Nature of Operations and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Nature of Operations and Significant Accounting Policies

Effects of Adoption of Deferred Policy Acquisition Cost Guidance and Reinsurance Accounting Change on Stockholders' Equity (Table)

	Impact on			Attributed to
	opening balance as of January 1, 2011			DPAC Guidance			Reinsurance Accounting Change
	(in millions)
Retained earnings	$	(612.9	)	$	(631.7	)	$	18.8
Accumulated other comprehensive income	34.3			29.5			4.8

Effects of Adoption of Deferred Policy Acquisition Cost Guidance and Reinsurance Accounting Change on Prior Period Financial Statements (Table)

Consolidated Statements of Financial Position

	December 31, 2011
								Change attributed to
			As								Reinsurance
	As		originally		Effect of			DPAC			Accounting
	adjusted		reported		change			Guidance			Change
	(in millions)
Assets
Other investments	$	2,985.8	$	2,988.0	$	(2.2	)	$	(2.2	)	$	—
Premiums due and other receivables	1,196.5		1,245.2		(48.7		)	—			(48.7		)
Deferred policy acquisition costs	2,428.0		3,313.5		(885.5		)	(884.4		)	(1.1		)
Liabilities
Future policy benefits and claims	20,210.4		20,207.9		2.5			—			2.5
Other policyholder funds	548.6		543.7		4.9			7.0			(2.1		)
Deferred income taxes	208.7		533.4		(324.7		)	(307.1		)	(17.6		)
Stockholders’ equity
Retained earnings	4,402.3		5,077.5		(675.2		)	(642.0		)	(33.2		)
Accumulated other comprehensive income	258.0		201.9		56.1			55.5			0.6

Consolidated Statements of Operations

	For the three months ended June 30, 2011
								Change attributed to
			As								Reinsurance
	As		originally		Effect of			DPAC			Accounting
	adjusted		reported		change			Guidance (1)			Change (2)
	(in millions, except per share data)
Revenue
Fees and other revenues	$	633.2	$	678.6	$	(45.4	)	$	0.1		$	(45.5	)
Net investment income	873.6		873.8		(0.2		)	(0.2		)	—
Expenses
Benefits, claims and settlement expenses	1,193.9		1,013.7		180.2			—			180.2
Operating expenses	739.4		903.1		(163.7		)	(21.9		)	(141.8		)
Income before income taxes	310.2		372.3		(62.1		)	21.8			(83.9		)
Income taxes	61.0		82.4		(21.4		)	8.0			(29.4		)
Net income	$	249.2	$	289.9	$	(40.7	)	$	13.8		$	(54.5	)
Net income available to common stockholders	$	217.3	$	258.0	$	(40.7	)	$	13.8		$	(54.5	)
Earnings per common share
Basic earnings per common share	$	0.68	$	0.81	$	(0.13	)	$	0.04		$	(0.17	)
Diluted earnings per common share	$	0.67	$	0.80	$	(0.13	)	$	0.04		$	(0.17	)

Consolidated Statements of Operations

	For the six months ended June 30, 2011
								Change attributed to
			As								Reinsurance
	As		originally		Effect of			DPAC			Accounting
	adjusted		reported		change			Guidance (1)			Change (2)
	(in millions, except per share data)
Revenue
Fees and other revenues	$	1,256.2	$	1,299.4	$	(43.2	)	$	0.2		$	(43.4	)
Net investment income	1,733.4		1,733.7		(0.3		)	(0.3		)	—
Expenses
Benefits, claims and settlement expenses	2,382.8		2,205.2		177.6			—			177.6
Operating expenses	1,457.3		1,594.3		(137.0		)	(1.7		)	(135.3		)
Income before income taxes	571.7		655.8		(84.1		)	1.6			(85.7		)
Income taxes	113.7		142.8		(29.1		)	0.9			(30.0		)
Net income	$	458.0	$	513.0	$	(55.0	)	$	0.7		$	(55.7	)
Net income available to common stockholders	$	399.3	$	454.3	$	(55.0	)	$	0.7		$	(55.7	)
Earnings per common share
Basic earnings per common share	$	1.24	$	1.42	$	(0.18	)	$	—		$	(0.18	)
Diluted earnings per common share	$	1.23	$	1.40	$	(0.17	)	$	—		$	(0.17	)

