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Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2013
Fair Value Disclosures [Abstract]  
Schedule Of Fair Value Assets and Liabilities Measured on Recurring Basis Table Text Block
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 are summarized below (dollars in thousands):
June 30, 2013:
 
 
 
Fair Value Measurements Using:
 
 
Total    
 
Level 1        
 
Level 2    
 
Level 3    
Assets:
 
 
 
 
 
 
 
 
Fixed maturity securities – available-for-sale:
 
 
 
 
 
 
 
 
Corporate securities
 
$
11,803,481

 
$
63,568

 
$
10,147,908

 
$
1,592,005

Canadian and Canadian provincial governments
 
3,525,793

 
—

 
3,525,793

 
—

Residential mortgage-backed securities
 
1,054,968

 
—

 
914,914

 
140,054

Asset-backed securities
 
790,310

 
—

 
437,704

 
352,606

Commercial mortgage-backed securities
 
1,638,632

 
—

 
1,457,650

 
180,982

U.S. government and agencies securities
 
412,990

 
354,097

 
58,893

 
—

State and political subdivision securities
 
291,811

 
—

 
250,536

 
41,275

Other foreign government supranational and foreign government-sponsored enterprises
 
1,766,231

 
290,708

 
1,448,693

 
26,830

Total fixed maturity securities – available-for-sale
 
21,284,216

 
708,373

 
18,242,091

 
2,333,752

Funds withheld at interest – embedded derivatives
 
(108,473
)
 
—

 
—

 
(108,473
)
Cash equivalents
 
347,823

 
347,823

 
—

 
—

Short-term investments
 
21,092

 
19,169

 
1,923

 
—

Other invested assets:
 
 
 
 
 
 
 
 
Non-redeemable preferred stock
 
90,458

 
87,728

 
2,730

 
—

Other equity securities
 
69,881

 
69,881

 
—

 
—

Derivatives:
 
 
 
 
 
 
 
 
Interest rate swaps
 
36,853

 
—

 
36,853

 
—

Interest rate options
 
8,073

 
—

 
8,073

 
—

Foreign currency forwards
 
148

 
—

 
148

 
—

CPI swaps
 
(23
)
 
—

 
(23
)
 
—

Credit default swaps
 
(2,775
)
 
—

 
(2,775
)
 
—

Equity options
 
60,715

 
—

 
60,715

 
—

Foreign currency swaps
 
15,800

 
—

 
15,800

 
—

Other
 
14,759

 
14,759

 
—

 
—

Total other invested assets
 
293,889

 
172,368

 
121,521

 
—

Total
 
$
21,838,547

 
$
1,247,733

 
$
18,365,535

 
$
2,225,279

Liabilities:
 
 
 
 
 
 
 
 
Interest sensitive contract liabilities – embedded derivatives
 
$
878,568

 
$
—

 
$
—

 
$
878,568

Other liabilities:
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
Interest rate swaps
 
4,140

 
—

 
4,140

 
—

Foreign currency forwards
 
9,484

 
—

 
9,484

 
—

Credit default swaps
 
(118
)
 
—

 
(118
)
 
—

Equity options
 
(387
)
 
—

 
(387
)
 
—

Total
 
$
891,687

 
$
—

 
$
13,119

 
$
878,568

December 31, 2012:
 
 
 
Fair Value Measurements Using:
 
 
Total    
 
Level 1        
 
Level 2    
 
Level 3    
Assets:
 
 
 
 
 
 
 
 
Fixed maturity securities – available-for-sale:
 
 
 
 
 
 
 
 
Corporate securities
 
$
12,380,071

 
$
43,544

 
$
10,667,964

 
$
1,668,563

Canadian and Canadian provincial governments
 
4,049,334

 
—

 
4,049,334

 
—

Residential mortgage-backed securities
 
1,042,064

 
—

 
948,133

 
93,931

Asset-backed securities
 
691,555

 
—

 
459,164

 
232,391

Commercial mortgage-backed securities
 
1,698,903

 
—

 
1,531,897

 
167,006

U.S. government and agencies securities
 
265,190

 
192,780

 
67,872

 
4,538

State and political subdivision securities
 
302,498

 
—

 
259,286

 
43,212

Other foreign government, supranational and foreign government-sponsored enterprises
 
