The following tables set forth amortized costs, gross unrealized gains and losses and fair values of the Company's fixed maturity securities:

		September 30, 2012
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value

		(In millions)
Corporate bonds		$	5,819.0	$	611.3	$	(2.8)	$	6,427.5
U.S. government and agency bonds			365.6		64.7		0.0		430.3
U.S. state and political subdivision bonds			158.7		17.8		0.0		176.5
Foreign government bonds			61.4		10.9		0.0		72.3
S&P 500 Index options			13.8		0.0		0.0		13.8

	Total fixed maturity securities	$	6,418.5	$	704.7	$	(2.8)	$	7,120.4

		December 31, 2011
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value

		(In millions)
Corporate bonds		$	5,588.4	$	491.8	$	(20.9)	$	6,059.3
U.S. government and agency bonds			387.8		64.3		0.0		452.1
U.S. state and political subdivision bonds			164.8		14.0		0.0		178.8
Foreign government bonds			61.7		10.4		0.0		72.1
S&P 500 Index options			7.2		0.0		0.0		7.2

	Total fixed maturity securities	$	6,209.9	$	580.5	$	(20.9)	$	6,769.5

The following table sets forth the amortized costs and fair values of the Company's fixed maturity securities by contractual maturity:

		September 30, 2012				December 31, 2011
		Amortized		Fair		Amortized		Fair
		Cost		Value		Cost		Value

		(In millions)
Due in one year or less		$	803.0	$	818.6	$	632.7	$	645.0
Due after one year through five years			2,697.1		2,915.8		2,534.6		2,693.6
Due after five years through ten years			2,076.6		2,343.5		2,173.9		2,392.5
Due after ten years			841.8		1,042.5		868.7		1,038.4

	Total fixed maturity securities	$	6,418.5	$	7,120.4	$	6,209.9	$	6,769.5

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Callable bonds without make-whole provisions represented 8.3%, or $592.4 million, of the Company's fixed maturity securities portfolio at September 30, 2012. At September 30, 2012, the Company did not have any direct exposure to sub-prime or Alt-A mortgages in its fixed maturity securities portfolio. At September 30, 2012, the Company did not have any direct exposure to euro zone government issued debt or debt issued by investment and commercial banks headquartered in Portugal, Ireland, Italy, Greece or Spain. At September 30, 2012, fixed maturity securities issued by investment and commercial banks headquartered in other euro zone countries represented 0.8%, or $54.7 million, of the Company's fixed maturity security portfolio. There were no impairments on fixed maturity securities related to euro zone exposure during the first nine months of 2012.

The following tables set forth the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

			September 30, 2012
			Total				Less than 12 months				12 or more months
			Number		Amount		Number		Amount		Number		Amount

			(Dollars in millions)
Unrealized losses:
		Corporate bonds		98	$	2.8		82	$	1.6		16	$	1.2

Fair market value of securities with
	unrealized losses:
		Corporate bonds		98	$	87.0		82	$	71.4		16	$	15.6

			December 31, 2011
			Total				Less than 12 months				12 or more months
			Number		Amount		Number		Amount		Number		Amount

			(Dollars in millions)
Unrealized losses:
		Corporate bonds		360	$	20.9		334	$	17.4		26	$	3.5

Fair market value of securities with
	unrealized losses:
		Corporate bonds		360	$	425.3		334	$	398.0		26	$	27.3

The unrealized losses on the investment securities set forth above were partly due to increases in market interest rates subsequent to their purchase by the Company and have also been affected by overall economic factors. The Company expects the fair value of these investment securities to recover as the investment securities approach their maturity dates or sooner if market yields for such investment securities decline. The Company does not believe that any of the investment securities are impaired due to credit quality or due to any company or industry specific event. Based on management's evaluation of the securities and the Company's intent to hold the securities, and as it is unlikely that the Company will be required to sell the securities, none of the unrealized losses summarized in this table are considered other-than-temporary.

The Company underwrites mortgage loans on commercial property throughout the United States. In addition to real estate collateral, the Company requires either partial or full recourse on most loans. At September 30, 2012, the Company did not have any direct exposure to sub-prime or Alt-A mortgages in its commercial mortgage loan portfolio.

