Investments

Fixed Maturities and Equity Securities

Available-for-sale and fair value option fixed maturities and equity securities were as follows as of March 31, 2012.



	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives⁽³⁾		Fair Value		OTTI⁽²⁾
Fixed maturities:
U.S. Treasuries	$	736.9	$	89.7	$	—	$	—	$	826.6	$	—
U.S. government agencies and authorities	378.9		27.7		—		—		406.6		—
State, municipalities, and political subdivisions	84.9		11.9		—		—		96.8		—
U.S. corporate securities	8,420.8		746.4		33.5		—		9,133.7		—

Foreign securities⁽¹⁾:
Government	393.0		33.9		2.1		—		424.8		—
Other	4,303.8		355.4		22.1		—		4,637.1		—
Total foreign securities	4,696.8		389.3		24.2		—		5,061.9		—

Residential mortgage-backed securities:
Agency	1,433.8		198.7		5.6		35.8		1,662.7		0.6
Non-Agency	484.1		66.0		34.8		18.5		533.8		27.4
Total Residential mortgage-backed securities	1,917.9		264.7		40.4		54.3		2,196.5		28.0

Commercial mortgage-backed securities	854.4		69.9		1.7		—		922.6		4.4
Other asset-backed securities	404.4		20.7		19.8		—		405.3		4.0
Total fixed maturities, including securities pledged	17,495.0		1,620.3		119.6		54.3		19,050.0		36.4
Less: securities pledged	187.9		15.3		1.0		—		202.2		—
Total fixed maturities	17,307.1		1,605.0		118.6		54.3		18,847.8		36.4
Equity securities	131.1		12.1		0.1		—		143.1		—
Total fixed maturities and equity securities	$	17,438.2	$	1,617.1	$	118.7	$	54.3	$	18,990.9	$	36.4

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Represents other-than-temporary impairments ("OTTI") reported as a component of Other comprehensive income.

⁽³⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

Available-for-sale and fair value option fixed maturities and equity securities were as follows as of December 31, 2011 (As revised).



	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives⁽³⁾		Fair Value		OTTI⁽²⁾
Fixed maturities:
U.S. Treasuries	$	1,096.6	$	135.0	$	—	$	—	$	1,231.6	$	—
U.S. government agencies and authorities	379.7		31.0		—		—		410.7		—
State, municipalities, and political subdivisions	95.1		10.9		—		—		106.0		—
U.S. corporate securities	8,166.9		770.8		31.1				8,906.6		—

Foreign securities⁽¹⁾:
Government	308.5		39.8		3.1		—		345.2		—
Other	4,352.5		328.8		38.4		—		4,642.9		—
Total foreign securities	4,661.0		368.6		41.5		—		4,988.1		—

Residential mortgage-backed securities:
Agency	1,442.0		218.7		3.4		39.4		1,696.7		0.7
Non-Agency	513.4		66.7		49.5		19.8		550.4		28.8
Total Residential mortgage-backed securities	1,955.4		285.4		52.9		59.2		2,247.1		29.5

Commercial mortgage-backed securities	866.1		51.0		5.8		—		911.3		4.4
Other asset-backed securities	441.5		19.4		22.1		—		438.8		4.2
Total fixed maturities, including securities pledged	17,662.3		1,672.1		153.4		59.2		19,240.2		38.1
Less: securities pledged	572.5		22.4		1.2		—		593.7		—
Total fixed maturities	17,089.8		1,649.7		152.2		59.2		18,646.5		38.1
Equity securities	131.8		13.1		—		—		144.9		—
Total fixed maturities and equity securities	$	17,221.6	$	1,662.8	$	152.2	$	59.2	$	18,791.4	$	38.1

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Represents other-than-temporary impairments reported as a component of Other comprehensive income.

The amortized cost and fair value of total fixed maturities, including securities pledged, as of March 31, 2012, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid. Mortgage-backed securities ("MBS") and other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.



	Amortized Cost		Fair Value
Due to mature:
One year or less	$	309.0	$	329.4
After one year through five years	3,725.8		3,981.6
After five years through ten years	5,300.6		5,747.3
After ten years	4,982.9		5,467.3
Mortgage-backed securities	2,772.3		3,119.1
Other asset-backed securities	404.4		405.3
Fixed maturities, including securities pledged	$	17,495.0	$	19,050.0

The Company did not have any investments in a single issuer, other than obligations of the U.S. government and government agencies and the State of the Netherlands (the “Dutch State”) loan obligation, with a carrying value in excess of 10% of the Company’s Shareholder’s equity at March 31, 2012 and December 31, 2011.

