ACCOUNTING FOR DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value by balance sheet location

Our freestanding and embedded derivatives, which are not designated as hedging instruments, are held at fair value and are summarized as follows (dollars in millions):

	Fair value
	June 30, 2017			December 31, 2016
Assets:
Other invested assets:
Fixed index call options	$	132.5		$	111.9
Reinsurance receivables	(2.1		)	(4.2		)
Total assets	$	130.4		$	107.7
Liabilities:
Future policy benefits:
Fixed index products	$	1,205.4		$	1,092.3
Total liabilities	$	1,205.4		$	1,092.3

Schedule pre-tax gains (losses) recognized in net income for derivative instruments

The following table provides the pre-tax gains (losses) recognized in net income for derivative instruments, which are not designated as hedges for the periods indicated (dollars in millions):

	Three months ended					Six months ended
	June 30,					June 30,
	2017		2016			2017		2016
Net investment income from policyholder and other special-purpose portfolios:
Fixed index call options	$	20.3	$	2.9		$	64.8	$	(6.1	)
Net realized gains (losses):
Interest rate futures	—		(.1		)	—		(1.1		)
Embedded derivative related to modified coinsurance agreement	1.4		4.8			2.1		6.6
Total	1.4		4.7			2.1		5.5
Insurance policy benefits:
Embedded derivative related to fixed index annuities	2.5		(16.7		)	4.8		(51.6		)
Total	$	24.2	$	(9.1	)	$	71.7	$	(52.2	)

Derivatives with master netting arrangements

The following table summarizes information related to derivatives with master netting arrangements or collateral as of June 30, 2017 and December 31, 2016 (dollars in millions):

								Gross amounts not offset in the balance sheet
		Gross amounts recognized		Gross amounts offset in the balance sheet		Net amounts of assets presented in the balance sheet		Financial instruments		Cash collateral received		Net amount
June 30, 2017:
	Fixed index call options	$	132.5	$	—	$	132.5	$	—	$	—	$	132.5
December 31, 2016:
	Fixed index call options	111.9		—		111.9		—		—		111.9