Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2012

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In October 2010, the Financial Accounting Standards Board ("FASB") issued guidance regarding the treatment of costs associated with acquiring or renewing insurance contracts. This guidance modified the definition of the types of costs that can be capitalized and specifies that the costs must be directly related to the successful acquisition of a new or renewed insurance contract. The Company adopted this guidance effective January 1, 2012 and retrospectively adjusted its previously issued financial statements. The impact of applying this guidance retrospectively was a reduction in stockholders' equity of $51 million as of December 31, 2010.

A summary of the impact of the adoption of this new guidance is shown below (dollars in thousands except per share amounts):

	Previously Reported			As Adjusted
At December 31, 2011:
Deferred policy acquisition costs	$	448,795		$	364,937
Deferred tax liability	31,623			2,835
Stockholders' equity	4,008,426			3,953,356
For the Nine Months Ended September 30, 2011:
Other operating costs and expenses	$	1,193,040		$	1,196,936
Income before income taxes	368,264			364,368
Federal and foreign income taxes	(91,485		)	(90,282		)
Net income	276,877			274,184
Basic net income per share	$	1.97		$	1.95
Diluted net income per share	1.89			1.87
For the Three Months Ended September 30, 2011:
Other operating costs and expenses	$	405,850		$	407,149
Income before income taxes	97,445			96,146
Federal and foreign income taxes	(20,176		)	(19,775		)
Net income	77,308			76,410
Basic net income per share	$	0.56		$	0.55
Diluted net income per share	0.53			0.53

In May 2011, the FASB issued guidance related to measuring and disclosing fair values. The Company's adoption of the updated guidance effective January 1, 2012 resulted in a change in the presentation of the Company's consolidated financial statements but did not have any impact on the Company's results of operations, financial position or liquidity.

In June 2011, the FASB issued guidance relating to the presentation of the components of net income and other comprehensive income. The Company's adoption of the updated guidance effective January 1, 2012 resulted in a change in the presentation of the Company's consolidated financial statements but did not have any impact on the Company's results of operations, financial position or liquidity.

All recently issued but not yet effective accounting and reporting guidance is either not applicable to the Company or is not expected to have a material impact on the Company.