OFFSETTING OF ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2013

OFFSETTING OF ASSETS AND LIABILITIES

OFFSETTING OF ASSETS AND LIABILITIES

24. OFFSETTING OF ASSETS AND LIABILITIES

        Certain of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event either minimum thresholds, or in certain cases ratings levels, have been reached. Additionally, certain of the Company's repurchase agreements provide for net settlement on termination of the agreement. Refer to Note 6, Debt and Other Obligations for details of the Company's repurchase agreement programs.

        The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2013:

					Net Amounts of Assets Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
			Gross Amounts Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets
							Financial Instruments		Cash Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	110,983	$	—	$	110,983	$	52,487	$	10,700	$	47,796
Embedded derivative—Modco reinsurance treaties		1,517		—		1,517		—		—		1,517
Embedded derivative—GMWB		194,616				194,616		—		—		194,616
Total derivatives, subject to a master netting arrangement or similar arrangement		307,116		—		307,116		52,487		10,700		243,929
Total derivatives, not subject to a master netting arrangement or similar arrangement		451		—		451		—		—		451
Total derivatives		307,567		—		307,567		52,487		10,700		244,380
Total Assets	$	307,567	$	—	$	307,567	$	52,487	$	10,700	$	244,380

							Gross Amounts Not Offset in the Statement of Financial Position
			Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities
							Financial Instruments		Cash Collateral Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	187,172		—	$	187,172	$	52,487	$	98,359	$	36,326
Embedded derivative—Modco reinsurance treaties		206,918		—		206,918		—		—		206,918
Embedded derivative—GMWB		38,388				38,388		—		—		38,388
Embedded derivative—FIA		25,324		—		25,324		—		—		25,324
Total derivatives, subject to a master netting arrangement or similar arrangement		457,802		—		457,802		52,487		98,359		306,956
Total derivatives, not subject to a master netting arrangement or similar arrangement		—		—		—		—		—		—
Total derivatives		457,802		—		457,802		52,487		98,359		306,956
Repurchase agreements(1)		350,000		—		350,000		—		—		350,000
Total Liabilities	$	807,802	$	—	$	807,802	$	52,487	$	98,359	$	656,956

⁽¹⁾

Borrowings under repurchase agreements are for a term less than 90 days.

        The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2012:

							Gross Amounts Not Offset in the Statement of Financial Position
			Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position
	Gross Amounts of Recognized Assets
							Financial Instruments		Cash Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	81,520		—	$	81,520	$	21,565	$	11,280	$	48,675
Embedded derivative—Modco reinsurance treaties		1,330		—		1,330		—		—		1,330
Embedded derivative—GMWB		30,261		—		30,261		—		—		30,261
Total derivatives, subject to a master netting arrangement or similar arrangement		113,111		—		113,111		21,565		11,280		80,266
Total derivatives, not subject to a master netting arrangement or similar arrangement		253		—		253		—		—		253
Total derivatives		113,364		—		113,364		21,565		11,280		80,519
Total Assets	$	113,364	$	—	$	113,364	$	21,565	$	11,280	$	80,519

			Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities
							Financial Instruments		Cash Collateral Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	46,437	$	—	$	46,437	$	21,565	$	20,373	$	4,499
Embedded derivative—Modco reinsurance treaties		411,907		—		411,907		—		—		411,907
Embedded derivative—GMWB		199,530		—		199,530		—		—		199,530
Embedded derivative—FIA		—		—		—		—		—		—
Total derivatives, subject to a master netting arrangement or similar arrangement		657,874		—		657,874		21,565		20,373		615,936
Total derivatives, not subject to a master netting arrangement or similar arrangement		—		—		—		—		—		—
Total derivatives		657,874		—		657,874		21,565		20,373		615,936
Repurchase agreements(1)		150,000		—		150,000		—		—		150,000
Total Liabilities	$	807,874	$	—	$	807,874	$	21,565	$	20,373	$	765,936

⁽¹⁾

Borrowings under repurchase agreements are for a term less than 90 days.