INVESTMENT OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2011

INVESTMENT OPERATIONS

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

	For The			For The
	Three Months Ended			Six Months Ended
	June 30, 2011			June 30, 2011
	(Dollars In Thousands)
Fixed maturities	$	30,196		$	35,491
Equity securities	70			9,170
Impairments on fixed maturity securities	(9,487		)	(15,150		)
Impairments on equity securities	—			—
Modco trading portfolio	33,603			27,954
Other investments	(4,952		)	(9,226		)
Total realized gains (losses) - investments	$	49,430		$	48,239

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

The amortized cost and fair value of the Company’s investments classified as available-for-sale as of June 30, 2011, are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars In Thousands)
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	2,543,004	$	56,189	$	(109,030	)	$	2,490,163
Commercial mortgage-backed securities	283,569		5,980		(2,045		)	287,504
Other asset-backed securities	875,894		1,276		(32,907		)	844,263
U.S. government-related securities	1,097,064		36,511		(2,262		)	1,131,313
Other government-related securities	135,993		7,126		—			143,119
States, municipals, and political subdivisions	1,140,928		41,746		(7,852		)	1,174,822
Corporate bonds	16,192,923		1,116,854		(133,989		)	17,175,788
	22,269,375		1,265,682		(288,085		)	23,246,972
Equity securities	334,505		9,031		(5,052		)	338,484
Short-term investments	32,524		—		—			32,524
	$	22,636,404	$	1,274,713	$	(293,137	)	$	23,617,980

Schedule of amortized cost and fair value of available-for-sale fixed maturities, by expected maturity

The amortized cost and fair value of available-for-sale fixed maturities as of June 30, 2011, by expected maturity, are shown below.

	Amortized		Fair
	Cost		Value
	(Dollars In Thousands)
Due in one year or less	$	625,459	$	640,235
Due after one year through five years	3,715,102		3,875,630
Due after five years through ten years	6,318,142		6,669,230
Due after ten years	11,610,672		12,061,877
	$	22,269,375	$	23,246,972

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					For The
	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011		2010			2011			2010
	(Dollars In Thousands)
Beginning balance	$	40,615	$	33,366		$	39,427		$	25,076
Additions for newly impaired securities	5,797		12,894			9,406			19,450
Additions for previously impaired securities	3,435		17			4,103			1,751
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	—		(14,701		)	(3,089		)	(14,701		)
Other	—		—			—			—
Ending balance	$	49,847	$	31,576		$	49,847		$	31,576

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 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 as of June 30, 2011:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	452,087	$	(22,852	)	$	685,680	$	(86,178	)	$	1,137,767	$	(109,030	)
Commercial mortgage-backed securities	109,354		(2,045		)	—		—			109,354		(2,045		)
Other asset-backed securities	78,403		(1,556		)	584,736		(31,351		)	663,139		(32,907		)
U.S. government-related securities	214,222		(2,262		)	—		—			214,222		(2,262		)
Other government-related securities	—		—			—		—			—		—
States, municipals, and political subdivisions	232,750		(6,214		)	23,362		(1,638		)	256,112		(7,852		)
Corporate bonds	2,080,437		(67,082		)	560,460		(66,907		)	2,640,897		(133,989		)
Equities	20,950		(2,957		)	13,399		(2,095		)	34,349		(5,052		)
	$	3,188,203	$	(104,968	)	$	1,867,637	$	(188,169	)	$	5,055,840	$	(293,137	)

The following table includes 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 as of December 31, 2010:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(Dollars In Thousands)
Residential mortgage-backed securities	$	237,450	$	(17,877	)	$	1,173,541	$	(125,334	)	$	1,410,991	$	(143,211	)
Commercial mortgage-backed securities	25,679		(933		)	—		—			25,679		(933		)
Other asset-backed securities	167,089		(2,452		)	594,756		(27,212		)	761,845		(29,664		)
U.S. government-related securities	144,807		(3,071		)	—		—			144,807		(3,071		)
Other government-related securities	33,936		(8		)	14,993		(7		)	48,929		(15		)
States, municipals, and political subdivisions	563,352		(22,345		)	—		—			563,352		(22,345		)
Corporate bonds	2,264,649		(82,343		)	835,655		(94,843		)	3,100,304		(177,186		)
Equities	11,950		(3,321		)	13,544		(1,961		)	25,494		(5,282		)
	$	3,448,912	$	(132,350	)	$	2,632,489	$	(249,357	)	$	6,081,401	$	(381,707	)

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

	For The			For The
	Three Months Ended			Six Months Ended
	June 30, 2011			June 30, 2011
	(Dollars In Thousands)
Fixed maturities	$	169,348		$	197,308
Equity securities	(3,372		)	(3,788		)