Derivative Financial Instruments (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts and fair values of derivatives were as follows as of the dates indicated:


	June 30, 2013						December 31, 2012
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting⁽¹⁾
Cash flow hedges:
Interest rate contracts	$	875.0	$	120.6	$	—	$	1,000.0	$	215.4	$	—
Fair value hedges:
Interest rate contracts		1,372.5		12.7		109.7		291.1		—		16.4
Derivatives: Non-qualifying for hedge accounting⁽¹⁾
Interest rate contracts⁽²⁾		59,840.5		780.2		1,101.6		69,719.2		1,981.1		1,545.0
Foreign exchange contracts		1,782.7		44.0		61.9		1,985.8		11.3		95.0
Equity contracts		12,923.8		171.9		17.0		14,890.4		103.4		235.1
Credit contracts		3,016.0		45.0		30.7		3,106.0		63.3		52.7
Managed custody guarantees		N/A		—		—		N/A		—		—
Embedded derivatives:
Within fixed maturity investments		N/A		153.8		—		N/A		227.4		—
Within annuity products		N/A		—		2,889.4		N/A		—		3,571.7
Within reinsurance agreements		N/A		—		96.3		N/A		—		169.5

Total			$	1,328.2	$	4,306.6			$	2,601.9	$	5,685.4

⁽¹⁾	Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value.

⁽²⁾

As of June 30, 2013, includes a notional amount, asset fair value and liability fair value for interest rate caps of $6.5 billion, $61.0 and $8.5, respectively. As of December 31, 2012, includes a notional amount, asset fair value and liability fair value for interest rate caps of $4.5 billion, $17.7 and $0.6, respectively.

N/A - Not Applicable

The notional amounts and fair values of derivatives were as follows as of December 31, 2012 and 2011:


	2012						2011
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting
Cash flow hedges:
Interest rate contracts	$	1,000.0	$	215.4	$	—	$	1,000.0	$	174.0	$	—
Fair value hedges:
Interest rate contracts		291.1		—		16.4		358.2		—		13.1
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts⁽¹⁾		69,719.2		1,981.1		1,545.0		63,993.8		2,227.6		1,548.7
Foreign exchange contracts		1,985.8		11.3		95.0		1,880.6		12.2		134.4
Equity contracts		14,890.4		103.4		235.1		15,797.4		69.1		28.3
Credit contracts		3,106.0		63.3		52.7		3,368.8		178.0		231.3
Managed custody guarantees		N/A		—		—		N/A		—		1.0
Embedded derivatives:
Within fixed maturity investments		N/A		227.4		—		N/A		243.1		—
Within annuity products		N/A		—		3,571.7		N/A		—		3,797.1
Within reinsurance agreements		N/A		—		169.5		N/A		—		137.2

Total			$	2,601.9	$	5,685.4			$	2,904.0	$	5,891.1

⁽¹⁾

As of December 31, 2012, includes a notional amount, asset fair value and liability fair value for interest rate caps of $4.5 billion, $17.7 and $0.6, respectively. As of December 31, 2011, includes a notional amount, asset fair value and liability fair value for interest rate caps of $8.8 billion, $40.0 and $3.5, respectively.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Net realized gains (losses) on derivatives were as follows for the periods indicated:


	Six Months Ended June 30,
	2013			2012
Derivatives: Qualifying for hedge accounting⁽¹⁾
Cash flow hedges:
Interest rate contracts	$	0.1		$	—
Fair value hedges:
Interest rate contracts		26.6			(7.0	)
Derivatives: Non-qualifying for hedge accounting⁽²⁾
Interest rate contracts		(809.4	)		270.6
Foreign exchange contracts		117.6			52.5
Equity contracts		(1,151.9	)		(966.3	)
Credit contracts		11.1			16.9
Managed custody guarantees		0.1			1.1
Embedded derivatives:
Within fixed maturity investments⁽²⁾		(73.5	)		3.6
Within annuity products⁽²⁾		759.7			(197.5	)
Within reinsurance agreements⁽³⁾		73.2			(20.4	)

Total	$	(1,046.4	)	$	(846.5	)

⁽¹⁾

Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses). Changes in fair value upon disposal for effective cash flow hedges are amortized through Net investment income and the ineffective portion is recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. For the six months ended June 30, 2013 and 2012, ineffective amounts were immaterial.

