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Derivative Instruments Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 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:
 
June 30,
2013
 
December 31,
2012
 
(Dollars in thousands)
Assets
 
 
 
Derivative instruments
 
 
 
Call options
$
629,135

 
$
415,258

Other assets
 
 
 
2015 notes hedges
71,400

 
43,105

Interest rate caps
5,565

 
3,247

Interest rate swap
274

 
—

 
$
706,374

 
$
461,610

Liabilities
 
 
 
Policy benefit reserves - annuity products
 
 
 
Fixed index annuities - embedded derivatives
$
3,747,052

 
$
3,337,556

Other liabilities
 
 
 
2015 notes embedded derivatives
71,400

 
43,105

Interest rate swap
—

 
4,261

 
$
3,818,452

 
$
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
June 30,
 
Six Months Ended
June 30,
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands)
Change in fair value of derivatives:
 
 
 
 
 
 
 
Call options
$
58,200

 
$
(122,241
)
 
$
402,854

 
$
119,279

2015 notes hedges
197

 
(24,163
)
 
28,295

 
(7,412
)
Interest rate swap
3,802

 
(4,038
)
 
4,535

 
(3,148
)
Interest rate caps
1,841

 
(405
)
 
2,318

 
(405
)
 
$
64,040

 
$
(150,847
)
 
$
438,002

 
$
108,314

Change in fair value of embedded derivatives:
 
 
 
 
 
 
 
2015 notes embedded derivatives
$
197

 
$
(24,163
)
 
$
28,295

 
$
(7,412
)
Fixed index annuities
(408,606
)
 
(56,826
)
 
(73,432
)
 
285,489

 
$
(408,409
)
 
$
(80,989
)
 
$
(45,137
)
 
$
278,077
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:
 
 
 
 
 
 
June 30, 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
 
$
1,075,595

 
$
39,162

 
$
568,786

 
$
16,533

Barclays
 
A
 
A2
 
3,617,125

 
131,476

 
3,463,777

 
103,929

BNP Paribas
 
A+
 
A2
 
1,895,967

 
68,448

 
2,207,097

 
60,301

Citibank, N.A.
 
A
 
A3
 
1,501,845

 
64,812

 
2,878,588

 
67,592

Credit Suisse
 
A
 
A1
 
2,922,641

 
78,855

 
936,625

 
21,518

Deutsche Bank
 
A
 
A2
 
874,245

 
42,587

 
886,688

 
20,787

HSBC
 
AA-
 
A1
 
301,678

 
14,010

 
295,520

 
6,539

J.P. Morgan
 
A+
 
Aa3
 
643,078

 
20,635

 
735,016

 
21,940

Morgan Stanley
 
A-
 
Baa1
 
1,961,040

 
70,329

 
1,590,505

 
40,113

Wells Fargo
 
AA-
 
Aa3
 
2,374,518

 
98,821

 
2,060,903

 
56,006

 
 
 
 
 
 
$
17,167,732

 
$
629,135

 
$
15,623,505

 
$
415,258
Schedule of Interest Rate Derivatives [Table Text Block]
Details regarding the interest rate swap are as follows:
 
 
Notional
 
 
 
Pay
 
 
 
June 30, 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
 
$
274

 
$
(4,261
)

___________________________________
* - three month London Interbank Offered Rate
Details regarding the interest rate caps are as follows:
 
 
Notional
 
 
 
Cap
 
 
 
June 30, 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
 
$
2,804

 
$
1,634

July 8, 2021
 
12,000

 
*LIBOR
 
2.50
%
 
SunTrust
 
841

 
490

July 29, 2021
 
27,000

 
*LIBOR
 
2.50
%
 
SunTrust
 
1,920

 
1,123

 
 
$
79,000

 
 
 
 
 
 
 
$
5,565

 
$
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 June 30, 2013, we held $6.4 million of cash and cash equivalents from the counterparty for derivative collateral related to the swap and caps, which is included in other liabilities on our consolidated balance sheets.