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Investments | 9 Months Ended
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Jun. 30, 2013
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments HGI’s investments consist of (1) marketable equity securities classified as trading and carried at fair value with unrealized gains and losses recognized in earnings, including certain securities for which the Company has elected the fair value option under Accounting Standards Codification ("ASC") Topic 825, Financial Instruments, which would otherwise have been classified as available-for-sale; (2) U.S. Treasury securities and a certificate of deposit classified as held-to-maturity and carried at amortized cost, which approximates fair value; (3) FGL’s debt and equity securities have been designated as available-for-sale and are carried at fair value with unrealized gains and losses included in AOCI, net of associated adjustments for value of business acquired ("VOBA"), deferred acquisition costs ("DAC") and deferred income taxes; and (4) asset-backed loan receivables originated by Salus, which are carried at the the principal amount outstanding, adjusted for an allowance for credit losses. The Company’s consolidated investments are summarized as follows:
| June 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 | $ | 1,416.2 |  |  | $ | 25.9 |  |  | $ | (4.6 | ) |  | $ | 1,437.5 |  |  | $ | 1,437.5 |
Commercial mortgage-backed securities | 496.5 |  |  | 28.1 |  |  | (0.7 | ) |  | 523.9 |  |  | 523.9 |
Corporates | 10,008.8 |  |  | 367.5 |  |  | (163.5 | ) |  | 10,212.8 |  |  | 10,212.8 |
Hybrids | 483.6 |  |  | 27.8 |  |  | (3.1 | ) |  | 508.3 |  |  | 508.3 |
Municipals | 1,005.2 |  |  | 59.1 |  |  | (27.4 | ) |  | 1,036.9 |  |  | 1,036.9 |
Agency residential mortgage-backed securities | 108.7 |  |  | 2.7 |  |  | (0.4 | ) |  | 111.0 |  |  | 111.0 |
Non-agency residential mortgage-backed securities | 1,274.8 |  |  | 88.4 |  |  | (9.3 | ) |  | 1,353.9 |  |  | 1,353.9 |
U.S. Government | 391.5 |  |  | 6.4 |  |  | (3.9 | ) |  | 394.0 |  |  | 394.0 |
Total fixed maturities | 15,185.3 |  |  | 605.9 |  |  | (212.9 | ) |  | 15,578.3 |  |  | 15,578.3 |
Equity securities |  |  |  |  |  |  |  |  |
Available-for-sale | 265.2 |  |  | 9.2 |  |  | (4.6 | ) |  | 269.8 |  |  | 269.8 |
Held for trading | 110.2 |  |  | 1.6 |  |  | (44.6 | ) |  | 67.2 |  |  | 67.2 |
Total equity securities | 375.4 |  |  | 10.8 |  |  | (49.2 | ) |  | 337.0 |  |  | 337.0 |
Derivatives | 140.6 |  |  | 95.3 |  |  | (8.5 | ) |  | 227.4 |  |  | 227.4 |
Asset-backed loans | 430.2 |  |  | — |  |  | — |  |  | 430.2 |  |  | 430.2 |
Other invested assets |  |  |  |  |  |  |  |  |
Policy loans and other invested assets | 27.6 |  |  | — |  |  | — |  |  | 27.6 |  |  | 27.6 |
Total investments | $ | 16,159.1 |  |  | $ | 712.0 |  |  | $ | (270.6 | ) |  | $ | 16,600.5 |  |  | $ | 16,600.5 |
| 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-backed 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 |
Included in AOCI were unrealized gains of $0.9 and unrealized losses of $1.9 related to the non-credit portion of other-than-temporary impairments on non-agency residential mortgage-backed securities at both June 30, 2013 and September 30, 2012, respectively. The structured security write downs represent additional write downs on securities that were previously impaired. There have been no impairments or write downs on any of the recently purchased non-agency residential mortgage-backed securities. Securities held on deposit with various state regulatory authorities had a fair value of $19.6 and $20.7 at June 30, 2013 and September 30, 2012, respectively. Maturities of Fixed-maturity 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.
