2. Restatement and Amendment of Previously Reported Financial Information (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Summarizes the effect of the correction of these errors on net income

The following table summarizes the effect of the correction of these errors on net income as applicable by category of error.

Increase (decrease)	For the year ended
($ in millions)	December 31,
	2011			2010
Net income (loss) as previously reported	$	17.0		$	(24.9	)
Restatement adjustments: (1)
Actuarial finance:
- Accounting for certain universal life type products		(35.8	)		(42.0	)
- Loss recognition		3.1			(3.9	)
- Fixed indexed annuities		(4.1	)		—
- Other actuarial errors		5.3			(17.5	)
Investments:
- Available-for-sale securities		0.4			0.5
- Derivative valuation		(5.7	)		(2.3	)
- Structured securities		0.1			1.0
Reinsurance accounting:
-Third-party reinsurance		(3.3	)		6.3
-Related party reinsurance		(8.0	)		(32.6	)
Other restatement adjustments		1.1			2.5
Total restatement adjustments before income taxes		(46.9	)		(88.0	)
Total income tax expense (benefit) of restatement adjustments		5.2			(14.0	)
Total restatement adjustments after income taxes		(52.1	)		(74.0	)
Net loss before retrospective adoption, net of income tax		(35.1	)		(98.9	)
Retrospective adoption, net of income tax (2)		15.1			35.3
Net loss	$	(20.0	)	$	(63.6	)

(1)	All restatement adjustments are presented on a before-tax basis with total tax expense (benefit) presented separately.
(2)	For additional information, see “Revision for the Retrospective Adoption of Amended Accounting Guidance” described more fully below in this Note.

Summary of Correction of Actuarial Finance Errors

Increase (decrease		Summary of Correction of Actuarial Finance Errors – December 31, 2011 Balance Sheet Impacts (1)
($ in millions)		Actuarial Finance
		Accounting for UL Type Products			Shadow Accounting			Loss Recognition			FIA			Other Actuarial			Total Actuarial Finance Errors (2)
ASSETS:
Available-for-sale debt securities, at fair value		$	—		$	—		$	—		$	—		$	—		$	—
Limited partnerships and other investments			—			—			—			—			—			—
Policy loans, at unpaid principal balances			—			—			—			—			—			—
Derivative investments			—			—			—			—			—			—
Fair value investments			—			—			—			—			—			—
Total investments			—			—			—			—			—			—
Cash and cash equivalents			—			—			—			—			—			—
Accrued investment income			—			—			—			—			—			—
Receivables			1.1			—			—			—			1.9			3.0
Deferred policy acquisition costs			70.9			(13.4	)		(1.4	)		(3.4	)		(2.6	)		50.1
Deferred income taxes, net			—			—			—			—			—			—
Receivables from related parties			—			—			—			—			—			—
Other assets			—			—			39.6			—			4.7			44.3
Separate account assets			—			—			—			—			—			—
Total assets		$	72.0		$	(13.4	)	$	38.2		$	(3.4	)	$	4.0		$	97.4
LIABILITIES:
Policy liabilities and accruals		$	195.1		$	(13.6	)	$	10.3			—		$	11.3		$	203.1
Deferred income tax, net			—			—			—			—			—			—
Policyholder deposit funds			—			—			—			0.8			2.4			3.2
Deferred income tax, net
Payable to related parties			—			—			—			—			—			—
Other liabilities			—			—			—			—			—			—
Separate account liabilities			—			—			—			—			—			—
Total liabilities			195.1			(13.6	)		10.3			0.8			13.7			206.3
STOCKHOLDER’S EQUITY:
Common stock			—			—			—			—			—			—
Additional paid-in capital			—			—			—			—			—			—
Accumulated other comprehensive loss			4.5			(19.8	)		—			—			—			(15.3	)
Accumulated deficit			(77.8	)		—			(0.8	)		(4.1	)		(12.2	)		(94.9	)
Treasury stock			—			—			—			—			—			—
Total stockholder’s equity(3)			(73.3	)		(19.8	)		(0.8	)		(4.1	)		(12.2	)		(110.2	)
Total stockholder’s equity - cumulative impact(4)			(49.8	)		20.0			28.7			(0.1	)		2.5			1.3
Total stockholder’s equity - impact			(123.1	)		0.2			27.9			(4.2	)		(9.7	)		(108.9	)
Total liabilities and stockholder’s equity		$	72.0		$	(13.4	)	$	38.2		$	(3.4	)	$	4.0		$	97.4
(1)	All amounts are shown before income taxes, unless otherwise noted.

(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Summary of Correction of Errors” in the following pages.
(3)	Amounts represent restatement changes made to the 2011 and 2010 periods as presented.

(4)   Amounts represent cumulative impact of restatement changes to periods prior to 2010.

Increase (decrease)	Summary of Correction of Actuarial Finance Errors – December 31, 2011 Income Statement and Comprehensive Income Impacts (1)
($ in millions)	Actuarial Finance
	Accounting for UL Type Products			Shadow Accounting			Loss Recognition			FIA			Other Actuarial			Total Actuarial Finance Errors (2)
REVENUES:
Premiums	$	—		$	—		$	—		$	—		$	—		$	—
Fee Income		(3.1	)		—			—			—			1.2			(1.9	)
Net investment income		—			—			—			—			0.3			0.3
Net realized investment gains (losses)		—			—			—			—			—			—
Total OTTI losses		—			—			—			—			—			—
Portion of OTTI losses recognized in OCI		—			—			—			—			—			—
Net OTTI losses recognized in earnings		—			—			—			—			—			—
Net realized investment gains (losses), excluding OTTI losses		—			—			—			(0.4	)		8.7			8.3
Net realized investment gains (losses)		—			—			—			(0.4	)		8.7			8.3
Total revenues	$	(3.1	)	$	—		$	—		$	(0.4	)	$	10.2		$	6.7
BENEFITS AND EXPENSES:
Policy benefits		50.6			—			(4.5	)		0.3			8.0			54.4
Policy acquisition cost amortization		(17.9	)					1.4			3.4			(5.6	)		(18.7	)
Other operating expenses		—			—			—			—			2.5			2.5
Total benefits and expenses		32.7			—			(3.1	)		3.7			4.9			38.2
Income (loss) from before income taxes		(35.8	)		—			3.1			(4.1	)		5.3			(31.5	)
Income tax expense (benefit)		—			—			—			—			—			—
Net income (loss)	$	(35.8	)	$	—		$	3.1		$	(4.1	)	$	5.3		$	(31.5	)
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$	(35.8	)	$	—		$	3.1		$	(4.1	)	$	5.3		$	(31.5	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes		0.3			(21.6	)		—			—			—			(21.3	)
Non-credit portion of OTTI losses recognized in OCI before income taxes		—			—			—			—			—			—
Other comprehensive income (loss) before income taxes		0.3			(21.6	)		—			—			—			(21.3	)
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses)		—			—			—			—			—			—
Non-credit portion of OTTI losses recognized     in OCI		—			—			—			—			—			—
Total income tax expense (benefit)		—			—			—			—			—			—
Other comprehensive income, net of tax		0.3			(21.6	)		—			—			—			(21.3	)
Comprehensive income (loss)	$	(35.5	)	$	(21.6	)	$	3.1		$	(4.1	)	$	5.3		$	(52.8	)

