|  

 

 

  |  
**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**_______________________**

 
 

 
**FORM 10-Q**

 
 

 
**(Mark One)**

 
 

x

 

**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

 

**For the quarterly period ended****June 30, 2009**

 

**OR**

 
 

o

 

**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

 

**For the transition period from ___________________ to ____________________**

 

 
**Commission File Number:**  **333-158492, 333-133157, 333-133158, 333-130833, 333-130827**

 

 

 
**ING LIFE INSURANCE AND ANNUITY COMPANY**

(Exact name of registrant as specified in its charter)

 

 
**Connecticut**

(State or other jurisdiction of incorporation or organization)

 

**One Orange Way**

**Windsor, Connecticut**

(Address of principal executive offices)

 

**71-0294708**

(IRS Employer Identification No.)

 

**06095-4774**

(Zip Code)

 

**(860) 580-4646**

(Registrant's telephone number, including area code)

 

 
 

 
(Former name, former address and former fiscal year, if changed since last report)

 
 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes     x       No    o

 

Indicate by check mark whether the registrant (1) has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).       Yes     o       No    o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer            o

Accelerated filer           o

Non-accelerated filer     x

(Do not check if a smaller

reporting company)

Smaller reporting company     o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).        Yes    o       No    x

 

**APPLICABLE ONLY TO CORPORATE ISSUERS:**

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 55,000 shares of Common Stock, $50 par value, as of August 7, 2009, are issued and outstanding, all of which were directly owned by Lion Connecticut Holdings Inc.

 

NOTE:  WHEREAS ING LIFE INSURANCE AND ANNUITY COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q, THIS FORM IS BEING FILED WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL INSTRUCTION H(2).

 

 

1

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Form 10-Q for the period ended June 30, 2009**

 

 

 

 

 

 

 

**INDEX**

 

 

 

 

**PART I.**

**FINANCIAL INFORMATION  (UNAUDITED)**

**PAGE**

 

 

 

Item 1.

Financial Statements:

 

 

Condensed Consolidated Statements of Operations

3

 

Condensed Consolidated Balance Sheets

4

 

Condensed Consolidated Statements of Changes in Shareholder's Equity

6

 

Condensed Consolidated Statements of Cash Flows

7

 

Notes to Condensed Consolidated Financial Statements

8

 

 

 

Item 2.

Management’s Narrative Analysis of the Results of Operations andFinancial Condition

 

53

 

 

 

Item 4.

Controls and Procedures

84

 

 

 

 

 

 

**PART II.**

**OTHER INFORMATION**

 

 

 

 

Item 1.

Legal Proceedings

85

 

 

 

Item 1A.

Risk Factors

85

 

 

 

Item 6.

Exhibits

91

 

 

 

Signature

 

92

 

 

 

Exhibit Index

 

93

 

 

2

 

 

 

**ING** **Life** **Insurance** **and** **Annuity** **Company** **and** **Subsidiaries**

**(A** **wholly-owned** **subsidiary** **of** **Lion** **Connecticut** **Holdings** **Inc.)**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**PART** **I.** **FINANCIAL** **INFORMATION** **(UNAUDITED)**

 

 

 

 

 

 

 

**Item** **1.** **Financial** **Statements**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Condensed** **Consolidated** **Statements** **of** **Operations**

(Unaudited)

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

**Three** **Months** **Ended** **June** **30,**

 

 

**Six** **Months** **Ended** **June** **30,**

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

 

 

**2009**

 

 

**2008**

**Revenues:**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

293.1 

 

$

275.5 

 

$

613.5 

 

$

536.4 

 

Fee income

 

 

 

128.4 

 

 

170.5 

 

 

239.8 

 

 

341.7 

 

Premiums

 

 

 

 

8.8 

 

 

7.8 

 

 

13.6 

 

 

15.1 

 

Broker-dealer commission revenue

 

63.6 

 

 

173.2 

 

 

159.3 

 

 

350.5 

 

Net realized capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other-than-temporary impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

losses

 

 

 

(185.5)

 

 

(63.7)

 

 

(344.9)

 

 

(113.2)

 

 

Less: Portion of other-than-temporary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

impairment losses recognized in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

14.3 

 

 

-  

 

 

14.3 

 

 

-  

 

 

Net other-than-temporary impairments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

recognized in earnings

 

(171.2)

 

 

(63.7)

 

 

(330.6)

 

 

(113.2)

 

 

Other net realized capital losses

 

(65.6)

 

 

(29.3)

 

 

146.3 

 

 

(39.7)

 

 

Total net realized capital losses

 

(236.8)

 

 

(93.0)

 

 

(184.3)

 

 

(152.9)

 

Other income

 

 

4.0 

 

 

4.4 

 

 

8.1 

 

 

8.0 

Total revenue

 

 

 

261.1 

 

 

538.4 

 

 

850.0 

 

 

1,098.8 

**Benefits** **and** **expenses:**

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited and other benefits 

 

 

 

 

 

 

 

 

 

 

 

 

 

to contractowners

 

133.5 

 

 

91.3 

 

 

298.5 

 

 

326.6 

 

Operating expenses

 

140.6 

 

 

173.5 

 

 

285.4 

 

 

334.9 

 

Broker-dealer commission expense

 

63.6 

 

 

173.2 

 

 

159.3 

 

 

350.5 

 

Net amortization of deferred policy acquisition 

 

 

 

 

 

 

 

 

 

 

 

 

 

costs and value of business acquired

 

(85.4)

 

 

74.8 

 

 

61.4 

 

 

159.3 

 

Interest expense

 

1.4 

 

 

0.5 

 

 

1.7 

 

 

0.8 

Total benefits and expenses

 

253.7 

 

 

513.3 

 

 

806.3 

 

 

1,172.1 

Income (loss) before income taxes

 

7.4 

 

 

25.1 

 

 

43.7 

 

 

(73.3)

Income tax (benefit) expense

 

(89.6)

 

 

1.9 

 

 

(93.6)

 

 

(51.9)

Net income (loss)

$

97.0 

 

$

23.2 

 

$

137.3 

 

$

(21.4)

 

 

3

 

 

 

**ING** **Life** **Insurance** **and** **Annuity** **Company** **and** **Subsidiaries**

**(A** **wholly-owned** **subsidiary** **of** **Lion** **Connecticut** **Holdings** **Inc.)**

 

**Condensed** **Consolidated** **Balance** **Sheets**

(In millions, except share data)

 

 

 

 

 

 

 

 

 

**As** **of**

 

 

**As** **of** 

 
 

 

 

 

 

 

**June** **30,**

 

 

**December** **31,**

 
 

 

 

 

 

 

**2009**

 

 

**2008**

 
 

 

 

 

 

 

**(Unaudited)**

 

 

 

 
**Assets**

 

 

 

 

 

 

 
Investments:

 

 

 

 

 

 
 

Fixed maturities, available-for-sale, at fair value 

 

 

 

 

 

 
 

 

(amortized cost of $14,326.7 at 2009 and $14,544.3.6 at 2008)

$

13,673.7 

 

$

13,157.7 

 
 

Equity securities, available-for-sale, at fair value

 

 

 

 

 

 
 

 

(cost of $212.4 at 2009 and $247.7 at 2008)

 

225.5 

 

 

240.3 

 
 

Short-term investments

 

310.5 

 

 

41.9 

 
 

Mortgage loans on real estate

 

2,049.8 

 

 

2,107.8 

 
 

Loan - Dutch State obligation

 

749.4 

 

 

-  

 
 

Policy loans

 

254.2 

 

 

267.8 

 
 

Limited partnerships/corporations

 

443.7 

 

 

513.9 

 
 

Derivatives

 

112.4 

 

 

235.2 

 
 

Securities pledged (amortized cost of $769.7 at 2009 and $1,248.8 at 2008)

 

751.1 

 

 

1,319.9 

 
Total investments

 

18,570.3 

 

 

17,884.5 

 
Cash and cash equivalents

 

178.9 

 

 

203.5 

 
Short-term investments under securities loan agreement,

 

 

 

 

 

 
 

including collateral delivered

 

642.0 

 

 

483.9 

 
Accrued investment income

 

210.1 

 

 

205.8 

 
Receivable for securities sold

 

103.7 

 

 

5.5 

 
Reinsurance recoverable

 

2,455.8 

 

 

2,505.6 

 
Deferred policy acquisition costs

 

877.8 

 

 

865.5 

 
Value of business acquired

 

1,410.6 

 

 

1,832.5 

 
Notes receivable from affiliate

 

175.0 

 

 

175.0 

 
Short-term loan to affiliate

 

590.2 

 

 

-  

 
Due from affiliates

 

13.7 

 

 

13.8 

 
Current income tax recoverable

 

-  

 

 

38.6 

 
Property and equipment

 

93.0 

 

 

114.7 

 
Other assets

 

86.9 

 

 

233.3 

 
Assets held in separate accounts

 

35,907.0 

 

 

35,927.7 

 
Total assets

$

61,315.0 

 

$

60,489.9 

 
 

 

*The accompanying notes are an integral part of these consolidated financial statements.*

 

4

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

 

**Condensed Consolidated Balance Sheets**

(In millions, except share data)

 

 

 

 

 

 

 

 

 

**As** **of**

 

 

**As** **of** 

 

 

 

 

 

 

**June** **30,**

 

 

**December** **31,**

 

 

 

 

 

 

**2009**

 

 

**2008**

 

 

 

 

 

 

**(Unaudited)**

 

 

 

**Liabilities** **and** **Shareholder's** **Equity**

 

 

 

 

 

Future policy benefits and claims reserves

$

21,218.2 

 

$

20,782.1 

Payable for securities purchased

 

153.8 

 

 

1.6 

Payables under securities loan agreement, including collateral held

 

642.3 

 

 

488.3 

Notes payable

 

4.9 

 

 

17.9 

Borrowed money

 

48.5 

 

 

615.3 

Due to affiliates

 

78.3 

 

 

116.7 

Current income tax

 

8.5 

 

 

-  

Deferred income taxes

 

148.3 

 

 

101.1 

Other liabilities

 

694.1 

 

 

874.7 

Liabilities related to separate accounts

 

35,907.0 

 

 

35,927.7 

Total liabilities

 

58,903.9 

 

 

58,925.4 

 

 

 

 

 

 

 

 

 

 

Shareholder's equity:

 

 

 

 

 

 

Common stock (100,000 shares authorized, 55,000  

 

 

 

 

 

 

 

issued and outstanding; $50 per share value)

 

2.8 

 

 

2.8 

 

Additional paid-in capital

 

4,527.3 

 

 

4,161.3 

 

Accumulated other comprehensive income (loss)

 

(290.5)

 

 

(482.1)

 

Retained earnings (deficit)

 

(1,828.5)

 

 

(2,117.5)

Total shareholder's equity

 

2,411.1 

 

 

1,564.5 

Total liabilities and shareholder's equity

$

61,315.0 

 

$

60,489.9 

 

 

*The accompanying notes are an integral part of these consolidated financial statements.*

 

5

 

 

 

**ING** **Life** **Insurance** **and** **Annuity** **Company** **and** **Subsidiaries**

**(A** **wholly-owned** **subsidiary** **of** **Lion** **Connecticut** **Holdings** **Inc.)**

 

**Condensed** **Consolidated** **Statements** **of** **Changes** **in** **Shareholder’s** **Equity**

(Unaudited)

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Accumulated**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Additional**

 

**Other**

 

**Retained**

 

**Total**

 

 

 

 

 

 

 

**Common**

 

**Paid-In**

 

**Comprehensive**

 

**Earnings**

 

**Shareholder's**

 

 

 

 

 

 

 

**Stock**

 

**Capital**

 

**Income** **(Loss)**

 

**(Deficit)**

 

**Equity**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2007

$

2.8 

 

$

4,159.3 

 

$

(33.8)

 

$

(1,087.3)

 

$

3,041.0 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-  

 

 

-  

 

 

-  

 

 

(21.4)

 

 

(21.4)

 

 

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized capital gains (losses) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

on securities ($(175.0) pretax), including

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

change in tax valuation allowance of $6.4

 

-  

 

 

-  

 

 

(107.4)

 

 

-  

 

 

(107.4)

 

Total comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(128.8)

 

Employee share-based payments

 

-  

 

 

1.0 

 

 

-  

 

 

-  

 

 

1.0 

Balance at June 30, 2008

$

2.8 

 

$

4,160.3 

 

$

(141.2)

 

$

(1,108.7)

 

$

2,913.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2008

 

2.8 

 

 

4,161.3 

 

 

(482.1)

 

 

(2,117.5)

 

 

1,564.5 

Activity during three months ended March 31, 2009

 

-  

 

 

365.5 

 

 

30.2 

 

 

40.3 

 

 

436.0 

Balance at March 31, 2009

 

2.8 

 

 

4,526.8 

 

 

(451.9)

 

 

(2,077.2)

 

 

2,000.5 

Cumulative effect of change in accounting principle,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

net of DAC and tax

 

-  

 

 

-  

 

 

(151.7)

 

 

151.7 

 

 

-  

Balance at April 1, 2009

 

2.8 

 

 

4,526.8 

 

 

(603.6)

 

 

(1,925.5)

 

 

2,000.5 

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

-  

 

 

-  

 

 

-  

 

 

97.0 

 

 

97.0 

 

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized capital gains (losses) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

on securities ($456.2 pretax), including change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in tax valuation allowance of $19.4

 

-  

 

 

-  

 

 

327.7 

 

 

-  

 

 

327.7 

 

 

 

Portion of other-than-temporary impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

losses recognized in other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income (loss) ($(14.3) pretax), including

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

change in tax valuation allowance of $(4.8)

 

-  

 

 

-  

 

 

(14.3)

 

 

-  

 

 

(14.3)

 

 

 

Pension liability ($(0.4) pretax)

 

-  

 

 

-  

 

 

(0.3)

 

 

-  

 

 

(0.3)

 

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

410.1 

 

Employee share-based payments

 

-  

 

 

0.5 

 

 

-  

 

 

-  

 

 

0.5 

Balance at June 30, 2009

$

2.8 

 

$

4,527.3 

 

$

(290.5)

 

$

(1,828.5)

 

$

2,411.1 

 

 

*The accompanying notes are an integral part of these consolidated financial statements.*

 

6

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

 

**Condensed Consolidated Statements of Cash Flows**

(Unaudited)

(In millions)

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,**

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Net cash provided by operating activities

$

622.7 

 

$

365.6 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Proceeds from the sale, maturity, disposal or redemption of:

 

 

 

 

 

 

 

Fixed maturities, available-for-sale

 

1,582.1 

 

 

3,504.5 

 

 

Equity securities, available-for-sale

 

56.0 

 

 

319.4 

 

 

Mortgage loans on real estate

 

111.2 

 

 

58.0 

 

 

Limited partnerships/corporations

 

50.9 

 

 

34.8 

 

 

Derivatives

 

16.0 

 

 

65.2 

 

Acquisition of:

 

 

 

 

 

 

 

Fixed maturities, available-for-sale

 

(1,457.9)

 

 

(4,464.6)

 

 

Equity securities, available-for-sale

 

(33.3)

 

 

(311.8)

 

 

Mortgage loans on real estate

 

(55.1)

 

 

(27.0)

 

 

Limited partnerships/corporations

 

(20.8)

 

 

(84.1)

 

 

Derivatives

 

(136.6)

 

 

(71.2)

 

Policy loans, net

 

13.6 

 

 

8.8 

 

Short-term investments, net

 

(267.7)

 

 

122.6 

 

Collateral received (delivered)

 

(4.1)

 

 

(26.7)

 

Purchases of fixed assets, net

 

15.3 

 

 

(18.4)

 

Other investments, net

 

-  

 

 

0.1 

Net cash used in investing activities

 

(130.4)

 

 

(890.4)

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

Deposits received for investment contracts

 

1,374.2 

 

 

1,716.4 

 

Maturities and withdrawals from investment contracts

 

(1,086.1)

 

 

(1,108.1)

 

Short-term loans to affiliates

 

(603.2)

 

 

40.0 

 

Short-term repayments of repurchase agreements, net

 

(566.8)

 

 

(30.4)

 

Contribution of capital

 

365.0 

 

 

-  

Net cash (used in) provided by financing activities

 

(516.9)

 

 

617.9 

Net (decrease) increase in cash and cash equivalents

 

(24.6)

 

 

93.1 

Cash and cash equivalents, beginning of period

 

203.5 

 

 

252.3 

Cash and cash equivalents, end of period

$

178.9 

 

$

345.4 

 

 

*The accompanying notes are an integral part of these consolidated financial statements.*

 

7

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

**1.**

**Organization and Significant Accounting Policies**

***Basis of Presentation***

 

ING Life Insurance and Annuity Company (“ILIAC”) is a stock life insurance company domiciled in the state of Connecticut.  ILIAC and its wholly-owned subsidiaries (collectively, the “Company”) are providers of financial products and services in the United States.  ILIAC is authorized to conduct its insurance business in all states and in the District of Columbia.

 

The condensed consolidated financial statements for the six months ended June 30, 2009, include ILIAC and its wholly-owned subsidiaries, ING Financial Advisers, LLC (“IFA”) and Directed Services LLC (“DSL”).  ILIAC is a direct, wholly-owned subsidiary of Lion Connecticut Holdings Inc. (“Lion” or “Parent”), which is an indirect, wholly-owned subsidiary of ING Groep N.V. (“ING”).  ING is a global financial services holding company based in The Netherlands, with American Depository Shares listed on the New York Stock Exchange under the symbol “ING.”

 

The condensed consolidated financial statements and notes as of June 30, 2009, and for the three and six months ended June 30, 2009 and 2008, have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") and are unaudited.

 

The condensed consolidated financial statements reflect all adjustments (consisting only of normal, recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations, and cash flows, for the interim periods.  These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and related notes as presented in the Company’s 2008 Annual Report on Form 10-K.  The results of operations for the interim periods may not be considered indicative of results to be expected for the full year.

 

***Description of Business***

 

The Company offers qualified and nonqualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, and 457, as well as nonqualified deferred compensation plans.  The Company’s products are offered primarily to individuals, pension plans, small businesses, and employer-sponsored groups in the health care, government, and education markets (collectively “not-for-profit” organizations) and corporate markets.  The Company’s products are generally distributed through pension professionals, independent agents and brokers, third party administrators, banks, dedicated career agents, and financial planners.

 

 

8

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

***Use of Estimates***

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from reported results using those estimates.

 

***Reclassifications***

 

Certain reclassifications have been made to prior year financial information to conform to the current year classifications.

 

***Subsequent Events***

 

The Company has evaluated subsequent events for recognition and disclosure through August 14, 2009, which is the date the condensed consolidated financial statements as of June 30, 2009 and for the three and six months ended June 30, 2009 were issued.

 

***Significant Accounting Policies***

 

For a description of significant accounting policies, see the Organization and Significant Accounting Policies footnote to the Consolidated Financial Statements included in the Company’s 2008 Annual Report on Form 10-K.  There have been no material changes to the Company’s significant accounting policies since the filing of the Company’s 2008 Annual Report on Form 10-K, except as noted in the Recently Adopted Accounting Standards footnote.

 

**2.**

**Recently Adopted Accounting Standards**

*Subsequent Events*

 

In May 2009, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“FAS”) No. 165, “Subsequent Events” (“FAS 165”), which establishes:

 

 

§

The period after the balance sheet date during which an entity should evaluate events or transactions for potential recognition or disclosure in the financial statements;

 

§

The circumstances under which an entity should recognize such events or transactions in its financial statements; and

 

§

Disclosures regarding such events or transactions and the date through which an entity has evaluated subsequent events.

 

9

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The provisions of FAS 165 were adopted by the Company on June 30, 2009. The Company determined, however, that FAS 165 did not have an effect on the Company’s financial condition, results of operations, or cash flows upon adoption, as its guidance is consistent with that previously applied by the Company under U.S. auditing standards. The disclosure provisions of FAS 165 are included in the Organization and Significant Accounting Policies footnote.

 

*Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly*

 

In April 2009, the FASB issued FASB Staff Position (“FSP”) on FAS No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP FAS 157-4”), which confirms that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In addition, the provisions of FSP FAS 157-4:

 

 

§

Clarify factors for determining whether there has been a significant decrease in market activity for an asset or liability;

 

§

Require an entity to determine whether a transaction is not orderly based on the weight of the evidence; and

 

§

Require an entity to disclose in interim and annual periods the input and valuation technique used to measure fair value and any change in valuation technique.

 

The provisions of FSP FAS 157-4 were adopted by the Company on April 1, 2009. The Company determined, however, that FSP FAS 157-4 did not have an effect on the Company’s financial condition, results of operations, or cash flows upon adoption, as its guidance is consistent with that applied by the Company upon adoption of FAS No. 157, “Fair Value Measurements” (“FAS 157”).

 

*Recognition and Presentation of Other-Than-Temporary Impairments*

 

In April 2009, the FASB issued FSP FAS No. 115-2 and FAS No. 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” (“FSP FAS 115-2 and FAS 124-2”), which applies to debt securities and requires:

 

 

§

Noncredit losses to be recognized in other comprehensive income (loss), if management asserts that it does not have the intent to sell the security and that it is more likely than not that the entity will not have to sell the security before recovery of the amortized cost basis;

 

10

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

§

Total other-than-temporary impairments (“OTTI”) to be presented in the statement of earnings with an offset recognized in other comprehensive income (loss) for the noncredit related impairments;

 

§

A cumulative effect adjustment as of the beginning of the period of adoption to reclassify the noncredit component of a previously recognized other-than-temporary impairment from retained earnings to accumulated other comprehensive income (loss); and

 

§

Additional interim disclosures for debt and equity securities regarding types of securities held, unrealized losses, and other-than-temporary impairments.

 

The provisions of FSP FAS 115-2 and FAS 124-2 were adopted by the Company on April 1, 2009.  As a result of implementation, the Company recognized a cumulative effect of change in accounting principle of $151.7 after considering the effects of deferred policy acquisition costs (“DAC”) and income taxes of $(134.0) and $46.9, respectively, as an increase to April 1, 2009 Retained earnings (deficit) with a corresponding decrease to Accumulated other comprehensive income (loss).

 

In addition, the Company recognized an increase in amortized cost for previously impaired securities due to the recognition of the cumulative effect of change in accounting principle as of April 1, 2009, as follows:

 

 

 

 

 

 

 

**Change** **in**

 

 

 

 

 

 

**Amortized** **Cost**

Fixed maturities:

 

 

 

U.S. corporate, state and municipalities

$

47.0 

 

Foreign

 

 

45.0 

 

Residential mortgage-backed

 

14.3 

 

Commercial mortgage-backed

 

88.5 

 

Other asset-backed

 

44.0 

Total investments, available-for-sale

$

238.8 

 

The disclosure provisions of FSP FAS 115-2 and FAS 124-2 are included in the Investments footnote. 

 

*Interim Disclosures about Fair Value of Financial Instruments*

 

In April 2009, the FASB issued FSP FAS No. 107-1 and Accounting Principles Board Opinion (“APB”) No. 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP FAS 107-1 and APB 28-1”), which requires that the fair value of financial instruments be disclosed in an entity’s interim financial statements, as well as in annual financial statements. The provisions of FSP FAS 107-1 and APB 28-1 also require that fair value information be presented with the related carrying value and that the method and significant assumptions used to estimate fair value, as well as changes in method and significant assumptions, be disclosed.

 

11

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

The provisions of FSP FAS No. 107-1 and APB 28-1 were adopted by the Company on April 1, 2009 and are included in the Financial Instruments footnote.  As the pronouncement only pertains to additional disclosure, the adoption had no effect on the Company’s financial condition, results of operations, or cash flows.

 

*Disclosures about Derivative Instruments and Hedging Activities*

 

In March 2008, the FASB issued FAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”), which requires enhanced disclosures about objectives and strategies for using derivatives, fair value amounts of and gains and losses on derivative instruments, and credit-risk-related contingent features in derivative agreements, including:

 

 

§

How and why derivative instruments are used;

 

§

How derivative instruments and related hedged items are accounted for under FAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“FAS 133”), and its related interpretations; and

 

§

How derivative instruments and related hedged items affect an entity’s financial statements.

 

The provisions of FAS 161 were adopted by the Company on January 1, 2009 and are included in the Financial Instruments footnote. As the pronouncement only pertains to additional disclosure, the adoption of FAS 161 had no effect on the Company’s financial condition, results of operations, or cash flows. In addition, the Company’s derivatives are generally not accounted for using hedge accounting treatment under FAS 133, as the Company has not historically sought hedge accounting treatment.

 

*Business Combinations*

 

In December 2007, the FASB issued FAS No. 141 (revised 2007), “Business Combinations” (“FAS 141(R)”), which replaces FAS No. 141, “Business Combinations,” as issued in 2001. FAS 141(R) requires most identifiable assets, liabilities, noncontrolling interest, and goodwill, acquired in a business combination to be recorded at full fair value as of the acquisition date, even for acquisitions achieved in stages. In addition, the statement requires:

 

 

§

Acquisition-related costs to be recognized separately and generally expensed;

 

§

Non-obligatory restructuring costs to be recognized separately when the liability is incurred;

 

§

Contractual contingencies acquired to be recorded at acquisition-date fair values;

 

12

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

§

A bargain purchase, which occurs when the fair value of net assets acquired exceeds the consideration transferred plus any non-controlling interest in the acquiree, to be recognized as a gain; and

 

§

The nature and financial effects of the business combination to be disclosed.

 

FAS 141(R) also amends or eliminates various other authoritative literature. In April 2009, the FASB issued FSP FAS No. 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (“FSP FAS 141(R)-1”), which rescinds the requirements in FAS 141(R) to recognize contingent assets and liabilities acquired in a business combination at fair value on the acquisition date, and reinstates most of the previous guidance in FAS 141 to value many of those contingencies under FAS No. 5, “Accounting for Contingencies”.

 

FAS 141(R) and FSP FAS 141(R)-1 were adopted by the Company on January 1, 2009. The Company determined, however, that there was no impact as of June 30, 2009, as there have been no acquisitions for the three or six month periods ended June 30, 2009.

