INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of reconciliation of effective income tax rate related to continuing operations

	For The Year Ended December 31,
	2012			2011			2010
Statutory federal income tax rate applied to pre-tax income		35.0	%		35.0	%		35.0	%
State income taxes		0.3			0.4			0.5
Investment income not subject to tax		(3.1	)		(2.2	)		(1.6	)
Uncertain tax positions		0.4			—			(1.3	)
Other		0.6			(0.3	)		0.2
		33.2	%		32.9	%		32.8	%

Schedule of components of income tax expense

	For The Year Ended December 31,
	2012		2011		2010
	(Dollars In Thousands)
Income tax expense per the income tax returns:
Federal	$	72,743	$	9,510	$	(6,723	)
State		3,443		264		3,509
Total current	$	76,186	$	9,774	$	(3,214	)
Deferred income tax expense:
Federal	$	71,659	$	142,761	$	115,172
State		2,674		2,304		(2,055	)
Total deferred	$	74,333	$	145,065	$	113,117

Schedule of components of the Company's net deferred income tax liability

	As of December 31,
	2012			2011
	(Dollars In Thousands)
Deferred income tax assets:
Premium receivables and policy liabilities	$	56,918		$	35,432
Invested assets (other than unrealized gains)		—			60,524
Deferred compensation		78,465			72,944
U.S. capital loss carryforwards		—			4,763
Other		52,158			7,049
Valuation allowance		(4,653	)		(2,593	)
		182,888			178,119
Deferred income tax liabilities:
Deferred policy acquisition costs and value of business acquired		916,406			872,297
Invested assets (other than unrealized gains)		28,396			—
Unrealized gain on investments		974,475			566,451
		1,919,277			1,438,748
Net deferred income tax liability	$	(1,736,389	)	$	(1,260,629	)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

	As of December 31,
	2012			2011
	(Dollars In Thousands)
Balance, beginning of period	$	4,840		$	13,181
Additions for tax positions of the current year		9,465			—
Additions for tax positions of prior years		64,485			106
Reductions of tax positions of prior years:
Changes in judgment		(3,498	)		(8,447	)
Settlements during the period		—			—
Lapses of applicable statute of limitations		—			—
Balance, end of period	$	75,292		$	4,840