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Summary of Correction of Errors” in the following pages.

Increase (decrease)	Summary of Correction of Actuarial Finance Errors – December 31, 2010 Income Statement and Comprehensive Income Impacts (1)
($ in millions)	Actuarial Finance
	Accounting for UL Type Products			Shadow Accounting		Loss Recognition			FIA		Other Actuarial			Total Actuarial Finance Errors (2)
REVENUES:
Premiums	$	—		$	—	$	—		$	—	$	—		$	—
Fee Income		2.2			—		—			—		0.6			2.8
Net investment income		—			—		—			—		—			—
Net realized investment gains (losses)		—			—		—			—		—			—
Total OTTI losses		—			—		—			—		—			—
Portion of OTTI losses recognized in OCI		—			—		—			—		—			—
Net OTTI losses recognized in earnings		—			—		—			—		—			—
Net realized investment gains (losses), excluding OTTI losses		—			—		—			—		(6.6	)		(6.6	)
Net realized investment gains (losses)		—			—		—			—		(6.6	)		(6.6	)
Total revenues	$	2.2		$	—	$	—		$	—	$	(6.0	)	$	(3.8	)
BENEFITS AND EXPENSES:
Policy benefits		20.1			—		3.9			—		5.0			29.0
Policy acquisition cost amortization		24.1			—		—			—		8.9			33.0
Other operating expenses		—			—		—			—		(2.4	)		(2.4	)
Total benefits and expenses		44.2			—		3.9			—		11.5			59.6
Income (loss) from before income taxes		(42.0	)		—		(3.9	)		—		(17.5	)		(63.4	)
Income tax expense (benefit)		—			—		—			—		—			—
Net income (loss)	$	(42.0	)	$	—	$	(3.9	)	$	—	$	(17.5	)	$	(63.4	)
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$	(42.0	)	$	—	$	(3.9	)	$	—	$	(17.5	)	$	(63.4	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes		4.2			1.8		—			—		—			6.0
Non-credit portion of OTTI losses recognized in OCI before income taxes		—			—		—			—		—			—
Other comprehensive income (loss) before income taxes		4.2			1.8		—			—		—			6.0
Less: Income tax expense (benefit) related to:
Net unrealized investment gains		—			—		—			—		—			—
Non-credit portion of OTTI losses recognized     in OCI		—			—		—			—		—			—
Total income tax expense (benefit)		—			—		—			—		—			—
Other comprehensive income, net of tax		4.2			1.8		—			—		—			6.0
Comprehensive income (loss)	$	(37.8	)	$	1.8	$	(3.9	)	$		$	(17.5	)	$	(57.4	)

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Actuarial Finance Errors” which is further aggregated into the “Summary of Correction of Errors” in the following pages.

Summary of Correction of Investments Errors

Increase (decrease)	Summary of Correction of Investments Errors – December 31, 2011 Balance Sheet Impacts (1)
($ in millions)	Investments
	AFS Valuation			Derivative Valuation			Structured Securities			Total Investment Errors (2)
ASSETS:
Available-for-sale debt securities, at fair value	$	0.9		$	—		$	(35.1	)	$	(34.2	)
Limited partnerships and other investments		—			—			—			—
Policy loans, at unpaid principal balances		—			—			—			—
Derivative investments		—			(9.4	)		—			(9.4	)
Fair value investments		(0.5	)		—			35.1			34.6
Total investments		0.4			(9.4	)		—			(9.0	)
Cash and cash equivalents		—			—			—			—
Accrued investment income		—			—			—			—
Receivables		—			—			—			—
Deferred policy acquisition costs		—			(13.1	)		—			(13.1	)
Deferred income taxes, net		—			—			—			—
Receivables from related parties		—			—			—			—
Other assets		—			—			—			—
Separate account assets		—			—			—			—
Total assets	$	0.4		$	(22.5	)	$	—		$	(22.1	)
LIABILITIES:
Policy liabilities and accruals	$	—		$	—		$	—		$	—
Deferred income taxes, net		—			—			—			—
Policyholder deposit funds		—			—			—			—
Deferred income tax, net
Payable to related parties		—			—			—			—
Other liabilities		—			—			—			—
Separate account liabilities		—			—			—			—
Total liabilities		—			—			—			—
STOCKHOLDER’S EQUITY:
Common stock		—			—			—			—
Additional paid-in capital		—			—			—			—
Accumulated other comprehensive loss		14.4			—			(0.4	)		14.0
Accumulated deficit		0.9			(8.0	)		1.1			(6.0	)
Treasury stock		—			—			—			—
Total stockholder’s equity (3)		15.3			(8.0	)		0.7			8.0
Total stockholder’s equity - cumulative impact (4)		(14.9	)		(14.5	)		(0.7	)		(30.1	)
Total stockholder’s equity - impact		0.4			(22.5	)		—			(22.1	)
Total liabilities and stockholder’s equity	$	0.4		$	(22.5	)	$	—		$	(22.1	)

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which is further aggregated into the “Summary of Correction of Errors” in the following pages.

