FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2011

FAIR VALUE OF FINANCIAL INSTRUMENTS

Assets and liabilities measured at fair value on a recurring basis

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities—available-for-sale
Residential mortgage-backed securities	$	—	$	2,342,123	$	7	$	2,342,130
Commercial mortgage-backed securities		—		551,559		—		551,559
Other asset-backed securities		—		298,216		614,813		913,029
U.S. government-related securities		664,506		536,173		15,000		1,215,679
State, municipalities, and political subdivisions		—		1,327,713		69		1,327,782
Other government-related securities		—		93,017		—		93,017
Corporate bonds		204		18,460,480		119,601		18,580,285
Total fixed maturity securities—available-for-sale		664,710		23,609,281		749,490		25,023,481
Fixed maturity securities—trading
Residential mortgage-backed securities		—		313,963		—		313,963
Commercial mortgage-backed securities		—		190,247		—		190,247
Other asset-backed securities		—		29,585		28,343		57,928
U.S. government-related securities		555,601		255		—		555,856
State, municipalities, and political subdivisions		—		229,032		—		229,032
Other government-related securities		—		44,845		—		44,845
Corporate bonds		—		1,568,094		—		1,568,094
Total fixed maturity securities—trading		555,601		2,376,021		28,343		2,959,965
Total fixed maturity securities		1,220,311		25,985,302		777,833		27,983,446
Equity securities		243,336		11,310		80,586		335,232
Other long-term investments(1)		27,757		7,785		12,703		48,245
Short-term investments		101,489		—		—		101,489
Total investments		1,592,893		26,004,397		871,122		28,468,412
Cash		267,298		—		—		267,298
Other assets		6,960		—		—		6,960
Assets related to separate acccounts
Variable annuity		6,741,959		—		—		6,741,959
Variable universal life		502,617		—		—		502,617
Total assets measured at fair value on a recurring basis	$	9,111,727	$	26,004,397	$	871,122	$	35,987,246
Liabilities:
Annuity account balances(2)	$	—	$	—	$	136,462	$	136,462
Other liabilities(1)		2,727		15,370		437,613		455,710
Total liabilities measured at fair value on a recurring basis	$	2,727	$	15,370	$	574,075	$	592,172

⁽¹⁾

Includes certain freestanding and embedded derivatives.

⁽²⁾

Represents liabilities related to equity indexed annuities.

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities—available-for-sale
Residential mortgage-backed securities	$	—	$	2,489,106	$	20	$	2,489,126
Commercial mortgage-backed securities		—		155,125		19,901		175,026
Other asset-backed securities		—		266,262		641,129		907,391
U.S. government-related securities		1,054,375		98,111		15,109		1,167,595
State, municipalities, and political subdivisions		—		969,533		78		969,611
Other government-related securities		14,993		186,214		—		201,207
Corporate bonds		100		15,725,900		65,032		15,791,032
Total fixed maturity securities—available-for-sale		1,069,468		19,890,251		741,269		21,700,988
Fixed maturity securities—trading
Residential mortgage-backed securities		—		426,015		—		426,015
Commercial mortgage-backed securities		—		137,606		—		137,606
Other asset-backed securities		—		24,415		59,925		84,340
U.S. government-related securities		383,423		3,008		3,442		389,873
State, municipalities, and political subdivisions		—		168,900		—		168,900
Other government-related securities		—		126,553		—		126,553
Corporate bonds		—		1,642,664		—		1,642,664
Total fixed maturity securities—trading		383,423		2,529,161		63,367		2,975,951
Total fixed maturity securities		1,452,891		22,419,412		804,636		24,676,939
Equity securities		271,483		10,831		77,098		359,412
Other long-term investments(1)		6,794		3,808		25,065		35,667
Short-term investments		344,796		8,028		—		352,824
Total investments		2,075,964		22,442,079		906,799		25,424,842
Cash		267,298		—		—		267,298
Other assets		6,222		—		—		6,222
Assets related to separate acccounts
Variable annuity		6,741,959		—		—		6,741,959
Variable universal life		502,617		—		—		502,617
Total assets measured at fair value on a recurring basis	$	9,594,060	$	22,442,079	$	906,799	$	32,942,938
Liabilities:
Annuity account balances(2)	$	—	$	—	$	143,264	$	143,264
Other liabilities(1)		23,995		28,987		190,529		243,511
Total liabilities measured at fair value
on a recurring basis	$	23,995	$	28,987	$	333,793	$	386,775

⁽¹⁾

Includes certain freestanding and embedded derivatives.