 

*Equity Method Investment Accounting*

 

In November 2008, the Emerging Issues Task Force (“EITF”) reached consensus on EITF Issue No. 08-6, “Equity Method Investment Accounting Considerations” (“EITF 08-6”), which requires, among other provisions, that:

 

 

§

Equity method investments be initially measured at cost;

 

§

Contingent consideration only be included in the initial measurement;

 

§

An investor recognize its share of any impairment charge recorded by the equity investee; and

 

§

An investor account for a share issuance by an equity investee as if the investor had sold a proportionate share of its investment;

 

The provisions of EITF 08-6 were adopted by the Company on January 1, 2009. The Company determined, however, that there was no impact as of June 30, 2009, as there have been no acquisitions or changes in ownership for the three or six month periods ended June 30, 2009.

 

**3.**

**New Accounting Pronouncements**

*Consolidation of Variable Interest Entities*

 

In June 2009, the FASB issued FAS 167, “Consolidation of Variable Interest Entities, an amendment to FIN 46(R),” which eliminates the exemption for qualifying special-purpose entities ("QSPEs"), as well as amends the consolidation guidance for variable interest entities (“VIEs”), as follows:

 

13

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

§

Removes the quantitative-based assessment for consolidation of VIEs and, instead, requires a qualitative assessment of whether an entity has the power to direct the VIEs activities, and whether the entity has the obligation to absorb losses or the right to receive benefits that could be significant to the VIE; and

 

§

Requires an ongoing reassessment of whether an entity is the primary beneficiary of a VIE.

 

The provisions of FAS 167 are effective as of the beginning of the first fiscal year that begins after November 15, 2009, and for subsequent interim and annual reporting periods.  The Company is currently in the process of determining the impact of adoption of the provisions of FAS 167.

 

*Accounting for Transfers of Financial Assets*

 

In June 2009, the FASB issued FAS 166, “Accounting for Transfers of Financial Assets - an amendment of FASB Statement No. 140,” which eliminates the QSPE concept and requires a transferor of financial assets to:

 

 

§

Consider the transferor’s continuing involvement in assets, limiting the circumstances in which a financial asset should be derecognized when the transferor has not transferred the entire asset to an entity that is not consolidated;

 

§

Account for the transfer as a sale only if an entity transfers an entire financial asset and surrenders control, unless the transfer meets the conditions for a participating interest; and

 

§

Recognize and initially measure at fair value all assets obtained and liabilities incurred as a result of a transfer of financial assets accounted for as a sale.

 

The provisions of FAS 166 are effective as of the beginning of the first fiscal year that begins after November 15, 2009, and for subsequent interim and annual reporting periods.  The Company is currently in the process of determining the impact of adoption of the provisions of FAS 166.

 

*FASB Accounting Standards Codification*

 

In June 2009, the FASB issued FAS No. 168, “The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles - a replacement of FASB Statement No. 162” (“FAS 168”), which confirms that as of July 1, 2009, the “FASB Accounting Standards CodificationTM” (“Codification”) is the single official source of authoritative, nongovernmental US GAAP.  All existing accounting standard documents are superseded, and all other accounting literature not included in the Codification is considered nonauthoritative.

 

14

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

FAS 168 is effective for interim and annual periods ending after September 15, 2009.  While the Codification is not intended to change US GAAP and, thus, not expected to have an effect on the Company’s financial condition, results of operations, or cash flows upon adoption, the Company is reviewing disclosures, as references to US GAAP literature will change.

 

**4.**

**Financial Instruments**

***Fair Value Measurements***

 

US GAAP for fair value measurements defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.

 

***Fair Value Hierarchy***

 

The Company has categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique.

 

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

 

Financial assets and liabilities recorded at fair value on the Condensed Consolidated Balance Sheets are categorized as follows:

 

 

§

Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market.

 

§

Level 2 - Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability.  Level 2 inputs include the following:

 

a)

Quoted prices for similar assets or liabilities in active markets;

 

b)

Quoted prices for identical or similar assets or liabilities in non-active markets;

 

c)

Inputs other than quoted market prices that are observable; and

 

d)

Inputs that are derived principally from or corroborated by observable market data through correlation or other means.

 

15

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

§

Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability.

 

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

**2009**

 

 

 

 

 

 

 

**Level** **1**

 

 

**Level** **2**

 

 

**Level** **3(1)**

 

 

**Total**

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale, including

 

 

 

 

 

 

 

 

 

 

 

 

 

securities pledged

$

2,458.8 

 

$

10,141.4 

 

$

1,824.6 

 

$

14,424.8 

 

Equity securities, available-for-sale

 

225.5 

 

 

-  

 

 

-  

 

 

225.5 

 

Other investments (primarily derivatives)

 

-  

 

 

112.4 

 

 

-  

 

 

112.4 

 

Cash and cash equivalents, short-term

 

 

 

 

 

 

 

 

 

 

 

 

 

investments, and short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

under securities loan agreement

 

1,131.4 

 

 

-  

 

 

-  

 

 

1,131.4 

 

Assets held in separate accounts

 

30,562.4 

 

 

5,344.6 

 

 

-  

 

 

35,907.0 

Total

 

 

 

$

34,378.1 

 

$

15,598.4 

 

$

1,824.6 

 

$

51,801.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product guarantees

$

-  

 

$

-  

 

$

82.0 

 

$

82.0 

 

Other liabilities (primarily derivatives)

 

-  

 

 

316.8 

 

 

65.8 

 

 

382.6 

Total

 

 

 

$

-  

 

$

316.8 

 

$

147.8 

 

$

464.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Level 3 net assets and liabilities accounted for 3.3% of total net assets and liabilities measured at fair value on a recurring 

 

basis.  Excluding separate accounts assets for which the policyholder bears the risk, the Level 3 net assets and liabilities 

 

in relation to total net assets and liabilities measured at fair value on a recurring basis totaled 10.9%.

 

 

 

 

 

16

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

**Level** **1**

 

 

**Level** **2**

 

 

**Level** **3(1)**

 

 

**Total**

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale, including

 

 

 

 

 

 

 

 

 

 

 

 

 

securities pledged

$

1,481.7 

 

$

10,704.3 

 

$

2,291.6 

 

$

14,477.6 

 

Equity securities, available-for-sale

 

240.3 

 

 

-  

 

 

-  

 

 

240.3 

 

Other investments (primarily derivatives)

 

-  

 

 

235.2 

 

 

-  

 

 

235.2 

 

Cash and cash equivalents, short-term

 

 

 

 

 

 

 

 

 

 

 

 

 

investments, and short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

under securities loan agreement

 

729.3 

 

 

-  

 

 

-  

 

 

729.3 

 

Assets held in separate accounts

 

30,547.6 

 

 

5,380.1 

 

 

-  

 

 

35,927.7 

Total

 

 

 

$

32,998.9 

 

$

16,319.6 

 

$

2,291.6 

 

$

51,610.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product guarantees

$

-  

 

$

-  

 

$

220.0 

 

$

220.0 

 

Other liabilities (primarily derivatives)

 

-  

 

 

470.5 

 

 

73.6 

 

 

544.1 

Total

 

 

 

$

-  

 

$

470.5 

 

$

293.6 

 

$

764.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Level 3 net assets and liabilities accounted for 3.9% of total net assets and liabilities measured at fair value on a recurring 

 

basis.  Excluding separate accounts assets for which the policyholder bears the risk, the Level 3 net assets and liabilities 

 

in relation to total net assets and liabilities measured at fair value on a recurring basis totaled 13.4%.

 

 

 

 

***Valuation of Financial Assets and Liabilities***

 

The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in FAS 157.  Valuations are obtained from third party commercial pricing services, brokers, and industry-standard, vendor-provided software that models the value based on market observable inputs.  The valuations obtained from brokers and third party commercial pricing services are non-binding.  The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades, or monitoring of trading volumes.

 

All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values.  There were no material changes to the valuation methods or assumptions used to determine fair values.

 

 

17

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The following valuation methods and assumptions were used by the Company in estimating the fair value of the following financial instruments:

 

*Fixed maturities, available-for-sale*: The fair values for the actively traded marketable bonds are determined based upon the quoted market prices or dealer quotes and are classified as Level 1 assets.  The fair values for marketable bonds without an active market, excluding subprime and Alt-A mortgage-backed securities, are obtained through several commercial pricing services, which provide the estimated fair values, and are classified as Level 2 assets. These services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, broker-dealer quotes, credit quality, issuer spreads, bids, offers and other reference data.

 

Fair values of privately placed bonds are determined using a matrix-based pricing model and are classified as Level 2 assets.  The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer, and cash flow characteristics of the security.  Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees, and the Company’s evaluation of the borrower’s ability to compete in their relevant market.  Using this data, the model generates estimated market values, which the Company considers reflective of the fair value of each privately placed bond.

 

The fair values for certain collateralized mortgage obligations (“CMO-Bs”) are determined by taking the average of broker quotes when more than one broker quote is provided. Given the current illiquidity of the market for these securities, approximately two brokers are able to provide quotes. A few of the CMO-Bs are priced by the originating broker due to the complexity and unique characteristics of the asset.  Due to the lack of corroborating evidence to support a higher level, these bonds are classified as Level 3 assets.

 

Trading activity for the Company’s Residential Mortgage-backed Securities (“RMBS”), particularly subprime and Alt-A mortgage-backed securities, declined during 2008 as a result of the dislocation of the credit markets.  During 2008, the Company continued to obtain pricing information from commercial pricing services and brokers. However, the pricing for subprime and Alt-A mortgage-backed securities did not represent regularly occurring market transactions since the trading activity declined significantly in the second half of 2008 and remained suppressed in 2009.  As a result, the Company concluded in the second half of 2008 that the market for subprime and Alt-A mortgage-backed securities was inactive.  The Company did not change its valuation procedures, which are consistent with those used for Level 2 marketable bonds without an active market, as a result of determiningthat the market was inactive and continues to believe that the market remains largely inactive in 2009.  However, the Company determined that the classification within the valuation hierarchy should be transferred to Level 3 due to market inactivity.

 

18

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Broker quotes and prices obtained from pricing services are reviewed and validated monthly through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades, or monitoring of trading volumes. At June 30, 2009, $1.3 billion and $10.6 billion of a total of $14.4 billion in fixed maturities were valued using unadjusted broker quotes and unadjusted prices obtained from pricing services, respectively, and verified through the review process. The remaining balance in fixed maturities consisted of privately placed bonds valued using a matrix-based pricing model, CMO-Bs valued using average broker quotes, and RMBS valued using a combination of broker quotes and commercial services.

 

Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor, and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, broker quotes are solicited. The Company currently receives approximately two broker quotes for securities for which prices from a third party vendor are unobtainable. When more than one broker quote is obtained, the average of quotes received is used for financial statement valuation. All prices and broker quotes obtained go through the review process described above including valuations for which only one broker quote isobtained. After review, for those instruments where the price is determined to be appropriate, the unadjusted price provided is used for financial statement valuation. If it is determined that the price is questionable, another price may be requested from a different vendor. The internal valuation committee then reviews all prices for the instrument again, along with information from the review, to determine which price best represents “exit price” for the instrument.

 

*Equity securities, available-for-sale*: Fair values of these securities are based upon quoted market price and are classified as Level 1 assets.

 

*Cash and cash equivalents, Short-term investments, and Short-term investments under securities loan agreement*: The carrying amounts for cash reflect the assets’ fair values.  The fair values for cash equivalents and short-term investments are determined based on quoted market prices. These assets are classified as Level 1.

 

*Assets held in separate accounts*: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts.  The underlying investments include mutual funds, short-term investments and cash, and the valuations of which are based upon a quoted market price and are included in Level 1.  Bond valuations are obtained from third party commercial pricing services and brokers and are included in Level 2.

 

19

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

*Other financial instruments reported as assets and liabilities*: The carrying amounts for these financial instruments (primarily derivatives) reflect the fair value of the assets and liabilities.  Derivatives are carried at fair value (on the Condensed Consolidated Balance Sheets), which is determined using the Company’s derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, Standard & Poor’s (“S&P”) 500 Index prices, and London Inter Bank Offered Rates (“LIBOR”), or through values established by third party brokers. Counterparty credit risk is considered and incorporated in the Company’s valuation process through counterparty credit rating requirements and monitoring of overall exposure.  It is the Company’s policy to transactonly with investment grade counterparties with a credit rating of A- or better. These assets and liabilities are classified as Level 2.

 

*Product guarantees*: The Company records reserves for product guarantees, which can be either assets or liabilities, for annuity contracts containing guaranteed credited rates in accordance with US GAAP for derivative instruments and hedging activities.  The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value.  The fair value of the obligation is calculated based on the income approach as described in US GAAP for fair value measurements.  The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts.  The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios andother best estimate assumptions.  Explicit risk margins in the actuarial assumptions underlying valuations are included, as well as an explicit recognition of all nonperformance risks as required by US GAAP. Nonperformance risk for product guarantees contains adjustments to the fair values of these contract liabilities related to the current credit standing of ING and the Company based on credit default swaps with similar term to maturity and priority of payment.  The ING credit default spread is applied to the discount factors for product guarantees in the Company’s valuation model in order to incorporate credit risk into the fair values of these product guarantees.  As of June 30, 2009, the credit spread of ING and the Company changed in relation to prior periods, which resulted in an increase in the value of the derivatives for product guarantees.

 

The following disclosures are made in accordance with the requirements of FAS No. 107, “Disclosures about Fair Value of Financial Instruments” (“FAS 107”).  FAS 107 requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  

 

20

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument.

 

FAS 107 excludes certain financial instruments, including insurance contracts, and all nonfinancial instruments from its disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

 

The following valuation methods and assumptions were used by the Company in estimating the fair value of the following financial instruments:

 

*Mortgage loans on real estate*: The fair values for mortgage loans on real estate are estimated using discounted cash flow analyses and rates currently being offered in the marketplace for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations.

 

*Loan - Dutch State obligation*: The fair value of the State of the Netherlands (the “Dutch State”) loan obligation is estimated utilizing discounted cash flows at market risk-free rates adjusted for credit spreads.

 

*Policy loans*:  The fair value of policy loans is equal to the carrying, or cash surrender, value of the loans.  Policy loans are fully collateralized by the account value of the associated insurance contracts.

 

*Investment contract liabilities (included in Future policy benefits and claim reserves)*:

 

*With a fixed maturity*: Fair value is estimated by discounting cash flows at interest rates currently being offered by, or available to, the Company for similar contracts.

 

*Without a fixed maturity*: Fair value is estimated as the amount payable to the contractowner upon demand.  However, the Company has the right under such contracts to delay payment of withdrawals, which may ultimately result in paying an amount different than that determined to be payable on demand.

 

21

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The carrying values and estimated fair values of certain of the Company’s financial instruments were as follows at June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

 

 

 

 

 

 

 

 

**Carrying**

 

 

**Fair**

 

 

**Carrying**

 

 

**Fair**

 

 

 

 

 

 

 

 

**Value**

 

 

**Value**

 

 

**Value**

 

 

**Value**

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale,

 

 

 

 

 

 

 

 

 

 

 

 

 

including securities pledged

$

14,424.8 

 

$

14,424.8 

 

$

14,477.6 

 

$

14,477.6 

 

Equity securities, available-for-sale

 

225.5 

 

 

225.5 

 

 

240.3 

 

 

240.3 

 

Mortgage loans on real estate

 

2,049.8 

 

 

1,928.1 

 

 

2,107.8 

 

 

2,027.9 

 

Loan - Dutch State obligation

 

749.4 

 

 

720.8 

 

 

-  

 

 

-  

 

Policy loans

 

254.2 

 

 

254.2 

 

 

267.8 

 

 

267.8 

 

Cash, cash equivalents, short-term investments,

 

 

 

 

 

 

 

 

 

 

 

 

 

and short-term investments under securities

 

 

 

 

 

 

 

 

 

 

 

 

 

loan agreement

 

1,131.4 

 

 

1,131.4 

 

 

729.3 

 

 

729.3 

 

Derivatives

 

 

112.4 

 

 

112.4 

 

 

235.2 

 

 

235.2 

 

Assets held in separate accounts

 

35,907.0 

 

 

35,907.0 

 

 

35,927.7 

 

 

35,927.7 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment contract liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

With a fixed maturity

 

1,437.8 

 

 

1,519.5 

 

 

1,529.4 

 

 

1,610.6 

 

 

Without a fixed maturity

 

16,348.2 

 

 

17,296.9 

 

 

15,611.8 

 

 

17,237.9 

 

Product guarantees

 

82.0 

 

 

82.0 

 

 

220.0 

 

 

220.0 

 

Derivatives

 

 

382.6 

 

 

382.6 

 

 

544.1 

 

 

544.1 

 

Fair value estimates are made at a specific point in time, based on available market information and judgments about various financial instruments, such as estimates of timing and amounts of future cash flows.  Such estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized capital gains (losses).  In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments.  In evaluating the Company’s management of interest rate, price, and liquidity risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above.

 

***Level 3 Financial Instruments***

 

The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by US GAAP for fair value measurements), including but not limited to liquidity spreads for investments within markets deemed 

 

22

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

not currently active.  These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an inactive market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair value of financial assets and liabilities classified as Level 3, additional information is presented below, with particular attention addressed to the reserves for product guarantees due to the impact on the Company’s results of operations.

 

The following tables summarize the changes in fair value of the Company’s Level 3 assets and liabilities for the three and six months ended June 30, 2009 and 2008.

 

 

 

 

 

 

 

 

 

 

 

**Fixed** **maturities,**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**available-for-sale**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**including** 

 

 

 

 

 

**Product**

 

 

 

 

 

 

 

 

 

 

 

**securities** **pledged**

 

 

**Derivatives**

 

 

**Guarantees**

 

Balance at April 1, 2009

$

1,940.7 

 

$

(75.0)

 

$

(195.0)

 

 

Capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

10.9 

(1)

 

1.2 

(3)

 

114.2 

(4)

 

 

Net unrealized capital gains (losses)(2)

 

(253.9)

 

 

-  

 

 

-  

 

 

Total net realized and unrealized capital (losses) 

 

 

 

 

 

 

 

 

 

 

 

gains

 

 

 

 

 

(243.0)

 

 

1.2 

 

 

114.2 

 

 

Purchases, sales, issuances, and settlements, net

 

126.9 

 

 

8.0 

 

 

(1.2)

 

Balance at June 30, 2009

$

1,824.6 

 

$

(65.8)

 

$

(82.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at April 1, 2008

$

1,803.0 

 

$

-  

 

$

(146.0)

 

 

Capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

-  

(1)

 

-  

(3)

 

74.2 

(4)

 

 

Net unrealized capital (losses) gains(2)

 

(86.2)

 

 

-  

 

 

-  

 

 

Total net realized and unrealized capital (losses) 

 

 

 

 

 

 

 

 

 

 

 

gains

 

 

 

 

 

(86.2)

 

 

-  

 

 

74.2 

 

 

Purchases, sales, issuances, and settlements, net

 

(108.2)

 

 

-  

 

 

(0.9)

 

Balance at June 30, 2008

$

1,608.6 

 

$

-  

 

$

(72.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

This amount is included in Net realized capital gains (losses) with $(28.0) related to the amortization of book value included in 

 

 

Net investment income on the Condensed Consolidated Statements of Operations.

 

(2)

The amounts in this line are included in Accumulated other comprehensive income (loss) on the Condensed Consolidated 

 

 

Balance Sheets.

 

 

 

 

 

 

 

 

 

 

(3)

This amount is included in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations 

 

 

and contains unrealized gains (losses) on Level 3 derivatives held at June 30, 2009 and 2008.  All gains and losses on 

 

 

these Level 3 assets are classified as realized gains (losses) for the purpose of this disclosure because it is impractical to 

 

 

track realized and unrealized gains (losses) on a contract-by-contract basis. 

 

 

 

 

 

 

 

(4)

This amount is included in Interest credited and other benefits to contractowners on the Condensed Consolidated 

 

 

Statements of Operations. All gains and losses on these Level 3 liabilities are classified as realized gains (losses) for the 

 

 

purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a 

 

 

contract-by-contract basis.

 

 

 

 

 

 

 

 

 

 

23

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

 

 

 

 

 

 

 

 

 

 

**Fixed** **maturities,**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**available-for-sale**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**including** 

 

 

 

 

 

**Product**

 

 

 

 

 

 

 

 

 

 

 

**securities** **pledged**

 

 

**Derivatives**

 

 

**Guarantees**

 

Balance at January 1, 2009

$

2,291.6 

 

$

(73.6)

 

$

(220.0)

 

 

Capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

196.7 

(1)

 

-  

(3)

 

140.4 

(4)

 

 

Net unrealized capital gains (losses)(2)

 

4.6 

 

 

-  

 

 

-  

 

 

Total net realized and unrealized capital (losses) 

 

 

 

 

 

 

 

 

 

 

 

gains

 

 

 

 

 

201.3 

 

 

-  

 

 

140.4 

 

 

 

Purchases, sales, issuances, and settlements, 

 

 

 

 

 

 

 

 

 

 

 

 

net

 

 

 

 

 

(997.4)

 

 

7.8 

 

 

(2.4)

 

 

 

Transfers in to Level 3(5)

 

329.1 

 

 

-  

 

 

-  

 

Balance at June 30, 2009

$

1,824.6 

 

$

(65.8)

 

$

(82.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2008

$

1,737.6 

 

$

-  

 

$

(76.4)

 

 

Capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

Net realized capital gains (losses)

 

0.3 

(1)

 

-  

(3)

 

5.5 

(4)

 

 

Net unrealized capital (losses) gains(2)

 

(44.7)

 

 

-  

 

 

-  

 

 

Total net realized and unrealized capital (losses) 

 

 

 

 

 

 

 

 

 

 

 

gains

 

 

 

 

 

(44.4)

 

 

-  

 

 

5.5 

 

 

 

Purchases, sales, issuances, and settlements, 

 

 

 

 

 

 

 

 

 

 

 

 

net

 

 

 

 

 

(84.6)

 

 

-  

 

 

(1.8)

 

Balance at June 30, 2008

$

1,608.6 

 

$

-  

 

$

(72.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

This amount is included in Net realized capital gains (losses) with $(38.2) related to the amortization of book value included in 

 

 

Net investment income on the Condensed Consolidated Statements of Operations.

 

(2)

The amounts in this line are included in Accumulated other comprehensive income (loss) on the Condensed Consolidated 

 

 

Balance Sheets.

 

 

 

 

 

 

 

 

 

 

(3)

This amount is included in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations 

 

 

and contains unrealized gains (losses) on Level 3 derivatives held at June 30, 2009 and 2008.  All gains and losses on 

 

 

these Level 3 assets are classified as realized gains (losses) for the purpose of this disclosure because it is impractical to 

 

 

track realized and unrealized gains (losses) on a contract-by-contract basis. 

 

 

 

 

 

 

 

(4)

This amount is included in Interest credited and other benefits to contractowners on the Condensed Consolidated 

 

 

Statements of Operations. All gains and losses on these Level 3 liabilities are classified as realized gains (losses) for the 

 

 

purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a 

 

 

contract-by-contract basis.

 

 

 

 

 

 

 

 

 

(5)

Transfers in to Level 3 represent gross transfers in of $329.1 in fixed maturities.

 

 

For the three and six months ended June 30, 2009, the value of the liability related to product guarantees decreased due to an increase in interest rates as well as market values.  As of June 30, 2009, the net realized gains attributable to credit risk were $18.8.  The realized capital gains on Level 3 fixed maturities for the six months ended June 30, 2009, were mainly due to the transfer of 80% interest in the Company’s Alt-A residential mortgage-backed securities to the Dutch State during the first quarter of 2009. The unrealized capital gains on Level 3 fixed maturities for the six months ended June 30, 2009, represent the decrease in unrealized losses due to the decrease in the Level 3 fixed 

 

24

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

maturities portfolio. The unrealized capital losses for the three months ended June 30, 2009, represent the transfer of previously taken impairments from realized to unrealized losses due to the implementation of FSP FAS 115-2 and FAS 124-2.

 

Transfers in to Level 3 represent non-agency prime mortgage-backed securities. During the first quarter of 2009, the Company determined that the inactivity of the market for these securities was attributable to the widening of liquidity spreads and the basis for transfer to Level 3.

 

***Derivative Financial Instruments***

 

See the Organization & Significant Accounting Policies footnote to the Consolidated Financial Statements included in the Company’s 2008 Annual Report on Form 10-K for disclosure regarding the Company’s purpose for entering into derivatives and the policies on valuation and classification of derivatives. In addition, the Company’s derivatives are generally not accounted for using hedge accounting treatment under US GAAP, as the Company has not historically sought hedge accounting treatment.  The Company enters into the following derivatives:

 

*Interest rate swaps*: Interest rate swaps are used to manage the interest rate risk in the Company’s fixed maturity portfolio, as well as the Company’s liabilities. Interest rate swaps represent contracts that require the exchange of cash flows at regular interim periods, typically monthly or quarterly.

 

*Foreign exchange swaps*: Foreign exchange swaps are used to reduce the risk of a change in the value, yield, or cash flow with respect to invested assets.  Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows for U.S. dollar cash flows at regular interim periods, typically quarterly or semi-annually.

 

*Credit default swaps*: Credit default swaps are used to reduce the credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own.  Payments are made to or received from the counterparty at specified intervals and amounts for the purchase or sale of credit protection. In the event of a default on the underlying credit exposure, the Company will either receive an additional payment (purchased credit protection) or will be required to make an additional payment (sold credit protection) equal to par minus recovery value of the swap contract.

 

*Forwards*: Forwards are acquired to hedge the Company’s inverse portfolio against movements in interest rates, particularly mortgage rates.  On the settlement date, the Company will either receive a payment (interest rate drops on owned forwards or interest rate rises on purchased forwards) or will be required to make a payment (interest rate rises on owned forwards or interest rate drops on purchased forwards).

 

25

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

*Swaptions*: Swaptions are used to manage interest rate risk in the Company’s collateralized mortgage obligations portfolio.  Swaptions are contracts that give the Company the option to enter into an interest rate swap at a specific future date.

 

*Futures*: Futures contracts are used to hedge against a decrease in certain equity indices. Such decrease may result in a decrease in variable annuity account values, which would increase the possibility of the Company incurring an expense for guaranteed benefits in excess of account values.  A decrease in variable annuity account values would also result in lower fee income.  A decrease in equity markets may also negatively impact the Company’s investment in equity securities.  The futures income would serve to offset these effects. Futures contracts are also used to hedge against an increase in certain equity indices. Such increase may result in increased payments to contract holders of fixed indexed annuity contracts, and the futures income would serve to offset this increased expense.  The underlying reserve liabilities are valued under US GAAP for fairvalue measurements and US GAAP for derivative instruments and hedging activities.  The change in reserve liabilities is recorded in Interest credited and other benefits to contractowners in the Condensed Consolidated Statements of Operations.