| June 30, 2013
| Amortized Cost |  | Fair Value
Corporates, Non-structured Hybrids, Municipal and U.S. Government securities: |  |  |
Due in one year or less | $ | 394.5 |  |  | $ | 398.0 |
Due after one year through five years | 2,720.5 |  |  | 2,783.6 |
Due after five years through ten years | 3,468.3 |  |  | 3,528.8 |
Due after ten years | 5,246.5 |  |  | 5,379.5 |
Subtotal | 11,829.8 |  |  | 12,089.9 |
Other securities which provide for periodic payments: |  |  |
Asset-backed securities | 1,416.2 |  |  | 1,437.5 |
Commercial-mortgage-backed securities | 496.5 |  |  | 523.9 |
Structured hybrids | 59.3 |  |  | 62.1 |
Agency residential mortgage-backed securities | 108.7 |  |  | 111.0 |
Non-agency residential mortgage-backed securities | 1,274.8 |  |  | 1,353.9 |
Total fixed maturity available-for-sale securities | $ | 15,185.3 |  |  | $ | 15,578.3 |
Securities in an Unrealized Loss Position FGL's available-for-sale securities with unrealized losses are reviewed for potential other-than-temporary impairments. In evaluating whether a decline in value is other-than-temporary, FGL considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. FGL also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. FGL analyzes its ability to recover the amortized cost by comparing the net present value of cash flows expected to be collected with the amortized cost of the security. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions, based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. If the net present value is less than the amortized cost of the investment, an other-than-temporary impairment is recognized. FGL has concluded that the fair values of the securities presented in the table below were not other-than-temporarily impaired as of June 30, 2013. The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category, were as follows:
| June 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 | $ | 300.6 |  |  | $ | (4.1 | ) |  | $ | 77.6 |  |  | $ | (0.5 | ) |  | $ | 378.2 |  |  | $ | (4.6 | )
Commercial-mortgage-backed securities | 28.7 |  |  | (0.3 | ) |  | — |  |  | (0.4 | ) |  | 28.7 |  |  | (0.7 | )
Corporates | 3,133.5 |  |  | (142.4 | ) |  | 396.0 |  |  | (21.1 | ) |  | 3,529.5 |  |  | (163.5 | )
Hybrids | 75.4 |  |  | (2.5 | ) |  | 40.7 |  |  | (0.6 | ) |  | 116.1 |  |  | (3.1 | )
Equities | 90.9 |  |  | (3.2 | ) |  | 33.9 |  |  | (1.4 | ) |  | 124.8 |  |  | (4.6 | )
Municipals | 350.9 |  |  | (21.4 | ) |  | 101.4 |  |  | (6.0 | ) |  | 452.3 |  |  | (27.4 | )
Agency residential mortgage-backed securities | 2.5 |  |  | — |  |  | 6.3 |  |  | (0.4 | ) |  | 8.8 |  |  | (0.4 | )
Non-agency residential mortgage-backed securities | 255.5 |  |  | (8.0 | ) |  | 69.2 |  |  | (1.3 | ) |  | 324.7 |  |  | (9.3 | )
U.S. Government | 198.9 |  |  | (3.9 | ) |  | — |  |  | — |  |  | 198.9 |  |  | (3.9 | )
Total available-for-sale securities | $ | 4,436.9 |  |  | $ | (185.8 | ) |  | $ | 725.1 |  |  | $ | (31.7 | ) |  | $ | 5,162.0 |  |  | $ | (217.5 | )
Total number of available-for-sale securities in an unrealized loss position |  |  | 537 |  |  |  |  | 106 |  |  |  |  | 643 |
| 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 |
At June 30, 2013 and September 30, 2012, securities in an unrealized loss position were primarily concentrated in investment grade corporate debt instruments, residential mortgage-backed securities and municipals. Total unrealized losses were $217.5 and $30.6 at June 30, 2013 and September 30, 2012, respectively. The increase in the unrealized loss position is largely due to the increase in Treasury yields over the reporting period. 