39.2 
Capital loss carryforwards
278.6 
296.2 
Insurance liabilities
748.4 
746.3 
Other
56.9 
86.0 
Gross deferred tax assets
2,390.1 
2,514.1 
Components of Deferred Tax Liabilities [Abstract]
 
 
Investments
(22.2)
(24.1)
Present value of future profits and deferred acquisition costs
(298.8)
(325.2)
Accumulated other comprehensive income
(349.1)
(655.3)
Gross deferred tax liabilities
(670.1)
(1,004.6)
Net deferred tax assets before valuation allowance
1,720.0 
1,509.5 
Valuation allowance
(554.0)
(766.9)
Net deferred tax assets
1,166.0 
742.6 
Current income taxes accrued
(30.3)
(25.7)
Income tax assets, net
$ 1,135.7 
$ 716.9 
INCOME TAXES INCOME TAXES - CHANGE IN VALUATION ALLOWANCE (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
 
Valuation allowance amount, beginning balance
$ 751.4 
 
 
 
Reduction applicable to higher levels of income on projected future taxable income and utilization of capital loss carryforwards
(127.8)
 
 
 
Reduction applicable to the classification of a portion of the CODI as further discussed below
(71.8)
0 
(71.8)
0 
Other items, net
2.2 
 
 
 
Valuation allowance amount, ending balance
$ 554.0 
 
$ 554.0 
 
INCOME TAXES INCOME TAXES - LOSS CARRYFORWARDS (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
$ 795.9 
 
$ 795.9 
 
Total loss carryforwards
4,351.3 
 
4,351.3 
 
Valuation allowance reduction applicable to the settlement with the IRS regarding the classification of a portion of the cancellation of indebtedness income
(71.8)
0 
(71.8)
0 
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
772.8 
 
772.8 
 
Decrease in net life operating loss carryforwards if tax position is accepted by IRS
 
 
660 
 
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
2,782.6 
 
2,782.6 
 
Decrease in net life operating loss carryforwards if tax position is accepted by IRS
 
 
136 
 
Carryforward Expiration 2013 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2013 
 
Total loss carryforwards
758.2 
 
758.2 
 
Carryforward Expiration 2013 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2013 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2014 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2014 
 
Total loss carryforwards
28.6 
 
28.6 
 
Carryforward Expiration 2014 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2014 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2016 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2016 
 
Total loss carryforwards
9.1 
 
9.1 
 
Carryforward Expiration 2016 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2016 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2018 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2018 
 
Total loss carryforwards
539.1 
 
539.1 
 
Carryforward Expiration 2018 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
539.1 
 
539.1 
 
Decrease in net life operating loss carryforwards if tax position is accepted by IRS
 
 
(82)
 
Carryforward Expiration 2018 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2021 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2021 
 
Total loss carryforwards
29.6 
 
29.6 
 
Carryforward Expiration 2021 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
29.6 
 
29.6 
 
Carryforward Expiration 2021 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2022 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2022 
 
Total loss carryforwards
204.1 
 
204.1 
 
Carryforward Expiration 2022 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
204.1 
 
204.1 
 
Carryforward Expiration 2022 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2023 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2023 
 
Total loss carryforwards
2,250.8 
 
2,250.8 
 
Carryforward Expiration 2023 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Decrease in net life operating loss carryforwards if tax position is accepted by IRS
 
 
742 
 
Carryforward Expiration 2023 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
2,250.8 
 
2,250.8 
 
Carryforward Expiration 2024 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2024 
 
Total loss carryforwards
3.2 
 
3.2 
 
Carryforward Expiration 2024 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2024 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
3.2 
 
3.2 
 
Carryforward Expiration 2025 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2025 
 
Total loss carryforwards
118.6 
 
118.6 
 
Carryforward Expiration 2025 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2025 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
118.6 
 
118.6 
 
Carryforward Expiration 2027 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2027 
 
Total loss carryforwards
216.6 
 
216.6 
 
Carryforward Expiration 2027 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2027 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
216.6 
 
216.6 
 
Carryforward Expiration 2028 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2028 
 
Total loss carryforwards
0.5 
 
0.5 
 
Carryforward Expiration 2028 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2028 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0.5 
 
0.5 
 
Carryforward Expiration 2029 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2029 
 
Total loss carryforwards
148.9 
 
148.9 
 
Carryforward Expiration 2029 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2029 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
148.9 
 
148.9 
 
Carryforward Expiration 2032 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Year of expiration
 
 
2032 
 
Total loss carryforwards
44.0 
 
44.0 
 
Carryforward Expiration 2032 [Member] |
Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
0 
 
0 
 
Carryforward Expiration 2032 [Member] |
Non Life Insurance Companies [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
44.0 
 
44.0 
 
Capital Loss Carryforward [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
795.9 
 
795.9 
 
Decrease in capital loss carryforwards if tax position is accepted by IRS in 2016
 
 
(796)
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2013 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
758.2 
 
758.2 
 
Decrease in capital loss carryforwards if tax position is accepted by IRS in 2016
 
 
(758)
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2014 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
28.6 
 
28.6 
 
Decrease in capital loss carryforwards if tax position is accepted by IRS in 2016
 
 
(29)
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2016 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
9.1 
 
9.1 
 
Decrease in capital loss carryforwards if tax position is accepted by IRS in 2016
 
 
(9)
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2018 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2021 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2022 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2023 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2024 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2025 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2027 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2028 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2029 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
0 
 
0 
 
Capital Loss Carryforward [Member] |
Carryforward Expiration 2032 [Member]
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Capital loss carryforwards
$ 0 
 
$ 0 
 
INCOME TAXES INCOME TAXES - NARRATIVE (Details) (USD $)
1 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended
Jul. 31, 2006
Sep. 30, 2013
Sep. 30, 2012
Jun. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2008
Dec. 31, 2012
Dec. 31, 2013
Scenario, Forecast [Member]
Dec. 31, 2013
Scenario, Forecast [Member]
Sep. 30, 2013
Internal Revenue Service (IRS) [Member]
Jul. 31, 2006
Life Insurance Companies [Member]
Sep. 30, 2013
Life Insurance Companies [Member]
Jul. 31, 2006
Non Life Insurance Companies [Member]
Sep. 30, 2013
Non Life Insurance Companies [Member]
Valuation Allowance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
 
 
$ 198,500,000 
 
 
$ 198,500,000 
 
 
 
 
 
 
 
 
 
Net deferred tax assets
 
1,166,000,000 
 
 
1,166,000,000 
 
 
742,600,000 
 
 
 
 
 
 
 
Reduction in deferred tax valuation allowance
 
197,400,000 
 
 
 
 
 
 
 
200,600,000 
 
 
 
 
 
Change valuation allowance for deferred tax assets due to an increase in taxable income
 
9,800,000 
 
 
 
 
 
 
3,200,000 
13,000,000 
 
 
 
 
 
Valuation Allowance, Deferred Tax Asset, Change In Amount Due To Increase In Taxable Income In Future Years
 
(118,000,000)
(111,200,000)
 
(133,500,000)
(111,200,000)
 
 
 
 
 
 
(50,000,000)
 
(68,000,000)
Assumed growth rate for the next five years, included in deferred tax valuation analysis
 
3.00% 
 
 
3.00% 
 
 
 
 
 
 
 
 
 
 
Normalized average annual taxable income for last three years
 
 
 
 
360,000,000 
 
 
 
 
 
 
 
 
 
 
Normalized average annual taxable income for last three years in prior projection
 
 
 
 
293,000,000 
 
 
 
 
 
 
 
 
 
 
Loss limitation based on income of life insurance company (percent)
 
35.00% 
 
 
35.00% 
 
 
 
 
 
 
 
 
 
 
Loss limitation based on loss of non-life entities (percent)
 
35.00% 
 
 
35.00% 
 
 
 
 
 
 
 
 
 
 
Debenture interest rate
 
7.00% 
 
 
7.00% 
 
 
 
