15. 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.

					Net Amounts
			Gross		of Assets		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Assets		Position		Position		Instruments		Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	82,238	$	—	$	82,238	$	31,046	$	2,500	$	48,692
Embedded derivative - Modco reinsurance treaties	1,321		—		1,321		—		—		1,321
Embedded derivative - GMWB	55,796		—		55,796		—		—		55,796
Total derivatives, subject to a master netting arrangement or similar arrangement	139,355		—		139,355		31,046		2,500		105,809
Total derivatives, not subject to a master netting arrangement or similar arrangement	240		—		240		—		—		240
Total derivatives	139,595		—		139,595		31,046		2,500		106,049
Total Assets	$	139,595	$	—	$	139,595	$	31,046	$	2,500	$	106,049

					Net Amounts
			Gross		of Assets		Gross Amounts Not Offset
			Amounts		Presented in		in the Statement of
	Gross		Offset in the		the		Financial Position
	Amounts of		Statement of		Statement of				Cash
	Recognized		Financial		Financial		Financial		Collateral
	Liabilities		Position		Position		Instruments		Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	49,747	$	—	$	49,747	$	31,046	$	9,648	$	9,053
Embedded derivative - Modco reinsurance treaties	395,123		—		395,123		—		—		395,123
Embedded derivative - GMWB	144,691		—		144,691		—		—		144,691
Total derivatives, subject to a master netting arrangement or similar arrangement	589,561		—		589,561		31,046		9,648		548,867
Total derivatives, not subject to a master netting arrangement or similar arrangement	—		—		—		—		—		—
Total derivatives	589,561		—		589,561		31,046		9,648		548,867
Repurchase agreements(1)	300,000		—		300,000		—		—		300,000
Total Liabilities	$	889,561	$	—	$	889,561	$	31,046	$	9,648	$	848,867

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