2.2.0.25falsefalse10501 - Disclosure - FAIR VALUE OF FINANCIAL INSTRUMENTStruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) / shares USD ($) $Duration_1_1_2010_To_12_31_2010http://www.sec.gov/CIK0001163348duration2010-01-01T00:00:002010-12-31T00:00:00Unit14Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0Unit1Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit13Standardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0us-gaap_FairValueByBalanceSheetGroupingMethodologyAndAssumptionsAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseFAIR VALUE OF FINANCIAL INSTRUMENTS3false0us-gaap_FairValueByBalanceSheetGroupingTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<div> <table style="font-family: Arial, Helvetica; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="97%"> </td></tr> <tr valign="top"><td><b><font style="font-family: 'Times New Roman', Times;" class="_mt">5.  </font></b> </td> <td><b><font style="font-family: 'Times New Roman', Times;" class="_mt">FAIR VALUE OF FINANCIAL INSTRUMENTS</font></b> </td></tr></table> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">In accordance with U.S. GAAP, fair value is defined as 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. There is a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon whether the inputs to the valuation of an asset or liability are observable or unobservable in the market at the measurement date, with quoted market prices being the highest level (Level 1) and unobservable inputs being the lowest level (Level 3). A fair value measurement will fall within the level of the hierarchy based on the input that is significant to determining such measurement. The three levels are defined as follows: </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="4%"> </td> <td width="2%"> </td> <td width="94%"> </td></tr> <tr style="font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td> </td> <td><b>• </b> </td> <td align="left"><b>Level 1:</b>  Observable inputs to the valuation methodology that are quoted prices (unadjusted) for identical assets or liabilities in active markets. </td></tr> <tr style="line-height: 6pt; font-size: 1pt;"><td> </td></tr> <tr style="font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td> </td> <td><b>• </b> </td> <td align="left"><b>Level 2:</b>  Observable inputs to the valuation methodology other than quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. </td></tr> <tr style="line-height: 6pt; font-size: 1pt;"><td> </td></tr> <tr style="font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td> </td> <td><b>• </b> </td> <td align="left"><b>Level 3:</b>  Inputs to the valuation methodology which are unobservable for the asset or liability. </td></tr></table> <table style="font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr style="font-size: 1pt;" valign="bottom"><td width="35%"> </td> <td width="2%"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="9%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="10%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="10" align="center"><b>Fair value measurement using:</b> </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Quoted Prices<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>in Active<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Significant Other<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Significant<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Markets for<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Observable<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Unobservable<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Carrying<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Total Fair<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Identical Assets<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Inputs<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Inputs<br /></b></td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Amount</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Value</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>(Level 1)</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>(Level 2)</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>(Level 3)</b> </td> <td>  </td></tr> <tr style="line-height: 3pt; font-size: 1pt;"><td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;"><b>Available for sale securities:</b> </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">U.S. Government and Government agencies </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">91,953 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">91,953 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">65,234 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">26,719 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;"><font style="white-space: nowrap;" class="_mt">Non-U.S.</font> Government and </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Government agencies </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">145,384 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">145,384 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">145,384 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">States, municipalities and political subdivisions </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">118,177 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">118,177 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">118,177 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Corporate debt </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">536,335 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">536,335 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">536,335 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Total available for sale fixed maturity investments </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">891,849 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">891,849 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;"><b>Trading securities:</b> </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">U.S. Government and Government agencies </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,229,720 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,229,720 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,088,967 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">140,753 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;"><font style="white-space: nowrap;" class="_mt">Non-U.S.</font> Government and Government agencies </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">120,793 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">120,793 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">120,793 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">States, municipalities and political subdivisions </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">127,436 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">127,436 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">127,436 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Corporate debt </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,990,215 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,990,215 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,990,215 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Mortgage-backed </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,751,883 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,751,883 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,579,324 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">172,559 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Asset-backed </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">549,050 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">549,050 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">500,343 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">48,707 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Total trading fixed maturity investments </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">5,769,097 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">5,769,097 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Total fixed maturity investments </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">6,660,946 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">6,660,946 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Equity securities, fair value </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">174,976 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">174,976 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">174,976 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Hedge funds, fair value </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">347,632 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">347,632 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">347,632 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Total investments </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">7,183,554 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">7,183,554 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,329,177 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">5,285,479 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">568,898 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Senior notes </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">797,700 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">850,570 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">850,570 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr></table> <div style="text-indent: 0%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">The following describes the valuation techniques used by the Company to determine the fair value of financial instruments held as of December 31, 2010. </div> <div style="margin-top: 3pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>U.S. government and U.S. government agencies: </b>Comprised primarily of bonds issued by the U.S. Treasury, the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. The fair values of the Company's U.S. government securities are based on quoted market prices in active markets and are included in the Level 1 fair value hierarchy. The Company believes the market for U.S. Treasury securities is an actively traded market given the high level of daily trading volume. The fair values of U.S. government agency securities are priced using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. government agency securities are included in the Level 2 fair value hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b><font style="white-space: nowrap;" class="_mt">Non-U.S. government</font> and government agencies: </b>Comprised of fixed income obligations of <font style="white-space: nowrap;" class="_mt">non-U.S. governmental</font> entities. The fair values of these securities are based on prices obtained from international indices and are included in the Level 2 fair value hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>States, municipalities and political subdivisions:</b> Comprised of fixed income obligations of U.S. domiciled state and municipality entities. The fair values of these securities are based on prices obtained from the new issue market, and are included in the Level 2 fair value hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>Corporate debt:</b> Comprised of bonds issued by corporations that are diversified across a wide range of issuers and industries. The fair values of corporate bonds that are short-term are priced using spread above the London Interbank Offered Rate yield curve, and the fair value of corporate bonds that are long-term are priced using the spread above the risk-free yield curve. The spreads are sourced from broker-dealers, trade prices and the new issue market. As the significant inputs used to price corporate bonds are observable market inputs, the fair values of corporate bonds are included in the Level 2 fair value hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>Mortgage-backed:</b> Primarily comprised of residential and commercial mortgages originated by both U.S. government agencies (such as the Federal National Mortgage Association) and <font style="white-space: nowrap;" class="_mt">non-U.S. government</font> agencies originators. The fair values of mortgage-backed securities originated by U.S. government agencies and <font style="white-space: nowrap;" class="_mt">non-U.S. government</font> agencies are based on a pricing model that incorporates prepayment speeds and spreads to determine appropriate average life of mortgage-backed securities. The spreads are sourced from broker-dealers, trade prices and the new issue market. As the significant inputs used to price the mortgage-backed securities are observable market inputs, the fair values of these securities are included in the Level 2 fair value hierarchy, unless the significant inputs used to price the mortgage-backed securities are broker-dealer quotes and the Company is not able to determine if those quotes are based on observable market inputs, in which case the fair value is included in the Level 3 hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>Asset-backed:</b> Principally comprised of bonds backed by pools of automobile loan receivables, home equity loans, credit card receivables and collateralized loan obligations originated by a variety of financial institutions. The fair values of asset-backed securities are priced using prepayment speed and spread inputs that are sourced from the new issue market or broker-dealer quotes. As the significant inputs used to price the asset-backed securities are observable market inputs, the fair values of these securities are included in the Level 2 fair value hierarchy, unless the significant inputs used to price the asset-backed securities are broker-dealer quotes and the Company is not able to determine if those quotes are based on observable market inputs, in which case the fair value is included in the Level 3 hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>Hedge funds:</b> Comprised of hedge funds invested in a range of diversified strategies. In accordance with U.S. GAAP, the fair values of the hedge funds are based on the net asset value of the funds as reported by the fund manager which the Company believes is an unobservable input, and as such, the fair values of those hedge funds are included in the Level 3 fair value hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>Equity securities:</b> The fair value of the equity securities are priced from market exchanges and therefore included in the Level 1 fair value hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"><b>Senior notes:</b> The fair value of the senior notes is based on trades as reported in Bloomberg. As of December 31, 2010, the 7.50% Senior Notes and 5.50% Senior Notes (each as defined in Note 8) were traded at 109.8% and 100.5% of their principal amount, providing an effective yield of 5.4% and 5.4%, respectively. The fair value of the senior notes is included in the Level 2 fair value hierarchy. </div> <table style="font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr style="font-size: 1pt;" valign="bottom"><td