The following table sets forth the commercial mortgage loan portfolio by property type, by geographic region within the U.S. and by U.S. state:

			September 30, 2012				December 31, 2011
			Amount		Percent		Amount		Percent

			(Dollars in millions)
Property type:
	Retail		$	2,492.2	48.4	%	$	2,457.8	50.1	%
	Industrial			967.4	18.8			900.4	18.4
	Office			944.7	18.3			911.1	18.6
	Hotel/motel			297.5	5.8			241.9	4.9
	Commercial			199.4	3.9			187.1	3.8
	Apartment and other			247.8	4.8			204.0	4.2

		Total commercial mortgage loans	$	5,149.0	100.0	%	$	4,902.3	100.0	%

Geographic region*:
	Pacific		$	1,811.2	35.2	%	$	1,699.3	34.7	%
	South Atlantic			1,028.9	20.0			953.8	19.5
	West South Central			629.6	12.2			605.3	12.3
	Mountain			609.1	11.8			585.8	11.9
	East North Central			420.3	8.2			393.4	8.0
	Middle Atlantic			241.8	4.7			243.8	5.0
	West North Central			183.9	3.6			184.8	3.8
	East South Central			131.7	2.5			129.9	2.6
	New England			92.5	1.8			106.2	2.2

		Total commercial mortgage loans	$	5,149.0	100.0	%	$	4,902.3	100.0	%

U.S. state:
	California		$	1,418.4	27.5	%	$	1,332.0	27.2	%
	Texas			574.0	11.1			550.8	11.2
	Florida			316.0	6.2			305.3	6.2
	Georgia			304.3	5.9			270.1	5.5
	Other states			2,536.3	49.3			2,444.1	49.9

		Total commercial mortgage loans	$	5,149.0	100.0	%	$	4,902.3	100.0	%

* Geographic regions obtained from the American Council of Life Insurers Mortgage Loan Portfolio Profile.

Through its concentration of commercial mortgage loans in California, the Company is exposed to potential losses from an economic downturn in California as well as certain catastrophes, such as earthquakes and fires that may affect certain areas of the western region. Borrowers are required to maintain fire insurance coverage to provide reimbursement for any losses due to fire. Management diversifies the commercial mortgage loan portfolio within California by both location and type of property in an effort to reduce certain catastrophe and economic exposure. However, diversification may not always eliminate the risk of such losses. Historically, the delinquency rate of the California-based commercial mortgage loans has been substantially below the industry average and consistent with the Company's experience in other states. The Company does not require earthquake insurance for the properties when it underwrites new loans. However, management does consider the potential for earthquake loss based upon seismic surveys and structural information specific to each property. The Company does not expect a catastrophe or earthquake damage in the western region to have a material adverse effect on its business, financial position, results of operations or cash flows. Currently, the Company's California exposure is primarily in Los Angeles County, Orange County, San Diego County and the Bay Area Counties. There is a smaller concentration of commercial mortgage loans in the Inland Empire and the San Joaquin Valley where there has been greater economic decline. Due to the concentration of commercial mortgage loans in California, a continued economic decline in California could have a material adverse effect on the Company's business, financial position, results of operations or cash flows.

The carrying value of commercial mortgage loans represents the outstanding principal balance less a loan loss allowance for probable uncollectible amounts. The commercial mortgage loan loss allowance is estimated based on evaluating known and inherent risks in the loan portfolio and consists of a general and a specific loan loss allowance.

The Company continuously monitors its commercial mortgage loan portfolio for potential nonperformance by evaluating the portfolio and individual loans. Key factors that are monitored are as follows:

If it is determined a loan is impaired, a specific allowance is recorded, if necessary.

The general loan loss allowance is based on the Company's analysis of factors including changes in the size and composition of the loan portfolio, debt coverage ratios, loan to value ratios, actual loan loss experience and individual loan analysis.

An impaired commercial mortgage loan is a loan that is not performing to the contractual terms of the loan agreement. A specific allowance for losses is recorded when a loan is considered to be impaired and it is probable that all amounts due will not be collected. The Company also holds specific loan loss allowances on certain performing commercial mortgage loans that it continues to monitor and evaluate. Impaired commercial mortgage loans without specific allowances for losses are those for which the Company has determined that it remains probable that all amounts due will be collected although the timing or nature may be outside the original contractual terms. In addition, for impaired commercial mortgage loans, the Company evaluates the cost to dispose of the underlying collateral, any significant out of pocket expenses the loan may incur and other quantitative information management has concerning the loan. Portions of loans that are deemed uncollectible are written off against the allowance, and recoveries, if any, are credited to the allowance.