(3)	Amounts represent restatement changes made to the 2011 and 2010 periods as presented.
(4)	Amounts represent cumulative impact of restatement changes made to periods prior to 2010.

Increase (decrease)	Summary of Correction of Investments Errors – December 31, 2011 Income Statement and Comprehensive Income Impacts (1)
($ in millions)	Investments
	AFS Valuation		Derivative Valuation			Structured Securities		Total Investment Errors (2)
REVENUES:
Premiums	$	—	$	—		$	—	$	—
Fee Income		—		—			—		—
Net investment income		0.4		—			0.1		0.5
Net realized investment gains (losses):
Total OTTI losses		—		—			—		—
Portion of OTTI losses recognized in OCI		—		—			—		—
Net OTTI losses recognized in earnings		—		—			—		—
Net realized investment gains (losses), excluding OTTI		—		(6.3	)		—		(6.3	)
Net realized investment gains (losses)		—		(6.3	)		—		(6.3	)
Total revenues		0.4		(6.3	)		0.1		(5.8	)
BENEFITS AND EXPENSES:
Policy benefits		—		—			—		—
Policy acquisition cost amortization		—		(0.6	)		—		(0.6	)
Other operating expenses		—		—			—		—
Total benefits and expenses		—		(0.6	)		—		(0.6	)
Income (loss) from before income taxes		0.4		(5.7	)		0.1		(5.2	)
Income tax expense (benefit)		—		—			—		—
Net income (loss)	$	0.4	$	(5.7	)	$	0.1	$	(5.2	)
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$	0.4	$	(5.7	)	$	0.1	$	(5.2	)
Other comprehensive income (loss) before income taxes
Net unrealized investment gains before income taxes		5.3		—			0.6		5.9
Non-credit portion of OTTI losses recognized in OCI before income taxes		—		—			—		—
Other comprehensive income (loss) before income taxes		5.3		—			0.6		5.9
Less: Income tax expense (benefit) related to
Net unrealized investment gains		—		—			—		—
Non-credit portion of OTTI losses recognized     in OCI		—		—			—		—
Total income tax expense (benefit)		—		—			—		—
Other comprehensive income, net of tax		5.3		—			0.6		5.9
Comprehensive income (loss)	$	5.7	$	(5.7	)	$	0.7	$	0.7

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which is further aggregated into the “Summary of Correction of Errors” in the following pages.

Increase (decrease)	Summary of Correction of Investments Errors – December 31, 2010 Income Statement and Comprehensive Income Impacts (1)
($ in millions)	Investments
	AFS Valuation		Derivative Valuation			Structure Securities			Total Investment Errors (2)
REVENUES:
Premiums	$	—	$	—		$	—		$	—
Fee Income		—		—			—			—
Net investment income		0.5		—			(0.5	)		—
Net realized investment gains (losses):
Total OTTI losses		—		—			1.5			1.5
Portion of OTTI losses recognized in OCI		—		—			—			—
Net OTTI losses recognized in earnings		—		—			1.5			1.5
Net realized investment gains (losses), excluding OTTI		—		0.6			—			0.6
Net realized investment gains (losses)		—		0.6			1.5			2.1
Total revenues		0.5		0.6			1.0			2.1
BENEFITS AND EXPENSES:
Policy benefits		—		—			—			—
Policy acquisition cost amortization		—		2.9			—			2.9
Other operating expenses		—		—			—			—
Total benefits and expenses		—		2.9			—			2.9
Income (loss) from before income taxes		0.5		(2.3	)		1.0			(0.8	)
Income tax expense (benefit)		—		—			—			—
Net income (loss)	$	0.5	$	(2.3	)	$	1.0		$	(0.8	)
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$	0.5	$	(2.3	)	$	1.0		$	(0.8	)
Other comprehensive income (loss) before income taxes
Net unrealized investment gains before income taxes		9.1		—			(1.0	)		8.1
Non-credit portion of OTTI losses recognized in OCI before income taxes		—		—			—			—
Other comprehensive income (loss) before income taxes		9.1		—			(1.0	)		8.1
Less: Income tax expense (benefit) related to
Net unrealized investment gains		—		—			—			—
Non-credit portion of OTTI losses recognized     in OCI		—		—			—			—
Total income tax expense (benefit)		—		—			—			—
Other comprehensive income, net of tax		9.1		—			(1.0	)		8.1
Comprehensive income (loss)	$	9.6	$	(2.3	)	$	—		$	7.3

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Amounts represent the total “Summary of Correction of Investments Errors” which is further aggregated into the “Summary of Correction of Errors” in the following pages.

Restated and amended consolidated statement of cash flows

Increase (decrease)	For the year ended
($ in millions)	December 31,
	2011				2010
Statement of Cash Flows
Cash provided by (used for) operating activities		$	(171.1	)		$	(159.7	)
Cash provided by (used for) investing activities			16.3				(20.6	)
Cash provided by (used for) financing activities			153.8				163.1

