FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2013

FAIR VALUE OF FINANCIAL INSTRUMENTS

Assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of June 30, 2013:

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,558,177	$	14,062	$	1,572,239
Commercial mortgage-backed securities	—		942,804		—		942,804
Other asset-backed securities	—		346,516		576,396		922,912
U.S. government-related securities	1,027,622		148,545		—		1,176,167
State, municipalities, and political subdivisions	—		1,333,415		4,330		1,337,745
Other government-related securities	—		45,685		20,000		65,685
Corporate bonds	206		19,857,780		194,895		20,052,881
Total fixed maturity securities - available-for-sale	1,027,828		24,232,922		809,683		26,070,433
Fixed maturity securities - trading
Residential mortgage-backed securities	—		333,246		1,582		334,828
Commercial mortgage-backed securities	—		171,011		—		171,011
Other asset-backed securities	—		89,622		168,851		258,473
U.S. government-related securities	204,785		1,581		—		206,366
State, municipalities, and political subdivisions	—		263,675		3,500		267,175
Other government-related securities	—		57,155		—		57,155
Corporate bonds	—		1,552,433		5,092		1,557,525
Total fixed maturity securities - trading	204,785		2,468,723		179,025		2,852,533
Total fixed maturity securities	1,232,613		26,701,645		988,708		28,922,966
Equity securities	342,080		35,020		69,418		446,518
Other long-term investments(1)	69,584		58,499		100,072		228,155
Short-term investments	162,990		9,021		—		172,011
Total investments	1,807,267		26,804,185		1,158,198		29,769,650
Cash	255,712		—		—		255,712
Other assets	9,407		—		—		9,407
Assets related to separate accounts
Variable annuity	11,162,856		—		—		11,162,856
Variable universal life	620,429		—		—		620,429
Total assets measured at fair value on a recurring basis	$	13,855,671	$	26,804,185	$	1,158,198	$	41,818,054
Liabilities:
Annuity account balances(2)	$	—	$	—	$	114,614	$	114,614
Other liabilities (1)	5,482		116,177		335,581		457,240
Total liabilities measured at fair value on a recurring basis	$	5,482	$	116,177	$	450,195	$	571,854

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2012:

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,839,326	$	4	$	1,839,330
Commercial mortgage-backed securities	—		869,823		—		869,823
Other asset-backed securities	—		378,870		596,143		975,013
U.S. government-related securities	909,988		259,955		—		1,169,943
State, municipalities, and political subdivisions	—		1,439,378		4,335		1,443,713
Other government-related securities	—		80,767		20,011		100,778
Corporate bonds	207		20,213,952		167,892		20,382,051
Total fixed maturity securities - available-for-sale	910,195		25,082,071		788,385		26,780,651
Fixed maturity securities - trading
Residential mortgage-backed securities	—		357,803		—		357,803
Commercial mortgage-backed securities	—		171,073		—		171,073
Other asset-backed securities	—		87,395		70,535		157,930
U.S. government-related securities	304,704		1,169		—		305,873
State, municipalities, and political subdivisions	—		278,898		—		278,898
Other government-related securities	—		63,444		—		63,444
Corporate bonds	—		1,672,172		115		1,672,287
Total fixed maturity securities - trading	304,704		2,631,954		70,650		3,007,308
Total fixed maturity securities	1,214,899		27,714,025		859,035		29,787,959
Equity securities	307,252		35,116		69,418		411,786
Other long-term investments (1)	23,639		58,134		31,591		113,364
Short-term investments	215,320		2,492		—		217,812
Total investments	1,761,110		27,809,767		960,044		30,530,921
Cash	368,801		—		—		368,801
Other assets	8,239		—		—		8,239
Assets related to separate accounts
Variable annuity	9,601,417		—		—		9,601,417
Variable universal life	562,817		—		—		562,817
Total assets measured at fair value on a recurring basis	$	12,302,384	$	27,809,767	$	960,044	$	41,072,195
Liabilities:
Annuity account balances (2)	$	—	$	—	$	129,468	$	129,468
Other liabilities (1)	19,187		27,250		611,437		657,874
Total liabilities measured at fair value on a recurring basis	$	19,187	$	27,250	$	740,905	$	787,342

