Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA)

3 Months Ended

Mar. 31, 2012

Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract]

Deferred Policy Acquisition Costs ("DAC") and Value of Business Acquired ("VOBA")

Deferred Policy Acquisition Costs (“DAC”) and Value of Business Acquired (“VOBA”)

Activity within DAC was as follows for the three months ended March 31, 2012 and 2011.



	2012			2011
				(As revised)
Balance at January 1	$	335.0		$	452.3
Deferrals of commissions and expenses	18.5			18.4
Amortization:
Amortization	(19.6		)	6.5
Interest accrued at 5% to 7%	7.6			(16.6		)
Net amortization included in Condensed Consolidated Statements of Operations	(12.0		)	(10.1		)
Change in unrealized capital gains/losses on available-for-sale securities	(5.3		)	128.2
Balance at March 31	$	336.2		$	588.8

Activity within VOBA was as follows for the three months ended March 31, 2012 and 2011.



	2012			2011
				(As revised)
Balance at January 1	$	593.7		$	719.6
Deferrals of commissions and expenses	2.1			2.0
Amortization:
Amortization	(57.8		)	(41.1		)
Interest accrued at 5% to 8%	17.0			18.1
Net amortization included in Condensed Consolidated Statements of Operations	(40.8		)	(23.0		)
Change in unrealized capital gains/losses on available-for-sale securities	(16.5		)	11.5
Balance at March 31	$	538.5		$	710.1

- Definition

Disclosure of accounting policy for capitalizing costs incurred to write or acquire insurance contracts, the basis for and methodology for capitalizing such costs, the accounting for such deferred acquisition costs (DAC) when modifications or internal replacements of related insurance contracts occur and the effect on results of operations, and the methodology and amount of amortization. This disclosure addresses the nature, type, and amount of capitalized costs incurred to write or acquire insurance contracts.

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