Consolidated Summary of Correction of Errors

Increase (decrease)	Summary of Correction of Errors – December 31, 2011 Balance Sheet Impacts (1)
						Reinsurance Accounting						Changes in Classification
($ in millions)	Total Actuarial Finance (2)		Total Investments (3)			Third-party reinsurance			Related party  reinsurance
												Cash and Suspense			Reinsurance		Sales Inducement			Other Restatement Adjustments
																							Total Correction of Errors (4)
ASSETS:
Available-for-sale   debt securities, at fair value	$	—	$	(34.2	)	$	—		$	—		$	—		$	—	$	—		$	(0.1	)	$	(34.3	)
Limited partnerships and   other investments		—		—			—			—			—			—		—			(0.3	)		(0.3	)
Policy loans,    at unpaid principal    balances		—		—			—			—			—			—		—			—			—
Derivative investments		—		(9.4	)		—			—			—			—		—			—			(9.4	)
Fair value investments		—		34.6			—			—			—			—		—			(0.1	)		34.5
Total investments		—		(9.0	)		—			—			—			—		—			(0.5	)		(9.5	)
Cash and cash equivalents		—		—			—			—			(18.0	)		—		—			—			(18.0	)
Accrued investment income		—		—			—			—			—			—		—			—			—
Receivables		3.0		—			—			(40.9	)		9.2			58.1		—			1.8			31.2
Deferred policy acquisition costs		50.1		(13.1	)		—			(3.6	)		—			—		(42.3	)		(0.1	)		(9.0	)
Deferred income taxes, net		—		—			—			—			—			—		—			29.4			29.4
Receivables from related parties		—		—			—			—			—			—		—			—			—
Other assets		44.3		—			(38.6	)		—			9.1			—		42.3			—			57.1
Separate account assets		—		—			—			—			—			—		—			(0.2	)		(0.2	)
Total assets	$	97.4	$	(22.1	)	$	(38.6	)	$	(44.5	)	$	0.3		$	58.1	$	—		$	30.4		$	81.0

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors" from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Statement of Comprehensive Income” reflected in the tables on the following pages.

					Reinsurance Accounting				Changes in Classification
Increase (decrease)	Total Actuarial Finance (2)		Total Investments (3)		Third-party reinsurance		Related party reinsurance
($ in millions)									Cash and Suspense		Reinsurance		Sales Inducement		Other Restatement Adjustments		Total Correction of Errors (4)
LIABILITIES:
Policy liabilities and accruals	$	203.1	$	—	$	—	$	37.8	$	—	$	58.1	$	—	$	1.8	$	300.8
Policyholder deposit funds		3.2		—		—		—		—		—		—		—		3.2
Deferred income taxes, net		—		—		—		—		—		—		—		(6.8)		(6.8)
Payable to related parties		—		—		—		—		—		—		—		—		—
Other liabilities		—		—		—		—		0.3		—		—		(30.6)		(30.3)
Separate account liabilities		—		—		—		—		—		—		—		(0.2)		(0.2)
Total liabilities		206.3		—		—		37.8		0.3		58.1		—		(35.8)		266.7
STOCKHOLDER’S EQUITY:
Common stock		—		—		—		—		—		—		—		—		—
Additional paid-in capital		—		—		—		—		—		—		—		—		—
Accumulated other   comprehensive loss		(15.3)		14.0		—		—		—		—		—		—		(1.3)
Accumulated deficit		(94.9)		(6.0)		3.0		(40.6)		—		—		—		12.4		(126.1)
Treasury stock		—		—		—		—		—		—		—		—		—
Total stockholder’s equity –   periods presented (5)		(110.2)		8.0		3.0		(40.6)		—		—		—		12.4		(127.4)
Total stockholder’s equity –   cumulative impact (6)		1.3		(30.1)		(41.6)		(41.7)		—		—		—		53.8		(58.3)
Total stockholder’s equity –impact		(108.9)		(22.1)		(38.6)		(82.3)		—		—		—		66.2		(185.7)
Total liabilities and   stockholder’s equity	$	97.4	$	(22.1)	$	(38.6)	$	(44.5)	$	0.3	$	58.1	$	—	$	30.4	$	81.0

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors" from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Statement of Comprehensive Income” reflected in the tables on the following pages.

(5)	Amounts represent restatement changes made to the 2011 and 2010 periods as presented.
(6)	Amounts represent cumulative impact of restatement changes made to periods prior to 2010.

Increase (decrease)	Summary of Correction of Errors – December 31, 2011 Income Statement and Comprehensive Income Impacts (1)
($ in millions)
					Reinsurance Accounting
	Total Actuarial Finance (2)		Total Investments (3)		Third-party reinsurance		Related party  reinsurance		Other Restatement Adjustments		Total Correction of Errors (4)
REVENUES
Premiums	$	—	$	—	$	—	$	—	$	—	$	—
Insurance and investment product fees		(1.9)		—		—		1.4		—		(0.5)
Net investment income		0.3		0.5		—		—		—		0.8
Net realized investment gains (losses):
Total OTTI losses		—		—		—		—		(0.8)		(0.8)
Portion of OTTI losses recognized in OCI		—		—		—		—		0.4		0.4
Net OTTI losses recognized in earnings		—		—		—		—		(0.4)		(0.4)
Net realized investment gains (losses), excluding OTTI losses		8.3		(6.3)		—		—		(0.1)		1.9
Net realized investment gains (losses)		8.3		(6.3)		—		—		(0.5)		1.5
Total revenues		6.7		(5.8)		—		1.4		(0.5)		1.8
BENEFITS AND EXPENSES
Policy benefits		54.4		—		3.3		(9.7)		(0.4)		47.6
Policy acquisition cost amortization		(18.7)		(0.6)		—		19.1		0.2		—
Other operating expenses		2.5		—		—		—		(1.4)		1.1
Total benefits and expenses		38.2		(0.6)		3.3		9.4		(1.6)		48.7
Income (loss) before income taxes		(31.5)		(5.2)		(3.3)		(8.0)		1.1		(46.9)
Income tax expense (benefit)		—		—		—		—		5.2		5.2
Net income (loss)	$	(31.5)	$	(5.2)	$	(3.3)	$	(8.0)	$	(4.1)	$	(52.1)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$	(31.5)	$	(5.2)	$	(3.3)	$	(8.0)	$	(4.1)	$	(52.1)
Other comprehensive income (loss) before income taxes (5)
Net unrealized investment gains before income taxes (5)		(21.3)		5.9		—		—		0.5		(14.9)
Non-credit portion of OTTI losses recognized in OCI before income taxes (5)		—		—		—		—		(0.3)		(0.3)
Other comprehensive income (loss) before income taxes		(21.3)		5.9		—		—		0.2		(15.2)
Less: Income tax expense (benefit) related to:
Net unrealized investment gains (losses) (5)		—		—		—		—		(7.9)		(7.9)
Non-credit portion of OTTI losses recognized     in OCI		—		—		—		—		(0.1)		(0.1)
Total income tax expense (benefit)		—		—		—		—		(8.0)		(8.0)
Other comprehensive income, net of tax		(21.3)		5.9		—		—		8.2		(7.2)
Comprehensive income (loss)	$	(52.8)	$	0.7	$	(3.3)	$	(8.0)	$	4.1	$	(59.3)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors" from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Statement of Comprehensive Income” reflected in the tables on the following pages.

