Fair Value of Financial Instruments (Tables)

9 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities not Measured at Fair Value [Table Text Block]

The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial instrument assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are summarized as follows:

	June 30, 2014
	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets (a)
Other invested assets	$	—	$	—	$	160.6	$	160.6	$	160.6
Asset-based loans	—		—		724.3		724.3		724.3
Total financial assets	$	—	$	—	$	884.9	$	884.9	$	884.9
Liabilities (a)
Total debt (b)	$	—	$	5,526.1	$	—	$	5,526.1	$	5,303.4
Investment contracts, included in contractholder funds	—		—		12,891.5		12,891.5		14,353.4
Total financial liabilities	$	—	$	5,526.1	$	12,891.5	$	18,417.6	$	19,656.8

	September 30, 2013
	Level 1		Level 2		Level 3		Estimated Fair Value		Carrying Amount
Assets (a)
Other invested assets	$	—	$	—	$	31.2	$	31.2	$	31.2
Asset-based loans	—		—		560.4		560.4		560.4
Total financial assets	$	—	$	—	$	591.6	$	591.6	$	591.6
Liabilities (a)
Total debt (b)	$	—	$	4,773.2	$	—	$	4,773.2	$	4,896.1
Redeemable preferred stock, excluding equity conversion feature	—		—		377.1		377.1		329.4
Investment contracts, included in contractholder funds	—		—		12,378.6		12,378.6		13,703.8
Total financial liabilities	$	—	$	4,773.2	$	12,755.7	$	17,528.9	$	18,929.3

(a) The carrying amounts of trade receivables, accounts payable, accrued investment income and portions of other insurance liabilities approximate fair value due to their short duration and, accordingly, they are not presented in the tables above.

(b) The fair values of debt set forth above are generally based on quoted or observed market prices.

Assets and Liabilities Carrying at Fair Value on Recurring Basis

The Company’s consolidated assets and liabilities measured at fair value are summarized according to the hierarchy previously described as follows:

	June 30, 2014
	Level 1		Level 2		Level 3		Fair Value
Assets (a)
Cash and cash equivalents (b)	$	1,455.9	$	—	$	—	$	1,455.9
Contingent purchase price reduction receivable	—		—		41.5		41.5
Derivatives:
Foreign exchange forward agreements	—		0.9		—		0.9
Commodity swap and option agreements	—		1.4		—		1.4
Call options and futures contracts	—		324.7		—		324.7
Fixed maturity securities, available-for-sale:
Asset-backed securities	—		1,731.8		5.9		1,737.7
Commercial mortgage-backed securities	—		526.3		83.9		610.2
Corporates	—		9,552.6		745.2		10,297.8
Hybrids	—		481.6		—		481.6
Municipals	—		1,219.2		36.5		1,255.7
Agency residential mortgage-backed securities	—		99.5		—		99.5
Non-agency residential mortgage-backed securities	—		1,874.1		—		1,874.1
U.S. Government	209.4		201.1		—		410.5
Equity securities:
Available-for-sale	50.0		607.4		6.0		663.4
Trading	97.3		—		—		97.3
Other invested assets	—		2.1		11.6		13.7
Funds withheld receivable	—		158.5		—		158.5
Total financial assets	$	1,812.6	$	16,781.2	$	930.6	$	19,524.4
Liabilities (a)
Derivatives:
FIA embedded derivatives, included in contractholder funds	$	—	$	—	$	1,864.5	$	1,864.5
Front Street future policyholder benefit liability	—		—		154.9		154.9
Foreign exchange forward agreements	—		5.6		—		5.6
Commodity swap and option agreements	—		4.3		—		4.3
Interest rate contracts	—		1.9		—		1.9
Total financial liabilities	$	—	$	11.8	$	2,019.4	$	2,031.2

