Investments (Tables)

12 Months Ended

Dec. 31, 2011

Summary Of Fixed Maturities And Equity Securities Available For Sale By Component

A summary of fixed maturities available for sale and equity securities by cost or amortized cost and estimated fair value at December 31, 2011 and 2010 is as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amount per the Balance Sheet		% of Total Fixed Maturities*
2011:
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	65,283	$	1,756	$	(4	)	$	67,035	$	67,035		1	%
States, municipalities, and political subdivisions		1,213,082		118,636		(1,896	)		1,329,822		1,329,822		11
Foreign governments		21,832		1,327		0			23,159		23,159		0
Corporates		8,357,809		1,051,019		(137,908	)		9,270,920		9,270,920		78
Collateralized debt obligations		60,437		0		(30,117	)		30,320		30,320		0
Other asset-backed securities		42,862		3,210		(1,392	)		44,680		44,680		0
Redeemable preferred stocks		1,162,939		27,184		(67,854	)		1,122,269		1,122,269		10	%
Total fixed maturities		10,924,244		1,203,132		(239,171	)		11,888,205		11,888,205		100	%
Equity securities		14,875		2,244		(63	)		17,056		17,056
Total fixed maturities and equity securities	$	10,939,119	$	1,205,376	$	(239,234	)	$	11,905,261	$	11,905,261

* At fair value

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amount per the Balance Sheet		% of Total Fixed Maturities
2010:
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	78,387	$	1,347	$	(1,060	)	$	78,674	$	78,674		1	%
States, municipalities, and political subdivisions		1,212,185		10,752		(41,811	)		1,181,126		1,181,126		11
Foreign governments		22,352		679		0			23,031		23,031		0
Corporates		7,707,938		423,076		(210,149	)		7,920,865		7,920,865		75
Collateralized debt obligations		56,525		0		(34,069	)		22,456		22,456		0
Other asset-backed securities		46,406		3,010		(678	)		48,738		48,738		1
Redeemable preferred stocks		1,311,704		36,405		(79,965	)		1,268,144		1,268,144		12
Total fixed maturities		10,435,497		475,269		(367,732	)		10,543,034		10,543,034		100	%
Equity securities		14,875		2,348		(69	)		17,154		17,154
Total fixed maturities and equity securities	$	10,450,372	$	477,617	$	(367,801	)	$	10,560,188	$	10,560,188

Schedule Of Fixed Maturities By Contractual Maturity

Actual maturities could differ from contractual maturities due to call or prepayment provisions.

	Amortized Cost		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	64,222	$	64,895
Due from one to five years		527,836		564,584
Due from five to ten years		669,994		728,784
Due from ten to twenty years		2,439,335		2,649,607
Due after twenty years		7,114,402		7,799,590
Mortgage-backed and asset-backed securities		108,455		80,745
	$	10,924,244	$	11,888,205

Schedule Of Analysis Of Investment Operations

Analysis of investment operations:

	Year Ended December 31,
	2011			2010			2009
Net investment income is summarized as follows:
Fixed maturities	$	683,101		$	662,202		$	609,566
Equity securities		1,558			1,183			1,287
Policy loans		29,293			27,248			25,394
Other long-term investments		2,439			3,064			6,482
Short-term investments		165			762			1,296
		716,556			694,459			644,025
Less investment expense		(23,528	)		(18,095	)		(11,485	)
Net investment income	$	693,028		$	676,364		$	632,540

Schedule Of Analysis Of Realized Gains (Losses) From Investments

An analysis of realized gains (losses) from investments is as follows:
Realized investment gains (losses):
Fixed maturities:
Sales and other	$	27,790		$	43,022		$	15,638
Writedowns		(20	)		(4,850	)		(143,166	)
Equity securities		0			1			(862	)
Loss on redemption of debt		0			(1,646	)		(1	)
Other		(1,866	)		813			(1,101	)
		25,904			37,340			(129,492	)
Applicable tax		(9,066	)		(13,070	)		44,147
Realized gains (losses) from investments, net of tax	$	16,838		$	24,270		$	(85,345	)

Schedule Of Analysis Of The Net Change In Unrealized Investement Gains (Losses)

An analysis of the net change in unrealized investment gains (losses) is as follows:
Equity securities	$	(98	)	$	432	$	2,377
Fixed maturities available for sale		856,424			562,921		1,240,781
Net change in unrealized gains (losses) on securities	$	856,326		$	563,353	$	1,243,158

Additional information about securities sold is as follows:

Summary Of Information About Securities Sold

Additional information about securities sold is as follows:

	At December 31,
	2011			2010			2009
Fixed maturities:
Proceeds from sales	$	236,662	**	$	314,904	*	$	830,892	*
Gross realized gains		28,249			29,821			69,249
Gross realized losses		(24,323	)		(13,361	)		(56,499	)
Equities:
Proceeds from sales		0			1			1,138
Gross realized gains		0			1			0
Gross realized losses		0			0			(862	)

* Proceeds from sales including discontined assets were $326 million in 2010 and $900 million in 2009.