(5)   In addition to adjustments described within this footnote the correction of errors column contains reclassifications related to changes in presentation of components of other comprehensive income.

Increase (decrease)	Summary of Correction of Errors – December 31, 2010 Income Statement and Comprehensive Income Impacts (1)
($ in millions)
							Reinsurance Accounting
	Total Actuarial Finance (2)			Total Investments (3)			Third-party reinsurance			Related party  reinsurance			Other Restatement Adjustments			Total Correction of Errors (4)
REVENUES
Premiums	$	—		$	—		$	—		$	—		$	—		$	—
Insurance and investment product fees		2.8			—			—			—			—			2.8
Net investment income		—			—			—			—			0.5			0.5
Net realized investment gains (losses):
Total OTTI losses		—			1.5			—			—			(2.6	)		(1.1	)
Portion of OTTI losses recognized in OCI		—			—			—			—			1.1			1.1
Net OTTI losses recognized in earnings		—			1.5			—			—			(1.5	)		—
Net realized investment gains (losses), excluding OTTI losses		(6.6	)		0.6			—			—			1.2			(4.8	)
Net realized investment gains (losses)		(6.6	)		2.1			—			—			(0.3	)		(4.8	)
Total revenues		(3.8	)		2.1			—			—			0.2			(1.5	)
BENEFITS AND EXPENSES
Policy benefits		29.0			—			(6.3	)		25.2			(0.3	)		47.6
Policy acquisition cost amortization		33.0			2.9			—			9.5			0.2			45.6
Other operating expenses		(2.4	)		—			—			(2.1	)		(2.2	)		(6.7	)
Total benefits and expenses		59.6			2.9			(6.3	)		32.6			(2.3	)		86.5
Income (loss) before income taxes		(63.4	)		(0.8	)		6.3			(32.6	)		2.5			(88.0	)
Income tax expense (benefit)		—			—			—			—			(14.0	)		(14.0	)
Net income (loss)	$	(63.4	)	$	(0.8	)	$	6.3		$	(32.6	)	$	16.5		$	(74.0	)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$	(63.4	)	$	(0.8	)	$	6.3		$	(32.6	)	$	16.5		$	(74.0	)
Other comprehensive income (loss) before income taxes:
Net unrealized investment gains before income taxes		6.0			8.1			—			—			(9.8	)		4.3
Non-credit portion of OTTI losses recognized in OCI before income taxes		—			—			—			—			9.3			9.3
Other comprehensive income (loss) before income taxes		6.0			8.1			—			—			(0.5	)		13.6
Less: Income tax expense (benefit) related to:
Net unrealized investment gains		—			—			—			—			4.4			4.4
Non-credit portion of OTTI losses recognized     in OCI		—			—			—			—			3.3			3.3
Total income tax expense (benefit)		—			—			—			—			7.7			7.7
Other comprehensive income, net of tax		6.0			8.1			—			—			(8.2	)		5.9
Comprehensive income (loss)	$	(57.4	)	$	7.3		$	6.3		$	(32.6	)	$	8.3		$	(68.1	)

———————

(1)	All amounts are shown before income taxes, unless otherwise noted.
(2)	Represents “Summary of Correction of Actuarial Finance Errors” from the previous pages of this Note.

(3)	Represents “Summary of Correction of Investments Errors" from the previous pages of this Note.
(4)	Amounts represent total correction of errors which is also presented in the “Statement of Comprehensive Income” reflected in the tables on the following pages.

Restatement of Consolidated Financial Statements

	Balance Sheet
($ in millions)	As of December 31, 2011
	As previously reported			Correction of errors(1)			Adjusted prior to the Retrospective Adoption			Retrospective Adoption(2)			As restated and amended
ASSETS:
Available-for-sale debt securities, at fair value	$	2,546.4		$	(34.3	)	$	2,512.1		$	—		$	2,512.1
Limited partnerships and other investments		5.0			(0.3	)		4.7			—			4.7
Policy loans, at unpaid principal balances		62.5			—			62.5			—			62.5
Derivative investments		113.2			(9.4	)		103.8			—			103.8
Fair value option investments		7.3			34.5			41.8			—			41.8
Total investments		2,734.4			(9.5	)		2,724.9			—			2,724.9
Cash and cash equivalents		67.5			(18.0	)		49.5			—			49.5
Accrued investment income		18.6			—			18.6			—			18.6
Receivables		382.4			31.2			413.6			—			413.6
Deferred policy acquisition costs		576.6			(9.0	)		567.6			(78.5	)		489.1
Deferred income taxes		—			29.4			29.4			—			29.4
Receivables from related parties		4.8			—			4.8			—			4.8
Other assets		52.5			57.1			109.6			(1.0	)		108.6
Separate account assets		2,547.0			(0.2	)		2,546.8			—			2,546.8
Total assets	$	6,383.8		$	81.0		$	6,464.8		$	(79.5	)	$	6,385.3
LIABILITIES:
Policy liabilities and accruals (3)	$	1,343.9		$	300.8		$	1,644.7		$	(43.4	)	$	1,601.3
Policyholder deposit funds		1,721.2			3.2			1,724.4			—			1,724.4
Deferred income taxes		6.8			(6.8	)		—			—			—
Payable to related parties		30.0			0.0			30.0			—			30.0
Other liabilities		89.1			(30.3	)		58.8			—			58.8
Separate account liabilities		2,547.0			(0.2	)		2,546.8			—			2,546.8
Total liabilities		5,738.0			266.7			6,004.7			(43.4	)		5,961.3
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 loss		6.2			0.2			6.4			(3.8	)		2.6
Accumulated deficit		(165.1	)		(185.9	)		(351.0	)		(32.3	)		(383.3	)
Total stockholder’s equity		645.8			(185.7	)		460.1			(36.1	)		424.0
Total liabilities and stockholder’s equity	$	6,383.8		$	81.0		$	6,464.8		$	(79.5	)	$	6,385.3

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance. See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance, have been updated from those originally disclosed in the 2012 first quarter Form 10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.

