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Investments (Tables)
 12 Months Ended
Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]  
Available-for-Sale Securities
The Company’s consolidated investments are summarized as follows:
 
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

Agency residential mortgage-backed securities
104.3

 
3.1

 
(0.1
)
 
107.3

 
107.3

Non-agency residential mortgage-backed securities
1,880.5

 
137.2

 
(11.0
)
 
2,006.7

 
2,006.7

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


 
September 30, 2013
 
Cost or Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
Carrying Value
Fixed-maturity securities, available-for-sale
 
 
 
 
 
 
 
 
 
Asset-backed securities
$
1,505.7

 
$
22.6

 
$
(5.2
)
 
$
1,523.1

 
$
1,523.1

Commercial mortgage-backed securities
431.3

 
24.7

 
(1.6
)
 
454.4

 
454.4

Corporates
9,314.7

 
288.7

 
(185.1
)
 
9,418.3

 
9,418.3

Hybrids
412.6

 
19.5

 
(3.3
)
 
428.8

 
428.8

Municipals
998.8

 
49.0

 
(40.8
)
 
1,007.0

 
1,007.0

Agency residential mortgage-backed securities
96.5

 
2.4

 
(0.3
)
 
98.6

 
98.6

Non-agency residential mortgage-backed securities
1,304.0

 
77.4

 
(13.4
)
 
1,368.0

 
1,368.0

U.S. Government
998.5

 
7.2

 
(3.9
)
 
1,001.8

 
1,001.8

Total fixed-maturity securities
15,062.1

 
491.5

 
(253.6
)
 
15,300.0

 
15,300.0

Equity securities
 
 
 
 
 
 
 
 
 
Available-for-sale
274.6

 
6.7

 
(10.3
)
 
271.0

 
271.0

Held for trading
120.1

 
0.6

 
(39.2
)
 
81.5

 
81.5

Total equity securities
394.7

 
7.3

 
(49.5
)
 
352.5

 
352.5

Derivatives
141.7

 
88.5

 
(8.4
)
 
221.8

 
221.8

Asset-based loans
560.4

 
—

 
—

 
560.4

 
560.4

Other invested assets
31.2

 
—

 
—

 
31.2

 
31.2

Total investments
$
16,190.1

 
$
587.3

 
$
(311.5
)
 
$
16,465.9

 
$
16,465.9
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.
 
September 30, 2014
 
Amortized Cost
 
 Fair Value
Corporate, Non-structured Hybrids, Municipal and U.S. Government securities:
 
 
 
Due in one year or less
$
370.0

 
$
372.8

Due after one year through five years
2,297.6

 
2,360.2

Due after five years through ten years
3,128.9

 
3,232.7

Due after ten years
5,794.5

 
6,230.0

Subtotal
11,591.0

 
12,195.7

Other securities which provide for periodic payments:
 
 
 
Asset-backed securities
1,800.8

 
1,792.9

Commercial mortgage-backed securities
617.6

 
636.9

Structured hybrids
474.5

 
472.0

Agency residential mortgage-backed securities
104.3

 
107.3

Non-agency residential mortgage-backed securities
1,880.5

 
2,006.7

Total fixed maturity available-for-sale securities
$
16,468.7

 
$
17,211.5
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:
 
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
)
Agency residential mortgage-backed securities
24.1

 
(0.1
)
 
0.6

 
—

 
24.7

 
(0.1
)
Non-agency residential mortgage-backed securities
274.4

 
(5.7
)
 
177.0

 
(5.3
)
 
451.4

 
(11.0
)
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


 
September 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
$
329.3

 
$
(4.5
)
 
$
81.5

 
$
(0.7
)
 
$
410.8

 
$
(5.2
)
Commercial mortgage-backed securities
26.6

 
(0.5
)
 
4.9

 
(1.1
)
 
31.5

 
(1.6
)
Corporates
3,457.2

 
(175.0
)
 
186.0

 
(10.1
)
 
3,643.2

 
(185.1
)
Equities
118.6

 
(9.1
)
 
32.2

 
(1.2
)
 
150.8

 
(10.3
)
Hybrids
52.0

 
(3.3
)
 
—

 
—

 
52.0

 
(3.3
)
Municipals
333.3

 
(27.3
)
 
144.4

 
(13.5
)
 
477.7

 
(40.8
)
Agency residential mortgage-backed securities
9.8

 
(0.1
)
 
1.1

 
(0.2
)
 
10.9

 
(0.3
)
Non-agency residential mortgage-backed securities
325.2

 
(12.2
)
 
69.9

 
(1.2
)
 
395.1

 
(13.4
)
U.S Government
753.9

 
(3.9
)
 
—

 
—

 
753.9

 
(3.9
)
Total available-for-sale securities
$
5,405.9

 
$
(235.9
)
 
$
520.0

 
$
(28.0
)
 
$
5,925.9

 
$
(263.9
)
Total number of available-for-sale securities in an unrealized loss position
 
 
588

 
 
 
78

 
 
 
666
Reconciliation of Other-than-Temporary Impairment on Fixed Maturity
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 Fiscal 2014, 2013 and 2012, for which a portion of the other-than-temporary impairment was recognized in AOCI:
 
Fiscal
 
2014
 
2013
 
2012
Beginning balance
$
2.7

 
$
2.7

 
$
0.7

Increases attributable to credit losses on securities:
 
 
 
 
 
