INVESTMENT OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2012

INVESTMENT OPERATIONS

Summary of major categories of net investment income

	For The Year Ended December 31,
	2012		2011		2010
	(Dollars In Thousands)
Fixed maturities	$	1,453,702	$	1,416,861	$	1,302,226
Equity securities		21,187		21,274		18,516
Mortgage loans		349,877		336,542		311,253
Investment real estate		3,290		3,459		3,180
Short-term investments		64,729		69,791		72,803
		1,892,785		1,847,927		1,707,978
Other investment expenses		30,453		27,284		24,302
Net investment income	$	1,862,332	$	1,820,643	$	1,683,676

Summary of net realized investment gains (losses) for all other investments

	For The Year Ended December 31,
	2012			2011			2010
	(Dollars In Thousands)
Fixed maturities	$	67,726		$	80,180		$	50,056
Equity securities		(45	)		9,194			6,488
Impairments on fixed maturity securities		(58,886	)		(47,442	)		(39,696	)
Impairments on equity securities		—			—			(1,814	)
Modco trading portfolio		177,986			164,224			109,399
Other investments		(14,632	)		(18,683	)		(11,577	)
Total realized gains (losses)—investments	$	172,149		$	187,473		$	112,856

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Total OTTI Recognized in OCI(1)
	(Dollars In Thousands)
2012
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,766,440	$	92,265	$	(19,375	)	$	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		1,099,001		71,537		(595	)		1,169,943		—
Other government-related securities		93,565		7,258		(45	)		100,778		—
States, municipals, and political subdivisions		1,188,077		255,900		(264	)		1,443,713		—
Corporate bonds		17,705,440		2,725,057		(48,446	)		20,382,051		(5,487	)
		23,674,016		3,237,382		(130,747	)		26,780,651		(6,134	)
Equity securities		389,821		12,443		(10,033	)		392,231		—
Short-term investments		98,877		—		—			98,877		—
	$	24,162,714	$	3,249,825	$	(140,780	)	$	27,271,759	$	(6,134	)
2011
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	2,345,578	$	82,594	$	(86,042	)	$	2,342,130	$	(47,806	)
Commercial mortgage-backed securities		531,322		24,466		(4,229	)		551,559		—
Other asset-backed securities		997,398		6,529		(90,898	)		913,029		(6,559	)
U.S. government-related securities		1,150,525		65,212		(58	)		1,215,679		—
Other government-related securities		88,058		4,959		—			93,017		—
States, municipals, and political subdivisions		1,154,374		173,408		—			1,327,782		—
Corporate bonds		16,910,738		1,920,142		(250,595	)		18,580,285		1,787
		23,177,993		2,277,310		(431,822	)		25,023,481		(52,578	)
Equity securities		328,833		5,993		(16,635	)		318,191		(74	)
Short-term investments		15,649		—		—			15,649		—
	$	23,522,475	$	2,283,303	$	(448,457	)	$	25,357,321	$	(52,652	)

⁽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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Total OTTI Recognized in OCI
			(Dollars In Thousands)
2012
Fixed maturities:
Other	$	300,000	$	19,163	$	—	$	319,163	$	—
		300,000		19,163		—		319,163		—
Equity securities		—		—		—		—		—
Short-term investments		—		—		—		—		—
	$	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

        The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of December 31, 2012, by expected maturity, are shown below.

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars In Thousands)				(Dollars In Thousands)
Due in one year or less	$	452,891	$	459,845	$	—	$	—
Due after one year through five years		4,576,491		5,004,080		—		—
Due after five years through ten years		6,290,995		6,976,137		—		—
Due after ten years		12,353,639		14,340,589		300,000		319,163
	$	23,674,016	$	26,780,651	$	300,000	$	319,163

Schedule of credit losses on debt securities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss)

	For The Year Ended December 31,
	2012		2011			2010
	(Dollars In Thousands)
Beginning balance	$	69,719	$	39,427		$	25,076
Additions for newly impaired securities		26,961		12,731			27,029
Additions for previously impaired securities		25,441		20,650			4,970
Reductions for previously impaired securities due to a change in expected cash flows		—		—			—
Reductions for previously impaired securities that were sold in the current period		—		(3,089	)		(17,648	)
Other		—		—			—
Ending balance	$	122,121	$	69,719		$	39,427

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 December 31, 2012:

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	101,522	$	(9,605	)	$	166,000	$	(9,770	)	$	267,522	$	(19,375	)
Commercial mortgage-backed securities		50,601		(598	)		—		—			50,601		(598	)
Other asset-backed securities		479,223		(28,179	)		242,558		(33,245	)		721,781		(61,424	)
U.S. government-related securities		107,802		(595	)		—		—			107,802		(595	)
Other government-related securities		14,955		(45	)		—		—			14,955		(45	)
States, municipalities, and political subdivisions		11,526		(264	)		—		—			11,526		(264	)
Corporate bonds		777,552		(23,663	)		364,110		(24,783	)		1,141,662		(48,446	)
Equities		35,059		(5,150	)		21,954		(4,883	)		57,013		(10,033	)
	$	1,578,240	$	(68,099	)	$	794,622	$	(72,681	)	$	2,372,862	$	(140,780	)

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 December 31, 2011:

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	277,858	$	(15,447	)	$	527,120	$	(70,595	)	$	804,978	$	(86,042	)
Commercial mortgage-backed securities		78,892		(4,229	)		—		—			78,892		(4,229	)
Other asset-backed securities		531,653		(32,074	)		190,639		(58,824	)		722,292		(90,898	)
U.S. government-related securities		21,311		(58	)		—		—			21,311		(58	)
Corporate bonds		1,880,931		(132,297	)		526,333		(118,298	)		2,407,264		(250,595	)
Equities		50,638		(8,436	)		22,295		(8,199	)		72,933		(16,635	)
	$	2,841,283	$	(192,541	)	$	1,266,387	$	(255,916	)	$	4,107,670	$	(448,457	)

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

	For The Year Ended December 31,
	2012		2011			2010
	(Dollars In Thousands)
Fixed maturities	$	819,746	$	761,437		$	696,758
Equity securities		8,484		(13,292	)		9,701