(3)   Included within policyholder liabilities and accruals is the post-ASU gross profits followed by losses reserve of $207.8 million. The corresponding net post-ASU amount of $193.6 million reported within the financial statements includes $(14.2) million of shadow profits followed by losses, both of which are discussed further within the “Actuarial Finance” section of this Note.

	Statement of Comprehensive Income
($ in millions)	As of and for the year ended December 31, 2011
							Adjusted
							prior to the
	As previously			Correction			retrospective			Retrospective			As restated
	reported			of errors(1)			adoption			adoption(2)			and amended
REVENUES:
Premiums	$	2.3		$	-		$	2.3		$	—		$	2.3
Insurance and investment product fees		394.8			(0.5	)		394.3			—			394.3
Net investment income		100.3			0.8			101.1			—			101.1
Net realized investment gains (losses):
Total OTTI losses		(9.3	)		(0.8	)		(10.1	)		—			(10.1	)
Portion of OTTI losses recognized in OCI		6.5			0.4			6.9			—			6.9
Net OTTI losses recognized in earnings		(2.8	)		(0.4	)		(3.2	)		—			(3.2	)
Net realized investment gains (losses),     excluding OTTI losses		(18.1	)		1.9			(16.2	)		—			(16.2	)
Net realized investment losses		(20.9	)		1.5			(19.4	)		—			(19.4	)
Total revenues		476.5			1.8			478.3			—			478.3
BENEFITS AND EXPENSES:
Policy benefits		245.6			47.6			293.2			9.4			302.6
Policy acquisition cost amortization		133.2			—			133.2			(23.7	)		109.5
Other operating expenses		90.1			1.1			91.2			1.3			92.5
Total benefits and expenses		468.9			48.7			517.6			(13.0	)		504.6
Income (loss) before income taxes		7.6			(46.9	)		(39.3	)		13.0			(26.3	)
Income tax expense (benefit)		(9.4	)		5.2			(4.2	)		(2.1	)		(6.3	)
Net income (loss)	$	17.0		$	(52.1	)	$	(35.1	)	$	15.1		$	(20.0	)
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$	17.0		$	(52.1	)	$	(35.1	)	$	15.1		$	(20.0	)
Other comprehensive income (loss)     before income tax (3)
Net unrealized investment gains before income tax		34.4			(14.9	)		19.5			6.2			25.7
Non-credit portion of OTTI losses recognized     in OCI before income tax		(5.7	)		(0.3	)		(6.0	)		—			(6.0	)
Other comprehensive income (loss)       before income taxes		28.7			(15.2	)		13.5			6.2			19.7
Less: Income tax expense (benefit) related to: (3)
Net unrealized investment gains		12.0			(7.9	)		4.1			2.2			6.3
Non-credit portion of OTTI losses recognized     in OCI		(2.0	)		(0.1	)		(2.1	)		—			(2.1	)
Total income tax expense (benefit)		10.0			(8.0	)		2.0			2.2			4.2
Other comprehensive income, net of tax		18.7			(7.2	)		11.5			4.0			15.5
Comprehensive income (loss)	$	35.7		$	(59.3	)	$	(23.6	)	$	19.1		$	(4.5	)

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance. See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance, have been updated from those originally disclosed in the 2012 first quarter Form10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.

(3)   In addition to adjustments described within this footnote the correction of errors column contains reclassifications related to changes in presentation of components of other comprehensive income.

	Statement of Comprehensive Income
($ in millions)	As of and for the year ended December 31, 2010
							Adjusted
							prior to the
	As previously			Correction			retrospective			Retrospective			As restated
	reported			of errors(1)			adoption			adoption(2)			and amended
REVENUES:
Premiums	$	3.8		$	—		$	3.8		$	—		$	3.8
Insurance and investment product fees		409.5			2.8			412.3			—			412.3
Net investment income		73.7			0.5			74.2			—			74.2
Net realized investment gains (losses):
Total OTTI losses		(19.8	)		(1.1	)		(20.9	)		—			(20.9	)
Portion of OTTI losses recognized in OCI		9.0			1.1			10.1			—			10.1
Net OTTI losses recognized in earnings		(10.8	)		—			(10.8	)		—			(10.8	)
Net realized investment gains (losses),     excluding OTTI losses		(6.8	)		(4.8	)		(11.6	)		—			(11.6	)
Net realized investment losses		(17.6	)		(4.8	)		(22.4	)		—			(22.4	)
Total revenues		469.4			(1.5	)		467.9			—			467.9
BENEFITS AND EXPENSES:
Policy benefits		213.4			47.6			261.0			10.4			271.4
Policy acquisition cost amortization		192.5			45.6			238.1			(40.1	)		198.0
Other operating expenses		99.1			(6.7	)		92.4			2.0			94.4
Total benefits and expenses		505.0			86.5			591.5			(27.7	)		563.8
Income (loss) before income taxes		(35.6	)		(88.0	)		(123.6	)		27.7			(95.9	)
Income tax expense (benefit)		(10.7	)		(14.0	)		(24.7	)		(7.6	)		(32.3	)
Net income (loss)	$	(24.9	)	$	(74.0	)	$	(98.9	)	$	35.3		$	(63.6	)
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$	(24.9	)	$	(74.0	)	$	(98.9	)	$	35.3		$	(63.6	)
Other comprehensive income (loss)     before income tax (3)
Net unrealized investment gains before income tax		(2.4	)		4.3			1.9			22.0			23.9
Non-credit portion of OTTI losses recognized     in OCI before income tax		(4.2	)		9.3			5.1			—			5.1
Other comprehensive income (loss)       before income taxes		(6.6	)		13.6			7.0			22.0			29.0
Less: Income tax expense (benefit) related to: (3)
Net unrealized investment gains		(12.4	)		4.4			(8.0)			15.4			7.4
Non-credit portion of OTTI losses recognized     in OCI		(1.5	)		3.3			1.8			—			1.8
Total income tax expense (benefit)		(13.9	)		7.7			(6.2)			15.4			9.2
Other comprehensive income, net of tax		7.3			5.9			13.2			6.6			19.8
Comprehensive income (loss)	$	(17.6	)	$	(68.1	)	$	(85.7	)	$	41.9		$	(43.8	)

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance. See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance, have been updated from those originally disclosed in the 2012 first quarter  Form 10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.

