DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

DERIVATIVE FINANCIAL INSTRUMENTS

Notional amounts and fair values of derivative financial instruments

	As of December 31,
	2012				2011
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(Dollars In Thousands)
Other long-term investments
Cash flow hedges:
Inflation	$	—	$	—	$	7,068	$	1
Derivatives not designated as hedging instruments:
Interest rate swaps		355,000		6,532		125,000		5,118
Volatility swaps		500		406		—		—
Embedded derivative—Modco reinsurance treaties		30,244		1,330		30,001		2,038
Embedded derivative—GMWB		1,640,075		30,261		826,790		10,665
Interest rate futures		—		—		615,445		6,393
Equity futures		147,581		595		49,631		837
Currency futures		15,944		784		57,912		976
Interest rate caps		3,000,000		—		3,000,000		2,666
Equity options		573,493		61,833		440,000		19,396
Interest rate swaptions		400,000		11,370		—		—
Other		224		253		224		155
	$	6,163,061	$	113,364	$	5,152,071	$	48,245
Other liabilities
Cash flow hedges:
Inflation	$	182,965	$	5,027	$	244,399	$	8,863
Interest rate		—		—		75,000		3,443
Derivatives not designated as hedging instruments:
Interest rate swaps		400,000		10,025		25,000		3,064
Volatility swaps		2,675		12,198		—		—
Embedded derivative—Modco reinsurance treaties		2,655,134		411,907		2,761,686		279,799
Embedded derivative—GMWB		5,253,961		199,530		3,741,688		157,813
Interest rate futures		893,476		13,970		270,019		1,148
Equity futures		152,364		3,316		189,765		1,454
Currency futures		131,979		1,901		14,348		126
	$	9,672,554	$	657,874	$	7,321,905	$	455,710

Schedule of gain (loss) on derivatives in cash flow hedging relationship

	For The Year Ended December 31, 2012									For The Year Ended December 31, 2011
	Realized investment gains (losses)			Benefits and settlement expenses			Other comprehensive income (loss)			Realized investment gains (losses)			Benefits and settlement expenses			Other comprehensive income (loss)
	(Dollars In Thousands)
Gain (loss) recognized in other comprehensive income (loss) (effective portion):
Interest rate	$	—		$	—		$	(77	)	$	—		$	—		$	(272	)
Inflation		—			—			3,067			—			—			2,468
Gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion):
Interest rate	$	—		$	(2,261	)	$	—		$	—		$	(3,581	)	$	—
Inflation		—			(938	)		—			—			(276	)		—
Gain (loss) recognized in income (ineffective portion):
Inflation	$	(177	)	$	—		$	—		$	(359	)	$	—		$	—

Schedule of realized investment gains (losses) - derivative financial instruments

	For The Year Ended December 31,
	2012			2011			2010
	(Dollars In Thousands)
Derivatives related to variable annuity contracts:
Interest rate futures—VA	$	21,138		$	164,221		$	(11,778	)
Equity futures—VA		(50,797	)		(30,061	)		(42,258	)
Currency futures—VA		(2,763	)		2,977			—
Volatility futures—VA		(132	)		—			—
Volatility swaps—VA		(11,792	)		(239	)		(2,433	)
Equity options—VA		(37,370	)		(15,051	)		(1,824	)
Interest rate swaptions—VA		(2,260	)		—			—
Interest rate swaps—VA		3,264			7,718			—
Credit default swaps—VA		—			(7,851	)		—
Embedded derivative—GMWB		(22,120	)		(127,537	)		(5,728	)
Total derivatives related to variable annuity contracts		(102,832	)		(5,823	)		(64,021	)
Embedded derivative—Modco reinsurance treaties		(132,816	)		(134,340	)		(67,989	)
Interest rate swaps		(87	)		(11,264	)		(8,427	)
Interest rate caps		(2,666	)		(2,801	)		—
Credit default swaps		—			(548	)		1,389
Other derivatives		(79	)		(475	)		799
Total realized gains (losses)—derivatives	$	(238,480	)	$	(155,251	)	$	(138,249	)

Schedule of realized investment gains (losses) - all other investments

	For The Year Ended December 31,
	2012		2011		2010
	(Dollars In Thousands)
Modco trading portfolio(1)	$	177,986	$	164,224	$	109,399

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The Company elected to include the use of alternate disclosures for trading activities.