	September 30, 2013
	Level 1		Level 2		Level 3		Fair Value
Assets (a)
Cash and cash equivalents (b)	$	1,899.7	$	—	$	—	$	1,899.7
Contingent purchase price reduction receivable	—		—		41.0		41.0
Derivatives:
Foreign exchange forward agreements	—		1.8		—		1.8
Commodity swap and option agreements	—		4.1		—		4.1
Call options and futures contracts	—		221.8		—		221.8
Fixed maturity securities, available-for-sale:
Asset-backed securities	—		1,518.1		5.0		1,523.1
Commercial mortgage-backed securities	—		448.7		5.7		454.4
Corporates	—		8,957.2		461.1		9,418.3
Hybrids	—		428.8				428.8
Municipals	—		1,007.0		—		1,007.0
Agency residential mortgage-backed securities	—		98.6		—		98.6
Non-agency residential mortgage-backed securities	—		1,368.0		—		1,368.0
U.S. Government	790.9		210.9		—		1,001.8
Equity securities:
Available-for-sale	—		271.0		—		271.0
Trading	70.8		—		10.7		81.5
Total financial assets	$	2,761.4	$	14,536.0	$	523.5	$	17,820.9
Liabilities (a)
Derivatives:
FIA embedded derivatives, included in contractholder funds	$	—	$	—	$	1,544.4	$	1,544.4
Futures contracts	—		1.0		—		1.0
Foreign exchange forward agreements	—		10.0		—		10.0
Commodity swap and option agreements	—		2.4		—		2.4
Equity conversion feature of preferred stock	—		—		330.8		330.8
Total financial liabilities	$	—	$	13.4	$	1,875.2	$	1,888.6

Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis

Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2014 and September 30, 2013 are as follows:

			Fair Value at				Range (Weighted average)
Assets	Valuation Technique	Unobservable Input(s)	June 30, 2014		September 30, 2013		June 30, 2014	September 30, 2013
Contingent purchase price reduction receivable	Discounted cash flow	Probability of collection	$	41.5	$	41.0	88% - 96% (92%)	88% - 96% (92%)
		Expected term					7.5 months	9 months
		Discount rate					1%	1%
		Credit insurance risk premium					12%	11%
Asset-backed securities	Broker-quoted	Offered quotes	5.9		5.0		102%	103%
Commercial mortgage-backed securities	Broker-quoted	Offered quotes	83.9		5.7		104% - 121% (119%)	96%
Corporates	Broker-quoted	Offered quotes	653.5		404.5		62% - 121% (100%)	0% - 113% (90%)
Corporates	Matrix Pricing	Quoted prices	91.7		56.6		96% - 142% (102%)	90% - 131% (97%)
Municipal	Broker-quoted	Offered quotes	36.5		—		117%	—
Equity	Broker-quoted	Offered quotes	6.0		—		100%	—
	Option Pricing	Risk-adjusted rate	—		10.7			25.0%
		Risk-free discount factor						0.999
		Risk-adjusted discount factor						0.995
		Upward movement factor (Mu)						1.1
		Downward movement factor (Md)						0.9
		Probability of upward movement (Pu)						48.6%
		Probability of downward movement (Pd)						51.4%
Other invested assets	Black Scholes model	Net asset value of AnchorPath fund	11.6		—		100%	—
Total			$	930.6	$	523.5
Liabilities
FIA embedded derivatives, included in contractholder funds	Discounted cash flow	Market value of option	$	1,864.5	$	1,544.4	0% - 48% (4%)	0% - 38% (4%)
		SWAP rates					2% - 3% (2%)	2% - 3% (2%)
		Mortality multiplier					80%	80%
		Surrender rates					0.50% - 75% (7%)	0.50% - 75% (7%)
		Non-performance spread					0.25%	0.25%

			Fair Value at				Range (Weighted average)
Liabilities	Valuation Technique	Unobservable Input(s)	June 30, 2014		September 30, 2013		June 30, 2014	September 30, 2013
Front Street future policyholder benefit liability	Discounted cash flow	Non-performance risk spread	154.9		—		0.50% - 1.50%	—
		Risk margin to reflect uncertainty					0.5%	—
Equity conversion feature of preferred stock	Monte Carlo simulation / Option model	Annualized volatility of equity	—		330.8		—	42%
		Discount yield					—	11.0%
		Non-cash accretion rate					—	0%
		Calibration adjustment					—	0% - 1.0% (0.3%)
Total			$	2,019.4	$	1,875.2

Changes in Fair Value of Financial Instruments

The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended June 30, 2014 and June 30, 2013. This summary excludes any impact of amortization of VOBA and DAC. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.