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of the financial instruments

	Fair Value
	As of		Valuation	Unobservable	Range
	June 30, 2013		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	576,396	Discounted cash flow	Liquidity premium	0.43% - 1.46% (0.68%)
				Paydown rate	8.24% - 14.48% (12.41%)
Other government-related securities	20,000		Discounted cash flow	Spread over treasury	(0.22)%
Corporate bonds	199,987		Discounted cash flow	Spread over treasury	0.37% - 7.25% (2.94%)
Embedded derivatives - GMWB(1)	14,556		Actuarial cash flow model	Mortality	57% of 1994 MGDB table
				Lapse	0% - 24%, depending on product/duration/funded status of guarantee
				Utilization	93% - 100%
				Nonperformance risk	0.20% - 1.46%
Liabilities:
Annuity account balances(2)	$	114,614	Actuarial cash flow model	Asset earned rate	5.81%
				Expenses	$88 - $108 per policy
				Withdrawal rate	2.20%
				Mortality	57% of 1994 MGDB table
				Lapse	2.2% - 45.0%, depending on duration/surrender charge period
				Return on assets	1.50% - 1.85% depending on surrender charge period
				Nonperformance risk	0.20% - 1.46%
Embedded derivative - FIA	1,126		Actuarial cash flow model	Expenses	0.20%
				Withdrawal rate	1.1% - 4.5% depending on duration
					and tax qualification
				Mortality	51% - 80% of 1994 MGDB table
				Lapse	2.5% - 40.0%, depending on duration/surrender charge period
				Nonperformance risk	0.20% - 1.46%

(1)The fair value for the GMWB embedded derivative is presented as a net asset for the purposes of this chart. Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

	Fair Value
	As of		Valuation	Unobservable	Range
	December 31, 2012		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	596,143	Discounted cash flow	Liquidity premium	0.72% - 1.68% (1.29%)
				Paydown rate	8.51% - 18.10% (11.40%)
Other government-related securities	20,011		Discounted cash flow	Spread over treasury	(0.30)%
Corporate bonds	168,007		Discounted cash flow	Spread over treasury	0.92% - 7.75% (3.34%)
Liabilities:
Embedded derivatives - GMWB(1)	$	169,041	Actuarial cash flow model	Mortality	57% of 1994 MGDB table
				Lapse	0% - 24%, depending on product/duration/funded status of guarantee
				Utilization	93% - 100%
				Nonperformance risk	0.09% - 1.34%
Annuity account balances(2)	129,468		Actuarial cash flow model	Asset earned rate	5.81%
				Expenses	$88 - $108 per policy
				Withdrawal rate	2.20%
				Mortality	57% of 1994 MGDB table
				Lapse	2.2% - 45.0%, depending on duration/surrender charge period
				Return on assets	1.50% - 1.85% depending on surrender charge period
				Nonperformance risk	0.09% - 1.34%

(1)The fair value for the GMWB embedded derivative is presented as a net liability for the purposes of this chart. Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of reconciliation of the beginning and ending balances for fair value measurements, for which the Company has used significant unobservable inputs (Level 3)

