The
balances of and changes in deferred policy acquisition costs as of and for the periods ended September 30, 2012 and 2011
are as follows:
| Deferred Policy
Acquisition Costs: |
|
Three
Months Ended |
|
|
Nine
Months Ended |
|
| ($
in millions) |
|
September 30, |
|
|
September 30, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| |
|
|
|
|
As
restated
and
amended |
|
|
|
|
|
As
restated
and
amended |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Policy
acquisition costs deferred |
|
$ |
20.4 |
|
|
$ |
31.1 |
|
|
$ |
63.7 |
|
|
$ |
71.5 |
|
| Costs amortized
to expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring
costs |
|
|
(5.1 |
) |
|
|
(33.8 |
) |
|
|
(78.2 |
) |
|
|
(94.4 |
) |
| Assumption
unlocking |
|
|
(1.2 |
) |
|
|
(1.2 |
) |
|
|
(1.2 |
) |
|
|
(1.2 |
) |
| Realized
investment gains (losses) |
|
|
(18.0 |
) |
|
|
6.1 |
|
|
|
(13.2 |
) |
|
|
5.3 |
|
| Offsets to net unrealized
investment gains or losses included in AOCI (1) |
|
|
5.8 |
|
|
|
(17.7 |
) |
|
|
(25.6 |
) |
|
|
(30.1 |
) |
| Change in deferred
policy acquisition costs |
|
|
1.9 |
|
|
|
(15.5 |
) |
|
|
(54.5 |
) |
|
|
(48.9 |
) |
| Deferred
policy acquisition costs, beginning of period |
|
|
432.7 |
|
|
|
501.9 |
|
|
|
489.1 |
|
|
|
535.3 |
|
| Deferred
policy acquisition costs, end of period |
|
$ |
434.6 |
|
|
$ |
486.4 |
|
|
$ |
434.6 |
|
|
$ |
486.4 |
|
———————
| (1) |
An
offset to deferred policy acquisition costs and accumulated other comprehensive income (“AOCI”) is recorded each
period to the extent that, had unrealized holding gains or losses from securities classified as available-for-sale actually
been realized, an adjustment to deferred policy acquisition costs amortized using gross profits or gross margins would result. |
|