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Supplemental Unaudited Quarterly Financial Information (Tables)
 12 Months Ended
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]  
Supplemental Unaudited Quarterly Financial Information
The following tables reflect unaudited summarized quarterly financial results during the years ended December 31, 2013 and 2012.
Summarized Selected Quarterly Financial Data:
Quarter Ended
($ in millions)
Mar 31, [1]
 
June 30,
 
Sept 30,
 
Dec 31,
 
2013
 
 
 
 
 
 
 
 
Revenues
$
108.8

 
$
137.1

 
$
130.6

 
$
149.2

 
 
 
 
 
 
 
 
Benefits and expenses
$
131.1

 
$
149.4

 
$
143.2

 
$
68.0

 
 
 
 
 
 
 
 
Income tax expense (benefit)
$
(1.9
)
 
$
(16.9
)
 
$
2.6

 
$
(5.5
)
 
 
 
 
 
 
 
 
Net income (loss)
$
(20.4
)
 
$
4.6

 
$
(15.2
)
 
$
86.7

———————
[1]
Results for the quarter ended March 31, 2013 include $3.2 million of income (loss) related to out of period adjustments. Such amounts are not material to any period presented.

Summarized Selected Quarterly Financial Data:
Quarter Ended
($ in millions)
Mar 31,
 
June 30,
 
Sept 30,
 
Dec 31,
 
2012
 
 
 
 
 
 
 
 
Revenues
$
125.6

 
$
111.7

 
$
130.2

 
$
114.9

 
 
 
 
 
 
 
 
Benefits and expenses
$
129.3

 
$
143.3

 
$
206.5

 
$
124.8

 
 
 
 
 
 
 
 
Income tax expense (benefit)
$
18.8

 
$
0.5

 
$
4.3

 
$
(7.4
)
 
 
 
 
 
 
 
 
Net income (loss)
$
(22.5
)
 
$
(32.1
)
 
$
(80.6
)
 
$
(2.5
)
($ in millions)
Statements of Income and Comprehensive Income
 
Three months ended
 
Mar 31,
 
June 30,
 
Sept 30,
 
Dec 31,
 
2013
REVENUES:
 
 
 
 
 
 
 

Premiums
$
3.1

 
$
5.1

 
$
3.1

 
$
2.6

Insurance and investment product fees
90.1

 
87.2

 
94.0

 
96.3

Net investment income
33.0

 
34.1

 
36.3

 
37.4

Net realized investment gains (losses):
 
 
 
 
 
 
 
Total OTTI losses
(0.3
)
 
—

 
(0.2
)
 
(0.6
)
Portion of OTTI losses recognized in OCI
(0.7
)
 
(0.2
)
 
—

 
—

Net OTTI losses recognized in earnings
(1.0
)
 
(0.2
)
 
(0.2
)
 
(0.6
)
Net realized investment gains (losses), excluding OTTI losses
(16.4
)
 
10.9

 
(2.6
)
 
13.5

Net realized investment gains (losses)
(17.4
)
 
10.7

 
(2.8
)
 
12.9

Total revenues
108.8

 
137.1

 
130.6

 
149.2

 
 
 
 
 
 
 
 

BENEFITS AND EXPENSES:
 
 
 
 
 
 
 

Policy benefits
88.5

 
91.4

 
91.8

 
14.8

Policy acquisition cost amortization
14.0

 
26.6

 
22.2

 
25.6

Other operating expenses
28.6

 
31.4

 
29.2

 
27.6

Total benefits and expenses
131.1

 
149.4

 
143.2

 
68.0

Income (loss) before income taxes
(22.3
)
 
(12.3
)
 
(12.6
)
 
81.2

Income tax expense (benefit)
(1.9
)
 
(16.9
)
 
2.6

 
(5.5
)
Net income (loss)
$
(20.4
)
 
$
4.6

 
$
(15.2
)
 
$
86.7

 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME (LOSS):
 
 
 
 
 
 
 
Net income (loss)
$
(20.4
)
 
$
4.6

 
$
(15.2
)
 
$
86.7

Other comprehensive income (loss) before income taxes:
 
 
 
 
 
 
 
  Unrealized investment gains (losses), net of related offsets
(13.3
)
 
(12.1
)
 
9.9

 
(19.6
)
Less: Income tax expense (benefit) related to:
 
 
 
 
 
 
 
Unrealized investment gains (losses), net of related offsets
2.7

 
(12.1
)
 
(0.3
)
 
(2.1
)
Other comprehensive income (loss), net of income taxes
(16.0
)
 
—

 
10.2

 
(17.5
)
Comprehensive income (loss)
$
(36.4
)
 
$
4.6

 
$
(5.0
)
 
$
69.2


17.
Supplemental Unaudited Quarterly Financial Information (continued)
($ in millions)
Statements of Income
and Comprehensive Income
 