1,861,999

 
297,025

 
1,536,694

 
28,280

Total fixed maturity securities – available-for-sale
 
22,291,614

 
533,349

 
19,520,344

 
2,237,921

Funds withheld at interest – embedded derivatives
 
(243,177
)
 
—

 
—

 
(243,177
)
Cash equivalents
 
575,864

 
575,864

 
—

 
—

Short-term investments
 
239,131

 
178,923

 
38,177

 
22,031

Other invested assets:
 
 
 
 
 
 
 
 
Non-redeemable preferred stock
 
74,841

 
64,268

 
10,573

 
—

Other equity securities
 
147,859

 
147,859

 
—

 
—

Derivatives:
 
 
 
 
 
 
 
 
Interest rate swaps
 
104,972

 
—

 
104,972

 
—

Foreign currency forwards
 
1,017

 
—

 
1,017

 
—

CPI swaps
 
1,446

 
—

 
1,446

 
—

Credit default swaps
 
(1,741
)
 
—

 
(1,741
)
 
—

Equity options
 
62,514

 
—

 
62,514

 
—

Collateral
 
17,002

 
1,323

 
15,679

 
—

Other
 
11,951

 
11,951

 
—

 
—

Total other invested assets
 
419,861

 
225,401

 
194,460

 
—

Total
 
$
23,283,293

 
$
1,513,537

 
$
19,752,981

 
$
2,016,775

Liabilities:
 
 
 
 
 
 
 
 
Interest sensitive contract liabilities – embedded derivatives
 
$
912,361

 
$
—

 
$
—

 
$
912,361

Other liabilities:
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
Interest rate swaps
 
196

 
—

 
196

 
—

Foreign currency forwards
 
2,105

 
—

 
2,105

 
—

Credit default swaps
 
1,953

 
—

 
1,953

 
—

Foreign currency swaps
 
27,398

 
—

 
27,398

 
—

Total
 
$
944,013

 
—

 
$
31,652

 
$
912,361
Fair Value Unobservable Input Measurements [Table Text Block]
The following table presents quantitative information about significant unobservable inputs used in Level 3 fair value measurements developed by the Company, which does not include unobservable Level 3 asset and liability measurements provided by third parties, as of June 30, 2013 and December 31, 2012 (dollars in thousands):
 
June 30, 2013:
 
 
 
Valuation Technique(s)
 
Unobservable Input
 
Range (Weighted Average) 
 
Fair Value      
 
 
 
Assets:
 
 
 
 
 
 
 
 
State and political subdivision securities
 
$
5,139

 
Market comparable securities    
 
Liquidity premium
 
1
%
Corporate securities
 
403,894

 
Market comparable securities
 
Liquidity premium
 
0-2% (1%)

Funds withheld at interest- embedded derivatives
 
(108,473
)
 
Total return swap
 
Mortality
 
0-100%  (1%)

 
 
 
 
 
 
Lapse
 
0-35%  (6%)

 
 
 
 
 
 
Withdrawal
 
0-5%  (3%)

 
 
 
 
 
 
Own Credit
 
0-1%  (1%)

 
 
 
 
 
 
Crediting rate
 
2-4%  (3%)

Liabilities:
 
 
 
 
 
 
 
 
Interest sensitive contract liabilities- embedded derivatives- indexed annuities
 
793,586

 
Discounted cash flow
 
Mortality
 
0-100%  (1%)

 
 
 
 
 
 
Lapse
 
0-35%  (6%)

 
 
 
 
 
 
Withdrawal
 
0-5%  (3%)

 
 
 
 
 
 
Option budget projection
 
2-4%  (3%)

 
 
 
 
 
 
 
 
 
Interest sensitive contract liabilities- embedded derivatives- variable annuities
 
