(4) Investments HGI’s investments consist of (1) marketable equity securities classified as trading and carried at fair value with unrealized gains and losses recognized in earnings, including certain securities for which the Company has elected the fair value option under Accounting Standards Codification ("ASC") Topic 825, Financial Instruments, which would otherwise have been classified as available-for-sale; (2) U.S. Treasury securities and a certificate of deposit classified as held-to-maturity and carried at amortized cost, which approximates fair value; (3) FGL’s debt and equity securities have been designated as available-for-sale and are carried at fair value with unrealized gains and losses included in AOCI, net of associated adjustments for value of business acquired ("VOBA"), deferred acquisition costs ("DAC") and deferred income taxes; and (4) asset-backed loan receivables originated by Salus, which are carried at the the principal amount outstanding, adjusted for an allowance for credit losses. The Company’s consolidated investments are summarized as follows:
| | | | | | | | | | | | | | | | | | | | | | June 30, 2013 | | Cost or Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value | | Carrying Value | | | | | | | | | | | Fixed-maturity securities, available-for sale | | | | | | | | | | Asset-backed securities | $ | 1,416.2 |
| | $ | 25.9 |
| | $ | (4.6 | ) | | $ | 1,437.5 |
| | $ | 1,437.5 |
| Commercial mortgage-backed securities | 496.5 |
| | 28.1 |
| | (0.7 | ) | | 523.9 |
| | 523.9 |
| Corporates | 10,008.8 |
| | 367.5 |
| | (163.5 | ) | | 10,212.8 |
| | 10,212.8 |
| Hybrids | 483.6 |
| | 27.8 |
| | (3.1 | ) | | 508.3 |
| | 508.3 |
| Municipals | 1,005.2 |
| | 59.1 |
| | (27.4 | ) | | 1,036.9 |
| | 1,036.9 |
| Agency residential mortgage-backed securities | 108.7 |
| | 2.7 |
| | (0.4 | ) | | 111.0 |
| | 111.0 |
| Non-agency residential mortgage-backed securities | 1,274.8 |
| | 88.4 |
| | (9.3 | ) | | 1,353.9 |
| | 1,353.9 |
| U.S. Government | 391.5 |
| | 6.4 |
| | (3.9 | ) | | 394.0 |
| | 394.0 |
| Total fixed maturities | 15,185.3 |
| | 605.9 |
| | (212.9 | ) | | 15,578.3 |
| | 15,578.3 |
| Equity securities | | | | | | | | | | Available-for-sale | 265.2 |
| | 9.2 |
| | (4.6 | ) | | 269.8 |
| | 269.8 |
| Held for trading | 110.2 |
| | 1.6 |
| | (44.6 | ) | | 67.2 |
| | 67.2 |
| Total equity securities | 375.4 |
| | 10.8 |
| | (49.2 | ) | | 337.0 |
| | 337.0 |
| Derivatives | 140.6 |
| | 95.3 |
| | (8.5 | ) | | 227.4 |
| | 227.4 |
| Asset-backed loans | 430.2 |
| | — |
| | — |
| | 430.2 |
| | 430.2 |
| Other invested assets | | | | | | | | | | Policy loans and other invested assets | 27.6 |
| | — |
| | — |
| | 27.6 |
| | 27.6 |
| Total investments | $ | 16,159.1 |
| | $ | 712.0 |
| | $ | (270.6 | ) | | $ | 16,600.5 |
| | $ | 16,600.5 |
|
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