(Tables)

12 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

The Company’s consolidated investments are summarized as follows:



	September 30, 2013
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Carrying Value

Fixed-maturity securities, available-for sale
Asset-backed securities	$	1,505.7	$	22.6	$	(5.2	)	$	1,523.1	$	1,523.1
Commercial mortgage-backed securities	431.3		24.7		(1.6		)	454.4		454.4
Corporates	9,314.7		288.7		(185.1		)	9,418.3		9,418.3
Hybrids	412.6		19.5		(3.3		)	428.8		428.8
Municipals	998.8		49.0		(40.8		)	1,007.0		1,007.0
Agency residential mortgage-backed securities	96.5		2.4		(0.3		)	98.6		98.6
Non-agency residential mortgage-backed securities	1,304.0		77.4		(13.4		)	1,368.0		1,368.0
U.S. Government	998.5		7.2		(3.9		)	1,001.8		1,001.8
Total fixed maturities	15,062.1		491.5		(253.6		)	15,300.0		15,300.0
Equity securities
Available-for-sale	274.6		6.7		(10.3		)	271.0		271.0
Held for trading	120.1		0.6		(39.2		)	81.5		81.5
Total equity securities	394.7		7.3		(49.5		)	352.5		352.5
Derivatives	141.7		88.5		(8.4		)	221.8		221.8
Asset-based loans	560.4		—		—			560.4		560.4
Other invested assets
Policy loans and other invested assets	31.2		—		—			31.2		31.2
Total investments	$	16,190.1	$	587.3	$	(311.5	)	$	16,465.9	$	16,465.9



	September 30, 2012
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Carrying Value

Fixed-maturity securities, available-for-sale
Asset-backed securities	$	1,010.9	$	18.6	$	(1.6	)	$	1,027.9	$	1,027.9
Commercial mortgage-backed securities	520.0		36.2		(2.4		)	553.8		553.8
Corporates	10,211.8		807.2		(10.0		)	11,009.0		11,009.0
Hybrids	519.0		18.8		(9.6		)	528.2		528.2
Municipals	1,083.2		141.9		(1.1		)	1,224.0		1,224.0
Agency residential mortgage-backed securities	149.5		5.8		(0.3		)	155.0		155.0
Non-agency residential mortgage-backed securities	629.1		35.8		(4.3		)	660.6		660.6
U.S. Government	917.5		12.9		—			930.4		930.4
Total fixed-maturity securities	15,041.0		1,077.2		(29.3		)	16,088.9		16,088.9
Equity securities
Available-for-sale	237.5		11.9		(1.3		)	248.1		248.1
Held for trading	191.8		—		(45.0		)	146.8		146.8
Total equity securities	429.3		11.9		(46.3		)	394.9		394.9
Derivatives	142.1		67.0		(8.4		)	200.7		200.7
Asset-based loans	180.1		—		—			180.1		180.1
Other invested assets
U.S. Treasuries and certificate of deposit, held-to-maturity	35.0		—		—			35.0		35.0
Policy loans and other invested assets	18.8		—		—			18.8		18.8
Total other invested assets	53.8		—		—			53.8		53.8
Total investments	$	15,846.3	$	1,156.1	$	(84.0	)	$	16,918.4	$	16,918.4

Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities

The amortized cost and fair value of fixed maturity available-for-sale securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.



