Subsequent events	6 Months Ended
Jun. 30, 2013
Subsequent events
Subsequent events	15. Subsequent events Pension plan amendment Defined benefit pension plans cover most full-time employees, certain part-time employees and employee-agents. In July 2013, the Company approved and communicated to affected employees amendments to the plans effective January 1, 2014 to introduce a new cash balance formula to replace the current formulas (including the final average pay formula and the current cash balance formula) under which eligible employees accrue benefits. In connection with the amendments, the pension benefit obligations will be remeasured. The remeasurement will reflect assumptions as of July 15, 2013, including the discount rate and plan assets, and will consider the new plan formula. The change will be recognized through unrecognized pension and other postretirement benefit cost in accumulated other comprehensive income. Unrecognized pension and other postretirement benefit cost is expected to decrease in the range of approximately $650 million to $780 million, after-tax, which will increase shareholders’ equity. Net periodic pension cost will be remeasured for the remainder of 2013. The remeasurement will include an update for settlement losses, if any. Postretirement life insurance benefit amendment The Company provides certain life insurance benefits for eligible employees hired before January 1, 2003 when they retire. In July 2013, the Company decided to eliminate this benefit effective January 1, 2014 for all current employees and effective January 1, 2016 for all retirees who retired after 1989. In connection with the amendment, the postretirement benefit obligations will be remeasured. The remeasurement will reflect assumptions as of July 15, 2013, including the discount rate, and will consider the modified benefit applicability. A curtailment of benefits occurs because the amendment eliminates benefits for all future services for current employees. Accordingly, a curtailment gain of approximately $120 million, after-tax, will be recorded in net income in the third quarter of 2013. Unrecognized pension and other postretirement benefit cost is expected to decrease by approximately $55 million, after-tax. The combined impact is estimated to increase shareholders’ equity by $175 million. Sale agreement On July 17, 2013, the Company entered into a definitive agreement with Resolution Life Holdings, Inc. to sell Lincoln Benefit Life Company and its business generated through independent master brokerage agencies for $600 million. The transaction is expected to close by December 31, 2013. The transaction is subject to regulatory approvals and other customary closing conditions. A loss on disposition estimated to be in the range of approximately $475 million to $525 million, after-tax, will be recorded in third quarter 2013. The total reduction in shareholders’ equity, including the impact to unrealized capital gains and losses, is estimated to be in the range of approximately $575 million to $675 million. This transaction will meet the criteria for held-for-sale accounting beginning in third quarter 2013.

15. Subsequent events

Pension plan amendment

Defined benefit pension plans cover most full-time employees, certain part-time employees and employee-agents. In July 2013, the Company approved and communicated to affected employees amendments to the plans effective January 1, 2014 to introduce a new cash balance formula to replace the current formulas (including the final average pay formula and the current cash balance formula) under which eligible employees accrue benefits.

In connection with the amendments, the pension benefit obligations will be remeasured. The remeasurement will reflect assumptions as of July 15, 2013, including the discount rate and plan assets, and will consider the new plan formula. The change will be recognized through unrecognized pension and other postretirement benefit cost in accumulated other comprehensive income. Unrecognized pension and other postretirement benefit cost is expected to decrease in the range of approximately $650 million to $780 million, after-tax, which will increase shareholders’ equity. Net periodic pension cost will be remeasured for the remainder of 2013. The remeasurement will include an update for settlement losses, if any.

Postretirement life insurance benefit amendment

The Company provides certain life insurance benefits for eligible employees hired before January 1, 2003 when they retire. In July 2013, the Company decided to eliminate this benefit effective January 1, 2014 for all current employees and effective January 1, 2016 for all retirees who retired after 1989. In connection with the amendment, the postretirement benefit obligations will be remeasured. The remeasurement will reflect assumptions as of July 15, 2013, including the discount rate, and will consider the modified benefit applicability. A curtailment of benefits occurs because the amendment eliminates benefits for all future services for current employees. Accordingly, a curtailment gain of approximately $120 million, after-tax, will be recorded in net income in the third quarter of 2013. Unrecognized pension and other postretirement benefit cost is expected to decrease by approximately $55 million, after-tax. The combined impact is estimated to increase shareholders’ equity by $175 million.

Sale agreement

On July 17, 2013, the Company entered into a definitive agreement with Resolution Life Holdings, Inc. to sell Lincoln Benefit Life Company and its business generated through independent master brokerage agencies for $600 million. The transaction is expected to close by December 31, 2013. The transaction is subject to regulatory approvals and other customary closing conditions. A loss on disposition estimated to be in the range of approximately $475 million to $525 million, after-tax, will be recorded in third quarter 2013. The total reduction in shareholders’ equity, including the impact to unrealized capital gains and losses, is estimated to be in the range of approximately $575 million to $675 million. This transaction will meet the criteria for held-for-sale accounting beginning in third quarter 2013.