The following table sets forth changes in the commercial mortgage loan loss allowance:

				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2012		2011		2012		2011

				(In millions)
Commercial mortgage loan loss allowance:
	Beginning balance			$	45.6	$	43.5	$	48.1	$	36.1

		Provision			5.0		7.5		11.4		25.5
		Charge-offs, net			(2.6)		(3.9)		(11.5)		(14.5)

			Ending balance	$	48.0	$	47.1	$	48.0	$	47.1

	Specific loan loss allowance			$	25.0	$	26.8	$	25.0	$	26.8
	General loan loss allowance				23.0		20.3		23.0		20.3

			Total commercial mortgage loan loss allowance	$	48.0	$	47.1	$	48.0	$	47.1

The higher commercial mortgage loan loss allowance as of September 30, 2012 compared to September 30, 2011 was primarily due to the increase in the general loan loss allowance as of September 30, 2012 compared to September 30, 2011. The decrease in the provision and charge-offs for the third quarter and first nine months of 2012 compared to the same periods of 2011 were primarily related to lower losses associated with foreclosures, accepted deeds in lieu of foreclosure on commercial mortgage loans and other related charges associated with commercial mortgage loans leaving the portfolio during the third quarter and first nine months of 2012.

The following table sets forth the recorded investment in commercial mortgage loans:

		September 30, 2012		December 31, 2011

		(In millions)
Commercial mortgage loans collectively evaluated for impairment		$	5,098.4	$	4,845.7
Commercial mortgage loans individually evaluated for impairment			98.6		104.7
Commercial mortgage loan loss allowance			(48.0)		(48.1)

	Total commercial mortgage loans	$	5,149.0	$	4,902.3

The Company assesses the credit quality of its commercial mortgage loan portfolio quarterly by reviewing the performance of its portfolio which includes evaluating its performing and nonperforming commercial mortgage loans. Nonperforming commercial mortgage loans include all commercial mortgage loans that are 60 days or more past due and commercial mortgage loans that are not 60 days past due but are not substantially performing to other original contractual terms.

The following tables set forth performing and nonperforming commercial mortgage loans by property type:

		September 30, 2012
								Hotel/				Apartment
		Retail		Office		Industrial		Motel		Commercial		and Other		Total

		(In millions)
Performing commercial mortgage loans		$	2,487.5	$	941.5	$	965.5	$	297.5	$	198.8	$	247.8	$	5,138.6
Nonperforming commercial mortgage loans			4.7		3.2		1.9		0.0		0.6		0.0		10.4

	Total commercial mortgage loans	$	2,492.2	$	944.7	$	967.4	$	297.5	$	199.4	$	247.8	$	5,149.0

		December 31, 2011
								Hotel/				Apartment
		Retail		Office		Industrial		Motel		Commercial		and Other		Total

		(In millions)
Performing commercial mortgage loans		$	2,442.3	$	898.4	$	895.2	$	241.9	$	182.0	$	201.3	$	4,861.1
Nonperforming commercial mortgage loans			15.5		12.7		5.2		0.0		5.1		2.7		41.2

	Total commercial mortgage loans	$	2,457.8	$	911.1	$	900.4	$	241.9	$	187.1	$	204.0	$	4,902.3

The following tables set forth impaired commercial mortgage loans identified in management's specific review of probable loan losses and the related allowance:

						September 30, 2012
								Unpaid				Amount on
						Recorded		Principal		Related		Nonaccrual
						Investment		Balance		Allowance		Status

						(In millions)
Impaired commercial mortgage loans:
	Without specific loan loss allowances:
		Retail				$	12.5	$	12.5	$	0.0	$	2.9
		Office					6.3		6.3		0.0		5.1
		Industrial					3.3		3.3		0.0		0.0
		Apartment and other					1.9		1.9		0.0		0.0
			Total impaired commercial mortgage loans without specific
				loan loss allowances			24.0		24.0		0.0		8.0

	With specific loan loss allowances:
		Retail					35.7		35.7		13.8		6.3
		Office					11.4		11.4		2.7		1.8
		Industrial					10.8		10.8		3.3		0.9
		Hotel/motel					5.9		5.9		0.4		0.0
		Commercial					7.7		7.7		4.7		3.0
		Apartment and other					3.1		3.1		0.1		0.0
			Total impaired commercial mortgage loans with specific
				loan loss allowances			74.6		74.6		25.0		12.0

					Total impaired commercial mortgage loans	$	98.6	$	98.6	$	25.0	$	20.0

						December 31, 2011
								Unpaid				Amount on
						Recorded		Principal		Related		Nonaccrual
						Investment		Balance		Allowance		Status