 
 
 
 
 
 
 
Federal long term tax exempt rate (percent)
 
3.28% 
 
 
3.28% 
 
 
 
 
 
 
 
 
 
 
Ownership change threshold restricting NOL usage (percent)
 
50.00% 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
Net operating loss carryforwards
 
 
 
 
 
 
 
 
 
 
3,600,000,000 
 
772,800,000 
 
2,782,600,000 
Capital loss carryforwards
 
795,900,000 
 
 
795,900,000 
 
 
 
 
 
 
 
 
 
 
Net state operating loss carryforwards
 
16,100,000 
 
 
16,100,000 
 
 
16,200,000 
 
 
 
 
 
 
 
Amount of tax losses on investment in Conseco Finance Corp
 
 
 
 
 
 
 
 
 
 
 
2,100,000,000 
 
3,800,000,000 
 
Cancellation of debt income realized
2,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of classification of net operating loss carryforward depending on Internal Revenue Service resolution, value
 
631,000,000 
 
 
631,000,000 
 
 
 
 
 
 
 
 
 
 
Effect of classification of net operating loss carryforward based on Internal Revenue Service resolution, expected to be treated as a net operating loss reduction, value
 
315,000,000 
 
 
315,000,000 
 
 
 
 
 
 
 
 
 
 
Reduction applicable to the classification of a portion of the CODI as further discussed below
 
(71,800,000)
0 
 
(71,800,000)
0 
 
 
 
 
 
 
 
 
 
Loss on investment in Senior Health
 
 
 
 
 
 
878,000,000 
 
 
 
 
 
 
 
 
Change in deferred tax asset allowance amount due to classifying loss as ordinary
 
 
 
 
180,000,000 
 
 
 
 
 
 
 
 
 
 
Tax benefit expected to be realized on repurchase premium paid to repurchase convertible debentures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14,300,000 
Income Tax Examination, Increase (Decrease) in Liability from Prior Year
 
 
 
 
 
 
 
 
 
 
7,200,000 
 
 
 
 
Income Tax Examination, Increase (Decrease) in Liability From Prior Year Due To Deductions in CODI Benefit
 
 
 
 
 
 
 
 
 
 
3,100,000 
 
 
 
 
Income Tax Examination, Increase (Decrease) in Liability From Prior Year, Due To Uncertain Tax Positions
 
 
 
 
 
 
 
 
 
 
1,900,000 
 
 
 
 
Income Tax Examination, Increase (Decrease) in Liability From Prior Year, Due To Net Corrections Taken In Previous Returns
 
 
 
 
 
 
 
 
 
 
2,200,000 
 
 
 
 
Reduction in valuation allowance due to utilization of capital loss carryforwards
 
 
 
$ 15,500,000 
 
 
 
 
 
 
 
 
 
 
 
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS (SCHEDULE OF DIRECT CORPORATE OBLIGATIONS) (DETAILS) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
Debenture interest rate
7.00% 
 
Debt Instruments [Abstract]
 
 
Direct corporate obligations
$ 868.6 
$ 1,004.2 
Senior Secured Credit Agreement [Member]
 
 
Debt Instruments [Abstract]
 
 
Direct corporate obligations
594.0 
644.6 
Unamortized discount
(3.9)
(5.0)
Senior Secured Note 6.375% [Member]
 
 
Debt Instrument [Line Items]
 
 
Debenture interest rate
6.375% 
 
Debt Instruments [Abstract]
 
 
Direct corporate obligations
275.0 
275.0 
Convertible Subordinated Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Debenture interest rate
7.00% 
 
Debt Instruments [Abstract]
 
 
Direct corporate obligations
3.5 
93.0 
Unamortized discount
$ 0 
$ (3.4)
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS (DETAILS) (USD $)
3 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
May 20, 2013
Dec. 31, 2012
Sep. 30, 2013
Senior Secured Credit Agreement [Member]
Dec. 31, 2012
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Senior Secured Note 6.375% [Member]
Dec. 31, 2012
Senior Secured Note 6.375% [Member]
Sep. 30, 2013
Convertible Subordinated Debt [Member]
Jul. 31, 2013
Convertible Subordinated Debt [Member]
May 31, 2013
Convertible Subordinated Debt [Member]
Dec. 31, 2012
Convertible Subordinated Debt [Member]
Dec. 31, 2009
Convertible Subordinated Debt [Member]
Sep. 30, 2013
Senior Notes [Member]
Senior Secured Note 6.375% [Member]
Sep. 30, 2013
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Notes Payable, Other Payables [Member]
Convertible Subordinated Debt [Member]
Mar. 28, 2013
Notes Payable, Other Payables [Member]
Convertible Subordinated Debt [Member]
Sep. 30, 2013
Maximum [Member]
Senior Notes [Member]
Senior Secured Note 6.375% [Member]
Sep. 28, 2012
Maximum [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Maximum [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Minimum [Member]
Senior Notes [Member]
Senior Secured Note 6.375% [Member]
Sep. 30, 2013
Minimum [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Minimum [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Minimum [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Term Loan Facility, Six-Year [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Term Loan Facility, Four-Year [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Revolving Credit Facility [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Revolving Credit Facility [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Revolving Credit Facility [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Uncommitted Subfacility [Member]
Maximum [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Letter of Credit [Member]
Maximum [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Eurodollar Rate [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Eurodollar Rate [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Eurodollar Rate [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Eurodollar Rate [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Base Rate [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Base Rate [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Base Rate [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Base Rate [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Base Rate [Member]
Revolving Credit Facility [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Base Rate [Member]
Revolving Credit Facility [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Eurodollar Floor [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Eurodollar Floor [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Eurodollar Floor [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Eurodollar Floor [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Eurodollar Floor [Member]
Revolving Credit Facility [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Base Rate Floor [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Base Rate Floor [Member]
Term Loan Facility, Six-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
May 20, 2013
Base Rate Floor [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 28, 2012
Base Rate Floor [Member]
Term Loan Facility, Four-Year [Member]
Notes Payable to Banks [Member]
Senior Secured Credit Agreement [Member]
Sep. 30, 2013
Common stock and additional paid-in capital
Sep. 30, 2012
Common stock and additional paid-in capital
Mar. 28, 2013
Repayment of Debt [Member]
Convertible Subordinated Debt [Member]
Feb. 8, 2013
Repayment of Debt [Member]
Convertible Subordinated Debt [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Repurchased Face Amount
 
 
 
 
 
 
 
 
 
 
 
 
$ 4,500,000 
 
 
 
 
 
 
$ 63,800,000 
$ 59,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes Payable
868,600,000 
 
868,600,000 
 
 
1,004,200,000 
594,000,000 
644,600,000 
275,000,000 
275,000,000 
3,500,000 
 
 
93,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
394,000,000 
425,000,000 
 
200,000,000 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
5,000,000 
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Annual Amortization Percentage of Loan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Annual Amortization Percentage of Loan in First and Second Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Annual Amortization Percentage of Loan in Third and Fourth Year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Increase, Additional Borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.00% 
 
 
 
2.75% 
3.75% 
2.25% 
3.25% 
1.75% 
2.75% 
1.25% 
2.25% 
2.00% 
2.50% 
 
 
 
 
3.50% 
 
 
 
 
 
 
 
 
Debt Instrument, Variable Interest Rate, Floor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
1.25% 
0.75% 
1.00% 
 
2.25% 
2.25% 
2.00% 
2.00% 
 
 
 
 
Debt Instrument, Interest Rate at Period End
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.75% 
 
 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Terms, Mandatory Prepayments, Percentage of Net Cash Proceeds from Asset Sales and Casualty Events
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Terms, Mandatory Prepayments, Percentage of Net Cash Proceeds Received for Restricted Subsidiaries from Debt Issuances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Terms, Mandatory Prepayments, Percentage of Restricted Payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to Capitalization Ratio, Threshold Requiring Equal Debt Repayment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22.50% 
25.00% 
 