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended June 30, 2013, for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
			Total				Total																						included in
			Realized and Unrealized				Realized and Unrealized																						Earnings
			Gains				Losses																						related to
					Included in					Included in																			Instruments
					Other					Other												Transfers							still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3		Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	4	$	—	$	—	$	—		$	(337	)	$	14,349	$	—		$	—	$	—	$	46	$	—		$	14,062	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	560,668		—		43,744		—			—			13,162		(41,377		)	—		—		—		199			576,396		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	4,335		—		—		—			—			—		(5		)	—		—		—		—			4,330		—
Other government-related securities	20,003		—		1		—			—			—		—			—		—		—		(4		)	20,000		—
Corporate bonds	124,555		116		81		—			(7,682		)	18,275		(3,113		)	—		—		62,330		333			194,895		—
Total fixed maturity securities - available-for-sale	709,565		116		43,826		—			(8,019		)	45,786		(44,495		)	—		—		62,376		528			809,683		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			1,582		—			—		—		—		—			1,582		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	71,383		1,389		—		(2,610		)	—			105,830		(9,953		)	—		—		2,210		602			168,851		511
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			3,500		—			—		—		—		—			3,500		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate bonds	5,112		—		—		(23		)	—			—		—			—		—		—		3			5,092		(23		)
Total fixed maturity securities - trading	76,495		1,389		—		(2,633		)	—			110,912		(9,953		)	—		—		2,210		605			179,025		488
Total fixed maturity securities	786,060		1,505		43,826		(2,633		)	(8,019		)	156,698		(54,448		)	—		—		64,586		1,133			988,708		488
Equity securities	69,418		—		—		—			—			—		—			—		—		—		—			69,418		—
Other long-term investments(1)	57,117		43,317		—		(362		)	—			—		—			—		—		—		—			100,072		42,955
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	912,595		44,822		43,826		(2,995		)	(8,019		)	156,698		(54,448		)	—		—		64,586		1,133			1,158,198		43,443
Total assets measured at fair value on a recurring basis	$	912,595	$	44,822	$	43,826	$	(2,995	)	$	(8,019	)	$	156,698	$	(54,448	)	$	—	$	—	$	64,586	$	1,133		$	1,158,198	$	43,443
Liabilities:
Annuity account balances(2)	$	123,681	$	—	$	—	$	(1,686	)	$	—		$	—	$	—		$	65	$	10,818	$	—	$	—		$	114,614	$	—
Other liabilities(1)	539,814		219,947		—		(15,714		)	—			—		—			—		—		—		—			335,581		204,233
Total liabilities measured at fair value on a recurring basis	$	663,495	$	219,947	$	—	$	(17,400	)	$	—		$	—	$	—		$	65	$	10,818	$	—	$	—		$	450,195	$	204,233