84,982

 
Discounted cash flow
 
Mortality
 
0-100% (2%)

 
 
 
 
 
 
Lapse
 
0-25% (5%)

 
 
 
 
 
 
Withdrawal
 
0-7% (3%)

 
 
 
 
 
 
Own Credit
 
0-1% (1%)

 
 
 
 
 
 
Long-term volatility
 
0-27% (13%)


 
December 31, 2012:
 
 
Fair Value
 
Valuation
Technique(s)
 
Unobservable
Input
 
Range
(Weighted Average)
 
 
Assets:
 
 
 
 
 
 
 
 
 
State and political subdivision securities
 
$
5,451

 
Market comparable securities  
 
Liquidity premium
 
1
%
 
 
 
 
 
 
 
 
 
 
 
Corporate securities
 
450,177

 
Market comparable securities  
 
Liquidity premium
 
0-2% (1%)

 
 
 
 
 
 
 
 
 
 
 
Short-term investments
 
22,031

 
Market comparable securities  
 
Liquidity premium
 
1
%
 
 
 
 
 
 
 
 
 
 
 
Funds withheld at interest- embedded derivatives
 
(243,177
)
 
Total return swap
 
Mortality
 
0-100% (1%)

 
 
 
 
 
 
 
Lapse
 
0-35% (6%)

 
 
 
 
 
 
 
Withdrawal
 
0-5% (3%)

 
 
 
 
 
 
 
Own Credit
 
0-1% (1%)

 
 
 
 
 
 
 
Crediting Rate
 
2-4% (3%)

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Interest sensitive contract liabilities- embedded derivatives- indexed annuities
 
740,256

 
Discounted cash flow
 
Mortality
 
0-100% (1%)

 
 
 
 
 
 
 
Lapse
 
0-35% (6%)

 
 
 
 
 
 
 
Withdrawal
 
0-5% (3%)

 
 
 
 
 
 
 
Option budget projection
 
2-4% (3%)

 
 
 
 
 
 
 
 
 
 
 
Interest sensitive contract liabilities- embedded derivatives- variable annuities
 
172,105

 
Discounted cash flow
 
Mortality
 
0-100% (2%)

 
 
 
 
 
 
 
Lapse
 
0-25% (5%)

 
 
 
 
 
 
 
Withdrawal
 
0-7% (3%)

 
 
 
 
 
 
 
Own Credit
 
0-1% (1%)

 
 
 
 
 
 
 
Long-term volatility
 
0-27% (14%)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Level Transfers [Table Text Block]
The following tables present the transfers between Level 1 and Level 2 during the three and six months ended June 30, 2013 and 2012 (dollars in thousands):
 
 
Three months ended June 30,
 
 
2013
 
2012
 
 
Transfers from    
Level 1 to
Level 2
 
Transfers from    
Level 2 to
Level 1
 
Transfers from    
Level 1 to
Level 2
 
Transfers from    
Level 2 to
Level 1
Fixed maturity securities - available-for-sale:
 
 
 
 
 
 
 
 
Corporate securities
 
$
—

 
$
—

 
$
2,996

 
$
—

U.S. government and agencies securities
 
—

 
—

 
—

 
11,152

State and political subdivision securities
 
—

 
—

 
12,794

 
—

Other foreign government, supranational and foreign government-sponsored enterprises
 
—

 
—

 
1,059

 
—

Total fixed maturity securities
 
$
—

 
$
—

 
$
16,849

 
$
11,152

 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
 
2013
 
2012
 
 
Transfers from    
Level 1 to
Level 2
 
Transfers from    
Level 2 to
Level 1
 
Transfers from    
Level 1 to
Level 2
 
Transfers from    
Level 2 to
Level 1
Fixed maturity securities - available-for-sale:
 
 
 
 
 
 
 
 
Corporate securities
 
$
—

 
$
14,012

 
$
2,996

 
$
4

U.S. government and agencies securities
 
—

 
—

 
—

 
11,152

State and political subdivision securities
 
—

 
—

 
12,794

 
—

Other foreign government, supranational and foreign government-sponsored enterprises
 
