Fair Value of Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2016

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 in the accompanying Condensed Consolidated Balance Sheets are summarized as follows:



	March 31, 2016
	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets (a)
Other invested assets	$	—	$	—	$	2.5	$	2.5	$	2.5
Asset-based loans	—		—		136.8		136.8		136.8
Total financial assets	$	—	$	—	$	139.3	$	139.3	$	139.3

Liabilities (a)
Investment contracts, included in contractholder funds and other insurance reserves	$	—	$	—	$	895.9	$	895.9	$	1,034.3
Total debt (b)	—		6,391.0		80.7		6,471.7		6,232.0
Total financial liabilities	$	—	$	6,391.0	$	976.6	$	7,367.6	$	7,266.3



	September 30, 2015
	(As Adjusted)
	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets (a)
Other invested assets	$	—	$	—	$	2.5	$	2.5	$	2.5
Asset-based loans	—		—		226.7		226.7		226.7
Total financial assets	$	—	$	—	$	229.2	$	229.2	$	229.2

Liabilities (a)
Investment contracts, included in contractholder funds and other insurance reserves	$	—	$	—	$	960.3	$	960.3	$	1,084.5
Total debt (b)	—		6,398.0		99.1		6,497.1		6,310.5
Total financial liabilities	$	—	$	6,398.0	$	1,059.4	$	7,457.4	$	7,395.0

(a) The carrying amounts of cash and cash equivalents, trade receivables, accounts payable and accrued investment income 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:



	March 31, 2016								September 30, 2015
									(As Adjusted)
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives:
Call options	$	—	$	10.1	$	—	$	10.1	$	—	$	6.4	$	—	$	6.4
Foreign exchange contracts	—		3.4		—		3.4		—		6.0		—		6.0
Commodity contracts	—		1.7		—		1.7		—		7.9		—		7.9
Corporate fixed maturity securities AFS	—		—		—		—		—		—		14.1		14.1
Equity securities - trading	—		—		—		—		32.8		—		—		32.8
Other invested assets	—		—		—		—		—		—		2.8		2.8
Funds withheld receivables	73.9		1,531.6		73.9		1,679.4		45.8		1,579.9		84.4		1,710.1
Total financial assets	$	73.9	$	1,546.8	$	73.9	$	1,694.6	$	78.6	$	1,600.2	$	101.3	$	1,780.1
Liabilities
Front Street future policyholder benefit liability	$	—	$	—	$	654.0	$	654.0	$	—	$	—	$	629.2	$	629.2
Derivatives:
Embedded derivatives in Front Street's assumed FIA business	—		—		136.5		136.5		—		—		142.3		142.3
Commodity contracts	—		2.0		—		2.0		—		5.6		—		5.6
Interest rate contracts	—		2.1		—		2.1		—		2.6		—		2.6
Foreign exchange contracts	—		5.3		—		5.3		—		1.6		—		1.6
Total financial liabilities	$	—	$	9.4	$	790.5	$	799.9	$	—	$	9.8	$	771.5	$	781.3

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 March 31, 2016 and September 30, 2015 (as adjusted) were as follows:



	Fair Value at						Range (Weighted average)
Assets	March 31, 2016		September 30, 2015		Valuation Technique	Unobservable Input(s)	March 31, 2016	September 30, 2015
Corporate fixed maturity securities AFS	$	—	$	14.1	Broker-quoted	Offered quotes	—%	83%
Other invested assets	—		2.8		Discounted Cash Flow	Probability of collection	—%	50%
						Discount rate	—%	10%
Funds withheld receivables:
Fixed maturity and equity securities AFS	34.0		39.5		Matrix pricing	Quoted prices	100% - 122% (111%)	100% - 122% (112%)
Fixed maturity securities AFS	15.1		19.5		Discounted Cash Flow	Discount rate	6% - 13% (7%)	6% - 12% (8%)
Fixed maturity securities AFS	11.4		6.7		Broker-quoted	Offered quotes	94% - 107% (99%)	99% - 103% (101%)
Loan participations	4.7		9.7		Market pricing	Offered quotes	100%	100%
Policy loans	8.7		9.0		Loan value	Not applicable	100%	100%
Total	$	73.9	$	101.3
Liabilities
Front Street future policyholder benefit liability	$	654.0	$	629.2	Discounted cash flow	Non-performance risk spread	0.29% - 0.43%	0.16% - 0.46%
						Risk margin to reflect uncertainty	0.50% - 1.00%	0.50% - 1.00%
Embedded derivatives in Front Street's assumed FIA business	136.5		142.3		Discounted cash flow	Market value of option	0% - 24% (1%)	0% - 32% (1%)
						SWAP rates	1% - 2% (1%)	2%
						Mortality multiplier	80%	80%
						Surrender rates	0.50% - 75% (13%)	0.50% - 75% (13%)
						Non-performance risk spread	0.25%	0.25%
Total	$	790.5	$	771.5