Other-than-temporary impairment was previously recognized
—

 
—

 
0.1

Other-than-temporary impairment was not previously recognized
—

 
—

 
1.9

Ending balance
$
2.7

 
$
2.7

 
$
2.7
Other-than-Temporary Impairments
Details underlying write-downs taken as a result of other-than-temporary impairments that were recognized in net income and included in net realized gains on securities were as follows:
 
Fiscal
 
2014
 
2013
 
2012
Other-than-temporary impairments recognized in net income:
 
 
 
 
 
Corporates
$
—

 
$
1.2

 
$
4.1

Municipals
0.3

 
—

 
—

Non-agency residential mortgage-backed securities
0.1

 
1.2

 
7.5

Hybrids
—

 
—

 
9.7

Other invested assets
0.3

 
0.5

 
1.5

Total other-than-temporary impairments
$
0.7

 
$
2.9

 
$
22.8
Portfolio of Asset-Backed Loans and Other Invested Assets
portfolio of asset-based loans receivable, originated by Salus and their co-lenders FGL and FSR, included in “Asset-based loans” in the Consolidated Balance Sheets as of September 30, 2014 and 2013, consisted of the following:
 
September 30,
 
2014
 
2013
Asset-based loans, net of deferred fees, by major industry:
 
 
 
Electronics
$
245.4

 
$
—

Apparel
191.6

 
252.9

Jewelry
100.1

 
125.8

Home Furnishings
71.7

 
—

Manufacturing
56.9

 
34.3

Transportation
44.3

 
85.7

Sporting Goods
13.9

 
25.1

Other
94.9

 
41.8

Total asset-based loans
818.8

 
565.6

Less: Allowance for loan losses
7.2

 
5.2

Total asset-based loans, net
$
811.6

 
$
560.4
Schedule of Allowance for Credit Losses
The following table presents the activity in its allowance for credit losses for Fiscal 2014, 2013 and 2012:
 
Fiscal
 
2014
 
2013
 
2012
Allowance for credit losses:
 
 
 
 
 
Balance at beginning of year
$
5.2

 
$
1.4

 
$
—

Provision for credit losses
2.0

 
3.8

 
1.4

Balance at end of year
$
7.2

 
$
5.2

 
$
1.4
Schedule of Credit Quality of Asset-Based Loan Portfolio
As of September 30, 2014 and 2013, there were no impaired loans.
 
Internal Risk Rating
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
September 30, 2014
$
195.3

 
$
372.7

 
$
250.8

 
$
—

 
$
818.8

September 30, 2013
$
306.9

 
$
36.7

 
$
222.0

 
$
—

 
$
565.6
Net Investment Income
The major sources of “Net investment income” in the accompanying Consolidated Statements of Operations were as follows:
 
Fiscal
 
2014
 
2013
 
2012
Fixed maturity available-for-sale securities
$
787.4

 
$
686.2

 
$
707.1

Equity available-for-sale securities
22.8

 
14.8

 
14.0

Policy loans
0.7

 
0.8

 
0.7

Invested cash and short-term investments
0.3

 
1.4

 
4.9

Asset-based loans
41.5

 
35.4

 
8.6

Other investments
7.1

 
12.9

 
(0.9
)
Gross investment income
859.8

 
751.5

 
734.4

External investment expense
(17.6
)
 
(16.8
)
 
(11.7
)
Net investment income
$
842.2

 
$
734.7

 
$
722.7
Net Investment Gains

“Net investment gains” reported in the accompanying Consolidated Statements of Operations were as follows:
 
Fiscal
 
2014
 
2013
 
2012
Net realized gains before other-than-temporary impairments
$
101.9

 
$
332.9

 
$
287.2

Gross other-than-temporary impairments
(0.6
)
 
(2.9
)
 
(24.3
)
Non-credit portion of other-than-temporary impairments included in other comprehensive income
—

 
—

 
1.5

Net realized gains on fixed maturity available-for-sale securities
101.3

 
330.0

 
264.4

Realized gains on equity securities
13.5

 
12.6

 
0.9

Net realized gains on securities
114.8

 
342.6

 
265.3

Realized gains (losses) on certain derivative instruments
233.8

 
148.6

 
(10.3
)
Unrealized gains on certain derivative instruments
37.7

 
20.5

 
156.3

Change in fair value of other embedded derivatives
(0.1
)
 
—

 
—

Change in fair value of derivatives
271.4

 
169.1

 
146.0

Realized gains (losses) on other invested assets
9.1

 
(0.1
)
 
(1.3
)
Net investment gains
$
395.3

 
$
511.6

 
$
410.0
Cash Flows from Consolidated Investing Activities by Security
Cash flows from consolidated investing activities by security classification were as follows:
 
Fiscal
 
2014
 
2013
 
2012
Proceeds from investments sold, matured or repaid:
 
 
 
 
 
Available-for-sale
$
5,084.1

 
$
8,986.9

 
$
5,833.4

Held-to-maturity
—

 
—

 
109.6

Trading (acquired for holding)
54.9

 
92.9

 
106.1

Derivatives and other
470.2

 
352.4

 
157.6

 
$
5,609.2

 
$
9,432.2

 
$
6,206.7

Cost of investments acquired:
 
 
 
 
 
Available-for-sale
$
(6,741.2
)
 
$
(8,757.5
)
 
$
(5,640.1
)
Held-to-maturity
—

 
—

 
(68.7
)
Trading (acquired for holding)
(99.7
)
 
(20.8
)
 
(122.3
)
Derivatives and other
(380.5
)
 
(162.5
)
 
(141.6
)
 
$
(7,221.4
)
 
$
(8,940.8
)
 
$
(5,972.7
)