The Company invests in various categories of collateralized mortgage obligations (“CMOs”), including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to dramatic decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. At March 31, 2012 and December 31, 2011, approximately 43.0% and 41.1%, respectively, of the Company’s CMO holdings were invested in those types of CMOs such as interest-only or principal-only strips, which are subject to more prepayment and extension risk than traditional CMOs.

Certain CMO's primarily interest-only and principal-only strips are counted for as hybrid instruments and valued at fair value with changes in fair value reported in Other net realized gains (losses) in the Condensed Consolidated Statements of Operations.

Repurchase Agreements

The Company engages in dollar repurchase agreements with mortgage-backed securities (“dollar rolls”) and repurchase agreements with other collateral types to increase its return on investments and improve liquidity. Such arrangements typically meet the requirements to be accounted for as financing arrangements. The Company enters into dollar roll transactions by selling existing mortgage-backed securities and concurrently entering into an agreement to repurchase similar securities within a short time frame in the future at a lower price. Under repurchase agreements, the Company borrows cash from a counterparty at an agreed upon interest rate for an agreed upon time frame and pledges collateral in the form of securities. At the end of the agreement, the counterparty returns the collateral to the Company, and the Company, in turn, repays the loan amount along with the additional agreed upon interest. Company policy requires that at all times during the term of the dollar roll and repurchase agreements that cash or other collateral types obtained is sufficient to allow the Company to fund substantially all of the cost of purchasing replacement assets. Cash collateral received is invested in short-term investments, with the offsetting obligation to repay the loan included as a liability on the Condensed Consolidated Balance Sheets. As of March 31, 2012 and December 31, 2011, the Company did not have any securities pledged in dollar rolls and repurchase agreement transactions.

The Company also enters into reverse repurchase agreements. These transactions involve a purchase of securities and an agreement to sell substantially the same securities as those purchased. Company policy requires that, at all times during the term of the reverse repurchase agreements, cash or other collateral types provided is sufficient to allow the counterparty to fund substantially all of the cost of purchasing replacement assets. At March 31, 2012 and December 31, 2011, the Company did not have any securities pledged under reverse repurchase agreements.

The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company’s exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments. The Company believes the counterparties to the dollar rolls, repurchase, and reverse repurchase agreements are financially responsible and that the counterparty risk is minimal.

Securities Lending

The Company engages in securities lending whereby certain domestic securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned securities. Generally, the lending agent retains all of the cash collateral. Collateral retained by the agent is invested in liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates.

As of March 31, 2012 and December 31, 2011, the fair value of loaned securities was $115.9 and $515.8, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets. Collateral received is included in Short-term investments under securities loan agreement, including collateral delivered. As of March 31, 2012 and December 31, 2011, liabilities to return collateral of $120.2 and $524.8, respectively, are included in Payables under securities loan agreement, including collateral held, on the Condensed Consolidated Balance Sheets.

Variable Interest Entities ("VIEs")

The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions, or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company’s financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company provided no non-contractual financial support and its carrying value represents the Company’s exposure to loss. The carrying value of the equity tranches of the collateralized loan obligations ("CLOs") of $1.0 and $0.9 at March 31, 2012 and December 31, 2011, respectively, is included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income on the Condensed Consolidated Statements of Operations.

Securitizations

The Company invests in various tranches of securitization entities, including Residential Mortgage-backed Securities ("RMBS"), Commercial Mortgage-backed Securities ("CMBS") and ABS. Certain RMBS investments represent agency pass-through securities and close-to-the-index tranches issued by Fannie Mae, Freddie Mac, or similar government-sponsored entity. Investments held by the Company in non-agency RMBS and CMBS also include interest-only, principal-only, and inverse floating securities. Through its investments, the Company is not obligated to provide any financial or other support to these entities.

Each of the RMBS, CMBS, and ABS entities described above are thinly capitalized by design, and considered VIEs under ASC 810-10-25 as amended by ASU 2009-17. As discussed above, the Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company through its investments or other arrangements does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and will not consolidate any of the RMBS, CMBS, and ABS entities in which it holds investments. These investments are accounted for as investments as described in the Business, Basis of Presentation and Significant Accounting Policies note to the Consolidated Financial Statements included in the Company's 2011 Annual Report on Form 10-K.