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 six months ended March 31, 2016 and 2015. 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 March 31, 2016
	Balance at Beginning of Period		Total Gains (Losses)													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings			Included in AOCI		Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Assets
Funds withheld receivables	$	74.8	$	(0.3	)	$	—	$	3.0	$	(3.1	)	$	(0.5	)	$	—	$	73.9
Total assets at fair value	$	74.8	$	(0.3	)	$	—	$	3.0	$	(3.1	)	$	(0.5	)	$	—	$	73.9

	Balance at Beginning of Period		Total (Gains) Losses													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings			Included in AOCI		Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Liabilities
Front Street future policyholder benefit liability	$	629.0	$	23.9		$	—	$	—	$	—		$	1.1		$	—	$	654.0
Embedded derivatives in Front Street's assumed FIA business	139.9		(3.4		)	—		—		—			—			—		136.5
Total liabilities at fair value	$	768.9	$	20.5		$	—	$	—	$	—		$	1.1		$	—	$	790.5



	Six months ended March 31, 2016
	Balance at Beginning of Period		Total Gains (Losses)													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings			Included in AOCI		Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Assets
Corporate fixed maturity securities AFS	$	14.1	$	(0.5	)	$	—	$	—	$	(13.6	)	$	—		$	—	$	—
Other invested assets	2.8		2.7			—		—		—			(5.5		)	—		—
Funds withheld receivables	84.4		(1.7		)	—		8.1		(16.4		)	(0.5		)	—		73.9
Total assets at fair value	$	101.3	$	0.5		$	—	$	8.1	$	(30.0	)	$	(6.0	)	$	—	$	73.9

	Balance at Beginning of Period		Total (Gains) Losses													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings			Included in AOCI		Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Liabilities
Front Street future policyholder benefit liability	$	629.2	$	20.2		$	—	$	—	$	—		$	4.6		$	—	$	654.0
Embedded derivatives in Front Street's assumed FIA business	142.3		(5.8		)	—		—		—			—			—		136.5
Total liabilities at fair value	$	771.5	$	14.4		$	—	$	—	$	—		$	4.6		$	—	$	790.5



	Three months ended March 31, 2015
	Balance at Beginning of Period		Total Gains (Losses)													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings			Included in AOCI		Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Assets
Contingent purchase price reduction receivable	$	41.5	$	5.5		$	—	$	—	$	—		$	—		$	—	$	47.0
Corporate fixed maturity securities AFS	15.8		—			—		—		—			—			—		15.8
Funds withheld receivables	65.2		0.2			—		12.0		(2.4		)	—			—		75.0
Total assets at fair value	$	122.5	$	5.7		$	—	$	12.0	$	(2.4	)	$	—		$	—	$	137.8

	Balance at Beginning of Period		Total (Gains) Losses													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings			Included in AOCI		Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Liabilities
Front Street future policyholder benefit liability	$	496.4	$	22.4		$	—	$	73.6	$	—		$	(7.9	)	$	—	$	584.5
Embedded derivatives in Front Street's assumed FIA business	157.0		(1.1		)	—		—		—			—			—		155.9
Total liabilities at fair value	$	653.4	$	21.3		$	—	$	73.6	$	—		$	(7.9	)	$	—	$	740.4



	Six months ended March 31, 2015
	Balance at Beginning of Period		Total Gains (Losses)													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings		Included in AOCI			Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Assets
Contingent purchase price reduction receivable	$	41.5	$	5.5	$	—		$	—	$	—		$	—		$	—	$	47.0
Corporate fixed maturity securities AFS	16.3		—		(0.5		)	—		—			—			—		15.8
Funds withheld receivables	59.4		0.1		—			22.0		(6.5		)	—			—		75.0
Total assets at fair value	$	117.2	$	5.6	$	(0.5	)	$	22.0	$	(6.5	)	$	—		$	—	$	137.8

	Balance at Beginning of Period		Total (Gains) Losses													Net transfer In (Out) of Level 3		Balance at End of Period
	Balance at Beginning of Period		Included in Earnings		Included in AOCI			Purchases		Sales			Settlements			Net transfer In (Out) of Level 3		Balance at End of Period
Liabilities
Front Street future policyholder benefit liability	$	151.3	$	22.6	$	—		$	420.5	$	—		$	(9.9	)	$	—	$	584.5
Embedded derivatives in Front Street's assumed FIA business	150.8		5.1		—			—		—			—			—		155.9
Total liabilities at fair value	$	302.1	$	27.7	$	—		$	420.5	$	—		$	(9.9	)	$	—	$	740.4