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Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)
Unaudited quarterly results of operations are summarized below.
 
Quarter ended
 
March 31,
 
June 30,
 
September 30,
 
December 31,
 
(Dollars in thousands, except per share data)
2013
 
 
 
 
 
 
 
Premiums and product charges
$
34,565

 
$
35,062

 
$
36,325

 
$
42,986

Net investment income
329,690

 
336,143

 
354,147

 
363,947

Change in fair value of derivatives
373,962

 
64,040

 
193,028

 
444,985

Net realized gains (losses) on investments, excluding OTTI losses
10,585

 
15,689

 
(2,077
)
 
16,364

Net OTTI losses recognized in operations
(3,237
)
 
(2,775
)
 
(222
)
 
—

Loss on extinguishment of debt
—

 
(589
)
 
(938
)
 
(30,988
)
Total revenues
745,565

 
447,570

 
580,263

 
837,294

Net income
26,031

 
120,113

 
56,181

 
50,958

Earnings per common share
0.41

 
1.87

 
0.86

 
0.73

Earnings per common share—assuming dilution
0.38

 
1.71

 
0.75

 
0.65

2012
 
 
 
 
 
 
 
Premiums and product charges
$
37,731

 
$
40,817

 
$
47,413

 
$
39,720

Net investment income
326,910

 
320,259

 
318,594

 
321,160

Change in fair value of derivatives
259,161

 
(150,847
)
 
161,090

 
(48,266
)
Net realized gains (losses) on investments, excluding OTTI losses
(6,076
)
 
(611
)
 
(1,238
)
 
1,471

Net OTTI losses recognized in operations
(2,881
)
 
(978
)
 
(1,686
)
 
(9,387
)
Total revenues
614,845

 
208,640

 
524,173

 
304,698

Net income (loss)
10,471

 
18,759

 
(7,829
)
 
36,397

Earnings (loss) per common share
0.18

 
0.31

 
(0.13
)
 
0.58

Earnings (loss) per common share—assuming dilution
0.16

 
0.30

 
(0.13
)
 
0.55


Earnings per common share for each quarter is computed independently of earnings per common share for the year. As a result, the sum of the quarterly earnings per common share amounts may not equal the earnings per common share for the year.
The differences between the change in fair value of derivatives for each quarter primarily correspond to the performance of the indices upon which our call options are based. The comparability of net income (loss) is impacted by the application of fair value accounting to our fixed index annuity business is as follows:
 
Quarter ended
 
March 31,
 
June 30,
 
September 30,
 
December 31,
 
(Dollars in thousands)
2013
$
10,973

 
$
(80,658
)
 
$
(5,601
)
 
$
(23,418
)
2012
16,317

 
5,070

 
18,148

 
(8,289
)


During the fourth quarter of 2013, we identified certain classification errors related to life contingent immediate annuities in our consolidated statements of operations as described in Note 1. We evaluated the materiality of the errors from qualitative and quantitative perspectives and concluded they were not material to any prior periods. However, we revised the premiums and product charges listed above for all quarterly periods prior to the quarter ended December 31, 2013 to be consistent with the presentation for the quarter ended December 31, 2013. The changes resulted in increases to premiums and product charges of $10.4 million, $8.6 million and $7.4 million for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, respectively and increases of $15.1 million, $15.7 million, $20.2 million and $12.8 million for the quarters ended March 31, 2012, June 30, 2012, September 30, 2012 and December 31, 2012, respectively.