Fixed Maturity Securities Credit Quality - Ratings

The Securities Valuation Office ("SVO") of the National Association of Insurance Commissioners (“NAIC”) evaluates the fixed maturity security investments of insurers for regulatory reporting and capital assessment purposes and assigns securities to one of six credit quality categories called “NAIC designations.” An internally developed rating is used as permitted by the NAIC if no rating is available. The NAIC designations are generally similar to the credit quality designations of a Nationally Recognized Statistical Rating Organization (“NRSRO”) for marketable fixed maturity securities, called “rating agency designations,” except for certain structured securities as described below. NAIC designations of "1," highest quality, and "2," high quality, include fixed maturity securities generally considered investment grade (“IG”) by such rating organizations. NAIC designations 3 through 6 include fixed maturity securities generally considered below investment grade (“BIG”) by such rating organizations.

The NAIC adopted revised designation methodologies for non−agency RMBS, including RMBS backed by subprime mortgage loans reported within ABS, and for CMBS. The NAIC's objective with the revised designation methodologies for these structured securities was to increase the accuracy in assessing expected losses, and to use the improved assessment to determine a more appropriate capital requirement for such structured securities. The revised methodologies reduce regulatory reliance on rating agencies and allow for greater regulatory input into the assumptions used to estimate expected losses from such structured securities.

As a result of time lags between the funding of investments, the finalization of legal documents and the completion of the SVO filing process, the fixed maturity portfolio generally includes securities that have not yet been rated by the SVO as of each balance sheet date, such as private placements. Pending receipt of SVO ratings, the categorization of these securities by NAIC designation is based on the expected ratings indicated by internal analysis.

Information about the Company's fixed maturity securities holdings, including securities pledged, by NAIC designations is set forth in the following tables. Corresponding rating agency designation does not directly translate into NAIC designation, but represents the Company's best estimate of comparable ratings from rating agencies, including Moody's Investors Service, Inc. ("Moody's"), Standard & Poor's (“S&P”), and Fitch Ratings Ltd. (“Fitch”). If no rating is available from a rating agency, then an internally developed rating is used.

It is the Company's objective that the portfolio of fixed maturities be of high quality and be well diversified by market sector. The fixed maturities in the Company's portfolio are generally rated by external rating agencies and, if not externally rated, are rated by the Company on a basis believed to be similar to that used by the rating agencies. Ratings are derived from three NRSRO ratings and are applied as follows based on the number of agency rating received:


▪	when three ratings are received then the middle rating is applied;


▪	when two ratings are received then the lower rating is applied;


▪	when a single rating is received, the NRSRO rating is applied;


▪	and, when ratings are unavailable then an internal rating is applied.

Unrealized Capital Losses

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged to creditors, for IG and BIG securities by duration, based on NAIC designations, were as follows as of March 31, 2012 and December 31, 2011.



	2012								2011
	IG		% of IG and BIG		BIG		% of IG and BIG		IG		% of IG and BIG		BIG		% of IG and BIG
Six months or less below amortized cost	$	31.8	26.6	%	$	3.1	2.6	%	$	38.4	25.0	%	$	7.1	4.6	%
More than six months and twelve months or less below amortized cost	8.8		7.4	%	2.5		2.1	%	12.5		8.1	%	4.1		2.7	%
More than twelve months below amortized cost	46.1		38.5	%	27.3		22.8	%	61.4		40.1	%	29.9		19.5	%
Total unrealized capital losses	$	86.7	72.5	%	$	32.9	27.5	%	$	112.3	73.2	%	$	41.1	26.8	%

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged to creditors, for securities rated BBB and above (Investment Grade ("IG")) and securities rated BB and below (Below Investment Grade ("BIG")) by duration, based on NRSRO ratings, were as follows as of March 31, 2012 and December 31, 2011.



	2012								2011
	IG		% of IG and BIG		BIG		% of IG and BIG		IG		% of IG and BIG		BIG		% of IG and BIG
Six months or less below amortized cost	$	31.4	26.3	%	$	3.5	3.0	%	$	38.3	25.0	%	$	7.2	4.7	%
More than six months and twelve months or less below amortized cost	7.8		6.5	%	3.5		3.0	%	6.8		4.4	%	9.8		6.4	%
More than twelve months below amortized cost	28.5		23.7	%	44.9		37.5	%	42.1		27.4	%	49.2		32.1	%
Total unrealized capital losses	$	67.7	56.5	%	$	51.9	43.5	%	$	87.2	56.8	%	$	66.2	43.2	%

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturities, including securities pledged to creditors, by market sector and duration were as follows as of March 31, 2012 and December 31, 2011.