 

*Managed Custody Guarantees*: The Company issued certain credited rate guarantees on externally managed variable bond funds that represent stand alone derivatives.  The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates, and credit ratings/spreads.

 

*Embedded derivatives*: The Company also has investments in certain fixed maturity instruments, and has issued certain retail annuity products, that contain embedded derivatives whose market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short- or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads.

 

26

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The notional amounts and fair values of derivatives were as follows as of June 30, 2009 and December 31, 2008.

 

 

 

 

 

**2009**

 

**2008**

 

 

 

 

**Notional**

 

 

**Asset** **Fair**

 

 

**Liability**

 

**Notional**

 

 

**Asset** **Fair**

 

 

**Liability**

 

 

 

 

**Amount**

 

 

**Fair** **Value**

 

 

**Fair** **Value**

 

**Amount**

 

 

**Fair** **Value**

 

 

**Fair** **Value**

Interest rate swaps(1)

6,387.4 

 

$

94.9 

 

$

(272.5)

 

7,207.2 

 

$

207.6 

 

$

(439.6)

Foreign exchange swaps(1)

199.5 

 

 

-  

 

 

(34.3)

 

199.5 

 

 

3.1 

 

 

(21.7)

Credit default swaps(1)

282.1 

 

 

5.4 

 

 

(73.2)

 

341.1 

 

 

16.1 

 

 

(75.0)

Forwards(1)

219.0 

 

 

2.6 

 

 

-  

 

263.0 

 

 

3.3 

 

 

-  

Swaptions(1)

95.2 

 

 

0.9 

 

 

-  

 

2,521.5 

 

 

5.1 

 

 

-  

Futures(1)

-  

 

 

-  

 

 

-  

 

580.6 

 

 

-  

 

 

(7.8)

Interest rate caps(1)

800.0 

 

 

8.6 

 

 

(2.6)

 

-  

 

 

-  

 

 

-  

Managed custody 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

guarantees(3)

N/A* 

 

 

-  

 

 

(27.0)

 

N/A* 

 

 

-  

 

 

(40.0)

Embedded derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Within securities(2)

N/A* 

 

 

0.1 

 

 

(68.5)

 

N/A* 

 

 

-  

 

 

(123.7)

 

Within retail annuity 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

products(3)

N/A* 

 

 

-  

 

 

(55.0)

 

N/A* 

 

 

-  

 

 

(180.0)

Total

 

7,983.2 

 

$

112.5 

 

$

(533.1)

 

11,112.9 

 

$

235.2 

 

$

(887.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* 

N/A - Not applicable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The fair values of these derivatives are reported in Derivatives or Other liabilities on the Condensed Consolidated 

 

Balance Sheets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

The fair values of embedded derivatives within securities are reported in Fixed maturities, available-for-sale, on the 

 

Condensed Consolidated Balance Sheets with the underlying instrument.

 

 

 

 

 

 

 

(3)

The fair values of embedded derivatives within retail annuity products and managed custody guarantees are reported 

 

in Future policy benefits and claim reserves on the Condensed Consolidated Balance Sheets.

 

 

 

 

 

27

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Net realized gains (losses) on derivatives were as follows for the three and six months ended June 30, 2009 and 2008.

 

 

 

 

 

**For** **the** **Three** **Months**

 

**For** **the** **Six** **Months**

 

 

 

 

**Ended** **June** **30,**

 

**Ended** **June** **30,**

 

 

 

 

 

**2009**

 

 

**2008**

 

 

**2009**

 

 

**2008**

Interest rate swaps(1)

$

(42.0)

 

$

20.4 

 

$

(67.3)

 

$

(66.1)

Foreign exchange swaps(1)

 

(18.8)

 

 

3.1 

 

 

(13.3)

 

 

(9.5)

Credit default swaps(1)

 

(12.8)

 

 

(2.7)

 

 

(9.8)

 

 

(8.1)

Forwards(1)

 

1.2 

 

 

-  

 

 

6.1 

 

 

-  

Futures(1)

 

(109.2)

 

 

-  

 

 

(49.1)

 

 

-  

Swaptions(1)

 

0.6 

 

 

(0.1)

 

 

(2.5)

 

 

(0.2)

Interest rate caps(1)

 

(2.3)

 

 

2.5 

 

 

(2.3)

 

 

2.1 

Managed custody guarantees(2)

 

13.0 

 

 

2.6 

 

 

13.0 

 

 

(16.9)

Embedded derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Within securities(1)

 

3.7 

 

 

(15.9)

 

 

(55.3)

 

 

23.7 

 

Within retail annuity products(2)

 

101.2 

 

 

71.6 

 

 

127.4 

 

 

22.4 

Total

 

$

(65.4)

 

$

81.5 

 

$

(53.1)

 

$

(52.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Changes in value are included in Net realized capital losses on the Condensed Consolidated Statements of Operations.

(2)

Changes in value are included in Interest credited and other benefits to contractowners on the Condensed 

 

Consolidated Statements of Operations.

 

 

 

 

 

 

 

 

 

 

 

 

*Credit Default Swaps*

 

The Company has entered into various credit default swaps to assume credit exposure to certain assets that the Company does not own.  Credit default swaps involve a transfer of credit risk from one party to another in exchange for periodic payments.  These instruments are typically written for a maturity period of five years and do not contain recourse provisions, which would enable the seller to recover from third parties.  The Company has International Swaps and Derivatives Associations, Inc. (“ISDA”) agreements with each counterparty with which it conducts business and tracks the collateral positions for each counterparty.  To the extent cash collateral is received, it is included in Payables under securities loan agreement, including collateral held, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments.  Collateral held is used inaccordance with the Credit Support Annex (“CSA”) to satisfy any obligations. Investment grade bonds of the entity are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets. In the event of a default on the underlying credit exposure, the Company will either receive an additional payment (purchased credit protection) or will be required to make an additional payment (sold credit protection) equal to par minus recovery value of the swap contract.  At June 30, 2009, the fair value of credit default swaps of $5.4 and $73.2 was included in Derivatives and Other liabilities, respectively, on 

 

28

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

the Condensed Consolidated Balance Sheets.  At December 31, 2008, the fair value of credit default swaps of $16.1 and $75.0 was included in Derivatives and Other liabilities, respectively, on the Consolidated Balance Sheets.  As of June 30, 2009 and December 31, 2008, the maximum potential future exposure to the Company on the sale of credit protection under credit default swaps was $120.0 and $161.0, respectively.

 

**5.**

**Investments**

***Fixed Maturities and Equity Securities***

 

Fixed maturities and equity securities, available-for-sale, were as follows as of June 30, 2009.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Gross**

 

 

**Gross**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Unrealized**

 

 

**Unrealized**

 

 

 

 

 

 

 

 

 

 

 

 

 

**Amortized**

 

 

**Capital**

 

 

**Capital**

 

 

**Fair**

 

 

 

 

 

 

 

 

 

 

**Cost**

 

 

**Gains**

 

 

**Losses(2)**

 

 

**Value**

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

$

2,450.3 

 

$

12.8 

 

$

4.3 

 

$

2,458.8 

 

U.S. government agencies and authorities

 

783.4 

 

 

54.2 

 

 

-  

 

 

837.6 

 

State, municipalities, and political subdivisions

 

71.7 

 

 

1.6 

 

 

11.5 

 

 

61.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Public utilities

 

1,046.8 

 

 

21.6 

 

 

45.3 

 

 

1,023.1 

 

 

Other corporate securities

 

3,740.7 

 

 

143.6 

 

 

188.0 

 

 

3,696.3 

 

Total U.S. corporate securities

 

4,787.5 

 

 

165.2 

 

 

233.3 

 

 

4,719.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

299.7 

 

 

11.3 

 

 

25.8 

 

 

285.2 

 

 

Other

 

 

 

 

 

2,164.0 

 

 

48.2 

 

 

114.5 

 

 

2,097.7 

 

Total foreign securities

 

2,463.7 

 

 

59.5 

 

 

140.3 

 

 

2,382.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

2,192.8 

 

 

194.4 

 

 

207.7 

 

 

2,179.5 

 

Commercial mortgage-backed securities

 

1,610.3 

 

 

2.1 

 

 

370.3 

 

 

1,242.1 

 

Other asset-backed securities

 

736.7 

 

 

8.4 

 

 

202.4 

 

 

542.7 

 

Total fixed maturities, including 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities pledged

 

15,096.4 

 

 

498.2 

 

 

1,169.8 

 

 

14,424.8 

 

Less: securities pledged

 

769.7 

 

 

5.8 

 

 

24.4 

 

 

751.1 

Total fixed maturities

 

14,326.7 

 

 

492.4 

 

 

1,145.4 

 

 

13,673.7 

Equity securities

 

 

212.4 

 

 

14.0 

 

 

0.9 

 

 

225.5 

Total investments, available-for-sale

$

14,539.1 

 

$

506.4 

 

$

1,146.3 

 

$

13,899.2 

(1)

Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

(2)

Includes other-than-temporary impairments, which are detailed in the Recently Adopted Accounting Standards

 

and the Investments footnotes

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Fixed maturities and equity securities, available-for-sale, were as follows as of December 31, 2008.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Gross**

 

 

**Gross**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Unrealized**

 

 

**Unrealized**

 

 

 

 

 

 

 

 

 

 

 

 

 

**Amortized**

 

 

**Capital**

 

 

**Capital**

 

 

**Fair**

 

 

 

 

 

 

 

 

 

 

**Cost**

 

 

**Gains**

 

 

**Losses**

 

 

**Value**

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

$

1,391.4 

 

$

84.5 

 

$

0.9 

 

$

1,475.0 

 

U.S. government agencies and authorities

 

797.1 

 

 

77.2 

 

 

1.2 

 

 

873.1 

 

State, municipalities, and political subdivisions

 

72.9 

 

 

0.3 

 

 

17.7 

 

 

55.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Public utilities

 

1,112.4 

 

 

4.4 

 

 

117.6 

 

 

999.2 

 

 

Other corporate securities

 

3,986.2 

 

 

85.6 

 

 

436.6 

 

 

3,635.2 

 

Total U.S. corporate securities

 

5,098.6 

 

 

90.0 

 

 

554.2 

 

 

4,634.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

397.8 

 

 

4.3 

 

 

61.4 

 

 

340.7 

 

 

Other

 

 

 

 

 

2,188.5 

 

 

27.0 

 

 

274.0 

 

 

1,941.5 

 

Total foreign securities

 

2,586.3 

 

 

31.3 

 

 

335.4 

 

 

2,282.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

3,412.6 

 

 

153.6 

 

 

266.7 

 

 

3,299.5 

 

Commercial mortgage-backed securities

 

1,604.0 

 

 

0.1 

 

 

370.5 

 

 

1,233.6 

 

Other asset-backed securities

 

830.2 

 

 

9.0 

 

 

214.9 

 

 

624.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed maturities, including 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities pledged

 

15,793.1 

 

 

446.0 

 

 

1,761.5 

 

 

14,477.6 

 

Less: securities pledged

 

1,248.8 

 

 

78.9 

 

 

7.8 

 

 

1,319.9 

Total fixed maturities

 

14,544.3 

 

 

367.1 

 

 

1,753.7 

 

 

13,157.7 

Equity securities

 

 

247.7 

 

 

1.0 

 

 

8.4 

 

 

240.3 

Total investments, available-for-sale

$

14,792.0 

 

$

368.1 

 

$

1,762.1 

 

$

13,398.0 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2009 and December 31, 2008, net unrealized losses were $658.5 and $1,322.9, respectively, on total fixed maturities, including securities pledged to creditors, and equity securities.  During 2008, as a result of the current economic environment, which resulted in significant losses on investments supporting experience-rated contracts, the Company reflected all unrealized losses in Shareholder’s equity rather than Future policy benefits and claims reserves. At June 30, 2009, there were no net unrealized capital losses allocated to experience-rated contracts.

 

30

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The amortized cost and fair value of total fixed maturities as of June 30, 2009, are shown below by contractual maturity.  Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid.

 

 

 

 

**Amortized**

 

 

**Fair**

 

 

 

**Cost**

 

 

**Value**

Due to mature:

 

 

 

 

 

 

One year or less

$

305.4 

 

$

302.7 

 

After one year through five years

 

3,741.6 

 

 

3,792.1 

 

After five years through ten years

 

3,870.9 

 

 

3,869.9 

 

After ten years

 

2,638.7 

 

 

2,495.8 

 

Mortgage-backed securities

 

3,803.1 

 

 

3,421.6 

 

Other asset-backed securities

 

736.7 

 

 

542.7 

Less: securities pledged

 

769.7 

 

 

751.1 

Fixed maturities, excluding securities pledged

$

14,326.7 

 

$

13,673.7 

 

The Company did not have any investments in a single issuer, other than obligations of the U.S. government and government agencies, with a carrying value in excess of 10% of the Company’s Shareholder’s equity at June 30, 2009 or December 31, 2008.

 

The Company invests in various categories of collateralized mortgage obligations (“CMOs”), including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults.  The principal risks inherent in holding CMOs are prepayment and extension risks related to dramatic decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated.  At June 30, 2009 and December 31, 2008, approximately 22.6% and 15.7%, respectively, of the Company’s CMO holdings were invested in those types of CMOs which are subject to more prepayment and extension risk than traditional CMOs, such as interest-only or principal-only strips.

 

*Transfer of Alt-A RMBS Participation Interest*

 

On January 26, 2009, ING  announced it reached an agreement, for itself and on behalf of certain ING affiliates including the Company, with the Dutch State on an Illiquid Assets Back-up Facility (the “Back-up Facility”) covering 80% of ING’s Alt-A residential mortgage-backed securities (“Alt-A RMBS”).  Under the terms of the Back-up Facility, a full credit risk transfer to the Dutch State was realized on 80% of ING’s Alt-A RMBS owned by ING Bank, FSB and ING affiliates within ING Insurance Americas with a book value of $36.0 billion portfolio, including book value of $802.5 of the Alt-A RMBS portfolio owned by the Company (with respect to the Company’s portfolio, the “Designated Securities Portfolio”) (the “ING-Dutch State Transaction”).  As a result of the risk transfer, the Dutch State will participate in 80% of any results of the ING Alt-A 

 

31

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

RMBS portfolio.  The risk transfer to the Dutch State took place at a discount of approximately 10% of par value.  In addition, under the Back-up Facility, other fees were paid both by the Company and the Dutch State.  Each ING company participating in the ING-Dutch State Transaction, including the Company remains the legal owner of 100% of its Alt-A RMBS portfolio and will remain exposed to 20% of any results on the portfolio.  The ING-Dutch State Transaction closed on March 31, 2009, with the affiliate participation conveyance and risk transfer to the Dutch State described in the succeeding paragraph taking effect as of January 26, 2009.

 

In order to implement that portion of the ING-Dutch State Transaction related to the Company’s Designated Securities Portfolio, the Company entered into a  participation agreement with its affiliates, ING Support Holding B.V. (“ING Support Holding”) and ING pursuant to which the Company conveyed to ING Support Holding an 80% participation interest in its Designated Securities Portfolio and will pay a periodic transaction fee, and received, as consideration for the participation, an assignment by ING Support Holding of its right to receive payments from the Dutch State under the Illiquid  Assets Back-Up Facility related to the Company’s Designated Securities Portfolio among, ING, ING Support Holding and the Dutch State (the “Company Back-Up Facility”).  Under the Company Back-Up Facility, the Dutch State is obligated to pay certain periodic fees and makecertain periodic payments with respect to the Company’s Designated Securities Portfolio, and ING Support Holding is obligated to pay a periodic guarantee fee and make periodic payments to the Dutch State equal to the distributions made with respect to the 80% participation interest in the Company’s Designated Securities Portfolio.  The Dutch State payment obligation to the Company under the Back-Up Facility is accounted for as a loan receivable for US GAAP and is reported in Loan - Dutch State obligation on the Condensed Consolidated Balance Sheets.

 

Upon the closing of the transaction on March 31, 2009, the Company recognized a gain of $206.2, which was reported in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations.

 

In a second transaction, known as the Step 1 Cash Transfer, a portion of the Company’s Alt-A RMBS which had a book value of $4.2 was sold for cash to an affiliate, Lion II Custom Investments LLC (“Lion II”).  Immediately thereafter, Lion II sold to ING Direct Bancorp the purchased securities (the “Step 2 Cash Transfer”). Contemporaneous with the Step 2 Cash Transfer, ING Direct Bancorp included such purchased securities as part of its Alt-A RMBS portfolio sale to the Dutch State.  The Step 1 Cash Transfer closed on March 31, 2009, and the Company recognized a gain of $0.3 contemporaneous with the closing of the ING-Dutch State Transaction, which was reported in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations.

 

32

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

*Repurchase Agreements*

 

The Company engages in dollar repurchase agreements (“dollar rolls”) and repurchase agreements to increase its return on investments and improve liquidity.  These transactions involve a sale of securities and an agreement to repurchase substantially the same securities as those sold.  Company policies typically require a minimum of 95% of the fair value of securities pledged under dollar rolls and repurchase agreement transactions to be maintained as collateral.  Cash collateral received is invested in fixed maturities, and the offsetting collateral liability is included in Borrowed money on the Consolidated Balance Sheets.  At June 30, 2009 and December 31, 2008, the carrying value of the securities pledged in dollar rolls and repurchase agreement transactions was $48.9 and $657.2, respectively, and is included in Securities pledged on the Consolidated Balance Sheets. Therepurchase obligation related to dollar rolls and repurchase agreements, including accrued interest, totaled $48.5 and $615.3 at June 30, 2009 and December 31, 2008, respectively, and is included in Borrowed money on the Consolidated Balance Sheets.

 

In certain instances, fair value of collateral received by the Company may fall below 95% of the fair value of securities pledged under dollar rolls and repurchase agreement transactions. The Company monitors the fair value of collateral for material declines below the 95% threshold and if deemed necessary, requires additional collateral to restore collateral maintained to 95% of the fair value of securities pledged.

 

The Company also enters into reverse repurchase agreements.  These transactions involve a purchase of securities and an agreement to sell substantially the same securities as those purchased.  Company policies require a minimum of 102% of the fair value of securities pledged under reverse repurchase agreements to be pledged as collateral.  At June 30, 2009 and December 31, 2008, the Company did not have reverse repurchase agreements.  Reverse purchase agreements would be included in Cash and cash equivalents on the Consolidated Balance Sheets.

 

The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract.  The Company’s exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, an amount that was immaterial at June 30, 2009.  The Company believes the counterparties to the dollar roll, repurchase, and reverse repurchase agreements are financially responsible and that the counterparty risk is minimal.

 

33

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

*Securities Lending*

 

The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time.  Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities.  The collateral is deposited by the borrower with a lending agent, and retained and invested by the lending agent according to the Company’s guidelines to generate additional income.  The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. At June 30, 2009 and December 31, 2008, the fair value of loaned securities was $702.2 and $662.7, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets.

 

*Variable Interest Entities*

 

The Company holds certain VIEs for investment purposes.  VIEs may be in the form of private placement securities, structured securities, securitization transactions, or limited partnerships. The Company has reviewed each of its holdings under current guidance and determined that consolidation of these investments in the Company’s financial statements is not required, as the Company is not the primary beneficiary for any of the investments in VIEs. Rather, the VIEs are accounted for using the cost or equity method of accounting. In addition, the Company may be exposed to the loss of asset management fees it receives for some of these structures. The carrying value of investments in VIEs of $0.1 are included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income on theCondensed Consolidated Statements of Operations.

 

34

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

*Unrealized Capital Losses*

 

Unrealized capital losses in fixed maturities, including securities pledged to creditors, for Investment Grade (“IG”) and Below Investment Grade (“BIG”) securities by duration were as follows as of June 30, 2009 and December 31, 2008.

 

 

 

 

**2009**

 

 

**2008**

 

 

 

 

 

**%** **of** **IG**

 

 

 

 

**%** **of** **IG**

 

 

 

 

**%** **of** **IG**

 

 

 

 

**%** **of** **IG**

 

 

 

**IG**

 

**and** **BIG**

 

 

**BIG**

 

**and** **BIG**

 

 

**IG**

 

**and** **BIG**

 

**BIG**

 

**and** **BIG**

Less than six months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

$

116.7 

 

10.1%

 

$

34.4 

 

2.9%

 

$

169.3 

 

9.6%

 

$

40.2 

 

2.3%

More than six months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and less than twelve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

months below 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

amortized cost

 

90.0 

 

7.7%

 

 

25.2 

 

2.1%

 

 

511.9 

 

29.1%

 

 

58.3 

 

3.3%

More than twelve months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

827.4 

 

70.7%

 

 

76.1 

 

6.5%

 

 

921.5 

 

52.3%

 

 

60.3 

 

3.4%

Total unrealized capital loss

$

1,034.1 

 

88.5%

 

$

135.7 

 

11.5%

 

$

1,602.7 

 

91.0%

 

$

158.8 

 

9.0%

 

 

35

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Unrealized capital losses in fixed maturities as of June 30, 2009 and December 31, 2008, were primarily related to the effects of interest rate movement or spread widening on mortgage and other asset-backed securities.  Mortgage and other asset-backed securities include U.S. government-backed securities, principal protected securities, and structured securities, which did not have an adverse change in cash flows.  The following tables summarize the unrealized capital losses by duration and reason, along with the fair value of fixed maturities, including securities pledged to creditors, in unrealized capital loss positions as of June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

 

 

 

 

 

**More** **Than**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Less** **Than**

 

 

**Six** **Months**

 

 

**More** **Than**

 

 

 

 

 

 

 

 

 

 

 

 

**Six** **Months** 

 

 

**and** **less** **than**

 

 

**Twelve** **Months**

 

 

 

 

 

 

 

 

 

 

 

 

**Below**

 

 

**Twelve** **Months**

 

 

**Below**

 

 

 

 

 

 

 

 

 

 

 

 

**Amortized**

 

 

**Below**

 

 

**Amortized**

 

 

 

**2009**

 

 

 

 

 

 

**Cost**

 

 

**Amortized** **Cost**

 

 

**Cost**

 

 

**Total**

Interest rate or spread widening

$

73.4 

 

$

50.2 

 

$

265.8 

 

$

389.4 

Mortgage and other asset-backed 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

 

77.7 

 

 

65.0 

 

 

637.7 

 

 

780.4 

Total unrealized capital loss

$

151.1 

 

$

115.2 

 

$

903.5 

 

$

1,169.8 

Fair value

 

 

 

$

748.7 

 

$

1,084.8 

 

$

4,689.6 

 

$

6,523.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate or spread widening

$

144.2 

 

$

381.7 

 

$

383.5 

 

$

909.4 

Mortgage and other asset-backed 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

 

65.3 

 

 

188.5 

 

 

598.3 

 

 

852.1 

Total unrealized capital loss

$

209.5 

 

$

570.2 

 

$

981.8 

 

$

1,761.5 

Fair value

 

 

 

$

2,999.6 

 

$

3,446.7 

 

$

2,964.2 

 

$

9,410.5 

 

 

36

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Unrealized capital losses, along with the fair value of fixed maturities, including securities pledged to creditors, by market sector and duration were as follows as of June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

 

**More** **Than** **Six**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Months** **and** **Less** **Than**

 

**More** **Than** **Twelve**

 

 

 

 

 

 

 

 

**Less** **Than** **Six** **Months**

 

**Twelve** **Months**

 

**Months** **Below**

 

**Total** **Unrealized**

 

 

**Below** **Amortized** **Cost**

 

**Below** **Amortized** **Cost**

 

**Amortized** **Cost**

 

**Capital** **Loss**

 

 

**Fair** **Value**

 

**Loss**

 

**Fair** **Value**

 

**Loss**

 

**Fair** **Value**

 

**Loss**

 

**Fair** **Value**

 

**Loss**

**2009**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

$

139.4 

 

$

0.5 

 

$

452.5 

 

$

3.8 

 

$

-  

 

$

-  

 

$

591.9 

 

$

4.3 

U.S. government 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

agencies and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

authorities

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

U.S. corporate, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

state, and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

333.8 

 

 

42.7 

 

 

417.7 

 

 

32.2 

 

 

1,517.8 

 

 

169.9 

 

 

2,269.3 

 

 

244.8 

Foreign

 

109.7 

 

 

30.2 

 

 

141.7 

 

 

14.2 

 

 

975.4 

 

 

95.9 

 

 

1,226.8 

 

 

140.3 

Residential 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

117.0 

 

 

17.6 

 

 

43.9 

 

 

11.8 

 

 

761.3 

 

 

178.3 

 

 

922.2 

 

 

207.7 

Commercial 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

19.5 

 

 

45.4 

 

 

24.3 

 

 

44.0 

 

 

1,108.3 

 

 

280.9 

 

 

1,152.1 

 

 

370.3 

Other asset-backed

 

29.3 

 

 

14.7 

 

 

4.7 

 

 

9.2 

 

 

326.8 

 

 

178.5 

 

 

360.8 

 

 

202.4 

Total unrealized 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

capital loss

$

748.7 

 

$

151.1 

 

$

1,084.8 

 

$

115.2 

 

$

4,689.6 

 

$

903.5 

 

$

6,523.1 

 

$

1,169.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

$

482.8 

 

$

0.9 

 

$

-  

 

$

-  

 

$

-  

 

$

-  

 

$

482.8 

 

$

0.9 

U.S. government 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

agencies and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

authorities

 

6.9 

 

 

0.5 

 

 

5.7 

 

 

0.7 

 

 

-  

 

 

-  

 

 

12.6 

 

 

1.2 

U.S. corporate, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

state, and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

1,178.1 

 

 

92.2 

 

 

1,528.0 

 

 

244.1 

 

 

686.9 

 

 

235.6 

 

 

3,393.0 

 

 

571.9 

Foreign

 

493.0 

 

 

50.6 

 

 

859.9 

 

 

136.9 

 

 

489.8 

 

 

147.9 

 

 

1,842.7 

 

 

335.4 

Residential 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

664.0 

 

 

48.7 

 

 

610.9 

 

 

94.0 

 

 

646.6 

 

 

124.0 

 

 

1,921.5 

 

 

266.7 

Commercial 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

86.8 

 

 

2.9 

 

 

285.4 

 

 

69.5 

 

 

821.5 

 

 

298.1 

 

 

1,193.7 

 

 

370.5 

Other asset-backed

 

88.0 

 

 

13.7 

 

 

156.8 

 

 

25.0 

 

 

319.4 

 

 

176.2 

 

 

564.2 

 

 

214.9 

Total unrealized 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

capital loss

$

2,999.6 

 

$

209.5 

 

$

3,446.7 

 

$

570.2 

 

$

2,964.2 

 

$

981.8 

 

$

9,410.5 

 

$

1,761.5 

 

 

37

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities was 83.7% of the average book value as of June 30, 2009.  In addition, this category includes 1,724 securities, which have an average quality rating of A+.  

