Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following for the years ended December 31, 2012, 2011 and 2010.



	2012			2011			2010
Current tax expense (benefit):
Federal	$	200.9		$	60.3		$	73.2
Total current tax expense (benefit)	200.9			60.3			73.2
Deferred tax expense (benefit):
Federal	(9.7		)	(65.3		)	35.8
Total deferred tax expense (benefit)	(9.7		)	(65.3		)	35.8
Total income tax expense (benefit)	$	191.2		$	(5.0	)	$	109.0

Schedule of Effective Income Tax Rate Reconciliation

Income taxes were different from the amount computed by applying the federal income tax rate to income (loss) before income taxes for the following reasons for the years ended December 31, 2012, 2011 and 2010:




	2012			2011			2010
Income (loss) before income taxes	$	516.6		$	315.3		$	486.9
Tax rate	35.0		%	35.0		%	35.0		%
Income tax expense (benefit) at federal statutory rate	180.8			110.4			170.4
Tax effect of:
Dividends received deduction	(18.6		)	(37.0		)	(23.3		)
Valuation allowance	—			(87.0		)	(13.7		)
IRS audit adjustment	(0.3		)	3.7			(26.8		)
Prior year tax	28.1			—			—
State tax expense (benefit)	—			—			0.6
Other	1.2			4.9			1.8
Income tax expense (benefit)	$	191.2		$	(5.0	)	$	109.0

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to Deferred tax assets and Deferred tax liabilities as of December 31, 2012 and 2011, are presented below.



	2012			2011
Deferred tax assets:
Insurance reserves	$	255.4		$	269.6
Investments	87.5			89.2
Postemployment benefits	50.6			97.1
Compensation and benefits	44.4			22.9
Other assets	24.5			22.5
Total gross assets before valuation allowance	462.4			501.3
Less: Valuation allowance	11.1			11.1
Assets, net of valuation allowance	451.3			490.2

Deferred tax liabilities:
Net unrealized investment (gains) losses	(482.4		)	(357.5		)
Deferred policy acquisition costs	(143.8		)	(127.0		)
Value of business acquired	(332.2		)	(360.9		)
Total gross liabilities	(958.4		)	(845.4		)
Net deferred income tax liability	$	(507.1	)	$	(355.2	)

Schedule of Unrecognized Tax Benefits

Reconciliations of the change in the unrecognized income tax benefits for the years ended December 31, 2012 and 2011 are as follows:



	2012		2011
Balance at beginning of period	$	—	$	23.0
Additions for tax positions related to prior years	—		4.5
Reductions for tax positions related to prior years	—		(4.5		)
Reductions for settlements with taxing authorities	—		(23.0		)
Balance at end of period	$	—	$	—