—

 
—

 
1,059

 
—

Total fixed maturity securities
 
$
—

 
$
14,012

 
$
16,849

 
$
11,156
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Text Block]
The tables below provide a summary of the changes in fair value of Level 3 assets and liabilities for the three and six months ended June 30, 2013, as well as the portion of gains or losses included in income for the three and six months ended June 30, 2013 attributable to unrealized gains or losses related to those assets and liabilities still held at June 30, 2013 (dollars in thousands):
For the three months ended June 30, 2013:
 
Fixed maturity securities - available-for-sale
 
 
 
 
Corporate    
securities
 
Residential
mortgage-
backed
securities
 
Asset-backed    
securities
 
Commercial    
mortgage-
backed
securities
 
 
Fair value, beginning of period
 
$
1,646,903

 
$
140,717

 
$
288,231

 
$
175,294

 


Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
(2,313
)
 
(111
)
 
1,526

 
581

 


Investment related gains (losses), net
 
350

 
198

 
226

 
(8,992
)
 


Claims & other policy benefits
 
—

 
—

 
—

 
—

 


Interest credited
 
—

 
—

 
—

 
—

 


Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 


Included in other comprehensive income
 
(37,672
)
 
(2,714
)
 
2,601

 
15,445

 


Purchases(1)
 
100,690

 
11,383

 
72,542

 
—

 


Sales(1)
 
(39,793
)
 
(1,018
)
 
(7,995
)
 
(1,118
)
 


Settlements(1)
 
(80,533
)
 
(7,367
)
 
(5,559
)
 
(228
)
 


Transfers into Level 3
 
4,373

 
4,306

 
5,340

 
—

 


Transfers out of Level 3
 
—

 
(5,340
)
 
(4,306
)
 
—

 


Fair value, end of period
 
$
1,592,005

 
$
140,054

 
$
352,606

 
$
180,982

 


 
 
 
 
 
 
 
 
 
 
 
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
(2,191
)
 
$
(112
)
 
$
1,515

 
$
580

 


Investment related gains (losses), net
 
—

 
—

 
—

 
(10,109
)
 


Claims & other policy benefits
 
—

 
—

 
—

 
—

 


Interest credited
 
—

 
—

 
—

 
—

 


Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 


 
 
 
 
 
 
 
 
 
 
 
For the three months ended June 30, 2013 (continued):
 
Fixed maturity securities
available-for-sale
 
 
 
 
 
 
 
 
State
and political
subdivision
securities
 
Other foreign government, supranational and foreign government-sponsored enterprises
 
Funds withheld
at interest-
embedded
derivative
 
Short-term
investments
 
Interest sensitive contract liabilities embedded derivatives
Fair value, beginning of period
 
$
42,639

 
$
27,865

 
$
(156,189
)
 
$
22,001

 
$
(890,476
)
Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
9

 
(76
)
 
—

 
—

 
—

Investment related gains (losses), net
 
(4
)
 
—

 
47,716

 
—

 
35,809

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
(28,020
)
Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

Included in other comprehensive income
 
(1,087
)
 
(959
)
 
—

 
(1
)
 
—

Purchases(1)
 
—

 
—

 
—

 
—

 
(14,764
)
Sales(1)
 
—

 
—

 
—

 
—

 
—

Settlements(1)
 
(282
)
 
—

 
—

 
(22,000
)
 
18,883

Transfers into Level 3
 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
 
—

 
—

 
—

 
—

 
—

Fair value, end of period
 
$
41,275

 
$
26,830

 
$
(108,473
)
 
$
—

 
$
(878,568
)
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
9

 
$
(76
)
 
$
—

 
$
—

 
$
—

Investment related gains (losses), net
 
—

 
—

 
47,717

 
—

 
34,788

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
(46,902
)
Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2013:
 
Fixed maturity securities - available-for-sale
 
 
Corporate    
securities
 
Residential
mortgage-backed
securities
 
Asset-backed    
securities
 
Commercial mortgage-backed securities
 
U.S.
Government
and agencies  
securities
Fair value, beginning of period
 
$
1,668,563

 
$
93,931

 
$
232,391

 
$
167,006

 
$
4,538

Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
(4,339
)
 