 

Unrealized capital losses in fixed maturities, including securities pledged to creditors, for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows for June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

**Amortized** **Cost**

 

 

**Unrealized** **Capital** **Loss**

 

**Number** **of** **Securities**

 

 

 

 

 

 

 

**<** **20%**

 

 

**>** **20%**

 

 

**<** **20%**

 

 

**>** **20%**

 

**<** **20%**

 

**>** **20%**

**2009**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than six months below

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

amortized cost

$

620.7 

 

$

279.1 

 

$

13.2 

 

$

137.9 

 

166 

 

110 

More than six months and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

less than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

1,051.2 

 

 

148.8 

 

 

31.2 

 

 

84.0 

 

399 

 

89 

More than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

3,787.0 

 

 

1,806.1 

 

 

266.8 

 

 

636.7 

 

1,083 

 

662 

Total

 

 

 

$

5,458.9 

 

$

2,234.0 

 

$

311.2 

 

$

858.6 

 

1,648 

 

861 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than six months below

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

amortized cost

$

2,860.5 

 

$

348.6 

 

$

118.7 

 

$

90.8 

 

845 

 

303 

More than six months and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

less than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

2,618.0 

 

 

1,398.9 

 

 

199.5 

 

 

370.7 

 

791 

 

618 

More than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

1,541.4 

 

 

2,404.6 

 

 

141.8 

 

 

840.0 

 

412 

 

831 

Total

 

 

 

$

7,019.9 

 

$

4,152.1 

 

$

460.0 

 

$

1,301.5 

 

2,048 

 

1,752 

 

 

38

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Unrealized capital losses in fixed maturities, including securities pledged to creditors, by market sector for instances in which fair value decline below amortized cost by greater than or less than 20% were as follows for June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

**Amortized** **Cost**

 

 

**Unrealized** **Capital** **Loss**

 

**Number** **of** **Securities**

 

 

 

 

 

 

 

**<** **20%**

 

 

**>** **20%**

 

 

**<** **20%**

 

 

**>** **20%**

 

**<** **20%**

 

**>** **20%**

**2009**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

$

596.2 

 

$

-  

 

$

4.3 

 

$

-  

 

18 

 

- 

U.S. government agencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and authorities

 

-  

 

 

-  

 

 

-  

 

 

-  

 

- 

 

- 

U.S. corporate, state and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

2,032.5 

 

 

481.6 

 

 

100.9 

 

 

143.9 

 

811 

 

219 

Foreign

 

 

 

1,125.9 

 

 

241.2 

 

 

59.0 

 

 

81.3 

 

512 

 

261 

Residential mortgage-backed

 

678.2 

 

 

451.7 

 

 

59.6 

 

 

148.1 

 

131 

 

171 

Commercial mortgage-backed

 

812.0 

 

 

710.4 

 

 

71.3 

 

 

299.0 

 

122 

 

81 

Other asset-backed

 

214.1 

 

 

349.1 

 

 

16.1 

 

 

186.3 

 

54 

 

129 

Total

 

 

 

$

5,458.9 

 

$

2,234.0 

 

$

311.2 

 

$

858.6 

 

1,648 

 

861 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

$

483.7 

 

$

-  

 

$

0.9 

 

$

-  

 

15 

 

- 

U.S. government agencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and authorities

 

13.8 

 

 

-  

 

 

1.2 

 

 

-  

 

16 

 

- 

U.S. corporate, state and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

2,659.5 

 

 

1,305.4 

 

 

178.9 

 

 

393.0 

 

1,004 

 

801 

Foreign

 

 

 

1,392.8 

 

 

785.3 

 

 

102.6 

 

 

232.8 

 

572 

 

572 

Residential mortgage-backed

 

1,612.2 

 

 

576.0 

 

 

100.4 

 

 

166.3 

 

252 

 

109 

Commercial mortgage-backed

 

533.9 

 

 

1,030.3 

 

 

51.0 

 

 

319.5 

 

93 

 

129 

Other asset-backed

 

324.0 

 

 

455.1 

 

 

25.0 

 

 

189.9 

 

96 

 

141 

Total

 

 

 

$

7,019.9 

 

$

4,152.1 

 

$

460.0 

 

$

1,301.5 

 

2,048 

 

1,752 

 

During the six months ended June 30, 2009, unrealized capital losses on fixed maturities decreased by $591.7 primarily due to a reduction in credit spreads and the derecognition of 80% of the Alt-A RMBS securities owned by the Company as a result of the Alt-A transaction with the Dutch State.

 

At June 30, 2009 and December 31, 2008, the Company held 9 and 8 fixed maturities, respectively, with unrealized capital losses in excess of $10 million.  The unrealized capital losses on these fixed maturities equaled $122.1, or 10.4% of the total unrealized capital losses, as of June 30, 2009.  The unrealized capital losses on these fixed maturities equaled $206.3, or 11.7% of the total unrealized capital losses, as of December 31, 2008. 

 

39

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

All securities with fair values less than amortized cost are included in the Company's other-than-temporary impairment analysis, and impairments were recognized as disclosed in "Other-Than-Temporary Impairments," which follows this section. Management determined that no additional recognition of the unrealized loss as an other-than-temporary impairment was necessary.

 

*Other-Than-Temporary Impairments*

 

The Company analyzes its general account investments to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. Factors considered in this analysis include, but are not limited to, the length of time and the extent to which the fair value has been less than amortized cost, the issuer’s financial condition and near-term prospects, future economic conditions and market forecasts, interest rate changes, and changes in ratings of the security.

 

When assessing the Company’s intent to sell a security or if it is more likely than not it will be required to sell a security before recovery of its cost basis, management evaluates facts and circumstances such as, but not limited to, decisions to rebalance our investment portfolio and sales of investments to meet cash flow needs.

 

When the Company has determined it has the intent to sell or if it is more likely than not that it will be required to sell a security before recovery of its amortized cost basis and the fair value has declined below amortized cost (“intent impairment”) the individual security is written down from amortized cost to fair value and a corresponding charge is recorded in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations as an other-than-temporary impairment ("OTTI"). If the Company does not intend to sell the security nor is it more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI is bifurcated into the amount representing the present value of the decrease in cash flows expected to be collected (“credit impairment”) and the amount related to other factors(“noncredit impairment”).  The credit impairment is recorded in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations.  The noncredit impairment is recorded in Other comprehensive income (loss) on the Condensed Consolidated Balance Sheets in accordance with the requirements of FSP FAS 115-2 and FAS 124-2.

 

In order to determine the amount of the OTTI of a security that is considered a credit impairment, we estimate the recovery value by performing a discounted cash flow analysis based upon the best estimate of expected future cash flows, discounted at the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield for a fixed rate security or current coupon yield for a floating rate security.

 

40

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The following tables identify the Company’s credit and intent impairments included in the Condensed Consolidated Statements of Operations, excluding noncredit impairments included in Other comprehensive income (loss), by type for the three and six months ended June 30, 2009 and 2008.

 

 

 

**Three** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

118.8 

 

13 

 

$

-  

 

- 

U.S. corporate

 

10.5 

 

13 

 

 

18.3 

 

34 

Foreign(1)

 

18.5 

 

7 

 

 

5.1 

 

8 

Residential mortgage-backed

 

8.6 

 

12 

 

 

19.6 

 

12 

Other asset-backed

 

7.5 

 

7 

 

 

13.5 

 

12 

Limited partnerships

 

4.3 

 

2 

 

 

1.1 

 

1 

Equity securities

 

3.0 

 

2 

 

 

3.7 

 

2 

Mortgage loans on real estate

 

-  

 

- 

 

 

2.4 

 

1 

Total

$

171.2 

 

56 

 

$

63.7 

 

70 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

151.9 

 

18 

 

$

-  

 

- 

U.S. corporate

 

34.0 

 

51 

 

 

36.5 

 

75 

Foreign(1)

 

44.8 

 

29 

 

 

15.2 

 

27 

Residential mortgage-backed

 

44.4 

 

55 

 

 

33.4 

 

21 

Other asset-backed

 

22.0 

 

22 

 

 

20.9 

 

22 

Limited partnerships

 

15.0 

 

16 

 

 

1.1 

 

1 

Equity securities

 

18.5 

 

8 

 

 

3.7 

 

2 

Mortgage loans on real estate

 

-  

 

- 

 

 

2.4 

 

1 

Total

$

330.6 

 

199 

 

$

113.2 

 

149 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

The above schedules include $26.6 and $73.8 for the three and six months ended June 30, 2009, respectively, and $51.8 and $74.0 for the three and six months ended June 30, 2008, respectively, in other-than-temporary write-downs related to credit impairments, which are recognized in earnings. The remaining write-downs reflected in the schedules above are related to intent impairments.

 

41

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The following tables summarize these intent impairments, which are also recognized in earnings, by type for the three and six months ended June 30, 2009 and 2008.

 

 

 

**Three** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

118.8 

 

13 

 

$

-  

 

- 

U.S. corporate

 

8.7 

 

12 

 

 

8.9 

 

32 

Foreign(1)

 

17.1 

 

6 

 

 

3.0 

 

6 

Total

$

144.6 

 

31 

 

$

11.9 

 

38 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

151.9 

 

18 

 

$

-  

 

- 

U.S. corporate

 

25.2 

 

35 

 

 

24.3 

 

64 

Foreign(1)

 

43.4 

 

28 

 

 

13.1 

 

25 

Residential mortgage-backed

 

22.5 

 

8 

 

 

1.8 

 

1 

Other asset-backed

 

13.8 

 

6 

 

 

-  

 

- 

Total

$

256.8 

 

95 

 

$

39.2 

 

90 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities or cost for equity securities.  In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security.

 

42

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

The following table identifies the noncredit impairments recognized in Other comprehensive income (loss) by type for the three and six months ended June 30, 2009. No difference exists between the three and six months ended June 30, 2009 figures, as this treatment was effective April 1, 2009, with the implementation of FSP FAS 115-2 and FAS 124-2.

 

 

 

 

 

 

 

**Three** **and** **Six** **Months** 

 

 

 

 

 

 

**Ended** **June** **30,** **2009**

 

 

 

 

 

 

 

 

 

**No.** **of**

 

 

 

 

 

 

 

**Impairment**

 

**Securities**

U.S. corporate

$

3.6 

 

3 

Foreign(1)

 

 

0.1 

 

3 

Residential mortgage-backed

 

10.2 

 

14 

Other asset-backed

 

0.4 

 

6 

Total

 

 

 

$

14.3 

 

26 

(1)

Primarily U.S. dollar denominated.

 

 

 

 

 

The remaining fair value of fixed maturities with other-than-temporary impairments as of June 30, 2009 and 2008 was $2,687.8 and $1,177.4, respectively.

 

The following table identifies the amount of credit impairments on fixed maturities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in Other comprehensive income (loss), and the corresponding changes in such amounts.

 

Balance at April 1, 2009(1)

$

25.1 

 

Reduction for securities which matured, paid down, prepaid or were sold 

 

 

 

 

during the period

 

(0.3)

 

Additional impairments recognized in the current period on securities not 

 

 

 

 

previously impaired

 

0.9 

 

Additional credit loss impairments recognized in the current period on securities 

 

 

 

 

previously impaired

 

4.0 

Balance at June 30, 2009

$

29.7 

(1)

Represents credit losses remaining in Retained Earnings related to the adoption of FSP FAS 115-2 and FAS 124-2.

 

*Net Realized Capital Gains (Losses)*

 

Net realized capital gains (losses) are comprised of the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to credit-related and intent-related other-than-temporary impairment of investments and changes in fair value of derivatives.  The cost of the investments on disposal is determined based on specific identification of securities.  Net realized capital gains (losses) on investments were as follows for the three and six months end June 30, 2009 and 2008.

 

43

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

 

 

 

 

 

 

 

 

 

**Three** **Months** **Ended** **June** **30,**

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Fixed maturities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(163.9) for 2009

 

$

(122.8)

 

$

(97.3)

Equity securities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(3.0) for 2009

 

 

1.7 

 

 

(3.3)

Derivatives

 

 

 

(183.3)

 

 

23.2 

Other investments including net OTTI of $(4.3) for 2009

 

 

2.2 

 

 

(2.8)

Less: allocation to experience-rated contracts, including 

 

 

 

 

 

 

 

net OTTI of $(93.3) for 2009

 

 

(65.4)

 

 

12.8 

Net realized capital losses

 

$

(236.8)

 

$

(93.0)

After-tax net realized capital losses

 

$

(153.9)

 

$

(60.5)

 

 

 

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,**

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Fixed maturities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(297.1) for 2009

 

$

(99.7)

 

$

(98.1)

Equity securities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(18.5) for 2009

 

 

(13.5)

 

 

(5.1)

Derivatives

 

 

 

(138.2)

 

 

(81.8)

Other investments including net OTTI of $(15.0) for 2009

 

 

(11.1)

 

 

(3.0)

Less: allocation to experience-rated contracts, including 

 

 

 

 

 

 

 

net OTTI of $(169.8) for 2009

 

 

(78.2)

 

 

(35.1)

Net realized capital losses

 

$

(184.3)

 

$

(152.9)

After-tax net realized capital losses

 

$

(119.8)

 

$

(99.4)

 

The increase in *Total net realized capital losses*for the three and six months ended June 30, 2009, was primarily due to futures used to hedge fee income on variable products. The futures were in a short position, and as such, their fair value decreased when equity markets rose during 2009. The Company did not have exposure to futures during the first half of 2008. The year-to-date losses were partially offset by a gain of $206.2 recognized in the first quarter of 2009 on the transfer of an 80% interest in the Company’s Alt-A residential mortgage-backed securities to the Dutch State.

 

Net realized capital gains (losses) allocated to experience-rated contracts are deducted from Net realized capital gains (losses), with an offsetting amount reflected in Future policy benefits and claims reserves on the Condensed Consolidated Balance Sheets.  During 2008 and continuing in 2009, as a result of the economic environment, which resulted in significant realized losses associated with experience-rated contracts, the Company accelerated amortization of realized losses rather than reflecting these losses in 

 

44

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Future policy benefits and claims reserves.  For the six months ended June 30, 2009 and 2008, the Company fully amortized $78.2 and $0, respectively, of net unamortized realized capital losses allocated to experience-rated contractowners, which are reflected in Interest credited and other benefits to contractowners in the Condensed Consolidated Statements of Operations.

 

Proceeds from the sale of fixed maturities and equity securities, available-for-sale, and the related gross realized gains and losses, excluding those related to experience-related contracts, as appropriate, were as follows for the periods ended June 30, 2009 and 2008.

 

 

 

**2009**

 

 

**2008**

Proceeds on sales

$

920.3 

 

$

2,709.9 

Gross gains

 

360.5 

 

 

30.2 

Gross losses

 

123.5 

 

 

58.6 

 

 

**6.**

**Deferred Policy Acquisition Costs and Value of Business Acquired**

Activity within DAC was as follows for the six months ended June 30, 2009 and 2008.

 

 

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Balance at January 1

 

$

865.5 

 

$

728.6 

 

Deferrals of commissions and expenses

 

 

58.2 

 

 

91.7 

 

Amortization:

 

 

 

 

 

 

 

 

 

Amortization

 

 

8.4 

 

 

(101.0)

 

 

Interest accrued at 2% to 7%

 

 

27.9 

 

 

24.8 

 

Net amortization included in Condensed Consolidated 

 

 

 

 

 

 

 

 

Statements of Operations

 

 

36.3 

 

 

(76.2)

 

Change in unrealized capital (gains) losses on

 

 

 

 

 

 

 

 

available-for-sale securities

 

 

(82.2)

 

 

3.0 

Balance at June 30

 

$

877.8 

 

$

747.1 

 

 

45

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Activity within value of business acquired (“VOBA”) was as follows for the six months ended June 30, 2009 and 2008.

 

 

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Balance at January 1

 

$

1,832.5 

 

$

1,253.2 

 

Deferrals of commissions and expenses

 

 

16.2 

 

 

17.3 

 

Amortization:

 

 

 

 

 

 

 

 

 

Amortization

 

 

(133.3)

 

 

(122.6)

 

 

Interest accrued at 3% to 7%

 

 

35.6 

 

 

39.5 

 

Net amortization included in Condensed Consolidated 

 

 

 

 

 

 

 

 

Statements of Operations

 

 

(97.7)

 

 

(83.1)

 

Change in unrealized capital (gains) losses on

 

 

 

 

 

 

 

 

available-for-sale securities

 

 

(340.4)

 

 

7.3 

Balance at June 30

 

$

1,410.6 

 

$

1,194.7 

 

During the six months ended June 30, 2009, the Company revised and unlocked the assumptions related to future mortality and expense changes and mutual fund revenue, leading to lower estimated future gross profits.  These revisions resulted in an $43.5 increase in amortization of DAC and VOBA.

 

During the six months ended June 30, 2008, the Company recognized an increase in amortization of DAC and VOBA of $66.0 due to the unlocking resulting from the revisions of certain assumptions used in the estimation of gross profits and unfavorable equity market performance.

 

**7.**

**Capital Contributions and Dividends**

During the six months ended June 30, 2009, ILIAC received a $365.0 capital contribution from its Parent. During the six months ended June 30, 2008, ILIAC did not receive any capital contributions from its Parent.

 

During the six months ended June 30, 2009 and 2008, ILIAC did not pay any dividends on its common stock to its Parent.

 

46

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

**8.**

**Income Taxes**

The Company’s effective tax rates for the three months ended June 30, 2009 and 2008 were (1,210.8)% and 7.6%, respectively.  The effective tax rate for the six months ended June 30, 2009 and 2008 were (214.2)% and 70.8%, respectively.  The effective rates differ from the expected rate primarily due to the following items:

 

 

 

 

 

 

 

 

 

 

 

**Three** **months** **ended** **June** **30,**

 

 

 

 

 

 

 

 

 

 

**2009**

 

**2008**

Statutory rate

 

 

 

35.0%

 

35.0%

Dividend received deduction

 

(50.6)%

 

(28.7)%

Valuation allowance

 

(1,182.8)%

 

-  

Other

 

 

 

 

 

 

 

(12.4)%

 

1.3%

Effective rate at June 30

 

(1,210.8)%

 

7.6%

 

 

 

 

 

 

 

 

 

 

 

**Six** **months** **ended** **June** **30,**

 

 

 

 

 

 

 

 

 

 

**2009**

 

**2008**

Statutory rate

 

 

 

35.0%

 

35.0%

Dividend received deduction

 

(17.4)%

 

19.7%

Audit Settlement

 

 

-  

 

13.6%

Valuation allowance

 

(232.1)%

 

-  

Other

 

 

 

 

 

 

 

0.3%

 

2.5%

Effective rate at June 30

 

(214.2)%

 

70.8%

 

***Temporary Differences***

 

Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. As of June 30, 2009 and December 31, 2008, the Company had a tax valuation allowance of $149.2 and $328.0, respectively, related to realized capital losses. The change from December 31, 2008 to June 30, 2009 in tax valuation allowance consists of: (a) realized capital losses of $(101.5), which is included in Net income (loss) and, (b) the impact of adoption of FSP FAS 115-2 and FAS 124-2 of $(77.3), which was transferred to Accumulated other comprehensive income (loss). Additionally, at June 30, 2009, the Company had a tax valuation allowance of $62.7 related to unrealized capital losses, which is included in Other comprehensive income (loss). At December 31, 2008, the Company did not have any tax valuation allowance related to unrealized capital losses.

 

47

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

***Other Tax Matters***

 

The Internal Revenue Service (“IRS”) is currently examining tax years 2004 through 2009. The Company and the IRS agreed to currently participate in the Compliance Assurance Program (“CAP”) for tax years 2008 and 2009.

 

**9.**

**Related Party Transactions**

***Property and Equipment***

 

During the second quarter of 2009, ING’s U.S. life insurance companies, including the Company, sold a portion of its property and equipment in a sale/leaseback transaction to an affiliate, ING North America Insurance Corporation (“NAC”).  The fixed assets involved in the sale were capitalized assets generally depreciated over the expected useful lives and software in development.  Since the assets were being depreciated using expected useful lives, the current net book value reasonably approximated the current fair value of the assets being transferred.  The fixed assets sold to NAC by the Company totaled $17.4.

 

**10.**

**Financing Agreements**

***Reciprocal Loan Agreement***

 

The Company maintains a reciprocal loan agreement with ING America Insurance Holdings, Inc. (“ING AIH”), an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business.  Under this agreement, which became effective in June 2001 and expires on April 1, 2011, either party can borrow from the other up to 3% of the Company’s statutory admitted assets as of the preceding December 31.  Interest on any the Company borrowing is charged at the rate of ING AIH’s cost of funds for the interest period, plus 0.15%.  Interest on any ING AIH borrowings is charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration.  

 

Under this agreement, the Company incurred an immaterial amount of interest expense for the three and six months ended June 30, 2009 and 2008, respectively.  The Company earned interest income of $0.5 and $0.6 for the three and six months ended June 30, 2009, respectively, and $0.4 and $1.1 for the three and six months ended June 30, 2008, respectively.  Interest expense and income are included in Interest expense and Net investment income, respectively, on the Condensed Consolidated Statements of Operations.  As of June 30, 2009, the Company had a $590.2 receivable from ING AIH under this agreement, and no amounts outstanding as of December 31, 2008.

 

48

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

For information on the Company’s additional financing agreements, see the Financing Agreements footnote to the Consolidated Financial Statements included in the Company’s 2008 Annual Report on Form 10-K.

 

**11.**

**Commitments and Contingent Liabilities**

***Commitments***

 

Through the normal course of investment operations, the Company commits to either purchase or sell securities, commercial mortgage loans, or money market instruments, at a specified future date and at a specified price or yield.  The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost.  Also, there is likely to be a change in the value of the securities underlying the commitments. 

 

At June 30, 2009, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $323.1, $237.5 of which was with related parties.  At December 31, 2008, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $353.3, $253.7 of which was with related parties.  During the three and six months ended June 30, 2009, $15.9 and $24.5, respectively, were funded to related parties under these commitments.

 

***Cash Collateral***

 

Under the terms of the Company’s Over-The-Counter Derivative ISDA Agreements (“ISDA Agreements”), the Company may receive from, or deliver to, counterparties, collateral to assure that all terms of the ISDA Agreements will be met with regard to the CSA.  The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate.  As of June 30, 2009 and December 31, 2008, the Company held $0.3 and $4.4, respectively, of cash collateral, which was included in Payables under securities loan agreement, including collateral held, on the Condensed Consolidated Balance Sheets.

 

***Litigation***

 

The Company is involved in threatened or pending lawsuits/arbitrations arising from the normal conduct of business.  Due to the climate in insurance and business litigation/arbitrations, suits against the Company sometimes include claims for substantial compensatory, consequential, or punitive damages, and other types of relief.  Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals.  While it is not possible to forecast the outcome of such lawsuits/arbitrations, in light of existing insurance, reinsurance, and established reserves, 

 

49

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a materially adverse effect on the Company’s operations or financial position.

 

***Regulatory Matters***

 

As with many financial services companies, the Company and its affiliates have received informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the financial services industry.  In each case, the Company and its affiliates have been and are providing full cooperation.  For information on the focus of such regulatory inquiries and the actions undertaken by ING in connection therewith, see the Other Regulatory Matters section of the Commitments and Contingent Liabilities footnote to the Consolidated Financial Statements included in the Company’s 2008 Annual Report on Form 10-K.

 

**12.**

**Restructuring Charges**

*2008 CitiStreet Integration and Expense and Staff Reductions*

 

During the third quarter of 2008, integration initiatives related to the acquisition of CitiStreet LLC, now known as ING Institutional Plan Services, LLC, by Lion, which provided significant operational and information technology efficiencies to ING’s U.S. retirement services businesses, including the Company, resulted in the recognition of integration and restructuring costs.  In addition, the Company implemented an expense reduction program for the purpose of streamlining its overall operations.  The restructuring charges related to these expense reduction and integration initiatives include severance and other employee benefits and lease abandonment costs, which are included in Operating Expenses on the Condensed Consolidated Statements of Operations.

 

On January 12, 2009, ING announced expense and staff reductions across all U.S. operations, which resulted in the elimination of 87 current and open positions in the Company.  Due to the staff reductions, curtailment of pension benefits occurred during the first quarter of 2009, which resulted in the recognition of a loss related to unrecognized prior service costs. For the six months ended June 30, 2009, the Company incurred $5.0 and $0.6 in charges related to employee severance and termination benefits and pension plan curtailment costs, respectively, and $8.9 payments were made during the same period. The total restructuring reserve outstanding was $5.0 at June 30, 2009.

 

The Company estimates the completion of these integration and restructuring activities by February 10, 2010, with total estimated costs of $19.9.

 

50

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

**13.**

**Accumulated Other Comprehensive Income (Loss)**

Shareholder’s equity included the following components of Accumulated other comprehensive income (loss) as of June 30, 2009 and 2008.