(1)In general as a result of the adoption of the DPAC Guidance we capitalize fewer expenses, which lowers earnings. In the second quarter of 2011, we made routine model refinements in our individual life insurance business that resulted in a write-down of our DPAC asset. The DPAC Guidance was applied to a lower DPAC asset, which reduced the DPAC write-off associated with the model refinements. This positive impact to earnings more than offset the negative impact of lower capitalization during the quarter.

(2)In the second quarter of 2011, we made various routine adjustments to our model and assumptions in our individual life insurance business. When we updated our actuarial models for the Reinsurance Accounting Change, several of the components of our integrated insurance accounting model were impacted, resulting in changes to various balance sheet and income statement line items. While the same model and assumptions were used to derive both the “as originally reported” and “as adjusted” balances, the financial statement impacts of the model and assumption changes upon adjustment were different than previously reported because of changes to the pattern of EGPs caused by the application of our Reinsurance Accounting Change.

Effects of Reinsurance Accounting Change on Current Period Financial Statements (Table)

Consolidated Statements of Financial Position

	June 30, 2012
	New		Former		Effect of
	reinsurance		reinsurance		Reinsurance
	accounting		accounting		Accounting
	method		method		Change
	(in millions)
Assets
Premiums due and other receivables	$	1,097.0	$	1,162.3	$	(65.3	)
Deferred policy acquisition costs	2,663.8		2,646.1		17.7
Liabilities
Future policy benefits and claims	20,791.4		20,791.5		(0.1		)
Other policyholder funds	663.4		656.5		6.9
Deferred income taxes	568.7		587.7		(19.0		)
Stockholders’ equity
Retained earnings	4,667.1		4,701.0		(33.9		)
Accumulated other comprehensive income	550.5		552.0		(1.5		)

Consolidated Statements of Operations

	For the three months ended June 30, 2012
	New		Former		Effect of
	reinsurance		reinsurance		Reinsurance
	accounting		accounting		Accounting
	method		method		Change
	(in millions, except per share data)
Revenue
Fees and other revenues	$	636.1	$	636.6	$	(0.5	)
Expenses
Benefits, claims and settlement expenses	1,110.0		1,108.7		1.3
Operating expenses	724.1		725.2		(1.1		)
Income before income taxes	235.0		235.7		(0.7		)
Income taxes	50.9		51.1		(0.2		)
Net income	$	184.1	$	184.6	$	(0.5	)
Net income available to common stockholders	$	173.1	$	173.6	$	(0.5	)
Earnings per common share
Basic earnings per common share	$	0.58	$	0.58	$	—
Diluted earnings per common share	$	0.58	$	0.58	$	—

Consolidated Statements of Operations

	For the six months ended June 30, 2012
	New		Former		Effect of
	reinsurance		reinsurance		Reinsurance
	accounting		accounting		Accounting
	method		method		Change
	(in millions, except per share data)
Revenue
Fees and other revenues	$	1,234.1	$	1,243.1	$	(9.0	)
Expenses
Benefits, claims and settlement expenses	2,322.5		2,308.5		14.0
Operating expenses	1,280.1		1,302.1		(22.0		)
Income before income taxes	512.1		513.1		(1.0		)
Income taxes	109.1		109.4		(0.3		)
Net income	$	403.0	$	403.7	$	(0.7	)
Net income available to common stockholders	$	374.6	$	375.3	$	(0.7	)
Earnings per common share
Basic earnings per common share	$	1.25	$	1.25	$	—
Diluted earnings per common share	$	1.24	$	1.24	$	—