Investments (Tables)

9 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

The Company’s consolidated investments are summarized as follows:



	June 30, 2015
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Carrying Value
Fixed-maturity securities, available-for sale
Asset-backed securities	$	1,906.7	$	4.9	$	(24.1	)	$	1,887.5	$	1,887.5
Commercial mortgage-backed securities	814.2		14.4		(7.0		)	821.6		821.6
Corporates	9,378.5		346.2		(173.6		)	9,551.1		9,551.1
Hybrids	1,223.6		46.4		(28.9		)	1,241.1		1,241.1
Municipals	1,378.5		91.9		(19.8		)	1,450.6		1,450.6
Residential mortgage-backed securities	2,099.5		100.6		(24.7		)	2,175.4		2,175.4
U.S. Government	587.5		9.2		(0.4		)	596.3		596.3
Total fixed maturities	17,388.5		613.6		(278.5		)	17,723.6		17,723.6
Equity securities
Available-for-sale	561.1		22.9		(4.4		)	579.6		579.6
Held for trading	18.7		23.2		—			41.9		41.9
Total equity securities	579.8		46.1		(4.4		)	621.5		621.5
Derivatives	211.9		47.0		(38.5		)	220.4		220.4
Asset-based loans	490.0		—		—			490.0		490.0
Other invested assets	442.4		—		—			442.4		442.4
Total investments	$	19,112.6	$	706.7	$	(321.4	)	$	19,497.9	$	19,497.9



	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.



	June 30, 2015
	Amortized Cost		Fair Value
Corporates, Non-structured Hybrids, Municipal and U.S. Government securities:
Due in one year or less	$	203.2	$	205.7
Due after one year through five years	2,113.2		2,153.2
Due after five years through ten years	2,955.1		3,015.0
Due after ten years	6,623.3		6,804.1
Subtotal	11,894.8		12,178.0
Other securities which provide for periodic payments:
Asset-backed securities	1,906.7		1,887.5
Commercial-mortgage-backed securities	814.2		821.6
Structured hybrids	673.3		661.1
Residential mortgage-backed securities	2,099.5		2,175.4
Total fixed maturity available-for-sale securities	$	17,388.5	$	17,723.6

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:



	June 30, 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	$	725.9	$	(10.2	)	$	597.4	$	(13.9	)	$	1,323.3	$	(24.1	)
Commercial-mortgage-backed securities	318.9		(6.9		)	56.8		(0.1		)	375.7		(7.0		)
Corporates	2,832.7		(127.3		)	893.8		(46.3		)	3,726.5		(173.6		)
Equities	59.9		(1.3		)	94.6		(3.1		)	154.5		(4.4		)
Hybrids	174.1		(5.2		)	360.9		(23.7		)	535.0		(28.9		)
Municipals	339.4		(12.8		)	210.9		(7.0		)	550.3		(19.8		)
Residential mortgage-backed securities	496.2		(12.7		)	246.2		(12.0		)	742.4		(24.7		)
U.S. Government	349.9		—			59.3		(0.4		)	409.2		(0.4		)
Total available-for-sale securities	$	5,297.0	$	(176.4	)	$	2,519.9	$	(106.5	)	$	7,816.9	$	(282.9	)
Total number of available-for-sale securities in an unrealized loss position			783					300					1083



	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 June 30, 2015 and September 30, 2014, consisted of the following:



	June 30, 2015		September 30, 2014
Asset-based loans, net of deferred fees, by major industry:
Apparel	$	171.2	$	191.6
Jewelry	81.4		100.1
Electronics	70.8		245.4
Home Furnishings	55.8		71.7
Manufacturing	49.8		56.9
Other	105.4		153.1
Total asset-based loans	534.4		818.8
Less: Allowance for credit losses	44.4		7.2
Total asset-based loans, net	$	490.0	$	811.6

Schedule of Allowance for Credit Losses

The following table presents the activity in its allowance for credit losses for the three and nine months ended June 30, 2015 and 2014:



	Three months ended June 30,					Nine months ended June 30,
	2015		2014			2015			2014
Allowance for credit losses:
Balance at beginning of period	$	33.8	$	7.0		$	7.2		$	5.2
Provision for credit losses	10.6		(0.3		)	113.8			1.5
Charge-offs	—		—			(76.6		)	—
Balance at end of period	$	44.4	$	6.7		$	44.4		$	6.7

Schedule of Credit Quality of Asset-Based Loan Portfolio



	Internal Risk Rating
	Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2015	$	126.7	$	44.9	$	271.5	$	91.3	$	534.4
September 30, 2014	$	195.3	$	372.7	$	250.8	$	—	$	818.8

Net Investment Income

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



	Three months ended June 30,						Nine months ended June 30,
	2015			2014			2015			2014
Fixed maturity available-for-sale securities	$	209.6		$	192.1		$	623.8		$	568.1
Equity available-for-sale securities	10.2			7.1			27.9			16.7
Asset-based loans	9.7			16.7			36.2			44.5
Other investments	7.3			1.8			13.8			3.5
Gross investment income	236.8			217.7			701.7			632.8
External investment expense	(5.2		)	(6.8		)	(14.3		)	(14.3		)
Net investment income	$	231.6		$	210.9		$	687.4		$	618.5

Net Investment Gains

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



	Three months ended June 30,					Nine months ended June 30,
	2015			2014		2015			2014
Net realized gains on fixed maturity available-for-sale securities	$	54.6		$	74.4	$	60.5		$	92.1
Realized (losses) gains on equity securities	(1.5		)	3.0		(4.7		)	13.8
Net realized gains on securities	53.1			77.4		55.8			105.9
Realized gains on certain derivative instruments	41.0			62.7		129.2			173.3
Unrealized (losses) gains on certain derivative instruments	(48.6		)	38.9		(99.3		)	78.2
Change in fair value of other embedded derivatives	(0.5		)	0.3		0.5			0.3
Change in fair value of derivatives	(8.1		)	101.9		30.4			251.8
Realized (losses) gains on other invested assets and funds withheld receivables	(39.3		)	5.3		(32.4		)	9.7
Net investment gains	$	5.7		$	184.6	$	53.8		$	367.4

Cash Flows from Consolidated Investing Activities by Security

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



	Nine months ended June 30,
	2015			2014
Proceeds from investments sold, matured or repaid:
Available-for-sale	$	3,860.6		$	4,402.1
Trading (acquired for holding)	—			54.9
Derivatives and other	301.5			297.5
	$	4,162.1		$	4,754.5
Cost of investments acquired:
Available-for-sale	$	(4,495.3	)	$	(5,594.5	)
Trading (acquired for holding)	—			(67.8		)
Derivatives and other	(470.3		)	(267.4		)
	$	(4,965.6	)	$	(5,929.7	)

Concentration Risk Disclosure [Text Block]

Concentrations of Investments

As of June 30, 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 $1,982.0 or 10.2% and $2,240.3, or 11.6%, of the Company's invested assets portfolio, respectively. The Company’s holdings in this industry includes investments in 78 different issuers with the top 10 investments accounting for 40.3% of the total holdings in this industry. As of June 30, 2015 and September 30, 2014, the Company had investments in 14 and 4 issuers that exceeded 10% of the Company's stockholders’ equity with a fair value of $1,513.5 and $768.5, or 7.8% and 4.0% of the invested assets portfolio, respectively. Additionally, the Company’s largest concentration in any single issuer as of June 30, 2015 and September 30, 2014, had a fair value of $175.1, or 0.9% and $250.0, or 1.3%, respectively, of the Company's invested assets portfolio.