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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2013
DERIVATIVE FINANCIAL INSTRUMENTS  
Schedule of realized investment gains (losses) - derivative financial instruments

 

 
   For The Year Ended December 31,  
 
   2013   2012   2011  
 
   (Dollars In Thousands)
  

Derivatives related to variable annuity contracts:

                    

Interest rate futures—VA

   $ (31,216 ) $ 21,138   $ 164,221  

Equity futures—VA

     (52,640 )   (50,797 )   (30,061 )

Currency futures—VA

     (469 )   (2,763 )   2,977  

Volatility futures—VA

     —     (132 )   —  

Variance swaps—VA

     (11,310 )   (11,792 )   (239 )

Equity options—VA

     (95,022 )   (37,370 )   (15,051 )

Volatility options—VA

     (115 )   —     —  

Interest rate swaptions—VA

     1,575     (2,260 )   —  

Interest rate swaps—VA

     (157,408 )   3,264     7,718  

Credit default swaps—VA

     —     —     (7,851 )

Embedded derivative—GMWB

     325,497     (22,120 )   (127,537 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total derivatives related to variable annuity contracts

     (21,108 )   (102,832 )   (5,823 )

Derivatives related to FIA contracts:

                    

Embedded derivative—FIA

     (942 )   —     —  

Equity futures—FIA

     173     —     —  

Volatility futures—FIA

     (5 )   —     —  

Equity options—FIA

     1,866     —     —  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total derivatives related to FIA contracts

     1,092     —     —  

Embedded derivative—Modco reinsurance treaties

     205,176     (132,816 )   (134,340 )

Interest rate swaps

     2,985     (87 )   (11,264 )

Interest rate caps

     —     (2,666 )   (2,801 )

Credit default swaps

     —     —     (548 )

Other derivatives

     (14 )   (79 )   (475 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total realized gains (losses)—derivatives

   $ 188,131   $ (238,480 ) $ (155,251 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
Schedule of realized investment gains (losses) - all other investments

 

 
   For The Year Ended December 31,  
 
   2013   2012   2011  
 
   (Dollars In Thousands)
  

Modco trading portfolio(1)

   $ (178,134 ) $ 177,986   $ 164,224  
(1)
The Company elected to include the use of alternate disclosures for trading activities.
Schedule of gain (loss) on derivatives in cash flow hedging relationship

 

 
   Amount of Gains (Losses)
Deferred in
Accumulated Other
Comprehensive Income
(Loss) on Derivatives		   Amount and Location of
Gains (Losses)
Reclassified from
Accumulated Other
Comprehensive Income
(Loss) into
Income (Loss)		   Amount and Location of
(Losses) Recognized in
Income (Loss) on
Derivatives		  
 
   (Effective Portion)   (Effective Portion)   (Ineffective Portion)  
 
            Benefits and settlement
expenses		   Realized investment
gains (losses)		  
 
   (Dollars In Thousands)
  

For The Year Ended December 31,

                    

2013

                    

Inflation

   $ 1,130   $ (2,349)   $ (190)  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 1,130   $ (2,349)   $ (190)  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

For The Year Ended December 31,

                    

2012

                    

Interest rate

   $ (77)   $ (2,261)   $ —  

Inflation

     3,243     (938)     (177)  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 3,166   $ (3,199)   $ (177)  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
Notional amounts and fair values of derivative financial instruments

 

 

 
   As of December 31,  
 
   2013   2012  
 
   Notional
Amount		   Fair
Value		   Notional
Amount		   Fair
Value		  
 
   (Dollars In Thousands)
  

Other long-term investments

                          

Cash flow hedges:

                          

Inflation

   $ —   $ —   $ —   $ —  

Derivatives not designated as hedging instruments:

                          

Interest rate swaps

     200,000     1,961     355,000     6,532  

Variance swaps

     —     —     500     406  

Embedded derivative—Modco reinsurance treaties

     80,376     1,517     30,244     1,330  

Embedded derivative—GMWB

     6,113,017     194,616     1,640,075     30,261  

Interest rate futures

     —     —     —     —  

Equity futures

     3,387     111     147,581     595  

Currency futures

     14,338     321     15,944     784  

Interest rate caps

     —     —     3,000,000     —  

Equity options

     1,376,205     78,277     573,493     61,833  

Interest rate swaptions

     625,000     30,291     400,000     11,370  

Other

     425     473     224     253  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 8,412,748   $ 307,567   $ 6,163,061   $ 113,364  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Other liabilities

                          

Cash flow hedges:

                          

Inflation

   $ 182,965   $ 1,865   $ 182,965   $ 5,027  

Derivatives not designated as hedging instruments:

                          

Interest rate swaps

     1,230,000     153,322     400,000     10,025  

Variance swaps

     1,500     1,744     2,675     12,198  

Embedded derivative—Modco reinsurance treaties

     2,578,590     206,918     2,655,134     411,907  

Embedded derivative—GMWB

     2,494,142     38,388     5,253,961     199,530  

Embedded derivative—FIA

     244,424     25,324     —     —  

Interest rate futures

     322,902     5,221     893,476     13,970  

Equity futures

     164,595     6,595     152,364     3,316  

Currency futures

     118,008     840     131,979     1,901  

Equity options

     257,065     17,558     —     —  

Other

     230     27     —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 7,594,421   $ 457,802   $ 9,672,554   $ 657,874  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​