10 year US Treasury yields increased from 1.63% at September 30, 2012 to 2.48% at June 30, 2013. As a result, corporate debt holdings generally declined in value during this period. The increase in Treasury yields during the June fiscal quarter is attributable to concerns about the cessation of liquidity measures being provided by the Federal Reserve. These concerns were coupled with fears that reduced stimulus would crimp liquidity and affect risk assets, and as a result, credit spreads widened in June. Although elevated Treasury yields, and most recently, credit spreads have resulted in an increase in the unrealized loss position in the portfolio, FGL noted that the largest component of this increase is in securities priced between 90% and 100% of market value. Additionally, FGL noted that the portfolio's exposure to floating rate and less rate-sensitive assets has provided a buffer to rising Treasury yields. At June 30, 2013 and September 30, 2012, securities with a fair value of $25.4 and $1.2, respectively, were depressed greater than 20% of amortized cost (excluding United States Government and United States Government sponsored agency securities), which represented less than 1% of the carrying values of all investments. The increase in unrealized loss positions from September 30, 2012 is primarily due to increases in Treasury yields during this period. Based upon FGL's current evaluation of these securities in accordance with its impairment policy and its intent to retain these investments for a period of time sufficient to allow for recovery in value, FGL has determined that these securities are not other-than-temporarily impaired. Credit Loss Portion of Other-than-temporary Impairments 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 FGL for the three and nine months ended June 30, 2013 and July 1, 2012, for which a portion of the other-than-temporary impairment was recognized in AOCI:
| Three months ended |  | Nine months ended
| June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012
Balance at the beginning of the period | $ | 2.7 |  |  | $ | 2.6 |  |  | $ | 2.7 |  |  | $ | 0.7 |
Increases attributable to credit losses on securities: |  |  |  |  |  |  |
Other-than-temporary impairment was previously recognized | — |  |  | 0.1 |  |  | — |  |  | 0.1 |
Other-than-temporary impairment was not previously recognized | — |  |  | — |  |  | — |  |  | 1.9 |
Balance at the end of the period | $ | 2.7 |  |  | $ | 2.7 |  |  | $ | 2.7 |  |  | $ | 2.7 |
For the three and nine months ended June 30, 2013, FGL recognized impairment losses in operations totaling $0.7 and $1.6, respectively, including credit impairments of $0.5 and $0.8 and change-of-intent impairments of $0.2 and $0.9 and had an amortized cost of $4.1 and a fair value of $2.4 at the time of impairment, respectively. For the three and nine months ended July 1, 2012, FGL recognized impairment losses in operations totaling $2.5 and $19.8, respectively, including credit impairments of $0.7 and $4.7, and change-of-intent impairments of $1.8 and $15.0 and had an amortized cost of $101.9 and a fair value of $80.6 at the time of impairment. 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:
| Three months ended |  | Nine months ended
| June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012
Other-than-temporary impairments recognized in net income: |  |  |  |  |  |  |
Corporates | $ | — |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | 2.2 |
Non-agency residential mortgage-backed securities | 0.2 |  |  | 0.8 |  |  | 1.1 |  |  | 6.9 |
Hybrids | — |  |  | — |  |  | — |  |  | 9.7 |
Other invested assets | 0.5 |  |  | 0.2 |  |  | 0.5 |  |  | 1.0 |
Total other-than-temporary impairments | $ | 0.7 |  |  | $ | 2.5 |  |  | $ | 1.6 |  |  | $ | 19.8 |
Asset-backed Loans "Asset-backed loans" in the Condensed Consolidated Balance Sheets as of June 30, 2013 and September 30, 2012, consisted of the following:
| June 30, 2013 |  | September 30, 2012
Asset-backed loans, by major industry: |  |  |
Wholesale | $ | 23.0 |  |  | $ | 77.2 |
Apparel | 177.5 |  |  | 70.1 |
Jewelry | 59.8 |  |  | 27.9 |