	Three months ended June 30, 2014
	Balance at Beginning of Period		Total Gains (Losses)													Net transfer In (Out) of Level 3 (a)			Balance at End of Period
			Included in Earnings			Included in AOCI		Purchases		Sales			Settlements
Assets
Contingent purchase price reduction receivable	$	41.5	$	—		$	—	$	—	$	—		$	—		$	—		$	41.5
Fixed maturity securities available-for-sale:
Asset-backed securities	10.7		—			—		—		—			—			(4.8		)	5.9
Commercial mortgage-backed securities	—		—			0.1		83.8		—			—			—			83.9
Corporates	657.0		—			14.4		88.9		(1.0		)	—			(14.1		)	745.2
Municipals	35.6		—			0.9		—		—			—			—			36.5
Equity securities - trading	10.8		1.2			—		1.5		—			(13.5		)	—			—
Equity securities - available-for-sale	—		—			0.5		5.5		—			—			—			6.0
Other invested assets	—		0.3			—		11.3		—			—			—			11.6
Total assets at fair value	$	755.6	$	1.5		$	15.9	$	191.0	$	(1.0	)	$	(13.5	)	$	(18.9	)	$	930.6
	Balance at Beginning of Period		Total (Gains) Losses													Net transfer In (Out) of Level 3			Balance at End of Period
			Included in Earnings			Included in AOCI		Purchases		Sales			Settlements
Liabilities
FIA embedded derivatives, included in contractholder funds	$	1,718.7	$	145.8		$	—	$	—	$	—		$	—		$	—		$	1,864.5
Front Street future policyholder benefit liability	151.0		5.1			—		—		—			(1.2		)	—			154.9
Equity conversion feature of preferred stock	364.8		(38.0		)	—		—		—			(326.8		)	—			—
Total liabilities at fair value	$	2,234.5	$	112.9		$	—	$	—	$	—		$	(328.0	)	$	—		$	2,019.4

(a) This includes a $6.0 transfer to asset-backed securities from commercial mortgage-backed securities, the remaining transfers were from level 3 to level 2.

	Nine months ended June 30, 2014
	Balance at Beginning of Period		Total Gains (Losses)													Net transfer In (Out) of Level 3 (a)			Balance at End of Period
			Included in Earnings		Included in AOCI			Purchases		Sales			Settlements
Assets
Contingent purchase price reduction receivable	$	41.0	$	0.5	$	—		$	—	$	—		$	—		$	—		$	41.5
Fixed maturity securities available-for-sale:
Asset-backed securities	5.0		—		(0.3		)	5.0		—			—			(3.8		)	5.9
Commercial mortgage-backed securities	5.7		—		0.4			83.8		—			—			(6.0		)	83.9
Corporates	461.1		—		18.4			283.2		(1.0		)	(2.4		)	(14.1		)	745.2
Municipals	—		—		1.5			35.0		—			—			—			36.5
Equity securities - trading	10.7		1.3		—			1.5		—			(13.5		)	—			—
Equity securities - available-for-sale	—		—		0.5			5.5		—			—			—			6.0
Other invested assets	—		0.3		—			11.3		—			—			—			11.6
Total assets at fair value	$	523.5	$	2.1	$	20.5		$	425.3	$	(1.0	)	$	(15.9	)	$	(23.9	)	$	930.6
	Balance at Beginning of Period		Total (Gains) Losses													Net transfer In (Out) of Level 3			Balance at End of Period
			Included in Earnings		Included in AOCI			Purchases		Sales			Settlements
Liabilities
FIA embedded derivatives, included in contractholder funds	$	1,544.4	$	320.1	$	—		$	—	$	—		$	—		$	—		$	1,864.5
Front Street future policyholder benefit liability	—		8.1		—			150.6		—			(3.8		)	—			154.9
Equity conversion feature of preferred stock	330.8		12.7		—			—		—			(343.5		)	—			—
Total liabilities at fair value	$	1,875.2	$	340.9	$	—		$	150.6	$	—		$	(347.3	)	$	—		$	2,019.4

(a) This includes a $6.0 transfer to asset-backed securities from commercial mortgage-backed securities, the remaining transfers were from level 3 to level 2.

