18. STATUTORY FINANCIAL INFORMATION

The Company’s U.S. insurance subsidiaries are required to file annual statements with state regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis), as codified by the National Association of Insurance Commissioners. Statutory capital and surplus differs from shareholders’ equity reported in accordance with generally accepted accounting principles primarily because under the statutory basis of accounting, policy acquisition costs are expensed when incurred, the recognition of deferred tax assets is based on different recoverability assumptions and postretirement benefit costs are based on different participant assumptions.

The following table provides statutory net income for the year ended December 31 and statutory capital and surplus as of December 31 for the periods indicated:


	2012			2011			2010
(in millions)
Statutory Net Income (Loss)
U.S. Insurance Subsidiaries	$	(47.3	)	$	(5.2	)	$	101.7
Statutory Capital and Surplus
U.S. Insurance Subsidiaries	$	1,523.4		$	1,582.8		$	1,747.3