(3)   In addition to adjustments described within this footnote the correction of errors column contains reclassifications related to changes in presentation of components of other comprehensive income.

	Statement of Cash Flows
($ in millions)	For the period ended December 31, 2011
							Adjusted
							prior to the
	As previously			Correction			retrospective			Retrospective			As restated
	reported			of errors(1)			adoption			adoption(2)			and amended
OPERATING ACTIVITIES:
Net income (loss)	$	17.0		$	(52.1	)	$	(35.1	)	$	15.1		$	(20.0	)
Net realized investment losses		20.9			(1.5	)		19.4			—			19.4
Policy acquisition costs deferred		(150.5	)		48.5			(102.0	)		1.3			(100.7	)
Amortization of policy acquisition costs deferred		133.2			—			133.2			(23.7	)		109.5
Interest credited		—			60.9			60.9			—			60.9
Equity in earnings of   limited partnerships and other investments		—			(0.2	)		(0.2	)		—			(0.2	)
Change in:
Accrued investment income		(9.0	)		(3.2	)		(12.2	)		—			(12.2	)
Deferred income taxes		(16.6	)		11.9			(4.7	)		(2.2	)		(6.9	)
Receivables		(23.2	)		12.3			(10.9	)		—			(10.9	)
Policy liabilities and accruals		34.4			(172.2	)		(137.8	)		9.5			(128.3	)
Due to/from affiliate		—			21.1			21.1			—			21.1
Other operating activities, net		42.6			(96.6	)		(54.0	)		—			(54.0	)
Cash provided by (used for) operating activities		48.8			(171.1	)		(122.3	)		—			(122.3	)
INVESTING ACTIVITIES:
Purchases of:
Available-for-sale debt securities		(1,516.5	)		57.3			(1,459.2	)		—			(1,459.2	)
Derivative instruments		(30.6	)		(15.5	)		(46.1	)		—			(46.1	)
Fair option investments		—			(34.3	)		(34.3	)		—			(34.3	)
Other investments		(1.2	)		1.2			—			—			—
Sales, repayments and maturities of:
Available-for-sale debt securities		562.9			(24.5	)		538.4			—			538.4
Derivative instruments		35.3			28.5			63.8			—			63.8
Fair value investments		4.6			3.1			7.7			—			7.7
Other investments		0.1			(0.1	)		—			—			—
Contributions to limited partnerships		—			(1.2	)		(1.2	)		—			(1.2	)
Distributions from limited partnerships		—			0.1			0.1			—			0.1
Policy loans, net		(5.2	)		2.3			(2.9	)		—			(2.9	)
Other investing activities, net		—			(0.6	)		(0.6	)		—			(0.6	)
Cash provided by (used for) investing activities		(950.6	)		16.3			(934.3	)		—			(934.3	)
FINANCING ACTIVITIES:
Policyholder deposit fund deposits		1,246.5			(21.1	)		1,225.4			—			1,225.4
Policyholder deposit fund withdrawals		(328.3	)		(136.7	)		(465.0	)		—			(465.0	)
Net transfers to/from separate accounts		—			311.6			311.6			—			311.6
Cash provided by (used for) financing activities		918.2			153.8			1,072.0			—			1,072.0
Change in cash and cash equivalents		16.4			(1.0	)		15.4			—			15.4
Cash and cash equivalents, beginning of year		51.1			(17.0	)		34.1			—			34.1
Cash and cash equivalents, end of year	$	67.5		$	(18.0	)	$	49.5		$	—		$	49.5
Non-Cash Transactions During the Year
Investment exchanges	$	—		$	26.4		$	26.4		$	—		$	26.4

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance. See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance, have been updated from those originally disclosed in the 2012 first quarter Form 10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.