⁽²⁾

Represents liabilities related to equity indexed annuities.

Schedule of inputs for available-for-sale ABSs classified as Level 3

Investment grade credit rating	100.0%
Weighted-average yield	1.0%
Par value	$683.7 million
Weighted-average life	13.2 years

Schedule of weighted-average inputs for bonds and securities classified as Level 3

Investment grade credit rating	60.0%
Weighted-average yield	5.1%
Weighted-average coupon	5.9%
Par value	$145.7 million
Weighted-average stated maturity	6.0 years

Schedule of current key assumptions for valuation of annuity account balances

Asset Earned Rate	5.89%
Admin Expense per Policy	$78 to $93 per policy
Partial Withdrawal Rate (for ages less than 70)	2.20%
Partial Withdrawal Rate (for ages 70 and greater)	2.20%
Mortality	65% of 94 GMDB table
Lapse	2.2% to 55% depending on the surrender charge period
Return on Assets	1.5% to 1.85% depending on the guarantee period

Schedule of reconciliation of the beginning and ending balances for fair value measurements, for which the Company has used significant unobservable inputs (Level 3)

																														Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date
			Total Realized and Unrealized Gains				Total Realized and Unrealized Losses
	Beginning Balance		Included in Earnings		Included in Other Comprehensive Income		Included in Earnings			Included in Other Comprehensive Income			Purchases		Sales			Issuances		Settlements		Transfers in/out of Level 3			Other			Ending Balance
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	20	$	—	$	12	$	(4	)	$	—		$	—	$	(12	)	$	—	$	—	$	(9	)	$	—		$	7	$	—
Commercial mortgage-backed securities		19,901		—		147		—			(719	)		—		(103	)		—		—		(19,224	)		(2	)		—		—
Other asset-backed securities		641,129		4,527		28,873		(8,661	)		(50,941	)		—		—			—		—		—			(114	)		614,813		—
U.S. government-related securities		15,109		—		—		—			(122	)		—		—			—		—		—			13			15,000		—
States, municipals, and political subdivisions		78		—		—		—			(1	)		—		(9	)		—		—		—			1			69		—
Other government-related securities		—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate bonds		65,032		—		5,216		—			(1,689	)		40,000		(3,543	)		—		—		14,585			—			119,601		—
Total fixed maturity securities—available-for-sale		741,269		4,527		34,248		(8,665	)		(53,472	)		40,000		(3,667	)		—		—		(4,648	)		(102	)		749,490		—
Fixed maturity securities—trading
Residential mortgage-backed securities		—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities		—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities		59,925		1,213		—		(2,689	)		—			3,792		(40,292	)		—		—		4,002			2,392			28,343		(937	)
U.S. government-related securities		3,442		387		—		(476	)		—			—		(3,347	)		—		—		—			(6	)		—		—
States, municipals and political subdivisions		—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities		—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate bonds		—		611		—		(1,453	)		—			—		(37,292	)		—		—		38,039			95			—		—
Total fixed maturity securities—trading		63,367		2,211		—		(4,618	)		—			3,792		(80,931	)		—		—		42,041			2,481			28,343		(937	)
Total fixed maturity securities		804,636		6,738		34,248		(13,283	)		(53,472	)		43,792		(84,598	)		—		—		37,393			2,379			777,833		(937	)
Equity securities		77,098		49		555		—			(1,050	)		3,962		(49	)		—		—		21			—			80,586		—
Other long-term investments(1)		25,065		—		—		(12,362	)		—			—		—			—		—		—			—			12,703		(12,362	)
Short-term investments		—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments		906,799		6,787		34,803		(25,645	)		(54,522	)		47,754		(84,647	)		—		—		37,414			2,379			871,122		(13,299	)
Total assets measured at fair value on a recurring basis	$	906,799	$	6,787	$	34,803	$	(25,645	)	$	(54,522	)	$	47,754	$	(84,647	)	$	—	$	—	$	37,414		$	2,379		$	871,122	$	(13,299	)
Liabilities:
Annuity account balances(2)	$	143,264	$	—	$	—	$	(5,850	)	$	—		$	—	$	—		$	654	$	13,306	$	—		$	—		$	136,462	$	—
Other liabilities(1)		190,529		—		—		(249,757	)		—			—		(2,673	)		—		—		—			—			437,613		(249,757	)
Total liabilities measured at fair value on a recurring basis	$	333,793	$	—	$	—	$	(255,607	)	$	—		$	—	$	(2,673	)	$	654	$	13,306	$	—		$	—		$	574,075	$	(249,757	)

⁽¹⁾

Represents certain freestanding and embedded derivatives.

