RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2013

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

12.          RELATED PARTY TRANSACTIONS

As of March 31, 2013, Shades Creek Captive Insurance Company (“Shades Creek”) was a direct wholly owned insurance subsidiary of the Company. On April 1, 2013, the Company paid to its parent, PLC, a dividend that consisted of all outstanding stock of Shades Creek. The Company will continue to reinsure guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum death benefits (“GMDB”) riders to Shades Creek, which includes a funds withheld account that is considered a derivative. For more information related to the derivative, refer to Note 13, Fair Value of Financial Instruments and Note 14, Derivative Financial Instruments. For cash flow purposes, portions of the dividend were treated as non-cash transactions.

The following balances from Shades Creek’s balance sheet as of March 31, 2013, with the exception of cash, were excluded from the Company’s cash flow statement for the nine months ended September 30, 2013.

	As of
	March 31, 2013
	(Dollars In Thousands)
Assets
Other long-term investments	$	34,093
Short-term investments	745
Total investments	34,838
Cash	44,963
Accounts and premiums receivable	16,036
Deferred policy acquisition cost	123,847
Other assets	48,953
Total assets	$	268,637
Liabilities
Future policy benefits and claims	$	1,626
Other liabilities	178,321
Deferred income taxes	2,459
Total liabilities	182,406
Total equity	86,231
Total liabilities and equity	$	268,637