(6
)
 
2,405

 
1,083

 
—

Investment related gains (losses), net
 
(913
)
 
25

 
(1,521
)
 
(9,862
)
 
—

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

Included in other comprehensive income
 
(36,710
)
 
(200
)
 
14,638

 
27,945

 
—

Purchases(1)
 
175,362

 
51,920

 
128,423

 
—

 
—

Sales(1)
 
(56,071
)
 
(2,617
)
 
(16,293
)
 
(2,722
)
 
—

Settlements(1)
 
(145,899
)
 
(12,289
)
 
(11,436
)
 
(2,468
)
 
—

Transfers into Level 3
 
8,146

 
14,630

 
8,305

 
—

 
—

Transfers out of Level 3
 
(16,134
)
 
(5,340
)
 
(4,306
)
 
—

 
(4,538
)
Fair value, end of period
 
$
1,592,005

 
$
140,054

 
$
352,606

 
$
180,982

 
$
—

 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2013 (continued):
 
Fixed maturity securities - available-for-sale
 
 
Corporate    
securities
 
Residential
mortgage-backed
securities
 
Asset-backed    
securities
 
Commercial mortgage-backed securities
 
U.S.
Government
and agencies  
securities
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
(4,218
)
 
$
(7
)
 
$
2,397

 
$
1,081

 
$
—

Investment related gains (losses), net
 
(202
)
 
—

 
—

 
(10,109
)
 
—

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2013 (continued):
 
Fixed maturity securities
available-for-sale
 
 
 
 
 
 
 
 
State
and political
subdivision
securities
 
Other foreign
government,
supranational and
foreign government-
sponsored enterprises
 
Funds withheld
at interest-
embedded
derivative
 
Short-term
investments
 
Interest sensitive
contract liabilities
embedded
derivatives
Fair value, beginning of period
 
$
43,212

 
$
28,280

 
$
(243,177
)
 
$
22,031

 
$
(912,361
)
Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
18

 
(150
)
 
—

 
(3
)
 
—

Investment related gains (losses), net
 
(8
)
 
—

 
134,704

 
—

 
87,123

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
(61,016
)
Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

Included in other comprehensive income
 
(1,639
)
 
(1,300
)
 
—

 
(28
)
 
—

Purchases(1)
 
—

 
—

 
—

 
—

 
(28,624
)
Sales(1)
 
—

 
—

 
—

 
—

 
—

Settlements(1)
 
(308
)
 
—

 
—

 
(22,000
)
 
36,310

Transfers into Level 3
 
—

 
—

 
—

 
—

 
—

Transfers out of Level 3
 
—

 
—

 
—

 
—

 
—

Fair value, end of period
 
$
41,275

 
$
26,830

 
$
(108,473
)
 
$
—

 
$
(878,568
)
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
18

 
$
(150
)
 
$
—

 
$
(4
)
 
$
—

Investment related gains (losses), net
 
—

 
—

 
134,705

 
—

 
84,911

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
(97,326
)
Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

 
(1)
The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.
For the three months ended June 30, 2012:
 
Fixed maturity securities - available-for-sale
 
 
Corporate    
securities
 
Residential    
mortgage-
backed
securities
 
Asset-backed    
securities
 
Commercial    
mortgage-
backed
securities
 
State.
and political  
subdivision
securities
Fair value, beginning of period
 
$
977,671

 
$
54,435

 
$
146,362

 
$
118,678

 
$
5,239

Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
77

 
188

 
195

 
545

 
9

Investment related gains (losses), net
 
(696
)
 
(315
)
 
164

 
393

 
(4
)
Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

Included in other comprehensive income
 
10,341

 
(172
)
 
1,782

 
(2,273
)
 
827

Purchases (1)
 
68,275

 
337

 
2,012

 
—

 
—

Sales(1)
 
(17,876
)
 
(8,219
)
 
