13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income (loss) (“AOCI”) as of June 30, 2014 and December 31, 2013.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Postretirement			Other
	Gains and Losses			Gain and Loss			Benefits Liability			Comprehensive
	on Investments(2)			Derivatives			Adjustment			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, December 31, 2013	$	539,003		$	(1,235	)	$	(43,702	)	$	494,066
Other comprehensive income (loss) before reclassifications	884,120			(17		)				884,103
Other comprehensive income (loss) relating to other- than-temporary impaired investments for which a portion has been recognized in earnings	3,450			—			—			3,450
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(15,936		)	835			2,347			(12,754		)
Net current-period other comprehensive income	871,634			818			2,347			874,799
Ending Balance, June 30, 2014	$	1,410,637		$	(417	)	$	(41,355	)	$	1,368,865

(1) See Reclassification table below for details.

(2) These balances were offset by the impact of DAC and VOBA by $198.1 million and $413.4 million as of December 31, 2013 and

June 30, 2014, respectively.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

										Total
										Accumulated
	Unrealized			Accumulated			Postretirement			Other
	Gains and Losses			Gain and Loss			Benefits Liability			Comprehensive
	on Investments(2)			Derivatives			Adjustment			Income (Loss)
	(Dollars In Thousands, Net of Tax)
Beginning Balance, December 31, 2012	$	1,813,516		$	(3,496	)	$	(73,298	)	$	1,736,722
Other comprehensive income (loss) before reclassifications	(1,250,498		)	734			29,596			(1,220,168		)
Other comprehensive income (loss) relating to other- than-temporary impaired investments for which a portion has been recognized in earnings	4,591			—			—			4,591
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(28,606		)	1,527			—			(27,079		)
Net current-period other comprehensive income (loss)	(1,274,513		)	2,261			29,596			(1,242,656		)
Ending Balance, December 31, 2013	$	539,003		$	(1,235	)	$	(43,702	)	$	494,066

(1) See Reclassification table below for details.

(2) These balances were offset by the impact of DAC and VOBA by $204.9 million and $198.1 million as of December 31, 2012 and

December 31, 2013, respectively.

The following tables summarize the reclassifications amounts out of AOCI for the three months ended June 30, 2014 and 2013.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
	Other Comprehensive			Affected Line Item in the
	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
For The Three Months Ended June 30, 2014
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(614	)	Benefits and settlement expenses, net of reinsurance ceded
	(614		)	Total before tax
	215			Tax (expense) or benefit
	$	(399	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/losses	$	20,198		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(1,460		)	Net impairment losses recognized in earnings
	18,738			Total before tax
	(6,558		)	Tax (expense) or benefit
	$	12,180		Net of tax

Postretirement benefits liability adjustment
Amortization of net actuarial gain/(loss)	$	(1,900	)	Other operating expenses
Amortization of prior service credit/(cost)		95		Other operating expenses
		(1,805	)	Total before tax
		632		Tax (expense) or benefit
	$	(1,173	)	Net of tax

(1) See Note 17, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
	Other Comprehensive			Affected Line Item in the
	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
For The Three Months Ended June 30, 2013
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(580	)	Benefits and settlement expenses, net of reinsurance ceded
	(580		)	Total before tax
	203			Tax (expense) or benefit
	$	(377	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/losses	$	21,518		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(4,000		)	Net impairment losses recognized in earnings
	17,518			Total before tax
	(6,131		)	Tax (expense) or benefit
	$	11,387		Net of tax

(1) See Note 17, Derivative Financial Instruments for additional information.

The following tables summarize the reclassifications amounts out of AOCI for the six months ended June 30, 2014 and 2013.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
	Other Comprehensive			Affected Line Item in the
	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
For The Six Months Ended June 30, 2014
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(1,284	)	Benefits and settlement expenses, net of reinsurance ceded
	(1,284		)	Total before tax
	449			Tax (expense) or benefit
	$	(835	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/losses	$	27,568		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(3,051		)	Net impairment losses recognized in earnings
	24,517			Total before tax
	(8,581		)	Tax (expense) or benefit
	$	15,936		Net of tax

Postretirement benefits liability adjustment
Amortization of net actuarial gain/(loss)	$	(3,800	)	Other operating expenses
Amortization of prior service credit/(cost)	190			Other operating expenses
	(3,610		)	Total before tax
	1,263			Tax (expense) or benefit
	$	(2,347	)	Net of tax

(1) See Note 17, Derivative Financial Instruments for additional information.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

	Amount
	Reclassified
	from Accumulated
	Other Comprehensive			Affected Line Item in the
	Income (Loss)			Consolidated Condensed Statements of Income
	(Dollars In Thousands)
For The Six Months Ended June 30, 2013
Gains and losses on derivative instruments
Net settlement (expense)/benefit(1)	$	(1,077	)	Benefits and settlement expenses, net of reinsurance ceded
	(1,077		)	Total before tax
	377			Tax (expense) or benefit
	$	(700	)	Net of tax

Unrealized gains and losses on available-for-sale securities
Net investment gains/losses	$	33,828		Realized investment gains (losses): All other investments
Impairments recognized in earnings	(8,584		)	Net impairment losses recognized in earnings
	25,244			Total before tax
	(8,835		)	Tax (expense) or benefit
	$	16,409		Net of tax

(1) See Note 17, Derivative Financial Instruments for additional information.