 

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Net unrealized capital gains (losses):

 

 

 

 

 

 

Fixed maturities, available-for-sale; including OTTI 

 

 

 

 

 

 

 

of $(14.3) for 2009 and $(238.8) of cumulative effect 

 

 

 

 

 

 

 

of change in accounting principle

$

(671.6)

 

$

(593.9)

 

Equity securities, available-for-sale

 

13.1 

 

 

(24.7)

 

DAC/VOBA adjustment on available-for-sale securities, 

 

 

 

 

 

 

 

including $134.0 of cumulative effect of change in 

 

 

 

 

 

 

 

accounting principle

 

362.4 

 

 

18.1 

 

Sales inducements adjustment on available-for-sale securities

 

1.6 

 

 

0.8 

 

Other investments

 

-  

 

 

(0.1)

 

Less: allocation to experience-rated contracts

 

-  

 

 

(390.3)

Unrealized capital losses, before tax

 

(294.5)

 

 

(209.5)

Deferred income tax asset (includes $30.4 of cumulative

 

 

 

 

 

 

effect of change in accounting principle for 2009)

 

84.7 

 

 

73.3 

Deferred tax asset valuation allowance (includes $(77.3) of 

 

 

 

 

 

 

cumulative effect of change in accounting principle for 2009)

 

(62.7)

 

 

-  

Net unrealized capital losses

 

(272.5)

 

 

(136.2)

Pension liability, net of tax

 

(18.0)

 

 

(5.0)

Accumulated other comprehensive loss

$

(290.5)

 

$

(141.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On April 1, 2009, the Company adopted FSP FAS 115-2 and FAS 124-2. As prescribed by this accounting guidance, noncredit impairments, reflecting the portion of the impairment between the present value of future cash flows and fair value, were recognized in Other comprehensive income (loss). As of June 30, 2009, net unrealized capital gains (losses) on available-for-sale fixed maturities included $14.3 of noncredit impairments. In addition, a cumulative transfer of noncredit impairments of $(151.7), after considering the effects of DAC of $134.0 and income taxes of $(46.9), was made from beginning retained earnings to Accumulated other comprehensive income (loss) as of April 1, 2009.

 

During 2008, as a result of the current market conditions, the Company reflected net unrealized capital losses allocated to experience-rated contracts in Shareholder’s equity on the Condensed Consolidated Balance Sheets rather than Future policy benefits and claims reserves.  At June 30, 2009, there are no net unrealized losses allocated to experience-rated contracts.  Net unrealized capital losses allocated to experience-rated contracts of $390.3 at June 30, 2008 are reflected on the Condensed Consolidated Balance Sheets in Future policy benefits and claims reserves and are not included in Shareholder’s equity.

 

51

 

 

 

**ING Life Insurance and Annuity Company and Subsidiaries**

**(A wholly-owned subsidiary of Lion Connecticut Holdings Inc.)**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(Dollar amounts in millions, unless otherwise stated)

 

 

Changes in Accumulated other comprehensive income (loss), net of DAC, VOBA, and tax (excluding the tax valuation allowance), related to changes in unrealized capital gains (losses) on securities, including securities pledged and excluding those related to experience-rated contracts, were as follows for the six months ended June 30, 2009 and 2008.

 

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Net unrealized capital holding gains (losses) arising 

 

 

 

 

 

 

during the period(1)

$

368.7 

 

$

(190.2)

Less: reclassification adjustment for gains (losses) and other

 

 

 

 

 

 

items included in Net income (loss)(2)

 

114.4 

 

 

(76.4)

Net change in unrealized capital gains (losses) on securities 

$

254.3 

 

$

(113.8)

(1)

Pretax net unrealized capital holding gains (losses) arising during the period were $544.3 and $(292.5) for the six months 

 

ended June 30, 2009 and 2008, respectively.

(2)

Pretax reclassification adjustments for gains (losses) and other items included in Net income (loss) were $168.9 and $(117.5) 

 

for the six months ended June 30, 2009 and 2008, respectively.

 

The reclassification adjustments for gains (losses) and other items included in Net income (loss) in the above table are determined by specific identification of each security sold during the period.

 

 

52

 

 

**Item 2.**

**Management’s Narrative Analysis of the Results of Operations and Financial Condition**

(Dollar amounts in millions, unless otherwise stated)

 

**Overview**

The following narrative analysis presents a review of the consolidated results of operations of ING Life Insurance and Annuity Company (“ILIAC”) and its wholly-owned subsidiaries (collectively, the “Company”) for each of the three and six months ended June 30, 2009 and 2008, and financial condition as of June 30, 2009 and December 31, 2008.  This item should be read in its entirety and in conjunction with the condensed consolidated financial statements and related notes, which can be found under Part I, Item 1. contained herein, as well as the “Management’s Narrative Analysis of the Results of Operations and Financial Condition” section contained in the Company’s 2008 Annual Report on Form 10-K.

 

**Forward-Looking Information/Risk Factors**

 

In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions readers regarding certain forward-looking statements contained in this report and in any other statements made by, or on behalf of, the Company, whether or not in future filings with the Securities and Exchange Commission (“SEC”).  Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, or other developments. Statements using verbs such as “expect,” “anticipate,” “believe,” or words of similar import, generally involve forward-looking statements.  Without limiting the foregoing, forward-looking statements include statements that represent the Company’s beliefs concerning future levels of sales and redemptions of theCompany’s products, investment spreads and yields, or the earnings and profitability of the Company’s activities.

 

Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond the Company’s control and many of which are subject to change. These uncertainties and contingencies could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company.  Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable developments, including, but not limited to the following:  

 

 

(1)

The current financial crisis reached unprecedented levels of market volatility and has adversely affected and may continue to adversely affect the Company’s business and results of operations;

 

(2)

Continuing adverse financial market conditions may significantly affect the Company’s ability to meet liquidity needs, access to capital and cost of capital;

 

53

 

 

 

(3)

The amount of statutory capital that the Company must hold to maintain its financial strength and credit ratings can vary significantly from time to time and is sensitive to a number of factors outside of the Company’s control;

 

(4)

The Company has experienced ratings downgrades recently and may experience additional future downgrades in the Company’s ratings which may negatively affect profitability and financial condition;

 

(5)

Regulatory initiatives intended to alleviate the current financial crisis that have been adopted may not be effective and, in any event, may be accompanied by other initiatives, including new capital requirements or other regulations, that could materially affect the Company’s results of operations, financial condition and liquidity;

 

(6)

The valuation of many of the Company’s financial instruments include methodologies, estimations and assumptions that are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect results of operations and financial condition;

 

(7)

If assumptions used in estimating future gross profits differ from actual experience, the Company may be required to accelerate the amortization of Deferred Acquisition Costs (“DAC”), which could have a material adverse effect on our results of operations and financial condition;

 

(8)

If the Company’s business does not perform well, the Company may be required to establish an additional valuation allowance against the deferred income tax asset, which could have a material adverse effect on results of operations and financial condition;

 

(9)

Reinsurance subjects the Company to the credit risk of reinsurers and may not be adequate to protect against losses arising from ceded reinsurance;

 

(10)

The inability of counterparties to meet their financial obligations could have an adverse effect on the Company's results of operations;

 

(11)

Changes in underwriting and actual experience could materially affect profitability; 

 

(12)

A loss of key product distribution relationships could materially affect sales;

 

(13)

Competition could negatively affect the ability to maintain or increase profitability; 

 

(14)

Changes in federal income tax law or interpretations of existing tax law could affect profitability and financial condition by making some products less attractive to contractowners and increasing tax costs of contractowners or the Company; 

 

(15)

Litigation may adversely affect profitability and financial condition; 

 

(16)

Changes in regulation in the United States and recent regulatory investigations may reduce profitability; 

 

(17)

The Company’s products are subject to extensive regulation and failure to meet any of the complex product requirements may reduce profitability;

 

(18)

Failure of a Company operating or information system or a compromise of security with respect to an operating or information system or portable electronic device or a failure to implement a new accounting or actuarial system  effectively could adversely affect the Company’s results of operations and financial condition or the effectiveness of internal controls over financial reporting; 

 

54

 

 

 

(19)

The occurrence of natural or man-made disasters may adversely affect the Company’s results of operations and financial condition; 

 

(20)

The occurrence of unidentified or unanticipated risks could negatively affect the Company’s business or result in losses; 

 

(21)

Circumstances associated with implementation of ING Groep’s recently announced global business strategy or the European Commission seeking to impose additional conditions with respect to ING's receipt of state aid from the Dutch State could adversely affect the Company’s results of operations and financial condition; and 

 

(22)

A loss of key employees could increase the Company’s operational risks and could adversely affect the effectiveness of internal controls over financial reporting.

 

Investors are also directed to consider the risks and uncertainties discussed in this Item 2. and in Item 1A. of Part II contained herein, as well as in other documents filed by the Company with the SEC.  Except as may be required by the federal securities laws, the Company disclaims any obligation to update forward-looking information.

 

**Basis of Presentation**

ILIAC is a stock life insurance company domiciled in the state of Connecticut.  ILIAC and its wholly-owned subsidiaries are providers of financial products and services in the United States.  ILIAC is authorized to conduct its insurance business in all states and in the District of Columbia.

 

ILIAC is a direct, wholly-owned subsidiary of Lion Connecticut Holdings Inc. (“Lion” or “Parent”), which is an indirect, wholly-owned subsidiary of ING Groep N.V. (“ING”).  ING is a global financial services holding company based in The Netherlands, with American Depository Shares listed on the New York Stock Exchange under the symbol “ING”.

 

The Company has one operating segment.

 

**Critical Accounting Policies**

There have been no material changes to the Company’s critical accounting policies since the filing of the Company’s 2008 Annual Report on Form 10-K, except as noted in the Recently Adopted Accounting Standards footnote.

 

**Results of Operations**

 

*Overview*

 

Products offered by the Company include qualified and nonqualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, and 457, as well as nonqualified deferred compensation plans.

 

55

 

 

The Company derives its revenue mainly from (a) fee income generated from separate account assets supporting variable options under variable annuity contract investments, as designated by contractowners, (b) investment income earned on assets supporting fixed assets under management (“AUM”), mainly generated from annuity products with fixed investment options, and (c) certain other fees.  The Company’s expenses primarily consist of (a) interest credited and other benefits to contractowners, (b) amortization of DAC and value of business acquired (“VOBA”), (c) expenses related to the selling and servicing of the various products offered by the Company, and (d) other general business expenses.  In addition, the Company collects broker-dealer commissions through its subsidiary, Directed Services LLC (“DSL”), which are, in turn, paid to broker-dealers and expensed.

 

*Economic Analysis*

 

The current economic environment presents challenges for the Company and the insurance industry. The Company’s sales and financial results continue to be affected by unprecedented economic trends.

 

The credit and liquidity crisis continues to impact short-term, LIBOR and U.S. Treasury rates. Despite a reduction, credit spreads remained wide during the first half of 2009. In addition, U.S. Treasury market rates increased during this period. Both of these factors kept the fixed maturities portfolio in an unrealized loss position.

 

Regardless of the rise in the second quarter of 2009, the equity markets improved insignificantly from its year-end 2008 position during the first half of 2009 and remained lower in comparison with the first half of 2008. Equity market performance impacts the Company’s fee revenue, as it is based on the balance of variable AUM. Lower equity market levels during the first half of 2009, in comparison with the same period of 2008, unfavorably impacted AUM and corresponding fee revenue related to variable annuity products. In addition, variable product demand often mirrors consumer demand for equity market investments.

 

*Results of Operations*

 

The Company’s results of operations for the three and six months ended June 30, 2009, and changes therein, were primarily impacted by higher net investment income due to higher yields on certain mortgage securities as a result of declining interest rates, a decline in operating expenses driven by cost reduction initiatives, and lower amortization of DAC and VOBA related to the impact of favorable equity markets and changes in the tax valuation allowance. These favorable items were partially offset by increased realized capital losses related to futures and a decline in fee income due to lower variable AUM levels. Additionally, lower gross profits contributed to the lower amortization of DAC and VOBA for the three months ended June 30, 2009, compared to the corresponding quarter of 2008.

 

56

 

 

 

 

 

 

 

 

 

 

 

**Three** **Months** **Ended** **June** **30,**

 

 

**$** **Increase**

 

**%** **Increase**

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

 

 

**(Decrease)**

 

**(Decrease)**

**Revenues:**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

293.1 

 

$

275.5 

 

$

17.6 

 

6.4%

 

Fee income

 

 

 

128.4 

 

 

170.5 

 

 

(42.1)

 

(24.7)%

 

Premiums

 

 

 

 

8.8 

 

 

7.8 

 

 

1.0 

 

12.8%

 

Broker-dealer commission revenue

 

63.6 

 

 

173.2 

 

 

(109.6)

 

(63.3)%

 

Net realized capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Total other-than-temporary 

 

 

 

 

 

 

 

 

 

 

 

 

 

impairment losses

 

(185.5)

 

 

(63.7)

 

 

(121.8)

 

NM

 

 

Less: Portion of other-than-

 

 

 

 

 

 

 

 

 

 

 

 

 

temporary impairment losses 

 

 

 

 

 

 

 

 

 

 

 

 

 

recognized in Accumulated 

 

 

 

 

 

 

 

 

 

 

 

 

 

other comprehensive income 

 

 

 

 

 

 

 

 

 

 

 

 

 

(loss)

 

 

 

 

14.3 

 

 

-  

 

 

14.3 

 

NM

 

 

Net other-than-temporary

 

 

 

 

 

 

 

 

 

 

 

 

 

impairments recognized 

 

 

 

 

 

 

 

 

 

 

 

 

 

in earnings

 

(171.2)

 

 

(63.7)

 

 

(107.5)

 

NM

 

 

Other net realized capital losses

 

(65.6)

 

 

(29.3)

 

 

(36.3)

 

NM

 

Total net realized capital losses

 

(236.8)

 

 

(93.0)

 

 

(143.8)

 

NM

Other income

 

 

 

4.0 

 

 

4.4 

 

 

(0.4)

 

(9.1)%

Total revenue

 

 

 

261.1 

 

 

538.4 

 

 

(277.3)

 

(51.5)%

**Benefits** **and** **expenses:**

 

 

 

 

 

 

 

 

 

 

 

Interest credited and other 

 

 

 

 

 

 

 

 

 

 

 

 

benefits to contractowners

 

133.5 

 

 

91.3 

 

 

42.2 

 

46.2%

 

Operating expenses

 

140.6 

 

 

173.5 

 

 

(32.9)

 

(19.0)%

 

Broker-dealer commission expense

 

63.6 

 

 

173.2 

 

 

(109.6)

 

(63.3)%

 

Net amortization of deferred policy 

 

 

 

 

 

 

 

 

 

 

 

 

acquisition costs and value 

 

 

 

 

 

 

 

 

 

 

 

 

of business acquired

 

(85.4)

 

 

74.8 

 

 

(160.2)

 

NM

 

Interest expense

 

1.4 

 

 

0.5 

 

 

0.9 

 

NM

Total benefits and expenses

 

253.7 

 

 

513.3 

 

 

(259.6)

 

(50.6)%

Income before income taxes 

 

7.4 

 

 

25.1 

 

 

(17.7)

 

(70.5)%

Income tax (benefit) expense

 

(89.6)

 

 

1.9 

 

 

(91.5)

 

NM

Net income

 

 

 

$

97.0 

 

$

23.2 

 

$

73.8 

 

NM

Effective tax rate

 

 

NM

 

 

7.6%

 

 

 

 

 

NM - Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

57

 

 

 

 

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,**

 

 

**$** **Increase**

 

**%** **Increase**

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

 

 

**(Decrease)**

 

**(Decrease)**

**Revenues:**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

613.5 

 

$

536.4 

 

$

77.1 

 

14.4%

 

Fee income

 

 

 

239.8 

 

 

341.7 

 

 

(101.9)

 

(29.8)%

 

Premiums

 

 

 

 

13.6 

 

 

15.1 

 

 

(1.5)

 

(9.9)%

 

Broker-dealer commission revenue

 

159.3 

 

 

350.5 

 

 

(191.2)

 

(54.6)%

 

Net realized capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Total other-than-temporary 

 

 

 

 

 

 

 

 

 

 

 

 

 

impairment losses

 

(344.9)

 

 

(113.2)

 

 

(231.7)

 

NM

 

 

Less: Portion of other-than-

 

 

 

 

 

 

 

 

 

 

 

 

 

temporary impairment losses 

 

 

 

 

 

 

 

 

 

 

 

 

 

recognized in Accumulated 

 

 

 

 

 

 

 

 

 

 

 

 

 

other comprehensive income 

 

 

 

 

 

 

 

 

 

 

 

 

 

(loss)

 

 

 

 

14.3 

 

 

-  

 

 

14.3 

 

NM

 

 

Net other-than-temporary

 

 

 

 

 

 

 

 

 

 

 

 

 

impairments recognized 

 

 

 

 

 

 

 

 

 

 

 

 

 

in earnings

 

(330.6)

 

 

(113.2)

 

 

(217.4)

 

NM

 

 

Other net realized capital gains

 

 

 

 

 

 

 

 

 

 

 

 

 

(losses)

 

 

 

146.3 

 

 

(39.7)

 

 

186.0 

 

NM

 

Total net realized capital losses

 

(184.3)

 

 

(152.9)

 

 

(31.4)

 

20.5%

 

Other income

 

 

8.1 

 

 

8.0 

 

 

0.1 

 

1.3%

Total revenue

 

 

 

850.0 

 

 

1,098.8 

 

 

(248.8)

 

(22.6)%

**Benefits** **and** **expenses:**

 

 

 

 

 

 

 

 

 

 

 

Interest credited and other 

 

 

 

 

 

 

 

 

 

 

 

 

benefits to contractowners

 

298.5 

 

 

326.6 

 

 

(28.1)

 

(8.6)%

 

Operating expenses

 

285.4 

 

 

334.9 

 

 

(49.5)

 

(14.8)%

 

Broker-dealer commission expense

 

159.3 

 

 

350.5 

 

 

(191.2)

 

(54.6)%

 

Net amortization of deferred policy 

 

 

 

 

 

 

 

 

 

 

 

 

acquisition costs and value 

 

 

 

 

 

 

 

 

 

 

 

 

of business acquired

 

61.4 

 

 

159.3 

 

 

(97.9)

 

(61.5)%

 

Interest expense

 

1.7 

 

 

0.8 

 

 

0.9 

 

NM

Total benefits and expenses

 

806.3 

 

 

1,172.1 

 

 

(365.8)

 

(31.2)%

Income (loss) before income taxes 

 

43.7 

 

 

(73.3)

 

 

117.0 

 

NM

Income tax (benefit) expense

 

(93.6)

 

 

(51.9)

 

 

(41.7)

 

80.3%

Net income (loss)

$

137.3 

 

$

(21.4)

 

$

158.7 

 

NM

Effective tax rate

 

 

NM

 

 

70.8%

 

 

 

 

 

NM - Not meaningful.

 

 

 

 

 

 

 

 

 

 

 

*Revenues*

 

Total revenue decreased for the three and six months ended June 30, 2009, primarily reflecting a decline in Fee income, lower Broker-dealer commission revenue and higher Net realized capital losses, partially offset by an increase in Net investment income.

 

58

 

 

*Fee income*decreased for the three and six months ended June 30, 2009, as overall average variable AUM decreased, driven by lower equity average market levels in 2009 in comparison with the same period of 2008.

 

*Broker-dealer commission revenue*decreased for the three and six months ended June 30, 2009, due to lower sales of variable annuity products. The decrease in commission revenue is offset by the corresponding decrease in Broker-dealer commission expense.

 

The increase in *Total net realized capital losses*for the three and six months ended June 30, 2009, was primarily due to futures used to hedge fee income on variable products. The futures were in a short position, and as such, their fair value decreased when equity markets rose during 2009. The Company did not have exposure to futures during the first half of 2008. The year-to-date losses were partially offset by a gain of $206.2 recognized in the first quarter of 2009 on the transfer of an 80% interest in the Company’s Alt-A residential mortgage-backed securities to The State of the Netherlands (the “Dutch State”).

 

The increase in *Net investment income*for the three and six months ended June 30, 2009, was mainly due to higher yields on certain mortgage-backed securities, which produce higher interest income as interest rates decline.

 

*Benefits and Expenses*

 

Total benefits and expenses decreased for the six and three months ended June 30, 2009, primarily due to lower Broker-dealer commission expense, a decline in Net amortization of DAC and VOBA, lower Operating expense, and, for the six months ended June 30, 2009, a decline in Interest credited and other benefits to contractowners.

 

*Broker-dealer commission expense*decreased for the three and six months ended June 30, 2009, due to lower sales of variable annuity products. The decrease in commission expense is offset by the corresponding decrease in Broker-dealer commission revenue.

 

The decrease in *Net amortization of DAC and VOBA*for the three and six months ended June 30, 2009, was primarily driven by an increase in estimated future gross profits due to the improvement in equity markets in the second quarter of 2009 compared to a decrease over the comparable period in 2008. Lower actual gross profits, due to reduced fee income and higher net realized capital losses, also contributed to lower Net amortization of DAC and VOBA for the three months ended June 30, 2009.

 

*Operating Expenses*for the three and six months ended June 30, 2009, decreased reflecting the impact of cost reduction initiatives and lower investment advisory fees due to the decline in variable annuity AUM.

 

59

 

 

*Interest credited and other benefits to contractowners*decreased for the six months ended June 30, 2009, due to the decrease in reserves associated with minimum guarantees on variable annuities, which declined due to rising interest rates since year-end 2008. The increase for the three months ended June 30, 2009 reflects the amortization of realized losses associated with experience-rated contracts.

 

*Income Taxes*

 

*Income tax (benefit) expense*was favorable for the three months ended June 30, 2009, due to lower income before tax and the change in the tax valuation allowance related to realized capital losses.

 

*Income tax benefit* increased for the six months ended June 30, 2009, due primarily to the change in the tax valuation allowance related to realized capital losses, partially offset by increased income before taxes, lower dividends received deduction, and settlement of tax audits in the prior year.

 

**Financial Condition**

 

***Investments***

 

*Investment Strategy*

 

The Company’s investment strategy focuses on diversification by asset class.  The Company seeks to achieve economic diversification, while reducing overall credit risk and liquidity risks.  In addition, the Company seeks to mitigate the impact of cash flow variability from embedded options within certain investment products, such as prepayment options, interest rate options embedded in collateralized mortgage obligations, and call options embedded in corporate bonds.  The investment management function is centralized under ING Investment Management LLC, an affiliate, pursuant to an investment advisory agreement.  Separate portfolios are established for groups of products with similar liability characteristics within the Company.

 

60

 

 

*Portfolio Composition*

The following tables present the investment portfolio at June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

**Carrying** **Value**

 

**%**

 

 

**Carrying** **Value**

 

**%**

Fixed maturities, available-for-sale, 

 

 

 

 

 

 

 

 

 

 

including securities pledged

$

14,424.8 

 

77.7%

 

$

14,477.6 

 

81.0%

Equity securities, available-for-sale

 

225.5 

 

1.2%

 

 

240.3 

 

1.3%

Short-term investments

 

310.5 

 

1.7%

 

 

41.9 

 

0.2%

Mortgage loans on real estate

 

2,049.8 

 

11.0%

 

 

2,107.8 

 

11.8%

Loan - Dutch State obligation

 

749.4 

 

4.0%

 

 

-  

 

0.0%

Policy loans

 

254.2 

 

1.4%

 

 

267.8 

 

1.5%

Limited partnerships/corporations

 

443.7 

 

2.4%

 

 

513.9 

 

2.9%

Derivatives

 

112.4 

 

0.6%

 

 

235.2 

 

1.3%

Total investments

$

18,570.3 

 

100.0%

 

$

17,884.5 

 

100.0%

 

 

61

 

 

*Fixed Maturities*

 

Fixed maturities, available-for-sale, were as follows as of June 30, 2009.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Gross**

 

 

**Gross**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Unrealized**

 

 

**Unrealized**

 

 

 

 

 

 

 

 

 

 

 

 

 

**Amortized**

 

 

**Capital**

 

 

**Capital**

 

 

**Fair**

 

 

 

 

 

 

 

 

 

 

**Cost**

 

 

**Gains**

 

 

**Losses(2)**

 

 

**Value**

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

$

2,450.3 

 

$

12.8 

 

$

4.3 

 

$

2,458.8 

 

U.S. government agencies and authorities

 

783.4 

 

 

54.2 

 

 

-  

 

 

837.6 

 

State, municipalities, and political subdivisions

 

71.7 

 

 

1.6 

 

 

11.5 

 

 

61.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Public utilities

 

1,046.8 

 

 

21.6 

 

 

45.3 

 

 

1,023.1 

 

 

Other corporate securities

 

3,740.7 

 

 

143.6 

 

 

188.0 

 

 

3,696.3 

 

Total U.S. corporate securities

 

4,787.5 

 

 

165.2 

 

 

233.3 

 

 

4,719.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

299.7 

 

 

11.3 

 

 

25.8 

 

 

285.2 

 

 

Other

 

 

 

 

 

2,164.0 

 

 

48.2 

 

 

114.5 

 

 

2,097.7 

 

Total foreign securities

 

2,463.7 

 

 

59.5 

 

 

140.3 

 

 

2,382.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

2,192.8 

 

 

194.4 

 

 

207.7 

 

 

2,179.5 

 

Commercial mortgage-backed securities

 

1,610.3 

 

 

2.1 

 

 

370.3 

 

 

1,242.1 

 

Other asset-backed securities

 

736.7 

 

 

8.4 

 

 

202.4 

 

 

542.7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed maturities, including 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities pledged

 

15,096.4 

 

 

498.2 

 

 

1,169.8 

 

 

14,424.8 

 

Less: securities pledged

 

769.7 

 

 

5.8 

 

 

24.4 

 

 

751.1 

Total fixed maturities

 

14,326.7 

 

 

492.4 

 

 

1,145.4 

 

 

13,673.7 

(1)

Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

(2)

Includes other-than-temporary impairments, which are detailed in the Recently Adopted Accounting Standards

 

and the Investments footnotes

 

 

 

 

 

 

 

 

 

 

 

 

 

62

 

 

Fixed maturities, available-for-sale, were as follows as of December 31, 2008.