 
20.00% 
17.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Terms, Mandatory Prepayments, Reduced Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
33.33% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to Capitalization Ratio, Maximum Threshold for Repayment Requirement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
17.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Fee for Repricing of Secured Credit Agreements, Percentage
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Debt to Capitalization Ratio, Percentage Required No Mandatory Prepayment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mandatory Debt Repayment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional Debt Repayment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debenture interest rate
7.00% 
 
7.00% 
 
 
 
 
 
6.375% 
 
7.00% 
 
 
 
 
6.375% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Repurchase Amount
 
 
 
 
 
 
 
 
 
 
 
 
9,400,000 
 
 
 
 
 
 
 
124,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Terms, Risk-Based Capital Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
225.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Limit of Restricted Payments Permitted, Cash Dividends on Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Limit of Restricted Payments Permitted, Percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Limit of Restricted Payments Permitted, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Limit of Restricted Payments Permitted, Amount of Allowed Additional Payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Limit of Restricted Payments Permitted, Debt to Total Capitalization Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Term of Agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 years 
 
 
4 years 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion Rate for Convertible Senior Debentures
 
 
 
 
 
 
 
 
 
 
 
184.3127 
 
 
182.1494 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
183.5145 
 
Share Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 61.25 
Final Purchase Price Per Principal Amount of Each Convertible Senior Debenture
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,123.82 
 
Debt to Capitalization Ratio Required
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to Capitalization Ratio at Period End
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Coverage Ratio Required
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.70 
 
2.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 at Period End
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
392.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum Combined Statutory Capital and Surplus
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined Statutory Capital and Surplus at Period End
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,901,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par Value of Each Convertible Senior Debenture
 
 
 
 
 
 
 
 
 
 
 
1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000 
1,000 
Convertible Debentures Submitted for Conversion, Face Amount
 
 
 
 
 
 
 
 
 
 
 
25,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible Debt Repurchase Tender Offer, Average Volume Weighted Average, Amount Per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 11.2393 
 
Gains (Losses) on Extinguishment of Debt
0 
(198,500,000)
(65,400,000)
(199,200,000)
 
 
(2,900,000)
 
 
 
(62,500,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Extinguishment of beneficial conversion feature related to the repurchase of convertible debentures
 
 
$ (12,600,000)
$ (24,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (12,600,000)
$ (24,000,000)
 
 
Conversion of 7.0% Debentures
 
 
 
 
 
 
 
 
 
 
4,739,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES PAYABLE - DIRECT CORPORATE OBLIGATIONS (SCHEDULE OF FUTURE REPAYMENTS) (DETAILS) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Year ending September 30,
 
2014
$ 52.1 
2015
79.2 
2016
79.2 
2017
7.8 
2018
379.2 
Thereafter
275.0 
Long-term Debt
$ 872.5 
INVESTMENT BORROWINGS (DETAILS) (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
$ 1,850,200,000 
 
$ 1,650,800,000 
Interest rate
7.00% 
 
 
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Carrying value of FHLB common stock
92,500,000 
 
 
Investment borrowings
1,849,700,000 
 
1,700,000,000 
Estimated fair value of collateralized investments for FHLB borrowings
2,300,000,000 
 
 
Interest expense on FHLB borrowings
20,800,000 
21,300,000 
 
Aggregate fee to prepay all fixed rate FHLB borrowings
48,800,000 
 
 
Repurchase Agreements [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Assets sold under agreements to repurchase
0 
 
 
Other Borrowings [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
500,000 
 
800,000 
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 
 
 
Maturity date
Feb. 28, 2014 
 
 
Interest rate
1.83% 
 
 
Borrowings Due September 2015 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
50,000,000 
 
 
Maturity date
Sep. 30, 2015 
 
 
Interest rate
0.564% 
 
 
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 
 
 
Maturity date
Oct. 31, 2015 
 
 
Interest rate
0.532% 
 
 
Borrowings Due November 2015 Rate One [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
100,000,000 
 
 
Maturity date
Nov. 30, 2015 
 
 
Interest rate
0.343% 
 
 
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 
 
 
Maturity date
Nov. 30, 2015 
 
 
Interest rate
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 
 
 
Maturity date
Dec. 31, 2015 
 
 
Interest rate
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 
 
 
Maturity date
Jun. 30, 2016 
 
 
Interest rate
0.619% 
 
 
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 
 
 
Maturity date
Jun. 30, 2016 
 
 
Interest rate
0.408% 
 
 
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 
 
 
Maturity date
Oct. 31, 2016 
 
 
Interest rate
0.426% 
 
 
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 
 
 
Maturity date
Nov. 30, 2016 
 
 
Interest rate
0.53% 
 
 
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 
 
 
Maturity date
Nov. 30, 2016 
 
 
Interest rate
0.65% 
 
 
Borrowings Due June 2017 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
57,700,000 
 
 
Maturity date
Jun. 30, 2017 
 
 
Interest rate
0.612% 
 
 
Borrowings Due July 2017 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
100,000,000 
 
 
Maturity date
Jul. 31, 2017 
 
 
Interest rate
3.90% 
 
 
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 
 
 
Maturity date
Aug. 31, 2017 
 
 
Interest rate
0.464% 
 
 
Borrowings Due August 2017 Rate 2 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
75,000,000 
 
 
Maturity date
Aug. 31, 2017 
 
 
Interest rate
0.412% 
 
 
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 
 
 
Maturity date
Oct. 31, 2017 
 
 
Interest rate
0.698% 
 
 
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 
 
 
Maturity date
Nov. 30, 2017 
 
 
Interest rate
3.75% 
 
 
Borrowings Due January 2018 Rate One [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
50,000,000 
 
 
Maturity date
Jan. 31, 2018 
 
 
Interest rate
0.619% 
 
 
Borrowings Due January 2018 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 
 
 
Maturity date
Jan. 31, 2018 
 
 
Interest rate
0.605% 
 
 
Borrowings Due February 2018 Rate One [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
50,000,000 
 
 
Maturity date
Feb. 28, 2018 
 
 
Interest rate
0.575% 
 
 
Borrowings Due February 2018 Rate Two [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
22,000,000 
 
 
Maturity date
Feb. 28, 2018 
 
 
Interest rate
0.592% 
 
 
Borrowings Due May 2018 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
100,000,000 
 
 
Maturity date
May 31, 2018 
 
 
Interest rate
0.629% 
 
 
Borrowings Due July 2018 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
50,000,000 
 
 
Maturity date
Jul. 31, 2018 
 
 
Interest rate
0.734% 
 
 
Borrowings Due August 2018 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
50,000,000 
 
 
Maturity date
Aug. 31, 2018 
 
 
Interest rate
0.384% 
 
 
Borrowings Due June 2020 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
21,800,000 
 
 
Maturity date
Jun. 30, 2020 
 
 
Interest rate
1.96% 
 
 
Borrowings Due March 2023 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
27,700,000 
 
 
Maturity date
Mar. 31, 2023 
 
 
Interest rate
2.16% 
 
 
Borrowings Due June 2025 [Member] |
Federal Home Loan Bank Advances [Member]
 
 
 
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
 
 
 
Investment borrowings
$ 20,500,000 
 
 
Maturity date
Jun. 30, 2025 
 
 
Interest rate
2.94% 
 
 
CHANGES IN COMMON STOCK (DETAILS) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended
Jun. 30, 2011
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Sep. 30, 2013
Stock Options [Member]
Sep. 30, 2013
Restricted Stock [Member]
Sep. 30, 2013
Common stock and additional paid-in capital
Sep. 30, 2012
Common stock and additional paid-in capital
Sep. 30, 2013
Retained earnings (accumulated deficit)
Sep. 30, 2012
Retained earnings (accumulated deficit)
Sep. 30, 2013
Common Stock [Member]
Sep. 30, 2013
Convertible Subordinated Debt [Member]
May 31, 2013
Convertible Subordinated Debt [Member]
Sep. 30, 2013
Notes Payable, Other Payables [Member]
Convertible Subordinated Debt [Member]
Mar. 28, 2013
Notes Payable, Other Payables [Member]
Convertible Subordinated Debt [Member]
Sep. 30, 2013
Common Share Repurchase Program [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchased and Retired During Period, Value
 