Other | 173.0 |  |  | 6.3 |
Total asset-backed loans | 433.3 |  |  | 181.5 |
Less: Allowance for credit losses | 3.1 |  |  | 1.4 |
Total asset-backed loans, net | $ | 430.2 |  |  | $ | 180.1 |
Allowance for credit losses are established through a provision for credit losses based on its evaluation of the credit quality of its loan portfolio. The following table presents the activity in its allowance for credit losses for the three and nine months ended June 30, 2013 and July 1, 2012:
| Three months ended |  | Nine months ended
| June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012
Allowance for credit losses: |  |  |  |  |  |  |
Balance at beginning of period | $ | 2.8 |  |  | $ | 0.2 |  |  | $ | 1.4 |  |  | $ | — |
Provision for credit losses | 0.3 |  |  | 0.4 |  |  | 1.7 |  |  | 0.6 |
Charge-offs | — |  |  | — |  |  | — |  |  | — |
Recoveries | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 3.1 |  |  | $ | 0.6 |  |  | $ | 3.1 |  |  | $ | 0.6 |
The Company monitors credit quality as indicated by various factors and utilizes such information in its evaluation of the adequacy of the allowance for credit losses. As of June 30, 2013 and September 30, 2012, we had no outstanding loans that either were non-performing, in a non-accrual status, or had been subject to a troubled-debt restructuring. As of June 30, 2013 and September 30, 2012, there were no outstanding loans that had been individually considered impaired, as all loans were in current payment status. Our Internal loan ratings provide information about the credit quality of its asset-based lending borrowers, and its risk of potential loss. The following tables present information about the credit quality of the asset-based loan portfolio, based on National Association of Insurance Commissioners ("NAIC") risk rating, as of June 30, 2013 and September 30, 2012:
NAIC Designation |  | Credit Equivalent Rating |  | June 30, 2013 |  | Percent of Total |  | September 30, 2012 |  | Percent of Total
1 |  | AAA/AA/A |  | $ | 19.8 |  |  | 4.6 | % |  | $ | 75.8 |  |  | 41.7 | %
2 |  | BBB |  | 392.8 |  |  | 90.7 | % |  | 94.9 |  |  | 52.3 | %
3 |  | BB |  | — |  |  | — | % |  | 10.8 |  |  | 6.0 | %
4 |  | B |  | — |  |  | — | % |  | — |  |  | — | %
5 |  | CCC |  | 20.7 |  |  | 4.7 | % |  | — |  |  | — | %
Not rated |  |  |  | — |  |  | — | % |  | — |  |  | — | %
Total |  |  |  | $ | 433.3 |  |  | 100.0 | % |  | $ | 181.5 |  |  | 100.0 | %
Net Investment Income The major sources of "Net investment income" on the accompanying Condensed Consolidated Statements of Operations were as follows:
| Three months ended |  | Nine months ended
| June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012
Fixed maturity available-for-sale securities | $ | 173.8 |  |  | $ | 172.7 |  |  | $ | 507.3 |  |  | $ | 530.4 |
Equity available-for-sale securities | 3.9 |  |  | 4.8 |  |  | 11.5 |  |  | 10.8 |
Policy loans | 0.1 |  |  | 0.2 |  |  | 0.6 |  |  | 0.6 |
Invested cash and short-term investments | 0.2 |  |  | 2.1 |  |  | 1.4 |  |  | 3.5 |
Other investments | 15.2 |  |  | 2.3 |  |  | 29.4 |  |  | 2.9 |
Gross investment income | 193.2 |  |  | 182.1 |  |  | 550.2 |  |  | 548.2 |
External investment expense | (3.6 | ) |  | (2.9 | ) |  | (10.5 | ) |  | (9.2 | )
Net investment income | $ | 189.6 |  |  | $ | 179.2 |  |  | $ | 539.7 |  |  | $ | 539.0 |
Net investment gains (losses) "Net investment gains (losses)" reported on the accompanying Condensed Consolidated Statements of Operations were as follows:
| Three months ended |  | Nine months ended
| June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012
Net realized gains before other-than-temporary impairments | $ | 34.7 |  |  | $ | 40.4 |  |  | $ | 280.2 |  |  | $ | 192.0 |
Gross other-than-temporary impairments | (0.7 | ) |  | (2.4 | ) |  | (1.6 | ) |  | (21.3 | )