 

 

 

 

 

 

 

**Gross**

 

**Gross**

 

 

 

 

 

 

 

 

 

**Unrealized**

 

**Unrealized**

 

 

 

 

 

 

**Amortized**

 

**Capital**

 

**Capital**

 

**Fair**

 

 

 

**Cost**

 

**Gains**

 

**Losses**

 

**Value**

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

$

1,391.4 

 

$

84.5 

 

$

0.9 

 

$

1,475.0 

 

U.S. government agencies and authorities

 

797.1 

 

 

77.2 

 

 

1.2 

 

 

873.1 

 

State, municipalities, and political subdivisions

 

72.9 

 

 

0.3 

 

 

17.7 

 

 

55.5 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Public utilities

 

1,112.4 

 

 

4.4 

 

 

117.6 

 

 

999.2 

 

 

Other corporate securities

 

3,986.2 

 

 

85.6 

 

 

436.6 

 

 

3,635.2 

 

Total U.S. corporate securities

 

5,098.6 

 

 

90.0 

 

 

554.2 

 

 

4,634.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign securities(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

397.8 

 

 

4.3 

 

 

61.4 

 

 

340.7 

 

 

Other

 

2,188.5 

 

 

27.0 

 

 

274.0 

 

 

1,941.5 

 

Total foreign securities

 

2,586.3 

 

 

31.3 

 

 

335.4 

 

 

2,282.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

3,412.6 

 

 

153.6 

 

 

266.7 

 

 

3,299.5 

 

Commercial mortgage-backed securities

 

1,604.0 

 

 

0.1 

 

 

370.5 

 

 

1,233.6 

 

Other asset-backed securities

 

830.2 

 

 

9.0 

 

 

214.9 

 

 

624.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed maturities, including 

 

 

 

 

 

 

 

 

 

 

 

 

 

fixed maturities pledged

 

15,793.1 

 

 

446.0 

 

 

1,761.5 

 

 

14,477.6 

 

Less: fixed maturities pledged

 

1,248.8 

 

 

78.9 

 

 

7.8 

 

 

1,319.9 

Total fixed maturities

$

14,544.3 

 

$

367.1 

 

$

1,753.7 

 

$

13,157.7 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

 

It is management’s objective that the portfolio of fixed maturities be of high quality and be well diversified by market sector.  The fixed maturities in the Company’s portfolio are generally rated by external rating agencies and, if not externally rated, are rated by the Company on a basis believed to be similar to that used by the rating agencies.  At June 30, 2009 and December 31, 2008, the average quality rating of the Company’s fixed maturities portfolio was AA-.  Ratings are calculated using a rating hierarchy that considers Standard & Poor’s (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”), and internal ratings.

 

63

 

 

Total fixed maturities, including securities pledged to creditors, by quality rating category were as follows as of June 30, 2009 and December 31, 2008.

 

 

 

**2009**

 

 

**Fair**

 

**%** **of**

 

 

**Amortized**

 

**%** **of**

 

 

**Value**

 

**Total**

 

 

**Cost**

 

**Total**

AAA

$

6,874.6 

 

47.6%

 

$

7,137.8 

 

47.3%

AA

 

644.7 

 

4.5%

 

 

787.5 

 

5.2%

A

 

2,406.0 

 

16.7%

 

 

2,430.4 

 

16.1%

BBB

 

3,813.9 

 

26.4%

 

 

3,969.7 

 

26.3%

BB

 

457.4 

 

3.2%

 

 

514.3 

 

3.4%

B and below

 

228.2 

 

1.6%

 

 

256.7 

 

1.7%

Total

$

14,424.8 

 

100.0%

 

$

15,096.4 

 

100.0%

 

 

 

**2008**

 

 

**Fair**

 

**%** **of**

 

 

**Amortized**

 

**%** **of**

 

 

**Value**

 

**Total**

 

 

**Cost**

 

**Total**

AAA

$

7,140.9 

 

49.3%

 

$

7,471.2 

 

47.3%

AA

 

718.3 

 

5.0%

 

 

786.4 

 

5.0%

A

 

2,420.9 

 

16.7%

 

 

2,618.7 

 

16.6%

BBB

 

3,609.0 

 

24.9%

 

 

4,177.0 

 

26.4%

BB

 

403.6 

 

2.8%

 

 

505.9 

 

3.2%

B and below

 

184.9 

 

1.3%

 

 

233.9 

 

1.5%

Total

$

14,477.6 

 

100.0%

 

$

15,793.1 

 

100.0%

 

95.2% and 95.9% of fixed maturities were invested in securities rated BBB and above (Investment Grade) as of June 30, 2009 and December 31, 2008, respectively.  

 

Fixed maturities rated BB and below (Below Investment Grade) may have speculative characteristics, and changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than is the case with higher rated fixed maturities.

 

Total fixed maturities by market sector, including securities pledged to creditors, were as follows at June 30, 2009 and December 31, 2008.

 

 

 

**2009**

 

 

**Fair**

 

**%** **of**

 

 

**Amortized**

 

**%** **of**

 

 

**Value**

 

**Total**

 

 

**Cost**

 

**Total**

U.S. Treasuries

$

2,458.8 

 

17.0%

 

$

2,450.3 

 

16.2%

U.S. government agencies and authorities

 

837.6 

 

5.8%

 

 

783.4 

 

5.2%

U.S. corporate, state, and municipalities

 

4,781.2 

 

33.2%

 

 

4,859.2 

 

32.2%

Foreign

 

2,382.9 

 

16.5%

 

 

2,463.7 

 

16.3%

Residential mortgage-backed

 

2,179.5 

 

15.1%

 

 

2,192.8 

 

14.5%

Commercial mortgage-backed

 

1,242.1 

 

8.6%

 

 

1,610.3 

 

10.7%

Other asset-backed

 

542.7 

 

3.8%

 

 

736.7 

 

4.9%

Total

$

14,424.8 

 

100.0%

 

$

15,096.4 

 

100.0%

 

64

 

 

 

 

 

**2008**

 

 

**Fair**

 

**%** **of**

 

 

**Amortized**

 

**%** **of**

 

 

**Value**

 

**Total**

 

 

**Cost**

 

**Total**

U.S. Treasuries

$

1,475.0 

 

10.2%

 

$

1,391.4 

 

8.8%

U.S. government agencies and authorities

 

873.1 

 

6.0%

 

 

797.1 

 

5.0%

U.S. corporate, state, and municipalities

 

4,689.9 

 

32.4%

 

 

5,171.5 

 

32.7%

Foreign

 

2,282.2 

 

15.8%

 

 

2,586.3 

 

16.4%

Residential mortgage-backed

 

3,299.5 

 

22.8%

 

 

3,412.6 

 

21.6%

Commercial mortgage-backed

 

1,233.6 

 

8.5%

 

 

1,604.0 

 

10.2%

Other asset-backed

 

624.3 

 

4.3%

 

 

830.2 

 

5.3%

Total

$

14,477.6 

 

100.0%

 

$

15,793.1 

 

100.0%

 

The amortized cost and fair value of fixed maturities, excluding securities pledged, as of June 30, 2009, are shown below by contractual maturity.  Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid.

 

 

 

 

**Amortized**

 

 

**Fair**

 

 

 

**Cost**

 

 

**Value**

Due to mature:

 

 

 

 

 

 

One year or less

$

305.4 

 

$

302.7 

 

After one year through five years

 

3,741.6 

 

 

3,792.1 

 

After five years through ten years

 

3,870.9 

 

 

3,869.9 

 

After ten years

 

2,638.7 

 

 

2,495.8 

 

Mortgage-backed securities

 

3,803.1 

 

 

3,421.6 

 

Other asset-backed securities

 

736.7 

 

 

542.7 

Less: securities pledged to creditors

 

769.7 

 

 

751.1 

Fixed maturities, excluding securities pledged to creditors

$

14,326.7 

 

$

13,673.7 

 

*Subprime and Alt-A Mortgage Exposure*

 

Since the third quarter of 2007, credit markets have become more turbulent amid concerns about subprime and Alt-A mortgages and collateralized debt obligations (“CDOs”).  This resulted in a general widening of credit spreads, reduced price transparency, reduced liquidity, increased rating agency downgrades and increased volatility across certain markets. Although some improvement in credit markets has occurred in the second quarter of 2009, these challenging conditions largely remain.

 

The Company does not originate or purchase subprime or Alt-A whole-loan mortgages. The Company does have exposure to Residential Mortgage-Backed Securities (“RMBS”) and asset-backed securities (“ABS”). Subprime lending is the origination of loans to customers with weaker credit profiles.  The Company defines Alt-A Loans to include residential mortgage loans to customers who have strong credit profiles but lack some element(s), such as documentation to substantiate income.  Commencing in the fourth quarter of 2007, the Company expanded its definition of Alt-A loans to include residential mortgage loans to borrowers that would otherwise be classified as 

 

65

 

 

prime but whose loan structure provides repayment options to the borrower that increase the risk of default.  Further, during the fourth quarter of 2007, the industry coalesced around classifying any securities backed by residential mortgage collateral not clearly identifiable as prime or subprime into the Alt-A category, and the Company is following that lead.

 

Trading activity for the Company’s RMBS, particularly subprime and Alt-A mortgage-backed securities, declined during 2008 as a result of the dislocation of the credit markets.  During 2008 and 2009, the Company continued to obtain pricing information from commercial pricing services and brokers.  However, the pricing for subprime and Alt-A mortgage-backed securities did not represent regularly occurring market transactions since the trading activity declined significantly in the second half of 2008 and remained suppressed in 2009.  As a result, the Company concluded in the second half of 2008 that the market for subprime and Alt-A mortgage-backed securities was inactive and continues to believe that the market remains largely inactive in 2009.  The Company did not change its valuation procedures as a result of determining that the market was inactive.

 

The following summarizes the Company’s exposure to subprime and Alt-A mortgages as of June 30, 2009 and December 31, 2008.

 

The Company’s exposure to subprime mortgages was primarily in the form of ABS structures collateralized by subprime residential mortgages, and the majority of these holdings were included in other asset-backed securities in the fixed maturities by market sector table above.  As of June 30, 2009, the fair value and gross unrealized losses related to the Company’s exposure to subprime mortgages were $187.1 and $166.5, respectively, representing 1.3% of total fixed maturities.  As of December 31, 2008, the fair value and gross unrealized losses related to the Company’s exposure to subprime mortgages were $249.1 and $114.5, respectively, representing 1.7% of total fixed maturities.

 

The following tables summarize the Company’s exposure to subprime mortgage-backed holdings by credit quality and vintage year as of June 30, 2009 and December 31, 2008:

 

**2009**

 

**2008**

**%** **of** **Total** **Subprime**

 

 

 

 

 

**%** **of** **Total** **Subprime**

 

 

 

 

**Mortgage-backed**

 

 

 

 

 

**Mortgage-backed**

 

 

 

 

**Securities**

 

**Vintage**

 

**Securities**

 

**Vintage**

AAA

 

62.6%

 

2007

 

25.1%

 

AAA

 

57.8%

 

2008

 

0.3%

AA

 

27.5%

 

2006

 

24.1%

 

AA

 

31.5%

 

2007

 

23.6%

A

 

4.4%

 

2005 and prior

 

50.8%

 

A

 

4.2%

 

2006

 

23.3%

BBB

 

5.1%

 

 

 

100.0%

 

BBB

 

6.1%

 

2005 and prior

 

52.8%

BB and below

 

0.4%

 

 

 

 

 

BB and below

 

0.4%

 

 

 

100.0%

 

 

100.0%

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

The Company’s exposure to Alt-A mortgages was included in residential mortgage-backed securities in the fixed maturities by market sector table above.  As of June 30, 2009, the fair value and gross unrealized losses aggregated to $186.2 and $73.9, respectively, representing 1.3% of total fixed maturities.  As of December 31, 2008, 

 

66

 

 

the fair value and gross unrealized losses related to the Company’s exposure to Alt-A mortgages were $750.6 and $24.5, respectively, representing 5.2% of total fixed maturities.

 

The following tables summarize the Company’s exposure to Alt-A mortgage-backed holdings by credit quality and vintage year as of June 30, 2009 and December 31, 2008:

 

**2009**

 

**2008**

**%** **of** **Total** **Alt-A** 

 

 

 

 

 

**%** **of** **Total** **Alt-A** 

 

 

 

 

**Mortgage-backed**

 

 

 

 

 

**Mortgage-backed**

 

 

 

 

**Securities**

 

**Vintage**

 

**Securities**

 

**Vintage**

AAA

 

54.0%

 

2007

 

23.5%

 

AAA

 

87.4%

 

2007

 

9.9%

AA

 

0.8%

 

2006

 

27.6%

 

AA

 

2.4%

 

2006

 

27.4%

A

 

2.7%

 

2005 and prior

 

48.9%

 

A

 

3.2%

 

2005 and prior

 

62.7%

BBB

 

3.7%

 

 

 

100.0%

 

BBB

 

0.2%

 

 

 

100.0%

BB and below

 

38.8%

 

 

 

 

 

BB and below

 

6.8%

 

 

 

 

 

 

100.0%

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

The change in exposure to Alt-A mortgages was due to the transfer of an economic interest in 80% of the Alt-A RMBS portfolio to the Dutch State during the first quarter of 2009. On January 26, 2009, ING announced it reached an agreement, for itself and on behalf of certain ING affiliates including the Company, with the Dutch State on an Illiquid Assets Back-up Facility (the “Back-up Facility”) covering 80% of ING’s Alt-A residential mortgage-backed securities (“Alt-A RMBS”).  Under the terms of the Back-up Facility, a full credit risk transfer to the Dutch State was realized on 80% of ING’s Alt-A RMBS owned by ING Bank, FSB and ING affiliates within ING Insurance Americas with a book value of $36.0 billion portfolio, including book value of $802.5 of the Alt-A RMBS portfolio owned by the Company (with respect to the Company’s portfolio, the“Designated Securities Portfolio”) (the “ING-Dutch State Transaction”).  As a result of the risk transfer, the Dutch State will participate in 80% of any results of the ING Alt-A RMBS portfolio.  The risk transfer to the Dutch State took place at a discount of approximately 10% of par value.  In addition, under the Back-up Facility, other fees were paid both by the Company and the Dutch State.  Each ING company participating in the ING-Dutch State Transaction, including the Company remains the legal owner of 100% of its Alt-A RMBS portfolio and will remain exposed to 20% of any results on the portfolio.  The ING-Dutch State Transaction closed on March 31, 2009, with the affiliate participation conveyance and risk transfer to the Dutch State described in the succeeding paragraph taking effect as of January 26, 2009.

 

In order to implement that portion of the ING-Dutch State Transaction related to the Company’s Designated Securities Portfolio, the Company entered into a  participation agreement with its affiliates, ING Support Holding B.V. (“ING Support Holding”) and ING pursuant to which the Company conveyed to ING Support Holding an 80% participation interest in its Designated Securities Portfolio and will pay a periodic transaction fee, and received, as consideration for the participation, an assignment by ING 

 

67

 

 

Support Holding of its right to receive payments from the Dutch State under the Illiquid Assets Back-Up Facility related to the Company’s Designated Securities Portfolio among, ING, ING Support Holding and the Dutch State (the “Company Back-Up Facility”).  Under the Company Back-Up Facility, the Dutch State is obligated to pay certain periodic fees and make certain periodic payments with respect to the Company’s Designated Securities Portfolio, and ING Support Holding is obligated to pay a periodic guarantee fee and make periodic payments to the Dutch State equal to the distributions made with respect to the 80% participation interest in the Company’s Designated Securities Portfolio.  The Dutch State payment obligation to the Company under the Back-Up Facility is accounted for as a loan receivable for U.S. GAAP and is reported in Loan - Dutch State obligation on the CondensedConsolidated Balance Sheets.

 

Upon the closing of the transaction on March 31, 2009, the Company recognized a gain of $206.2, which was reported in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations.

 

In a second transaction, known as the Step 1 Cash Transfer, a portion of the Company’s Alt-A RMBS which had a book value of $4.2 was sold for cash to an affiliate, Lion II Custom Investments LLC (“Lion II”).  Immediately thereafter, Lion II sold to ING Direct Bancorp the purchased securities (the “Step 2 Cash Transfer”). Contemporaneous with the Step 2 Cash Transfer, ING Direct Bancorp included such purchased securities as part of its Alt-A RMBS portfolio sale to the Dutch State.  The Step 1 Cash Transfer closed on March 31, 2009, and the Company recognized a gain of $0.3 contemporaneous with the closing of the ING-Dutch State Transaction, which was reported in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations.

 

*Commercial Mortgage-backed and Other Asset-backed Securities*

 

While the delinquency rates on commercial mortgages have been stable in recent years, commercial real estate rents and property values have recently become more volatile.  In addition, there are growing concerns with consumer loans as a result of the current economic environment, which includes lower family income and higher unemployment rates.

 

As of June 30, 2009 and December 31, 2008, the fair value of the Company’s commercial mortgage-backed securities (“CMBS”) totaled $1.2 billion and other ABS, excluding subprime exposure, totaled $370.9 and $372.2, respectively.  CMBS investments represent pools of commercial mortgages that are broadly diversified across property types and geographical areas.

 

As of June 30, 2009, the other ABS was also broadly diversified both by type and issuer with credit card receivables, automobile receivables, public utility, and collateralized loan obligations comprising 37.4%, 15.9%, 25.3% and 7.1%, respectively, of total other ABS, excluding subprime exposure.  As of December 31, 2008, the other ABS was also broadly diversified both by type and issuer with credit card receivables, automobile receivables, public utility, and collateralized loan obligations comprising 29.3%, 17.2%, 28.6% and 9.2%, respectively, of total other ABS, excluding subprime exposure.

 

68

 

 

The following tables summarize the Company’s exposure to CMBS holdings, excluding subprime exposure, by credit quality and vintage year as of June 30, 2009 and December 31, 2008:

 

**2009**

 

**2008**

**%** **of** **Total** **CMBS**

 

**Vintage**

 

**%** **of** **Total** **CMBS**

 

**Vintage**

AAA

 

95.1%

 

2008

 

0.3%

 

AAA

 

94.9%

 

2008

 

0.3%

AA

 

3.0%

 

2007

 

20.6%

 

AA

 

3.1%

 

2007

 

19.8%

A

 

1.7%

 

2006

 

16.9%

 

A

 

1.9%

 

2006

 

16.7%

BBB

 

0.2%

 

2005 and prior

 

62.2%

 

BBB

 

0.1%

 

2005 and prior

 

63.2%

 

 

100.0%

 

 

 

100.0%

 

 

 

100.0%

 

 

 

100.0%

 

The following tables summarize the Company’s exposure to Other ABS holdings by credit quality and vintage year as of June 30, 2009 and December 31, 2008:

 

**2009**

 

**2008**

**%** **of** **Total** **Other** **ABS**

 

**Vintage**

 

**%** **of** **Total** **Other** **ABS**

 

**Vintage**

AAA

 

56.2%

 

2008

 

6.3%

 

AAA

 

61.7%

 

2008

 

5.4%

AA

 

5.6%

 

2007

 

10.7%

 

AA

 

17.1%

 

2007

 

14.3%

A

 

20.6%

 

2006

 

25.5%

 

A

 

8.4%

 

2006

 

23.8%

BBB

 

16.9%

 

2005 and prior

 

57.5%

 

BBB

 

12.6%

 

2005 and prior

 

56.5%

BB and below

 

0.7%

 

 

 

100.0%

 

BB and below

 

0.2%

 

 

 

100.0%

 

 

100.0%

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

*Mortgage Loans on Real Estate*

 

Mortgage loans on real estate, primarily commercial mortgage loans, totaled $2,049.8 and $2,107.8 as of June 30, 2009 and December 31, 2008, respectively.  These loans are reported at amortized cost, less impairment write-downs.  If the value of any mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect on all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to either the present value of expected cash flows from the loan, discounted at the loan’s effective interest rate, or fair value of the collateral.  If the loan is in foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell.  As of June 30, 2009 and December 31, 2008, the Company had no allowance for mortgage loan creditlosses.  The properties collateralizing mortgage loans are geographically dispersed throughout the United States, with the largest concentration of properties in the following states as of June 30, 2009 and December 31, 2008.

 

 

**2009**

 

**2008**

California

16.0%

 

15.5%

New Jersey

11.3%

 

11.8%

Texas

10.2%

 

10.5%

 

69

 

 

 

*Unrealized Capital Losses*

 

Unrealized capital losses in fixed maturities, including securities pledged to creditors, for Investment Grade (“IG”) and Below Investment Grade (“BIG”) securities by duration were as follows as of June 30, 2009 and December 31, 2008.

 

 

 

 

**2009**

 

 

**2008**

 

 

 

 

 

**%** **of** **IG**

 

 

 

 

**%** **of** **IG**

 

 

 

 

**%** **of** **IG**

 

 

 

 

**%** **of** **IG**

 

 

 

**IG**

 

**and** **BIG**

 

 

**BIG**

 

**and** **BIG**

 

 

**IG**

 

**and** **BIG**

 

**BIG**

 

**and** **BIG**

Less than six months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

$

116.7 

 

10.1%

 

$

34.4 

 

2.9%

 

$

169.3 

 

9.6%

 

$

40.2 

 

2.3%

More than six months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and less than twelve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

months below 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

amortized cost

 

90.0 

 

7.7%

 

 

25.2 

 

2.1%

 

 

511.9 

 

29.1%

 

 

58.3 

 

3.3%

More than twelve months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

827.4 

 

70.7%

 

 

76.1 

 

6.5%

 

 

921.5 

 

52.3%

 

 

60.3 

 

3.4%

Total unrealized capital loss

$

1,034.1 

 

88.5%

 

$

135.7 

 

11.5%

 

$

1,602.7 

 

91.0%

 

$

158.8 

 

9.0%

 

Unrealized capital losses in fixed maturities as of June 30, 2009 and December 31, 2008, were primarily related to the effects of interest rate movement or spread widening on mortgage and other asset-backed securities.  Mortgage and other asset-backed securities include U.S. government-backed securities, principal protected securities, and structured securities, which did not have an adverse change in cash flows.  The following tables summarize the unrealized capital losses by duration and reason, along with the fair value of fixed maturities, including securities pledged to creditors, in unrealized capital loss positions as of June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

 

 

 

 

 

**More** **Than**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Less** **Than**

 

 

**Six** **Months**

 

 

**More** **Than**

 

 

 

 

 

 

 

 

 

 

 

 

**Six** **Months** 

 

 

**and** **less** **than**

 

 

**Twelve** **Months**

 

 

 

 

 

 

 

 

 

 

 

 

**Below**

 

 

**Twelve** **Months**

 

 

**Below**

 

 

 

 

 

 

 

 

 

 

 

 

**Amortized**

 

 

**Below**

 

 

**Amortized**

 

 

 

**2009**

 

 

 

 

 

 

**Cost**

 

 

**Amortized** **Cost**

 

 

**Cost**

 

 

**Total**

Interest rate or spread widening

$

73.4 

 

$

50.2 

 

$

265.8 

 

$

389.4 

Mortgage and other asset-backed 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

 

77.7 

 

 

65.0 

 

 

637.7 

 

 

780.4 

Total unrealized capital loss

$

151.1 

 

$

115.2 

 

$

903.5 

 

$

1,169.8 

Fair value

 

 

 

$

748.7 

 

$

1,084.8 

 

$

4,689.6 

 

$

6,523.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate or spread widening

$

144.2 

 

$

381.7 

 

$

383.5 

 

$

909.4 

Mortgage and other asset-backed 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

 

 

65.3 

 

 

188.5 

 

 

598.3 

 

 

852.1 

Total unrealized capital loss

$

209.5 

 

$

570.2 

 

$

981.8 

 

$

1,761.5 

Fair value

 

 

 

$

2,999.6 

 

$

3,446.7 

 

$

2,964.2 

 

$

9,410.5 

 

 

70

 

 

Unrealized capital losses, along with the fair value of fixed maturities, including securities pledged to creditors, by market sector and duration were as follows as of June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

 

**More** **Than** **Six**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Months** **and** **Less** **Than**

 

**More** **Than** **Twelve**

 

 

 

 

 

 

 

 

**Less** **Than** **Six** **Months**

 

**Twelve** **Months**

 

**Months** **Below**

 

**Total** **Unrealized**

 

 

**Below** **Amortized** **Cost**

 

**Below** **Amortized** **Cost**

 

**Amortized** **Cost**

 

**Capital** **Loss**

 

 

**Fair** **Value**

 

**Loss**

 

**Fair** **Value**

 

**Loss**

 

**Fair** **Value**

 

**Loss**

 

**Fair** **Value**

 

**Loss**

**2009**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

$

139.4 

 

$

0.5 

 

$

452.5 

 

$

3.8 

 

$

-  

 

$

-  

 

$

591.9 

 

$

4.3 

U.S. government 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

agencies and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

authorities

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

 

 

-  

U.S. corporate, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

state, and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

333.8 

 

 

42.7 

 

 

417.7 

 

 

32.2 

 

 

1,517.8 

 

 

169.9 

 

 

2,269.3 

 

 

244.8 

Foreign

 

109.7 

 

 

30.2 

 

 

141.7 

 

 

14.2 

 

 

975.4 

 

 

95.9 

 

 

1,226.8 

 

 

140.3 

Residential 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

117.0 

 

 

17.6 

 

 

43.9 

 

 

11.8 

 

 

761.3 

 

 

178.3 

 

 

922.2 

 

 

207.7 

Commercial 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

19.5 

 

 

45.4 

 

 

24.3 

 

 

44.0 

 

 

1,108.3 

 

 

280.9 

 

 

1,152.1 

 

 

370.3 

Other asset-backed

 

29.3 

 

 

14.7 

 

 

4.7 

 

 

9.2 

 

 

326.8 

 

 

178.5 

 

 

360.8 

 

 

202.4 

Total unrealized 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

capital loss

$

748.7 

 

$

151.1 

 

$

1,084.8 

 

$

115.2 

 

$

4,689.6 

 

$

903.5 

 

$

6,523.1 

 

$

1,169.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

$

482.8 

 

$

0.9 

 

$

-  

 

$

-  

 

$

-  

 

$

-  

 

$

482.8 

 

$

0.9 

U.S. government 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

agencies and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

authorities

 

6.9 

 

 

0.5 

 

 

5.7 

 

 

0.7 

 

 

-  

 

 

-  

 

 

12.6 

 

 

1.2 

U.S. corporate, 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

state, and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

1,178.1 

 

 

92.2 

 

 

1,528.0 

 

 

244.1 

 

 

686.9 

 

 

235.6 

 

 

3,393.0 

 

 

571.9 

Foreign

 

493.0 

 

 

50.6 

 

 

859.9 

 

 

136.9 

 

 

489.8 

 

 

147.9 

 

 

1,842.7 

 

 

335.4 

Residential 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

664.0 

 

 

48.7 

 

 

610.9 

 

 

94.0 

 

 

646.6 

 

 

124.0 

 

 

1,921.5 

 

 

266.7 

Commercial 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

mortgage-backed

 

86.8 

 

 

2.9 

 

 

285.4 

 

 

69.5 

 

 

821.5 

 

 

298.1 

 

 

1,193.7 

 

 

370.5 

Other asset-backed

 

88.0 

 

 

13.7 

 

 

156.8 

 

 

25.0 

 

 

319.4 

 

 

176.2 

 

 

564.2 

 

 

214.9 

Total unrealized 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

capital loss

$

2,999.6 

 

$

209.5 

 

$

3,446.7 

 

$

570.2 

 

$

2,964.2 

 

$

981.8 

 

$

9,410.5 

 

$

1,761.5 

 

Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities was 83.7% of the average book value as of June 30, 2009.  In addition, this category includes 1,724 securities, which have an average quality rating of A+.  