$ 87,300,000 
$ 99,500,000 
 
 
 
$ 87,300,000 
$ 99,500,000 
$ 0 
$ 0 
 
 
 
 
 
 
Stock Repurchase Program, Authorized Amount
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Increase in Authorized Amount
 
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2012
 
221,502,371 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury stock purchased and retired
 
 
 
 
 
 
 
 
 
 
(7,006,000)
 
 
 
 
(7,000,000)
Conversion of 7.0% Debentures
 
 
 
 
 
 
 
 
 
 
 
4,739,000 
 
 
 
 
Shares issued under employee benefit compensation plans
 
 
 
 
1,986,000 
786,000 1
 
 
 
 
 
 
 
 
 
 
Balance, September 30, 2013
 
222,007,214 
 
221,502,371 
 
 
 
 
 
 
 
 
 
 
 
 
Shares Paid for Tax Withholding for Share Based Compensation
 
347,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable – direct corporate obligations
 
 
 
 
 
 
 
 
 
 
 
 
4,500,000 
63,800,000 
59,300,000 
 
Stock Repurchase Program, Remaining Repurchase Authorized Amount
 
128,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Dividends, Per Share, Cash Paid
 
$ 0.08 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock
 
$ 17,900,000 
$ 9,400,000 
 
 
 
$ 0 
$ 0 
$ 17,900,000 
$ 9,400,000 
 
 
 
 
 
 
SALES INDUCEMENTS (DETAILS) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Deferred Sales Inducements [Abstract]
 
 
 
Deferred Sales Inducements, Additions
$ 3.9 
$ 3.1 
 
Deferred Sales Inducements, Amortization Expense
17.0 
20.5 
 
Deferred Sales Inducements, Net
113.4 
 
126.5 
Persistency Bonus Benefits Included in Insurance Liabilities
$ 30.3 
 
$ 34.6 
ASSETS AND LIABILITIES SUBJECT TO OFFSETTING DISCLOSURE REQUIREMENTS (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Offsetting Derivative Assets [Abstract]
 
 
Investment borrowings
$ 1,850.2 
$ 1,650.8 
Fair Value of Collateralized Investment Securities [Member]
 
 
Offsetting Derivative Assets [Abstract]
 
 
Investment borrowings
0 
0 
Call Option [Member]
 
 
Offsetting Derivative Assets [Abstract]
 
 
Gross amounts of recognized assets
123.0 
54.4 
Gross amounts offset in the balance sheet
0 
0 
Net amounts of assets presented in the balance sheet
123.0 
54.4 
Gross amounts not offset in the balance sheet, Financial instruments
0 
0 
Gross amounts not offset in the balance sheet, cash collateral received
0 
0 
Net amount
$ 123.0 
$ 54.4 
CONSOLIDATED STATEMENT CASH FLOWS (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:
 
 
 
 
Net income (loss)
$ 283.0 
$ (5.0)
$ 372.0 
$ 119.8 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Amortization and depreciation
 
 
241.1 
235.2 
Income taxes
 
 
(112.6)
(87.3)
Insurance liabilities
 
 
298.8 
242.8 
Accrual and amortization of investment income
 
 
(189.4)
(123.1)
Deferral of policy acquisition costs
 
 
(161.8)
(141.4)
Net realized investment gains
0.1 
(9.1)
(18.4)
(63.9)
Loss on extinguishment of debt
0 
198.5 
65.4 
199.2 
Other
 
 
(23.0)
43.3 
Net cash provided by operating activities
 
 
472.1 
424.6 
Other Noncash Investing and Financing Items [Abstract]
 
 
 
 
Stock options, restricted stock and performance units
 
 
$ 10.8 
$ 10.7 
INVESTMENTS IN VARIABLE INTEREST ENTITIES (DETAILS) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
$ 1,080.7 
 
$ 814.3 
Cash and cash equivalents held by variable interest entities
85.1 
 
54.2 
Borrowings related to variable interest entities
1,035.1 
 
767.0 
Variable interest entity amortized cost securities held
1,081.4 
 
 
Variable interest entity, gross unrealized gains fixed maturity securities
3.3 
 
 
Variable interest entity gross unrealized losses fixed maturity securities
4.0 
 
 
Variable interest entities net realized gain (loss) on investments
(1.4)
(0.1)
 
Variable interest entities net gains (losses) from sale of fixed maturity investments
(0.3)
0.3 
 
Total other-than-temporary impairment losses on investments held by variable interest entities
(1.1)
(0.4)
 
Variable Interest Entity, Investments Held in Default, Amount
0 
 
 
Variable Interest Entities, Investments Sold
9.3 
 
 
Variable interest entities investments sold for losses before income taxes
0.6 
 
 
Investments held in limited partnerships
29.3 
 
 
Unfunded commitments to limited partnerships
24.5 
 
 
VIEs [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
1,080.7 
 
814.3 
Notes receivable of VIEs held by insurance subsidiaries
0 
 
0 
Cash and cash equivalents held by variable interest entities
85.1 
 
54.2 
Accrued investment income
2.1 
 
1.8 
Income tax assets, net
5.9 
 
3.3 
Other assets
22.5 
 
9.6 
Total assets
1,196.3 
 
883.2 
Other liabilities
59.6 
 
39.9 
Borrowings related to variable interest entities
1,035.1 
 
767.0 
Notes payable of VIEs held by insurance subsidiaries
112.5 
 
82.5 
Total liabilities
1,207.2 
 
889.4 
Eliminations [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
0 
 
0 
Notes receivable of VIEs held by insurance subsidiaries
(108.4)
 
(78.5)
Cash and cash equivalents held by variable interest entities
0 
 
0 
Accrued investment income
0 
 
0 
Income tax assets, net
(2.5)
 
(2.6)
Other assets
(1.5)
 
0 
Total assets
(112.4)
 
(81.1)
Other liabilities
(4.6)
 
(3.3)
Borrowings related to variable interest entities
0 
 
0 
Notes payable of VIEs held by insurance subsidiaries
(112.5)
 
(82.5)
Total liabilities
(117.1)
 
(85.8)
Net Effect On Consolidated Balance Sheet [Member]
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Investments held by variable interest entities
1,080.7 
 
814.3 
Notes receivable of VIEs held by insurance subsidiaries
(108.4)
 
(78.5)
Cash and cash equivalents held by variable interest entities
85.1 
 
54.2 
Accrued investment income
2.1 
 
1.8 
Income tax assets, net
3.4 
 
0.7 
Other assets
21.0 
 
9.6 
Total assets
1,083.9 
 
802.1 
Other liabilities
55.0 
 
36.6 
Borrowings related to variable interest entities
1,035.1 
 
767.0 
Notes payable of VIEs held by insurance subsidiaries
0 
 
0 
Total liabilities
1,090.1 
 
803.6 
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
574.2 
 
 
Gross unrealized losses on investments held by variable interest entity
3.9 
 
 
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
9.1 
 
 
Gross unrealized losses on investments held by variable interest entity
$ 0.1 
 
 
INVESTMENTS IN VARIABLE INTEREST ENTITIES - SCHEDULE OF VIEs (DETAILS) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Investment Holdings [Line Items]
 
Total amortized cost
$ 1,081.4 
Total fair value
1,080.7 
Amortized Cost [Member]
 
Investment Holdings [Line Items]
 
Due in one year or less
7.0 
Due after one year through five years
368.3 
Due after five years through ten years
706.1 
Total amortized cost
1,081.4 
Estimated Fair Value [Member]
 
Investment Holdings [Line Items]
 