						(In millions)
Impaired commercial mortgage loans:
	Without specific loan loss allowances:
		Retail				$	8.6	$	8.6	$	0.0	$	2.1
		Office					5.8		5.8		0.0		4.3
		Industrial					5.8		5.8		0.0		0.9
		Hotel/motel					5.9		5.9		0.0		0.0
		Apartment and other					2.8		2.8		0.0		1.1
			Total impaired commercial mortgage loans without specific
				loan loss allowances			28.9		28.9		0.0		8.4

	With specific loan loss allowances:
		Retail					31.7		31.7		10.7		10.2
		Office					18.3		18.3		5.2		10.1
		Industrial					11.5		11.5		5.0		7.5
		Commercial					11.1		11.1		5.3		11.1
		Apartment and other					3.2		3.2		0.4		1.9
			Total impaired commercial mortgage loans with specific
				loan loss allowances			75.8		75.8		26.6		40.8

					Total impaired commercial mortgage loans	$	104.7	$	104.7	$	26.6	$	49.2

The decrease in impaired commercial mortgage loans at September 30, 2012 compared to December 31, 2011 was primarily due to loan repayments and foreclosures during the first nine months of 2012. As of September 30, 2012 and December 31, 2011, the Company did not have any commercial mortgage loans greater than 90 days delinquent that were accruing interest.

A restructuring is considered to be a troubled debt restructuring when the debtor is experiencing financial difficulties and the restructured terms constitute a concession. The Company evaluates all restructured commercial mortgage loans for indications of troubled debt restructurings and the potential losses related to these restructurings. If a loan is considered a troubled debt restructuring, the Company impairs the loan and records a specific allowance for estimated losses. In some cases, the recorded investment in the loan may increase post-restructuring. As a result of adopting the amendments in ASU No. 2011-02, A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring, the Company assessed all restructurings that occurred during the period for identification as troubled debt restructurings. The Company did not identify any troubled debt restructurings that were not already considered impaired.

The following table sets forth information related to the troubled debt restructurings of financing receivables:

			Three Months Ended						Nine Months Ended
			September 30, 2012						September 30, 2012
					Pre-		Post-				Pre-		Post-
					Restructuring		Restructuring				Restructuring		Restructuring
			Number		Recorded		Recorded		Number		Recorded		Recorded
			of Loans		Investment		Investment		of Loans		Investment		Investment

			(Dollars in millions)
Troubled debt restructurings:
	Retail			3	$	2.6	$	3.9		7	$	6.0	$	7.2
	Industrial			0		0.0		0.0		3		2.4		2.4
	Apartment and other			0		0.0		0.0		1		1.8		1.8

		Total troubled debt restructurings		3	$	2.6	$	3.9		11	$	10.2	$	11.4

The following table sets forth information related to the troubled debt restructurings identified in the previous 12 months that subsequently defaulted during the periods presented:

			Three Months Ended						Nine Months Ended
			September 30, 2012						September 30, 2012
			Number		Recorded		Number		Recorded
			of Loans		Investment		of Loans		Investment

			(Dollars in millions)
Troubled debt restructurings that subsequently defaulted:
	Retail			0	$	0.0		1	$	0.8

		Total troubled debt restructurings		0	$	0.0		1	$	0.8

At September 30, 2012, subsequently defaulted troubled debt restructurings identified during the previous twelve months were reinstated and current.

The following table sets forth the average recorded investment in impaired commercial mortgage loans before specific allowances for losses:

The Company records interest income in net investment income and continues to recognize interest income on delinquent commercial mortgage loans until the loans are more than 90 days delinquent. Interest income and accrued interest receivable are reversed when a loan is put on non-accrual status. For loans that are less than 90 days delinquent, management may reverse interest income and the accrued interest receivable if there is a question on the collectability of the interest. Interest income on loans in the 90-day delinquent category is recognized in the period the cash is collected. The Company resumes the recognition of interest income when the loan becomes less than 90 days delinquent and management determines it is probable that the loan will remain performing.

The amount of interest income recognized on impaired commercial mortgage loans was $1.0 million and $0.7 million for the third quarters of 2012 and 2011, respectively, and was $3.1 million and $2.8 million for the first nine months of 2012 and 2011, respectively. The cash received by the Company in payment of interest on impaired commercial mortgage loans was $1.0 million and $0.7 million for the third quarters of 2012 and 2011, respectively, and was $3.0 million and $2.1 million for the first nine months of 2012 and 2011, respectively.