	September 30, 2013
	Amortized Cost		Fair Value
Corporates, Non-structured Hybrids, Municipal and U.S. Government securities:
Due in one year or less	$	978.5	$	982.4
Due after one year through five years	2,739.1		2,805.8
Due after five years through ten years	2,972.4		3,000.9
Due after ten years	5,007.5		5,037.5
Subtotal	11,697.5		11,826.6
Other securities which provide for periodic payments:
Asset-backed securities	1,505.7		1,523.1
Commercial-mortgage-backed securities	431.3		454.3
Structured hybrids	27.1		29.4
Agency residential mortgage-backed securities	96.5		98.6
Non-agency residential mortgage-backed securities	1,304.0		1,368.0
Total fixed maturity available-for-sale securities	$	15,062.1	$	15,300.0

Fair Value and Gross Unrealized Losses of Available-for-Sale-Securities

The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category, were as follows:



	September 30, 2013
	Less than 12 months					12 months or longer					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Available-for-sale securities
Asset-backed securities	$	329.3	$	(4.5	)	$	81.5	$	(0.7	)	$	410.8	$	(5.2	)
Commercial-mortgage-backed securities	26.6		(0.5		)	4.9		(1.1		)	31.5		(1.6		)
Corporates	3,457.2		(175.0		)	186.0		(10.1		)	3,643.2		(185.1		)
Equities	118.6		(9.1		)	32.2		(1.2		)	150.8		(10.3		)
Hybrids	52.0		(3.3		)	—		—			52.0		(3.3		)
Municipals	333.3		(27.3		)	144.4		(13.5		)	477.7		(40.8		)
Agency residential mortgage-backed securities	9.8		(0.1		)	1.1		(0.2		)	10.9		(0.3		)
Non-agency residential mortgage-backed securities	325.2		(12.2		)	69.9		(1.2		)	395.1		(13.4		)
U.S. Government	753.9		(3.9		)	—		—			753.9		(3.9		)
Total available-for-sale securities	$	5,405.9	$	(235.9	)	$	520.0	$	(28.0	)	$	5,925.9	$	(263.9	)
Total number of available-for-sale securities in an unrealized loss position			588					78					666



	September 30, 2012
	Less than 12 months					12 months or longer					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Available-for-sale securities
Asset-backed securities	$	169.8	$	(1.0	)	$	7.5	$	(0.6	)	$	177.3	$	(1.6	)
Commercial-mortgage-backed securities	0.8		(0.8		)	10.7		(1.6		)	11.5		(2.4		)
Corporates	411.3		(8.1		)	45.5		(1.9		)	456.8		(10.0		)
Equities	—		—			44.5		(1.3		)	44.5		(1.3		)
Hybrids	13.4		(0.4		)	107.7		(9.2		)	121.1		(9.6		)
Municipals	71.1		(1.1		)	—		—			71.1		(1.1		)
Agency residential mortgage-backed securities	1.8		(0.2		)	6.1		(0.1		)	7.9		(0.3		)
Non-agency residential mortgage-backed securities	12.9		(0.3		)	101.8		(4.0		)	114.7		(4.3		)
Total available-for-sale securities	$	681.1	$	(11.9	)	$	323.8	$	(18.7	)	$	1,004.9	$	(30.6	)
Total number of available-for-sale securities in an unrealized loss position			100					56					156

Reconciliation of Other-than-Temporary Impairment on Fixed Maturity

The following table provides a reconciliation of the beginning and ending balances of the credit loss portion of other-than-temporary impairments on fixed maturity securities held by FGH for the years ended September 30, 2013, 2012 and 2011, for which a portion of the other-than-temporary impairment was recognized in AOCI:



	Year ended September 30,
	2013		2012		2011
Beginning balance	$	2.7	$	0.7	$	—
Increases attributable to credit losses on securities:
Other-than-temporary impairment was previously recognized	—		0.1		—
Other-than-temporary impairment was not previously recognized	—		1.9		0.7
Ending balance	$	2.7	$	2.7	$	0.7

Other-than-Temporary Impairments

Details underlying write-downs taken as a result of other-than-temporary impairments that were recognized in earnings and included in net realized gains on securities were as follows:



	Year ended September 30,
	2013		2012		2011
Other-than-temporary impairments recognized in net income:
Corporates	$	1.2	$	4.1	$	1.5
Non-agency residential mortgage-backed securities	1.2		7.5		5.1
Equities	—		—		11.0
Hybrids	—		9.7		—
Other invested assets	0.5		1.5		0.4
Total other-than-temporary impairments	$	2.9	$	22.8	$	18.0