(7,902
)
 
(1,552
)
 
—

Settlements(1)
 
(32,497
)
 
(1,902
)
 
(3,238
)
 
(58
)
 
(23
)
Transfers into Level 3
 
—

 
7,176

 
—

 
—

 
8,438

Transfers out of Level 3
 
(11,281
)
 
(1,937
)
 
(11,017
)
 
—

 
—

Fair value, end of period
 
$
994,014

 
$
49,591

 
$
128,358

 
$
115,733

 
$
14,486

Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
84

 
$
148

 
$
151

 
$
545

 
$
9

Investment related gains (losses), net
 
(380
)
 
(161
)
 
—

 
—

 
—

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

 
For the three months ended June 30, 2012 (continued):
 
Funds withheld
at interest-
embedded
derivatives
 
Other invested
assets- other
equity securities
 
Reinsurance
ceded  receivable-
embedded
derivatives
 
Interest sensitive contract  liabilities embedded derivatives
 
 
Fair value, beginning of period
 
$
(370,884
)
 
$
11,827

 
$
3,514

 
$
(903,282
)
 
 
Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
—

 
—

 
—

 
—

 
 
Investment related gains (losses), net
 
(4,453
)
 
1,098

 
—

 
(74,929
)
 
 
Claims & other policy benefits
 
—

 
—

 
—

 
(1,721
)
 
 
Interest credited
 
—

 
—

 
—

 
27,825

 
 
Policy acquisition costs and other insurance expenses
 
—

 
—

 
1,003

 
—

 
 
Included in other comprehensive income
 
—

 
505

 
—

 
—

 
 
Purchases(1)
 
—

 
108

 
—

 
(16,107
)
 
 
Sales(1)
 
—

 
(3,788
)
 
—

 
—

 
 
Settlements(1)
 
—

 
—

 
(101
)
 
29,287

 
 
Transfers into Level 3
 
—

 
—

 
—

 
—

 
 
Transfers out of Level 3
 
—

 
(6,523
)
 
—

 
—

 
 
Fair value, end of period
 
$
(375,337
)
 
$
3,227

 
$
4,416

 
$
(938,927
)
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended June 30, 2012 (continued):
 
Funds withheld
at interest-
embedded
derivatives
 
Other invested
assets- other
equity securities
 
Reinsurance
ceded  receivable-
embedded
derivatives
 
Interest sensitive contract  liabilities embedded derivatives
 
 
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
—

 
$
—

 
$
—

 
$
—

 
 
Investment related gains (losses), net
 
(4,452
)
 
(183
)
 
—

 
(76,737
)
 
 
Claims & other policy benefits
 
—

 
—

 
—

 
(1,959
)
 
 
Interest credited
 
—

 
—

 
—

 
(1,288
)
 
 
Policy acquisition costs and other insurance expenses
 
—

 
—

 
1,143

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2012:
 
Fixed maturity securities - available-for-sale
 
 
Corporate    
securities
 
Residential    
mortgage-
backed
securities
 
Asset-backed    
securities
 
Commercial    
mortgage-
backed
securities
 
State.
and political  
subdivision
securities
Fair value, beginning of period
 
$
974,169

 
$
81,655

 
$
193,492

 
$
115,976

 
$
10,373

Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
107

 
298

 
444

 
1,133

 
4

Investment related gains (losses), net
 
(1,280
)
 
(36
)
 
(506
)
 
(11,682
)
 
(8
)
Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

Included in other comprehensive income
 
9,659

 
1,408

 
8,477

 
11,248

 
1,233

Purchases (1)
 
89,435

 
582

 
2,012

 
—

 
—

Sales(1)
 
(27,285
)
 
(16,224
)
 
(7,902
)
 
(1,552
)
 
—

Settlements(1)
 
(53,371
)
 
(3,702
)
 
(7,103
)
 
(58
)
 
(46
)
Transfers into Level 3
 
17,445

 
7,176

 
1,080

 
10,846

 
8,438

Transfers out of Level 3
 
(14,865
)
 
(21,566
)
 