⁽²⁾	Changes in value are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾	Changes in value are included in Policyholder benefits in the Condensed Consolidated Statements of Operations.

Net realized gains (losses) on derivatives were as follows for the years ended December 31, 2012, 2011 and 2010:


	2012			2011			2010
Derivatives: Qualifying for hedge accounting⁽¹⁾
Cash flow hedges:
Interest rate contracts	$	—		$	—		$	(0.3	)
Fair value hedges:
Interest rate contracts		(10.0	)		(57.2	)		(4.8	)
Derivatives: Non-qualifying for hedge accounting⁽²⁾
Interest rate contracts		51.5			1,041.8			(443.9	)
Foreign exchange contracts		10.9			(2.4	)		33.2
Equity contracts		(1,801.9	)		(559.0	)		(867.1	)
Credit contracts		37.1			(4.6	)		39.4
Managed custody guarantees		1.1			1.1			4.1
Embedded derivatives:
Within fixed maturity investments⁽²⁾		(15.7	)		16.1			48.3
Within annuity products⁽²⁾		336.2			(1,946.2	)		(76.7	)
Within reinsurance agreements⁽³⁾		(32.2	)		(68.1	)		(42.6	)

Total	$	(1,423.0	)	$	(1,578.5	)	$	(1,310.4	)

⁽¹⁾

Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses). Changes in fair value upon disposal for effective cash flow hedges are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. For the years ended December 31, 2012, 2011 and 2010, ineffective amounts were immaterial.

⁽²⁾	Changes in value are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

⁽³⁾	Changes in value are included in Policyholder benefits in the Consolidated Statements of Operations.

Offsetting Assets and Liabilities

the notional amounts and fair values of derivatives eligible for offset were as follows as of the dates indicated:


	June 30, 2013
	Notional Amount		Assets Fair Value			Liability Fair Value
Credit contracts	$	3,016.0	$	45.0		$	30.7
Equity contracts		3,987.2		142.8			14.2
Foreign exchange contracts		1,782.7		44.0			61.9
Interest rate contracts		60,185.4		898.5			1,193.5

			$	1,130.3		$	1,300.3


Counterparty netting⁽¹⁾			$	(753.3	)	$	(753.3	)
Cash collateral netting⁽²⁾				(140.4	)		(51.4	)
Securities collateral netting⁽²⁾				(25.6	)		(403.3	)

Net receivables/payables			$	211.0		$	92.3

⁽¹⁾	Represents the netting of receivable balances with payable balances for the same counterparty under enforceable netting agreements.

⁽²⁾	Represents the netting of collateral received and posted on a counterparty basis under credit support agreements.


	December 31, 2012
	Notional Amount		Assets Fair Value			Liability Fair Value
Credit contracts	$	3,106.0	$	63.3		$	52.7
Equity contracts		3,967.0		79.1			19.1
Foreign exchange contracts		1,985.8		11.3			95.0
Interest rate contracts		71,010.3		2,196.5			1,561.4

			$	2,350.2		$	1,728.2


Counterparty netting⁽¹⁾			$	(1,126.9	)	$	(1,126.9	)
Cash collateral netting⁽²⁾				(943.4	)		(85.7	)
Securities collateral netting⁽²⁾				(68.6	)		(395.6	)

Net receivables/payables			$	211.3		$	120.0

⁽¹⁾	Represents the netting of receivable balances with payable balances for the same counterparty under enforceable netting agreements.

⁽²⁾	Represents the netting of collateral received and posted on a counterparty basis under credit support agreements.