	Three months ended June 30, 2013
	Balance at Beginning of Period		Total Gains (Losses)													Net transfer In (Out) of Level 3 (a)		Balance at End of Period
			Included in Earnings			Included in AOCI			Purchases		Sales		Settlements
Assets
Contingent purchase price reduction receivable	$	41.0	$	—		$	—		$	—	$	—	$	—		$	—	$	41.0
Fixed maturity securities available-for-sale:
Asset-backed securities	5.3		—			(0.1		)	—		—		(0.1		)	—		5.1
Commercial mortgage-backed securities	6.2		—			(0.3		)	—		—		—			—		5.9
Corporates	356.5		—			(12.0		)	106.2		—		(11.7		)	—		439.0
Equity securities available-for-sale	10.0		—			1.6			0.1		—		—			—		11.7
Total assets at fair value	$	419.0	$	—		$	(10.8	)	$	106.3	$	—	$	(11.8	)	$	—	$	502.7
	Balance at Beginning of Period		Total (Gains) Losses													Net transfer In (Out) of Level 3 (a)		Balance at End of Period
			Included in Earnings			Included in AOCI			Purchases		Sales		Settlements
Liabilities
FIA embedded derivatives, included in contractholder funds	$	1,639.6	$	(53.7	)	$	—		$	—	$	—	$	—		$	—	$	1,585.9
Equity conversion feature of preferred stock	202.7		(52.6		)	—			—		—		(2.8		)	—		147.3
Total liabilities at fair value	$	1,842.3	$	(106.3	)	$	—		$	—	$	—	$	(2.8	)	$	—	$	1,733.2

(a) The net transfers in and out of Level 3 during the three months ended June 30, 2013 were exclusively to or from Level 2.

	Nine months ended June 30, 2013
	Balance at Beginning of Period		Total Gains (Losses)														Net transfer In (Out) of Level 3 (a)			Balance at End of Period
			Included in Earnings			Included in AOCI			Purchases		Sales			Settlements
Assets
Contingent purchase price reduction receivable	$	41.0	$	—		$	—		$	—	$	—		$	—		$	—		$	41.0
Fixed maturity securities available-for-sale:
Asset-backed securities	15.9		—			(0.2		)	—		—			(0.1		)	(10.5		)	5.1
Commercial mortgage-backed securities	5.0		—			(0.1		)	1.0		—			—			—			5.9
Corporates	135.3		(0.3		)	(10.8		)	383.6		(9.6		)	(25.4		)	(33.8		)	439.0
Hybrids	8.8		—			(0.1		)	—		—			—			(8.7		)	—
Equity securities available-for-sale	—		—			1.6			10.1		—			—			—			11.7
Total assets at fair value	$	206.0	$	(0.3	)	$	(9.6	)	$	394.7	$	(9.6	)	$	(25.5	)	$	(53.0	)	$	502.7
	Balance at Beginning of Period		Total (Gains) Losses														Net transfer In (Out) of Level 3 (a)			Balance at End of Period
			Included in Earnings			Included in AOCI			Purchases		Sales			Settlements
Liabilities
FIA embedded derivatives, included in contractholder funds	$	1,550.8	$	35.1		$	—		$	—	$	—		$	—		$	—		$	1,585.9
Equity conversion feature of preferred stock	232.0		(81.9		)	—			—		—			(2.8		)	—			147.3
Total liabilities at fair value	$	1,782.8	$	(46.8	)	$	—		$	—	$	—		$	(2.8	)	$	—		$	1,733.2

(a) The net transfers in and out of Level 3 during the nine months ended June 30, 2013 were exclusively to or from Level 2.