Due in one year or less
7.0 
Due after one year through five years
369.6 
Due after five years through ten years
704.1 
Total fair value
$ 1,080.7 
FAIR VALUE MEASUREMENTS - NARRATIVE (DETAILS) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Fair Value Disclosures [Abstract]
 
 
Fair Value, Assets, between Level 1 and Level 2 Transfers, Amount
$ 0 
$ 0 
Fair value of level 3 fixed maturity securities valued using broker quotes, percentage
20.00% 
 
Available for sale fixed maturities classified as level 3, investment grade, percent
90.00% 
 
Available for Sale Maturities with Significant Unobservable Inputs, Collateralized Debt Obligations, Percent
40.00% 
 
Available for sale fixed maturities classified as level 3, corporate securities, percent
55.00% 
 
FAIR VALUE MEASUREMENTS - CATEGORIZATION OF FAIR VALUE MEASUREMENTS (DETAILS) (Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Fair Value, Inputs, Level 1 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
$ 90.0 
$ 49.7 
Trading Securities, Fair Value Disclosure
1.5 
0.9 
Separate Account Assets, Fair Value Disclosure
0 
0 
Assets, Fair Value Disclosure
93.0 
50.6 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
0 
0 
Liabilities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Corporate Securities Held By Variable Interest Entities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments Held By Variable Interest Entities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Embedded Derivatives Associated with Fixed Index Annuity Products [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Embedded Derivative Associated With Modified Coinsurance Agreement [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Corporate Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Equity Securities, Fair Value Disclosure
90.0 
49.7 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Venture Capital Funds [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
US Treasury and Government [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Foreign Government Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
 
0 
Fair Value, Inputs, Level 1 [Member] |
Asset-backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
 
0 
Fair Value, Inputs, Level 1 [Member] |
Commercial Mortgage Backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Mortgage Pass Through Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Collateralized Mortgage Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Total Fixed Maturities, Available For Sale [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Equity Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Trading Securities, Fair Value Disclosure
1.5 
0.9 
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
144.9 
118.8 
Trading Securities, Fair Value Disclosure
213.2 
251.6 
Separate Account Assets, Fair Value Disclosure
13.3 
14.9 
Assets, Fair Value Disclosure
24,417.1 
25,106.5 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
0 
0 
Liabilities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Corporate Securities Held By Variable Interest Entities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments Held By Variable Interest Entities, Fair Value Disclosure
1,080.7 
814.3 
Fair Value, Inputs, Level 2 [Member] |
Embedded Derivatives Associated with Fixed Index Annuity Products [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Embedded Derivative Associated With Modified Coinsurance Agreement [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Corporate Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
15,517.5 
16,498.6 
Equity Securities, Fair Value Disclosure
144.9 
118.8 
Trading Securities, Fair Value Disclosure
43.9 
46.6 
Fair Value, Inputs, Level 2 [Member] |
Venture Capital Funds [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 2 [Member] |
US Treasury and Government [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
102.5 
99.5 
Trading Securities, Fair Value Disclosure
4.6 
4.8 
Fair Value, Inputs, Level 2 [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
2,242.5 
2,115.0 
Trading Securities, Fair Value Disclosure
14.3 
14.0 
Fair Value, Inputs, Level 2 [Member] |
Foreign Government Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
 
0.8 
Fair Value, Inputs, Level 2 [Member] |
Asset-backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
1,441.9 
1,416.9 
Trading Securities, Fair Value Disclosure
1.1 
50.1 
Fair Value, Inputs, Level 2 [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
44.8 
0 
Trading Securities, Fair Value Disclosure
 
0 
Fair Value, Inputs, Level 2 [Member] |
Commercial Mortgage Backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
1,552.4 
1,471.2 
Trading Securities, Fair Value Disclosure
123.4 
93.3 
Fair Value, Inputs, Level 2 [Member] |
Mortgage Pass Through Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
12.5 
19.9 
Trading Securities, Fair Value Disclosure
0.1 
0.1 
Fair Value, Inputs, Level 2 [Member] |
Collateralized Mortgage Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
1,927.9 
2,230.6 
Trading Securities, Fair Value Disclosure
25.8 
41.2 
Fair Value, Inputs, Level 2 [Member] |
Total Fixed Maturities, Available For Sale [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
22,842.0 
23,852.5 
Fair Value, Inputs, Level 2 [Member] |
Equity Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Trading Securities, Fair Value Disclosure
0 
1.5 
Fair Value, Inputs, Level 3 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
27.1 
2.9 
Trading Securities, Fair Value Disclosure
31.9 
13.7 
Separate Account Assets, Fair Value Disclosure
0 
0 
Assets, Fair Value Disclosure
714.7 
778.2 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
845.0 
739.5 
Liabilities, Fair Value Disclosure
845.0 
739.5 
Fair Value, Inputs, Level 3 [Member] |
Corporate Securities Held By Variable Interest Entities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments Held By Variable Interest Entities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Embedded Derivatives Associated with Fixed Index Annuity Products [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
842.9 
734.0 
Fair Value, Inputs, Level 3 [Member] |
Embedded Derivative Associated With Modified Coinsurance Agreement [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
2.1 
5.5 
Fair Value, Inputs, Level 3 [Member] |
Corporate Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
357.3 
355.5 
Equity Securities, Fair Value Disclosure
23.8 
0.1 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Venture Capital Funds [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
3.3 
2.8 
Fair Value, Inputs, Level 3 [Member] |
US Treasury and Government [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
0 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 3 [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
13.1 
Trading Securities, Fair Value Disclosure
0 
0.6 
Fair Value, Inputs, Level 3 [Member] |
Foreign Government Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
 
0 
Fair Value, Inputs, Level 3 [Member] |
Asset-backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
36.5 
44.0 
Trading Securities, Fair Value Disclosure
26.3 
0 
Fair Value, Inputs, Level 3 [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
260.1 
324.0 
Trading Securities, Fair Value Disclosure
 
7.3 
Fair Value, Inputs, Level 3 [Member] |
Commercial Mortgage Backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0 
6.2 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Mortgage Pass Through Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
1.7 
1.9 
Trading Securities, Fair Value Disclosure
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Collateralized Mortgage Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
0.1 
16.9 
Trading Securities, Fair Value Disclosure
5.6 
5.8 
Fair Value, Inputs, Level 3 [Member] |
Total Fixed Maturities, Available For Sale [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
655.7 
761.6 
Fair Value, Inputs, Level 3 [Member] |
Equity Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Trading Securities, Fair Value Disclosure
0 
0 
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
262.0 
171.4 
Trading Securities, Fair Value Disclosure
246.6 
266.2 
Separate Account Assets, Fair Value Disclosure
13.3 
14.9 
Assets, Fair Value Disclosure
25,224.8 
25,935.3 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
845.0 
739.5 
Liabilities, Fair Value Disclosure
845.0 
739.5 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Corporate Securities Held By Variable Interest Entities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments Held By Variable Interest Entities, Fair Value Disclosure
1,080.7 
814.3 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Embedded Derivatives Associated with Fixed Index Annuity Products [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
842.9 
734.0 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Embedded Derivative Associated With Modified Coinsurance Agreement [Member]
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Liabilities For Interest Sensitive Products, Fair Value Disclosure
2.1 
5.5 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Corporate Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
15,874.8 
16,854.1 
Equity Securities, Fair Value Disclosure
258.7 
168.6 
Trading Securities, Fair Value Disclosure
43.9 
46.6 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Venture Capital Funds [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Equity Securities, Fair Value Disclosure
3.3 
2.8 
Estimate of Fair Value, Fair Value Disclosure [Member] |
US Treasury and Government [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
102.5 
99.5 
Trading Securities, Fair Value Disclosure
4.6 
4.8 
Estimate of Fair Value, Fair Value Disclosure [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
2,242.5 
2,128.1 
Trading Securities, Fair Value Disclosure
14.3 
14.6 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Foreign Government Debt Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
 