	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Loss		Fair Value		Unrealized Capital Loss		Fair Value		Unrealized Capital Loss		Fair Value		Unrealized Capital Loss
2012
U.S. Treasuries	$	21.0	$	—	$	—	$	—	$	—	$	—	$	21.0	$	—
U.S. corporate, state, and municipalities	865.0		22.0		143.7		5.6		52.0		5.9		1,060.7		33.5
Foreign	300.1		8.9		94.6		3.4		104.9		11.9		499.6		24.2
Residential mortgage-backed	67.3		3.7		44.4		1.3		215.5		35.4		327.2		40.4
Commercial mortgage-backed	11.3		0.2		19.6		0.8		10.7		0.7		41.6		1.7
Other asset-backed	1.6		0.1		6.5		0.2		49.3		19.5		57.4		19.8
Total	$	1,266.3	$	34.9	$	308.8	$	11.3	$	432.4	$	73.4	$	2,007.5	$	119.6

2011
U.S. Treasuries	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
U.S. corporate, state, and municipalities	595.1		22.8		46.5		3.0		52.9		5.3		694.5		31.1
Foreign	435.3		19.1		49.9		4.6		169.5		17.8		654.7		41.5
Residential mortgage-backed	49.4		1.6		97.0		5.2		175.4		46.1		321.8		52.9
Commercial mortgage-backed	28.3		1.8		69.0		2.5		8.9		1.5		106.2		5.8
Other asset-backed	32.6		0.2		4.9		1.3		44.1		20.6		81.6		22.1
Total	$	1,140.7	$	45.5	$	267.3	$	16.6	$	450.8	$	91.3	$	1,858.8	$	153.4

Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities was 85.5% of the average book value as of March 31, 2012.

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged to creditors, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive periods as indicated in the tables below, were as follows for March 31, 2012 and December 31, 2011.



	Amortized Cost				Unrealized Capital Loss				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
2012
Six months or less below amortized cost	$	1,335.6	$	11.9	$	38.2	$	4.2	232	11
More than six months and twelve months or less below amortized cost	312.7		45.0		10.6		14.3		64	14
More than twelve months below amortized cost	318.9		103.0		18.4		33.9		116	38
Total	$	1,967.2	$	159.9	$	67.2	$	52.4	412	63

2011
Six months or less below amortized cost	$	1,197.2	$	60.1	$	46.9	$	16.9	256	31
More than six months and twelve months or less below amortized cost	270.3		25.1		13.9		9.1		52	9
More than twelve months below amortized cost	355.6		103.9		26.7		39.9		129	37
Total	$	1,823.1	$	189.1	$	87.5	$	65.9	437	77

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged to creditors, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive periods as indicated in the tables below, were as follows for March 31, 2012 and December 31, 2011.



	Amortized Cost				Unrealized Capital Loss				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
2012
U.S. Treasuries	$	21.0	$	—	$	—	$	—	4	—
U.S. corporate, state and municipalities	1,088.1		6.1		31.1		2.4		145	1
Foreign	500.9		22.9		16.8		7.4		89	4
Residential mortgage-backed	282.9		84.7		14.0		26.4		129	41
Commercial mortgage-backed	43.3		—		1.7		—		8	—
Other asset-backed	31.0		46.2		3.6		16.2		37	17
Total	$	1,967.2	$	159.9	$	67.2	$	52.4	412	63

2011
U.S. Treasuries	$	—	$	—	$	—	$	—	—	—
U.S. corporate, state and municipalities	717.7		7.9		28.8		2.3		119	3
Foreign	670.5		25.7		31.9		9.6		122	7
Residential mortgage-backed	276.5		98.2		19.0		33.9		119	47
Commercial mortgage-backed	110.1		1.9		5.4		0.4		16	1
Other asset-backed	48.3		55.4		2.4		19.7		61	19
Total	$	1,823.1	$	189.1	$	87.5	$	65.9	437	77

As of March 31, 2012, and December 31, 2011 the Company held no fixed maturities with an unrealized capital loss in excess of $10.0.

All investments with fair values less than amortized cost are included in the Company’s other-than-temporary impairment analysis, and impairments were recognized as disclosed in the Other-Than-Temporary Impairments section, which follows. After detailed impairment analysis was completed, management determined that the remaining investments in an unrealized loss position were not other-than-temporarily impaired, and therefore no further other-than-temporary impairment was necessary.

Other-than-Temporary Impairments

The following table identifies the Company’s credit-related and intent-related other-than-temporary impairments included in the Condensed Consolidated Statements of Operations, excluding noncredit impairments included in AOCI, by type for the three months ended March 31, 2012 and 2011.