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended June 30, 2012, for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
			Total				Total																						included in
			Realized and Unrealized				Realized and Unrealized																						Earnings
			Gains				Losses																						related to
					Included in					Included in																			Instruments
					Other					Other												Transfers							still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3		Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	4	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	4	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	587,613		—		4,026		—			(6,969		)	—		—			—		—		—		(29		)	584,641		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	4,344		—		—		—			—			—		(4		)	—		—		—		—			4,340		—
Other government-related securities	20,006		—		18		—			—			—		—			—		—		—		(4		)	20,020		—
Corporate bonds	137,976		—		1,666		—			(683		)	—		(1,956		)	—		—		35,058		120			172,181		—
Total fixed maturity securities - available-for-sale	749,943		—		5,710		—			(7,652		)	—		(1,960		)	—		—		35,058		87			781,186		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	54,961		32		—		(588		)	—			13,342		(3,266		)	—		—		—		578			65,059		(555		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—		—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate bonds	1		—		—		—			—			—		—			—		—		113		—			114		—
Total fixed maturity securities - trading	54,962		32		—		(588		)	—			13,342		(3,266		)	—		—		113		578			65,173		(555		)
Total fixed maturity securities	804,905		32		5,710		(588		)	(7,652		)	13,342		(5,226		)	—		—		35,171		665			846,359		(555		)
Equity securities	81,224		—		25		—			(948		)	—		—			—		—		—		(6,650		)	73,651		—
Other long-term investments(1)	25,776		—		—		(7,361		)	—			—		—			—		—		—		—			18,415		(7,361		)
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	911,905		32		5,735		(7,949		)	(8,600		)	13,342		(5,226		)	—		—		35,171		(5,985		)	938,425		(7,916		)
Total assets measured at fair value on a recurring basis	$	911,905	$	32	$	5,735	$	(7,949	)	$	(8,600	)	$	13,342	$	(5,226	)	$	—	$	—	$	35,171	$	(5,985	)	$	938,425	$	(7,916	)
Liabilities:
Annuity account balances(2)	$	137,238	$	—	$	—	$	(1,143	)	$	—		$	—	$	—		$	103	$	3,887	$	—	$	—		$	134,597	$	—
Other liabilities(1)	389,812		8,748		—		(135,523		)	—			—		—			—		—		—		—			516,587		(126,775		)
Total liabilities measured at fair value on a recurring basis	$	527,050	$	8,748	$	—	$	(136,666	)	$	—		$	—	$	—		$	103	$	3,887	$	—	$	—		$	651,184	$	(126,775	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the six months ended June 30, 2013, for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
			Total				Total																						included in
			Realized and Unrealized				Realized and Unrealized																						Earnings
			Gains				Losses																						related to
					Included in					Included in																			Instruments
					Other					Other												Transfers							still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3		Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	4	$	—	$	—	$	—		$	(337	)	$	14,349	$	—		$	—	$	—	$	46	$	—		$	14,062	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	596,143		—		43,756		—			(27,548		)	13,162		(50,386		)	—		—		1,227		42			576,396		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	4,335		—		—		—			—			—		(5		)	—		—		—		—			4,330		—
Other government-related securities	20,011		—		1		—			(3		)	—		—			—		—		—		(9		)	20,000		—
Corporate bonds	167,892		116		1,011		—			(10,046		)	18,275		(45,184		)	—		—		62,330		501			194,895		—
Total fixed maturity securities - available-for-sale	788,385		116		44,768		—			(37,934		)	45,786		(95,575		)	—		—		63,603		534			809,683		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			1,582		—			—		—		—		—			1,582		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	70,535		4,797		—		(2,869		)	—			105,830		(12,776		)	—		—		2,210		1,124			168,851		3,779
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			3,500		—			—		—		—		—			3,500		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate bonds	115		1		—		(23		)	—			—		(17		)	—		—		5,013		3			5,092		6
Total fixed maturity securities - trading	70,650		4,798		—		(2,892		)	—			110,912		(12,793		)	—		—		7,223		1,127			179,025		3,785
Total fixed maturity securities	859,035		4,914		44,768		(2,892		)	(37,934		)	156,698		(108,368		)	—		—		70,826		1,661			988,708		3,785
Equity securities	69,418		—		—		—			—			—		—			—		—		—		—			69,418		—
Other long-term investments(1)	31,591		68,852		—		(371		)	—			—		—			—		—		—		—			100,072		68,481
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	960,044		73,766		44,768		(3,263		)	(37,934		)	156,698		(108,368		)	—		—		70,826		1,661			1,158,198		72,266
Total assets measured at fair value on a recurring basis	$	960,044	$	73,766	$	44,768	$	(3,263	)	$	(37,934	)	$	156,698	$	(108,368	)	$	—	$	—	$	70,826	$	1,661		$	1,158,198	$	72,266
Liabilities:
Annuity account balances(2)	$	129,468	$	—	$	—	$	(3,686	)	$	—		$	—	$	—		$	201	$	18,741	$	—	$	—		$	114,614	$	—
Other liabilities(1)	611,437		304,493		—		(28,637		)	—			—		—			—		—		—		—			335,581		275,856
Total liabilities measured at fair value on a recurring basis	$	740,905	$	304,493	$	—	$	(32,323	)	$	—		$	—	$	—		$	201	$	18,741	$	—	$	—		$	450,195	$	275,856