For the period ended
 
June 30,
 
Sept 30,
 
2013
REVENUES:
 
 
 
Premiums
$
8.2

 
$
11.3

Insurance and investment product fees
177.3

 
271.3

Net investment income
67.1

 
103.4

Net realized investment gains (losses):
 
 
 
Total OTTI losses
(0.3
)
 
(0.5
)
Portion of OTTI losses recognized in OCI
(0.9
)
 
(0.9
)
Net OTTI losses recognized in earnings
(1.2
)
 
(1.4
)
Net realized investment gains (losses), excluding OTTI losses
(5.5
)
 
(8.1
)
Net realized investment gains (losses)
(6.7
)
 
(9.5
)
Total revenues
245.9

 
376.5

 
 
 
 
BENEFITS AND EXPENSES:
 
 
 
Policy benefits, excluding policyholder dividends
179.9

 
271.7

Policy acquisition cost amortization
40.6

 
62.8

Other operating expenses
60.0

 
89.2

Total benefits and expenses
280.5

 
423.7

Loss before income taxes
(34.6
)
 
(47.2
)
Income tax expense (benefit)
(18.8
)
 
(16.2
)
Net income (loss)
$
(15.8
)
 
$
(31.0
)
 
 
 
 
COMPREHENSIVE INCOME (LOSS):
 
 
 
Net income (loss)
$
(15.8
)
 
$
(31.0
)
Other comprehensive income (loss) before income taxes:
 
 
 
  Unrealized investment gains (losses), net of related offsets
(25.4
)
 
(15.5
)
Less: Income tax expense (benefit) related to:
 
 
 
Unrealized investment gains (losses), net of related offsets
(9.4
)
 
(9.7
)
Other comprehensive income (loss), net of income taxes
(16.0
)
 
(5.8
)
Comprehensive income (loss)
$
(31.8
)
 
$
(36.8
)
($ in millions, except share data)
Balance Sheets
 
For the period ended
 
Mar 31,
 
June 30,
 
Sept 30,
 
2013
ASSETS:
 
 
 
 
 
Available-for-sale debt securities, at fair value
$
3,054.7

 
$
3,162.2

 
$
3,252.1

Short-term investments
224.9

 
165.0

 
55.0

Limited partnerships and other investments
5.7

 
7.2

 
10.3

Policy loans, at unpaid principal balances
61.5

 
62.8

 
65.6

Derivative investments
186.6

 
199.3

 
190.7

Fair value investments
46.5

 
48.8

 
53.1

Total investments
3,579.9

 
3,645.3

 
3,626.8

Cash and cash equivalents
116.2

 
123.9

 
218.1

Accrued investment income
29.0

 
25.7

 
29.7

Receivables
9.8

 
8.6

 
14.3

Reinsurance recoverable
444.1

 
455.5

 
484.8

Deferred policy acquisition costs
433.6

 
463.1

 
458.5

Deferred income taxes, net
13.4

 
25.5

 
25.8

Receivables from related parties
—

 
6.0

 
2.0

Other assets
162.2

 
182.4

 
190.4

Separate account assets
2,109.5

 
2,021.3

 
2,049.5

Total assets
$
6,897.7

 
$
6,957.3

 
$
7,099.9

 
 
 
 
 
 
LIABILITIES:
 
 
 
 
 
Policy liabilities and accruals
$
1,930.8

 
$
1,926.5

 
$
1,974.9

Policyholder deposit funds
2,468.1

 
2,566.5

 
2,660.9

Payable to related parties
15.5

 
18.3

 
12.6

Other liabilities
115.1

 
161.4

 
143.7

Separate account liabilities
2,109.5

 
2,021.3

 
2,049.5

Total liabilities
6,639.0

 
6,694.0

 
6,841.6

 
 
 
 
 
 
COMMITMENTS AND CONTINGENT LIABILITIES (Note 16)


 


 


 
 
 
 
 
 
STOCKHOLDER’S EQUITY:
 
 
 
 
 
Common stock, $5,000 par value: 1,000 shares authorized; 500 shares issued
2.5

 
2.5

 
2.5

Additional paid-in capital
802.2

 
802.2

 
802.2

Accumulated other comprehensive gain (loss)
(4.6
)
 
(4.6
)
 
5.6

Retained earnings (accumulated deficit)
(541.4
)
 
(536.8
)
 
(552.0
)
Total stockholder’s equity
258.7

 
263.3

 
258.3

Total liabilities and stockholder’s equity
$
6,897.7

 
$
6,957.3

 
$
7,099.9

($ in millions)
Statement of
Changes in Stockholder’s Equity
 
For the period ended
 
Mar 31,
 
June 30,
 
Sept 30,
 
2013
COMMON STOCK:
 
 
 
 
 
  Balance, beginning of period
$
2.5

 
$
2.5

 
$
2.5

  Balance, end of period
$
2.5

 
$
2.5

 
$
2.5

 
 
