Net Investment Income
The major sources of "Net investment income" on the accompanying Condensed Consolidated Statements of Operations were as follows:
|
| | | | | | | | | | | | | | | |
| Three months ended | | Nine months ended |
| June 30, 2013 | | July 1, 2012 | | June 30, 2013 | | July 1, 2012 |
Fixed maturity available-for-sale securities | $ | 173.8 |
| | $ | 172.7 |
| | $ | 507.3 |
| | $ | 530.4 |
|
Equity available-for-sale securities | 3.9 |
| | 4.8 |
| | 11.5 |
| | 10.8 |
|
Policy loans | 0.1 |
| | 0.2 |
| | 0.6 |
| | 0.6 |
|
Invested cash and short-term investments | 0.2 |
| | 2.1 |
| | 1.4 |
| | 3.5 |
|
Other investments | 15.2 |
| | 2.3 |
| | 29.4 |
| | 2.9 |
|
Gross investment income | 193.2 |
| | 182.1 |
| | 550.2 |
| | 548.2 |
|
External investment expense | (3.6 | ) | | (2.9 | ) | | (10.5 | ) | | (9.2 | ) |
Net investment income | $ | 189.6 |
| | $ | 179.2 |
| | $ | 539.7 |
| | $ | 539.0 |
|
Net investment gains (losses)
"Net investment gains (losses)" reported on the accompanying Condensed Consolidated Statements of Operations were as follows:
|
| | | | | | | | | | | | | | | |
| Three months ended | | Nine months ended |
| June 30, 2013 | | July 1, 2012 | | June 30, 2013 | | July 1, 2012 |
Net realized gains before other-than-temporary impairments | $ | 34.7 |
| | $ | 40.4 |
| | $ | 280.2 |
| | $ | 192.0 |
|
Gross other-than-temporary impairments | (0.7 | ) | | (2.4 | ) | | (1.6 | ) | | (21.3 | ) |
Non-credit portion of other-than-temporary impairments included in other comprehensive income | — |
| | (0.1 | ) | | — |
| | 1.5 |
|
Net realized gains on fixed maturity available-for-sale securities | 34.0 |
| | 37.9 |
| | 278.6 |
| | 172.2 |
|
Realized gains on equity securities | 4.5 |
| | 0.4 |
| | 6.4 |
| | 0.8 |
|
Net realized gains on securities | 38.5 |
| | 38.3 |
| | 285.0 |
| | 173.0 |
|
Realized gains (losses) on certain derivative instruments | 54.0 |
| | (26.3 | ) | | 99.3 |
| | (32.0 | ) |
Unrealized gains on certain derivative instruments | (34.0 | ) | | (24.9 | ) | | 27.3 |
| | 114.6 |
|
Change in fair value of derivatives | 20.0 |
| | (51.2 | ) | | 126.6 |
| | 82.6 |
|
Realized gains on other invested assets | (0.2 | ) | | — |
| | (0.1 | ) | | (1.0 | ) |
Net investment gains (losses) | $ | 58.3 |
| | $ | (12.9 | ) | | $ | 411.5 |
| | $ | 254.6 |
|
For the three and nine months ended June 30, 2013, principal repayments, calls, tenders, and proceeds from the sale of fixed maturity available-for-sale securities totaled $836.0 and $5,741.6, gross gains on such sales totaled $35.0 and $284.0 and gross losses totaled $0.5 and $1.0, respectively. The proceeds from the sale of fixed maturity available-for sale securities exclude maturities and repayments for the three and nine months ended June 30, 2013.
For the three and nine months ended July 1, 2012, principal repayments, calls, tenders, and proceeds from the sale of fixed maturity available-for-sale securities, including assets transferred to Wilton Re as discussed in Note 12 totaled $1,216.2 and $4,366.3, gross gains on such sales totaled $49.5 and $211.9 and gross losses totaled $9.2 and $20.9, respectively. The proceeds from the sale of fixed maturity available-for sale securities exclude maturities and repayments for the three and nine months ended July 1, 2012.
Underlying write-downs taken to fixed maturity available-for-sale securities as a result of other-than-temporary impairments that were recognized in earnings and included in net realized gains on securities above were $0.7 and $1.6 for the three and nine months ended June 30, 2013, respectively and were $2.5 and $19.8 for the three and nine months ended July 1, 2012, respectively.