Investments (Tables)

6 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

The Company’s consolidated investments are summarized as follows:



	March 31, 2015
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Carrying Value
Fixed-maturity securities, available-for sale
Asset-backed securities	$	1,939.6	$	10.1	$	(18.5	)	$	1,931.2	$	1,931.2
Commercial mortgage-backed securities	707.2		22.9		(0.8		)	729.3		729.3
Corporates	9,270.2		647.5		(74.6		)	9,843.1		9,843.1
Hybrids	1,302.9		74.0		(19.6		)	1,357.3		1,357.3
Municipals	1,280.7		156.7		(1.8		)	1,435.6		1,435.6
Residential mortgage-backed securities	2,107.8		108.3		(21.8		)	2,194.3		2,194.3
U.S. Government	308.8		11.1		(0.1		)	319.8		319.8
Total fixed maturities	16,917.2		1,030.6		(137.2		)	17,810.6		17,810.6
Equity securities
Available-for-sale	562.1		34.7		(2.9		)	593.9		593.9
Held for trading	70.9		41.8		(34.9		)	77.8		77.8
Total equity securities	633.0		76.5		(37.8		)	671.7		671.7
Derivatives	205.0		83.6		(20.3		)	268.3		268.3
Asset-based loans	660.2		—		—			660.2		660.2
Other invested assets	341.8		—		—			341.8		341.8
Total investments	$	18,757.2	$	1,190.7	$	(195.3	)	$	19,752.6	$	19,752.6



	September 30, 2014
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Carrying Value
Fixed-maturity securities, available-for-sale
Asset-backed securities	$	1,800.8	$	10.9	$	(18.8	)	$	1,792.9	$	1,792.9
Commercial mortgage-backed securities	617.6		21.3		(2.0		)	636.9		636.9
Corporates	9,345.5		499.2		(48.9		)	9,795.8		9,795.8
Hybrids	1,279.1		52.2		(15.2		)	1,316.1		1,316.1
Municipals	1,149.9		116.2		(6.3		)	1,259.8		1,259.8
Residential mortgage-backed securities	1,984.8		140.3		(11.1		)	2,114.0		2,114.0
U.S. Government	291.0		6.4		(1.4		)	296.0		296.0
Total fixed-maturity securities	16,468.7		846.5		(103.7		)	17,211.5		17,211.5
Equity securities
Available-for-sale	645.7		23.0		(5.1		)	663.6		663.6
Held for trading	141.2		8.2		(44.9		)	104.5		104.5
Total equity securities	786.9		31.2		(50.0		)	768.1		768.1
Derivatives	177.7		123.3		(4.7		)	296.3		296.3
Asset-based loans	811.6		—		—			811.6		811.6
Other invested assets	164.9		0.1		—			165.0		165.0
Total investments	$	18,409.8	$	1,001.1	$	(158.4	)	$	19,252.5	$	19,252.5

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.



	March 31, 2015
	Amortized Cost		Fair Value
Corporates, Non-structured Hybrids, Municipal and U.S. Government securities:
Due in one year or less	$	328.2	$	330.7
Due after one year through five years	2,292.8		2,352.0
Due after five years through ten years	2,894.6		3,026.7
Due after ten years	5,934.4		6,530.1
Subtotal	11,450.0		12,239.5
Other securities which provide for periodic payments:
Asset-backed securities	1,939.6		1,931.2
Commercial-mortgage-backed securities	707.2		729.3
Structured hybrids	712.6		716.3
Residential mortgage-backed securities	2,107.8		2,194.3
Total fixed maturity available-for-sale securities	$	16,917.2	$	17,810.6

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:



	March 31, 2015
	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	$	560.1	$	(7.7	)	$	474.5	$	(10.8	)	$	1,034.6	$	(18.5	)
Commercial-mortgage-backed securities	51.3		(0.4		)	8.4		(0.4		)	59.7		(0.8		)
Corporates	853.5		(32.6		)	761.2		(42.0		)	1,614.7		(74.6		)
Equities	35.0		(0.7		)	50.2		(2.2		)	85.2		(2.9		)
Hybrids	149.2		(7.8		)	143.8		(11.8		)	293.0		(19.6		)
Municipals	63.2		(0.6		)	125.8		(1.2		)	189.0		(1.8		)
Residential mortgage-backed securities	411.7		(10.2		)	297.5		(11.6		)	709.2		(21.8		)
U.S. Government	69.9		—			49.6		(0.1		)	119.5		(0.1		)
Total available-for-sale securities	$	2,193.9	$	(60.0	)	$	1,911.0	$	(80.1	)	$	4,104.9	$	(140.1	)
Total number of available-for-sale securities in an unrealized loss position			322					245					567