 

71

 

 

 

Unrealized capital losses in fixed maturities, including securities pledged to creditors, for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows for June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

**Amortized** **Cost**

 

 

**Unrealized** **Capital** **Loss**

 

**Number** **of** **Securities**

 

 

 

 

 

 

 

**<** **20%**

 

 

**>** **20%**

 

 

**<** **20%**

 

 

**>** **20%**

 

**<** **20%**

 

**>** **20%**

**2009**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than six months below

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

amortized cost

$

620.7 

 

$

279.1 

 

$

13.2 

 

$

137.9 

 

166 

 

110 

More than six months and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

less than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

1,051.2 

 

 

148.8 

 

 

31.2 

 

 

84.0 

 

399 

 

89 

More than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

3,787.0 

 

 

1,806.1 

 

 

266.8 

 

 

636.7 

 

1,083 

 

662 

Total

 

 

 

$

5,458.9 

 

$

2,234.0 

 

$

311.2 

 

$

858.6 

 

1,648 

 

861 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than six months below

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

amortized cost

$

2,860.5 

 

$

348.6 

 

$

118.7 

 

$

90.8 

 

845 

 

303 

More than six months and 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

less than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

2,618.0 

 

 

1,398.9 

 

 

199.5 

 

 

370.7 

 

791 

 

618 

More than twelve months 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

below amortized cost

 

1,541.4 

 

 

2,404.6 

 

 

141.8 

 

 

840.0 

 

412 

 

831 

Total

 

 

 

$

7,019.9 

 

$

4,152.1 

 

$

460.0 

 

$

1,301.5 

 

2,048 

 

1,752 

 

 

72

 

 

Unrealized capital losses in fixed maturities, including securities pledged to creditors, by market sector for instances in which fair value decline below amortized cost by greater than or less than 20% were as follows for June 30, 2009 and December 31, 2008.

 

 

 

 

 

 

 

 

**Amortized** **Cost**

 

 

**Unrealized** **Capital** **Loss**

 

**Number** **of** **Securities**

 

 

 

 

 

 

 

**<** **20%**

 

 

**>** **20%**

 

 

**<** **20%**

 

 

**>** **20%**

 

**<** **20%**

 

**>** **20%**

**2009**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

$

596.2 

 

$

-  

 

$

4.3 

 

$

-  

 

18 

 

- 

U.S. government agencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and authorities

 

-  

 

 

-  

 

 

-  

 

 

-  

 

- 

 

- 

U.S. corporate, state and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

2,032.5 

 

 

481.6 

 

 

100.9 

 

 

143.9 

 

811 

 

219 

Foreign

 

 

 

1,125.9 

 

 

241.2 

 

 

59.0 

 

 

81.3 

 

512 

 

261 

Residential mortgage-backed

 

678.2 

 

 

451.7 

 

 

59.6 

 

 

148.1 

 

131 

 

171 

Commercial mortgage-backed

 

812.0 

 

 

710.4 

 

 

71.3 

 

 

299.0 

 

122 

 

81 

Other asset-backed

 

214.1 

 

 

349.1 

 

 

16.1 

 

 

186.3 

 

54 

 

129 

Total

 

 

 

$

5,458.9 

 

$

2,234.0 

 

$

311.2 

 

$

858.6 

 

1,648 

 

861 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**2008**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

$

483.7 

 

$

-  

 

$

0.9 

 

$

-  

 

15 

 

- 

U.S. government agencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and authorities

 

13.8 

 

 

-  

 

 

1.2 

 

 

-  

 

16 

 

- 

U.S. corporate, state and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

municipalities

 

2,659.5 

 

 

1,305.4 

 

 

178.9 

 

 

393.0 

 

1,004 

 

801 

Foreign

 

 

 

1,392.8 

 

 

785.3 

 

 

102.6 

 

 

232.8 

 

572 

 

572 

Residential mortgage-backed

 

1,612.2 

 

 

576.0 

 

 

100.4 

 

 

166.3 

 

252 

 

109 

Commercial mortgage-backed

 

533.9 

 

 

1,030.3 

 

 

51.0 

 

 

319.5 

 

93 

 

129 

Other asset-backed

 

324.0 

 

 

455.1 

 

 

25.0 

 

 

189.9 

 

96 

 

141 

Total

 

 

 

$

7,019.9 

 

$

4,152.1 

 

$

460.0 

 

$

1,301.5 

 

2,048 

 

1,752 

 

For the six months ended June 30, 2009, unrealized capital losses on fixed maturities decreased by $591.7 primarily due to a slight reduction in credit spreads and the derecognition of 80% of the Alt-A RMBS securities owned by the Company as a result of the Alt-A transaction with the Dutch State. 

 

At June 30, 2009 and December 31, 2008, the Company held 9 and 8 fixed maturities, respectively, with unrealized capital losses in excess of $10 million.  The unrealized capital losses on these fixed maturities equaled $122.1, or 10.4% of the total unrealized capital losses, as of June 30, 2009.  The unrealized capital losses on these fixed maturities equaled $206.3, or 11.7% of the total unrealized capital losses, as of December 31, 2008.

 

All securities with fair values less than amortized cost are included in the Company's other-than-temporary impairment analysis, and impairments were recognized as disclosed in "Other-Than-Temporary Impairments," which follows this section.  Management determined that no additional recognition of the unrealized loss as an other-than-temporary impairment was necessary.

 

73

 

 

*Other-Than-Temporary Impairments*

 

The Company analyzes its general account investments to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. Factors considered in this analysis include, but are not limited to, the length of time and the extent to which the fair value has been less than amortized cost, the issuer’s financial condition and near-term prospects, future economic conditions and market forecasts, interest rate changes, and changes in ratings of the security.

 

When assessing the Company’s intent to sell a security or if it is more likely than not it will be required to sell a security before recovery of its cost basis, management evaluates facts and circumstances such as, but not limited to, decisions to rebalance our investment portfolio and sales of investments to meet cash flow needs.

 

When the Company has determined it has the intent to sell or if it is more likely than not that it will be required to sell a security before recovery of its amortized cost basis and the fair value has declined below amortized cost (“intent impairment”) the individual security is written down from amortized cost to fair value and a corresponding charge is recorded in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations as an other-than-temporary impairment ("OTTI"). If the Company does not intend to sell the security nor is it more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI is bifurcated into the amount representing the present value of the decrease in cash flows expected to be collected (“credit impairment”) and the amount related to other factors(“noncredit impairment”).  The credit impairment is recorded in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations. The noncredit impairment is recorded in Other comprehensive income (loss) on the Condensed Consolidated Balance Sheets in accordance with the requirements of FSP FAS 115-2 and FAS 124-2.

 

In order to determine the amount of the OTTI of a security that is considered a credit impairment, we estimate the recovery value by performing a discounted cash flow analysis based upon the best estimate of expected future cash flows, discounted at the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield for a fixed rate security or current coupon yield for a floating rate security.

 

74

 

 

The following tables identify the Company’s credit and intent impairments included in the Condensed Consolidated Statements of Operations, excluding noncredit impairments included in Other comprehensive income (loss), by type for the three and six months ended June 30, 2009 and 2008.

 

 

 

**Three** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

118.8 

 

13 

 

$

-  

 

- 

U.S. corporate

 

10.5 

 

13 

 

 

18.3 

 

34 

Foreign(1)

 

18.5 

 

7 

 

 

5.1 

 

8 

Residential mortgage-backed

 

8.6 

 

12 

 

 

19.6 

 

12 

Other asset-backed

 

7.5 

 

7 

 

 

13.5 

 

12 

Limited partnerships

 

4.3 

 

2 

 

 

1.1 

 

1 

Equity securities

 

3.0 

 

2 

 

 

3.7 

 

2 

Mortgage loans on real estate

 

-  

 

- 

 

 

2.4 

 

1 

Total

$

171.2 

 

56 

 

$

63.7 

 

70 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

151.9 

 

18 

 

$

-  

 

- 

U.S. corporate

 

34.0 

 

51 

 

 

36.5 

 

75 

Foreign(1)

 

44.8 

 

29 

 

 

15.2 

 

27 

Residential mortgage-backed

 

44.4 

 

55 

 

 

33.4 

 

21 

Other asset-backed

 

22.0 

 

22 

 

 

20.9 

 

22 

Limited partnerships

 

15.0 

 

16 

 

 

1.1 

 

1 

Equity securities

 

18.5 

 

8 

 

 

3.7 

 

2 

Mortgage loans on real estate

 

-  

 

- 

 

 

2.4 

 

1 

Total

$

330.6 

 

199 

 

$

113.2 

 

149 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

The above schedules include $26.6 and $73.8 for the three and six months ended June 30, 2009, respectively, and $51.8 and $74.0 for the three and six months ended June 30, 2008, respectively, in other-than-temporary write-downs related to credit impairments, which are recognized in earnings. The remaining write-downs reflected in the schedules above are related to intent impairments.

 

75

 

 

The following tables summarize these intent impairments, which are also recognized in earnings, by type for the three and six months ended June 30, 2009 and 2008.

 

 

 

**Three** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

118.8 

 

13 

 

$

-  

 

- 

U.S. corporate

 

8.7 

 

12 

 

 

8.9 

 

32 

Foreign(1)

 

17.1 

 

6 

 

 

3.0 

 

6 

Total

$

144.6 

 

31 

 

$

11.9 

 

38 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,** 

 

 

**2009**

 

 

**2008**

 

 

 

 

**No.** **of**

 

 

 

 

**No.** **of**

 

 

**Impairment**

 

**Securities**

 

 

**Impairment**

 

**Securities**

U.S. Treasuries

$

151.9 

 

18 

 

$

-  

 

- 

U.S. corporate

 

25.2 

 

35 

 

 

24.3 

 

64 

Foreign(1)

 

43.4 

 

28 

 

 

13.1 

 

25 

Residential mortgage-backed

 

22.5 

 

8 

 

 

1.8 

 

1 

Other asset-backed

 

13.8 

 

6 

 

 

-  

 

- 

Total

$

256.8 

 

95 

 

$

39.2 

 

90 

(1) Primarily U.S. dollar denominated.

 

 

 

 

 

 

 

 

 

 

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities or cost for equity securities.  In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security.

 

The following table identifies the noncredit impairments recognized in Accumulated other comprehensive income (loss) by type for the three and six months ended June 30, 2009. No difference exists between the three and six months ended June 30, 2009 figures, as this treatment was effective April 1, 2009, with the implementation of FSP FAS 115-2 and FAS 124-2.

 

 

 

 

 

 

 

**Three** **and** **Six** **Months** 

 

 

 

 

 

 

**Ended** **June** **30,** **2009**

 

 

 

 

 

 

 

 

 

**No.** **of**

 

 

 

 

 

 

 

**Impairment**

 

**Securities**

U.S. corporate

$

3.6 

 

3 

Foreign(1)

 

 

0.1 

 

3 

Residential mortgage-backed

 

10.2 

 

14 

Other asset-backed

 

0.4 

 

6 

Total

 

 

 

$

14.3 

 

26 

(1)

Primarily U.S. dollar denominated.

 

 

 

 

 

 

76

 

 

The remaining fair value of fixed maturities with other-than-temporary impairments as of June 30, 2009 and 2008 was $2,687.8 and $1,177.4, respectively.

 

*Net Realized Capital Gains (Losses)*

 

Net realized capital gains (losses) are comprised of the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to credit-related and intent-related other-than-temporary impairment of investments and changes in fair value of derivatives.  The cost of the investments on disposal is determined based on specific identification of securities.  Net realized capital gains (losses) on investments were as follows for the three and six months end June 30, 2009 and 2008.

 

 

 

 

 

 

 

 

 

 

**Three** **Months** **Ended** **June** **30,**

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Fixed maturities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(163.9) for 2009

 

$

(122.8)

 

$

(97.3)

Equity securities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(3.0) for 2009

 

 

1.7 

 

 

(3.3)

Derivatives

 

 

 

(183.3)

 

 

23.2 

Other investments including net OTTI of $(4.3) for 2009

 

 

2.2 

 

 

(2.8)

Less: allocation to experience-rated contracts, including

 

 

 

 

 

 

 

net OTTI of $(93.3) for 2009

 

 

(65.4)

 

 

12.8 

Net realized capital losses

 

$

(236.8)

 

$

(93.0)

After-tax net realized capital losses

 

$

(153.9)

 

$

(60.5)

 

 

 

 

 

 

 

 

 

 

**Six** **Months** **Ended** **June** **30,**

 

 

 

 

 

 

 

 

 

**2009**

 

 

**2008**

Fixed maturities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(297.1) for 2009

 

$

(99.7)

 

$

(98.1)

Equity securities, available-for-sale, including net OTTI

 

 

 

 

 

 

 

of $(18.5) for 2009

 

 

(13.5)

 

 

(5.1)

Derivatives

 

 

 

(138.2)

 

 

(81.8)

Other investments including net OTTI of $(15.0) for 2009

 

 

(11.1)

 

 

(3.0)

Less: allocation to experience-rated contracts, including 

 

 

 

 

 

 

 

net OTTI of $(169.8) for 2009

 

 

(78.2)

 

 

(35.1)

Net realized capital losses

 

$

(184.3)

 

$

(152.9)

After-tax net realized capital losses

 

$

(119.8)

 

$

(99.4)

 

The increase in *Total net realized capital losses*for the three and six months ended June 30, 2009, was primarily due to futures used to hedge fee income on variable products. The futures were in a short position, and as such, their fair value decreased when equity markets rose during 2009. The Company did not have exposure to futures during the first half of 2008. The year-to-date losses were partially offset by a gain of $206.2 recognized in the first quarter of 2009 on the transfer of an 80% interest in the Company’s Alt-A residential mortgage-backed securities to the Dutch State.

 

77

 

 

 

Net realized capital gains (losses) allocated to experience-rated contracts are deducted from Net realized capital gains (losses), with an offsetting amount reflected in Future policy benefits and claims reserves on the Condensed Consolidated Balance Sheets.  During 2008 and continuing in 2009, as a result of the economic environment, which resulted in significant realized losses associated with experience-rated contracts, the Company accelerated amortization of realized losses rather than reflecting these losses in Future policy benefits and claims reserves.  For the six months ended June 30, 2009 and 2008, the Company fully amortized $78.2 and $0, respectively, of net unamortized realized capital losses allocated to experience-rated contractowners, which are reflected in Interest credited and other benefits to contractowners in the Condensed Consolidated Statements of Operations.

 

**Liquidity and Capital Resources**

Liquidity is the ability of the Company to generate sufficient cash flows to meet the cash requirements of operating, investing, and financing activities. 

 

*Sources and Uses of Liquidity*

The Company’s principal available sources of liquidity are product charges, investment income, proceeds from the maturity and sale of investments, proceeds from debt issuance and borrowing facilities, repurchase agreements, securities lending, and capital contributions.  Primary uses of these funds are payments of commissions and operating expenses, interest credits, investment purchases, and contract maturities, withdrawals, and surrenders.

 

The Company’s liquidity position is managed by maintaining adequate levels of liquid assets, such as cash, cash equivalents, and short-term investments.  Asset/liability management is integrated into many aspects of the Company’s operations, including investment decisions, product development, and determination of crediting rates.  As part of the risk management process, different economic scenarios are modeled, including cash flow testing required for insurance regulatory purposes, to determine that existing assets are adequate to meet projected liability cash flows.  Key variables in the modeling process include interest rates, equity market movements, quantity and type of interest and equity market hedges, anticipated contractowner behavior, market value of general account assets, and variable separate account performance.  Contractowners bear the investment risk related tovariable annuity products, subject, in limited cases, to certain minimum guaranteed rates.

 

The fixed account liabilities are supported by a general account portfolio, principally composed of fixed rate investments with matching duration characteristics that can generate predictable, steady rates of return.  The portfolio management strategy for the fixed account considers the assets available-for-sale.  This strategy enables the Company to respond to changes in market interest rates, prepayment risk, relative values of asset sectors and individual securities and loans, credit quality outlook, and 

 

78

 

 

other relevant factors.  The objective of portfolio management is to maximize returns, taking into account interest rate and credit risk, as well as other risks.  The Company’s asset/liability management discipline includes strategies to minimize exposure to loss as interest rates and economic and market conditions change. In executing this strategy, the Company uses derivative instruments to manage these risks. The Company’s derivative counterparties are of high credit quality. As of June 30, 2009, the Company held net derivative liabilities with a fair value of $270.2.

 

*2009 Initiatives*

 

In the first half of 2009, the Company took certain actions to reduce its exposure to interest rate and market risks.  These actions included reducing guaranteed interest rates for new business, reducing credited rates on existing business, curtailing sales of some products, reassessment of the investment strategy, as well as continuing a short-term program to hedge certain equity market risks associated with variable fee income.  During the balance of 2009, the Company will be monitoring these initiatives and their financial impacts, and will determine whether further actions are necessary.

 

*Liquidity and Capital Reserves*

Additional sources of liquidity include borrowing facilities to meet short-term cash requirements that arise in the ordinary course of business.  ILIAC maintains the following agreements:

 

 

§

A reciprocal loan agreement with ING America Insurance Holdings, Inc. (“ING AIH”), an affiliate, whereby either party can borrow from the other up to 3.0% of ILIAC’s statutory admitted assets as of the prior December 31.  As of June 30, 2009, the Company had a $590.2 receivable, including interest, from ING AIH and no amounts due to or due from ING AIH as of December 31, 2008.

 

§

A $50.0 uncommitted, perpetual revolving note facility with the Bank of New York.  As of June 30, 2009 and December 31, 2008, ILIAC had no amounts outstanding under the revolving note facility.  

 

Management believes that its sources of liquidity are adequate to meet the Company’s short-term cash obligations.

 

*Capital Contributions and Dividends*

During the six months ended June 30, 2009, the Company received a $365.0 capital contribution from its Parent. During the six months ended June 30, 2008, ILIAC did not receive any capital contributions from its Parent.

 

During the six months ended June 30, 2009 and 2008, ILIAC did not pay any dividends on its common stock to its Parent.

 

79

 

 

*Cash Collateral*

 

Under the terms of the Company’s Over-The-Counter Derivative International Swaps and Derivatives Association, Inc. Agreements (“ISDA Agreements”), the Company may receive from, or deliver to, counterparties, collateral to assure that all terms of the ISDA Agreements will be met with regard to the Credit Support Annex (“CSA”).  The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate.  As of June 30, 2009 and December 31, 2008, the Company held $0.3 and $4.4, respectively, of cash collateral, which was included in Payables under securities loan agreement, including collateral held, on the Condensed Consolidated Balance Sheets.

 

*Transfer of Alt-A RMBS Participation Interest*

 

On January 26, 2009, ING  announced it reached an agreement, for itself and on behalf of certain ING affiliates including the Company, with the Dutch State on the Back-up Facility covering 80% of ING’s Alt-A RMBS.  Under the terms of the Back-up Facility, a full credit risk transfer to the Dutch State was realized on 80% of ING’s Alt-A RMBS owned by ING Bank, FSB and ING affiliates within ING Insurance Americas with a book value of $36.0 billion portfolio, including book value of $802.5 of the Alt-A RMBS portfolio with respect to the Designated Securities Portfolio (the “ING-Dutch State Transaction”).  As a result of the risk transfer, the Dutch State will participate in 80% of any results of the ING Alt-A RMBS portfolio.  The risk transfer to the Dutch State took place at a discount of approximately 10% of par value.  In addition, under the Back-up Facility, otherfees were paid both by the Company and the Dutch State.  Each ING company participating in the ING-Dutch State Transaction, including the Company remains the legal owner of 100% of its Alt-A RMBS portfolio and will remain exposed to 20% of any results on the portfolio.  The ING-Dutch State Transaction closed on March 31, 2009, with the affiliate participation conveyance and risk transfer to the Dutch State described in the succeeding paragraph taking effect as of January 26, 2009.

 

In order to implement that portion of the ING-Dutch State Transaction related to the Company’s Designated Securities Portfolio, the Company entered into a  participation agreement with its affiliates, ING Support Holding and ING pursuant to which the Company conveyed to ING Support Holding an 80% participation interest in its Designated Securities Portfolio and will pay a periodic transaction fee, and received, as consideration for the participation, an assignment by ING Support Holding of its right to receive payments from the Dutch State under the Illiquid Assets Back-Up Facility related to the Company’s Designated Securities Portfolio among, ING, ING Support Holding and the Dutch State (the “Company Back-Up Facility”).  Under the Company Back-Up Facility, the Dutch State is obligated to pay certain periodic fees and make certain periodic payments with respect tothe Company’s Designated Securities Portfolio, and ING Support Holding is obligated to pay a periodic guarantee fee and make periodic payments to the Dutch State equal to the distributions made with respect to the 80% participation interest in the Company’s Designated Securities Portfolio.  

 

80

 

 

The Dutch State payment obligation to the Company under the Back-Up Facility is accounted for as a loan receivable for U.S. GAAP and is reported in Loan - Dutch State obligation on the Condensed Consolidated Balance Sheets.

 

Upon the closing of the transaction on March 31, 2009, the Company recognized a gain of $206.2, which was reported in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations.

 

In a second transaction, known as the Step 1 Cash Transfer, a portion of the Company’s Alt-A RMBS which had a book value of $4.2 was sold for cash to an affiliate, Lion II.  Immediately thereafter, Lion II sold to ING Direct Bancorp the purchased securities (the “Step 2 Cash Transfer”). Contemporaneous with the Step 2 Cash Transfer, ING Direct Bancorp included such purchased securities as part of its Alt-A RMBS portfolio sale to the Dutch State.  The Step 1 Cash Transfer closed on March 31, 2009, and the Company recognized a gain of $0.3 contemporaneous with the closing of the ING-Dutch State Transaction, which was reported in Net realized capital gains (losses) on the Condensed Consolidated Statements of Operations.

 

*Ratings*

 

On July 9, 2009, S&P downgraded the financial strength rating of ING’s primary U.S. insurance operating companies (“ING U.S.”), including the Company, to A+ from AA- and removed the ratings from CreditWatch with negative implications, where they were placed on April 16, 2009. S&P maintained a negative outlook on the rating of ING U.S., including the Company. In April 2009, S&P announced that it had placed ING U.S., including the Company, on CreditWatch-negative until completion of its evaluation of the effects of ING’s strategic changes on each of its subsidiaries.

 

On January 28, 2009, Moody’s downgraded the insurance financial ratings of ING U.S., including the Company, to A1 from Aa3 and removed its outlook from Negative to Stable.  Moody’s also, on that date, affirmed the short-term financial strength rating of Prime-1 (P-1) for the Company.

 

On April 24, 2009, A.M. Best Company, Inc. (“A.M. Best”) downgraded the financial strength rating to A (Excellent) from A+ (Superior) and issuer credit ratings to a+ from aa- for ING U.S., including the Company. The outlook for ILIAC has been revised to negative.

 

On August 12, 2009, Fitch Ratings Ltd. (“Fitch”) downgraded its ratings for ING U.S. from AA- to A and kept its outlook at Negative.

 

In response to weakening global markets, the rating agencies have been continuously re-evaluating their ratings of banks and insurance companies around the world. Over the past several quarters, the rating agencies have adjusted their outlook of the financial services industry overall downward, while reviewing the individual ratings they give to specific entities. The downgrades of the Company by S&P, Fitch, A.M. Best and Moody’s reflect a broader view of how the financial services industry is 

 

81

 

 

being challenged by the current economic environment, but also are based on the rating agencies’ specific views of the Company’s financial strength.  In making their ratings decisions the agencies consider past and expected future capital and earnings, asset quality and risk, profitability and risk of existing liabilities and current products, market share and product distribution capabilities, and direct or implied support from parent companies, among other factors.

 

*Repurchase Agreements*

 

The Company engages in dollar repurchase agreements (“dollar rolls”) and repurchase agreements to increase its return on investments and improve liquidity.  These transactions involve a sale of securities and an agreement to repurchase substantially the same securities as those sold.  Company policies typically require a minimum of 95% of the fair value of securities pledged under dollar rolls and repurchase agreement transactions to be maintained as collateral.  Cash collateral received is invested in fixed maturities, and the offsetting collateral liability is included in Borrowed money on the Consolidated Balance Sheets.  At June 30, 2009 and December 31, 2008, the carrying value of the securities pledged in dollar rolls and repurchase agreement transactions was $48.9 and $657.2, respectively, and is included in Securities pledged on the Consolidated Balance Sheets.The repurchase obligation related to dollar rolls and repurchase agreements, including accrued interest, totaled $48.5 and $615.3 at June 30, 2009 and December 31, 2008, respectively, and is included in Borrowed money on the Consolidated Balance Sheets.

 

In certain instances, fair value of collateral received by the Company may fall below 95% of the fair value of securities pledged under dollar rolls and repurchase agreement transactions. The Company monitors the fair value of collateral for material declines below the 95% threshold and if deemed necessary, requires additional collateral to restore collateral maintained to 95% of the fair value of securities pledged.

 

The Company also enters into reverse repurchase agreements.  These transactions involve a purchase of securities and an agreement to sell substantially the same securities as those purchased.  Company policies require a minimum of 102% of the fair value of securities pledged under reverse repurchase agreements to be pledged as collateral.  At June 30, 2009 and December 31, 2008, the Company did not have reverse repurchase agreements.  Reverse purchase agreements would be included in Cash and cash equivalents on the Consolidated Balance Sheets.

 

The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract.  The Company’s exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, an amount that was immaterial at June 30, 2009.  The Company believes the counterparties to the dollar roll, repurchase, and reverse repurchase agreements are financially responsible and that the counterparty risk is minimal.