width="63%"> </td> <td width="2%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="10" align="center"><b>Fair value measurement using significant unobservable inputs (Level 3):</b> </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Mortgage-<br /></b></td> <td>  </td> <td>  </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center">  </td> <td>  </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Hedge Funds</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>backed</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>Asset-backed</b> </td> <td>  </td></tr> <tr style="line-height: 3pt; font-size: 1pt;"><td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;"><b>Year Ended December 31, 2010</b> </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Opening balance </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">184,725 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">253,979 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">104,871 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Total realized and unrealized gains included in net income </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">18,368 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">24,983 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">818 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Total realized and unrealized losses included in net income </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(965 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(9,247 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(233 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Change in unrealized gains included in OCI </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">5,781 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">70 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Change in unrealized losses included in OCI </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(3,026 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(6 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Purchases </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">155,504 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">138,995 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">64,275 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Sales </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(10,000 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(252,769 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(21,944 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Cumulative effect adjustment related to the adoption of ASU <font style="white-space: nowrap;" class="_mt">2010-11</font> </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,796 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(19 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Transfers into Level 3 </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">56,582 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">56,033 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Transfers out of Level 3 </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(44,515 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(155,158 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Ending balance </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">347,632 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">172,559 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">48,707 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;"><b>Year Ended December 31, 2009</b> </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Opening balance </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">48,573 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Total gains or losses included in earnings: </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Realized (losses) gains </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(3,007 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Change in fair value of hedge fund investments </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">22,366 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Purchases or sales </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">116,793 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Transfers in and/or (out) of Level 3 </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">253,979 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">104,871 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Ending balance </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">184,725 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">253,979 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">104,871 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="text-indent: 0%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">The Company attempts to verify the significant inputs used by broker-dealers in determining the fair value of the securities priced by them. If the Company could not obtain sufficient information to determine if the broker-dealers were using significant observable inputs, such securities have been transferred to Level 3 fair value hierarchy. The Company believes the prices obtained from the broker-dealers are the best estimate of fair value of the securities being priced as the broker-dealers are typically involved in the initial pricing of the security, and the Company has compared the price per the broker-dealer to other pricing sources and noted no material differences. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">Of the total realized and unrealized gains and losses included in net income and OCI for the year ended December 31, 2010, $15,372, $9,282 and $(145) related to hedge funds, mortgage-backed and asset-backed securities, respectively, are attributable to the change in unrealized gains and losses for securities still held as of December 31, 2010. The change in unrealized gains and losses are included in "net realized investment gains" on the consolidated income statement. </div> <table style="font-family: Arial, Helvetica; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="97%"> </td></tr> <tr valign="top"><td><b><font style="font-family: 'Times New Roman', Times;" class="_mt"> </font></b></td> <td> </td></tr></table> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">During the year ended December 31, 2010, the Company transferred $44,515 of mortgage-backed securities and $155,158 of asset-backed securities from Level 3 to Level 2 in the fair value hierarchy. The Company transferred those securities as it no longer utilized broker-dealer quotes and instead used other pricing sources that have significant observable inputs. The Company recognizes transfers between levels at the end of the reporting period. </div> </div>5.   FAIR VALUE OF FINANCIAL INSTRUMENTS   In accordance with U.S. GAAP, fair value is defined as the price that would be received tofalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis item represents certain of the disclosures concerning the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph a, c(1), c(2), c(3), d Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 18 -Subparagraph c(2), d, e, f Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 10 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 19 -Subparagraph a, b, c(1), d(1) Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 14 -Subparagraph a Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15 -Subparagraph b-d falsefalseFAIR VALUE OF FINANCIAL INSTRUMENTS12FAIR VALUE OF FINANCIAL INSTRUMENTSUnKnownUnKnownUnKnownUnKnownfalsetrue