0.8 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Asset-backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
1,478.4 
1,460.9 
Trading Securities, Fair Value Disclosure
27.4 
50.1 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
304.9 
324.0 
Trading Securities, Fair Value Disclosure
 
7.3 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Commercial Mortgage Backed Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
1,552.4 
1,477.4 
Trading Securities, Fair Value Disclosure
123.4 
93.3 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Mortgage Pass Through Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
14.2 
21.8 
Trading Securities, Fair Value Disclosure
0.1 
0.1 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Collateralized Mortgage Obligations [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
1,928.0 
2,247.5 
Trading Securities, Fair Value Disclosure
31.4 
47.0 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Total Fixed Maturities, Available For Sale [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Available-for-sale Securities, Fixed Maturities, Fair Value Disclosure
23,497.7 
24,614.1 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Equity Securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Trading Securities, Fair Value Disclosure
1.5 
2.4 
Derivatives [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Other Derivatives Not Designated as Hedging Instruments Assets at Fair Value
1.5 
0 
Derivatives [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Other Derivatives Not Designated as Hedging Instruments Assets at Fair Value
123.0 
54.4 
Derivatives [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Other Derivatives Not Designated as Hedging Instruments Assets at Fair Value
0 
0 
Derivatives [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Other Derivatives Not Designated as Hedging Instruments Assets at Fair Value
$ 124.5 
$ 54.4 
FAIR VALUE MEASUREMENTS - MEASURED ON RECURRING BASIS (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
$ 376.7 
$ 582.5 
$ 415.3 
$ 436.0 
Cash and cash equivalents held by variable interest entities
85.1 
54.2 
 
 
Fair Value, Measurements, Recurring [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure
1,635.1 
1,573.2 
 
 
Loans Receivable, Fair Value Disclosure
267.5 
272.0 
 
 
Life Insurance, Corporate or Bank Owned, Amount
133.2 
123.0 
 
 
Hedge fund
17.4 
16.1 
 
 
Cash and Cash Equivalents, at Carrying Value
376.7 
582.5 
 
 
Cash and cash equivalents held by variable interest entities
85.1 
54.2 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives
11,936.1 1
12,153.7 1
 
 
Investment borrowings
1,850.2 
1,650.8 
 
 
Borrowings related to variable interest entities
1,035.1 
767.0 
 
 
Notes Payable, Fair Value Disclosure
868.6 
1,004.2 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure
0 
0 
 
 
Loans Receivable, Fair Value Disclosure
0 
0 
 
 
Life Insurance, Corporate or Bank Owned, Amount
0 
0 
 
 
Hedge fund
0 
0 
 
 
Cash and Cash Equivalents, at Carrying Value
255.5 
432.3 
 
 
Cash and cash equivalents held by variable interest entities
85.1 
54.2 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives
0 1
0 1
 
 
Investment borrowings
0 
0 
 
 
Borrowings related to variable interest entities
0 
0 
 
 
Notes Payable, Fair Value Disclosure
0 
0 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure
0 
0 
 
 
Loans Receivable, Fair Value Disclosure
0 
0 
 
 
Life Insurance, Corporate or Bank Owned, Amount
133.2 
123.0 
 
 
Hedge fund
17.4 
16.1 
 
 
Cash and Cash Equivalents, at Carrying Value
121.1 
150.2 
 
 
Cash and cash equivalents held by variable interest entities
0 
0 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives
0 1
0 1
 
 
Investment borrowings
1,899.0 
1,702.0 
 
 
Borrowings related to variable interest entities
1,019.9 
752.2 
 
 
Notes Payable, Fair Value Disclosure
886.5 
1,100.3 
 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure
1,685.9 
1,682.1 
 
 
Loans Receivable, Fair Value Disclosure
267.5 
272.0 
 
 
Life Insurance, Corporate or Bank Owned, Amount
0 
0 
 
 
Hedge fund
0 
0 
 
 
Cash and Cash Equivalents, at Carrying Value
0 
0 
 
 
Cash and cash equivalents held by variable interest entities
0 
0 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives
11,936.1 1
12,153.7 1
 
 
Investment borrowings
0 
0 
 
 
Borrowings related to variable interest entities
0 
0 
 
 
Notes Payable, Fair Value Disclosure
0 
0 
 
 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure
1,685.9 
1,682.1 
 
 
Loans Receivable, Fair Value Disclosure
267.5 
272.0 
 
 
Life Insurance, Corporate or Bank Owned, Amount
133.2 
123.0 
 
 
Hedge fund
17.4 
16.1 
 
 
Cash and Cash Equivalents, at Carrying Value
376.6 
582.5 
 
 
Cash and cash equivalents held by variable interest entities
85.1 
54.2 
 
 
Insurance liabilities for interest-sensitive products excluding embedded derivatives
11,936.1 1
12,153.7 1
 
 
Investment borrowings
1,899.0 
1,702.0 
 
 
Borrowings related to variable interest entities
1,019.9 
752.2 
 
 
Notes Payable, Fair Value Disclosure
$ 886.5 
$ 1,100.3 
 
 
FAIR VALUE MEASUREMENTS - UNOBSERVABLE INPUT RECONCILIATION (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
$ (1.4)
$ (15.3)
$ 32.1 
$ (22.0)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
(798.9)
(705.9)
(739.5)1
(669.8)1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements
(44.7)2
(22.7)2
(137.6)2
(52.1)2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
(1.4)
(15.3)
32.1 
(22.0)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3
0 3
0 3
0 3
0 3
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
(845.0)
(743.9)
(845.0)
(743.9)
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
731.3 
698.2 
761.6 1
833.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(27.4)2
18.3 4
(61.3)2
82.9 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0.1 
(0.1)
(0.3)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
2.3 
22.0 
(9.4)
33.0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
12.9 
59.4 
13.2 
68.0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(63.4)3
(58.5)
(48.3)3
(277.2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
655.7 
739.5 
655.7 
739.5 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
5.9 
53.0 
37.6 
160.7 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(33.3)
(34.7)
(98.9)
(77.8)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Equity Securities Classification [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
(1.0)
 
(1.0)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
(1.0)
 
(1.0)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
 
0 
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0.6 
0.8 
(0.8)
0.1 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
10.4 
3.9 
13.7 1
0.4 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 2
2.8 4
(7.7)2
7.0 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0 
0.6 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0.6 
0.8 
(0.8)
0.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
25.7 
0.6 
26.7 
0.5 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(4.8)3
(0.5)
(0.6)3
(0.4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
31.9 
7.6 
31.9 
7.6 
Corporate securities [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
393.1 
321.0 
355.5 1
278.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(2.1)2
14.0 4
14.0 2
54.9 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0 
(0.3)
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
1.4 
7.3 
(12.8)
9.4 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
12.9 
12.5 
13.2 
67.5 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(48.0)3
(37.5)
(12.3)3
(92.6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
357.3 
317.3 
357.3 
317.3 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
27.0 
24.0 
70.3 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(2.1)
(13.0)
(10.0)
(15.4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Corporate securities [Member] |
Equity Securities Classification [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
(3.8)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0.1 
3.2 
0.1 1
6.4 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0.7 2
(1.0)4
34.7 2
(1.0)4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0 
0 
(3.8)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
(11.0)
0.6 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
23.0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
0 3
0 
0 3
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
23.8 
2.2 
23.8 
2.2 
Corporate securities [Member] |
Equity Securities [Member]
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0.7 
 
34.7 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0.7 
 
34.7 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
0 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
 
0 
 
US Treasury and Government [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
0 
 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
1.5 
 
1.6 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
(1.5)4
 
(1.6)4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
0 
 
0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
(1.5)
 