(61,636
)
 
(10,178
)
 
(5,508
)
Fair value, end of period
 
$
994,014

 
$
49,591

 
$
128,358

 
$
115,733

 
$
14,486

Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
114

 
$
255

 
$
400

 
$
1,133

 
$
4

Investment related gains (losses), net
 
(1,106
)
 
(269
)
 
(607
)
 
(12,075
)
 
—

Claims & other policy benefits
 
—

 
—

 
—

 
—

 
—

Interest credited
 
—

 
—

 
—

 
—

 
—

Policy acquisition costs and other insurance expenses
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2012 (continued):
 
Funds withheld
at interest-
embedded
derivatives
 
Other invested
assets- other
equity securities
 
Reinsurance
ceded  receivable-
embedded
derivatives
 
Interest sensitive contract  liabilities embedded derivatives
 
 
Fair value, beginning of period
 
$
(361,456
)
 
$
11,489

 
$
4,945

 
$
(1,028,241
)
 
 
Total gains/losses (realized/unrealized)
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
—

 
—

 
—

 
—

 
 
Investment related gains (losses), net
 
(13,881
)
 
1,098

 
—

 
71,446

 
 
Claims & other policy benefits
 
—

 
—

 
—

 
557

 
 
Interest credited
 
—

 
—

 
—

 
6,632

 
 
Policy acquisition costs and other insurance expenses
 
—

 
—

 
(325
)
 
—

 
 
Included in other comprehensive income
 
—

 
843

 
—

 
—

 
 
Purchases(1)
 
—

 
108

 
—

 
(39,697
)
 
 
Sales(1)
 
—

 
(3,788
)
 
—

 
—

 
 
Settlements(1)
 
—

 
—

 
(204
)
 
50,376

 
 
Transfers into Level 3
 
—

 
—

 
—

 
—

 
 
Transfers out of Level 3
 
—

 
(6,523
)
 
—

 
—

 
 
Fair value, end of period
 
$
(375,337
)
 
$
3,227

 
$
4,416

 
$
(938,927
)
 
 
Unrealized gains and losses recorded in earnings for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
 
 
 
 
 
 
 
 
 
 
Included in earnings, net:
 
 
 
 
 
 
 
 
 
 
Investment income, net of related expenses
 
$
—

 
$
—

 
$
—

 
$
—

 
 
Investment related gains (losses), net
 
(13,881
)
 
(183
)
 
—

 
67,887

 
 
Claims & other policy benefits
 
—

 
—

 
—

 
79

 
 
Interest credited
 
—

 
—

 
—

 
(43,395
)
 
 
Policy acquisition costs and other insurance expenses
 
—

 
—

 
(46
)
 
—

 
 
 
(1)
The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]
 
 
Three months ended June 30,
 
 
2013
 
2012
 
 
Carrying Value  
Prior to
Measurement
 
Estimated Fair  
Value After
Measurement
 
Net
Investment
Gains  (Losses)  
 
Carrying Value  
Prior to
Measurement
 
Estimated Fair  
Value After
Measurement
 
Net
Investment
Gains  (Losses)  
Mortgage loans(1)
 
$
13,602

 
$
13,575

 
$
(27
)
 
$
22,323

 
$
23,375

 
$
1,052

Real estate(3)
 
4,736

 
4,136

 
(600
)
 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
 
2013
 
2012
 
 
Carrying Value  
Prior to
Measurement
 
Estimated Fair  
Value After
Measurement
 
Net
Investment
Gains  (Losses)  
 
Carrying Value  
Prior to
Measurement
 
Estimated Fair  
Value After
Measurement
 
Net
Investment
Gains  (Losses)  
Mortgage loans(1)
 
$
13,482

 
$
13,575

 
$
93

 
$
26,119

 
$
23,375

 
$
(2,744
)
Limited partnership interests(2)
 
11,590

 
9,161

 
(2,429
)
 
—

 
—

 
—

Real estate(3)
 
4,736

 
4,136

 
(600
)
 