	September 30, 2014
	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	$	825.8	$	(11.8	)	$	288.2	$	(7.0	)	$	1,114.0	$	(18.8	)
Commercial mortgage-backed securities	160.3		(0.9		)	0.4		(1.1		)	160.7		(2.0		)
Corporates	816.6		(16.3		)	1,127.8		(32.6		)	1,944.4		(48.9		)
Equities	180.4		(2.2		)	54.9		(2.9		)	235.3		(5.1		)
Hybrids	258.2		(2.3		)	290.0		(12.9		)	548.2		(15.2		)
Municipals	—		—			264.9		(6.3		)	264.9		(6.3		)
Residential mortgage-backed securities	298.5		(5.8		)	177.6		(5.3		)	476.1		(11.1		)
U.S. Government	37.3		(0.1		)	81.7		(1.3		)	119.0		(1.4		)
Total available-for-sale securities	$	2,577.1	$	(39.4	)	$	2,285.5	$	(69.4	)	$	4,862.6	$	(108.8	)
Total number of available-for-sale securities in an unrealized loss position			319					310					629

Portfolio of Asset-Backed Loans and Other Invested Assets

portfolio of asset-based loans receivable, included in “Asset-based loans” in the unaudited Condensed Consolidated Balance Sheets as of March 31, 2015 and September 30, 2014, consisted of the following:



	March 31, 2015		September 30, 2014
Asset-based loans, net of deferred fees, by major industry:
Electronics	$	167.1	$	245.4
Apparel	188.1		191.6
Jewelry	83.9		100.1
Home Furnishings	55.7		71.7
Manufacturing	49.9		56.9
Transportation	32.5		44.3
Sporting Goods	11.8		13.9
Other	105.0		94.9
Total asset-based loans	694.0		818.8
Less: Allowance for credit losses	33.8		7.2
Total asset-based loans, net	$	660.2	$	811.6

Schedule of Allowance for Credit Losses

The following table presents the activity in its allowance for credit losses for the three and six months ended March 31, 2015 and 2014:



	Three months ended March 31,					Six months ended March 31,
	2015			2014		2015			2014
Allowance for credit losses:
Balance at beginning of period	$	7.5		$	7.0	$	7.2		$	5.2
Provision for credit losses	102.9			—		103.2			1.8
Charge-offs	(76.6		)	—		(76.6		)	—
Balance at end of period	$	33.8		$	7.0	$	33.8		$	7.0

Schedule of Credit Quality of Asset-Based Loan Portfolio



	Internal Risk Rating
	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2015	$	142.8	$	57.8	$	326.3	$	167.1	$	694.0
September 30, 2014	$	195.3	$	372.7	$	250.8	$	—	$	818.8

Net Investment Income

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



	Three months ended March 31,						Six months ended March 31,
	2015			2014			2015			2014
Fixed maturity available-for-sale securities	$	207.7		$	188.7		$	414.2		$	376.0
Equity available-for-sale securities	7.8			5.1			17.7			9.6
Asset-based loans	10.9			15.9			26.5			27.8
Other investments	3.2			0.6			6.5			1.7
Gross investment income	229.6			210.3			464.9			415.1
External investment expense	(4.6		)	(3.9		)	(9.1		)	(7.5		)
Net investment income	$	225.0		$	206.4		$	455.8		$	407.6

Net Investment Gains

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



	Three months ended March 31,						Six months ended March 31,
	2015			2014			2015			2014
Net realized gains on fixed maturity available-for-sale securities	$	7.7		$	7.9		$	5.9		$	17.7
Realized (losses) gains on equity securities	(6.4		)	5.4			(3.2		)	10.8
Net realized gains on securities	1.3			13.3			2.7			28.5
Realized gains on certain derivative instruments	43.2			50.0			88.2			110.6
Unrealized (losses) gains on certain derivative instruments	(51.2		)	(27.5		)	(50.7		)	39.3
Change in fair value of other embedded derivatives	0.4			—			1.0			—
Change in fair value of derivatives	(7.6		)	22.5			38.5			149.9
Realized gains on other invested assets	2.4			5.1			6.9			4.4
Net investment (losses) gains	$	(3.9	)	$	40.9		$	48.1		$	182.8

Cash Flows from Consolidated Investing Activities by Security

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



	Six months ended March 31,
	2015			2014
Proceeds from investments sold, matured or repaid:
Available-for-sale	$	1,848.5		$	2,675.4
Derivatives and other	209.4			188.2
	$	2,057.9		$	2,863.6
Cost of investments acquired:
Available-for-sale	$	(2,154.4	)	$	(3,815.7	)
Trading (acquired for holding)	—			(40.5		)
Derivatives and other	(313.8		)	(176.7		)
	$	(2,468.2	)	$	(4,032.9	)

Concentration Risk Disclosure [Text Block]

Concentrations of Investments

As of March 31, 2015 and September 30, 2014, the Company’s most significant investment in one industry, excluding U.S. Government securities, was the Company’s investment securities in the banking industry with a fair value of $2,273.6 or 11.5% and $2,240.3, or 11.6%, of the Company's invested assets portfolio, respectively. FGL’s holdings in this industry includes investments in 83 different issuers with the top ten investments accounting for 39.5% of the total holdings in this industry. As of March 31, 2015 and September 30, 2014, the Company had investments in 8 and 4 issuers that exceeded 10% of the Company's stockholders’ equity with a fair value of $1,202.8 and $768.5, or 6.1% and 4.0% of the invested assets portfolio, respectively. Additionally, the Company’s largest concentration in any single issuer as of March 31, 2015 and September 30, 2014, had a fair value of $187.8, or 1.0% and $250.0, or 1.3%, respectively, of the Company's invested assets portfolio.