	Three Months Ended March 31,
	2012			2011
	Impairment		No. of Securities	Impairment			No. of Securities
U.S. corporate	$	—	—	$	3.7	⁽¹⁾	1
Foreign⁽¹⁾	0.4		1	3.0			8
Residential mortgage-backed	0.7		23	0.3			6
Other asset-backed	0.2		2	13.2			38
Total	$	1.3	26	$	20.2		53

⁽¹⁾ Primarily U.S. dollar denominated.

The above table includes $0.8 and $2.7 for the three months ended March 31, 2012 and 2011, respectively, in other-than-temporary write-downs related to credit impairments, which are recognized in earnings. The remaining $0.5 and $17.5 in write-downs for the three months ended March 31, 2012 and 2011, respectively, are related to intent impairments.

The following table summarizes these intent impairments, which are also recognized in earnings, by type for the three months ended March 31, 2012 and 2011.



	Three Months Ended March 31,
	2012			2011
	Impairment		No. of Securities	Impairment			No. of Securities
U.S. corporate	$	—	—	$	3.7		1
Foreign⁽¹⁾	0.4		1	1.1			4
Residential mortgage-backed	—		—	—		*	1
Other asset-backed	0.1		1	12.7			36
Total	$	0.5	2	$	17.5		42

⁽¹⁾ Primarily U.S. dollar denominated.

* Less than $0.1.

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities or cost for equity securities. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security.

The fair value of fixed maturities with OTTI as of March 31, 2012 and 2011 was $1.7 billion and $1.9 billion, respectively.

The following table identifies the amount of credit impairments on fixed maturities for the three months ended March 31, 2012 and 2011, for which a portion of the OTTI was recognized in AOCI, and the corresponding changes in such amounts.



	Three Months Ended March 31,
	2012			2011
Balance at January 1	$	19.4		$	59.2
Additional credit impairments:
On securities not previously impaired	0.1			0.2
On securities previously impaired	0.6			0.1
Reductions:
Securities intent impairments	—			(3.3		)
Securities sold, matured, prepaid or paid down	(0.6		)	(3.9		)
Balance at March 31	$	19.5		$	52.3

Net Investment Income

The Company uses the equity method of accounting for investments in limited partnership interests, primarily private equities and hedge funds. Generally, the Company records its share of earnings using a lag methodology, relying upon the most recent financial information available, where the contractual right exists to receive such financial information on a timely basis. The Company’s equity in earnings from limited partnership interests are accounted for under the equity method and is recorded in Net investment income.

Sources of net investment income were as follows for the three months ended March 31, 2012 and 2011.



	Three Months Ended March 31,
	2012			2011
Fixed maturities	$	305.8		$	298.2
Equity securities, available-for-sale	1.1			3.6
Mortgage loans on real estate	33.6			26.5
Policy loans	3.3			3.3
Short-term investments and cash equivalents	—			0.2
Other	19.4			21.9
Gross investment income	363.2			353.7
Less: investment expenses	(11.2		)	(10.7		)
Net investment income	$	352.0		$	343.0

Net Realized Capital Gains (Losses)

Net realized capital gains (losses) are comprised of the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to credit-related and intent-related other-than-temporary impairment of investments. Realized investment gains and losses are also generated from changes in fair value of fixed maturities accounted for using the fair value option and fair value changes including accruals on derivative instruments, except for effective cash flow hedges. The cost of the investments on disposal is determined based on first-in-first-out ("FIFO") methodology. Net realized capital gains (losses) on investments were as follows for the three months ended March 31, 2012 and 2011.



	Three Months Ended March 31,
	2012			2011
Fixed maturities, available-for-sale, including securities pledged	$	39.5		$	31.4
Fixed maturities, at fair value using the fair value option	(42.9		)	(3.4		)
Equity securities, available-for-sale	—			1.6
Derivatives	(13.2		)	(9.1		)
Embedded derivatives - fixed maturities	(4.8		)	(7.3		)
Embedded derivatives - product guarantees	149.0			3.5
Other investments	(0.3		)	2.9
Net realized capital gains (losses)	$	127.3		$	19.6
After-tax net realized capital gains (losses)	$	78.7		$	(10.3	)

Proceeds from the sale of fixed maturities and equity securities and the related gross realized gains and losses were as follows for the three months ended March 31, 2012 and 2011.



	Three Months Ended March 31,
	2012		2011
Proceeds on sales	$	1,267.1	$	2,068.8
Gross gains	42.4		66.5
Gross losses	3.1		13.8