	Statement of Cash Flows
($ in millions)	For the period ended December 31, 2010
							Adjusted
							prior to the
	As previously			Correction			retrospective			Retrospective			As restated
	reported			of errors(1)			adoption			adoption(2)			and amended
OPERATING ACTIVITIES:
Net income (loss)	$	(24.9	)	$	(74.0	)	$	(98.9	)	$	35.3		$	(63.6	)
Net realized investment losses		17.6			4.8			22.4			—			22.4
Policy acquisition costs deferred		(24.0	)		12.0			(12.0	)		1.9			(10.1	)
Amortization of policy acquisition costs deferred		192.5			45.6			238.1			(40.1	)		198.0
Interest credited		—			63.5			63.5			—			63.5
Equity in earnings of   limited partnerships and other investments		—			(0.3	)		(0.3	)		—			(0.3	)
Change in:
Accrued investment income		(8.6	)		3.6			(5.0	)		—			(5.0	)
Deferred income taxes		0.4			(3.3	)		(2.9	)		(7.6	)		(10.5	)
Receivables		(44.5	)		62.2			17.7			—			17.7
Policy liabilities and accruals		(75.7	)		(242.1	)		(317.8	)		10.5			(307.3	)
Due to/from affiliate		—			16.8			16.8			—			16.8
Other operating activities, net		(9.3	)		(48.5	)		(57.8	)		—			(57.8	)
Cash provided by (used for) operating activities		23.5			(159.7	)		(136.2	)		—			(136.2	)
INVESTING ACTIVITIES:
Purchases of:
Available-for-sale debt securities		(760.2	)		3.9			(756.3	)		—			(756.3	)
Derivative instruments		(73.5	)		8.1			(65.4	)		—			(65.4	)
Fair value investments		—			(3.1	)		(3.1	)		—			(3.1	)
Other investments		(2.7	)		2.7			—			—			—
Sales, repayments and maturities of:
Available-for-sale debt securities		600.8			(14.0	)		586.8			—			586.8
Derivative instruments		35.8			(13.5	)		22.3			—			22.3
Fair value investments		—			2.4			2.4			—			2.4
Other investments		0.2			(0.2	)		—			—			—
Contributions to limited partnerships		—			(2.0	)		(2.0	)		—			(2.0	)
Distributions from limited partnerships		—			0.1			0.1			—			0.1
Policy loans, net		(7.7	)		1.9			(5.8	)		—			(5.8	)
Other investing activities, net		—			(6.9	)		(6.9	)		—			(6.9	)
Cash used for investing activities		(207.3	)		(20.6	)		(227.9	)		—			(227.9	)
FINANCING ACTIVITIES:
Policyholder deposit fund deposits		537.6			(47.2	)		490.4			—			490.4
Policyholder deposit fund withdrawals		(400.2	)		(73.9	)		(474.1	)		—			(474.1	)
Net transfers to/from separate accounts		—			284.2			284.2			—			284.2
Capital contributions from parent		14.0			—			14.0			—			14.0
Cash provided by financing activities		151.4			163.1			314.5			—			314.5
Change in cash and cash equivalents		(32.4	)		(17.2	)		(49.6	)		—			(49.6	)
Cash and cash equivalents, beginning of year		83.5			0.2			83.7			—			83.7
Cash and cash equivalents, end of year	$	51.1		$	(17.0	)	$	34.1		$	—		$	34.1
Non-Cash Transactions During the Year
Investment exchanges	$	—		$	15.0		$	15.0		$	—		$	15.0

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance. See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance, have been updated from those originally disclosed in the 2012 first quarter Form 10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.

	Statement of Changes in Stockholder’s Equity
($ in millions)	For the period ended December 31, 2011
							Adjusted
							prior to the
	As previously			Correction			retrospective			Retrospective			As restated
	reported			of errors(1)			adoption			adoption(2)			and amended
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		$	0.0		$	802.2		$	0.0		$	802.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
Balance, beginning of period	$	(12.5	)	$	7.4		$	(5.1	)	$	(7.8	)	$	(12.9	)
Adjustment for initial application of     accounting changes		—			—			—			—			—
Other comprehensive income		18.7			(7.2	)		11.5			4.0			15.5
Balance, end of period	$	6.2		$	0.2		$	6.4		$	(3.8	)	$	2.6
RETAINED EARNINGS (ACCUMULATED DEFICIT):
Balance, beginning of period	$	(182.1	)	$	(133.8	)	$	(315.9	)	$	(47.4	)	$	(363.3	)
Adjustment for initial application of     accounting changes		—			—			—			—			—
Net income (loss)		17.0			(52.1	)		(35.1	)		15.1			(20.0	)
Balance, end of period	$	(165.1	)	$	(185.9	)	$	(351.0	)	$	(32.3	)	$	(383.3	)
TOTAL STOCKHOLDER’S EQUITY:
Balance, beginning of period	$	610.1		$	(126.4	)	$	483.7		$	(55.2	)	$	428.5
Change in stockholder’s equity		35.7			(59.3	)		(23.6	)		19.1			(4.5	)
Balance, end of period	$	645.8		$	(185.7	)	$	460.1		$	(36.1	)	$	424.0

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance. See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance, have been updated from those originally disclosed in the 2012 first quarter Form 10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.

	Statement of Changes in Stockholder’s Equity
($ in millions)	For the period ended December 31, 2010
							Adjusted
							prior to the
	As previously			Correction			retrospective			Retrospective			As restated
	reported			of errors(1)			adoption			adoption(2)			and amended
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	$	788.2		$	—		$	788.2		$	—		$	788.2
Capital contributions from parent		14.0			—			14.0			—			14.0
Balance, end of period	$	802.2		$	—		$	802.2		$	—		$	802.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
Balance, beginning of period	$	(20.1	)	$	1.5		$	(18.6	)	$	(14.4	)	$	(33.0	)
Adjustment for initial application of     accounting changes		0.3			—			0.3			—			0.3
Other comprehensive income		7.3			5.9			13.2			6.6			19.8
Balance, end of period	$	(12.5	)	$	7.4		$	(5.1	)	$	(7.8	)	$	(12.9	)
RETAINED EARNINGS (ACCUMULATED DEFICIT):
Balance, beginning of period	$	(156.6	)	$	(59.2	)	$	(215.8	)	$	(82.7	)	$	(298.5	)
Adjustment for initial application of     accounting changes		(0.6	)		(0.6	)		(1.2	)		—			(1.2	)
Net income (loss)		(24.9	)		(74.0	)		(98.9	)		35.3			(63.6	)
Balance, end of period	$	(182.1	)	$	(133.8	)	$	(315.9	)	$	(47.4	)	$	(363.3	)
TOTAL STOCKHOLDER’S EQUITY:
Balance, beginning of period	$	614.0		$	(57.7	)	$	556.3		$	(97.1	)	$	459.2
Adjustment for initial application of     accounting changes		13.7			(0.6	)		13.1			0.0			13.1
Change in stockholder’s equity		(17.6	)		(68.1	)		(85.7	)		41.9			(43.8	)
Balance, end of period	$	610.1		$	(126.4	)	$	483.7		$	(55.2	)	$	428.5

———————

(1)	Adjustments related to the correction of errors reflect amounts prior to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance. See footnote 2 below for additional information regarding these amounts and the retrospective adoption.
(2)	Adjustments related to the retrospective adoption of amended guidance to ASC 944, Financial Services – Insurance, have been updated from those originally disclosed in the 2012 first quarter Form 10-Q filing to reflect the correction of errors identified related to the adoption of the amended guidance as well as indirect impact of the correction of errors associated with the restatement.