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the six months ended June 30, 2012, for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
			Total				Total																						included in
			Realized and Unrealized				Realized and Unrealized																						Earnings
			Gains				Losses																						related to
					Included in					Included in																			Instruments
					Other					Other												Transfers							still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3		Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	7	$	—	$	—	$	—		$	—		$	—	$	(3	)	$	—	$	—	$	—	$	—		$	4	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	614,813		294		4,519		—			(20,898		)	—		(13,850		)	—		—		—		(237		)	584,641		—
U.S. government-related securities	15,000		—		—		—			(1		)	—		(15,000		)	—		—		—		1			—		—
States, municipals, and political subdivisions	69		—		—		—			—			4,275		(4		)	—		—		—		—			4,340		—
Other government-related securities	—		—		18		—			(16		)	20,023		—			—		—		—		(5		)	20,020		—
Corporate bonds	119,601				1,849		—			(1,910		)	4		(2,095		)	—		—		54,612		120			172,181		—
Total fixed maturity securities - available-for-sale	749,490		294		6,386		—			(22,825		)	24,302		(30,952		)	—		—		54,612		(121		)	781,186		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	28,343		478		—		(757		)	—			41,047		(5,074		)	—		—		—		1,022			65,059		(278		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—		—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate bonds	—		—		—		—			—			1		—			—		—		113		—			114		—
Total fixed maturity securities - trading	28,343		478		—		(757		)	—			41,048		(5,074		)	—		—		113		1,022			65,173		(278		)
Total fixed maturity securities	777,833		772		6,386		(757		)	(22,825		)	65,350		(36,026		)	—		—		54,725		901			846,359		(278		)
Equity securities	80,586		—		660		—			(949		)	4		—			—		—		1		(6,650		)	73,652		—
Other long-term investments(1)	12,703		13,073		—		(7,361		)	—			—		—			—		—		—		—			18,415		5,712
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	871,122		13,845		7,046		(8,118		)	(23,774		)	65,354		(36,026		)	—		—		54,726		(5,749		)	938,426		5,434
Total assets measured at fair value on a recurring basis	$	871,122	$	13,845	$	7,046	$	(8,118	)	$	(23,774	)	$	65,354	$	(36,026	)	$	—	$	—	$	54,726	$	(5,749	)	$	938,426	$	5,434
Liabilities:
Annuity account balances(2)	$	136,462	$	—	$	—	$	(4,217	)	$	—		$	—	$	—		$	428	$	6,510	$	—	$	—		$	134,597	$	—
Other liabilities(1)	437,613		56,549		—		(135,523		)	—			—		—			—		—		—		—			516,587		(78,974		)
Total liabilities measured at fair value on a recurring basis	$	574,075	$	56,549	$	—	$	(139,740	)	$	—		$	—	$	—		$	428	$	6,510	$	—	$	—		$	651,184	$	(78,974	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of the carrying amounts and estimated fair value of the Company's financial instruments

		As of
		June 30, 2013				December 31, 2012
	Fair Value	Carrying				Carrying
	Level	Amounts		Fair Values		Amounts		Fair Values
		(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	4,773,709	$	5,310,405	$	4,950,201	$	5,725,382
Policy loans	3	855,780		855,780		865,391		865,391
Fixed maturities, held-to-maturity(1)	3	335,000		333,772		300,000		319,163
Liabilities:
Stable value product account balances	3	$	2,579,172	$	2,579,483	$	2,510,559	$	2,534,094
Annuity account balances	3	10,509,829		10,137,230		10,658,463		10,525,702
Debt:
Bank borrowings	3	$	360,000	$	360,000	$	50,000	$	50,000
Senior Notes	2	1,100,000		1,305,009		1,350,000		1,584,438
Subordinated debt securities	2	540,593		540,383		540,593		556,524
Non-recourse funding obligations(2)	3	604,900		499,956		586,000		481,056

Except as noted below, fair values were estimated using quoted market prices.

(1) Security purchased from unconsolidated subsidiary, Red Mountain LLC.

(2) Of this carrying amount, $335.0 million, fair value of $297.9 million, as of June 30, 2013, and $300 million, fair value of $297.6 million, as of December 31, 2012, relates to non-recourse funding obligations issued by Golden Gate V.