** Includes $12.3 million of unsettled trades

Assets Measured At Fair Value On A Recurring Basis

The following tables represent the fair value of assets measured on a recurring basis at December 31, 2011 and 2010:

	Fair Value Measurements at December 31, 2011 Using:
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale:
Bonds:		`
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	0		$	67,035		$	0		$	67,035
States, municipalities, and political subdivisions		0			1,329,822			0			1,329,822
Foreign governments		0			23,159			0			23,159
Corporates		28,092			9,231,578			11,250			9,270,920
Collateralized debt obligations		0			0			30,320			30,320
Other asset-backed securities		0			37,558			7,122			44,680
Redeemable preferred stocks		217,613			904,656			0			1,122,269
Total fixed maturities		245,705			11,593,808			48,692			11,888,205
Equity securities		16,346			0			710			17,056
Total fixed maturities and equity securities	$	262,051		$	11,593,808		$	49,402		$	11,905,261
Percentage of total		2.2	%		97.4	%		0.4	%		100.0	%

Description	Fair Value Measurements at December 31, 2010 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	0		$	78,674		$	0		$	78,674
States, municipalities and political subdivisions		0			1,181,126			0			1,181,126
Foreign governments		0			23,031			0			23,031
Corporates		15,347			7,831,845			73,673			7,920,865
Collateralized debt obligations		0			0			22,456			22,456
Other asset-backed securities		0			40,696			8,042			48,738
Redeemable preferred stocks		270,189			997,955			0			1,268,144
Total fixed maturities		285,536			10,153,327			104,171			10,543,034
Equity securities		16,484			0			670			17,154
Total fixed maturities and equity securities	$	302,020		$	10,153,327		$	104,841		$	10,560,188
Percent of total		2.9	%		96.1	%		1.0	%		100.0	%

Schedule Of Changes In Assets Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table represents changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- backed securities			Collateralized debt Obligations			Corporates*			Other			Total
Balance at January 1, 2009	$	23,077		$	14,158		$	164,881		$	1,246		$	203,362
Total gains or losses:
Included in realized gains/losses		0			(83,458	)		(2,502	)		0			(85,960	)
Included in other comprehensive income		1,717			80,674			(2,728	)		12			79,675
Sales		0			125			(6,833	)		0			(6,708	)
Amortization		(183	)		1,014			2,366			(5	)		3,192
Other **		0			5,524			213			148			5,885
Transfers in to Level 3		0			0			48,995			4,435			53,430
Transfers out of Level 3		(16,630	)		0			(132,628	)		0			(149,258	)
Balance at December 31, 2009		7,981			18,037			71,764			5,836			103,618
Total gains or losses:
Included in realized gains/losses		0			(1,712	)		1,504			708			500
Included in other comprehensive income		255			2,445			14,711			(534	)		16,877
Sales		0			0			(5,862	)		(2,331	)		(8,193	)
Amortization		(194	)		2,333			2,536			(1	)		4,674
Other **		0			1,353			0			0			1,353
Transfers out of Level 3		0			0			(10,980	)		(3,008	)		(13,988	)
Balance at December 31, 2010		8,042			22,456			73,673			670		$	104,841
Total gains or losses:
Included in realized gains/losses		0			0			(12,542	)		0			(12,542	)
Included in other comprehensive income		(714	)		3,952			14,578			40			17,856
Sales		0			0			(13,875	)		0			(13,875	)
Amortization		(206	)		2,470			1,302			0			3,566
Other **		0			1,442			0			0			1,442
Transfers out of Level 3		0			0			(51,886	)		0			(51,886	)
Balance at December 31, 2011	$	7,122		$	30,320		$	11,250		$	710		$	49,402

* Includes redeemable preferred stocks

** Includes capitalized interest and foreign exchange adjustments.

Transfers in and out of each of the valuation levels of fair values

The following table presents transfers in and out of each of the valuation levels of fair values.