(1.6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
 
0 
US States and Political Subdivisions Debt Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
16.0 
13.1 1
2.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
0 4
0 2
0 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
(16.0)
(13.1)3
(2.1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0 
0 
0 
0 
Asset-backed Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
45.4 
23.0 
44.0 1
79.7 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(7.2)2
15.0 4
(4.5)2
11.4 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0 
0.1 
(0.2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0.3 
5.5 
(3.1)
5.8 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
0 
0 
0.5 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(2.0)3
(0.7)
0 3
(54.4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
36.5 
42.8 
36.5 
42.8 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
15.0 
7.6 
15.0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(7.2)
0 
(12.1)
(3.6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Collateralized debt obligations [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
287.6 
330.1 
324.0 1
327.3 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(18.0)2
(6.3)4
(70.5)2
(11.6)4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0 
0.1 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0.6 
8.2 
6.5 
16.3 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(10.1)3
0 
0 3
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
260.1 
332.0 
260.1 
332.0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
5.9 
0 
6.0 
30.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(23.9)
(6.3)
(76.5)
(41.7)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Commercial Mortgage Backed Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
3.3 
0 
6.2 
17.3 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 2
0 4
0 2
0 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
0 
0.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
2.3 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(3.3)3
0 
(6.2)3
(15.1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0 
2.3 
0 
2.3 
Mortgage Pass Through Securities [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
1.8 
2.1 
1.9 1
2.2 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(0.1)2
(0.1)4
(0.2)2
(0.2)4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
0 3
0 
0 3
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
1.7 
2.0 
1.7 
2.0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
0.1 
(0.1)
(0.2)
(0.2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Collateralized Mortgage Obligations [Member] |
Fixed maturities, available for sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0.1 
4.5 
16.9 1
124.8 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 2
(2.8)4
(0.1)2
30.0 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
0.1 
0 
(0.1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
1.0 
0 
1.4 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
44.6 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
0 3
(4.3)
(16.7)3
(113.0)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0.1 
43.1 
0.1 
43.1 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
11.0 
0 
45.3 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
13.8 
(0.1)
(15.3)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
0 
0 
Venture Capital Funds [Member] |
Equity Securities Classification [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
(23.1)
0 
(26.0)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
3.1 
58.0 
2.8 1
63.5 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 2
0 4
0 2
0 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
(23.1)
0 
(26.0)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0.2 
3.2 
0.5 
0.6 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
0 3
0 
0 3
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
3.3 
38.1 
3.3 
38.1 
Equity Securities [Member] |
Equity Securities Classification [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
(23.1)
0 
(29.8)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
3.2 
61.2 
2.9 1
69.9 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0.7 2
(1.0)4
34.7 2
(1.0)4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
(23.1)
0 
(29.8)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0.2 
3.2 
(10.5)
1.2 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
23.0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
0 3
0 
0 3
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
27.1 
40.3 
27.1 
40.3 
Interest Sensitive Products Fixed Index Annuity Products [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
(1.4)
(15.3)
32.1 
(22.0)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
(796.3)
(701.0)
(734.0)1
(666.3)1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements
(45.2)2
(21.6)2
(141.0)2
(49.6)2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
(1.4)
(15.3)
32.1 
(22.0)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3
0 3
0 3
0 3
0 3
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
(842.9)
(737.9)
(842.9)
(737.9)
Interest Sensitive Products Modified Coinsurance Agreement [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
0 
0 
0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
(2.6)
(4.9)
(5.5)1
(3.5)1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements
0.5 2
(1.1)2
3.4 2
(2.5)2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3
0 3
0 3
0 3
0 3
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
(2.1)
(6.0)
(2.1)
(6.0)
Asset-backed Securities [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
 
(0.4)
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
 
0 1
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
 
0 2
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
 
 
(0.4)
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
 
26.7 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
 
0 3
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
26.3 
 
26.3 
 
Corporate securities [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
0 
 
0.1 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
0 
 
0 1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
0 2
 
0 2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
 
0 
 
0.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
0.6 
 
0.5 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
0 3
 
0 3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
0.6 
 
0.6 
US States and Political Subdivisions Debt Securities [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
0 
0 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
0.5 
0.6 1
0 1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
0 2
0 2
0 2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
(0.5)3
(0.6)3
0 3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0 
0 
0 
0 
Collateralized Debt Obligations [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
0.8 
(0.2)
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
3.4 
7.3 1
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
2.8 4
(7.7)2
7.0 4
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
 
0 
0.6 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
 
0.8 
(0.2)
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
0 
0 3
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0 
7.0 
0 
7.0 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
2.8 
0 
7.0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
0 
(7.7)
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
0 
0 
Commercial Mortgage Backed Securities [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
 
 
 
0 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
 
 
0.4 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
 
 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
 
 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
 
 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
 
 
 
(0.4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
 
0 
 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Asset-backed Securities [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0.6 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 2
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0.6 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
25.7 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
0 3
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
26.3 
 
26.3 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Collateralized Mortgage Obligations [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
Amount of Total Gains Losses Included in Net Income Related to Assets Liabilities Still Held at the Reporting Date
0 
 
(0.2)
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
10.4 
 
5.8 1
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 2
 
0 2
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings
0 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)
0 
 
(0.2)
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3
0 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(4.8)3
 
0 3
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
$ 5.6 
 
$ 5.6 
 
[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 September 30, 2013 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, netAssets: Fixed maturities, available for sale: Corporate securities$— $(2.1) $— $— $(2.1)Asset-backed securities— (7.2) — — (7.2)Collateralized debt obligations5.9 (23.9) — — (18.0)Mortgage pass-through securities— (.1) — — (.1)Total fixed maturities, available for sale5.9 (33.3) — — (27.4)Equity securities - corporate securities.7 — — — .7Liabilities: Liabilities for insurance products: Interest-sensitive products - embedded derivatives associated with fixed index annuity products(25.4) — (30.0) 10.2 (45.2)Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement— .5 — — .5Total liabilities for insurance products(25.4) .5 (30.0) 10.2 (44.7)
[4] hases, 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 September 30, 2012 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, netAssets: Fixed maturities, available for sale: Corporate securities$27.0 $(13.0) $— $— $14.0United States Treasury securities and obligations of United States government corporations and agencies— (1.5) — — (1.5)Asset-backed securities15.0 — — — 15.0Collateralized debt obligations— (6.3) — — (6.3)Mortgage pass-through securities— (.1) — — (.1)Collateralized mortgage obligations11.0 (13.8) — — (2.8)Total fixed maturities, available for sale53.0 (34.7) — — 18.3Equity securities— (1.0) — — (1.0)Trading securities - collateralized debt obligations2.8 — — — 2.8Liabilities: Liabilities for insurance products: Interest-sensitive products - embedded derivatives associated with fixed index annuity products(23.5) .2 (9.1) 10.8 (21.6)Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement— — (1.1) — (1.1)Total liabilities for insurance products(23.5) .2 (10.2) 10.8 (22.7)Th
FAIR VALUE MEASUREMENTS - UNOBSERVABLE INPUT ACTIVITY (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases
$ (25.4)
$ (23.5)
$ (78.2)
$ (75.3)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales
0.5 
0.2 
4.8 
41.9 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issues
(30.0)
(10.2)
(94.2)
(50.6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements
10.2 
10.8 
30.0 
31.9 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements
(44.7)1
(22.7)1
(137.6)1
(52.1)1
Available-for-sale Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
5.9 
53.0 
37.6 
160.7 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(33.3)
(34.7)
(98.9)
(77.8)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(27.4)1
18.3 2
(61.3)1
82.9 2
Available-for-sale Securities [Member] |
Commercial Mortgage Backed Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 1
0 2
0 1
0 2
Available-for-sale Securities [Member] |
Corporate Debt Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
27.0 
24.0 
70.3 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(2.1)
(13.0)
(10.0)
(15.4)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(2.1)1
14.0 2
14.0 1
54.9 2
Available-for-sale Securities [Member] |
US Treasury and Government [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
(1.5)
 