Portfolio of Asset-Backed Loans and Other Invested Assets

Salus’ portfolio of asset-based loans receivable, included in “Asset-based loans” in the Consolidated Balance Sheets as of September 30, 2013 and September 30, 2012, consisted of the following:



	September 30, 2013		September 30, 2012
Asset-based loans, by major industry:
Wholesale	$	56.8	$	77.2
Apparel	252.9		70.1
Jewelry	125.8		27.9
Other	130.1		6.3
Total asset-based loans	565.6		181.5
Less: Allowance for credit losses	5.2		1.4
Total asset-based loans, net	$	560.4	$	180.1

Schedule of Allowance for Credit Losses

The following table presents the activity in its allowance for credit losses for the year ended September 30, 2013 and September 30, 2012:



	Year ended September 30,
	2013		2012
Allowance for credit losses:
Balance at beginning of year	$	1.4	$	—
Provision for credit losses	3.8		1.4
Charge-offs	—		—
Recoveries	—		—
Balance at end of year	$	5.2	$	1.4

Schedule of Credit Quality of Asset-Based Loan Portfolio

Net Investment Income

The major sources of “Net investment income” on the accompanying Consolidated Statements of Operations were as follows:



	Year ended September 30,
	2013			2012			2011
Fixed maturity available-for-sale securities	$	686.2		$	707.1		$	364.8
Equity available-for-sale securities	14.8			14.0			10.2
Policy loans	0.8			0.7			1.5
Invested cash and short-term investments	1.4			4.9			0.1
Other investments	48.3			7.7			0.3
Gross investment income	751.5			734.4			376.9
External investment expense	(16.8		)	(11.7		)	(7.1		)
Net investment income	$	734.7		$	722.7		$	369.8

Net Investment Gains

“Net investment gains (losses)” reported on the accompanying Consolidated Statements of Operations were as follows:



	Year ended September 30,
	2013			2012			2011
Net realized gains before other-than-temporary impairments	$	332.9		$	287.2		$	34.9
Gross other-than-temporary impairments	(2.9		)	(24.3		)	(17.5		)
Non-credit portion of other-than-temporary impairments included in other comprehensive income	—			1.5			(0.5		)
Net realized gains on fixed maturity available-for-sale securities	330.0			264.4			16.9
Realized gains on equity securities	12.6			0.9			(10.9		)
Net realized gains on securities	342.6			265.3			6.0
Realized gains (losses) on certain derivative instruments	20.5			(10.3		)	(44.8		)
Unrealized gains on certain derivative instruments	148.6			156.3			(126.0		)
Change in fair value of derivatives	169.1			146.0			(170.8		)
Realized gains on other invested assets	(0.1		)	(1.3		)	(2.1		)
Net investment gains (losses)	$	511.6		$	410.0		$	(166.9	)

Cash Flows from Consolidated Investing Activities by Security

Cash flows from consolidated investing activities by security classification were as follows:



	Year ended September 30,
	2013			2012			2011
Proceeds from investments sold, matured or repaid:
Available-for-sale	$	8,986.9		$	5,833.4		$	1,482.2
Held-to-maturity	—			109.6			101.8
Trading (acquired for holding)	92.9			106.1			29.5
Derivatives and other	352.4			157.6			86.4
	$	9,432.2		$	6,206.7		$	1,699.9
Cost of investments acquired:
Available-for-sale	$	(8,757.5	)	$	(5,640.1	)	$	(1,286.0	)
Held-to-maturity	—			(68.7		)	(123.4		)
Trading (acquired for holding)	(20.8		)	(122.3		)	(332.7		)
Derivatives and other	(162.5		)	(141.6		)	(66.9		)
	$	(8,940.8	)	$	(5,972.7	)	$	(1,809.0	)