11. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Significant Components of Income Taxes

Significant Components of Income Taxes:	Years Ended December 31,
($ in millions)	2012			2011			2010
				As restated			As restated
				and amended			and amended
Income tax expense (benefit) attributable to:
Current	$	27.7		$	0.6		$	(21.9	)
Deferred		(11.5	)		(6.9	)		(10.4	)
Income tax expense (benefit)	$	16.2		$	(6.3	)	$	(32.3	)

Reconciliation of Effective Income Tax Rate

Reconciliation of Effective Income Tax Rate:	Years Ended December 31,
($ in millions)	2012			2011			2010
				As restated			As restated
				and amended			and amended
Loss before income taxes	$	(121.5	)	$	(26.3	)	$	(95.9	)
Income tax benefit at statutory rate of 35.0%		(42.5	)		(9.2	)		(33.6	)
Dividend received deduction		(1.5	)		(2.0	)		(0.6	)
Valuation allowance increase (release)		60.2			4.1			(1.0	)
Other, net		—			0.8			2.9
Income tax expense (benefit)	$	16.2		$	(6.3	)	$	(32.3	)
Effective income tax rates		(13.3	%)		23.9	%		33.7	%

Allocation of Income Taxes

Allocation of Income Taxes:	Years Ended December 31,
($ in millions)	2012		2011			2010
			As restated			As restated
			and amended			and amended
Income tax expense (benefit)	$	16.2	$	(6.3	)	$	(32.3	)
Income tax from OCI:
Unrealized		24.9		4.2			9.2
Pension		—		—			—
Policy dividend obligation & deferred policy acquisition cost		—		—			—
Other		—		—			—
Income tax related to cumulative effect of change in accounting		—		—			0.9
Total income tax recorded to all components of income	$	41.1	$	(2.1	)	$	(22.2	)

Deferred Income Tax

Deferred Income Tax Balances Attributable to Temporary Differences:	As of December 31,
($ in millions)	2012			2011
				As restated
				and amended
Deferred income tax assets
Future policyholder benefits	$	276.7		$	190.1
Unearned premiums / deferred revenues		—			—
Investments		—			—
Net operating and capital loss carryover benefits		1.7			8.6
Other		0.2			(2.0	)
Available-for-sale debt securities		16.2			29.4
Alternative minimum tax credits		1.8			2.0
Subtotal		296.6			228.1
Valuation allowance		(105.4	)		(34.2	)
Total deferred income tax assets, net of valuation allowance		191.2			193.9
Deferred income tax liabilities
Deferred policy acquisition costs		(92.2	)		(110.8	)
Other		(82.8	)		(53.7	)
Gross deferred income tax liabilities		(175.0	)		(164.5	)
Net deferred income tax assets	$	16.2		$	29.4

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits:	2012			2011			2010
($ in millions)				As restated			As restated
				and amended			and amended
Balance, beginning of period		$	--		$	--		$	0.1
Reductions for tax positions of prior years			--			--			(0.1	)
Settlements with taxing authorities			--			--			--
Balance, end of period		$	--		$	--		$	--