(1.6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
(1.5)2
 
(1.6)2
Available-for-sale Securities [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
0 2
0 1
0 2
Available-for-sale Securities [Member] |
Asset-backed Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
15.0 
7.6 
15.0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(7.2)
0 
(12.1)
(3.6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(7.2)1
15.0 2
(4.5)1
11.4 2
Available-for-sale Securities [Member] |
Collateralized Debt Obligations [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
5.9 
0 
6.0 
30.1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
(23.9)
(6.3)
(76.5)
(41.7)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(18.0)1
(6.3)2
(70.5)1
(11.6)2
Available-for-sale Securities [Member] |
Mortgage Pass Through Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
0.1 
(0.1)
(0.2)
(0.2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(0.1)1
(0.1)2
(0.2)1
(0.2)2
Available-for-sale Securities [Member] |
Collateralized Mortgage Obligations [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
11.0 
0 
45.3 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
13.8 
(0.1)
(15.3)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 1
(2.8)2
(0.1)1
30.0 2
Equity Securities Classification [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
(1.0)
 
(1.0)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
(1.0)
 
(1.0)
Equity Securities Classification [Member] |
Corporate Debt Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0.7 1
(1.0)2
34.7 1
(1.0)2
Equity Securities [Member] |
Corporate Debt Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0.7 
 
34.7 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
0 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
0 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
0 
 
0 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0.7 
 
34.7 
 
Trading Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
0 1
2.8 2
(7.7)1
7.0 2
Corporate Debt Securities [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
0 1
 
0 1
Collateralized Debt Obligations [Member] |
Trading Securities [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
2.8 
0 
7.0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales
 
0 
(7.7)
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issues
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements
 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
 
2.8 2
(7.7)1
7.0 2
Interest Sensitive Products Fixed Index Annuity Products [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases
(25.4)
(23.5)
(78.2)
(75.3)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales
0 
0.2 
1.4 
41.9 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issues
(30.0)
(9.1)
(94.2)
(48.1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements
10.2 
10.8 
30.0 
31.9 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements
(45.2)1
(21.6)1
(141.0)1
(49.6)1
Interest Sensitive Products Modified Coinsurance Agreement [Member]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements [Abstract]
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales
0.5 
0 
3.4 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issues
0 
(1.1)
0 
(2.5)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, Sales, Issues, Settlements
$ 0.5 1
$ (1.1)1
$ 3.4 1
$ (2.5)1
[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 September 30, 2013 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, netAssets: Fixed maturities, available for sale: Corporate securities$— $(2.1) $— $— $(2.1)Asset-backed securities— (7.2) — — (7.2)Collateralized debt obligations5.9 (23.9) — — (18.0)Mortgage pass-through securities— (.1) — — (.1)Total fixed maturities, available for sale5.9 (33.3) — — (27.4)Equity securities - corporate securities.7 — — — .7Liabilities: Liabilities for insurance products: Interest-sensitive products - embedded derivatives associated with fixed index annuity products(25.4) — (30.0) 10.2 (45.2)Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement— .5 — — .5Total liabilities for insurance products(25.4) .5 (30.0) 10.2 (44.7)
[2] hases, 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 September 30, 2012 (dollars in millions): Purchases Sales Issuances Settlements Purchases, sales, issuances and settlements, netAssets: Fixed maturities, available for sale: Corporate securities$27.0 $(13.0) $— $— $14.0United States Treasury securities and obligations of United States government corporations and agencies— (1.5) — — (1.5)Asset-backed securities15.0 — — — 15.0Collateralized debt obligations— (6.3) — — (6.3)Mortgage pass-through securities— (.1) — — (.1)Collateralized mortgage obligations11.0 (13.8) — — (2.8)Total fixed maturities, available for sale53.0 (34.7) — — 18.3Equity securities— (1.0) — — (1.0)Trading securities - collateralized debt obligations2.8 — — — 2.8Liabilities: Liabilities for insurance products: Interest-sensitive products - embedded derivatives associated with fixed index annuity products(23.5) .2 (9.1) 10.8 (21.6)Interest-sensitive products - embedded derivatives associated with modified coinsurance agreement— — (1.1) — (1.1)Total liabilities for insurance products(23.5) .2 (10.2) 10.8 (22.7)Th
FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (DETAILS) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Sep. 30, 2013
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Dec. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Sep. 30, 2013
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Dec. 31, 2012
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Sep. 30, 2013
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Dec. 31, 2012
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Sep. 30, 2013
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Dec. 31, 2012
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Dec. 31, 2012
Venture capital investments [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Sep. 30, 2013
Preferred Stock [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Preferred Stock [Member]
Fair Value, Inputs, Level 3 [Member]
Estimate of Fair Value, Fair Value Disclosure [Member]
Sep. 30, 2013
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Minimum [Member]
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Minimum [Member]
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Minimum [Member]
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Minimum [Member]
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Minimum [Member]
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Minimum [Member]
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Minimum [Member]
Venture capital investments [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Maximum [Member]
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Maximum [Member]
Corporate securities [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Maximum [Member]
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Maximum [Member]
Asset-backed securities [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Maximum [Member]
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Maximum [Member]
Collateralized debt obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Interest Sensitive Products Fixed Index Annuity Products [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Interest Sensitive Products Fixed Index Annuity Products [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Interest Sensitive Products Fixed Index Annuity Products [Member]
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Interest Sensitive Products Fixed Index Annuity Products [Member]
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
Sep. 30, 2013
Interest Sensitive Products Fixed Index Annuity Products [Member]
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2012
Interest Sensitive Products Fixed Index Annuity Products [Member]
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Assets, between Level 1 and Level 2 Transfers, Amount
$ 0 
 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
27,320.2 
27,959.3 
 
 
 
714.7 
778.2 
 
 
241.6 1
248.3 1
 
 
29.4 2
33.3 2
 
 
254.2 3
331.4 3
2.8 4
 
3.3 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Investments
330.6 
248.1 
 
 
 
186.2 6
162.4 6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities For Interest Sensitive Products
$ 12,781.1 
$ 12,893.2 
 
 
 
$ 845.0 7
$ 739.5 7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Discount Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.85% 1
1.90% 1
2.45% 2
2.78% 2
1.00% 3
0.95% 3
 
 
 
3.05% 1
3.25% 1
3.55% 2
3.14% 2
2.25% 3
8.75% 3
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Discount Rate
 
 
 
 
 
 
 
2.57% 1
2.78% 1
 
 
3.10% 2
2.99% 2
 
 
1.48% 3
2.02% 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Recoveries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57.00% 3
65.00% 3
 
 
 
 
 
 
 
66.00% 3
66.00% 3
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Recoveries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
64.50% 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Constant Prepayment Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 3
20.00% 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Annual Default Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.11% 3
0.95% 3
 
 
 
 
 
 
 
5.35% 3
5.54% 3
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Annual Default Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.10% 3
3.01% 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Portfolio CCC Percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.53% 3
1.18% 3
 
 
 
 
 
 
 
20.69% 3
21.56% 3
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, EBITDA Multiple
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.0 5
 
 
 
 
 
 
 
 
 
6.8 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Weighted Average Portfolio CCC Percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.58% 3
11.99% 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Projected Portfolio Yields
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.35% 7
5.35% 7
5.61% 7
5.61% 7
Liabilities, Fair Value Disclosure, Significant Assumptions, Weighted Average Projected Portfolio Yields
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.55% 7
5.55% 7
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Discount Rates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 7
0.00% 7
 
 
 
 
 
 
 
4.33% 7
3.60% 7
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Weighted Average Discount Rates
 
 
 
2.14% 7
1.40% 7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Surrender Rates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.00% 7
4.00% 7
 
 
 
 
 
 
 
43.00% 7
43.00% 7
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Disclosure, Significant Assumptions, Weighted Average Surrender Rates
 
 
 
19.00% 7
19.00% 7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure, Significant Assumptions, Revenue Multiple
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.7 5
 
 
 
 
 
 
 
 
 
1.5 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[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.