Non-credit portion of other-than-temporary impairments included in other comprehensive income | — |  |  | (0.1 | ) |  | — |  |  | 1.5 |
Net realized gains on fixed maturity available-for-sale securities | 34.0 |  |  | 37.9 |  |  | 278.6 |  |  | 172.2 |
Realized gains on equity securities | 4.5 |  |  | 0.4 |  |  | 6.4 |  |  | 0.8 |
Net realized gains on securities | 38.5 |  |  | 38.3 |  |  | 285.0 |  |  | 173.0 |
Realized gains (losses) on certain derivative instruments | 54.0 |  |  | (26.3 | ) |  | 99.3 |  |  | (32.0 | )
Unrealized gains on certain derivative instruments | (34.0 | ) |  | (24.9 | ) |  | 27.3 |  |  | 114.6 |
Change in fair value of derivatives | 20.0 |  |  | (51.2 | ) |  | 126.6 |  |  | 82.6 |
Realized gains on other invested assets | (0.2 | ) |  | — |  |  | (0.1 | ) |  | (1.0 | )
Net investment gains (losses) | $ | 58.3 |  |  | $ | (12.9 | ) |  | $ | 411.5 |  |  | $ | 254.6 |
For the three and nine months ended June 30, 2013, principal repayments, calls, tenders, and proceeds from the sale of fixed maturity available-for-sale securities totaled $836.0 and $5,741.6, gross gains on such sales totaled $35.0 and $284.0 and gross losses totaled $0.5 and $1.0, respectively. The proceeds from the sale of fixed maturity available-for sale securities exclude maturities and repayments for the three and nine months ended June 30, 2013. For the three and nine months ended July 1, 2012, principal repayments, calls, tenders, and proceeds from the sale of fixed maturity available-for-sale securities, including assets transferred to Wilton Re as discussed in Note 12 totaled $1,216.2 and $4,366.3, gross gains on such sales totaled $49.5 and $211.9 and gross losses totaled $9.2 and $20.9, respectively. The proceeds from the sale of fixed maturity available-for sale securities exclude maturities and repayments for the three and nine months ended July 1, 2012. Underlying write-downs taken to fixed maturity available-for-sale securities as a result of other-than-temporary impairments that were recognized in earnings and included in net realized gains on securities above were $0.7 and $1.6 for the three and nine months ended June 30, 2013, respectively and were $2.5 and $19.8 for the three and nine months ended July 1, 2012, respectively. Cash flows from consolidated investing activities by security classification were as follows:
| Nine months ended
| June 30, 2013 |  | July 1, 2012
Proceeds from investments sold, matured or repaid: |  |  |
Available-for-sale | $ | 7,052.1 |  |  | $ | 4,208.6 |
Held-to-maturity | — |  |  | 75.7 |
Trading (acquired for holding) | 91.8 |  |  | 12.0 |
Derivatives and other | 252.4 |  |  | 90.0 |
| $ | 7,396.3 |  |  | $ | 4,386.3 |
Cost of investments acquired: |  |  |
Available-for-sale | $ | (7,148.7 | ) |  | $ | (3,697.0 | )
Held-to-maturity | — |  |  | (34.7 | )
Trading (acquired for holding) | (10.2 | ) |  | (22.9 | )
Derivatives and other | (112.5 | ) |  | (106.0 | )
| $ | (7,271.4 | ) |  | $ | (3,860.6 | )
Concentrations of Financial Instruments As of June 30, 2013, the Company’s most significant investment in one industry, excluding treasuries, was FGL’s investment securities in the banking industry with a fair value of $1,944.6, or 11.8%, of the invested assets portfolio. FGL’s holdings in this industry includes investments in 78 different issuers with the top ten investments accounting for 34.9% of the total holdings in this industry. As of June 30, 2013 and September 30, 2012 the Company had investments in 13 issuers that exceeded 10% of the Company's stockholders’ equity with a fair value of $1,629.2 and $1,625.9, or 10.0% and 9.8% of the invested assets portfolio, respectively. Additionally, FGL’s largest concentration in any single issuer as of June 30, 2013 and September 30, 2012 had a fair value of $156.9 and $152.9, or 1.0% and 0.7% of FGL's invested assets portfolio, respectively.

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