 
 
 
 
ADDITIONAL PAID-IN CAPITAL:
 
 
 
 
 
  Balance, beginning of period
$
802.2

 
$
802.2

 
$
802.2

    Capital contributions from parent
—

 
—

 
—

  Balance, end of period
$
802.2

 
$
802.2

 
$
802.2

 
 
 
 
 
 
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
 
 
 
 
 
  Balance, beginning of period
$
11.4

 
$
11.4

 
$
11.4

    Other comprehensive income (loss)
(16.0
)
 
(16.0
)
 
(5.8
)
  Balance, end of period
$
(4.6
)
 
$
(4.6
)
 
$
5.6

 
 
 
 
 
 
RETAINED EARNINGS (ACCUMULATED DEFICIT):
 
 
 
 
 
  Balance, beginning of period
$
(521.0
)
 
$
(521.0
)
 
$
(521.0
)
    Net income (loss)
(20.4
)
 
(15.8
)
 
(31.0
)
  Balance, end of period
$
(541.4
)
 
$
(536.8
)
 
$
(552.0
)
 
 
 
 
 
 
TOTAL STOCKHOLDER’S EQUITY:
 
 
 
 
 
  Balance, beginning of period
$
295.1

 
$
295.1

 
$
295.1

    Change in stockholder’s equity
(36.4
)
 
(31.8
)
 
(36.8
)
  Stockholder’s equity, end of period
$
258.7

 
$
263.3

 
$
258.3

($ in millions)
Statements of Cash Flows
 
For the period ended
 
Mar 31,
 
June 30,
 
Sept 30,
 
2013
OPERATING ACTIVITIES:
 
 
 
 
 
Net income (loss)
$
(20.4
)
 
$
(15.8
)
 
$
(31.0
)
Net realized investment (gains) losses
17.4

 
6.7

 
9.5

Policy acquisition costs deferred
(17.2
)
 
(33.5
)
 
(49.6
)
Amortization of deferred policy acquisition costs
14.0

 
40.6

 
62.8

Interest credited
18.4

 
40.1

 
64.0

Equity in earnings of limited partnerships and other investments
0.8

 
(0.1
)
 
(0.3
)
Change in:
 
 
 
 
 
  Accrued investment income
(6.8
)
 
(3.7
)
 
(8.5
)
  Deferred income taxes
—

 
—

 
—

  Receivables
6.4

 
7.6

 
1.9

  Reinsurance recoverable
(17.0
)
 
(28.4
)
 
(57.7
)
  Policy liabilities and accruals
(55.5
)
 
(59.5
)
 
(70.7
)
  Due to/from affiliate
4.5

 
1.3

 
(0.4
)
Other operating activities, net
3.6

 
(4.4
)
 
7.4

Cash provided by (used for) operating activities
(51.8
)
 
(49.1
)
 
(72.6
)
 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Purchases of:
 
 
 
 
 
  Available-for-sale debt securities
(155.0
)
 
(429.8
)
 
(672.3
)
  Short-term investments
(224.8
)
 
(224.8
)
 
(224.8
)
  Derivative instruments
(35.1
)
 
(50.1
)
 
(62.7
)
  Fair value investments
(9.8
)
 
(14.6
)
 
(21.1
)
Sales, repayments and maturities of:
 
 
 
 
 
  Available-for-sale debt securities
73.4

 
151.3

 
261.2

  Short-term investments
244.9

 
304.8

 
414.8

  Derivative instruments
7.7

 
15.8

 
27.4

  Fair value investments
1.7

 
3.7

 
5.7

Contributions to limited partnerships
(0.3
)
 
(0.4
)
 
(3.5
)
Distributions from limited partnerships
—

 
0.1

 
0.4

Policy loans, net
0.2

 
(0.6
)
 
(2.7
)
Other investing activities, net
0.1

 
0.1

 
0.1

Cash provided by (used for) investing activities
(97.0
)
 
(244.5
)
 
(277.5
)
 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Policyholder deposit fund deposits
247.2

 
469.9

 
690.7

Policyholder deposit fund withdrawals
(135.3
)
 
(280.0
)
 
(434.6
)
Net transfers to/from separate accounts
70.0

 
144.5

 
229.0

Cash provided by (used for) financing activities
181.9

 
334.4

 
485.1

Change in cash and cash equivalents
33.1

 
40.8

 
135.0

Cash and cash equivalents, beginning of period
83.1

 
83.1

 
83.1

Cash and cash equivalents, end of period
$
116.2

 
$
123.9

 
$
218.1

 
 
 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
 
 
Income taxes paid (refunded)
$
(3.7
)
 
$
(9.0
)
 
$
(25.5
)
 
 
 
 
 
 
Non-Cash Transactions During the Year
 
 
 
 
 
Investment exchanges
$
19.0

 
$
29.6

 
$
30.5