The following tables set forth the aging of commercial mortgage loans by property type:

			September 30, 2012
															Total
							Greater Than				Allowance				Commercial
			30 Days		60 Days		90 Days		Total		Related		Current,		Mortgage
			Past Due		Past Due		Past Due		Past Due		to Past Due		net		Loans

			(In millions)
Commercial mortgage loans:
	Retail		$	11.1	$	0.3	$	7.6	$	19.0	$	(3.2)	$	2,476.4	$	2,492.2
	Office			1.8		0.0		3.7		5.5		(0.5)		939.7		944.7
	Industrial			0.8		1.3		1.3		3.4		(0.8)		964.8		967.4
	Hotel/motel			0.0		0.0		0.0		0.0		0.0		297.5		297.5
	Commercial			0.0		0.0		1.4		1.4		(0.8)		198.8		199.4
	Apartment and other			0.0		0.0		0.0		0.0		0.0		247.8		247.8

		Total commercial mortgage loans	$	13.7	$	1.6	$	14.0	$	29.3	$	(5.3)	$	5,125.0	$	5,149.0

			December 31, 2011
															Total
							Greater Than				Allowance				Commercial
			30 Days		60 Days		90 Days		Total		Related		Current,		Mortgage
			Past Due		Past Due		Past Due		Past Due		to Past Due		net		Loans

			(In millions)
Commercial mortgage loans:
	Retail		$	3.1	$	7.1	$	3.0	$	13.2	$	(1.3)	$	2,445.9	$	2,457.8
	Office			0.8		1.5		1.6		3.9		(0.4)		907.6		911.1
	Industrial			1.4		0.4		2.3		4.1		(0.7)		897.0		900.4
	Hotel/motel			0.0		0.0		0.0		0.0		0.0		241.9		241.9
	Commercial			0.0		0.0		1.2		1.2		(0.8)		186.7		187.1
	Apartment and other			0.2		0.0		0.0		0.2		0.0		203.8		204.0

		Total commercial mortgage loans	$	5.5	$	9.0	$	8.1	$	22.6	$	(3.2)	$	4,882.9	$	4,902.3

The Company closely monitors all past due commercial mortgage loans. Additional attention is given to those loans at least 60 days past due. Commercial mortgage loans that were at least 60 days past due totaled $15.6 million and $17.1 million at September 30, 2012 and December 31, 2011, respectively. Overall, commercial mortgage loans at least 60 days past due were 0.30% and 0.34% of the commercial mortgage loan portfolio at September 30, 2012 and December 31, 2011.

The following table sets forth net investment income summarized by investment type:

					Three Months Ended				Nine Months Ended
					September 30,				September 30,
					2012		2011		2012		2011

Fixed maturity securities:					(In millions)
	Bonds				$	77.8	$	79.2	$	235.2	$	243.1
	S&P 500 Index options					2.9		(6.8)		7.3		(3.0)

		Total fixed maturity securities				80.7		72.4		242.5		240.1
Commercial mortgage loans						87.2		79.6		248.3		229.9
Real estate						0.0		0.1		0.1		0.8
Other						(2.5)		0.7		(3.2)		2.7

			Gross investment income			165.4		152.8		487.7		473.5
Investment expenses						(5.6)		(5.5)		(16.8)		(16.6)

				Net investment income	$	159.8	$	147.3	$	470.9	$	456.9

The following table sets forth gross capital gains and losses by investment type:

				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2012		2011		2012		2011

				(In millions)
Gains:
	Fixed maturity securities			$	3.5	$	1.3	$	9.3	$	9.4
	Commercial mortgage loans				0.6		0.3		1.2		0.7
	Real estate investments				0.0		19.4		0.0		28.1
	Real estate owned				0.7		0.2		1.0		0.6
	Other				0.0		0.0		0.1		0.0

		Gross capital gains			4.8		21.2		11.6		38.8

Losses:
	Fixed maturity securities				(1.0)		(0.6)		(4.6)		(2.2)
	Provision for commercial mortgage loan losses				(5.0)		(7.5)		(11.4)		(25.5)
	Real estate investments				0.0		0.0		0.0		(0.2)
	Real estate owned				(0.9)		(3.8)		(1.9)		(17.0)
	Other				(0.5)		(1.6)		(0.5)		(1.8)

		Gross capital losses			(7.4)		(13.5)		(18.4)		(46.7)

			Net capital (losses) gains	$	(2.6)	$	7.7	$	(6.8)	$	(7.9)

Securities deposited for the benefit of policyholders in various states, in accordance with state regulations, amounted to $8.0 million and $6.7 million at September 30, 2012 and December 31, 2011, respectively.