INVESTMENT OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2013

Summary of net realized investment gains (losses) for invested assets

	For The						For The
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
	(Dollars In Thousands)
Fixed maturities	$	10,546		$	22,889		$	42,136		$	58,984
Equity securities	—			(241		)	2,367			(93		)
Impairments on fixed maturity securities	(7,421		)	(8,499		)	(13,918		)	(40,537		)
Impairments on equity securities	(1,260		)	—			(3,347		)	—
Modco trading portfolio	(25,960		)	104,865			(167,982		)	179,027
Other investments	(3,854		)	(5,037		)	(10,262		)	(12,080		)
Total realized gains (losses) - investments	$	(27,949	)	$	113,977		$	(151,006	)	$	185,301

Schedule of amortized cost and fair value of the Company's investments classified as available-for-sale

The amortized cost and fair value of the Company’s investments classified as available-for-sale as of September 30, 2013 and December 31, 2012, are as follows:

			Gross		Gross					Total OTTI
	Amortized		Unrealized		Unrealized			Fair		Recognized
	Cost		Gains		Losses			Value		in OCI(1)
	(Dollars In Thousands)
2013
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,438,269	$	48,049	$	(22,291	)	$	1,464,027	$	(914	)
Commercial mortgage-backed securities	898,377		30,287		(17,057		)	911,607		—
Other asset-backed securities	928,367		15,532		(66,735		)	877,164		(66		)
U.S. government-related securities	1,204,908		38,525		(29,997		)	1,213,436		—
Other government-related securities	38,406		2,722		—			41,128		—
States, municipals, and political subdivisions	1,191,682		114,898		(6,259		)	1,300,321		—
Corporate bonds	18,521,648		1,541,774		(349,274		)	19,714,148		(1,308		)
	24,221,657		1,791,787		(491,613		)	25,521,831		(2,288		)
Equity securities	424,658		4,908		(29,779		)	399,787		106
Short-term investments	108,685		—		—			108,685		—
	$	24,755,000	$	1,796,695	$	(521,392	)	$	26,030,303	$	(2,182	)
2012
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,766,260	$	92,417	$	(19,347	)	$	1,839,330	$	(406	)
Commercial mortgage-backed securities	797,844		72,577		(598		)	869,823		—
Other asset-backed securities	1,023,649		12,788		(61,424		)	975,013		(241		)
U.S. government-related securities	1,097,501		71,536		(591		)	1,168,446		—
Other government-related securities	93,565		7,258		(45		)	100,778		—
States, municipals, and political subdivisions	1,188,019		255,898		(264		)	1,443,653		—
Corporate bonds	17,687,164		2,726,858		(48,395		)	20,365,627		(5,488		)
	23,654,002		3,239,332		(130,664		)	26,762,670		(6,135		)
Equity securities	352,272		11,881		(9,993		)	354,160		—
Short-term investments	97,852		—		—			97,852		—
	$	24,104,126	$	3,251,213	$	(140,657	)	$	27,214,682	$	(6,135	)

(1)These amounts are included in the gross unrealized gains and gross unrealized losses columns above.

Schedule of amortized cost and fair value of the Company's investments classified as held-to-maturity

The amortized cost and fair value of the Company’s investments classified as held-to-maturity as of September 30, 2013 and December 31, 2012, are as follows:

			Gross		Gross					Total OTTI
	Amortized		Unrealized		Unrealized			Fair		Recognized
	Cost		Gains		Losses			Value		in OCI
	(Dollars In Thousands)
2013
Fixed maturities:
Other	$	350,000	$	—	$	(8,203	)	$	341,797	$	—
	$	350,000	$	—	$	(8,203	)	$	341,797	$	—
2012
Fixed maturities:
Other	$	300,000	$	19,163	$	—		$	319,163	$	—
	$	300,000	$	19,163	$	—		$	319,163	$	—

Schedule of amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities, by expected maturity

	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Due in one year or less	$	554,916	$	569,362	$	—	$	—
Due after one year through five years	3,227,348		3,508,934		—		—
Due after five years through ten years	7,548,558		7,870,781		—		—
Due after ten years	12,890,835		13,572,754		350,000		341,797
	$	24,221,657	$	25,521,831	$	350,000	$	341,797

Schedule of credit losses on fixed maturities held by the Company for which a portion of other-than-temporary impairments were recognized in other comprehensive income (loss)

	For The					For The
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013			2012
	(Dollars In Thousands)
Beginning balance	$	51,814		$	100,894	$	121,237		$	69,476
Additions for newly impaired securities	1,663			—		3,278			19,307
Additions for previously impaired securities	4,840			6,866		7,894			18,977
Reductions for previously impaired securities due to a change in expected cash flows	(6,537		)	—		(73,392		)	—
Reductions for previously impaired securities that were sold in the current period	—			—		(7,237		)	—
Ending balance	$	51,780		$	107,760	$	51,780		$	107,760

Schedule of investments' gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position

The following table includes the gross unrealized losses and fair value of the Company’s investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2013:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	247,085	$	(13,653	)	$	67,362	$	(8,638	)	$	314,447	$	(22,291	)
Commercial mortgage-backed securities	379,783		(16,807		)	6,656		(250		)	386,439		(17,057		)
Other asset-backed securities	129,567		(6,567		)	532,205		(60,168		)	661,772		(66,735		)
U.S. government-related securities	601,537		(29,179		)	14,847		(818		)	616,384		(29,997		)
Other government-related securities	—		—			—		—			—		—
States, municipalities, and political subdivisions	81,281		(6,059		)	315		(200		)	81,596		(6,259		)
Corporate bonds	4,289,625		(322,229		)	189,197		(27,045		)	4,478,822		(349,274		)
Equities	255,007		(21,313		)	21,680		(8,466		)	276,687		(29,779		)
	$	5,983,885	$	(415,807	)	$	832,262	$	(105,585	)	$	6,816,147	$	(521,392	)

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	100,412	$	(9,578	)	$	166,000	$	(9,769	)	$	266,412	$	(19,347	)
Commercial mortgage-backed securities	50,506		(598		)	—		—			50,506		(598		)
Other asset-backed securities	479,223		(28,179		)	242,558		(33,245		)	721,781		(61,424		)
U.S. government-related securities	106,806		(591		)	—		—			106,806		(591		)
Other government-related securities	14,955		(45		)	—		—			14,955		(45		)
States, municipalities, and political subdivisions	11,526		(264		)	—		—			11,526		(264		)
Corporate bonds	775,593		(23,630		)	363,128		(24,765		)	1,138,721		(48,395		)
Equities	35,059		(5,150		)	21,754		(4,843		)	56,813		(9,993		)
	$	1,574,080	$	(68,035	)	$	793,440	$	(72,622	)	$	2,367,520	$	(140,657	)

Summary of change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale

	For The					For The
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013			2012		2013			2012
	(Dollars In Thousands)
Fixed maturities	$	(155,839	)	$	436,690	$	(1,175,521	)	$	796,549
Equity securities	(12,791		)	4,531		(17,393		)	8,226

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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