INVESTMENT OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2013

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

	For The Three Months Ended March 31,
	2013			2012
	(Dollars In Thousands)
Fixed maturities	$	12,309		$	20,046
Equity securities	1			—
Impairments on fixed maturity securities	(3,587		)	(18,740		)
Impairments on equity securities	(997		)	(24		)
Modco trading portfolio	(15,328		)	18,099
Other investments	(1,127		)	(2,419		)
Total realized gains (losses) - investments	$	(8,729	)	$	16,962

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

			Gross		Gross					Total OTTI
	Amortized		Unrealized		Unrealized			Fair		Recognized
	Cost		Gains		Losses			Value		in OCI(1)
	(Dollars In Thousands)
2013
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,670,034	$	88,814	$	(40,939	)	$	1,717,909	$	6,353
Commercial mortgage-backed securities	853,334		64,906		(2,085		)	916,155		—
Other asset-backed securities	1,013,575		17,325		(84,339		)	946,561		(189		)
U.S. government-related securities	1,142,772		66,003		(1,723		)	1,207,052		—
Other government-related securities	82,172		6,323		(18		)	88,477		—
States, municipals, and political subdivisions	1,179,373		254,478		(269		)	1,433,582		—
Corporate bonds	18,310,621		2,540,833		(63,887		)	20,787,567		—
	24,251,881		3,038,682		(193,260		)	27,097,303		6,164
Equity securities	384,499		15,003		(6,763		)	392,739		(243		)
Short-term investments	50,896		—		—			50,896		—
	$	24,687,276	$	3,053,685	$	(200,023	)	$	27,540,938	$	5,921
2012
Fixed maturities:
Bonds
Residential mortgage-backed securities	$	1,766,440	$	92,265	$	(19,375	)	$	1,839,330	$	(406	)
Commercial mortgage-backed securities	797,844		72,577		(598		)	869,823		—
Other asset-backed securities	1,023,649		12,788		(61,424		)	975,013		(241		)
U.S. government-related securities	1,099,001		71,537		(595		)	1,169,943		—
Other government-related securities	93,565		7,258		(45		)	100,778		—
States, municipals, and political subdivisions	1,188,077		255,900		(264		)	1,443,713		—
Corporate bonds	17,705,440		2,725,057		(48,446		)	20,382,051		(5,487		)
	23,674,016		3,237,382		(130,747		)	26,780,651		(6,134		)
Equity securities	389,821		12,443		(10,033		)	392,231		—
Short-term investments	98,877		—		—			98,877		—
	$	24,162,714	$	3,249,825	$	(140,780	)	$	27,271,759	$	(6,134	)

(1)These amounts are included in the gross unrealized gains and gross unrealized losses columns above.

Schedule of amortized cost and fair value of the Company's investments classified as held-to-maturity

			Gross		Gross				Total OTTI
	Amortized		Unrealized		Unrealized		Fair		Recognized
	Cost		Gains		Losses		Value		in OCI
	(Dollars In Thousands)
2013
Fixed maturities:
Other	$	315,000	$	19,579	$	—	$	334,579	$	—
	$	315,000	$	19,579	$	—	$	334,579	$	—
2012
Fixed maturities:
Other	$	300,000	$	19,163	$	—	$	319,163	$	—
	$	300,000	$	19,163	$	—	$	319,163	$	—

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

The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of March 31, 2013, by expected maturity, are shown below.

	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(Dollars In Thousands)				(Dollars In Thousands)
Due in one year or less	$	462,459	$	469,358	$	—	$	—
Due after one year through five years	4,482,491		4,937,108		—		—
Due after five years through ten years	6,611,666		7,246,081		—		—
Due after ten years	12,695,265		14,444,756		315,000		334,579
	$	24,251,881	$	27,097,303	$	315,000	$	334,579

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 Three Months Ended March 31,
	2013		2012
	(Dollars In Thousands)
Beginning balance	$	122,121	$	69,719
Additions for newly impaired securities	997		15,854
Additions for previously impaired securities	1,486		2,779
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	—		—
Ending balance	$	124,604	$	88,352

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 the 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 March 31, 2013:

	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	$	130,062	$	(27,206	)	$	99,623	$	(13,733	)	$	229,685	$	(40,939	)
Commercial mortgage-backed securities	112,880		(2,085		)	—		—			112,880		(2,085		)
Other asset-backed securities	74,375		(9,968		)	602,783		(74,371		)	677,158		(84,339		)
U.S. government-related securities	206,309		(1,723		)	—		—			206,309		(1,723		)
Other government-related securities	20,003		(2		)	3,617		(16		)	23,620		(18		)
States, municipalities, and political subdivisions	11,521		(269		)	—		—			11,521		(269		)
Corporate bonds	1,387,207		(43,754		)	285,094		(20,133		)	1,672,301		(63,887		)
Equities	55,317		(243		)	29,192		(6,520		)	84,509		(6,763		)
	$	1,997,674	$	(85,250	)	$	1,020,309	$	(114,773	)	$	3,017,983	$	(200,023	)

	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	$	101,522	$	(9,605	)	$	166,000	$	(9,770	)	$	267,522	$	(19,375	)
Commercial mortgage-backed securities	50,601		(598		)	—		—			50,601		(598		)
Other asset-backed securities	479,223		(28,179		)	242,558		(33,245		)	721,781		(61,424		)
U.S. government-related securities	107,802		(595		)	—		—			107,802		(595		)
Other government-related securities	14,955		(45		)	—		—			14,955		(45		)
States, municipalities, and political subdivisions	11,526		(264		)	—		—			11,526		(264		)
Corporate bonds	777,552		(23,663		)	364,110		(24,783		)	1,141,662		(48,446		)
Equities	35,059		(5,150		)	21,954		(4,883		)	57,013		(10,033		)
	$	1,578,240	$	(68,099	)	$	794,622	$	(72,681	)	$	2,372,862	$	(140,780	)

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

	For The Three Months Ended March 31,
	2013			2012
	(Dollars In Thousands)
Fixed maturities	$	(169,788	)	$	19,446
Equity securities	3,790			5,106

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-Name Statement of Financial Accounting Standard (FAS)

-Number 115

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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