⁽²⁾

Represents liabilities related to equity indexed annuities.

																	Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date
			Total Realized and Unrealized Gains (losses)
	Beginning Balance		Included in Earnings			Included in Other Comprehensive Income			Purchases, Issuances, and Settlements (net)			Transfers in and/or out of Level 3			Ending Balance
	(Dollars In Thousands)
Assets:
Fixed maturity securities—available-for-sale
Residential mortgage-backed securities	$	23	$	(31	)	$	(4	)	$	32		$	—		$	20	$	—
Commercial mortgage-backed securities		844,535		—			40,064			(843,065	)(3)		(21,633	)		19,901		—
Other asset-backed securities		693,930		6,079			40,125			(89,667	)		(9,338	)		641,129		—
U.S. government-related securities		15,102		—			(6	)		13			—			15,109		—
States, municipals, and political subdivisions		86		—			(1	)		(7	)		—			78		—
Other government-related securities		—		—			—			—			—			—		—
Corporate bonds		86,328		—			2,281			36,832			(60,409	)		65,032		—
Total fixed maturity securities—available-for-sale		1,640,004		6,048			82,459			(895,862	)		(91,380	)		741,269		—
Fixed maturity securities—trading
Residential mortgage-backed securities		7,244		(1	)		—			(3,855	)		(3,388	)		—		—
Commercial mortgage-backed securities		—		—			—			—			—			—		—
Other asset-backed securities		47,509		655			—			11,761			—			59,925		168
U.S. government-related securities		3,310		138			—			(6	)		—			3,442		137
States, municipals and political subdivisions		4,994		77			—			—			(5,071	)		—		—
Other government-related securities		41,965		1,058			—			(47	)		(42,976	)		—		—
Corporate bonds		67		(66	)		—			26,794			(26,795	)		—		—
Total fixed maturity securities—trading		105,089		1,861			—			34,647			(78,230	)		63,367		305
Total fixed maturity securities		1,745,093		7,909			82,459			(861,215	)		(169,610	)		804,636		305
Equity securities		70,708		3,484			(266	)		(796	)		3,968			77,098		—
Other long-term investments(1)		16,525		8,540			—			—			—			25,065		8,540
Short-term investments		—		—			—			—			—			—		—
Total investments		1,832,326		19,933			82,193			(862,011	)		(165,642	)		906,799		8,845
Total assets measured at fair value on a recurring basis	$	1,832,326	$	19,933		$	82,193		$	(862,011	)	$	(165,642	)	$	906,799	$	8,845
Liabilities:
Annuity account balances(2)	$	149,893	$	(2,046	)	$	—		$	8,675		$	—		$	143,264	$	—
Other liabilities(1)		105,838		(84,691	)		—			—			—			190,529		(84,691	)
Total liabilities measured at fair value on a recurring basis	$	255,731	$	(86,737	)	$	—		$	8,675		$	—		$	333,793	$	(84,691	)

⁽¹⁾

Represents certain freestanding and embedded derivatives.

⁽²⁾

Represents liabilities related to equity indexed annuities.

⁽³⁾

Represents mortgage loan held by the trusts that have been consolidated upon the adoption of ASU No. 2009-17.

Schedule of the carrying amounts and estimated fair value of the Company's financial instruments

	As of December 31,
	2011				2010
	Carrying Amounts		Fair Values		Carrying Amounts		Fair Values
	(Dollars In Thousands)
Assets:
Mortgage loans on real estate	$	5,353,481	$	6,251,902	$	4,892,829	$	5,336,732
Policy loans		879,819		879,819		793,448		793,448
Liabilities:
Stable value product account balances	$	2,769,510	$	2,855,614	$	3,076,233	$	3,163,902
Annuity account balances		10,946,848		10,767,892		10,591,605		10,451,526
Mortgage loan backed certificates		19,755		19,893		61,678		63,127
Debt:
Bank borrowings	$	170,000	$	170,000	$	142,000	$	142,000
Senior and Medium-Term Notes		1,350,000		1,494,346		1,359,852		1,455,641
Subordinated debt securities		524,743		525,483		524,743		517,383
Non-recourse funding obligations		407,800		217,529		532,400		389,534