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Derivative Instruments Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
We recognize all derivative instruments as assets or liabilities in the consolidated balance sheets at fair value. None of our derivatives qualify for hedge accounting, thus, any change in the fair value of the derivatives is recognized immediately in the consolidated statements of operations. The fair value of our derivative instruments, including derivative instruments embedded in fixed index annuity contracts, presented in the consolidated balance sheets are as follows:
 
March 31,
2013
 
December 31,
2012
 
(Dollars in thousands)
Assets
 
 
 
Derivative instruments
 
 
 
Call options
$
719,683

 
$
415,258

Other assets
 
 
 
2015 notes hedges
71,203

 
43,105

Interest rate caps
3,724

 
3,247

 
$
794,610

 
$
461,610

Liabilities
 
 
 
Policy benefit reserves - annuity products
 
 
 
Fixed index annuities - embedded derivatives
$
3,848,902

 
$
3,337,556

Other liabilities
 
 
 
2015 notes embedded derivatives
71,203

 
43,105

Interest rate swap
3,528

 
4,261

 
$
3,923,633

 
$
3,384,922
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The changes in fair value of derivatives included in the unaudited consolidated statements of operations are as follows:
 
Three Months Ended
March 31,
 
2013
 
2012
 
(Dollars in thousands)
Change in fair value of derivatives:
 
 
 
Call options
$
344,654

 
$
241,520

2015 notes hedges
28,098

 
16,751

Interest rate swap
733

 
890

Interest rate caps
477

 
—

 
$
373,962

 
$
259,161

Change in fair value of embedded derivatives:
 
 
 
2015 notes embedded derivatives
$
28,098

 
$
16,751

Fixed index annuities
335,174

 
342,315

 
$
363,272

 
$
359,066
Schedule of Derivative Instruments [Table Text Block]
The notional amount and fair value of our call options by counterparty and each counterparty's current credit rating are as follows:
 
 
 
 
 
 
March 31, 2013
 
December 31, 2012
Counterparty
 
Credit Rating (S&P)
 
Credit Rating (Moody's)
 
Notional
Amount
 
Fair Value
 
Notional
Amount
 
Fair Value
 
 
 
 
 
 
(Dollars in thousands)
Bank of America
 
A
 
A3
 
$
813,718

 
$
33,168

 
$
568,786

 
$
16,533

Barclays
 
A+
 
A2
 
3,604,972

 
140,646

 
3,463,777

 
103,929

BNP Paribas
 
A+
 
A2
 
2,272,043

 
90,994

 
2,207,097

 
60,301

Citibank, N.A.
 
A
 
A3
 
2,804,662

 
154,838

 
2,878,588

 
67,592

Credit Suisse
 
A+
 
A1
 
1,386,267

 
51,175

 
936,625

 
21,518

Deutsche Bank
 
A+
 
A2
 
783,364

 
40,958

 
886,688

 
20,787

HSBC
 
AA-
 
Aa3
 
299,965

 
13,583

 
295,520

 
6,539

J.P. Morgan
 
A+
 
Aa3
 
589,888

 
28,279

 
735,016

 
21,940

Morgan Stanley
 
A
 
Baa1
 
1,632,282

 
73,496

 
1,590,505

 
40,113

Wells Fargo
 
AA-
 
Aa3
 
2,105,038

 
92,546

 
2,060,903

 
56,006

 
 
 
 
 
 
$
16,292,199

 
$
719,683

 
$
15,623,505

 
$
415,258
Schedule of Interest Rate Derivatives [Table Text Block]
Details regarding the interest rate swap are as follows:
 
 
Notional
 
 
 
Pay
 
 
 
March 31, 2013
 
December 31, 2012
Maturity Date
 
Amount
 
Receive Rate
 
Rate
 
Counterparty
 
Fair Value
 
Fair Value
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
March 15, 2021
 
$
85,500

 
*LIBOR
 
2.415
%
 
SunTrust
 
$
(3,528
)
 
$
(4,261
)

___________________________________
* - three month London Interbank Offered Rate
Details regarding the interest rate caps are as follows:
 
 
Notional
 
 
 
Cap
 
 
 
March 31, 2013
 
December 31, 2012
Maturity Date
 
Amount
 
Floating Rate
 
Rate
 
Counterparty
 
Fair Value
 
Fair Value
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
July 7, 2021
 
$
40,000

 
*LIBOR
 
2.50
%
 
SunTrust
 
$
1,874

 
$
1,634

July 8, 2021
 
12,000

 
*LIBOR
 
2.50
%
 
SunTrust
 
563

 
490

July 29, 2021
 
27,000

 
*LIBOR
 
2.50
%
 
SunTrust
 
1,287

 
1,123

 
 
$
79,000

 
 
 
 
 
 
 
$
3,724

 
$
3,247

___________________________________
* - three month London Interbank Offered Rate
The interest rate swap has a forward starting date beginning in March 2014 and converts floating rates to fixed rates for seven years. The interest rate caps have a forward starting date beginning in July 2014 and cap our interest rates for seven years. As of March 31, 2013 we held $0.5 million of cash and cash equivalents to the counterparty for derivative collateral related to the swap and caps, which is included in other liabilities on our consolidated balance sheets.