 

82

 

 

*Securities Lending*

 

The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time.  Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities.  The collateral is deposited by the borrower with a lending agent, and retained and invested by the lending agent according to the Company’s guidelines to generate additional income.  The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. At June 30, 2009 and December 31, 2008, the fair value of loan securities was $702.2 and $662.7, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets.

 

**Recently Adopted Accounting Standards**

 

(See the Recently Adopted Accounting Standards and New Accounting Pronouncements footnotes to the condensed consolidated financial statements.)

 

**Legislative and Regulatory Initiatives**

 

Legislative proposals, which have been or may again be considered by Congress, include changing the taxation of annuity benefits, changing the tax treatment of insurance products relative to other financial products, and changing life insurance company taxation.  Some of these proposals, if enacted, could have a material adverse effect on life insurance, annuity, and other retirement savings product sales, while others could have a material beneficial effect.  Legislation has been reintroduced to increase disclosure of 401(k) and other defined contribution plan fees charged by plan investment and service providers.  Legislative or regulatory action to change fee disclosure requirements could adversely impact the market for certain of the Company’s defined contribution retirement services products, but the timing and content of such changes are uncertain at this time.  In addition,it is possible that under the new Administration, the Department of Labor will revisit regulations concerning the fee disclosure obligations of defined contribution service providers.  As a result of recent economic conditions, there has been increased Congressional interest in proposals to reform the structure and regulation of retirement plans, in some cases significantly.  The timing and content of such proposed changes are uncertain.  The IRS and the Treasury have published final regulations, which became effective January 1, 2009, that update and consolidate the rules applicable to 403(b) tax deferred annuity arrangements.  The final regulations impose broad written plan document and operational compliance requirements on all 403(b) programs and contain new restrictions on annuity exchanges.  The final regulations have the potential to change the marketplace for 403(b) service providers in a fundamental way and could have a material beneficial effect on providers that positionthemselves to assist 403(b) sponsors with plan document and operational compliance or otherwise assist with streamlining overall plan administration.  For a description of Revenue Ruling 2007-61 issued by the IRS in September of 2007, see the “Liquidity and Capital Resources, Income Taxes” section of “Management’s Narrative Analysis of the Results of Operations and Financial Condition” in the Company’s 2008 Annual Report on Form 10-K.

 

83

 

 

 

In connection with the March 31, 2009 transfer by ING of an economic interest in 80% of its Alt-A RMBS portfolio to the Dutch State, the European Commission (the "EC") has a six month period to review and assess the competitive impact of the transaction. ING has submitted its proposed plan of restructuring to the EC, consistent with the global business strategy it announced on April 9, 2009. ING and the Dutch State remain in discussions with the EC to address perceived competitive advantages conferred on ING by virtue of state aid provided in the form of a capital infusion of EUR 10 billion on November 12, 2008, and the Alt-A transaction.

 

**Item 4.**

**Controls and Procedures**

 

a)

The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of the end of the period covered by this report.  Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company’s current disclosure controls and procedures are effective in ensuring that material information relating to the Company required to be disclosed in the Company’s periodic SEC filings is made known to them in a timely manner.

 

 

b)

There has not been any change in the internal controls over financial reporting of the Company that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect these internal controls.

 

84

 

 

**PART II.**

**OTHER INFORMATION**

**Item 1.**

**Legal Proceedings**

 

ING Life Insurance and Annuity Company (“ILIAC”) and its wholly-owned subsidiaries (collectively, the “Company”) are involved in threatened or pending lawsuits/arbitrations arising from the normal conduct of business.  Due to the climate in insurance and business litigation/arbitrations, suits against the Company sometimes include claims for substantial compensatory, consequential, or punitive damages, and other types of relief.  Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals.  While it is not possible to forecast the outcome of such lawsuits/arbitrations, in light of existing insurance, reinsurance, and established reserves, it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a materially adverse effect on the Company’s operations or financial position.

 

As with many financial services companies, the Company and its affiliates have received informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the financial services industry.  In each case, the Company and its affiliates have been and are providing full cooperation.  For information on the focus of such regulatory inquiries and the actions undertaken by ING in connection therewith, see the “Other Regulatory Matters” section of “Management’s Narrative Analysis of the Results of Operations and Financial Condition” included in the Company’s 2008 Annual Report on Form 10-K filed on March 31, 2009 (SEC File No. 033-23376).

 

**Item 1A.**

**Risk Factors**

 

The following should be read in conjunction with and supplements and amends the risk factors that may affect the Company’s business or operations described under “Risk Factors” in Part I, Item 1A. of the 2008 Annual Report on Form 10-K.

 

*The current financial crisis reached unprecedented levels of market volatility and has adversely affected and may continue to adversely affect the Company’s business and results of operations*

 

Markets in the United States and elsewhere have experienced extreme volatility and disruption for more than twelve months, due largely to the stresses affecting the global financial systems, which accelerated significantly in the second half of 2008.  The United States has entered a severe recession that is likely to persist throughout and even beyond 2009, despite past and future expected governmental intervention in the world’s major economies.  These circumstances have exerted significant downward pressure on prices of equity securities and virtually all other asset classes and have resulted in substantially increased market volatility, severely constrained credit and 

 

85

 

 

capital markets, particularly for financial institutions, and an overall loss of investor confidence. Economic conditions continued to be volatile in 2009.  These market conditions have affected and may continue to affect the Company’s results of operations and investment portfolio since the Company is exposed to significant financial and capital markets risk, including changes in interest rates, credit spreads and equity prices.

 

The Company’s exposure to interest rate risk relates primarily to the market price and cash flow variability associated with changes in interest rates and minimum credited interest rate guarantees.  Changes in interest rates may be caused by either changes in the underlying risk-free rates or changes in the credit spreads required for various levels of risk within the market.  A rise in interest rates or widening of credit spreads will increase the net unrealized loss position of the Company’s investment portfolio and, if long-term interest rates rise dramatically within a six to twelve month time period, certain contractowners may surrender their contracts, requiring the Company to liquidate assets in an unrealized loss position.  Due to the long-term nature of the liabilities associated with certain of the Company’s products, sustained declines in long term interestrates may subject the Company to reinvestment risks and spread compression.  As interest rates decline, borrowers may prepay or redeem mortgages and other investments with embedded call options.  This may force the Company to reinvest the proceeds at lower interest rates. Also the reinvestment of proceeds at lower interest rates could cause spread compression, (i.e., the difference between the net rate earned by the Company and the rates credited to customers of the Company could be lower than the spread assumed by the Company in product pricing).  In extreme situations, the rates earned by the Company could be lower than the credited rates guaranteed to the customers. The net result will be lower earnings to the Company.

 

In addition, a reduction in market liquidity has made it difficult to value certain of the Company’s securities as trading has become less frequent.  As such, valuations may include assumptions or estimates that may be more susceptible to significant changes which could have a material adverse effect on the Company’s results of operations or financial condition.

 

Adverse interest rates and widening credit spreads may have an impact on the fair value of the Company’s product guarantees that are accounted for as free-standing or embedded derivatives.  A portion of this business has guarantees at 3%.  In low interest rate environments, the Company is at risk of crediting rates higher than it can earn, thus creating an asset/liability mismatch.  Risk also exists in a rising interest rate environment, where an increased level of book value withdrawals causes greater losses than can be recovered through future adjustments to credited rates.  

 

Another important primary exposure to equity risk relates to the potential for lower earnings associated with variable annuities where fee income is earned based upon the fair value of the assets under management.  During the past twelve to eighteen months, the overall declines in equity markets have negatively impacted assets under management.  As a result, fee income earned on the value of those assets under management has also been negatively impacted. 

 

86

 

 

*Continuing adverse financial market conditions may significantly affect the Company’s ability to meet liquidity needs, access to capital and cost of capital*

 

Adverse capital market conditions may affect the availability and cost of borrowed funds, including commercial paper, thereby ultimately impacting profitability and ability to support or grow the businesses.  While the Company has various sources of liquidity available, sustained adverse market conditions could impact the cost and availability of these borrowing sources, including the availability and cost of securities lending or reverse repurchase agreement funding.  The Company and its affiliates may not be able to raise sufficient capital as and when required if the financial markets remain in turmoil, and any capital raised may be on unfavorable terms. The Company’s access to bank issued letters of credit could be reduced or only be available on unfavorable terms. Any sales of securities or other assets may be completed on unfavorable terms or cause the Company to incur losses. Once disposed, the Company would lose the potential for market upside on those assets in a market recovery.  Without sufficient liquidity, the Company could be forced to curtail certain operations, and the business could suffer.

 

*Regulatory initiatives intended to alleviate the current financial crisis that have been adopted may not be effective and, in any event, may be accompanied by other initiatives, including new capital requirements or other regulations, that could materially affect the Company’s results of operations, financial condition and liquidity*

 

In response to the financial crisis affecting the banking system and financial markets, the U.S. federal government has passed new legislation in an effort to stabilize the financial markets, including the American Recovery and Reinvestment Act of 2009 and the Emergency Economic Stabilization Act of 2008. The Company cannot predict with any certainty the effect these actions or any other legislative initiatives will have on the financial markets or on the Company’s business, results of operations, financial condition, and liquidity. This legislation and other proposals or actions may also have other consequences, including material effects on interest rates, which could materially affect the Company’s investments, results of operations and liquidity in ways that are not predictable. The failure to effectively implement this legislation and related proposals or actions couldalso result in material adverse effects, notably increased constraints on the liquidity available in the banking system and financial markets and increased pressure on stock prices, any of which could materially and adversely affect the Company’s results of operations, financial condition and liquidity. In the event of future material deterioration in business conditions, the Company may need to raise additional capital or consider other transactions to manage its capital position or liquidity.

 

On June 17, 2009, the Obama Administration released a set of proposed regulatory reforms with respect to financial services entities, and the Treasury has been releasing the text of proposed legislation for various elements of such proposed reform (the “Administration Proposal”). As part of a larger effort to strengthen the regulation of the financial services market, the Administration Proposal outlines certain reforms applicable to the insurance industry, including the establishment of an Office of 

 

87

 

 

National Insurance within the Treasury Department to monitor all aspects of the insurance industry and the modernization of insurance regulation in accordance with stated principles. The Administration Proposal would also increase the regulation of large insurance holding companies or insurers if it is determined by the Federal Reserve Board that their failure could pose a systemic risk to the financial system (known as “Tier 1 FHCs”). If the Federal Reserve Board ultimately were to determine that ING is a Tier 1 FHC, then the Federal Reserve Board’s supervisory authority would extend to ING and all of its subsidiaries, U.S. and foreign, including subsidiaries that are otherwise regulated such as the Company. Although existing state insurance regulators would remain the primary regulator of the Company and its U.S. insurance company affiliates, the Federal Reserve Boardwould have the authority to provide its own level of oversight, including subjecting ING, the Company and other ING subsidiaries to: increased capital and liquidity requirements and risk management standards; regulatory reporting to, and supervision and examination by, the Federal Reserve Board; the restrictions of the Bank Holding Company Act on non-financial activities; and a proposed prompt corrective action regime in the event of undercapitalization. Although no legislation has been enacted or regulations promulgated with respect to the Administration Proposal, any legislation or regulatory requirements imposed upon ING or the Company in connection with the Administration Proposal may make it more expensive for the Company to conduct its business, subject the Company to greater regulatory scrutiny and have a material effect on the Company’s results of operations or financial condition. 

 

In addition, the Company is subject to extensive laws and regulations that are administered and/or enforced by a number of different governmental authorities and non-governmental self-regulatory bodies, including state insurance regulators, state securities administrators, the NAIC, the SEC, FINRA, Financial Accounting Standards Board, and state attorneys general. In light of the current financial crisis, some of these authorities are or may in the future consider enhanced or new requirements intended to prevent future crises or otherwise assure the stability of institutions under their supervision. These authorities may also seek to exercise their supervisory or enforcement authority in new or more robust ways. All of these possibilities, if they occurred, could affect the way the Company conducts its business and manages capital, and may require the Company to satisfy increased capitalrequirements, any of which in turn could materially affect the Company’s results of operations, financial condition and liquidity. Section 382 of the United States Internal Revenue Code contains a so-called loss limitation rule, the general purpose of which is to prevent trafficking in tax losses (i.e., it is an anti-abuse rule). The rule is triggered when the ownership of a company changes by more than 50% (measured by value) on a cumulative basis in any three year period. If triggered, restrictions may be imposed on the future use of realized tax losses as well as certain losses that are built into the assets of the company at the time of the ownership change and that are realized within the next five years. The issuance of EUR 10 billion of securities by ING to the Dutch State on November 12, 2008, brought ING’s (cumulative) change of ownership as per that date to approximately 42%. As a result, future increases in capital or other changes of ownership may adverselyaffect the net result or equity of ING, unless relief from the loss limitation rules is obtained, which may or may not be possible.

 

88

 

 

 

*Circumstances associated with implementation of ING Groep’s recently**announced global business strategy* *or the European Commission seeking to impose additional conditions with respect to ING's receipt of state aid from the Dutch State could adversely**affect the Company’s results of operations and financial condition.*

 

On April 9, 2009, the Company's ultimate parent, ING Groep N.V. ("ING") announced a global business strategy which identified certain core and non-core businesses and geographies, stated ING's intention to explore divestiture of non-core businesses over time, withdraw from certain non-core geographies, limit future acquisitions and implement enterprise-wide expense reductions. In addition, the capital infusion of EUR 10 billion by the Dutch State and the March 31, 2009 transfer by ING of an economic interest in 80% of its Alt-A RMBS portfolio to the Dutch State are subject to a six month review by the European Commission (the "EC") to assess its competitive impact. Such review could result in the EC seeking to impose additional conditions on ING's participation in this March transaction, including requesting additional restructuring measures. Various uncertainties and risks areassociated with the implementation of various aspects of ING's global business strategy, and with any additional conditions that the EC may seek to impose on ING following its review of the Alt-A transaction, any of which could have an adverse impact on the Company’s business opportunities, results of operations and financial condition. Those uncertainties and risks include, but are not limited to: diversion of management’s attention; difficulty in retaining or attracting employees; negative impact on relationships with distributors and customers; policyholder retention; and unforeseen difficulties in transitioning or divesting non-core businesses and geographies or implementing EC requested conditions.

 

*A loss of key employees could increase the Company’s operational risks and could adversely affect the effectiveness of internal controls over financial reporting.*

 

The Company relies upon the knowledge and experience of employees involved in functions that require technical expertise in order to provide for the accurate and timely preparation of required regulatory filings and GAAP and statutory financial statements and operation of internal controls. A loss of such employees could adversely impact the Company’s ability to execute key operational functions and could adversely affect the Company’s internal controls over financial reporting.

 

89

 

 

*Failure of a Company operating or information system or a compromise of security with respect to an operating or information system or portable electronic device or a failure to implement a new accounting or actuarial system effectively could adversely affect the Company’s results of operations and financial condition or the effectiveness of internal controls over financial reporting.*

 

The Company is highly dependent on automated systems to record and process Company and contract owner transactions, as well as to calculate reserving requirements, investment asset valuations, and certain other components of the Company’s GAAP and statutory financial statements.  The Company could experience a failure of one of these systems, or could fail to complete all necessary data reconciliation or other conversion controls when implementing a new software system. The Company could also experience a compromise of its security due to technical system flaws, clerical, data input or record-keeping errors, or tampering or manipulation of those systems by employees or unauthorized third parties. Information security risks also exist with respect to the use of portable electronic devices, such as laptops, which are particularly vulnerable to loss and theft. The Company may also besubject to disruptions of any of these systems arising from events that are wholly or partially beyond its control (for example, natural disasters, acts of terrorism, epidemics, computer viruses, and electrical/telecommunications outages). All of these risks are also applicable where the Company relies on outside vendors to provide services to it and its contract owners.  Operating system failures, ineffective system implementation or disruptions or the compromise of security with respect to operating systems or portable electronic devices could subject the Company to regulatory sanctions, or other claims, harm the Company’s reputation, interrupt the Company’s operations, and adversely affect the Company’s internal control over financial reporting, business, results of operations, or financial condition.

 

*Changes in underwriting and actual experience could materially affect profitability*

 

The Company prices its products based on long-term assumptions regarding investment returns, mortality, persistency, and operating costs.  Management establishes target returns for each product based upon these factors and the average amount of regulatory and rating agency capital that the Company must hold to support in-force contracts.  The Company monitors and manages pricing and sales mix to achieve target returns.  Profitability from a new business emerges over a period of years, depending on the nature and life of the product, and is subject to variability as actual results may differ from pricing assumptions.

 

90

 

 

The Company’s profitability depends on the following:

 

 

§

Adequacy of investment margins;

 

§

Management of market and credit risks associated with investments;

 

§

Ability to maintain premiums and contract charges at a level adequate to cover mortality, benefits, and contract administration expenses;

 

§

Adequacy of contract charges and availability of revenue from providers of investments options offered in variable contracts to cover the cost of product features and other expenses;

 

§

Persistency of policies to ensure recovery of acquisition expenses and value of business acquired, as applicable; and

 

§

Management of operating costs and expenses within anticipated pricing allowances.

 

**Item 6.**

**Exhibits**

 

See Exhibit Index on pages 93-96 hereof.

 

91

 

 

**SIGNATURE**

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

August 7, 2009

(Date)

ING Life Insurance and Annuity Company

(Registrant)

 

 

 

 

 
 

By: /s/

David A. Wheat

 

 

 

David A. Wheat

Executive Vice President and

Chief Financial Officer

(Duly Authorized Officer and Principal Financial Officer)

 

 

 

92

 

 

 

**ING LIFE INSURANCE AND ANNUITY COMPANY (“ILIAC”)**

**Exhibit Index**

 

 

**Exhibit Number**

**Description of Exhibit**

 

 

3.1

Certificate of Incorporation as amended and restated October 1, 2007, incorporated by reference to the ILIAC Form 10-K, as filed with the SEC on March 31, 2008 (File No. 33-23376).

 

 

3.2

Amended and Restated ING Life Insurance and Annuity Company By-Laws, effective October 1, 2007, incorporated by reference to the ILIAC Form 10-K, as filed with the SEC on March 31, 2008 (File No. 33-23376).

 

 

4.1

Incorporated by reference to Post-Effective Amendment No. 14 to Registration Statement on Form N-4 (File No. 33-75964), as filed on July 29, 1997.

 

 

4.2

Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-75980), as filed on February 12, 1997.

 

 

4.3

Incorporated by reference to Post-Effective Amendment No. 12 to Registration Statement on Form N-4 (File No. 33-75964), as filed on February 11, 1997.

 

 

4.4

Incorporated by reference to Post-Effective Amendment No. 5 to Registration Statement on Form N-4 (File No. 33-75986), as filed on April 12, 1996.

 

 

4.5

Incorporated by reference to Post-Effective Amendment No. 12 to Registration Statement on Form N-4 (File No. 333-01107), as filed on February 4, 1999.

 

 

4.6

Incorporated by reference to Post-Effective Amendment No. 4 to Registration Statement on Form N-4 (File No. 33-75988), as filed on April 15, 1996.

 

 

4.7

Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form N-4 (File No. 33-81216), as filed on April 17, 1996.

 

 

4.8

Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form N-4 (File No. 33-91846), as filed on April 15, 1996.

 

 

4.9

Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-91846), as filed on August 6, 1996.

 

 

4.10

Incorporated by reference to Registration Statement on Form N-4 (File No. 333-01107), as filed on February 21, 1996.

 

 

4.11

Incorporated by reference to Post-Effective Amendment No. 12 to Registration Statement on Form N-4 (File No. 33-75982), as filed on February 20, 1997.

 

 

4.12

Incorporated by reference to Post-Effective Amendment No. 7 to Registration Statement on Form N-4 (File No. 33-75992), as filed on February 13, 1997.

 

 

4.13

Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-75974), as filed on February 28, 1997.

 

 

4.14

Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-75962), as filed on April 17, 1996.

 

 

4.15

Incorporated by reference to Post-Effective Amendment No. 14 to Registration Statement on Form N-4 (File No. 33-75962), as filed on April 17, 1998.

 

 

4.16

Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-75982), as filed on April 22, 1996. 

 

 

 

93

 

 

 

4.17

Incorporated by reference to Post-Effective Amendment No. 8 to Registration Statement on Form N-4 (File No. 33-75980), as filed on August 19, 1997.

 

 

4.18

Incorporated by reference to Registration Statement on Form N-4 (File No. 333-56297), as filed on June 8, 1998.

 

 

4.19

Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form N-4 (File No. 33-79122), as filed on August 16, 1995.

 

 

4.20

Incorporated by reference to Post-Effective Amendment No. 32 to Registration Statement on Form N-4 (File No. 33-34370), as filed on December 16, 1997.

 

 

4.21

Incorporated by reference to Post-Effective Amendment No. 30 to Registration Statement on Form N-4 (File No. 33-34370), as filed on September 29, 1997.

 

 

4.22

Incorporated by reference to Post-Effective Amendment No. 26 to Registration Statement on Form N-4 (File No. 33-34370), as filed on February 21, 1997.

 

 

4.23

Incorporated by reference to Post-Effective Amendment No. 35 to Registration Statement on Form N-4 (File No. 33-34370), as filed on April 17, 1998.

 

 

4.24

Incorporated by reference to Post-Effective Amendment No. 1 to Registration Statement on Form N-4 (File No. 33-87932), as filed on September 19, 1995.

 

 

4.25

Incorporated by reference to Post-Effective Amendment No. 8 to Registration Statement on Form N-4 (File No. 33-79122), as filed on April 17, 1998.

 

 

4.26

Incorporated by reference to Post-Effective Amendment No. 7 to Registration Statement on Form N-4 (File No. 33-79122), as filed on April 22, 1997.

 

 

4.27

Incorporated by reference to Post-Effective Amendment No. 21 to Registration Statement on Form N-4 (File No. 33-75996), as filed on February 16, 2000.

 

 

4.28

Incorporated by reference to Post-Effective Amendment No. 13 to Registration Statement on Form N-4 (File No. 333-01107), as filed on April 7, 1999.

 

 

4.29

Incorporated by reference to Post-Effective Amendment No. 37 to Registration Statement on Form N-4 (File No. 33-34370), as filed on April 9, 1999.

 

 

4.30

Incorporated by reference to Post-Effective Amendment No. 1 to Registration Statement on Form N-4 (File No. 333-87305), as filed on December 13, 1999.

 

 

4.31

Incorporated by reference to Post-Effective Amendment No. 18 to Registration Statement on Form N-4 (File No. 33-56297), as filed on August 30, 2000.

 

 

4.32

Incorporated by reference to Post-Effective Amendment No.17 to Registration Statement on Form N-4 (File No. 33-75996), as filed on April 7, 1999.

 

 

4.33

Incorporated by reference to Post-Effective Amendment No. 19 to Registration Statement on From N-4 (File No. 333-01107), as filed on February 16, 2000.

 

 

4.34

Incorporated by reference to the Registration Statement on Form S-2 (File No. 33- 64331), as filed on November 16, 1995.

 

 

4.35

Incorporated by reference to Pre-Effective Amendment No. 2 to the Registration Statement on Form S-2 (File No. 33-64331), as filed on January 17, 1996.

 

 

4.36

Incorporated by reference to Post-Effective Amendment No. 30 to Registration Statement on Form N-4 (File No. 33-75988), as filed on December 30, 2003.

 

 

4.37

Incorporated by reference to Post-Effective Amendment No. 18 to Registration Statement on Form N-4 (File No. 33-75980), as filed on April 16, 2003.

 

 

 

94

 

 

 

4.38

Incorporated by reference to Post-Effective Amendment No. 30 to Registration Statement on Form N-4 (File No. 333-01107), as filed on April 10, 2002.

 

 

4.39

Incorporated by reference to Post-Effective Amendment No. 24 to Registration Statement on Form N-4 (File No. 33-81216), as filed on April 11, 2003.

 

 

4.40

Incorporated by reference to Registration Statement on Form N-4 (File No. 333-109860), as filed on October 21, 2003.

 

 

4.41

Incorporated by reference to Post-Effective Amendment No. 39 to Registration Statement on Form N-4 (File No. 33-75962), as filed on December 17, 2004.

 

 

4.42

Incorporated by reference to Initial Registration Statement on Form N-4 (File No. 333-130822), as filed on January 3, 2006.

 

 

4.43

Incorporated by reference to Post-Effective Amendment No. 1 to Registration Statement on Form N-4 (File No. 333-87131), as filed on December 15, 1999.

 

 

4.44

Incorporated by reference to Registration Statement on Form N-4 (File No. 33-59749), as filed on June 1, 1995.

 

 

4.45

Incorporated by reference to Post-Effective Amendment No. 4 to Registration Statement on Form N-4 (File No. 33-59749), as filed on April 16, 1997.

 

 

4.46

Incorporated by reference to Post-Effective Amendment No. 9 to Registration Statement on Form N-4 (File No. 33-80750), as filed on April 17, 1998.

 

 

4.47

Incorporated by reference to Post-Effective Amendment No. 8 to Registration Statement on Form N-4 (File No. 33-80750), as filed on April 23, 1997.

 

 

4.48

Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-59749), as filed on November 26, 1997.

 

 

4.49

Incorporated by reference to Registration Statement on Form S-2 (File No. 33-63657), as filed on October 25, 1995.

 

 

4.50

Incorporated by reference to Pre-Effective Amendment No. 3 to Registration Statement on Form S-2 (File No. 33-63657), as filed on January 17, 1996.

 

 

4.51

Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-2 (File No. 33-63657), as filed on November 24, 1997.

 

 

4.52

Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form S-2 (File No. 33-64331), as filed on November 24, 1997.

 

 

4.53

Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-59749), as filed on November 26, 1997.

 

 

4.54

Incorporated by reference to Registration Statement on Form N-4 (File No. 33-59749), as filed on June 1, 1995.

 

 

4.55

Incorporated by reference to Post-Effective Amendment No. 4 to Registration Statement on Form N-4 (File No. 33-59749), as filed on April 16, 1997.

 

 

 

95

 

 

 

31.1+

Certificate of David A. Wheat pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

31.2+

Certificate of Catherine H. Smith pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

32.1+

Certificate of David A. Wheat pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

32.2+

Certificate of Catherine H. Smith pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

+ Filed herewith.

 

96

 

  |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|