	2011								2010								2009
	In		Out			Net			In		Out			Net			In		Out			Net
Level 1	$	0	$	0		$	0		$	54	$	(4,848	)	$	(4,794	)	$	0	$	0		$	0
Level 2		51,886		0			51,886			18,836		(54	)		18,782			149,258		(53,430	)		95,828
Level 3		0		(51,886	)		(51,886	)		0		(13,988	)		(13,988	)		53,430		(149,258	)		(95,828	)

Writedowns For Other-Than-Temporary Impairments

The following table presents the writedowns recorded due to these impairments in accordance with accounting guidance and whether the writedown was charged to earnings or other comprehensive income.

Writedowns for Other-Than-Temporary Impairments

	2011				2010				2009
	Net Income		Other Comprehensive Income		Net Income		Other Comprehensive Income		Net Income		Other Comprehensive Income
Collateralized debt obligations	$	0	$	0	$	1,712	$	0		$  83,457	$	20,766
Corporate bonds		20		0		3,138		0		59,709		0
Total pre-tax	$	20	$	0	$	4,850	$	0		$143,166	$	20,766
After tax	$	13	$	0	$	3,152	$	0		$  94,234	$	13,498

Schedule Of Unrealized Investment Losses By Class Of Investment

Torchmark considers these investments to be only temporarily impaired.

ANALYSIS OF GROSS UNREALIZED INVESTMENT LOSSES

At December 31, 2011

	Less than Twelve Months					Twelve Months or Longer					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	279	$	(3	)	$	34	$	(1	)	$	313	$	(4	)
States, municipalities and political subdivisions		0		0			17,609		(1,896	)		17,609		(1,896	)
Foreign governments		0		0			0		0			0		0
Corporates		585,265		(38,249	)		612,338		(99,659	)		1,197,603		(137,908	)
Collateralized debt obligations		0		0			30,320		(30,117	)		30,320		(30,117	)
Other asset-backed securities		0		0			7,122		(1,392	)		7,122		(1,392	)
Redeemable preferred stocks		205,449		(14,250	)		367,450		(53,604	)		572,899		(67,854	)
Total fixed maturities		790,993		(52,502	)		1,034,873		(186,669	)		1,825,866		(239,171	)
Equity securities		386		(63	)		0		0			386		(63	)
Total fixed maturities and equity securities	$	791,379	$	(52,565	)	$	1,034,873	$	(186,669	)	$	1,826,252	$	(239,234	)

ANALYSIS OF GROSS UNREALIZED INVESTMENT LOSSES

At December 31, 2010

	Less than Twelve Months					Twelve Months or Longer					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	56,905	$	(1,060	)	$	0	$	0		$	56,905	$	(1,060	)
States, municipalities and political subdivisions		685,754		(26,734	)		66,591		(15,077	)		752,345		(41,811	)
Foreign governments		0		0			0		0			0		0
Corporates		1,284,966		(39,331	)		862,820		(170,818	)		2,147,786		(210,149	)
Collateralized debt obligations		0		0			22,331		(34,069	)		22,331		(34,069	)
Other asset-backed securities		0		0			8,042		(678	)		8,042		(678	)
Redeemable preferred stocks		199,362		(3,339	)		646,454		(76,626	)		845,816		(79,965	)
Total fixed maturities		2,226,987		(70,464	)		1,606,238		(297,268	)		3,833,225		(367,732	)
Equity securities		0		0			30		(69	)		30		(69	)
Total fixed maturities and equity securities	$	2,226,987	$	(70,464	)	$	1,606,268	$	(297,337	)	$	3,833,255	$	(367,801	)

Summary Of Additional Information About Investments In Unrealized Loss Position

Additional information about investments in an unrealized loss position is as follows:

	Less than Twelve Months		Twelve Months or Longer		Total
Number of issues (Cusip numbers) held:
As of December 31, 2011		117		93		210
As of December 31, 2010		234		133		367

Schedule Of Other Long-Term Investments

Other long-term investments consist of the following:

	December 31,
	2011		2010
Mortgage loans, at cost	$	551	$	14,481
Investment real estate, at depreciated cost		3,165		2,154
Low-income housing interests		12,188		14,482
Collateral loans		7,598		8,913
Other		2,665		2,955
Total	$	26,167	$	42,985