Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2011

Accumulated Other Comprehensive Income (Loss).

Accumulated Other Comprehensive Income (Loss)

9. Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of Accumulated other comprehensive income (loss) as of September 30, 2011 and 2010.

	2011			2010
Fixed maturities	$	1,340.5		$	419.8
Equity securities, available-for-sale	14.9			28.2
Derivatives	156.1			0.1
DAC/VOBA adjustment on available-for-sale securities	(725.3		)	(168.3		)
Sales inducements adjustment on available-for-sale securities	(0.9		)	(0.3		)
Shadow loss recognition	(93.8		)	(75.4		)
Other investments	—			(0.2		)
Unrealized capital gains, before tax	691.5			203.9
Deferred income tax liability	(233.2		)	(63.9		)
Deferred tax asset valuation allowance	77.7			72.0
Net unrealized capital gains	536.0			212.0
Pension and other post-employment benefits liability, net of tax	(14.6		)	(8.7		)
Accumulated other comprehensive income	$	521.4		$	203.3

Changes in Accumulated other comprehensive income (loss), net of DAC, VOBA, and tax, related to changes in unrealized capital gains (losses) on securities, including securities pledged, were as follows for the nine months ended September 30, 2011 and 2010.

	2011			2010
Fixed maturities	$	406.7		$	286.4
Equity securities, available-for-sale	(6.1		)	15.4
Derivatives	155.6			0.1
DAC/VOBA adjustment on available-for-sale securities	(263.6		)	(79.5		)
Sales inducements adjustment on available-for-sale securities	(0.6		)	(0.5		)
Shadow loss recognition	(32.9		)	(75.4		)
Other investments	—			(0.2		)
Unrealized capital gains, before tax	259.1			146.3
Deferred income tax asset (liability)	(89.1		)	(39.0		)
Deferred tax asset valuation allowance	48.0			111.0
Net change in unrealized capital gains	$	218.0		$	218.3

Changes in unrealized capital gains on securities, including securities pledged and noncredit impairments, as recognized in Accumulated other comprehensive income (loss), reported net of DAC, VOBA, and income taxes, were as follows for the nine months ended September 30, 2011 and 2010.

	2011			2010
Net unrealized capital holding gains arising during the period(1)	$	234.6		$	148.8
Reclassification adjustment for gains and other items included in Net income (loss)(2)	(64.6		)	(41.5		)
Change in deferred tax asset valuation allowance	48.0			111.0
Net change in unrealized capital gains on securities	$	218.0		$	218.3

(1)Pretax net unrealized capital holding gains arising during the period were $357.6 and $202.9 for the nine months ended September 30, 2011 and 2010, respectively.

(2)Pretax reclassification adjustments for gains and other items included in Net income (loss) were $98.5 and $56.6 for the nine months ended September 30, 2011 and 2010, respectively.

The reclassification adjustments for gains (losses) and other items included in Net income (loss) in the above table are generally determined by FIFO methodology.