8. Separate Accounts, Death Benefits and Other Insurance Benefit Features and Embedded Product Derivatives (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Separate Account Investments of Account Balances of Variable Annuity Contracts with Guarantees

Separate Account Investments of Account Balances of Variable Annuity Contracts with Guarantees:	December 31,
($ in millions)	2012		2011
Debt securities	$	369.3	$	395.5
Equity funds		1,516.3		1,537.7
Other		49.7		58.3
Total	$	1,935.3	$	1,991.5

Changes in Guaranteed Insurance Benefit Liability Balances

Changes in Guaranteed Insurance Benefit Liability Balances:	Year Ended
($ in millions)	December 31, 2012
	Annuity				Annuity
	GMDB				GMIB
Liability balance as of January 1, 2012		$	10.8			$	17.2
Incurred			1.0				3.8
Paid			(1.0	)			—
Assumption unlocking			—				(0.2	)
Liability balance as of December 31, 2012		$	10.8			$	20.8

Changes in Guaranteed Insurance Benefit Liability Balances:	Year Ended
($ in millions)	December 31, 2011
	As restated and amended
	Annuity				Annuity
	GMDB				GMIB
Liability balance as of January 1, 2011		$	11.2			$	17.5
Incurred			1.5				(0.7	)
Paid			(1.9	)			—
Assumption unlocking			—				0.4
Liability balance as of December 31, 2011		$	10.8			$	17.2

Changes in Guaranteed Insurance Benefit Liability Balances:	Year Ended
($ in millions)	December 31, 2010
	As restated and amended
	Annuity				Annuity
	GMDB				GMIB
Liability balance as of January 1, 2010		$	13.2			$	15.8
Incurred			1.8				2.3
Paid			(3.8	)			—
Assumption unlocking			—				(0.6	)
Liability balance as of December 31, 2010		$	11.2			$	17.5

Variable Annuity GMDB Benefits

GMDB and GMIB Benefits by Type:			NAR		Average
($ in millions)	Account		after		Attained Age
	Value		Reinsurance		of Annuitant
2012
GMDB return of premium	$	755.9	$	5.7		62
GMDB step up		1,412.4		21.7		62
GMDB earnings enhancement benefit (“EEB”)		37.4		0.1		63
GMDB greater of annual step up and roll up		26.7		7.4		67
Total GMDB at December 31, 2012	$	2,232.4	$	34.9
Less: General account value with GMDB		311.3
Subtotal separate account liabilities with GMDB		1,921.1
Separate account liabilities without GMDB		140.7
Total separate account liabilities	$	2,061.8
GMIB(1) at December 31, 2012	$	403.3
2011 as restated and amended
GMDB return of premium	$	795.6	$	20.7		61
GMDB step up		1,450.6		91.2		62
GMDB earnings enhancement benefit (“EEB”)		39.7		0.4		62
GMDB greater of annual step up and roll up		27.1		8.8		66
Total GMDB at December 31, 2011	$	2,313.0	$	121.1
Less: General account value with GMDB		336.9
Subtotal separate account liabilities with GMDB		1,976.1
Separate account liabilities without GMDB		570.7
Total separate account liabilities	$	2,546.8
GMIB(1) at December 31, 2011	$	428.1

Changes in Guaranteed Liability Balances

The GMWB, GMDB and chronic care guarantees are recorded in policy liabilities and accruals on our balance sheets. Changes in the liability are recorded in policy benefits, excluding policyholder dividends, on our statements of comprehensive income. We regularly evaluate estimates used and adjust the additional liability balances, with a related charge or credit to benefit expense if actual experience or other evidence suggests that earlier assumptions should be revised.

Changes in Guaranteed Liability Balances:	Fixed Indexed Annuity
($ in millions)	GMWB & GMDB
	Year Ended December 31,
	2012			2011			2010
				As restated			As restated
				and amended			and amended
Liability balance, beginning of period		$	5.6		$	0.5		$	—
Incurred			40.1			5.1			0.5
Paid			—			—			—
Liability balance, end of period		$	45.7		$	5.6		$	0.5

Universal life

Liabilities for universal life contracts, some of which contain secondary guarantees, are generally determined by estimating the expected value of benefits and expenses when claims are triggered and recognizing those benefits and expenses ratably over the accumulation period based on total expected assessments. The assumptions used in estimating these liabilities are consistent with those used for amortizing deferred policy acquisition costs.

Changes in Guaranteed Liability Balances:	Universal Life
($ in millions)	Secondary Guarantees
	Year Ended December 31,
	2012				2011				2010
					As restated				As restated
					and amended				and amended
Liability balance, beginning of period		$	98.2			$	88.5			$	65.7
Incurred			22.6				16.0				43.2
Paid			(9.5	)			(6.3	)			(20.4	)
Assumption unlocking			-				-				-
Liability balance, end of period		$	111.3			$	98.2			$	88.5

Non-Insurance Guaranteed Product Features

Certain separate account variable products contain a GMWB, GMAB and/or COMBO rider. These features are accounted for as embedded derivatives as described below.

Non-Insurance Guaranteed Product Features:			Average
($ in millions)	Account		Attained Age
	Value		of Annuitant
2012
GMWB	$	547.4		63
GMAB		379.5		58
COMBO		8.3		61
Total at December 31, 2012	$	935.2
2011 as amended and restated
GMWB	$	541.9		62
GMAB		374.4		57
COMBO		9.8		60
Total at December 31, 2011	$	926.1

Variable Annuity Embedded Derivative Liabilities

Variable Annuity Embedded Derivative Liabilities:	As of December 31,
($ in millions)	2012				2011
					As restated
					and amended
GMWB		$	14.3			$	22.0
GMAB			14.3				24.7
COMBO			(0.3	)			(0.3	)
Total variable annuity embedded derivative liabilities		$	28.3			$	46.4