—

 
—

 
—

 
(1)
Mortgage loans — The impaired mortgage loans presented above were written down to their estimated fair values at the date the impairments were recognized and are reported as losses above. Subsequent improvements in estimated fair value on previously impaired loans recorded through a reduction in the previously established valuation allowance are reported as gains above. Nonrecurring fair value adjustments on mortgage loans are based on the fair value of underlying collateral or discounted cash flows and were classified as Level 3 in the fair value hierarchy.
(2)
Limited partnership interests — The impaired investments presented above were accounted for using the cost method. Impairments on these cost method investments were recognized at estimated fair value determined using the net asset values of the Company’s ownership interest as provided in the financial statements of the investees. The valuation of these investments is considered Level 3 in the fair value hierarchy due to the limited activity and price transparency inherent in the market for such investments.
(3)
Real estate investment - The impaired real estate investments presented above were written down to their estimated fair value at the date of impairment and are reported as losses above. The impairments were based on third-party appraisal values obtained and reviewed by the Company.
Financial Instruments Carrying Amounts And Estimated Fair Value [Text Block]
June 30, 2013
 
Carrying Value    
 
Estimated Fair    
Value
 
Fair Value Measurement Using:
Level 1           
 
Level 2           
 
Level 3           
Assets:
 
 
 
 
 
 
 
 
 
 
Mortgage loans on real estate
 
$
2,377,246

 
$
2,416,787

 
$
—

 
$
—

 
$
2,416,787

Policy loans
 
1,245,252

 
1,245,252

 
—

 
1,245,252

 
—

Funds withheld at interest(1)
 
5,884,501

 
6,331,471

 
—

 
—

 
6,331,471

Cash and cash equivalents(2)
 
625,796

 
625,796

 
625,796

 
—

 
—

Short-term investments(2)
 
17,509

 
17,509

 
17,509

 
—

 
—

Other invested assets(2)
 
524,810

 
561,899

 
4,635

 
37,590

 
519,674

Accrued investment income
 
233,153

 
233,153

 
—

 
233,153

 
—

Liabilities:
 
 
 
 
 
 
 
 
 
 
Interest-sensitive contract liabilities(1)
 
$
11,250,921

 
$
11,392,786

 
$
—

 
$
—

 
$
11,392,786

Long-term debt
 
1,935,533

 
2,080,701

 
—

 
—

 
2,080,701

Collateral finance facility
 
487,556

 
373,774

 
—

 
—

 
373,774

December 31, 2012:
 
Carrying Value
 
Estimated Fair
Value
 
Fair Value Measurement Using:
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
 
 
Mortgage loans on real estate
 
$
2,300,587

 
$
2,426,688

 
$
—

 
$
—

 
$
2,426,688

Policy loans
 
1,278,175

 
1,278,175

 
—

 
1,278,175

 
—

Funds withheld at interest(1)
 
5,837,359

 
6,362,324

 
—

 
—

 
6,362,324

Cash and cash equivalents(2)
 
684,028

 
684,028

 
684,028

 
—

 
—

Short-term investments(2)
 
48,951

 
48,951

 
48,951

 
—

 
—

Other invested assets(2)
 
596,336

 
626,358

 
—

 
32,250

 
594,108

Accrued investment income
 
201,344

 
201,344

 
—

 
201,344

 
—

Liabilities:
 
 
 
 
 
 
 
 
 
 
Interest-sensitive contract liabilities(1)
 
$
11,566,962

 
$
11,926,339

 
$
—

 
$
—

 
$
11,926,339

Long-term debt
 
1,815,253

 
2,014,062

 
—

 
—

 
2,014,062

Collateral finance facility
 
652,010

 
456,050

 
—

 
—

 
456,050

 
(1)
Carrying values presented herein differ from those presented in the condensed consolidated balance sheets because certain items within the respective financial statement caption are embedded derivatives and are measured at fair value on a recurring basis.
(2)
Carrying values presented herein differ from those presented in the condensed consolidated balance sheets because certain items within the respective financial statement caption are measured at fair value on a recurring basis.